The passing of scholar James Buchanan stills the voice of one who understood the fact that men, without Constitutional constraints, will vote themselves unlimited largess from the public treasury due to their own self interest.
Now that President Obama and most of his key congressional allies are safely re-elected and the so-called “fiscal cliff” negotiated, the full consequences of the most recent elections are coming into view. Despite repeated assurances he would not raise taxes on any but the wealthiest Americans, the president (with the grudging support of many congressional Republicans), has — before even being sworn into his second term in office — enacted massive tax hikes that will affect almost every working American.
Foreign governments continue to increase their purchases of U.S. government debt despite concerns over the fiscal cliff and the government's continued profligate spending.
All the chairman of the Federal Reserve has done in his latest announcement of a new bond-buying program is give himself and his Federal Open Market Committee permission to buy government bonds forever.