In 2008, a slick snake oil salesman began pitching this revolutionary and fundamentally transformative product called hope and change. He went to the lazy handout takers and offered them hope and then he went to the productive people and took their change. Redistributing wealth from producers to takers is Barack Obama’s ponzi scheme. It’s doomed to failure because, as Margaret Thatcher said, sooner or later you run out of other people’s money. He is the Bernie Madoff of American politics.
Just as Madoff had to keep using his current investors to pay back his previous ones, Obama uses his political capital, the tax payer’s money and a boat load of cash that he has borrowed or printed to keep feeding the entitlement and subsidy machine that produces the votes and support that keeps him in power. The idea is to pad his political capital by using our money to make the scheme appear profitable enough through 2012 so he can be reelected.
Once reelected, he can run roughshod over the will of the American people even more so since he will no longer need to solicit votes. This is when the house of cards collapses and Obama leaves office after his second term with the American people left holding the bag.
There is record participation in the food stamp program and welfare rolls are swelling in ways we have not seen since the 1970’s. Over 44 million Americans are now on the nation’s food stamp rolls — somewhere around 14.3% of the population. If you look at the unemployment numbers, you see that the books are clearly cooked given the revelation that there are more people falling into the no longer being counted numbers than there are new jobs being created according to The Blaze.
Jim Quinn at Zero Hedge explains how this works:
All it took was 2.8 million Americans to leave the labor force to achieve this fabulous reduction in the unemployment rate. The percentage of Americans in the labor force of 64.2% is the lowest since 1983. The employment to population ratio of 58.5% is also the lowest since 1983. These atrocious figures are after a supposed economic recovery that has been underway for the last 18 months.When you see the unemployment number at 8.7%, realize that it's a lot higher than that. Factor in underemployment and its even worse.
Obama started his political career in the living room of William Ayers and built a community organizing machine of radicals and socialists. But in order to win the presidency, he had to court the center. So he used all the political capital he got from his radical associations and pitched himself to the center by offering tax cuts to 95% of the middle class.
But once elected, he took all the political capital he got from the center and used it keep the radicals and socialists happy in the form of political patronage, stimulus money and Obamacare.
The center doesn’t realize that he used their political capital to pay off the Left and vice versa. He’s been kiting his political capital between the left and the center the whole time. Like any good ponzi scheme, you use today’s investors to pay off yesterday’s investors. So when today’s investor’s ask to be paid off, he will go back to yesterday’s investors and say “see, you got a return on your money, so invest again.” The cycle continues until eventually it collapses upon itself.
He’s even running this scam with the banking and investment community. The Federal Reserve just printed over 600 billion dollars to buy treasury notes. Where are these treasuries traded? Wall Street. Who benefits from the extra capital this makes available on Wall Street? By inflating the dollar, he also inflates the profits of Wall Street companies who along with stock traders make large profits. The market continues to climb, which keeps public companies, bankers and brokers busy counting their dough instead of marching on the White House with torches and pitch forks.
Should the country go bankrupt, the stock market will crash and those people, too, will be left holding the bag.
The peacenik who told us he would pull out of Iraq by 2010, would close Gitmo and would give murderous terrorists dignified civilian trials is now bombing the Middle East and Africa like a cowboy on a wild ride. But, the Left won’t protest it because they don’t yet realize that he has spent all their political capital. They’re hanging in on this investment because they think they’ll get more if he wins in 2012.
As long as more and more people are added to the welfare and food stamp rolls each month, more and more people believe Obama is doing a good job. That's more votes for him. He’s paying off a large block of 2012 voters with free food, housing subsidies and utility subsidies.
So the takers are getting more and more. They will vote for him in 2012 because that’s the strategy. Keep everyone dependent on government and they will have to keep that government in power.
This house of cards is being built on OPM – other people’s money. The person who produces today is taxed while the person who sucks off the teat of the system is subsidized. The entire process is upside down ass backwards. It simply can’t sustain itself.
People keep telling me that we’ve been in these kinds of binds before. We survived the Civil War. We responded to Pearl Harbor by stopping Japan and Germany from achieving their goal of world domination. We defeated the Soviet Union in the Cold War. We emerged from the Jimmy Carter disaster of the late 1970’s as a prosperous nation. We responded effectively to the 9/11 attacks.
But when our house of cards comes crashing down this time, we may not catch it in the nick of time like we’ve always done in the past. There is a complacency that settles in when you rest on the laurels of past successes with the mindset that there is nothing to worry about; someone will get us out of this.
When you are hit by a tornado or a hurricane, you can be prepared. Even when there is damage to the house done by storms and weather, you can see it and you can fix it. But if you have termites, you may not know it until its too late.
The American house has termites. It’s infested. The floorboards are about to collapse. We know the termites are there. Yet, the mainstream media still refuses to sound the alarm. The media is like the real estate agency that works for Obama. They are still trying to sell us the house; and they are hiding the termite problem.
These termites are socialists, radicals and secularists who have been poisoned by the hedonism of the pop culture and the intellectual fraud we call a liberal arts education. They continue to eat away at the fabric and foundation of our country and no one has the balls to call an exterminator.
The national debt continues to go up and up. Like with any ponzi scheme, it collapses at the point of critical mass. When Barack Obama can no longer move the political capital around like a game of three card monty, the whole thing will implode. Socialism always implodes. It starts out with lots of rich people and lots of money. Then the money gets redistributed from the makers to the takers. Once the takers start getting money, they’re happy so they keep the scam artist in power. But once the makers run out of money, there’s no more money to feed the scheme and it collapses.
Ponzi schemes end up in bankruptcy and financial devastation to their victims. These termites are eating away at our financial house. It will collapse if nothing is done quickly.
Read more from Stephen Moore: We've Become a Nation of Takers, Not Makers