WASHINGTON, February 2, 2015 — The Greeks elected a far-left government as an angry reaction to the dramatic cuts to programs that government-dependent Greeks rely on. And the value of Greek bank stocks tumbled by 40 percent on rumors the new government planned to default on its debt to international creditors.
In Madrid, Spain, thousands took to the streets to express their anger at government cuts in order to pay off their welfare debt.
The politics of redistribution – whether it’s called socialism, collectivism, or hope and change – is in free fall. But you wouldn’t know it by reading news reports.
Down in Venezuela, its strongman warned his nation of an impending threat to Chavizmo, the brand of socialism unique to that banana republic thanks to the late dictator Hugo Chavez.
Socialism, whether of the Lenin, Stalin, Mussolini, Hitler, Castro or Chavez variety, is said to derive special magical powers from the dictatorial crank espousing it. And when market forces or surrounding armies threaten its “inevitability,” a conspiracy is surely underway.
The dramatic drop in oil prices, for instance, is depriving Venezuela’s socialist government much needed petrodollars for wealth redistribution, resulting in food shortages now fueling unrest.
“My responsibility is to call upon people to be on the maximum alert level,” said President Nicolas Maduro in a televised address to the Venezuelan people last Monday. “The imperial power has entered a dangerous phase of desperation and has been talking to governments of the continent to announce they’ll topple my government. I accuse U.S. Vice President Joe Biden, who personally spoke with… [Latin American] presidents and prime ministers about the plan.”
It’s preposterous to believe that the clueless Joe Biden is a threat to bankrupt Venezuela anymore than the 84-year-old director Clint Eastwood is a threat to the preposterous, pudgy and pusillanimous Michael Moore.
External threats to unworkable socialism are equally preposterous, as is its promise of a bright future.
Meanwhile, fracking capitalist running dogs, according to Bloomberg Business, are putting the United States in a position to “surpass Russia and Saudi Arabia as the world’s top oil producer.”
“As production goes up and imports go down, it does have positive macroeconomic effects for the U.S.,” said Societe Generle SA’s energy analyst Mike Wittner. “It’s good for the balance of payments, good for the dollar, good for jobs, for other heavy industries.”
You see, a major problem for socialist masterminds is predicting a future they claim to design. As I recall, it was the “hope and change” leader of our banana republic that said, “We can’t drill our way out of this [energy] problem.”
No matter, he’ll more than make up for his predictive shortcomings by proposing higher federal taxes on an industry he diligently worked to replace with inefficient, pre-Columbian “green” power… wind and solar.
Socialism is about to hit a wall. Its Achilles heel, as the late British Prime Minister Margaret Thatcher famously said, is that socialism eventually runs out of other people’s money.
It’s a financial black hole from which nothing escapes. All dollars that pass its event horizon are dead dollars; an “investment” with no return.
President Obama’s proposed $4 trillion budget will require the Federal Reserve to print more dollars, expanding the nation’s $18 trillion debt, which will never be repaid.
The Greek economy, ravaged by decades of socialist rule, can never pay back its creditors either. And the crumbling nations of the European Union aren’t anxious to extend credit to the Greeks who stiff fools bearing financial gifts.
Back in 2010, MIT economics Professor Jonathan Gruber, who masterminded Mitt Romney and Barack Obama’s dictatorial health care plans – you know, the guy that correctly pegged people as stupid for believing socialist state planners can produce abundant and free, well, anything – had another brilliant socioeconomic idea.
“Ultimately, what may be needed to address the obesity problem are direct taxes on body weight,” said Gruber. “Results of the programs that use… [insurance] premiums to impose direct financial penalties for obesity will bear watching in the future.”
It appears that Obamacare’s arrogant architect is a greater threat to Michael Moore than Clint Eastwood.
Gruber shouldn’t worry. Socialism, being what it is, can be relied upon to thin the herd through scarcity, rationing and, eventually, starvation.
Socialism provides a lesson our Gruberized world seems incapable of learning.