Consider a recent essay written by Porter Stansbury on the evolving US Communist State. He actually overlooks the important Politburo Panel of Czars without legal standing. He wrote, "When the facts change, I change my mind. I never thought we would see the government running $2 trillion deficits, taking over health care, owning all the banks. The stock market seems to believe the government can solve all of our problems with paper money and bureaucratic mandates. My bet is, it does not work, at least, not for long. And given the choice between earning less than 1% in the bank and buying gold at $1100 per ounce, I am buying gold. Watching the government rack up debts that will be impossible to repay while narrowing the tax base (at least 50% of Americans pay zero federal income tax) at the same time is very scary. Not only has the government gone mad with spending and corruption, but it also expects about 10% of the population to pay for essentially all the costs. The math simply does not add up: 10% of the population cannot (and will not) pay for all of the costs of a socialist federal government.

This has nothing to do with traditional party politics. Both parties have grown the size and responsibilities of government. Both parties have added to the national debt. And both parties support the narrowing of the tax base... Unfortunately, we know from history this kind of political system cannot last for long, for lots of reasons. One important reason: The rich will leave. Or they will stop working. They will hide their incomes or only invest in tax-protected vehicles. And we know the political response will be tougher laws on emigration, taxation, more money printing, and eventually capital controls that make it impossible to protect yourself from a massive currency devaluation.

The trends I am talking about are cultural and fiscal, not ideological. Read the original Communist Manifesto. It is nearly identical to today's government policies. Any politician who tries to oppose the landslide of modern entitlements is immediately labeled a kook and is unelectable. Whether you think we ought to have free health care and drugs for retirees, more military spending than the rest of the world combined, a bankrupt retirement scheme based on government debt, government guarantees for the banks, does not matter to me... I can tell you this with 100% accuracy: You cannot support the world's reserve currency when you are the world's largest debtor, when you plan to finance annual deficits exceeding $2 trillion with progressive income taxes and money printing. Our economy is a charade. And when it falls apart, the consequences will be devastating."