Letters by a modern St. Ferdinand III about cults

 Who can deny that the US is already bankrupt, and that the meaningless alphabet soup of economic 'data' are guesses, spending algorithms and politically-convenient distortions ? Do you really think that 'they' know the precise nature of 'gross domestic product' or economic activity ? [it is laughable that the state in its rather inane set of economic lies is so exact with GDP – ie. 1.2 % growth, vs. say 1.4 %]. The state will make up whatever numbers it wants the peasantry to consume.

From ShadowStats [subscription needed]:

“Although not statistically significant, the headline decline of 0.1% in real (inflation-adjusted) fourth-quarter GDP—the first quarterly contraction since the official recession—could have been produced with simple massaging of the data.  Given the level of guessing included in today’s (January 30th) GDP guesstimate (see below), the Bureau of Economic Analysis (BEA) had the ability to bring in headline growth at any level desired, certainly within a couple of tenths of an annualized-percentage point.  Decisions of at least that magnitude had to be made in order to put out the fourth-quarter guesstimate.

At first, deliberately producing a headline GDP contraction may appear to be counterintuitive from a political standpoint, but consider the negotiations ahead in Washington, D.C.  With a small contraction reported in the economy, it could be argued by those opposed to cutting the budget deficit, that any move towards fiscal constraint now only would drive the economy into renewed recession, the long-feared double-dip becoming a reality.

In reality, however, the economy already is in that double-dip, a byproduct of the unfolding crises in play since 2006 and before.  A sustainable recovery cannot and will not be forthcoming until consumers’ structural income problems are resolved, and until the nation’s extreme fiscal imbalances are addressed.”

The Keynesians and Marxists will wail that only government creates anything. Further, if you cut governmental spending you will destroy economic growth and leave millions of people to starve to death, or not collect their 'paid in' socialist programs they so dearly love. All of it is gibberish. Keynesian economics is of course an absurdity, and about as scientific an analysis of the economy as GlobaloneyWarming is of climate. But the Keynesian mysticism to spend often, spend more, and to print often and print more; is a necessary corollary for big government expansion.

According to the logic of the civil service and the rabble named politicians; we can never 'cut' government spending without eradicating the economy. Ergo spending must always and only increase. In reality only the supply side generates jobs and income, and that private economy will only positively respond to less government, lower taxes, and smart but smaller regulation. We now have a system stimulated and driven by 'demand' ie voters and voting considerations [termed democracy, but more aptly a mobocracy]. Leviathan simply squats on, and crushes the lilliputs who create true value in the political-economy. But that of course is the whole idea of statism. Eradicate all centres of opposition. Impose the cult. Force the individual into the collective.

“The primary issue, however, remains the failure of the government to make any serious effort at bringing the nation’s extreme and dangerous fiscal conditions into balance.  Efforts at delaying meaningful fiscal action, and at briefly postponing addressing the Treasury’s debt ceiling, have bought the politicians in Washington a little time in the global markets, but the patience in the global financial markets is exhausted.  Market tranquillity likely will not last much longer, despite the tactics of delay in Washington.  This should become increasingly evident as disgruntled global markets begin to move against the U.S. Dollar.”

The US dollar and economy will continue to decline. But the US is not alone. It increasingly looks like the main objective of every single modern nation state's government, is to lead the mass into bankruptcy, wherein the 'state' will trumpet that only 'it' can 'save us', from annihilation. This is now called 'progressivism' and 'democratic resolve'. Sure it is.