I’m not going to apologize for consistently hammering you with projections of doom over the last three years of IDE editorials. The entire US financial and monetary system has been traveling by hand basket for longer than most care to remember.
But believe it or not … even I get weary of all the dismal projections. Surely there must be a bright side to all the ongoing and historic carnage all of us are struggling to live through?
Yes, there is! A mega-measure of undiluted cheer is now heading your way. Yep, we’re smack in the middle of a depression, though most everyone remains in denial. Yes, government tax receipts are absolutely plummeting. Sure, most states in the US are hopelessly insolvent and, unlike the feds, constrained from reckless monetary printing. Additionally, these same feds are shooting the moon on a series of lame and loony long shots. So what?
Have you considered the blessed news that we’re in the initial stages of witnessing a feast of toasted bureaucrats? It’s true … federal, state and local parasites are fading like Buicks, boob jobs, lavish cruises and limo rides. It’s the ultimate weenie roast. What a shame.
What’s it mean to you? Bureaucrats produce nothing. Public servants are a drain on GDP even though government spending from taxes is now included as part of our national production. What a sham.
Reagan had it right… government isn’t the solution – it’s the problem. Trusting these blokes to solve unemployment, the banking crisis, global warming, auto manufacturing and health care is unmitigated insanity.
There has to be a bright side to the US economy contracting 6% year on year over the last quarter. Europe hit negative 9% and Japan followed with negative 15%. Unfortunately, the fine Japanese art of Hari kari has fallen out of fashion.
Surely, budgetary constraints will result in fewer bureaucrats. Fewer elected and unelected thugs equates to more freedom! Party on.
Maybe next time you fly you won’t have three buff and brash uniforms from the Travel Suppression Agency (TSA) bark orders to you as you attempt to take off your shoes, remove your belt, hold up your pants, put your fragile laptop on the belt, juggle your carry on luggage and still have an extra hand to show your various “papers”.
Possibly, your local tax assessors will no longer smugly advise you that your property tax is “What I say it is” as they arbitrarily double the square footage of your home as Atlanta’s finest did to us. We voted with our feet.
Maybe our elected representatives will fess up to obligating each American family to $546,668 of debt. This is on top of all the credit card, home and accessory debts we’ve managed through our own unique talents. Does the word default come to mind?
How about the Postal Service expressing appreciation for your business? Sorry, got a little carried away there. Isn’t it nothing short of pathetic that you have to send in your various on time IRS payments through the federal post office via return receipt requested so as not to risk penalties for late payment. It would be worth it to shut down the entire economy to rid the Republic of this IRS plague.
California is spearheading state bankruptcies and you know these things happen in the former Golden State before spreading nationwide. A crashing market and economy is the ultimate “Terminator”. Even a depression has its upside advantages as bureaucracy gets downsized.
Don’t get me wrong … there are lots of wonderful public servants. There are also many fine bankers, lawyers, tax collectors and even dentists. I’m also told a handful of cannibals have pleasant personalities and are very sincere about their culinary tastes.
It would, however, be rather naïve to think the nicest and most efficient bureaucrats will be the ones retained. Those with the biggest bark, and bite, unfortunately, have the best job security. There I go again …
Short of taxing moronic behavior there won’t be sufficient funding to support the massive socialistic projects built up in our Republic over the last 100 years. Ain’t depression great?
Resist Resourcefully,
Rusty
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I suggest Rusty stick to denistry. This effort reads more like someting on an op-ed page than what should be posted on an investors website. I’d rather the IDE website and emails stick to investment articles.
I not only find Russell McDougal’s articles very entertaining but BANG ON THE MONEY as well !
My Late Mother (God Bless Her Soul) predicted this type of economic collapse many, many years ago (when I was a teen, I’m almost 52 now).
If there ever was a competition to see who was in the greatest state of “Denial”, the Line-Up’s would make it look like an audition was being held for “American Idol”.
Clearly, it doesn’t take a rocket scientist to figure out that the system, as we know it, has gone BANKRUPT but the elite (in power) are using every tool in their arsenal to tell us otherwise !
Eventually, as a result, we’re all going to have to pay the piper (& believe me, it doesn’t look pretty).
KEEP UP THE GOOD WORK RUSTY !
Regards,
Richard
Rusty,
Let’s not forget that 90% of the current deficit occurred under the Republican watch of Reagan, Bush I and Bush II. Those boys may have cut taxes to their richest friends, but they forgot to cut spending.
Also, let’s not forget that it was the Republican majority which brought the legislation for the removal of Glass-Steagall which is the basis for this financial disaster.
Let’s also not forget that it was a Democrat (FDR) which brought Glass Steagall in the first place. That brought financial stability for some 60 years.
Also let’s not forget that it was FDR that brought Social Security, CCC’s and the WPA which kept a communist revolution from occurring as millions of Americans were starving thanks to the financial misdealings of the previous Republican administrations. Had that revolution occurred, millions of those Republican fat cats would have been the first to face the firing squads.
It really is simple Rusty, we are going through the standard 70 year Kondratiev cycle. The people gave the Republicans complete control and now we are suffering, just as we did in 1929. You better get used to Socialism and Democratic rule because it will be roughtly 50 years before a Republican majority is elected again, just as happened from 1932 forward.
Now, let’s get this column back to finding profitable investments even if they are inverse, thanks to the coming depression.
Mike Scott
Mike Scott
We have been a Socialist nation for two hundred years, spearheaded by the bible thumpers. The average American has never been formally trained in the virtues of capitalism. And one does not need training in socialism. It’s a gut reaction.
The average human (Americans included) bent of mind looks for sources of sustenance outside of himself. And socialism tells him that God or The Government will provide. That’s why average people with a parasite complex hold elections to vote for the thug who promises to provide the most. And on whose backs? On the backs of those who do not wait for God or government.
So we are all socialists. And democratic too when we instinctively realize that democracy is another name for Mob Rule. If I have a bigger gang than you, then I win because the “majority” is with me! True Republicanism on the other hand protects the rights of the individual (the smallest minority).
Re: “Reagan had it right…”
The national debt increased 186% 1988 over 1980 on Reagan’s watch. That’s very close to a *triple*. I like triples in my trading, but I don’t like them in the national debt.
The national debt increased 76% 2008 over 2000 on Dubya’s watch.
The sooner America stops worshiping Reagan as a saint, the better off we’ll be.
I’ll take a tax-and-spend Democrat over a spend-and-spend Republican any day.
Unfortunately, to get out of this hole, we’re going to have to cut spending first, and may not be able to cut taxes for a few decades.
It took the better part of 30 years to dig this hole, and we’ll be lucky if we’re out in 50 years.
I’d love to see a truly fiscally conservative Republican party, but it’s never going to happen if we keep worshiping Reagan.
Hi Rusty:
Thanks for a great article. You have expressed my own frustrations quite eloquently. There are two things that stand out in your post:
1. Your righful use of the word “Republic”. Even the Republicans don’t know we are a Republic.
2. Your statement “It would be worth it to shut down the entire economy to rid the Republic of this IRS plague”. It’s coming. It’s been long overdue and trust me, it’s coming. The IRS is the Capo to the thugs in the Federal government and the Federal Reserve. The IRS has carte blanche permission to collect fantasmagorically enormous amounts of money which the thugs use to set up their grandiose schemes, wars, defense spending and everything else. It’s time to chop off the head of this Hydra monster.
Great point. Government will eventually shrink wheather it wants to or not. Government has become this self-perpetuating monster that is trying to invade every aspect of our lives including investing. Just check out some of the new proposals coming out of the White House today to get an idea of what I’m referring to. Oh yes, and regarding an earlier response by a reader who wants Dr. McDougal to stick to Dentistry and have only investment articles come out of the IDE; take a second look at what big government will mean for the individual investor if some of the new proposals out of the White House take effect.
You’re way off base here I believe… Beurocrats did not cause this depression.. Overly greedy hedge funds, mortgage makers, RE speculators are surely in the “cause crowd” along with CEO’s who made dumb decisions year after year… Now you want to blame the government workers?? You are too smart to make such a humongous mistake, regardless of your strong ideology.
Right On, Rusty!
Your detractors refuse to see that Government mismanagement (both sides) is economic insanity.
Dems (Demagogues)have chomped at the bit for eight years to loot the treasury and now that it is their turn, they are determined to show the neo-conservatives (neo meaning NOT)how real vultures perform. They are making hogs at the trough appear civilized.
Stick to your guns, forget gums.
Nhanny,nhanny, start the blame game and drown in vitriol. And where will that get us?
Here are some more great blessings of the depression. With fewer jobs, there should be fewer cars on the road, fewer gigantic trucks and fewer ships plying the ocean, all spewing pollution. That should make greenies happier. There will be a great increase in garage sales and much more action at the consignment stores, as people finally wake up and realize they do NOT
NEED all that stuff. Pharmaceuticals will go up as 75% of the citizens call in depressed. My plan for government is to cut it in half, both the Senate and the House, and the same for each state. Fire at least half of all government workers and then really see unemployment rise.
Do you think the Republicans will put those planks in their platform? Or should we depend on the Libertarians? In either case, the Socialists and the Commies are salivating over the 2010 elections. Stay tuned.
If you live in the Seattle area and would like to appeal your property tax assesment you can visit http://www.valueappeal.com and be done in about 15 min.