Amazing!

Are you amazed? I know I am. The Messiah got elected as this incredible intellect and leader. Despite absolutely no executive experience, we turned over the nation to his control. He quickly surrounded himself with a suitable group of sycophants and began instantaneously to churn out executive orders and spending proposals.

There is no restraint on this. The congress is firmly in the hands of the Socialist Party under Pelosi and Reid. They see no reason not to accede to the Presidential proposals. They will satisfy and enlarge their constituencies. They will be enacting the will of the people. They will be furthering some of their pet agenda items like electric cars, windmill powered houses, military demobilization and mediocre health care for everyone. They will do this by exacerbating class envy and the downtrodden masses deep loathing for the successful in America. Rather than attempting to raise the many, the avowed policy is to destroy the few.

The expenditures already are gargantuan. They’ve changed the language. We no longer consider five hundred million dollars as significant. A few billion is now a drop in the bucket. We talk freely of trillions. And we don’t blanch when we forecast annual deficits for the next decade in trillions of dollars per year. The national debt isn’t even mentioned anymore.

With incredible hubris they simply explain it as all insignificant because they are going to withdraw troops from Iraq and repeal tax cuts on the wealthiest one or two percent. That will handle the supply side of the equation. Money for nothing and the chicks for free.

So, six weeks into the proposals, how is the market responding? It is in free-fall. But wait, you say. The money hasn’t hit the streets yet. It can’t have an impact.

Hogwash says I. The markets respond to the future. The rise in a market is triggered by anticipation of profits, not by profits in hand already. Then it is too late in the cycle for investors to jump aboard. The market should have steadied and even begun a rise, if only a gradual one. Why then the dive?

Simple really. The people who invest in the market are the ones who have money not needed for daily essentials. Those are the folks who are going to bear the tax burdens of the entire nation.

Companies plan for the future based on anticipation of demands. Profit margins drive their investment planning. If you have been promised that your carbon dioxide emissions are going to be heavily taxed you won’t anticipate any profit. If your fuel costs are going to skyrocket because coal power plants have been shut down and no nuclear is being built, your profits will disappear. If your labor costs are going through the roof because you now must provide health care not only to your employees, but their families and their relatives and your retirees you’ve lost your margins for future job creation or infrastructure growth.

The unproductive get the handouts. The productive get taxed into unproductivity. The markets predict the future and their crystal ball should be telling the smartest executive we’ve ever put in the White House that this agenda is impossible.

Regardless of how progressive you are; regardless of how concerned you are for the working poor; regardless of how you want to protect the planet from unsubstantiated threats, you still are bound by simple math. One plus one will always equal two. Even if we want it to equal 1.4 trillion dollars.

As John Galt might remind us, “A equals A.”

Who is John Galt? You may find yourself asking regularly in days to come.