Sunday, June 21, 2009

Are we living in the Weimar Republic?

Between World War I and World War II, Germany's government was known as the Weimar Republic. The Wiemar Republic is not well known, but it bears some eerie similarities to America today. From Wikipedia:

The Weimar Republic had some of the most serious economic problems ever experienced by any Western democracy in history. Rampant hyperinflation, massive unemployment and a large drop in living standards were primary factors. In 1923–1929 there was a short period of economic recovery, but the Great Depression of the 1930s led to a worldwide recession. Germany was particularly affected because it depended heavily on American loans. In 1926, about 2 million Germans were unemployed - this rose to around 6 million in 1932. Many blamed the Weimar Republic. This was made apparent when political parties on both right and left wanting to disband the Republic altogether made any democratic majority in Parliament impossible.

Sound familiar? The danger of hyperinflation is very real, caused by the government creating money out of thin air by issuing massive amounts of debt and deficit spending. Trillions of dollars not currently in circulation are being created to pay for the stimulus (which hasn't stimulated much) and various bailouts (which haven't done much except lead to a couple of enormous bankrupcties). There is a difference between spending tax revenues and massive deficit spending. We are led by a leader who is adored by the ruling class and who clearly has a messianic complex. I am pretty certain that President Obama is willing to do whatever he thinks is best for this country even if it is obviously going to be a disaster economically or flat our un-Constitutional because he has an incredibly inflated view of himself, bolstered by the press, of his historical significance even before he has accomplished anything. I am confident that he and his supporters are willing to justify just about anything in the name of change and progress.

The parallels are hardly exact, but we live in precarious economic times, tempers are running high, class warfare is state policy, the world stage is growing more dangerous. President Obama has no plan for the future except to spend more money and engage in "grip-n-grin" diplomacy with thugs and dictators. American institutions are collapsing right and left, with the accompanying uncertainty that makes people ripe for totalitarianism. If people get desperate enough, anything is possible. Who knows what will happen if North Korea launches a missile at Hawaii or if Iran's government collapses or if Pakistans government falls. We certainly do not have a leader who inspires confidence in anything except his own self-confidence.

We are living in scary times indeed.
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