Those of you old enough to remember the Cold War may remember something called the Brezhnev Doctrine. This was the rule concocted by the Soviet tyrants that basically said a nation could never regain freedom once it fell under communist rule.
In my simple way of looking at such matters, this rule translated into: “What’s mine is mine, what’s yours is negotiable.”
We have a somewhat similar situation with American fiscal policy. The proponents of bigger government have openly stated that their top goal – both from a policy perspective and political perspective – is higher taxes.
But what they haven’t told us is that there is no limit on the amount of additional revenue they want to confiscate from people in the productive sector of the economy.
In other words, “What’s yours is yours until they decide to grab more.”
So even though President Obama just got his class-warfare tax increase on the so-called rich (as well as a big tax hike on all American workers), is seems all that did is whet his appetite for even more of our money.
Here’s the key excerpt from The Hill.
Gee, what a surprise. It appears you don’t cure an alcoholic by giving him more to drink. Likewise, you don’t rein in the spending demands of the political class by giving them more revenue.
Hussman's Open Letter to the Fed; The Problem with Bubbles; Textbook Pre-Crash Bubble; Reflections on Not Chasing Bubbles; Integrity vs. Respect | Mike Shedlock