Paul Ryan Taking On Bernanke

Denninger points out the culprit in the room -

Ryan is going to town on him as I write this and I have to wonder if he reads Tickers, as he's pointing out:

• He's bailing out fiscal policy with near-zero interest rates.  That is, we are able to run trillion dollar plus deficits because he is playing with ZIRP and QE.  Ryan basically told Bernanke that Congress is not comprised of adults and that Bernanke must pull system liquidity in order to force Congress to do its job!
  
• He used the words stable prices.  What he did not do is bend him over the desk and give him one or two good ones from behind on the "2% inflation" game, but it's a start.
  
• He's pointing out that trashing saver's investment income and forcing them into risk is counter-productive.  Mr. Ryan recognizes capital formation will get the job done?  THAT is a change.

 Exactly. This is the exact reason why socialism, communism and the like continually fail. You cannot control human nature. You can cajole, penalize, even imprison but in the end it becomes a financial question. Is the perceived benefit worth the risk? To some, the answer is a resounding "Yes" and eventually you end up attacking the very institutions which make your country possible. In the end you prop up organizations that are unproductive in an attempt to save things. (Solyndra, GM anyone?) This is achieved via massive expenditures which price you out of the markets and seal the fate on your government as debt piles on resulting in a slave class footing the bills.

This grossly understates the case; we will not make it through the next one cycle (eight years) say much less two.  To believe we can manage to spend over three trillion dollars at the Federal level in 16 years is an outrageous lie and the idea that we can absorb another $400+ billion annually in deficits before 2016 and $800+ billion annually by 2020 is preposterous.

That which cannot happen will not happen.

This puts the lie to claims by Ryan, Southerland, Miller and others that "those over 50 will not see their Medicare tampered with."  Oh yes they will, as for them to "not have it tampered with" they'd have to make it through four cycles of doubling, not two, which would increase Federal health spending at present rates of acceleration to more than $13 trillion by the time that person reaches 85, or some 16 times the present amount.

The Real Effect

This, incidentally, is why I have beef with Paul Ryan. It's akin to invaders breaking down the door to the castle and Mr. Ryan wants to put up some 1/2" plywood to "patch" it and then deal with it in half-an-hour by asking one of the invaders to eventually put up maybe some actual braces on the door. By that point, it is far too late and we're all dog food.

Paul Ryan continually talks of 10 year unenforceable budgets that slowly chip away at part of the problem while continuing the pork fest on the other side. On the flip side, Ron Paul just so happens to be running for President and is actually talking about fixing this real and deadly issue whereas his counterparts simply bring up a country half way around the world an our 'responsibility' to protect it.

One simply needs to realize that once the invaders break through the castle door, our current leaders will no longer be calling the shots and all of that discussion will be moot. Or have they broken through already?