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Illusions and Delusions (Gary C., February 2010)
Past Illusions that we now
realize were lies and distortions:
(Paraphrasing what our “leaders” have stated in the past)
The dollar is as good as gold.
The gold standard (and gold) is a barbarous relic.
The war that will make the world safe for democracy.
Lee Harvey Oswald was the lone gunman.
We can see the light at the end of the tunnel (Vietnam War).
Saddam Hussein has weapons of mass destruction.
The sub-prime problem will be contained and our financial
system is
sound.
We must bail out banks with $700 Billion in TARP money and
Trillions
of other Federal Reserve guarantees and loans in order to save the
economy.
Gold will probably drop back to $100 per ounce.
Congress represents the people of the United States.
The Federal Reserve has done a good job at regulating the
money
supply, maintaining low unemployment, and keeping the value of the
dollar steady.
Social Security will take care of us in our old age.
The Dow will go to 26,000 soon.
We believe in a balanced budget, reducing the deficit, and
in
avoiding foreign wars.
There is a nearly unlimited amount of crude oil available
for future
use, in part due to superior technology.
Deficits don’t matter.
They are jealous of our freedoms.
Change we can believe in.
The War in Iraq is not about oil but about bringing
democracy to Iraq.
Current Illusions that are
weakening and will probably be destroyed by
2016.
What is good for Wall Street is good for Main Street.
(only if
you are a banker…)
Change we can believe in. The Audacity of Hope.
Yes we
can. (It sounds good for a few days.)
Government of the people, by the people, for the
people. (It
could be stated more accurately as government for the benefit of big
corporate interests, by payoffs to lobbyists and politicians, for
larger corporate profits, less competition and more control.)
Government agencies exist to protect the interests of the
people. (The SEC, FDA and other agencies often protect large
corporate interests far better than individual interests.)
Everyone has a right to health care. (Really? At
what
cost?)
Government is the solution to most of our problems.
(Ronald
Reagan thought government was the cause, not the solution.)
Social Security, Medicare, and Medicaid will somehow be able
to pay
future benefits, even though they are insolvent. (While they may
indeed pay benefits, what will those benefits be worth in purchasing
power?)
We can always borrow more money from China and Japan.
(not
lately…)
The Federal Reserve is good for America. (Yes, if you
are a
banker or a politician.)
The Federal Reserve and the government will prevent a
depression. (Yes, just like in the 1930’s.)
Hyperinflation can’t happen here. (So they say….)
OPEC will continue selling oil for less valuable dollars,
but the
price of oil will stay about the same. (Really? Demand is
increasing, supply is decreasing, and the dollar is depreciating, but
we expect prices to remain about the same. How optimistic!)
We can safely run $1 Trillion to $2 Trillion annual deficits
for
several more decades. (Safe for whom!)
We can grow our way out of financial trouble.
(Mathematically
impossible!)
Inflation will stay low for the foreseeable future.
(Just like
it did in the 1970’s…)
Printing money (Quantative Easing or monetizing the debt)
can be used
to close the fiscal gap between government revenues and expenses for
many years. (Yes, but at what cost to the people and the economy?)
Unbacked fiat currencies always fail, due to overspending
and
excessive debt creation (both of which the United States does) but the
dollar won’t fail. (Really? Why?)
The finance model of the US government is, in many respects,
a large
Ponzi scheme, which is dependent upon ever increasing borrowing.
Those debts can never be repaid. This method of finance is
mathematically doomed to an eventual collapse. (It has happened
before in other countries, but we want to believe in the delusion that
it can’t happen here. There will be blood. There will be
tears.)
Our pensions, our social security payments, our retirement
income,
IRA’s, 401(k)’s, and our jobs will be safe and protected. (The
government has assured us of such!)
Even though our politicians, our government and the
financial cartel
have consistently lied to us while creating the current economic and
social disaster, we still trust them to manage our problems and to fix
the economy. (I don’t, do you?)
Saudi terrorists and al-Qaida caused 9-11. (Two
buildings were
hit by jets, but how many buildings came down? Controlled
demolition? Implosion? Thermite? Many scientists and
engineers do not believe the official version promoted by the
government. What is the real story?)
Fannie Mae, Freddie Mac, Social Security, Medicare, and
Medicaid are
all insolvent. The War on Poverty, War on Drugs, War on Terror,
and Wars in Iraq and Afghanistan are obvious and abysmal failures, but
in spite of insolvency and failures in these and many other programs,
we trust that new federal programs will be managed better and more
responsibly. (Of course we do……)
Unemployment will decrease when we have more government
funded jobs
programs. (And what will each job cost the taxpayers?
$500,000 or more? And what will those jobs produce?)
United States financial assets and the US Dollar are a “safe
haven”
for investments. (Russia, China, and India are buying more gold,
other currencies, and fewer Treasury bonds. They see the reality
and don’t believe the illusion.)
The US Government has a plan. (Humor is necessary in a
crisis.)
For more on a wide array of other topics, please visit
the oftwominds.com weblog.
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