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Town hall
meetings, documentary films galore, news coverage, solemn speeches. America certainly seems to be aware of its problem. But for all the self-examination and
soul searching, there has yet be any sober identification of the fundamental
flaws that have evolved in the American character since the declaration of
independence.
Foremost among them
is a foolish and all-pervasive American pride that precludes the first step
in the recovery of any junkie whose behavior has become a threat to
themselves and those around them, which is an unqualified admission and
acknowledgement of destructive behavior. Calling it addiction is disingenuous
and coats it in the absolution of disease. The inherent implication is that
this claim negates responsibility.
Here’s what
American leadership needs to say:
“Our values
have been corrupted so thoroughly by the deification of the dollar above all
else, that we lack the objectivity and sincerity required to formulate
responsible fiscal policy. We need help.”
But my God! Can
anyone imagine the United States collectively biting off and swallowing such
a gigantic piece of Humble Pie? The American ego is simply too swollen.
Actually, bloated would be the appropriate term.
Obama acknowledges
his absence of economic comprehension with the appointment of the same foxes
who busted up the chicken house in the first place. Their solution? Print
more money! We can solve all the problems by printing more money!.
The pathetic thing
about the manner in which the American government feigns genuine concern over
its impending financial implosion is that all these stuffed suits strutting
around like so many arrogant roosters will all be dead by the time the Social
Security obligations of the next 50 years kick in. The U.S. deficit, depending on who you listen to, will soar to as much as 220% of GDP by 2050.
The only solution,
to any outsider who won’t necessarily feel the pain of the required
measures, is a negotiated reorganization of outstanding national debt,
massive tax increases, huge spending cuts (yes that will undermine the
integrity of Medicare – so look after your folks at your own damn
home!), and a revaluation of the U.S. Dollar combined with the abolition of
“floating rate” monetary policy. The dollar must be tied to
something of tangible value to re-establish the reality of what paper money
is – the promise to pay.
The second secret to
weaning the junkie off his chosen poison is the administration of reduced
amounts of poison over time. Credit must be controlled. From the government
on down to credit cards, it is only regulation that can prevent the massive
submersion of the American public in debt. America has evolved from a nation
of conscientious savers to one of rapacious self-absorbed consumers. Buy now,
pay later, is the most destructive marketing strategy ever devised by
American retailers and creditors. Legislating tough measures to curb
predatory marketing tactics on the part of lenders must be established now.
I have infinite
hope, as do most Americans, for the administration of Barrack Obama. Ending
the war in Iraq, shutting down Guantanamo, and suspending all of the outgoing
Bush’s “last orders” is all very promising and
heartwarming.
But this still
remains the low hanging fruit.
In the months to
come, it will quickly become apparent what this new president is made of. The
Chinese grow more influential over American foreign and fiscal policy because
we cannot afford to annoy the largest servicer of American debt.
That’s why we
tolerate the human rights abuses in China. That’s why we have nothing
to say about the invasion and occupation of Tibet.
And that, right
there is the most dreadful outcome of American voluntary financially
enslavement to China. The values and principles it has espoused since the
American revolution become ever so hollow and faint as the country loses not
only its conviction as to the sanctity and righteousness of democratic
freedom, but also its ability to defend them abroad, and ultimately, to
practice them at home.
James West
www.midasletter.com
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