The New Socialist-Fascist Global Capitalism

I’m not sure the title reads right but I think it important to see the dangers in what is happening and what is being proposed by our fearless leaders.

The great ones are playing chicken with the world economy and our retirement as they conduct the biggest social experiment in history.

But it is not all about socialism. There is fascism and The Collapse of Capitalism as we knew itcapitalism too.

You’d have to be stupid to believe that any other system than capitalism can create long term wealth. Forget the Wall Street Investment Bankers. They are not capitalists. They are gamblers of other people’s private money and knew they could take extraordinary risks to make themselves wealthy and then get the government to use taxpayer money to bailout their companies.

Either way you pay for their gambling losses with your retirement funds or keeping their companies viable with your taxes.

The Government has to tread a fine line through this credit crisis to try to please everyone.

The Socialist Agenda

Most of the western governments have decided on massive stimulus packages designed to prop up their economies. The theory is if they can do that until we all start spending again, all will be well.

The problem is there was massive leverage by everyone and this is now being unwound. So the economies are shrinking. As they shrink governments will have to pump more money into their economies to give the impression all is well.

The only thing they can hope to do with the stimulus packages is slow down the unwinding of the economic bubble.

These stimulus packages are socialist in nature as they are aimed at the public, and at trying to maintain jobs and keep the people “happy”. The one thing governments do not want is several million people out-of-work and very upset wandering around their cities looking for someone to blame – like bankers or worse still politicians. So $900 here on $1,500 there and some bridges, some insulation and promotion of the Green society should keep the masses at bay for a while.

The Fascist Takeover (This site is very up front and may offend politically)

The TARP and the Auto Bailouts are not to protect the public. They are there to try and maintain the status quo. The big and powerful who have relied on government favours and bailouts for years now need their help again. In return government reps can expect to be supported in their bids to stay in power. AIG bonuses – need I say more.

All these bailout have resulted in the government dictating to large corporations what they should be doing. They have not taken ownership yet which would be socialism. They want the executives and the boards to still run them but under government direction. That’s fascism.

All Developed World Governments understand the roll capitalism has played in providing a tax base for them to work their political agendas be they conservative or liberal (labour).

So they desperately want to keep capitalism but using good sounding phrases tell us capitalism is a wild animal and must be tamed.

Who are the Capitalist?

If you are middle class or run a small business then you are a capitalist whether you like it or not. Most people seem ashamed of being called a capitalist these days. So let’s define a capitalist. My definition is a capitalist is someone who exchanges goods or services of value for other goods or services of value or medium of exchange without coercion or external force, so that both parties benefit for the exchange.

If you are a small business man you cannot force someone to buy your goods or services. Only governments can and do do that.

If you are a middle class member of society working for a private company or even a government enterprise you offer your service in exchange for money. In “free society” you are not forced to work for a company or the government and you get paid for the work you do.

The other class of capitalists are the very rich who create wealth using their own money and not government handouts. These people have a power most of us don’t have. In a free society they can withdraw their capital. This is what many have done for now.

So that leaves only the middle classes and the small businesses to pay for the social stimulus package and the fascist corporate bailouts.

How will this financial crisis end?

The stimulus packages and the bailouts may sustain the economy until it can recover under its own steam. But if not ….

It will depend on how resilient, patient and cashed up the middle classes and small businesses are. You see in the US alone 40% of the population pay no personal tax. they have no stake in the welfare of the economy. They are takers from and not givers to society.

The longer this financial crisis go on, the more middle class people are going to either lose their job or give up the fight. Many small businesses may go out of business. They will all have just three choices open to them.

  • Live off any savings they have hopefully until things improve.
  • Join the welfare recipients and get government handouts if they have no savings.
  • Join the government in a job created using their taxes.

The more of them that become welfare recipients or take government jobs the less are able to be taxed by the government to continue its social policies and corporate bailout.

Taxes will be increased to make up the loss. It is all about buying time to see if the economy can recover. If it still is in the doldrums levies and charges will be raised. Prices will be fixed. Small business will be forced to maintain it’s wages so the tax take is maintained. (This things were actually done in the Great Depression)

If the economy is still stuck in the mud and governments believe they cannot politically increase taxes any more they will look at other ways to get the money for their huge spending and lending programs. They are already trying to borrow more money than the world has got to lend right now. The rest of the money they are printing.

If that doesn’t work you can be sure they will look in every nook and cranny of the economy for the money they need. This could include taking over  the private retirement funds like the Argentinean government has done to shore up its finances.

It will be a matter of who will blink first – the politicians or the economy.

The sad thing is the worse the economy gets the more people will rely on government and the less likely democratically elected governments will be changed and then take  the hard decisions that should have been taken in the first place.

Tax-payer funded bailouts destroy the financial wealth of the people. Huge social programs destroy the self respect of the people. Destroy both and you have a compliant people.

Politicians blame capitalism for all this destruction. But social fascist capitalism which includes force, takeover and coercion for the public good is not capitalism.

Now they want to take their corrupt version of capitalism global. Go figure 🙁

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