Dear Uncle Sam:
Don't you think it's about time for America to wake up?
The foundation of private property rights root in RISK MUST ATTACH TO REWARD. Would winning the gold medal in the 1980 Olympic hockey game have meant anything if it were simply handed to our boys without risk and effort? The history of America and the architecture of the American people was built on the ground of freedom and liberty. It was from that limbs of liberty that private property rights reaped private rewards and incredible innovation and generosity flowed from it.
Up until a few years ago, America's PUBLIC deficits were primarily financed by PRIVATE individuals (to a lesser extent foreign nations). In WW2, when America was running a similar PUBLIC deficit as a percentage of GDP, PRIVATE Americans purchased war bonds to support their country. In the end, we won and the risk taken on by the private parties was rewarded by getting paid back with interest and a strong economy.
Today is VERY DIFFERENT. The PUBLIC is financing PUBLIC DEFICITS...as evidenced by the FED's rapid growth of its balance sheet owning more U.S. Treasuries than China. WE THE PEOPLE are now financing WE THE PEOPLE's economy. And from a moral perspective, as RISK ALWAYS MUST ATTACH to reward, WE THE PEOPLE SHOULD OWN THE ASSETS that WE are financing.
This is a very convulsive concept for a nation like ours grounded in private property rights, but my guess is Warren Buffet is well aware of this evidenced by his letter to his UNCLE SAM last November in the Times. You see, Warren is thanking WE THE PEOPLE for bailing him out becuase after all, Uncle Sam is really WE THE PEOPLE in a funny costume. Mr. Buffett admits Berkshire would have gone bankrupt without the bailout and it appears he knows that WE THE PEOPLE should own Berkshire. Following his logic and remaining morally grounded, Warren basically took his entire PRIVATE ownership of Berkshire and put in in Trust for WE THE PEOPLE with Bill and Melinda Gates as the trustees for the money.
You can tell Bill Gross gets it too based on his three recent letters about the Turkey running before Thanksgiving, the Bernanke's Ponzi Scheme he calls a Sammy Scheme, and the mating praying mantis where the male listens to the wrong head before mating with the female and knowingly gets his head chewed off.
What these gentlemen are NOT SO SUBTLY telling us is that once we went to the PUBLIC trough for bailouts.....we essentially walked down the path of giving up our private property rights. I can't believe how few really understand this, especially with a nation riddled with so many "smart and educated" people like ours and overflowing with a bunch of loonies like me that went to law schoolBut just like the male praying mantis, the allure of short term pleasure of perceived prosperity was so great for us to resist...where even losing our property rights was not to much to give up.
Many keep hammering on Unions, Government spending, and Wall Street as the root cause.....FWIW, I used to be the same until I stepped WAY BACK and started looking at the problem OBJECTIVELY from a legal/analyst's perspective.
Now we are ALL benefiting from PUBLICLY financed deficits. It is what pays the teachers, police officers, subsidizes our taxes, drives revenues to business, gives us all security and a massive health care system....these PUBLICLY financed deficits are the foundation for America as we know it.
How do we restore PRIVATE property rights is a practical and legal mess....but I suggest to you, if you want to maintain PRIVATE PROPERTY rights in America, instead of just looking at what Unions or Teachers or Police Officers should give up, you may want to look at what WE THE PEOPLE are willing to give up? Buffett gave up essentially his entire holding in Berkshire.....what are we citizens willing to give up to retain private property rights? After all, the only reason WE have value in private property anymore is primarily because it is being protected and supported by a PUBLICLY financed deficit that WE THE PEOPLE are taking on the risk.
We now must make a choice between private property with private risk and responsibility, or public property with public risk. But the the two can't peacefully coexist together much longer. The failure of most to understand the full nature and extent of the issue is leading us ALL in a very troublesome direction. We must change heading soon, or many of our heads may end up like Mr. Gross' mantis.Sometimes the truth is not easy....but, straying from it generally leads to disaster in the long run.
All the best,
When we are all milking Publicly Financed Deficits, it is a www.udderworld.com