This narrative is the closest thing to a Hayekian critique of the matters at the center of the current fiscal crisis, propaganda style. The author understands with some clarity the extent to which taxation is coercive force, and he understands how banks have Washington over a barrel. But he only goes on to discuss what's potentially next rather than what started it all, which was deficit spending in support of entitlements, absurdly low interest rates and a failure to properly regulate banks. Perhaps he goes out of his way not to use the words 'deficit spending', 'welfare state' or 'entitlement programs', the terms of outrage that regularly spew from Republican pie holes. But the point doesn't change, and perhaps that will become obvious over time.
Revolution? Not necessary. Starve the government. Necessary.
The other leg of the stool that the narrator implies but doesn't make explicit is what the effect of low interest rates has been. If the Federal Government guarantees that it will not default on its bond guarantees (which it does implicitly) and the Federal Reserve keeps 'lending' money at close to zero percent, then any entity that can get money at that very low percent can buy those Federal bonds and be guaranteed a profit. Guaranteed. This is the policy (Quantitative Easing) that is supposed to be the great stimulus to the economy, but as far as I know, the class of investors who stand to make the most money are only those who qualify to get money directly from the Federal Reserve, ie banks.
There was never any stipulation (and how could there be) that the banks immediately loan out that money to other businesses and let the Easing trickle down. After all, it was bank liquidity and toxic assets that were the huge problems. That the Administration after three years has done essentially nothing to change the policy of QE, means effectively that it always been and only was going to go to the banking industry. So it's fair to say that the only businesses that have been bailed out as far as economic stimulus is concerned are the big banks. But implicitly the Federal Government is bailing out itself by having buyers of Treasuries guaranteed. Over and over the debt ceiling has been raised. Over and over the Federal budget has not been reduced. And of course, the Supercommittee has failed.
So what will break first? Well, the consent of the governed is practically broken. And as soon as the OWS crowd starts chanting 'Taxation Without Representation', they will merge with the Tea Party and real democratic change will become inevitable. I see it. Can you?
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