Free Reports

Goldmen and Gunmen Take Over

Sep 8, 2017

27

POITOU, FRANCE - While Hurricane Irma whips up some of the strongest winds ever recorded, the fury of the storm breaking over Washington is intensifying, too.

'For Conservatives, Trump's Deal With Democrats Is Nightmare Come True,' reports The New York Times.

As expected, President Trump's economic team - led by lifelong Democrats and Goldman alum Steve Mnuchin and Gary Cohn - has made a deal with Nancy Pelosi and Chuck Schumer.

Chopped Liver

The Deep State needs to raise the debt ceiling, almost immediately.

Conservative members of Congress are reluctant to go along - not without assurances that spending and borrowing will be brought under control. So the Trump debt pushers turned to their natural allies - the Democrats - to get the votes they need.

We don't need to tell you that Senate Minority Leader Schumer and House Minority Leader Pelosi are not getting on board simply to enjoy the ride.

They know where they want to go. They have cronies to pay off. And zombies to protect.

That is, they have their own win-lose deals to make.

But a deal with the liberal Dems threatens the barely coherent solidarity of the Republican Party. 'What about us?' ask the conservatives. 'What are we, chopped liver?'

GOP Schism

And if there's a schism between the traditional, conservative wing of the GOP and the White House, what's left of the Trump program?

His 'America First' foreign policy has already been ditched. So has any hope of cutting entitlements.

As for the other departments and agencies of the federal government, nobody knows what is going on, including the people who run them.

The only thing still on the table, as of yesterday morning, was tax reform.

And now, that's gone, too. It's difficult to pull off major tax changes, even with solid support in Congress; there are so many contradictory special interests to reconcile. And without strong party discipline, it is impossible to build the kind of delicate consensus you need to reform the complicated tax system.

But all that is well-rehearsed in the mainstream press. Here, for example, is The New York Times on the subject:

  • It is the scenario that President Trump's most conservative followers considered their worst nightmare, and on Wednesday it seemed to come true: The dealmaking political novice, whose ideology and loyalty were always fungible, cut a deal with Democrats.

    If Mr. Trump's agreement with the two Democratic leaders, Senator Chuck Schumer and Representative Nancy Pelosi, to increase the debt limit and finance the government for three months did not yet represent the breaking point between the president and his core, hard-right base of support, it certainly put him closer than he has ever been to tipping his fragile political coalition into open revolt.

And here's CNN:

  • 'Now nothing will get done between now and Dec. 15,' one Republican aide told CNN in an email. 'You think people will vote for a budget now?'
Advertisement
  FREE Report
Download Now
 
   
  The GST Tax - The Good, The Sad and The Terrible Vivek Kaul's inquiry into the GST shatters the myths that the mainstream media is floating. It's a must read.

Download your FREE copy today and learn the hidden truth about the GST and how it could impact the system, and you.

Download This Special Report Now. It's Free.
 

Degenerate Empire

You can find that news on TV. And in the newspapers.

Here at the Diary, though, it is just prelude. Here, we aim to connect bigger dots.

Of interest to us is not the low, day-to-day comedy in Washington, but what it means:

It doesn't matter what Trump thinks. It doesn't matter what we think. It doesn't matter who you vote for. It doesn't matter if there is a colossal crash visible ahead or not. Now underway is the train of history; it ain't gonna stop for nobody.

You can choose your own date, but we take 1917 as the date the wheels really began to turn.

Exactly 100 years ago, U.S. troops arrived in Europe - at the rate of 10,000 a day - to take part in a fight in which they had no dog.

That - along with the Spanish-American War and the 'Revolution of 1913' (Federal Reserve...income tax...direct election of Senators) - marked the transformation of the Old American Republic into the new U.S. Empire.

An empire is not the same as a republic. As an empire grows and matures, everything within it bends and warps.

The words and forms remain the same. So do the myths and delusions of the earlier era.

People still think voting matters, for example, even though the real power has moved from the many in the electorate to the few in the Deep State.

Irrelevant Legislature

In ancient Rome, the Senate and popular assemblies ruled for hundreds of years. They considered the issues gravely and decided the matters before them earnestly, guiding the Republic through wars, famines, and rebellions.

Then, after Augustus, real power moved to the executive. The republic was replaced with an empire. No one admitted it, least of all Augustus himself.

Instead of calling himself a 'dictator' or an 'emperor', Augustus made a show of handing power to the Senate and calling himself the 'first citizen'.

But the change was unrelenting. The assemblies were gradually disbanded and the Senate was used as a rubber stamp to back whatever fool shenanigans emperors got up to.

Many are the changes - to government, society, public institutions, and the economy - taking place in America, too. Today, we focus on just one of them: the emasculation of the legislature.

What we are seeing now is the twisting of Congress...into a grotesque shape more in keeping with its real function. It cannot debate the issues meaningfully. It cannot legislate in a reasonable way. It cannot meet the challenges that come its way.

As the empire evolves, its affairs become too complicated...too far-flung...too detailed for the people's representatives to handle. They can't be experts in everything, and they have no time to read anything - even the laws they pass.

Thus the legislature becomes more and more irrelevant. The insiders - led by the Goldmen and the Gunmen - take over.

Carnival of Claptrap

On Tuesday, President Trump tossed a grenade into Congress. It should have been fairly easy for the people's representatives to bat it back out to the White House.

With a combined 8,000 years of legislative experience, members of the two houses could easily craft a law to end the uncertain status of some 800,000 'Dreamers' - children who immigrated to the U.S. illegally and were given the temporary right to live in the U.S. by President Obama.

In or out; it doesn't have to be complicated. In a matter of hours, they could have had a bill on the president's desk for signature.

Instead, they fumble...they tumble over one another in silly grandstanding...and mumble incoherent and irrelevant comments. And then, it explodes in their faces.

The day is long past when Congress could sensibly consider any important legislative issue.

Congress has become little more than a national windbag...a carnival of claptrap full of clowns and grifters, each with only one real objective: to get re-elected.

And now, it is just a matter of time.

How long will it be before a U.S. Caligula names his horse as his ambassador to the UN...or turns the White House into a cat house?

Regards,
BILL BONNER Founder, Agora Inc
Bill


Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.

Disclaimer: The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Recent Articles

Thanksgiving - A Unified, National Myth November 24, 2017
I turned to my trusty assistant... Beirne White... this morning. "Beirne," I said gravely, "tell me about Thanksgiving in Mississippi."
Janet Yellen's Kangaroo Exit Interview November 23, 2017
Janet Yellen, has announced her own retirement. So the race is on for how she'll be remembered... Nick Hubble digs into the central bankers; quarrels.
What the Media Is Missing About Roy Moore November 23, 2017
"I'M WITH THE PERV," screams today's New York Post headline. The accompanying photos show Donald J. Trump...
How the Deep State Squeezed America's Wealth November 22, 2017
Salvator Mundi, said to be by Leonardo da Vinci, is the world's most expensive painting. Last Wednesday...

Equitymaster requests your view! Post a comment on "Goldmen and Gunmen Take Over". Click here!