Fiscal Death by Welfare

Ironically enough, the medicine applied by our state as the antidote for our ills has proven to be poison.  The welfare state is killing our nation.  Today entitlement spending makes up nearly half of our budget.  Long term, we know that there will be no way to pay off our unfunded obligations — we will go bankrupt.  There will be three options ultimately, though ultimately can come quite suddenly: default, hyperinflation or abolition of the welfare state.

Default is considered by many to be an impossible option as it would likely lead to mass chaos given the necessary suspension of many government services, not to mention the practical reality that WE are the collateral in the event of default.  To default is to be honest, and to be honest is anathema to the state.

Hyperinflation in my view is the most likely outcome given the massive increase in the money supply, which is good for politicians until it hits because it allows them to kick problems down the road and impose a stealth tax.  Currently, government is toeing the line between monetizing debt and intervening to keep its borrowing rates down, while incentivizing banks to keep money in their vaults or pump it into the stock market.

I believe that as the downturn goes on the government will blame the banks for the lack of economic growth and force them to allocate credit to chosen political entrepreneurs and other bad credit risks, leading to massive inflation in prices which they will likely blame on evil speculators and greedy price gouging companies.  Hyperinflation would allow the government to pay for the welfare state –  by writing entitlement checks in worthless dollars and lead to economic paralysis as constantly rising prices would make economic calculation and thus commerce impossible.

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Tags: CPAC, default, entitlement spending, entitlements, George Will
Posted Feb 28th 2010 at 5:01 pm in Congress, Culture, History, Politics, Tax Reform, Tea Party, federal spending | 79742129 Commentshttp://biggovernment.com/amellon/2010/02/28/fiscal-death-by-welfare/Fiscal+Death+by+Welfare2010-03-01+01%3A01%3A46Andrew+Mellon

Limbaugh: White House Using Fed Arts Agency to Push Obama Agenda

From El Rushbo:

Do you remember that NEA phone call? I think it was back in August, the 21st or the 25th, and it featured basically a coordination from the White House to the National Endowment for the Arts to promote Obama’s health care and parts of his domestic agenda. One of the artists on that call got hold of Breitbart and said they’re turning the National Endowment for the Arts and www.Serve.gov, the latest website out of the White House, into political instruments, and there are four pieces written on this at BigGovernment.com. But all it really exposes up ’til now is that the NEA was lying about their coordination with the Obama White House on spreading propaganda. This is the thing that George Will had a comment on This Week, said some laws were broken in this call. Then after some attention was focused on this they announced that the National Endowment for the Arts director of communications Yosi Sargent had been reassigned. They said he was fired but he was actually just reassigned. (more…)

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Tags: Andrew Breitbart, Big Government, Buffy Wicks, George Will, National Endowment for the Arts
Posted Sep 21st 2009 at 3:51 pm in ACORN, Big Labor, Congress, Culture, Obama | 6390103 Commentshttp://biggovernment.com/publius/2009/09/21/limbaugh-white-house-using-fed-arts-agency-to-push-obama-agenda/Limbaugh%3A+White+House+Using+Fed+Arts+Agency+to+Push+Obama+Agenda2009-09-21+22%3A51%3A13Publius

Pregame Report: The NEA Conference Call

On August 25th 2009, Big Hollywood’s Patrick Courrielche broke the story of a conference call he attended with other “rising artist and art community luminaries”:

On Thursday August 6th, I was invited by the National Endowment for the Arts to attend a conference call scheduled for Monday August 10th hosted by the NEA, the White House Office of Public Engagement, and United We Serve. The call would include “a group of artists, producers, promoters, organizers, influencers, marketers, taste-makers, leaders or just plain cool people to join together and work together to promote a more civically engaged America and celebrate how the arts can be used for a positive change!”

The email invite came directly from Yosi Sergant, then-Director of Communications at the National Endowment for the Arts (NEA), and it advised this hand-picked group that the call was about laying “a new foundation for growth, focusing on core areas of the recovery agenda – health care, energy and environment, safety and security, education, community renewal.”

Courrielche describes the call this way: (more…)

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Tags: Big Government, Buffy Wicks, Dana Loesch, George Will, health care reform
Posted Sep 20th 2009 at 7:25 pm in Culture, News, Obama, Politics | 5882No Commentshttp://biggovernment.com/mflynnjnolte/2009/09/20/pregame-report-the-nea-conference-call/Pregame+Report%3A+The+NEA+Conference+Call2009-09-21+02%3A25%3A54Mike+Flynn+and+John+Nolte

‘Big Government’ Rises Again

n7h6ycxmg5In 1995, President Bill Clinton stood before the nation and proclaimed, “The era of big government is over.” The following year, the federal budget deficit stood at 1.4% of GDP. Thirteen years later, in 2008, the deficit had doubled, to just over 3% of GDP. This year, the Congressional Budget Office estimates that the federal budget deficit will equal 11.4% of GDP.

As George Will would say, “Well.”

This is the real source of our “summer of discontent.” Yes, millions of Americans spent the month of August holding Tea Parties, attending town halls, organizing, marching and protesting against ObamaCare, i.e. Congressional and Administration proposals to reconstruct the entire health care sector. But to suggest that health care alone is at the root of this backlash is to miss the forest for the trees. To paraphrase Democrat strategist James Carville, “It’s the big government, stupid.”

Since last September when the financial markets stumbled, we’ve seen a Wall Street bailout, government takeovers of AIG, Citigroup, Fannie Mae, Freddie Mac, GM, Chrysler, and numerous banks. The Federal Reserve has opened its discount window to almost all-comers and has taken the unprecedented step of aggressively buying up the federal government’s own debt. Congress rushed through a “stimulus to nowhere,” moved closer to a “cap-and-trade” remake of the energy sector and openly talked about higher taxes and more regulation. (more…)

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Tags: AIG, American Revolution, banks, Bill Clinton, Boston Tea Party
Posted Sep 9th 2009 at 5:26 pm in Congress, Culture, Economics, Featured Story, History, Justice/Legal, Media Criticism, News, Obama, Politics | 98274 Commentshttp://biggovernment.com/mikeflynn/2009/09/09/big-government-rises-again/%27Big+Government%27+Rises+Again2009-09-10+00%3A26%3A17Mike+Flynn