The Great Bailout: struggling to our next abnormalcy
June 1, 2020 | View PDF
The struggle from DC on down to my Lee County commissioners (along with politburo mayors) in the effort toward our next distorted result is full steam ahead. Gamblers on Wall Street – investors is poor nomenclature where market forces no longer drive results – reveal they’re betting that ‘whatever can be bailed-out WILL be bailed-out’ remains Trumpocrat policy as Dow, NASDAQ and S&P exchange indices return to “bubble, bubble toil and trouble” results. The recent $3 trillion air patch (more trillion dollar patches to come with the usual ‘worst of both worlds’ bipartisan outcomes) didn’t allow ‘fed air’ to escape much below the last big ‘TARP’ of hot air to avoid market discipline from the 2008 Fannie/Freddie fraud result. While poorly educated leaders like McCain and Obama evoked ‘Too big to fail’ platitudes; only a handful of non-soviet economists offered a corollary that GM, Goldman, et al had long been ‘too big to exist’ except for government distortions.
The so-called ‘Great Recession’ was a high watermark for the federal government to prosecute and imprison administrator, banker, bureaucrat, developer, et al fraud and bring Fannie and Freddie to end or at least again require 20% for mortgages to weather a downturn and not be upside down for ‘strategic defaults’ and other despicable actions. I’m guessing some of my readers were much like me before getting my first mortgage (did without for years to come up with the 20% down payment and pay for lower points) to think themselves foolish in retrospect... the Prodigal son’s brother is nothing new. Finance Professors and economists who championed mortgages in excess of valuations were seen as great experts as they proffered FDIC stress like Lowder’s Colonial Bank folly. It appears most of them did very well and were promoted in modern academia as facilitators/supporters of more government power.
The crisis du jour is often used to empower more government bureaucracy and power; instead of reducing our unconstitutional military engagements abroad to reduce blowback, the ¬ attacks were a great way to install our KGB (Dept. of Homeland Security) and further federal subsidization of the airline industry. Yet another ‘too big to exist’ except for the distortions of govt. ‘regulations,’ eminent domain abuse, tax breaks, etc. Perhaps the only exception in my lifetime was the federal response to an ‘existential threat’ from TMI (Three Mile Island) invisible radiation. What were the odds our President at the time was a nuclear physicist with strong moral character (unlike the type of strength observed from more modern executives) to actually know what he was talking about and provide sound leadership. Of course there would be no private nuclear power plants without govt. protection – no insurance company would dare contract for such a devastating liability. How many said the world would end without nuclear fueled electricity to continue growth? Carter sure took his lumps for blocking new nuclear plants and advocating coal as the more rational result. Many economists cite Carter refusing to play games with the money supply before an election as foolish – it took courage to employ Volker and stand by him after the LBJ/Nixon years – don’t expect this from our current executive. His loss gave us an even bigger govt. Democrat from Nixon’s California, running as a Republican, who exploded debt per capita not seen since FDR.
Some asked my thoughts on China which stemmed from the President I consider the worst in my lifetime. My ‘mind’s eye’ can still picture Pop’s “Nixon’s thru in ’72,” bumper sticker on the back of his old blue 1965 Chevy Bellaire – not that I think McGovern would’ve been much better given the duopoly choices. Nixon foolishly opened China aiding and abetting the communists desperately propping up their command economy. It would’ve been difficult for such a vast over-centralised system to avoid imploding without our trade – esp. under the modern federal income tax subsidized trade result. Some may recall a column advocating return to a more Constitutional/rational trade policy instead of observed bi-polar swings between rabid free-traders and protectionists: https://www.alabamagazette.com/story/2018/02/01/opinion/toward-a-more-rational-constitutional-immigration-policy/1275.html
We’re no longer in the era of an impeached president with decency to follow a statesmen like Barry Goldwater’s (very scarce in today’s Senate) advice and resign. Now we’re in an era of pardons which would make corrupt Gerald Ford blush. Today we have impeachment/acquittal Kabuki theatre to inoculate Biden and Trump from consequences – again, still waiting to ‘Lock Her Up.” Imagine if all that time and effort had been devoted toward the federal government accomplishing those few things authorised in the document so we’d be less exposed to and closer to viral (not political) inoculation or at least less virulent, ”flatter” results.
Some reports have ONI (Office of Naval Intelligence) noting the Wuhan flu/SARS CoV2 in mid November. If we had executives who understood the Constitution and took their oath of office seriously, they would’ve inquired if our Sailors and Marines were being kept out of harm’s way and if customs were making arrangements to block and check persons coming from this ‘hot spot.’ I know Kabuki players argue origination from a lab, wet market, etc. IT DOESN’T MATTER. In fact, I expect China, Russia, et al to lie about things of this sort similarly corrupt as we’ve become on black ops, currency manipulation, etc. these past several score. I wish more knew about our Constitution and history – the ‘Spanish flu’ of 1918-9 got the name not because of origination but because their press was not controlled enough to cover it up early on in Europe. Imagine how less profound that pandemic may have been in the US without so many infected returning from WWI had we allowed Europe to stay in their horrific stalemate instead of paving the way for German National Socialists two decades later.
Again, this is a result of poorly educated executives installed by our anti-competitive election process which puts Bushes, Clintons, Obamas, Trumps in power... they simply don’t care/know what they are authorised/supposed to do, more interested in their own ends. I applaud Trump getting rid of the White House pandemic response unit and stop federal funding of the WHO (and CDC if on a roll) along with other things not authorised to the central government and left to States. It does make sense to have a few at the ICC prepared to have a pandemic plan in place to keep commerce regular (exchange of information and equipment to highest valued destinations) when an outbreak/hot-spot(s) arise within a State. Money spent on WHO, CDC, etc. is unconstitutional and would be better spent in the Navy to immediately identify and work on response for national security and advise customs on severity. I remember being ‘quarantined’ at an Agenda 21 meeting put on by the Lee County politburo advocating even more crowding into urban areas – seems they didn’t like my questions about likely health/pollution issues if history was any guide. Anyone not in-line with the soviet end had to be silenced/shown to be a pariah for the UN show.
If we DID have/elect people wanting a more Constitutional policy following Article 1, Section 8, Clause 1 which states, “all imposts, duties and excises shall be uniform throughout the United States,” and it is universally accepted that “imposts, duties and excises” are antiquated words for what are more commonly called tariffs today – i.e., taxes on imports – we’d observe more production of our comparative advantage. Before the Republican Party gave us the first federal income tax there were enough members of Congress who held to their oath of office impeding such a deleterious tax upon their nation. This design leads one to understand why there was NOT a two-year appropriations limit put on the Navy, as is placed upon the Army – also not followed today. Those who wrote and ratified the Constitution wisely feared large, long standing federal armies, but realised a Navy would be an integral part of defining, defending and enforcing property rights on the high seas to facilitate regular commerce.
That’s why so much ink is spilled on maritime issues, piracy, etc. in the enumerated powers. Navy and Marines would operate under the same administration (reduce duplication and yes that means abolishing the FBI to increase the investigatory division of the US Marshals, shutting down the CIA, NSA, et al agencies for ONI to again be effective) for immediate deployment requirements and Congress could decide to decrease or increase arsenals, bases, dock yards, forts, equipment, magazines, soldiers, sailors and ships when forecasting how great a defense force would be required to address those few issues the people of the States ceded to federal authority. Now we have a Commander in Chief who wants to crucify a Capitan trying to defend his aircraft carrier, righteously caring for his assets and crew in his charge to defend our nation of States. Even more illustrative, it seems our current executive doesn’t understand the labour distortion of an income tax imbedded in export prices where cost of trade is not incorporated into imports discouraging domestic production.
In some empathetic way I want to applaud the dumb masses who champion ‘build the wall.’ They sense something is wrong, but almost all had govt. education or politically correct private education (delighted to read more are seriously considering home schooling given where our nation is headed) to have no idea how the federal govt. was designed to work. Once ONI put Wuhan on the hot-spot list, customs checks and (if warranted) quarantine those coming into States financed by the tariff on their ticket, bill of lading, etc. If one wants to voluntarily (unlike our sailors/marines) be on some monstrous cruise ship ‘petri dish’ – OK with me, do it on your own dime. The uniform tariff on that ticket will be used to pay for quarantine accommodations when deemed necessary. Those who cannot properly provide documents (some may recall ‘Without Papers’ when we had a more functioning system) must be held for the duration instead of locking down 50 States under the current failed result. There was a time when we understood to ‘flatten the curve’ you had to get in front of it before letting it into your economic system. Now with our overbuilt airports, roads, etc. (there would be much fewer overland truckers suffering the current circumstances if the ICC had not killed our railroads – most tractor trailers would be making trips from rail hubs to local destinations) contagions of this sort move much more quickly with increased difficultly to contain and trace/follow contact trails.
If we returned to a more rational federal funding source and used existing land from our coastal fort system (as they became more obsolete) we would’ve been able to accommodate those requiring quarantine. These facilities would also be available for those attempting to abuse the unconstitutional system which has evolved these past several score without separating families and other inhumane detainee results. Don’t expect Trump to applaud ONI and end CIA, FBI, Homeland Security, NSA, et al alphabet soup – he’s more interested in TV ratings and championing the “Space Force” too ignorant to know it is the Navy’s job; much of the nautical tools to solve the navigation problems of inner space translate into problem solving for outer space. Please do not send me reasons you think equally corrupt Biden will somehow be an improvement – I’m ashamed of those who continue to defend these two pieces of carbon of such poor character and integrity. Do you really think Ukraine Joe understands much less will somehow now champion the Constitutional result instead of struggling to another even more virulent, abnormal result? Those who support and vote for Bidens/Trumps ARE the problem – sadly those least able to defend themselves from their harm are also the ones who least understand. As usual they’ll suffer the most while adoring the strong man destroying them.
Postscript: Thanks for the many kind calls, e-mails, letters, posts, etc. on the passing of my earthly father. Some assumed he was a victim of Covid-19 which is untrue... he died peacefully (just after his 90th birthday) of natural causes associated with being blessed to have lived such a good long life. He delightfully expected to be home from the hospital later that day as a victim of circumstances prohibiting visits from those he loved for days. Knowing he was good with God was best inheritance my father could possibly leave me. It was difficult to see so many family and others who held him dear banned from attending his funeral services – esp. at the gravesite where it could’ve easily accommodated distancing requirements. Similarly difficult to endure bureaucrats and politburo down here say it is ‘time to circle the wagons’ in true self-serving spirit for their own ends with the usual ‘Judas rhetoric’ of claiming to care about the poor and disadvantaged. My father was a strong, wise man who understood he had to be strong and of enough means to be able to take care of his family and have enough to help others. I ask all to show similar strength and wisdom in the difficult times to come. I don’t have names to specifically pray to my Heavenly Father for those who were with my earthly father during his final days, but I’m certain God knows who they are and the reason for my prayer – we’re blessed to still have good people of this sort in our midst in these terrible times which could have been attenuated. My father earned being around good souls of this Spirit and a peaceful exit.