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Old 03-09-2014, 04:37 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 3,901
The pathology of a bureacracy

Here is a great graph showing the development of a bureaucracy;
oftwominds-Charles Hugh Smith: Why Is Our Government (and Deep State) So Incompetent?
Any bureaucracy with an open-end life will continually attract non-productive parasites. Low level parasites fight for a bigger budget so they can hire more low level parasites. Having underlings justifies the original parasite a rise in pay and status. The bureaucracy is ever-increasing regardless of the efficacy or viability of the original mandate.

As the bureaucrats become ever more numerous, they can vote for ever-more generous (to them) taxes. This provides the non-producers with an ever increasing standard of living. This acts to starve the producing economy of necessary capital. It also burns up resources at a much higher rate.
Energy is the current focal point for resource depletion. The lower 48 states are in a mad rush to fracture out every drop of oil to hold down international prices. The lower 48 states are OUT of cheap oil. Our economy was built on cheap oil.

The cause of the 'great recession', starting in 2007/2008, was the fact that the world hit peak cheap oil on or about 2004. Obviously, oil production, counting all liquids produced, has increased since then, but only because sustained high oil prices have allowed more expensive oil to come to market.

Starting in the 1970's, in the early 80's, in 1991, and again in 2000, each and every time the price of oil exceeded $30/bbl the USA economy dipped into recession. Now it is over $100/bbl. How can the economy be growing? Answer: it isn't. If cpi inflation was measured the same way it was measured prior to 1980, it would show that prices are going up 9%/year. (see shadowstats)

If you plug the 9% inflation number into the GDP calculations, you will see that we never came out of the 'great recession'. It is quite obvious that we haven't come out of the great recession, because the percent of adult Americans with a full time job is at a multi decade low.

There is no amount of economic fine tuning that can maintain our standard of living, since it was based on cheap oil. That no longer exists, so our standard of living must drop. Switching from easy credit to tight credit, or budget deficits to austerity won't alter these facts. We can adopt Austrian Economics until we are blue in the face, (probably should do this anyway) but it won't find or produce a single barrel of cheap oil. The cheap oil has been found, produced, and burned.

Fracking is a "hail Mary" to maintain a high standard of living for multitudes of non-producers. 53% of Americans rely on a check from GOV. In truth, a big percentage of non-producers are in that position because of automation and outsourcing. GOV was previously able to absorb many of these people into it's gargantuan bureaucracy but, times have changed.

Currency printing has caused price inflation. Seen from street level, this is just a cut in wages. GOV bureaucrats don't want to diminish their standard of living and have found it necessary to steal your savings. Various States have started robbing pension funds.
8 Real World Events That Prove Your Money Isn't Safe In Europe (Or Anywhere)
Jeffery Berwick expects pension funds to be gone in about 4 years.

In a rare moment of truth, Bush admitted that the social security fund was empty except for IOUs from Treasury. Forbes shows the same thing;
What Happened to the $2.6 Trillion Social Security Trust Fund? - Forbes
These IOUs are non-negotiable. One could guess that American workers will pay taxes to treasury and treasury will replace the missing funds. We get to pay twice.

There will be no economic recovery while energy prices are rising. The general rule of thumb is that every one-cent increase in gas prices takes $1 billion away from the rest of the economy.
Our resources and our fortunes are ever diminishing. Our burden of non-producers is ever increasing. The parasites steal our savings to keep the standard of living from falling.
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