Call it the fractal geometry of fiscal crisis. If you fly across the Atlantic on a clear day, you can look down and see the same phenomenon but on four entirely different scales. At one extreme there is tiny Iceland. Then there is little Ireland, followed by medium-size Britain. They’re all a good deal smaller than the mighty United States. But in each case the economic crisis has taken the same form: a massive banking crisis, followed by an equally massive fiscal crisis as the government stepped in to bail out the private financial system.
Size matters, of course. For the smaller countries, the financial losses arising from this crisis are a great deal larger in relation to their gross domestic product than they are for the United States. Yet the stakes are higher in the American case. In the great scheme of things””let’s be frank””it does not matter much if Iceland teeters on the brink of fiscal collapse, or Ireland, for that matter. The locals suffer, but the world goes on much as usual.
But if the United States succumbs to a fiscal crisis, as an increasing number of economic experts fear it may, then the entire balance of global economic power could shift. Military experts talk as if the president’s decision about whether to send an additional 40,000 troops to Afghanistan is a make-or-break moment. In reality, his indecision about the deficit could matter much more for the country’s long-term national security. Call the United States what you like””superpower, hegemon, or empire””but its ability to manage its finances is closely tied to its ability to remain the predominant global military power. Here’s why….
There is a growing body of evidence — carbon tax, nationalising health care, elimination of the secret ballot for union elections, declaring profits over 3% “inexcusable,” and plenty more — that the current administration intends to undermine or harm American economic dynamism.
There is also a growing body of evidence — repeated snubbing of the UK, bowing all over the place, cuddling up to avowed enemy tyrants, grovelling apologies, KSM trial, and plenty more — that the current administration intends to undermine or harm America’s military and political position in the world. Specifically “we need to move towards a multi-polar world and an expanded role for international law.”
Most unfortunately, there is a linkage, the most recent case being Afghanistan, for which the administration has proposed a specific tax to cover the costs of the war “which have become so burdensome in this time of deficits and economic difficulty.”
Taken together, the body of evidence suggests, but does not compel, a conclusion that this administration feels guilty about America’s position in the world and wishes to undermine it by weakening the economy to the extent it will become necessary to cut the military budget … you know, to bring down the deficit.
I’ll just about guarantee that before the end of this administration’s term in office we hear something quite close to “America can no longer afford to be the world’s policeman” as they announce the decommissioning of two or three carrier attack groups.
Quite distressingly, Mr Obama’s record of words — for [i]words[/i] are essentially the only record he has — is entirely consistent with his apparent intention to weaken America’s military by weakening and expropriating much of the dynamic economy making it possible.
[blockquote]growing body of evidence[/blockquote]?
You need no more evidence than the president’s own words. He is unfortunately Reaganesque in that he does what he said he would do.
More unfortunate is that he has a majority of co-conspirators in congress.
We will have to rebuild after this debacle. Hopefully, there will be a backlash against washington’s push for totalitarianism that will allow us to build in a positive direction. My fear is that a perception of American weakness will push the world into another global conflagration, as happened the last time we were in this pickle (FDR).
It would be sadly ironic if Mr. Obama was the one to “immanentize the eschaton”