Tag Archives: European socialism

It Can Happen Here

Cyprus

For years now, the Euro zone has been experiencing difficulty absorbing the costs of bailing out relatively small countries with relatively small economies that have relatively small amounts of debt.

Most recently, Euro zone leaders agreed to fund a bailout of Cyprus with a deal that includes taxing private bank deposits.  The deal to fund 10 Cyprusbillion euros worth of rescue loans for Cyprus imposes a 6.75 to 9.9 percent tax on those with cash in Cyprus banks.  Without the EU bailout Cyprus cannot avoid default, but the unexpected and unprecedented decision to take money from private depositors fueled a sense of crisis across the euro zone and led to a run on Cyprus banks by depositors.

The Cyprus deal could lead savers in similarly indebted countries like Greece, Italy and Spain to withdraw money from their banks, leading to a regional economic crisis that would affect bond and stock markets world-wide.

Imagine the difficulty faced by the world’s economy when the United States of America can no longer finance its debt.

It can happen here.

Greece recorded a government debt to GDP of 170.60 percent in 2011.  In 2011, the United States government debt to GDP ratio was about 100 percent.  Should the United States continue deficit spending at current rates, the United States will soon surpass Greece in debt to GDP ratio.

http://www.guardian.co.uk/business/2013/mar/18/cyprus-bailout-markets

What the United States government must do is stop spending money it does not have.

Before that will happen, American taxpaying voters must be made aware of the realities of the situation.

For so long as American taxpayers are unaware of the danger that looms just over the horizon, their concern will be focused on maintaining current levels of government payouts for Social Security, Medicare and Medicaid.  Until American voters understand that not restructuring big government socialist programs will bankrupt the U.S., they will not vote for the necessary revisions.  They will continue to vote for the status quo.

The truth about the danger American debt poses to the U.S. economy is not being disclosed by “progressives;” be they politicians, media pundits, college professors, Hollywood producers or government bureaucrats…including but not limited to winners of the Nobel Prize for economics.

It does not take a Nobel Prize winner to see that whole sections of the European economy have governments whose budgets are in horrible shape and teetering on the brink of true insolvency.  It does not take a genius IQ to realize that the cause of debt in those countries is big government spending money it does not have on socialist programs to support citizens dependent upon government for their existence.

It also does not take a Nobel Prize winner or a genius IQ to find information that makes it past the “progressive” filter NBC, ABC, CBS, CNN, The New York Times, The Huffington Post, The Los Angeles Times, Time Magazine, Newsweek and the rest of the “progressive” Party Pravda use to misinform the American public.

All it takes is a desire to learn the truth and a willingness to search beyond the filtered information used by “progressives” to nudge people into believing what “progressives” wish them to believe.

The last time America faced an existential threat during WWII, Americans fought and died by the thousands on foreign lands.

Is asking Americans to view the “mainstream media” with a skeptical eye and seek out second opinions now too much to ask?

http://mjfellright.wordpress.com/2013/03/18/it-can-happen-here/
Love. Early American Style.

Adieu France, So Long Stability

French Socialist President Francois Hollande’s newly elected government is planning to raise taxes on big companies while deterring businesses from engaging in layoffs by making that process more costly.

Hoping to nudge companies into investing rather than paying profits to shareholders, the government plans to impose a new 3% tax on dividends. Other plans include raising levies on capital gains, a special tax on banks and on energy companies, as well as imposition of government policies requiring the sale of profitable businesses in lieu of closure.

France’s Socialist government will dictate that it is illegal for a profitable, privately owned business to close its own doors.

So much for having the French people engaged in business activity. This less business-friendly government is going about the business of smothering France’s economy.

The prospects of trying to do business in France’s new economic environment resulted in margins tumbling, cash flow dwindling and orders collapsing. The uncertain outlook has postponed or cancelled investment and hiring.

Medef President Laurence Parisot told a news conference “The first source of financing for companies’ projects comes from private investors. Increasing tax on dividends runs the risk that private investors either invest less or elsewhere. We’ve had many meetings with the staff in ministries to explain what’s happening, but we are becoming deeply distressed. We fear a systematic strangling. Let’s be careful not to transform our country into a super-rigid enclave completely out of touch with the functioning of market economies as found everywhere else.” Parisot said.

Statistical data from the INSEE agency shows that business confidence fell in June to the lowest level since 2009, when France’s economy first showed signs of emerging from the nation’s worst post-war recession.

Hollande was elected last month after pledging to fight unemployment and revive growth. What he and his government are planning is not the way to go about achieving those goals. Attempting to resolve an economic dilemma that nanny state entitlement spending caused by destroying the tax base through imposition of business strangling regulations and taxes, while increasing the amount of spending done on entitlement programs is like trying to get a drunk sober by giving him a case of champagne. It’s going to have an effect opposite to the one desired. It is only going to make matters worse.

The way to balance a government budget is to stimulate private sector economic growth. That is what creates the tax base required to fund the government. Making it more difficult and more expensive to conduct business in the private sector is counter-productive to balancing any government budget.

By following economic policies similar to those Hollande plans for France, the United States is currently experiencing 1.8% economic growth. At this same point in President Ronald Reagan’s first term in office, his economic policies had stimulated the private sector U.S. economy to a 7.2% growth rate.

Can you say duh?

Both America and France could learn a thing or two from the economic policies of Ronald Reagan. In the case of the current White House occupant, that does not include hollow, unfounded, meaningless claims that you are much like President Reagan. It makes no difference whether those claims are made by you or your eager, obedient lapdogs in the institutionalized “progressive” left’s smear machine, referred to by your dumbed down, ill informed “progressive” congregation as the mainstream media.

France has the second biggest economy in the European Union. If this is the best the French can come up with, it is time to bid adieu to France and to European Union stability.

http://mjfellright.wordpress.com/2012/06/19/adieu-france-so-long-stability/

Europe Won’t Work in America

Spain’s economy is under such duress that the country is prepared to request a 40 billion Euro cash injection from the Euro zone this weekend. The request comes after Fitch Ratings reduced Spain’s credit by three notches on Thursday. This move will make Spain the fourth country to need a bailout since the European debt crisis began. The Spanish banking sector’s weakness and contagion from Greece’s debt crisis have put Spain’s economy in such a precarious position that the International Monetary Fund reported a need for 90 billion Euros to entirely cleanse Spain’s banking sector.

Much has been said about the problems of Greece and how those problems will impact the Eurozone. However, the size of Spain’s economy is over four times that of Greece’s. Spain’s 11.5% share of the Euro zone’s GDP has a far greater impact on European finances than does Greece’s 2.5%.

What the world is witnessing is the collapse of the European socialist economic model; the failure of government dependency. As more people become dependent on government, fewer people are left to pay the cost.

But it goes beyond simply spending other people’s money. The socialist entitlement mentality makes people less productive. As more and more people become less and less productive, an ever-smaller minority of productive people become responsible for shouldering the burdens of a completely lopsided, unfair system. When a tiny number of productive people are required to deprive themselves of the fruits of their own labor in order to finance the lives of the remaining population, where is the incentive for them to produce?

If that is not enough, reliance on a big government nanny state makes people less responsible for themselves, less self-reliant. That is the antithesis of the American way of life.

When European settlers colonized the New World, they left the security of Europe behind in favor of North America’s unknown wilderness. They left homes, family, friends and country behind in exchange for an opportunity to build better lives for themselves. They were freed from the constraints of Europe’s restrictive class system. They openly rejected the European way by leaving.

When the British Monarchy deemed to re-impose that system on Britain’s thirteen North American Colonies, that attempt was adamantly and thoroughly rejected. Hence the Declaration of Independence, the American Revolution and the founding of the United States of America.

When America’s pioneers ventured west to traverse the Great Plains and cross the Rocky Mountains they were completely self reliant. They took care of themselves. They didn’t have, want, or need a big nanny state government to take care of them from cradle to grave.

This is the stuff of which America is made.

Because it gives them control over “the masses”, “progressives” have long sought to fashion America after the European socialist model, to make Americans more government dependent. There was FDR with the New Deal and Social Security. LBJ gave America the Great Society, Welfare Programs and Medicare. Now obama forces upon an unwilling America the crown jewel of European style socialism; government controlled medicine.

Every time obama holds a press conference he sounds exactly the way he has always sounded: he inherited the worst economic crisis since the Great Depression. his policies are working, but need more time. Congress needs to quit stalling and enact more of his policies. The private sector is doing fine but to grow the economy government needs to spend more money to create more government jobs at the state and local level.

Coming as it does on the heels of the Wisconsin recall election, where such policies were rejected, this shows precisely how out of touch obama is with the private sector, how the economy works, American history and the nature of America’s people…and with reality.

Europe won’t work in America. Neither will an out of touch narcissist who insists on imposing a long rejected European system upon America.

obama, you are fired.

http://mjfellright.wordpress.com/2012/06/08/europe-wont-work-in-america/