In Fiscal Free-Fall

Debt,Democrats,Economy,Federal Reserve Bank,Republicans,Taxation


We’ve been in fiscal free-fall for a long time. Right now, we’re just trying to determine how to land, says Michael Maloney, founder of, on… RT. (Where else?) There is no way of avoiding the “fiscal cliff.” More pain now or a whole lot of if later.

I’ve categorized and transcribed Mr. Maloney below (not verbatim).

DEFICITS SPENDING & THE SHRUB. It all came to a head with Bush, as this column pointed out in … 2002 and 2003. Bush accelerated deficit spending, initiated the production known as the War on Terror, on Afghanistan, Iraq, Medicare Part D, etc. Genghis Bush set in motion the deficit-spending orgy, and the trajectory of government growth.

Government accounts for 50 percent of the economy, says Maloney, when you take into account the trickle down effect of deficit spending that must be sustained if the effect is to be sustained. All jobs created via deficit spending do not add value to the economy but drain energy from it.

The fiscal cliff and the wall of debt that accounts for it has been with us for … ever. Well, at least for a decade, starting with the rule of the Republican George Bush.

THE POLS VS. THE PAUL. Among Maloney’s pearls of wisdom: Ron Paul was the only candidate who understands economics. We run a popularity contest every 4 years, during which we elect telegenic empty suits, en masse, whom we send to D.C. to run the economy by taxing us and redistributing our wealth. These clowns know nothing about economics or the economic consequences of what they do.

MONETARY POLICY. We do not have a free-market economy, chiefly because the currency is manipulated: the quantity of money in the economy and the price of the currency (interest rates). Currency is 50 percent of every transaction. This portion is manipulated by a group of central planners who’re bereft of the information that the market holds.

TAXING THE RICH: GOLD FINGER OR STICKY FINGERS?. The 1 percent employ the 99 percent. What happens to money removed from its rightful owner? Take $1000 away from the producer. The sticky-fingered IRS employees get some of it. Some of the money sticks to Congress’ mitts; as members pass laws that redistribute it. But these are all “frictional jobs.” No new products or new services have been created that go directly into the economy.

MORE of Mr. Maloney, on RT.