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PIM of SPAIN | August 26, 2009 at 09:24 am
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Nowadays the basic business model of government is to keep order, protect campaign contributors and lure supporters with the promise of other peoples' money. The game plan of the typical citizen is even simpler: to be on the receiving end, and not at the paying end. Over time, more and more of them get into the receiving position. And the whole society becomes more costly, and more corrupt.
In its naked form, government is not evil; it is merely a self- interested parasite, like a bank or automobile lobbyist. Its main value comes from its ability to elbow out other parasites. Of course, the typical citizen is no saint either. Instead, he is merely a parasite in the larval stage. If he is lucky enough or cunning enough, he could grow into a parasite himself. The citizen, generally, doesn't mind being lied to and robbed - just so long it is by someone he elected, or at least by someone whom local involvement put in place.
In the United States, entire industries now operate as wards of the state. They may have too little capital. Or, their operations may be too costly. Or, their products may be simply out-of-date and unattractive. Still, government keeps them going - even at the cost of at the expense of competitors. And the money doesn't only go to business. Cities stay solvent only by the grace of federal government grants. Whole sections of the population depend on government - including 34 million who draw their rations directly from the federal food stamp program. The spectacle is breathtaking and alarming at the same time - like an old auto bus on a mountain road, with freighted passengers clinging to the hinges. The old rusted coach could tip over at any time, but which politician would tell a voter to get off in time?
The role of government is neither one of prosperity nor plausibility, more the role of protection of the pests and parasites. They will keep paying them off and carrying them along, until the bus runs off the road.
Government is a profoundly conservative, parasite- protecting enterprise. It cannot draw forth the future - it has no idea what the future will be. Instead, all it can do is to try to recover the past. That's the idea of this 'recovery', to try to coddle, protect and pay-off yesterday's success stories. From the Banks, Wall Street to the car industry, and welfare, governments attempt to prevent natural correction.
Political arguments result in a stimulus package that will do enormous damage to the economy. The idea is simple, just have the government write everyone a rebate check, and these rebate recipients will spend most of the money and create enough demand to pull the economy out of its recession. With a little luck, the people who supply the rebate recipients with their newly demanded products will also spend part of their added income on yet more products, and so on and so forth until the full effect of the rebate is multiplied manifold and provides a much greater and much larger needed boost to the economy.
But there’s also collateral damage that few understand or don’t care about. If the economy worsens and when their political sensors become alarmed, governments up the dose, and nobody knows how far this vicious cycle will take people further down into the drain.
Governments want to stay in power, as society is a democracy – in which the majority counts- they consequently create a culture of parasites to be re-elected. Instead of intervening less and letting people taking care of themselves first, and only assist the really needed ones.
It is clear that governments are over man-powered organizations, lacking insight, knowledge and motivation. Complacency - like what happens within the management of GM –
finally it should bankrupt them too. If politicians are not personally accountable and responsible for their deeds, we end up with what we daily experience –
incompetence-! An old rule applied by former President of the US Andrew Jackson, (1829 – 1837) should become rule again in the White House and Government.
"Government duties could be "so plain and simple" that offices should rotate among deserving applicants."
Most RecentMost Recommended Comments (6)
at 13:50 on August 26th, 2009
I'm interested in this idea of intervening less and letting people take care of themselves that you speak of - I just wonder how that would work. Believe me, I don't want to live in a dictatorship by any means, but I'm not sure I have enough faith in society for this idea to actually work.
People, like governments, are incredibly selfish, and 99% look out for themselves only, especially when it comes to economic matters.
I don't have the answer, but I think, that in these times, people taking care of themselves may not be the way to go either.
at 14:00 on September 5th, 2009
We live in a world designed and controlled by central bankers.
We are being harassed by terrorism, war, financial crises and viruses. The purpose is to make us throw up our hands and accept world government, which is a euphemism for banker tyranny. Whether it's climate change, wars, bank bailouts or "hate laws," there is less distinction everyday between the perversity of the central bankers and the actions of the government.
On a positive note, the "credit crisis" represents an opportunity:
1) to disown the "debt" which was created out thin air;
2) nationalize the central banks; and
3) take control of our own credit.
We must ensure that all political campaigns are publicly funded (a real campaign-finance reform) and strong restrictions on lobbying. The media and movie cartels need to be broken up and redistributed. The central bankers and their lackeys must be banished or the human race is doomed to further degradation. Because nothing will change until we take corporate money out of politics and nothing will improve until our politicians are once again answerable to their constituents, not the rich and powerful bankers.
at 14:15 on August 26th, 2009
Great insight PIM!
at 11:02 on August 27th, 2009
amjudd below I wrote in my today's essay: At present people should take care of themselves as much as possible, the sooner the better. Don't wait until government is broke, in that event there is not much of an alternative for everyone.
Conversely Governments are essentially parasites on productive activity. The best governments are the smallest – meaning, the least parasitic. Or differently expressed: aiming to govern the least.
At present the world economy is in its third and fatal stage, called the political stage. In this stage, the parasites take over. Government governs a lot more. And that governing costs a lot of extra money. In England, the government budget is bumping up against half the total GDP of the nation.
Mind you a budget 50% of revenue (GDP) no business can afford that! M.m. smaller is better, back to basics is the only solution. Only help for the really needies. Period.
at 14:15 on September 5th, 2009
The purpose of the banking system "is to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks, which were themselves private corporations. Each central bank sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent rewards in the business world." (Carrol Quigley - Bill Clinton's mentor and Georgetown University professor)
at 10:42 on September 5th, 2009
If bankers continue to rule lending absolutely, then government will continue to be their servants. It was Lord Rothschild who said, "Let me issue and control a nation's money and I care not who writes the laws."
The moves made to date by central bankers have simply tended to the symptoms, not addressed the underlying sickness – a surfeit of credit. This begs the question whether government staff are they capable of making the system work after healing its disease, or is it rather crippled instead? Such questions have become more than important now, they have become critical.