by David Galland: Too
Much of a Good Thing Is Not a Good Thing
The human ape
has any number of qualities not often found in other species of
mammalia, including opposable thumbs and the ability to fashion
and use tools.
the list, I would add a tendency to form all manner of mental constructs
and to then act in accordance with those constructs, even when those
constructs have little or no connection to reality.
Thus, for instance,
I stride confidently onto the golf course with the firmly held conviction
that I am a solid striker when, in fact, on most days I am a wild-hitting
duffer of the lowest order.
But an over-elevated
opinion of ones golf game is harmless compared to some of
the delusions humans are capable of. For instance, the teenager
who becomes convinced that by blowing himself up in a crowd of innocents,
he is serving some sort of higher purpose
or that his reward
will be an eternity highlighted by bedding virgins.
A more widespread
delusion is a tendency to believe in the status quo. Simply, that
tomorrow will be roughly on par with today, a construct that extends
out as far as the minds eye can see.
construct is entirely understandable its this expectation
that things will be more or less constant that allows us to make
plans and take the steps necessary to execute those plans. In other
words, it is a lynchpin to human progress.
when the controlling force of the economy that sustains us in our
businesses and lifestyles is ever changeable and these days
that controlling force is the government sensible humans
become wary and start squirreling away nuts in preparation for an
uncertain future. This is, of course, not conducive to a vibrant
What will Team
Obama dream up next in their flailing attempts at reinvigorating
an economy that more than anything needs certainty? It is literally
anyones guess. Are we going all in on the whole carbon credit
thing, or is that now a passing fad? Will the Dodd-Frank Act, with
its 400+ new rules for financial institutions and everyday businesses,
such as automobile dealers who offer financing, help or hurt? Will
the government, having bailed out the big banks, now turn around
and sue them out of existence
or just until they squeal?
Is it any wonder
that the banks now have upwards of $1.6 trillion in reserves sitting
on the Feds balance sheet? Sure, they are earning a whopping
0.25% interest rate while taking no risk, as they would do if they
put the money out as loans to the public. But the real implication
at least to me is that they are keeping their capital
on hand against the uncertainty of future government action and
to deal with the hundreds of billions in toxic loans still on their
subset of the human herd has become brainwashed to the point of
delusion by a combination of state education, misinformed college
professors, mainstream media, religious leaders and high-talking
politicos into believing that they as individuals are little more
than pawns, knee-benders, set on this planet to follow a path proscribed
by the power elite.
As a consequence,
when social trials arise on that path, they look first to the government
for solutions. And they cling stubbornly to false beliefs, such
as the myth of anthropogenic global warming, even though the truth
of the situation would be readily apparent if they trusted in their
instincts and did some actual research.
And so it is
that while the world is dominated by the human ape, the species
is greatly hindered in its progress by stupid monkeys. Let anywhere
near the levers of power, it is a certainty these stupid monkeys
will start pulling madly, and keep pulling even as the machine begins
to shudder and smoke.
point, I would like to share with you a more sensible species
of simian, I am sure a few examples of stupid monkeys at
their dumb deeds; deeds that can only make one shake ones
head in dismay.
monkeys at the Justice Department decided to block a merger between
AT&T and T-Mobile because it would harm competition.
blood! I cry out loud to no one. The whole idea of such a
business combination is, of course, to harm the competition
by enhancing profitability with a combination of larger market share
and reduced redundancies. Maybe the Justice Department should require
AT&T to shut down, because the very act of staying in business
is clearly damaging to the competition. And while they are at it,
the feds should also clamp down on the burgeoning Internet telephony
companies that are now slashing into the market share of all the
of particularly stupid and destructive capuchins in the California
legislature appear poised to pass a bill that will effectively put
an end to hiring an adult babysitter or anyone seeking casual employment
doing odd jobs.
the states own legislative summary of the bills intent:
law requires employers to secure the payment of workers compensation
for injuries incurred by their employees that arise out of and
in the course of employment. The failure to secure workers compensation
as required by the workers compensation law is a misdemeanor.
Under existing law, employers of persons who engage in specified
types of household domestic service and who work less than a specified
number of hours are excluded from that definition of employer
and are therefore excluded from the requirement to secure the
payment of workers compensation, as specified.
would remove that exclusion and require all domestic work employers,
as defined, to secure the payment of workers compensation and
would make conforming changes. By expanding the definition of
a crime, this bill would impose a state-mandated local program.
In lay terms,
the bill which already overwhelmingly passed in the Democrat-controlled
assembly and just passed unanimously through the California State
Assembly Committee on Appropriations, precedent to passage by the
Senate and therefore into law will require you as a parent
(or otherwise casual employer) to follow formal employee reporting
protocols and, among other disincentives to employ, provide your
babysitter with workers compensation benefits, regularly scheduled
rest and meal breaks and even paid vacation time.
do so will open you up to lawsuits from disgruntled help and being
dragged into court by the nannys nanny (state).
Now, a monkey
with even average intelligence might conclude that passing this
law in the grips of an unemployment crisis and Californias
unemployment rate is over 12%, versus the nationwide average of
9.1% would curb enthusiasm for hiring and so should be avoided.
But not the stupid California capuchins.
want to block the shipment of oil from the tar sands through the
This next example
is particularly ripe, providing evidence of just how badly the US
educational system has failed its pupils.
Quoting a supportive
article in Vermonts Burlington Free Press
A tar sands
oil developer might be planning to pipe its product to Montreal
and then across Vermonts Northeast Kingdom in an
existing pipeline to Portland, Maine, according to Canadian and
American environmental groups.
the regions air, water and wildlife habitat, the environmentalists
Egad, a reader
might decide, the regions environment is at risk. Break out
the placards, fuel up the lawyers!
We are all
aware, of course, of the principle of NIMBY as in Not in
My Back Yard. But even the most simple of simians might want to
rethink the notion that Ft. McMurray, Alberta the hub of
the Canadian tar sands and source of the hateful oil is in
Vermonts backyard. Unless one also considers, say, Phoenix,
Arizona to be similarly a part of the neighborhood: Ft. McMurray
is about 2,750 miles from Vermont, and Phoenix just 2,600.
And how is
it that feeding processed oil into an existing pipeline constitutes
such a dire threat?
Oh, what folly
these enviro-monkeys are capable of. It its positively laughable,
but only if you like laughing in the dark.
this, from the Stupid-Monkey-In-Chief (SMIC)
our own President Obama, the SMIC, has confirmed his intention to
tune up his vocal chords in order to create the jobs that have so
far gone missing in this crisis, and which, according to todays
again dismal unemployment data, remain nowhere in sight.
is my intention to lay out a series of bipartisan proposals that
the Congress can take immediately to continue to rebuild the American
economy by strengthening small businesses, helping Americans get
back to work, and putting more money in the paychecks of the middle
class and working Americans, while still reducing our deficit
and getting our fiscal house in order, Obama said.
saved! shout the staunch few that still believe the SMIC is
cut from superior cloth. But even the stupidest of the stupid monkeys
might be tempted, after so many disappointments, to raise their
hands and ask, Whats the plan, chief?
In answer to
which I provide the following preview of the plan, courtesy
plans include more infrastructure spending, tax incentives to
spur hiring, a reduction in the employer portion of the payroll
tax credit and changes to unemployment insurance to subsidize
Did you just
get an overwhelming sense of déjà vu? If so, its
probably because the SMICs latest plan is pretty much the
same as the previous plan, and the one before that. Sure, there
are a few tax breaks here and there but companies dont
hire people based on tax breaks. They do so because there is work
to be done and people are needed to do it. And in the real world,
a $5,000 tax credit for hiring someone the amount being bandied
about in the new plan will be burned through in a couple
of months of (now mandatory) health insurance payments.
Still in the
real world, if the country is to pull itself out of the muck, the
government needs to stop spending itself into a deeper and deeper
fiscal hole. And it needs to undergo radical reforms in regulatory
and tax regimes (to attract businesses and capital here, versus
over there). And it needs to remake the monetary system on a foundation
of something more tangible than political promises.
But first of
all, the government has got to acknowledge the simple reality that
it cannot meet its obligations and begin, in earnest, the restructuring
of those obligations.
only a stupid monkey would look at the state of our degraded democracy
where half of the monkeys pay no taxes while complaining
about the half who do and believe that the government will
willingly make any significant reforms, versus just handing out
smarter-than-average monkeys are actively taking steps to protect
themselves from the coming currency debasement the only way
the government knows to reduce its debt in a politically acceptable
Back in 2001,
Doug Casey and very few others were waving their arms and hooting
about the need to buy gold had you acted then, you would
have outperformed even the legendary Warren Buffett. And as the
chart here shows, you would have outperformed them, decisively so.
(Click on image
let your future be at the mercy of the D.C. stupid monkeys. Register
today for the upcoming Casey online, free video event The
American Debt Crisis: How Big? How Bad? How to Protect Yourself.
Listen to Doug Casey, David Galland, Lew Rockwell, others from the
Casey Research team, and some special guests explain how bad things
are likely to get for the US economy and dollar
how you can start to prepare and even thrive during it. The event
will be held Wednesday September 14 at 2 p.m. EDT. Dont miss
September 13, 2011
is the managing editor of Casey
© 2011 Casey