Listening to Mark Levin on the radio on Thursday, he was discussing the Obama administration’s predations upon our country, and all of the policies Obama has established that intentionally undermine the United States. He wanted a new word to describe what Obama is doing, but he settled on an old one, and it’s close, but it isn’t quite right: De-Industrialization. Far be it from me to quibble over terminology with the brilliant and accomplished Mark Levin, who has an audience that spans the nation, and with the Internet, really the entire English-speaking world. He’s so frequently right, and so unfailingly prescient that I hesitate to offer him a ‘correction,’ but in this case, it’s so important that I believe I must, because as Sarah Palin pointed out Thursday in a Facebook note, Dr. Levin has done more to enlighten more people on the roots of our national disorder than any other person in our culture at present.
I feel it is important enough to risk his ire, and those of his many fans, and followers, some of whom also read this blog. What Barack Obama is doing is much more fundamental to our national survival than “de-Industrialization” might indicate. If it were that, we could recover in a generation, but what Obama is doing threatens to undermine our nation for all times, and as Dr. Levin suspected, the word he seeks already exists, and it’s much more dire than you might imagine: Barack Obama is De-Capitalizing the United States. It’s been the solitary goal of the left for a long time, and it’s Barack Obama’s method of culturally, financially, and materially destroying America.
How important is capital to a capitalist country? It is everything we need, not merely to recover our economy, but to fuel it for generations, perhaps in perpetuity. Capital helps establish even our moral basis, and undermining that basis leaves us to lie in supine servitude to whatever demagogue happens along. Stealing America’s capital will crush the country, and remove from it the ability to recover, not only in the next decade or generation, but possibly ever. Most people think of capital as money, and money is capital, but it’s not the only form, and not all money is capital in the most important sense. Depending on how money is used, it can be capital, and that is surely an important part of the story you must understand to see not only why my term is the correct one, but also in order to see why Barack Obama is far worse, and far more dangerous than any of you may have imagined.
While others have been focused almost solely on the Republican horse-race, I have been covering the twists and turns of our dire national financial circumstances, and I have done so for a reason: You must know what is being done, and how, if you’re to understand the threat we now face. Our capital is being strip-mined from this nation in systematic fashion, and that which remains is being systematically devalued. Let me explain how this is being done, starting with how our cash is being devalued.
First, you must understand our monetary system, and you must know that in order to devalue our money, all you need to do is create more of it than growth in our Gross Domestic Product(GDP) justifies. Ben Bernanke has been complying with that plan, by creating more money out of nothing in order to lend it to many institutions, including primarily the US Treasury, but also to all of those banks that were “too big to fail” as well as Europe’s ailing financial sector in order to temporarily prop them up. Governor Palin warned us about this in late 2010, as the Federal Reserve instituted QE2(Quantitative Easing round 2) that is really just a fancy title for more old-fashioned money-printing, now carried out primarily in digital form.
The more the Federal Reserve lends out of thin air, the less all previous dollars are worth, provided there’s no corresponding growth in production and wealth in the total system. If production and wealth grows by some minor amount, but the printing(or digitizing) of money exceeds that amount, each additional dollar devalues all the rest. Put another way, if you imagine the wealth of the nation as a giant pie, each time we print more money without growing the pie, what happens is the same as re-dividing the pie by the additional number of dollars. What this means is that each slice shrinks, but since we’re talking about money, the medium by which we exchange goods and services, what it means is that each slice – each dollar – falls in value versus those goods and services. You can buy less with the same number of dollars, or put another way, it takes more of your dollars to buy the same goods. As Sarah Palin predicted nearly eighteen months ago, we have seen the prices of energy and food skyrocket.
You might say that this is all well and good, but Ben Bernanke – not Barack Obama – runs the Federal Reserve. I agree, but let me tell you that Obama’s fiscal policies are the impetus for much of the money-printing. Put another way, Barack Obama’s outrageous spending has accounted for four trillion dollars or more of all this money-printing madness. This is because money isn’t printed and set on a shelf. Instead, it is loaned into existence. Once you realize this, you understand that without corresponding economic growth, this is merely funny money that is tantamount to counterfeiting. Each time they devalue our currency by this procedure, your existing wealth is being stolen by some incremental amount. That’s the real picture, but sadly, it doesn’t stop there.
Are you paying more for fuel? To quote my favorite politician, “You betcha!” Food? “Ditto!” In fact, prices of almost everything is creeping slowly upward. Part of this is due to the re-division of the pie, as described above, but it’s also a result of something else: The United States Federal government is spending more on redistributive programs than ever in history, and it now spends monies equivalent to 25% of the GDP. Those dollars, poured into these redistributive programs, are now competing with your hard-earned dollars in the marketplace for goods and services. When more people arrive in the market with dollars with which to demand more of a thing, but you’re not producing substantially more of it, either the prices will rise in response to the quantity demanded, or somebody else will need to supply the goods from some other place.
This results in an out-flow of cash. It’s devalued cash, but it’s still landing in China and India, and anywhere else with which we do substantial commerce. Some of that cash comes back in trade, but some of it does not. While in ordinary times, I am not so concerned about the balance of trade, under this system at present, we are bleeding wealth and redistributing it globally. For what? The latest cellphone? Produced where? The latest television? Produced where? The simple fact is that while I support free trade, what I don’t support is free trade augmented by redistributive domestic programs. What this means is that when you go to work, you’re going to produce wealth, some of which will be stolen in the next round of money-printing, and redistributed to some who do not work, to be spent on merchandise you would not buy, and without which the purchasers could easily live, all while pouring your wealth in a chain from your pocket to government to your government-supported neighbor to some state venture in the Republic of China, mostly for transient, non-durable merchandise that only detracts from available capital.
At the same time all of this goes on, productive enterprises have less money from which to draw. Are you thinking of putting an addition on your home? First, you might have to borrow the money, and if you do, you’ll find you’re in tougher competition for those dollars, and since fewer contractors are now in existence, you’ll pay a premium for any work you hire out. Your money won’t go as far, because in construction, fuel is an important component from the production and transportation of raw materials, to the paychecks of workers who will now need more cash to make it to the job-site. As all of this happens, you may have found that you needed a home equity loan to pay for the new construction, but alas, this too will be more difficult, since the value of your home and property has likely fallen.
Add to this the insane policy of permitting JP Morgan Chase and Bank of America, among others, to move risky European derivatives into coverage by the FDIC. When the Euro-zone goes belly up, and don’t kid yourself, it will, you will be stuck with that bill too, and it may even collapse your currency altogether. You might have heard that Wall Street is doing well, but that’s an illusion too. Much of the growth on Wall Street has been financed with more loans from the Federal Reserve. Meanwhile, you’re struggling to fill your fuel-tank, and while you do, the foreign powers who control much of the globe’s oil supply are getting wealthy while Barack Obama denies pipelines and drilling all over the United States. He’s closing down coal-fired plants. He’s using the EPA to regulate energy producers out of existence. Slowly, we are being starved of the capital equipment with which we might hope to someday extract ourselves from this condition. When he closed down Gulf drilling in the wake of the Deepwater Horizon incident, and refused to reopen it despite a federal court ruling, those drilling rigs and platforms left American waters on their way to places they can drill, like Brazil, where he sent billions of dollars to fund their oil industry, including Petrobras, in which his pal George Soros was a big investor. Those platforms and rigs won’t be back. You’ll need to raise the capital to build new ones.
Is your paycheck growing? A few may be, but most are not. In fact, with skyrocketing costs as your money is devalued, even those who’ve managed to scratch out minimal raises are finding their increases are in no way covering their expenses. With all this newly digitized and printed money, you’re not seeing anything but diminished value in your purchasing power. You have little money to save or invest, because it’s all going up in smoke to support your basic energy and food expenses. Any margin of error you may have had is now gone, and to do anything constructive, you’re having to borrow in some form. You might sooth yourself with the idea that at least you’re contributing to a 401K, or other retirement program at work, but how much of the value of those investments is based on the bubble-building all on the back of these borrowed bucks. They have the use of your slim capital at present, all on the promise that it’s a shelter. It could also be a trap.
What all of this does, taken together as a vast picture of our national despair, is to deprive the country of capital from the most fundamental level to the top of the financial food-chain. When, I repeat, when the Euro crashes, your dollar will follow along behind in short order. Your financial institutions will be wrecked, and you will find out that there is no such thing as “too big to fail.” When we are naked, starving, and unable to raise enough capital to fund the production of a pack of bubble-gum, you will see why this is more than mere de-industrialization. Barack Obama is hard about the chore of de-capitalizing America, undercutting its wealth, and its ability to produce more wealth, on which our lives all depend. The old saying is that “it takes money to make money,” and Barack Obama and his band of anti-capitalists know that this is true. To destroy America, and to destroy the capitalism that has powered it through generations of ever-growing government, one must take away that seed that lays its foundations anew in each successive generation: Capital.
Of course, not all capital is about money. Some economists count “human capital,” and here too, Obama is squandering a generation. Our schools have become mosh-pits of leftist indoctrination, and our colleges and universities are populated by students many of whom believe it is proper to lobby for free contraception. You see, capitalism requires a respect for what capital is in its naked essence: It is the motive power of all new wealth, but what they now teach the nation’s children is that “stuff” is just material that is owned as a matter of legalized oppression of those with less money. This undercuts the moral basis too, so that your human capital, your financial capital, and your moral capital are all being destroyed.
Barack Obama is literally an anti-capitalist, all the way to his core, and what he and his friends like George Soros do and have done in previous instances is to de-capitalize nations, and reduce them to stagnant, increasingly destitute corpses. America had been the greatest and freest nation on the planet, because for a long time, it came closest to the capitalist ideal. Slowly, for a century or more, we have been bleeding it dry. Republicans and Democrats have participated, and all of them under the label of “progressivism.” Mitt Romney would do little different, except perhaps to better manage the collapse. That won’t save us, and it can’t restore our country to its exceptional promise of years past. We now stand on a societal precipice and Barack Obama has arrived at just the right time in our history to oversee the commencement of the final de-capitalization of America, shoving us over into an abyss from which the nation may not emerge.
Dr. Levin, respectfully, that is the word you were seeking. The Left has known it and is practicing it with ardent fervor.