Tuesday, May 11, 2010

Using the Same Economic Recipe Means Getting the Same Tragic Results

by Paul Mladjenovic
Copyright 2010. Paul Mladjenovic. All rights reserved.

As we all watch from a distance, Greece is crumbling under the weight of its own spending and statist profligacy. It is important to highlight why Greece is where it is and what it means for the United States:

Greece is in chaos and collapse because in recent years…

• Its government grew too big
• Its public unions demanded more and more resources
• Its private sector was (and is) being taxed more and more
• The government’s deficit is rising and rising
• The deficits were financed by more and more debt
• Higher and higher taxes resulted in less and less tax revenue
• More demand and less supply meant rising prices for goods and services
• The symptoms become chaos, violence, bankruptcy and collapse.
• Reality arrived in 2010.


Now, what are we doing RIGHT NOW in the United States? What is happening for the good ol’ USA?

• Its government is growing too big
• Its public unions are demanding more and more resources
• Its private sector is currently being taxed more and more
• The government’s deficit is rising and rising
• The deficits are being financed by more and more debt
• Higher and higher taxes are resulting in less and less tax revenue
• More demand and less supply will mean rising prices for goods and services
• If we are not careful, we will have chaos, violence, bankruptcy and collapse.
• WHEN WILL REALITY ARRIVE? Stay tuned…it is coming soon.

As all of us watch the federal government spend trillions and forcing the private economy to shoulder more and more burden, the ultimate results will be tragic.

It is time for financial safety. The next issue of the Prosperity Alert will cover simple strategies that should be considered by all…whether you are an investor or not. Buying gold and silver bullion is just one step but all of us need to take more precautions. The picture is not just “financial”…it will be much more serious than mere investments or money.

Watching Greece is personally quite painful because it is nothing more than a re-hash of the same voodoo economics that has destroyed many countries throughout history…including the land of my birth, the former “socialist paradise” of communist Yugoslavia.

Please understand that the recipe for economic collapse really requires two basic ingredients; The economic philosophy of John Maynard Keynes coupled with a “generous helping” of aggressive statism. Statism can range from welfare statism to socialism and right on up to the “high-octane” statism of communism and fascism.

In many essays I have strongly recommended “limited government” because that is what makes sense to a healthy economy. Government…the embodiment of statism…is a tremendous burden on the economy and it must be limited because government does not produce anything…it is a voracious, coercive CONSUMER.


If America is to avert national chaos, it will have to change the recipe as soon as possible. That recipe must start first with debunking Keynesian economics and dramatically shrinking government.

… Before reality hits with a vengeance.