By Alex Rapoport
April 26, 2024
The "Marxist" philosophy is built on antagonism between the "poor" and the "rich". The rich take advantage of and exploit the poor, and the poor need to raise, take over the power and expropriate resources from the rich. "All Power to the People". We saw what it actually turns out to be. Remember "Dispossession" in Soviet Russia after 1917. The "Kulaks" were not "the rich" but simply a middle class. The backbone of economy, hard workers, generation after generation. Accumulating honestly earned wealth. And here comes a handful of people convincing "the poor" to take away this wealth by force. Sure enough, those "advocates" for "the poor" become the top of the "Pyramid of Power", and all the wealth taken away for the sake of "the poor" is in their disposal.
The Reagan's America was the time when the "middle class" got strengthened. President Reagan represented their values. In economy, it was downsizing of the government in both size and powers, simplification of tax and other regulations. In foreign policy, it was stability. "Don't interfere with us and we will not interfere with you." Ever since Clinton arrival, the "Dispossession" started in USA. The only difference is, it was done "politely". "Don't give us all - give us 8%, live in peace for 1 year. In less than a generation we will absorb your wealth."
Many have already forgotten the Subprime Mortgage crisis of 2008 and the shameful "Wall Street Bailout" that followed. All of that was "seeded" in Clinton's era. Banks were "arm twisted" to lend and give mortgages to folks with doubtful credibility. The greed of the Financial Pyramid. By 2008 it all smelled like the Great Depression of 1929. America needed that upcoming Recession like a bitter medicine. [Like a Winter is as fundamental concept of Earth's creation as a Summer is, a Recession is as fundamental concept of Market cycles as a Growth is.]
Instead, a whopping 2 Trillion Dollars were "issued" [printed] out of the thin air. Punishing the thrifty and rewarding are greedy and spendthrift. The middle class lost 1/3 of their wealth, and additional "inflation and tax" channels of constant milking of the middle class were activated. But "the elite" did not lose anything, only enriched. Because "the poor" which were "supported" through this "Dispossession", will go to Supermarkets to purchase "smartphones" etc. The poor will not retain that wealth, everything will settle at the top. And "the elite" are democrats, liberals, and many "not much disagreeing with them" republicans.
Of course, we know the other side of this. Rewarding the Thrifty and Punishing the Spender ends with deflation, freezes economic activity. In 1929, it caused Great Depression, hunger and suffering of many. And so President Hoover was judged for not intervening. But let me offer a view that exactly this development of 1929 made America into great country - economically, ethically, etc. However, in 2008 the "elites" were more concerned of themselves, they did not want any hunger revolts or even disapproval by the "masses". And not only this. Deflation strengthens the "middle class" which blocks the elites from twisting the law as per their wishes.
The other opportunity to "cure" America was in 2020. But President Trump turned out to be a populist. After losing the "Obamacare repeal" battle, he found nothing better than to stimulate economy by continued printing money. "Market is doing great. People are loaded with money. Let's keep America great." Stopping the printing press was the only option he had a legislative right for (of course bringing on the wrath of 70% of the population). But the elections for the 2nd term... and then COVID.
After printing yet another 3 Trillion Dollars in 2020, America faced Great Inflation. Now let's go back to Reagan times. When James Baker told Mikhail Gorbachev that NATO will not extend even one inch, I am pretty sure he honestly meant it! The Reagan's team stood for the healthy American "middle class", which did not want the Soviet KGB and Communist philosophy to interfere with them, and they (the middle class) has no desire to interfere anywhere either. What Reagan did not have a chance to accomplish is to return US Dollar to the Golden standard abandoned by Nixon. I believe if he would have lasted in White house for another 4 to 6 years, he would have done it. But Bush (father) was no match to Reagan, the Democrats came to power, with all the damage caused by Clinton, and then Bush (son) was not much better, then Obama who caused less damage than Clinton but still some, and sadly Trump was not able to stop the liberal ever-expanding Pyramid of Power. Similar to Soviet KGB of those days (before the end of cold war), the "Left" wants to control and rule and expand its power grip. This is fueled by continued printing of money. But it is not possible to keep printing money not backed by any real assets. For this reason, let me suggest, the liberal "Left" goes around the globe searching for cheap resources, and creating local conflicts.
And so, the Ukraine and especially Donetsk region rich in resources became a matter of survival for Russia, against ever-expanding NATO. [Only balance brings lasting peace.] And it equally became a matter of survival for American "Left". But not for the weakened yet existing "middle class" which does not benefit from the war - America is rich in resources. But the "US elite" wants to suppress the "middle class" and therefore wants the war to continue. The US GOV Debt which exceeded 33 Trillion, will hopefully tight up the "elite hands" and at some point, not too many will want to buy US Treasury Obligations. At that point, US economy worn out by Ukrainian proxy war, will slide into Great Recession if not Depression. It will teach people a great lesson of Fiscal Responsibility. And the healing process will start, it will make America GREAT AGAIN.