SOCIALIST NIGHTMAREhttp://www.investmentrarities.com
By James R. Cook

The left has always proclaimed that the coming of Socialism was inevitable. What they fail to understand is that even a small amount of socialism undermines the performance of a free market economy. A much larger dose of socialism as we have experienced over the past eight decades in America has a far more detrimental impact. What the socialists wanted was to take money from those who earned it and redistribute it in the name of social justice. They have succeeded. Public housing was a socialist ideal. Quasi-government agencies like Fannie Mae and Freddie Mac that supposedly guaranteed loans for people with poor credit was another socialist darling. Government insurance, guarantees and subsidies are all socialistic market interventions.

Socialist policies are precisely why we are in the current economic pickle. The more government we have, the worse our economic condition. America became great because of large-scale savings, capital accumulation and investment. Deficit spending necessary to facilitate government subsidies destroys this capital. Monetary expansion for purposes of social engineering and economic stimulus, squanders scarce factors of production through malinvestment and overconsumption. It's why we have a credit crunch. It leads to a weak economy, high unemployment, inflation, over-indebted consumers, faltering production and loss of market share to overseas competitors.

Today's political candidates and bureaucrats have a laundry list of new chores for the government. It's tiresome to hear this endless litany of social schemes - healthcare, education, energy subsidies, help for the middle class - blah, blah, blah. What's overlooked is the cost. There's no deep well of perpetual funding for subsidizing every human heartache. We have run out of money. Unfortunately, that doesn't slow the politicians. We simply create more from thin air. The cure for the current financial mess is a shocking monetary expansion. It's always the same solution, inflate our way out. This ruins the value of the money in existence and threatens the viability of the dollar. Don't ignore the possibility of hyperinflation at some point in the future. Socialism ruins everything it touches, including the money.

Both major political parties in America are more socialistic than capitalistic. Both candidates endorse socialistic schemes (one more than the other). America has a so-called mixed economy. That's a nice way of describing the transition from capitalism to socialism. The left wing in America calls the tune. We are adopting their agenda step by step. Despite the fact that government is wasteful and incompetent, we are getting more of it.

Apparently the majority of our citizens want bigger government, endless free money and more socialist schemes. Once the majority begins to feed at the public trough you can kiss your country goodbye. They will vote to take the money from those who earn it and pass it out to those who don't. This failed experiment has ruined other countries. Anticipate a sinking economy, punishing taxes, a falling dollar and severe inflation.

We may crash now or we may crash later, but make no mistake about it, the adoption of this much socialism mandates failure. No nation can afford what the left wants to accomplish. Some day the subsidy checks are going to bounce, the entrepreneurs are going elsewhere and the immigrants will leave. That's what socialism does. It ruins a country. Worst of all, the socialists are likely going to be in control. That means the cure for poisoning this great nation will be more poison. Weep for us.