I hate to dampen the Christmas cheer, but our economic elites continue to drive the Western world down with their manipulative economic policies. First we were told “trust us,” and they would deliver perpetual prosperity, the welfare state, economic equality, and a high-tech wonderland. For most Americans, unfortunately, the response was a shrug of the shoulders and a “that sounds good to me” mentality. After the financial crisis of 2008, my hope was that the American people had awakened and the elites would be put on notice: stop trying to manipulate markets. Leave them alone and prosperity will come from the ingenuity and energy of the American people. That was the message of the Tea Party movement and the results of the 2010 elections.
But the manipulation of the market continues. Look at the continued debasement of our currency. It’s happening here in the United States and in Western Europe. David Einhorn, who was one of the first to predict the 2008 financial crisis, now says that current artificially low interest rates are preparing us for another crash. He calls it another “debt trap.” The Federal Reserve is making it too attractive for the federal government to continue to borrow money.
Meanwhile, China’s Finance Minister is fearful that Europe will face a “perpetual” fiscal crisis. In other words, it is never going to go away. Despite solid efforts in Germany and the UK, most of Europe can’t seem to wean itself from the addictions of the welfare state.
The biggest story in all of this is not the economic carnage. It is the complete, utter, and total failure of our elites. They told us they were the Masters of the Universe and could guide us to prosperity. President Obama’s team made a particular point of lecturing the American people that “competence” was now the new code word in Washington. Yeah, right. We need to recognize the truth once and for all: prosperity is a result of our hard work and sound government principles. No cute manipulation of the tax code or money supply is going to create wealth. The question is: will the American people and the European public still look to our elites to “fix” our problems? Or will the lesson finally be learned? My fear is that our elites understand human nature better than I do and will hoodwink the public yet again.
The global economic elites are like an unfaithful spouse that has cheated again, again, and again. They tell us now, trust us again. This time they will remain true. Will the American people continue to suffer from battered spouse syndrome, or will we finally stand up to them? History does not offer much hope. This cycle has been repeated again and again over the past eighty years. But then again, the American people have, on several occasions, stood up and done the right thing and made the necessary sacrifices to secure their liberty. Lets hope in 2011 we can do so one more time.
Big Peace
