Friday, September 02, 2011

Government Has No Tools To Fix What Ails Us - Time To Man Up

14 million Americans are unemployed, and the real number is actually much larger.

So, what's news? Most of the same 14 million are going to be jobless this time next week, month and probably next year.

But, you ask, "What about the President's new jobs program?" And you would be referring to the upcoming, "Obama does his impersonation of FDR," live on primetime TV.

Dead on arrival. It took Congress and the White House two days to agree on a time for the President to address Congress. Bohner has already scheduled his rebuttal and he hasn't even heard the President's plan to insert government further into America's rectum to find the source of our pain.

Teamsters president Jimmy Hoffa, Jr., on the other side of the ledger, already doesn't like it, either -- it doesn't go far enough. He hasn't heard the President's grand plan, either, but according to Jimmy it needs to give everyone a good government job fixing something. Jimmy doesn't know, or perhaps he forgot that the US government is dead broke, can't afford a stick of gum on a cash basis, and but for the printing press, would have burned up it's creditors long ago.

We have a problem here - a fundamental belief that government is somehow going to pull out the right tool and make it all better. The Republicans and Democrats are just arguing over whether the tool should be a scalpel or a meataxe.

In fact, it should be neither. Government isn't the solution. It is the problem. It is why we find ourself on this predicament. What we have is not an employment problem. That is not a cause. It is the result of our inability to compete in a global marketplace. We have lived on our reputation and our credit for too long and now reality is setting in and our creditors want to be paid in something other than the US dollar which hasn't had a good run over the last 100 years, having lost 94% of it's value. The Federal Reserve is working overtime to insure that the last 6% meets the same fate.

The White House reminds me of the old USSR - central planning via next five year plan. Sounds good, but didn't work out so well for the Ruskies.

The National Labor Relations Board is a good example. This agency has become so politicized, so liberal, that some Republicans are urging it's only Republican member to resign, not in protest, but so that the remaining members will not have a quorum and effectively shut the agency down. Based on it's recent decisions that turns labor law on it's head and anticipating, as we should, that they fully intend to shorten the period between a union petition and the date employees vote such that only one side (the union side) has time to be heard, it is understandable. And, the NLRB's attempt to force Boeing to close a billion dollar plant in South Carolina and move the work back to it's union plants in Washington state is breathtaking. If the government wins, it would not be surprising to see all Boeing aircraft being made in Mexico, Brazil and even China in not too many years.

The Republicans have no better record even though they are assuming the noble pose. George W. Bush still is undefeated in profligate spending and running up the national debt. He just did it in a different way -- by blowing things up and letting the global financial elite not only run the country, but own it.

No one is going to say it, so I will. It is time for a good old fashioned Depression to fully deleverage America and start over again with a clean balance sheet.

And whether I say it or not, that is the most likely scenario, sooner or later.

Government has no tools in it's bag to fix this one.


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