P.J. O’Rourke on the economic consequences of government

“Government does not cause affluence. Citizens of totalitarian countries have plenty of government and nothing of anything else. “

— P. J. O’Rourke

[See I thought P.J. O’Rourke was this obnoxious Trump hating redhead with a beard. Brent Bozell? This guy looks like an intelligent and rational person. I was wrong, he’s just another Trump hater.]

This quote in one sentence says everything that is wrong with the typical American’s way of thinking: The government doesn’t make you rich and the government doesn’t “solve” problems. Something so basic, something so well understood by our founders and by our founding documents. Where did that understanding go? How did we get so stupid? Politicians are work averse, they are incapable of accomplishing anything productive.

[People will never figure it out, but Republicans are the Washington Generals (the Harlem Globetrotter’s opponent). Their role is to be this strawman opponent that the Democrats can rail against and point to, then lose. I can name you Democrat victories going back to 1910 (gun control, the Federal Reserve, The New Deal, Great Society, the income tax…), but I can’t name you 1 Republican victory. The Republican Party is designed to be a Blackhole, sucking up all conservative time, energy and money, while producing nothing. Freedom will live when the Republican Party dies. – me]

“All government, in its essence… is the implacable enemy of every industrious and well-disposed man.”

“All government, in its essence, is organized exploitation, and in virtually all of its existing forms it is the implacable enemy of every industrious and well-disposed man.”

H. L. Mencken (1880-1956) American Journalist, Editor, Essayist, Linguist, Lexicographer, and Critic
http://libertytree.ca/quotes/H..L..Mencken.Quote.80FE


“There are, besides, eternal truths, such as Freedom, Justice, etc., that are common to all states of society. But Communism abolishes eternal truths, it abolishes all religion, and all morality, instead of constituting them on a new basis; it therefore acts in contradiction to all past historical experience.”

— Karl Marx (1818-1883)


“[T]he State’s criminality is nothing new and nothing to be wondered at. It began when the first predatory group of men clustered together and formed the State, and it will continue as long as the State exists in the world, because the State is fundamentally an anti-social institution, fundamentally criminal. The idea that the State originated to serve any kind of social purpose is completely unhistorical. It originated in conquest and confiscation — that is to say, in crime. It originated for the purpose of maintaining the division of society into an owning-and-exploiting class and a propertyless dependent class — that is, for a criminal purpose. No State known to history originated in any other manner, or for any other purpose. Like all predatory or parasitic institutions, its first instinct is that of self-preservation. All its enterprises are directed first towards preserving its own life, and, second, towards increasing its own power and enlarging the scope of its own activity. For the sake of this it will, and regularly does, commit any crime which circumstances make expedient.”

— Albert Jay Nock (1870-1945) American libertarian author, Georgist, The Criminality of the State, America Mercury Magazine, March, 1939

[Liberty Tree outdid themselves once again. 3 for 3. The proof of these 3 quotes exposing the reality of government is witnessed everyday around the world. The state of utter dysfunction cannot be denied. The unneeded misery. Its not conjecture, its observable. Yet here in America people in election years often speak of government as a “problem solver”. I immediately wonder, “What is it government ever ‘solved’?”]

Did you keep your powder dry?

Do you have liquidity? You may want some in 45 days. After totally missing the boat in 2001 and 2008, I am ready to sail this time. If only I knew then what I know now. In 2 weeks I should be rolled over from T Rowe Price to Vanguard. My ROTH should be well on the way to maximizing the 2020 allowance. Aside from a couple of thousand in stocks, the rest will be sitting in cash, in anticipation of the crash (see what I did there, ‘cash/crash’).

Look at the storm clouds we have on the horizon: COVID-19, a sitting President so hated that Bob Woodward’s book has revealed talks of a military coup, the election contest of said President that is guaranteed to be contested, another stimulus package that will completely deplete the lending reserves of this country (in addition to the unprecedented amounts already handed out this year), China’s military flexing it muscle in the Far East, its economic muscle here, and the fact that since June for the first time not all of our nation’s debt is being bought.

If there aren’t wild swings ahead for us in the market I will eat my proverbial hat. What I feel bad for is the people who will not be ready for this, and the mistakes that will be made. When the market loses say 65% of its value over a 2 week period, that is the time to go shopping. Regrettably, many people at or near retirement will panic and sell. People at or within a year of retirement should already have pulled their money out of the market.

For those people 5/10/15/20 years away from retirement, the best thing they could do is just what they’re doing, putting money in every 2 weeks just like they’ve been doing. If they can up the amount they’re putting in when the crash happens, that would be great too. If they want to go down to Coins Stamps ‘N’ Stuff on Hickman and buy a little gold and silver bullion, that’s not a bad idea either. I wouldn’t buy a whole lot, we’re at a market top. A little insurance wouldn’t hurt though, if in 3 years today’s prices seem cheap.

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