Twilight of the Gods

One of the quaint habits of modern American politics consists of enumeration of the vast Tax Savings of a proposed Tax Cut, while adding the substantive Cost of a Government program only as afterthought with a quick skip to alternate discussion. Democrats and Republicans are equally transparent in their discussions of Taxes, so it is immaterial to take Sides on the issue. The three elements which should be remembered in any Tax discussion: any benefit to Taxpayers in marginally very small, Most finding Tax replacement through Inflationary Income and marginal Tax increases elsewhere; Government programs start drafting budgetary funds from the first Day, generally with a huge Startup Cost; and both Tax increases and higher Budget deficits come immediately after national elections. The hubris expressed by Politicians on Tax and Spending policies stands as the greatest Bull spread in America; Corporate Executives and CPAs would be in Prison if they spouted such garbage, and most Americans would consider These to be the most powerful leadership in the Country.

Here is an example of the stretch of the Truth in the discussion of a Government program. The Federal government deplores the threat to Student loans, so it plans to purchase Student loans from the Private Sector. Get real!! Student loans are among the most difficult to collect upon; it being hard to draft funds when the Student remains unemployed–either in his chosen profession, or as an aproned Waiter. The Government would issue such loans itself, if it were worried about the provision of Cash to Students. They do not do this! They resort to buying bad debt from financial institutions, who feel the threat of unpaid Notes; it all a backroom deal made by Politicians with the Banks, to garner their support in the coming Elections; notice that all such Deals are brokered and implemented before the national elections, to preclude Politicians from authoring the same style promises issued to the Electorate.

Here is the Hook where Politicians and Economists hope to get the added fuel for the Economy. Every good Economist roundly criticizes the Farm programs, but this is the exact time for such Programs. DuPont reports a 6% increase in local Selling prices, and says it expects a 9% increase next year; not mentioning that the Pricing is averaged throughout World markets, and hoping that Everyone misses the 1% loss in overall volume. Most Farmers I talk to in the American Midwest state that Fertilizer and Seed Costs are up about 20%, and like Diesel, shows not Sign of slowing. The foundation prices for Agricultural Supply Products will be up 40% by next year, and American Consumer Retail pricing with not go down on Food products. The Hands-Off policy of the current Administration towards industrialized Agricultural Supply (who have adopted the pharmesuetical mode of operation) will destroy the integrity of millions of American Households, and generate intense Inflationary pressure. lgl