Thursday, July 3, 2014

Howard Stern: Democratic Party Is Communist

In 2008 Howard Stern was right (also see discussion on Bizpac Review): The Democratic Party is communist.  As Americans confront the failure of their political system, many are unable to assess that this is a gangster-ruled land.  Stern had the imagination, but only when the government directly affected his own dealings concerning the merger of Sirius Communications and XM Radio.  The Cato Institute subsequently pointed out that the FCC's authority over mergers should be ended; the communists in Washington lack the competence or honesty to regulate economic behavior.  The merger that the FCC later permitted had so many requirements that the new technology will likely be impeded for years.

Like the Germans under Hitler, Americans are not yet suffering from tyranny that they have put in power.  The Germans changed their minds about totalitarianism when they lost the war, and their own lives and futures were sharply reduced. It is when their own interests are directly threatened that Americans may decide that liberty is preferable to communism. Until then expect declines in the American economy and standard of living.  Stern states that he had voted for Hillary Clinton and Al Gore; it wasn't until his own interests were harmed that he questioned his pattern of voting for totalitarians.

Because of the might of the once-free American economy, the ill effects of American communism have taken the form of stagnation rather than decline.  Over time, though, stagnation will become decline.

The dollar may strengthen in the coming weeks, and there may be a decline in the stock market, but I don't think that the stock market will fall sharply in the near future.  The reason is that due to monetary expansion interest rates may take years to increase, and inflation awaits a shift in global support for the dollar. That also may take years.  Eventually, there will be dollar depreciation--inflation--and real wages will decline rather than stagnate. The massive stimulus that nourishes the current anemic American economy will ultimately turn into monetary inflation.  The increasing population will not be able to proportionately expand its output.

At that point I see either more extreme totalitarian steps or a call for more freedom.   There is little reason for optimism.  Ultimately, ownership of hard assets may protect Americans, but there is no reason to feel safe becaue the future America will likely be one where private property is not safe.  Franklin Roosevelt used government violence to take possession of privately held gold; there is no reason to think that private property, especially outside the private property of government cronies, is safe in the United States.

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