Institutions, religions, and political ideologies are having difficulty adjusting to the migration and growth of populations

The World is Having a Nervous Breakdown


- Alan Caruba
Tuesday, September 27, 2011

If one has been in the habit of reading history then the events of the past and of the present inform each other. For this reason, it occurred to me that the world is once again having a nervous breakdown.

It’s not just about money, though surely the nations of Europe along with the U.S. have spent themselves into the poorhouse in ways that defy the imagination. If it weren’t so serious, it would be comical to see the desperation that has led our Federal Reserve to print money backed by nothing and to watch the central bankers of Europe move gobs of euros around between the new mother church, Germany, and the banks of Greece, Spain, Ireland, and Italy so that they can pay their bills.

They’re all broke. We have individual States that have a higher GDP than Greece that have balanced their budgets. Those are usually the States whose constitutions require they balance their budget. The rest are run by governors torn between taking the federal largess intended to deprive them of more sovereignty and hoping that the next natural disaster hits the State above or below them instead.

Few arrive at a nervous breakdown overnight. It takes time and a variety of bad decisions or bad luck or both. After blaming George W. Bush and Republicans for his problems, Obama has taken to blaming bad luck. Does he even know that people have concluded the economy is now officially and completely his fault?

When he proposed Obamacare, a million Americans showed up in Washington, D.C. to tell them not to do it. He should have listened to them. Now we call them the Tea Party.

Obama cannot explain away having increased government spending by 50% between 2008 and 2010 while calling for higher taxes on everyone at the same time there are an estimated 14 million Americans out of work, stopped looking for work, or can’t get a job because Obamacare has so screwed up the near future that businesses are reluctant to hire anyone.

The 2008 financial crisis was 100% a government creation dating back to the establishment of Fannie Mae in 1938 to purchase mortgages from banks in order to encourage more lending, more home building, more home ownership. It seemed like a good idea at the time, but it ignored the timeless role of greed in banking.

Rule Number One: Almost everything the government touches, it ruins in some fashion. At the very least, it increases its cost of operation.

Rule Number Two: The government’s primary function is the defense of the nation against attack. As Ronald Reagan said, “Nobody ever started a war with us because we were too strong.â€