Political Paradigms are False Dichotomies

Political paradigms are simply dichotomies meant to categorize people into groups according to political or economic thought.  Most people, including myself, have fallen into this trap of elevating individuals into groups.  Political strategies are designed to leverage the group or herd mentality.  These strategies are powerful because people self-identify with others and the group reaffirms the mentality of its members.

Some of the more common paradigms are; left/right, liberal/conservative, progressive/conservative, big government/capitalism, democrat/republican.   Class, race, and gender discussions are framed similarly.  The one paradigm that is most prevalent this year is Romney vs. Obama.  The Anyone But Obama (ABO) or just get my guy mentality is common place.  Both candidates are presented as political opposites on a variety of issues.  However, one candidate is a Marxist/socialist presented as a centrist while the other is a centrist presented as a conservative.

Is there a really a difference between Romney and Obama.?

The answer is both yes and no.  Let me explain by looking at a short-term and long-term view.

Short-Term View

In the short-term government policies may – and I stress may – make some minor differences.  There may be reduced spending and lower annual deficits.  Perhaps taxes will remain constant or lower than today’s level.  Perhaps ObamaCare will be repealed.  Perhaps more oil exploration and drilling will occur in or around the U.S.  Perhaps there may be less regulations under Romney than Obama.  Perhaps the next president will appoint one or more Supreme Court justices.  I understand the logic and the argument.

Nearly every policy issue is presented as a dichotomy which is really a false set of choices.  Health care is presented as throw granny off a cliff or support government health care.  The government surveillance state is presented as we are doing this to keep you safe or terrorists will kill you.  Spending is presented as starving the children or increase spending, deficits, and the national debt.  These are false choices.  It is a form of propaganda.  It is meant to control your thoughts, invoke emotion rather than rational thought, and to submit to government authority.

Does the possibility of short term gains outweigh the long-term implications?  Ultimately, whether you are right or wrong on the short-term view is irrelevant.  A brief reprisal under a Romney presidency pales in comparison to the long-term implications.

Long-Term View

Romney and Obama, Democrats and Republicans ignore the 400 pound gorilla in the room.  The issue transcends this presidential election.  Our current monetary and banking system is in the winter of its life.  The dollar’s demise is inevitable under the current monetary system.  Our productive life is spent earning Federal Reserve Notes (a.k.a. dollars) which have no intrinsic value, are used to buy things of value, and any excess is our savings/wealth.

The national debt and the unfunded liabilities are also denominated in very same currency that we earn and save.  Economic growth is no longer predicated upon production of real goods and services.  Investment in productive economic activities is no longer funded through loaning profits or savings; it is done by issuing debt.  Economic growth depends upon credit expansion by the consumer and the government.   The central bankers print money to feed government’s insatiable appetite for deficit spending.  The base money supply is expanded without a corresponding increase in real goods and services which diminishes purchasing power due to inflation.  The immediate effect is higher prices for goods and services.  The longer term effect is the erosion of savings and wealth as purchasing power is reduced.

The national debt is nearly 16 trillion dollars.  The unfunded liabilities are estimated in the range of 70 trillion dollars on the low end to 200 trillion dollars on the high end.  Through the Ponzi schemes — better known as Social Security and Medicare — millions of Americans are dependent on the government for monthly checks and medical care while forcing younger people to contribute to a system doomed to implode.

Taxes do not provide sufficient revenues to the government to balance the current deficits.  If you increased the tax rate on all income above $250,000 by 20% it would result in an additional $300 billion in revenue.  A corresponding 20% reduction in spending would leave the government with a deficit of $400-$500 billion.  The national debt continues to grow.  By 2020, entitlement spending forecasts will exceed 4 trillion dollars a year.

The central bankers zero interest rate policy exacerbates the problem.  First, it sends a signal to politicians that deficit spending will be cheap because interest rates are suppressed.  In other words, the central bankers control the cost of money.  Secondly, it punishes savers because the interest rate on savings is below 1%.  Once real inflation is factored in anyone with money in a savings account is losing 4-6% annually in real terms.  As a result of this policy savers look to alternatives such as equity and bond markets, commodities, futures markets, precious metals, etc.  For most this means the casino known as the stock market.  Moreover, if interest rates returned to their historical average of 5-6% the interest payments on the national debt would quadruple from $250 billion annually to $1 trillion annually.

This is a losing proposition to the average person.  If you spend everything you earn you have no savings, no store of wealth.  You are dependent upon the government in your older years for social security and Medicare (which means you are dependent upon younger people working and having their money confiscated to continue the Ponzi).  If you are able to save you are punished due to the central bank’s zero interest rate policy or you must find alternative investments that carry more risk.  If you have managed to save money in some manner the purchasing power is eroded because the central bank prints money causing inflation.  For nearly every American there is not a viable alternative to escape the government and central banker monetary and currency death trap.

This brings me back to the dichotomies presented through political paradigms.  Both Republicans and Democrats perpetuate these paradigms.  They are false paradigms.  The political parties, the main stream media, and many of you shoulder responsibility for perpetuating them.  This is not a right vs. left, liberal vs. conservative, or democrat vs. republican dichotomy.

It is a dichotomy of liberty vs. slavery, freedom vs. oppression, natural rights vs. government granted rights, citizens vs. subjects, servants vs. rulers, free markets vs. centrally planned economy, consent of the governed vs. tyranny, the rule of law vs. the rule of man, the right to self-determination vs. arbitrary power, and hard money vs. fiat money.  These are the real paradigms that matter and nobody wants to discuss them.

If past is prologue, do you believe a Romney or an Obama presidency will address this issue?  If – and that’s a big if – you are better off under Romney, do you believe the issue with our currency, monetary system, national debt, and unfunded liabilities will be addressed?  Pay no attention to the 400lb. gorilla in the room.  Move along.

Conclusion

In the short-term view perhaps some things may be better.  In the long-term view, there is no difference between Romney and Obama as neither has any intention to stand up to the 400lb. gorilla in the room.  Nobody wants to face reality and swallow the bitter pill.  Neither candidate is the answer.  Neither the candidates nor the American people have the will to swallow the bitter pill.  Instead, the fraudulent, corrupt system will be maintained and extended until it collapses.  Those dependent on government programs will demand their share right up to the very end.  The benefit pie will shrink and the dependents will fight over the few remaining crumbs while sacrificing anything and everything.  Most people will use the customary political paradigms to blame the other side.

This is not how free people live.  The issue transcends political parties and traditional left/right paradigms.

This story reads like Dickens.  “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to heaven, we were all going direct the other way.”

We the people need to understand what is transpiring before our very eyes.  We are living through the destruction of our currency, the monetary system, and the economy.  Conventional wisdom and false paradigms must be discarded.

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