Generational Kleptoparasitism

It's pretty rare that you can put any two words together and then Google for the string without getting a hit but Generational Kleptoparasitism is one that I just coined.  I like the ring of it but mostly I like that it is succinctly descriptive of the social activity which is fueled by a dishonest money supply which includes the twin evils of fiat currency and fractional reserve banking.  Generational kleptoparasitism refers to the stealing of the next generation's wealth by the existing generation.  This is done by setting up a system which is very hard to change, and then gaming the crap out of it until it is just a hollow shell before passing it along to the next generation to deal with. 

The elitist scammers running the show steal all they can today and then on top of that they have the gall to set up long term payments to themselves which they hope the next generation is not enlightened enough to identify as an unfair scam.  Most of it is actually done legally but with a complete lack of morals.  How can this be?  Simple: they set up the laws which contain loopholes which they have figured out how to game in advance.  They know that people generally try to look at the good and to discount the bad.  They know that anyone who points out the potential for bad will be labeled a conspiracy theorist.  In other words, they play on the lack of sophistication of the masses that generally have to wait until something goes wrong before they even concede a problem is possible.

In this fairly recent video, Meredith Whitney talks about how one generation rips off the next, about how states' finances look a lot like banks did before the crash with off balance sheet games, etc.   Here is a written article reiterating the main points: http://www.bloomberg.com/news/2010-09-29/meredith-whitney-plans-report-on-weak-health-of-u-s-states-fortune-says.html

In that video, Meredith claims that Texas is in the best shape "by a mile".  She goes on to say that Texas has been more conservative since its own banking crisis in the 1980s.  People need to ask themselves how a state that does not have a personal income tax can be in such better shape than a state like California which has a 9.55% personal income tax for most people.  California should have plenty of money to run the state with that kind of revenue stream, right?  Well, this is what people need to think about.  Giving more money to the state does not equate to a better way of life, better services, better roads better anything.  It just gives the con men more and easier ways to scamper off with the cash, to buy votes, and to make unkeepable promises to its citizens.

At some point in the not too distant future we are going to see the big liberal spendy states begin to default on their promises.  They will be asking for federal bail outs just as the big banks did.  That is when we should begin to really understand the depth of the crash of our debt Ponzi.  The Federal Reserve and the treasury have gone "all in" to save the banks.  There is nothing in reserve to save the states like CA, IL, NV, NY, FL, etc.  The only thing that will be left is the massive printing of money and that is simply a tax on everyone.  If this begins to happen then it is not difficult to predict the reactions of citizens of states like TX and WA which have been more conservative in their government spending.  They will have no desire to see their cost of living rise in order to bail out the citizens of liberal states who did not control their governments.

This could easily turn into a massive social wedge for our country.  If the federal government decides to tax us all via inflation to pay for the sins of individual states then the only recourse for those who do not accept this type of taxation without representation is to reject the dollar as their currency.  The only way to do that is to secede from the union.  Once established as a sovereign nation, a country like Texas could then establish its own currency based on its own conservative beliefs.  If some major state like Texas did this and if its leaders would listen to the teachings of wise people like Ron Paul, the new currency would be directly tied to gold holdings. 

The reestablishment of a gold standard currency within the continental United States would completely transform the face of the North American continent.  The promise of an honest money system and freedom from generational kleptoparasitism would attract the best and the brightest of the next generation.  It would also attract businesses.  Texas would become a labor magnet.  Since all future value derives from labor, the bottom line is that Texas would, within a few short years, become by far the richest and most powerful entity on the continent.  It would laugh at Ben Bernanke and Tim Geithner’s antics. 

We look at how states play the beggar thy neighbor game.  California cuts Arizona off from this, Arizona cuts California off from that.  WA, TX, FL and others have no state income tax while so many others do.  The ultimate beggar thy neighbor move would be for one entity on this continent to return to a gold standard.  What brought so many people over to America from England?  The chance for a better life and the chance to have more freedom and to keep what you earn.  These ideals are what the gold standard would represent.  You cannot have an honest economy or an honest society without first having an honest money supply.

This might just sound like fantasy today but we could easily find ourselves going down this path in the coming years as states have to admit they are bankrupt and cannot pay what they have promised.  It could be the next chapter in the evolution of American culture.