Monday, November 12, 2012
Political: I see the political situation in the United States as being like a pendulum. The public swings back and forth. After the excess of President Carter, the swing back to Ronald Reagan was dramatic and decisive. It produced results that were obvious to all. Today, the swing did not happen. The pendulum swung even further left as conservatives lost seats in both house and Senate. The defeat was systematic and ideological. This in and of itself is not a decisive event, but coupled with the two other broken systems and we are headed for some type of massive correction. Economic: Spending is out of control. This applies to Europe as well as the United States. The argument as to how to pay for it does not matter. The problem is like a family who is spending more than they make and are borrowing the amount over what they take in. Sooner or later the debt cannot be serviced. Europe is reaching this point only a little sooner than we are. Just look at the constant currency ‘crisis’ that keep popping up. This January 1st, it is the ‘fiscal cliff’. Right about the same time, the Congress will need to raise the debt limit. This stuff used to come up only every 5 or 10 years or so. Now that we are so much in debt, we are seeing the balancing act becoming necessary every few months or so. The problem is not taxes, although raising taxes takes capital away from the free market and limits its ability to sustain itself and/or grow. The problem is excessive spending and the election of 2012 has demonstrated that the population of the United States is not interested in addressing the root causes. The war: Find it convenient that the general who was to testify about Benghazi resigned just a few days prior to his taking the stand? I do, but this is only a symptom of the problem. We are losing the war and our government is attempting to hide this fact from us. The raising of the enemy flag over our embassies in Egypt and Libya is not just symbolic. It is a statement of progress. Two governments that we helped to topple have turned even more strongly against us. Islamic law (The legal system of the enemy that is at war against us) is favored in both countries and looks like will become more enforced in the very same lands. The majorities of the populations of the countries in the Middle East favor what happened in Benghazi. Even if this statement is incorrect in that it is only a minority, we are still looking at substantial numbers of enemy supporters. This enemy is capable of producing suicide attackers for only the 2nd time of all of recorded history. And this population outnumbers that of the 1st time (Japan) by many multiples. In other words, the war is much larger than what is going on and we are losing. It can only be a matter of time before it goes nuclear. And that time is approaching more quickly now as our enemy is gaining strength. Conclusion: It cannot be all that much longer before something breaks. Economics can start wars quickly. All we need is the match. It may still be a few years off, but it is close. Much closer now than ever before.