Today we go inside the Liberal mind and feel the darker edges of its infection.
Mr. Josh Boak of the Fiscal Times wrote a piece called Five Things You Need to Know about National Debt <link>.
I knew before I began reading it that it would contain a message of “Don’t Worry” about those gigantic U.S. deficits and cumulative federal debt — now approaching $17 trillion in a $14 trillion economy.
I was not disappointed.
There are many passages of Liberal delusion and insanity, but I’m busy and just can’t bother with all of them, so let’s focus on mr. Boak’s most sinister and destructive sophistry. In the following passage, he seeks to explain why the United States is different from Greece, which is as we all know has surrendered its sovereignty to Germany after bankrupting itself through a Liberal orgy of unfunded entitlements.
First he does what all Liberals do and latches onto the ratio of “debt held by the public” as a percent of GDP as opposed to the total federal debt, which includes intra-governmental debt (such as the amounts owed to the Social Security Trust Fund). This legerdemain allows him to use the 80% ratio instead of the 121% debt ratio that is the true total (unless you believe that money owed to the Social Security Trust Fund and other government programs on which people rely is not really debt??). So note the reference to “80%”, and then read the whopper that continues after (emphasis added):
Why 80 Percent Isn’t the Tipping Point – Morgan Stanley’s David Greenlaw and two other economists issued a study in February indicating that a debt-to-GDP ratio of 80 percent puts the country on the path of a downward spiral.
Not necessarily. The case study holds true for Greece, but that country couldn’t inflate its way out of the problem by printing its own money. The United States can in theory run the printing presses at full speed, so it might have a safety valve that the Greeks did not with the euro.
Is he actually making a an almost casual case for “running the printing presses at full speed” and destroying the U.S. dollar as a store of value — THE store of value (preferred reserve currency for all nations) on Earth and the bedrock of American wealth and power?
Yes he is.
Is this offensive, destructive, economically unsound, morally bankrupt, and tantamount to promoting national suicide?
Yes it is.
He must know this because he offers the following half-hearted statement in (totally inadequate) acknowledgement of the dangers of inflation:
Inflation is generally regarded as a negative—except when governments use it to manage out-of-control debt. Like everything in economics, there are tradeoffs to this strategy—prices for food and gasoline surge, ostensibly making much of the country that is already struggling even worse off.
There are “tradeoffs” to using hyper-inflation to escape a crushing amount of federal debt?
Mr. Boak makes it sound so academic and unemotional, but hyper-inflation is one of the most violent and disruptive elements on the roulette wheel of national self-destruction.
Perhaps a review of the German episode of hyper-inflation in 1921-1922 would help Mr. Josh Boak. From Wikipedia, emphasis added:
The Treaty of Versailles imposed a huge debt on Germany that could be paid only in gold or foreign currency. With its gold depleted, the German government attempted to buy foreign currency with German currency, but this caused the German Mark to fall rapidly in value, which greatly increased the number of Marks needed to buy more foreign currency. This caused German prices of goods to rise rapidly which increased the cost of operating the German government which could not be financed by raising taxes. The resulting budget deficit increased rapidly and was financed by the central bank creating more money. When the German people realized that their money was rapidly losing value, they tried to spend it quickly. This increase in monetary velocity caused still more rapid increase in prices which created a vicious cycle. This placed the government and banks between two unacceptable alternatives: if they stopped the inflation this would cause immediate bankruptcies, unemployment, strikes, hunger, violence, collapse of civil order, insurrection, and revolution. If they continued the inflation they would default on their foreign debt. The attempts to avoid both unemployment and insolvency ultimately failed when Germany had both. <source>
…hyperinflation is widely believed to have contributed to the Nazi takeover of Germany and Adolf Hitler’s rise to power. Adolf Hitler himself in his book, Mein Kampf, makes many references to the German debt and the negative consequences that brought about the inevitability of “national socialism”.
So, JOSH, do you want bankruptcies, unemployment, strikes, hunger, violence, collapse of civil order, insurrection, and revolution, or do you want the rise of another Hitler?
Or are you an idiot?
I usually prefer to say that someone is making an idiotic argument and not that they themselves are an idiot, but in this case I can’t help it.