Tag Archives: fiscal policy

William Lind describes 2 visions of America’s future

Summary:  What will America look like in in 2025, after another decade of our long war? In the second of this series William Lind describes two scenarios, failed and successful responses to risks regarded as likely among paleoconservatives. Seeing visions of the future like this can help you decide how to vote in November 2016. Perhaps the fears of each group are what most clearly distinguishes Left and Right in America.

Coin Toss

 

Our future as two sides of the coin
By William S. Lind

 

The first toss of the coin: a dark vision

America’s “long war” continues to prove Sun Tzu correct: no nation ever benefits from a long war. From Afghanistan through Iraq to war with Iran (following Congress’s rejection of President Obama’s deal with Iran, which led to Iran building an atomic bomb, which led to an American attack), in Syria, and now in Saudi Arabia, America has failed to attain closure while spending itself into ruin. As I write in this year of 2025, the Federal debt is six times the GNP, revenues cover only 23% of federal expenditures, and it takes 25,000 dollars to buy one yuan {currency of China, now worth $0.16}. Almost half of the federal budget goes to paying interest on the debt. It is rumored the Estates General will soon be called, in the form of a Constitutional Convention.

In Washington, since the explosion of a suitcase nuke in Seattle on 25 December 2024, both political parties agree we must continue to fight. Although al Qaeda claimed credit for the Seattle bombing, American intelligence traced the origin of the plot to Saudi Arabia. This was no surprise; everyone had known for decades that most Sunni extremism had its roots in Saudi money. Previously, the United States had to pretend otherwise because of its dependence on Saudi oil. Now, with imported oil unaffordable, that was irrelevant.

Coin Toss: heads

The Saudi war is following the usual course. The initial American invasion, with three divisions, quickly captured Riyadh and destroyed the Saudi state. Fourth Generation war goes on in all the populated parts of Saudi Arabia — even the Shiites are fighting us, at the same time they fight the Sunnis — and jihadi volunteers pour in to defend Mecca and Medina, both of which U.S. troops occupied at the demand of our military commanders, who said they were being used as safe havens.

American air, drone and missile strikes hit daily throughout the Islamic Middle East and Southwest Asia. None of what we do appears to make any difference. Washington’s policy remains one of serial failure: when what we do fails in one venue, we go on to do the same thing somewhere else. Only complete financial ruin, which is rapidly approaching, appears likely to change anything.

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Updating the recession watch; & what might the government do to fight a slowdown?

Summary: The economic data continues to darken. Let’s review the situation — updating the recession watch — and guessing what might be the government’s response to a recession. It’s an era of new normals, so we should expect steps that would have been considered incredible or even mad a decade or two ago.  {1st of 2 posts today.}

“Toto, I’ve a feeling we’re not in Kansas any more. We must be over the rainbow!”
— Dorothy in “The Wizard of Oz”.

Economy

Contents

  1. The bad news
  2. Worse news
  3. The weak data
  4. What comes next?
  5. For More Information
  6. Perhaps a better world lies ahead

(1)  The bad news

The graph below gives an ugly forecast. But let’s keep this in context, especially now that the doomsters have discovered it. The value of the Atlanta Fed’s GDPnow forecast is its immediacy. They explain that it’s no more accurate than forecasts by economists or other models. Which is to say it’s a best guess made with limited information. Also, the Fed remains hopeful that Q1 is an aberration, so that 2015 has growth of 2.3% – 2.7%.

20150317 GDPnow forecast

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2015 might bring an end to the great age of experts’ experiments on us

Summary: Beam us down to Earth on 31 December 2015. What will we find? My guess is that the massive experiments now underway by experts will have borne fruit, and we’ll know if they were sweet or poisoned. Interesting times lie ahead, and none can say how they will end.

Crystal Ball

Contents

  1. The age of experts’ experiments on us
  2. Warnings of Climate Change
  3. Economics: monetary and fiscal magic
  4. For More Information

Photo from the Star Trek episode “Miri” – The landing party arrives in response to a distress call. Experts on the planet have run a massive experiment to produce a better world. Looks like it didn’t end well.

TOS: "Miri" - Landing Party

(1)  The age of experts’ experiments on us

The 21st century has seen some of the largest experiments ever by experts, different from the often-mad amateur experiments that shaped so much of human history (e.g., the French and Russian revolutions, the Fascist social “engineers” in the 1930s, the 1970s Khmer Rouge in Cambodia). Some have run to completion, such as the US military’s expeditions to Iraq and Afghanistan — using the techniques of COIN to defeat local insurgents and build new western-style nations (quite mad given the history of almost total failure since WWII by foreign armies fighting insurgents). Other and larger experiments continue running. Let’s look at two of the biggest.

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