Victor Davis Hanson, who is an intellectual giant of our times, has a really great article today. His thesis is that a malaise and disconnect has fallen on America. The Progressive elites of this nation are disconnected from the populace. They have raided our treasuries and lead us into ridiculous nation building of Islamic societies that are our natural enemies. The demands of the population are ignored as they follow some Radical Transnationalist agenda. America is dazed and confused.
No one quite knows what is going on.
Inflation?
Interest rates are at rock-bottom levels. But banks are reluctant to lend—both afraid of shaky borrowers and loathe to get tied down with low-interest obligations if inflation roars back. “They” say inflation won’t return, but the people know that it will, since expanding the money supply by two trillion dollars per annum, as interest rates are near zero, does not seem a stable scenario.
Real Estate?
Millions of Americans are dutifully paying their under-water mortgages each month, but getting peeved when they hear of all sorts of new programs to ensure others do not. Indeed, the message seems to be that the government cares for the hyper-wealthy or the very poor, while merely talking about the middle class, as it wages war on those who seek to be rich.
No one is getting much of a return on cash in the bank. But most are still paranoid about investing in Wall Street, given the hit that their 401(k)s took last September.
Real estate should be a good investment, but cash is scarce, and no one knows where the property bottom actually is. So those employed with income and capital are more likely paying off debt or hoarding cash for an emergency to come, than buying and hiring.
California property should be a good buy, given dramatic drops in home prices. But with 3500 upper-middle class dissatisfied leaving a week, and 2500 rather poorer arriving, it seems at some point there simply will no longer be an affluent, big-income, big-home, pay-lots-of-taxes upper stratum left.
Read the Rest.
This is a dangerous situation that VDH is describing. America appears leaderless as the Progressive elites are out for their themselves. We need real leadership and alas, there is no one on the horizon.
Let us discuss and have a brainstorming session on the points Mr. Hanson makes. Let us also discuss possible solution to the issues presented here.
(Hat Tip: Iron Fist)
Tags: Victor Davis Hanson
