Traditional socialism is really easy to understand. Government takes the money from those who have it – and gives it to those who don’t have it. Voila! Peace! Justice! Truth and equality. Unless, of course, they took the money away from you.
Because of today’s coordinated central bank actions between America’s Fed and other Western central banks, we now know how modern, European socialism works, too. Here’s the scoop:
Harry works for a living. It’s a private firm – not a government-run one – making him even more unusual. European taxes take over half of everything Harry gets paid.
With the money the state takes from Harry, it hires workers and pays them exorbitant salaries and benefits to provide just about everything Harry might conceivably need during his lifetime. Whether or not he wants it. “It’s free – why wouldn’t you take it?” they ask. And indeed, why not? He’s already been forced to pay for it.
Because Harry is frugal, he still manages to save a few crumbs every month. He deposits these in an account at a big bank, because he wants them to be safe – just in case he needs his money. The bank assures him it is completely safe – because the government guarantees it.
The government has grand ambitions, however, and really needs more money than they can get just by taxing their Harrys, who seem to drop off the employed list when taxes get “way too high,” instead of just “too high.”
So the government borrows the money they haven’t managed to take and spends it on utopian schemes to buy more votes in the pseudo-democratic elections, and remain in power forever.
Where do they borrow the money? Mainly, from big banks, who buy their government bonds in return for repayment plus interest at a later date. Then the government merrily spends the money on more things they think their Harrys might need or want!
Unfortunately for the big banks, some of the countries that borrowed the money were Greece, Italy, Spain and other like-minded countries that thought they’d borrow more – forever (e.g. sell more bonds due later, to cover the ones due now). And why not? It’s been working like a charm for decades!
Now that ordinary people are beginning to notice the scam, the big banks are in trouble. People are starting to ask for the money they gave the bank (a beginning bank run). And the countries due to repay them “ain’t got no money.” And they can’t get money, because other lenders don’t think they will get repaid when the times comes, either.
Now big banks all over Europe and much of the West find themselves with European debt that isn’t going to be repaid, because the countries that borrowed it believed they could forever borrow both the interest and principal that were due – and then add in half again as much for new socialist programs that their Harrys might want.
Except for the central banks. Since the big banks that bought the socialist countries’ debt are “too big to fail,” the central banks are creating cheap dollars, euros and whatever else is needed out of thin electrons and then loaning the newly debased currencies to the big banks on the cheap.
That’s how modern socialism has spread its contagion across the entire world! And since the Fed ultimately gets its money out of taxpayers via the Treasury – and other central banks also – well, guess what?
You and I will soon own worthless foreign debt from Greece, Italy, Spain and other socialist “miracles” that the press have held up to us as examples for decades. Because the socialists can’t pay – the capitalists must!
So don’t say we don’t pay our “fair” share. No, it’s not our fair share. In the end, we pay it all. The socialist party never ends.