Maggie's Farm

The current power grab for economic centralization and control is something new in it's 'audacity'. The socialists have been happy to work incrementally up to this point. In effect, an attempt is being made to fundamentally change the relationship between the people, the states and the central governmnet under the guise of managing a 'crisis'. It appears however, that they may have taken too big a bite too soon. In two years it will become painfully obvious that the socialists have played their last hand. An additional 15% of last years GDP may be coming under their control but it will be a disaster for the country. The people and the states will tire quickly of the mismanagement. It will be time to start over, hopefully under the principles outlined in our Constitution.

The policies of this administration may lead toward a severe devaluation of the currency within a regulatory environmnet which makes it amost impossible to move toward production and away from debt based consumption. There's no way out under their scenario. They speak about raising taxes on the rich as the economy contracts, not to pay for this stuff but in the name of 'fairness', rather than allowing markets to clear. Who will invest without potential returns? There is little left to take through regulation or taxation, without destroying what productive capacity is left. You can pretend that increases in debt to fund more government is a solution but it's not. Economic reality will always win out, eventually. Who will buy the debt without much higher yields? Will people be looking toward the federal governmnet for additional solutions to problems caused by governmnet intervention and over-reach? The death of contemporary liberalism is right around the corner. This isn't 1932. We've been there, done that.