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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Thursday, January 10, 2013

20 Facts About The Collapse Of Europe That Everyone Should Know

This is what socialism does to people....
All over Europe, people that have lost all hope are actually setting themselves on fire in a desperate attempt to draw attention. Millions of formerly middle class Europeans have lost everything and are becoming increasingly desperate. Suicide and crime are skyrocketing all over southern Europe and massive street riots are erupting on a regular basis.

Unfortunately, this is just the beginning. Things are going to get even worse for Europe.

Meanwhile, those of us living in the United States smugly look down our noses at Europe because we are still living in a false bubble of debt-fueled prosperity.

But eventually we will feel the sting of austerity as well. The recent fiscal cliff deal was an indication of that. Taxes are going up and government spending is at least going to slow down. It won’t be too long before the effects of that are felt in the economy.

And of course the reality of the situation is that the U.S. economy really did not perform very well at all during 2012 when you take a look at the numbers. The cold, hard truth is that the U.S. economy has been declining for a very long time, and there are a whole bunch of reasons to expect that our decline will accelerate even further in 2013.
We had good reason to look down at Europe since they were looking down on us when our government created housing crisis imploded the banking system. Never going to happen in centrally planned Europe they were saying.

However, despite extraordinary central planning and collectivist actions by both monetary and fiscal authorities in developed countries around the world, they valiantly tried to keep the ship afloat by borrowing and spending, it is going to prove to be a fools errand. One has to realize that these problems, like the financial crisis of 2008 happen for a reason and the underlying problems were never really addressed or solved. The problem was that there was a gross miss-allocation of resources fostered by bad central government policy and this ushered unproductive investment into housing. So the policy response was to force money into other unproductive investments, so we have just had a shift from 1 unproductive investment to another.

Government induced spending after the financial crisis was arguably almost completely wasted since we have seen very little in the way of a rebound and will probably produce very little in the way of returns. Expenditure of money by governments, particularly in tough times, from a Keynesian perspective, is supposed to go into investments in such things as bridges and highways. These investments are supposed to provide some kind of return on the investment. However, when government essentially just does the proverbial hiring of 1 person to dig a hole that is going to be filled back up by another with the intent on employing these 2 individuals, it does not provide any future benefit. Some argue that it does, that the money that these folks receive is then recycled back into the economy. This is UNTRUE since the money to do this has to be diverted from somewhere else. Whether it be through higher taxes, where these funds would have been spent or invested by the individuals that earned it or through borrowing where the lender would have invested the money in some other gainful enterprise, I can assure myself that the government hole creation and refilling operation creates less and probably much less long-term economic value than the spending and/or investment from those that it was taken away from.

At the end, the government central planning leviathan will continue to eat up productive resources that will be diverted to idiotic government spending programs that ultimately make us poorer. In the past, this was small enough that private enterprise could continue to produce but unfortunately this is taking a larger and larger slice of the productive pie. As we have seen in Europe and like we will see in Japan, bad government policy will lead to poverty, social problems and death.

We have both the right and responsibility to to counter this and with violence if necessary against the government. This was the original intention of the Second Amendment allowing citizens to arm itself. It was intended for citizens to stand up against tyrannical governments. WE will see that Europe and we are seeing that in the United States too.

20 Facts About The Collapse Of Europe That Everyone Should Know


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