John Ransom

As the worldwide federalization of everything from Cypriot banks accounts to morning after pills continues to sweep across the globe, I’m reminded of a conversation I had with a former general officer.

In 2007, as we talked about what went wrong in Iraq, he told me: “We had a plan to invade Iraq. They didn’t use it. It was almost as if they purposefully screwed it up.”

His actual language was stronger, but so it went.

I’ve pondered that conversation since then, because the crises that are coming from both the Left and the Right all over the world seem purposeful to me.  They didn’t start with the Iraq War or end with the housing bubble. And they continue today in almost everything that government does from France to our own federal halls of “justice”.

Whether its handguns or healthcare or housing, everything needs immediate, dire and direct action from the government say government activists- activists who are disguised as policy experts. It’s as if the world only existed because these government policy experts intervened in the Big Bang, creation and the evolution thereto.

Three years into the experiment in national healthcare, before the program is even implemented, Obamacare is already in crisis. Costs are going up, not down. Not everyone will be covered. Private insurance is on its way to extinction. But hey, you’ll still get to pick you own doctor.

Oh, wait: actually no, you won’t. He quit the medical field.

“Six in 10 physicians say that it is likely that many physicians will retire earlier than planned in the next one to three years,” says Deloitte’s 2013 survey of physicians. “This perception is fairly uniform among all physicians, irrespective of age, gender, or medical specialty. “   

It’s almost as if the experts purposefully messed up nationalized healthcare- wink, wink, wonk.

The same is true with monetary policy. We have records amount of liquidity. What we don’t have is monetary velocity. According to the Federal Reserve, the velocity of money is making all-time lows just at time when confidence in our political betters in going lower too.

Coincidence?

Injecting more liquidity won’t make dollars travel through are economy at a more rapid rate. It won’t replace confidence in a political system that can’t get the right result.       

We have an economic system that produces record corporate profits, record stock market returns, record oil prices, but can’t produce jobs or wages.


John Ransom

John Ransom is the Finance Editor for Townhall Finance.
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