“Centralization induces apoplexy at the center and anemia at the extremities.” ~ Lamenais
The present political system is clearly insane. It suffers from schizophrenia. Around the world, almost no one trusts the politicians, yet almost everyone votes for incumbent politicians who promise to reform the government.
Voters now suspect (correctly) that all Western governments are headed for bankruptcy because of the pension programs and government-funded medicine, yet these two programs are politically untouchable. Voters demand them.
For four decades, soft-core critics of the pension/Medicare systems have come to voters with this announcement: “The two systems can be reformed, but we must act now. If we delay, they will bankrupt the government.” Yet the systems are never reformed.
Then, a decade later, the next group of optimistic reformers comes forward with this same promise: “The systems can be reformed if we just act now.” Nobody believes them. Nobody should. If the programs really can be reformed “if we act now,” then the previous warnings were mere scaremongering. There really was no hurry. So, Congress asks rhetorically: “Why should we believe that we need to hurry now?” Result: the systems never get reformed. Congress kicks the can.
THE GREAT DEFAULT
The federal government really is headed for default. The numbers don’t lie. This fact produces pessimism in some circles. People who look at the numbers conclude, accurately, that the federal government will not muddle through this crisis. All over the world, national governments will not muddle through. They will no longer be able to kick the can.
I have good news and bad news. The bad news first. If you are dependent on the government for your old age security, you have only one hope: an early death. The good news: when Washington’s checks bounce, the bureaucrats will have to go into another line of work. Millions of them. All over the world.
I am now going to present a scenario that is not widely shared. The process that undergirds it is not widely recognized. Yet this process is relentless.
If I am correct about it, judgment day is coming. Not the final judgment. A liberating judgment.
There are self-proclaimed optimists who say Medicare will muddle through. Similarly, there are self-proclaimed optimists who say the present Keynesian system will muddle through. These people are in fact pessimists. They argue that moral evil and economic irrationality can be made to work. That is a pessimistic message. Fortunately, they are wrong.
People will muddle through. The Keynesian system won’t. Neither will the finances of the people who have bet the farm on the Keynesian system’s ability to muddle through.
THE LAW OF EMPIRES
Empires disintegrate. This is a social law. There are no exceptions.
The first well-known social theorist to articulate this law was……………..
- Be of Good Cheer: the Keynesian Welfare State Is Doomed (lewrockwell.com)
- Empires Disintegrate (txwclp.org)
- The Looming Reversal of Centralization by Gary North (pointsofhype.wordpress.com)
- Why Conservatives Have Lost the Political Battle for America’s Soul by Gary North (gunnyg.wordpress.com)
- Gold in Your IRA. Not! by Gary North (postamericana.wordpress.com)
- Statist Leadership Is in Decline (txwclp.org)
- The Looming End of the Globalist Nightmare (wariscrime.com)
- Be of Good Cheer: the Keynesian Welfare State Is Doomed (txwclp.org)
- Gary North gives the false impression that interest-free United States Notes are no longer valid (fauxcapitalist.com)
- Why Civilized People Buy Gold by Gary North (pointsofhype.wordpress.com)