The Definition of Fiscal Insanity

Everybody knows that the boat is leaking

Everybody knows the captain lied

Everybody got this broken feeling

Like their father or their dog just died

Everybody talking to their pockets

Everybody wants a box of chocolates

And a long-stemmed rose

Everybody knows

‘Everybody Knows’ by Leonard Cohen

Politics. Politics. Politics.

Surprise, surprise…Congress has found a way to keep spending money it doesn’t have on investments we don’t need. Here’s Politico:

The Senate passed a stopgap spending bill Thursday afternoon that would prevent a government shutdown come midnight and punt the funding cliff into early December.

Last week we looked at how politics took over the COVID-19 debate; at this stage, neither real health issues nor ‘the science’ have much to do with it.

We saw how the debt ceiling fight is another example of pure politics too.

With perhaps one lonely exception — Democrat Senator Joe Manchin from West Virginia — no one seems to care about the nation’s finances…or whether the ‘investments’ will really pay off (everybody knows they won’t). Here’s Senator Manchin:

I can’t support $3.5 trillion more in spending when we have already spent $5.4 trillion since last March. At some point, all of us, regardless of party, must ask the simple question — how much is enough?

What I have made clear to the President and Democratic leaders is that spending trillions more on new and expanded government programs, when we can’t even pay for the essential social programs, like Social Security and Medicare, is the definition of fiscal insanity.

The definition of insanity? Not exactly. It makes perfect sense.

Real agenda

Politics is the dishonest way to get your box of chocolates. You just take it from someone else…and call it ‘government’.

There’s nothing insane about it. It’s just theft. Everybody knows it.

Ultimately, both parties have more in common with each other than with the public. They both want more power and money. They aim to get it from you.

The battle between Republicans and Democrats is just a way of determining what gets taken from whom…and into whose pockets go the stolen goods.

The Democrats’ big spending initiatives — US$1.2 trillion for infrastructure…US$3.5 trillion (most likely ballooning to US$5.5 trillion over 10 years) for ‘human infrastructure’ — are just ways to payoff left-leaning cronies, the rich, Democratic campaign donors, apparatchiks, nomenclatura, and other unworthies.

This transfer of wealth is the real agenda of both parties. Not health. Not finance. Nor even national security.

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How to get a raise in Washington

If any proof of that accusation were needed, we have the latest Pentagon budget as an illustration. Rather than concern itself with protecting the nation, the generals are mostly just ‘talking to their pockets’.

Of all the government’s Elite Insiders, the Pentagon, perhaps more than any other government agency, has been corrupted by too much power and too much money for way too long.

Stumbling over its expensive weapons…led by incompetents…blinded by politics…larded up with excess of every kind — the Pentagon is probably more of a source of danger to the nation than of security.

Its most recent enemy had no air force, no navy, no tanks, no military academies, no artillery support, almost no logistical support…it was nothing more than a bunch of ill-trained ‘insurgents’ riding in the back of Toyota pickup trucks, spending maybe a penny for every US$100 US forces spent.

Nevertheless, the Pentagon waged a costly war for two decades…and still managed to lose…

Then it went to Congress and got a raise! Here’s The New York Times last month with the details:

Instead, the Democratic-controlled Congress is on track to increase the military budget by roughly $24 billion more than what President Biden had requested, after over a dozen moderate Democrats on the House Armed Services Committee joined Republicans in pushing through a measure to substantially raise the cost of the annual defense policy bill.

The amendment, spearheaded by Representative Mike D. Rogers of Alabama, the top Republican on the committee, would bring the total military spending budget to $740 billion, with nearly half of the additional funding earmarked to procure new ships, aircraft, and combat vehicles as well as pouring money into the development of emerging technologies and new military laboratories.

Big winners

Giving more money to the Pentagon — is that the definition of insanity?

Not at all. The US lost the war…but the military/industrial/elite complex — backed by both Republicans and Democrats — came out way ahead.

Richer sinecures for the generals. More profits for the ‘defence suppliers’. More campaign funds for the politicians who back the Pentagon.

But wait. We can still rely on our military when the real fighting starts, right?



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Bill Bonner,
For The Rum Rebellion

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Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries.

A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities.

Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally.

With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance.

Bill has been a weekly contributor to The Rum Rebellion.

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