Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
In the same category

RIP: Our Expansionist Central State

IMG Auteur
Published : February 05th, 2013
549 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
FOLLOW : Housing Bubble
Category : Editorials

24hGold - RIP: Our Expansionis...

Like the sun coming up in the morning, Central State planning and expansion predictably leads to state spending exceeding the rate of the real growth of the state's economy. The US Central State has been no exception and has been relentlessly expanding faster than GDP since the 1950s with only two notable exceptions. The dot.com bubble in the late 90's and the housing bubble in the early to mid 2000s. These artificial bubbles were created by Monetary Malpractice aimed at creating desperately needed growth to support excessive spending and debt levels.

What historically kills the expansionist state beast, is when debt reaches the critical point of debt saturation. This is the point where government borrowing is so pervasive that it forces total debt to grow to enable it to leverage ever smaller growth levels of an economy captured by a debt stranglehold brought on by the expansionist central state. The structural imbalance of state expenditures and revenue leads to structural deficits. This is the situation the US presently finds itself in, and is to be fully expected, when the central state is allowed to assume a larger expansionist role. Like a cancer it will insidiously and relentlessly expand unless operated on. The sooner the operation the better the chance of survival.

24hGold - RIP: Our Expansionis...

Unfortunately, we are in denial, as the cancer grows and the quack doctors suggest more spending. Similar to 'blood letting' by medieval doctors, the diagnosis is flawed and will only accelerate the demise of the naive and dependent patient.


The Obsolete Concept of 'Central State'

The whole notion of a central state is now obsolete. Technology now makes this possible and growing social unrest and a Crisis of Trust will soon demand it. We can fully expect those with political power and its need for control to restrict this change in every manner possible. The lifecycle of the expansionist central state is coming to a close for many natural reason. Some of these phenomenon include:

  • The notion of the NODE versus HUB,
  • The notion of HIERARCHICAL versus RELATIONAL,
  • The notion of TOP DOWN versus BOTTOM UP Revenue distribution,
  • The notion of SECURITY versus RISK


Security versus Innovative Risk Taking

What is often forgotten is that within a capitalist system and a free society, there is a balance of risk versus security. Risk cannot be eliminated; it can only be suppressed or transferred to others. If you want growth, you must reward risk and innovation and foster a culture that accepts failure and low-intensity disorder as the norm. The public cannot expect the false state promises of security without fully recognizing that it will kill risk taking, innovation and growth and foster the crony capitalism feeding off the less risky public trough. Expansionist central states ALWAYS make promises it has no ability to deliver on without effectively 'killing the golden goose'.

24hGold - RIP: Our Expansionis...

It must never be forgotten, that government by its nature is parasitic. It creates no wealth and lives off the wealth creation of others through its authoritarian powers to legally confiscate and seize. This is a fact, no matter how well intentions the public perceives the governments intentions to be.

"Many people want the government to protect the consumer. A much more urgent problem is to protect the consumer from the government".

Nobel Laureate in Economics, Milton Friedman


Companies Mentionned : Golden Goose |
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Mr. Long is a former senior group executive with IBM & Motorola, a principle in a high tech public start-up and founder of a private venture capital fund. He is presently involved in private equity placements internationally along with proprietary trading involving the development & application of Chaos Theory and Mandelbrot Generator algorithms.
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Something has Changed in Gold St...
14:42neville
No nothing strange has happened in GOLD stocks....absolutely nothing.....The fact of the matter is that you byrne have been playing the man and...
The Revisionist Theory and Histo...
05 Febovertheedge
"The key is in the hand of the U.S. government. It is the same key that was used to lockthe U.S. Mint to silver in 1873, and to gold sixty years la...
First Report since April, 2014
05 FebS W.
Here I was just 2 days ago thinking whatever happened to that evangelical silver guy. Low and behold up he springs, like some spirit from the g...
LBMA Silver “Price”: A Perfect S...
03 FebS W.
There is no doubt that the Comex can be used as a casino for those who want to trade Silver up/or down or maybe some just wish to take a small punt...
LBMA Silver “Price”: A Perfect S...
30 JanOzSILV1
Bron refuses to EVER admit this market is a Casino and the disconnect between Paper and Physical is a big clue to this
LBMA Silver “Price”: A Perfect S...
30 JanS W.
Usually I enjoy Bron's take on things,but to be perfectly honest, I can't understand 95% of what he his on about here. I get the feeling that h...
ANOTHER NAIL IN THE U.S. EMPIRE ...
30 JanDemosthenes0
Very naive and pretentious article! The author thinks he knows everything and yet knows next to nothing. Shale gas producers are neither stupid n...
LBMA Silver “Price”: A Perfect S...
30 JanOzSILV1
I'd say that this was More than a Farce , 5,000 silver futures contracts within a minute or two !!!!! ( some charts indicate NO increase in Vo...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Lara Expl.(Cu-Zn-Au)LRA.V
Revised Resource Estimate Report Filed for Maravaia Copper Gold Deposit
CA$ 0.34+1.47%Trend Power :
Corporate news
Black HillsBKH
Black Hills reports 4Q loss
US$ 50.90-0.59%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Kinder Morgan(Oil)KMP
Midstream Companies Were above the 20-Day Moving Averages
US$ 102.03+1.98%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
Gasoline Inventories Rose Last Week despite Fall in Production
US$ 24.85-6.44%Trend Power :
Corporate news
United States Steel(Fe-Sn)X
U.S. Steel (X) States Ratification of Labor Agreements
US$ 7.94-3.64%Trend Power :
Corporate news
Black HillsBKH
4:34 pm Black Hills Corp beats by $0.04, misses on revs; guides FY16 EPS below consensus
US$ 50.90-0.59%Trend Power :
Corporate news
Black HillsBKH
Black Hills Corp. Reports 2015 Fourth Quarter and Full Year Results
US$ 50.90-0.59%Trend Power :
Corporate news
Transcanada PipelinesTRP.TO
TransCanada to Sign Substantial Agreement to Benefit Québec Economy
CA$ 48.65+0.16%Trend Power :
Corporate news
Devon Energy(Ngas-Oil)DVN
4Q15 Crude Oil Prices: Fallout for the Energy Sector and SPY
US$ 24.85-6.44%Trend Power :
Corporate news
Comments closed