Subject: After the Collaspe
From: Dauven family <jamesed@spnt.com>

I hate to tell you guys we are seeing the beginning of the collaspe.
The collaspe of civilization starts not from wars, or disease, but from
just plain old economic over extentinon.   When a government runs out of
money to fund its projects it has three choices to make, one is
taxation, two is borrowing the third is cutting costs.

Now for a dictatorial government, they can do all three but only for a
short period of time. The higher taxes will cause a slower and slower
economic growth untill the growth turn negative and the available
economic resources are not sufficient to meet the needs of the dictator
so their will be government retraction.  Borrowing has two problems one
is the lenders do not trust dictators and don't make large loans and the
second what loans ther are will only be made as long as there is
expanding positive economic growth.   As growth starts to slow down the
intrest rates for what loans that are made to the government become
steeper and steeper and since a dictator has ultimate power and can
cancle payment for the loans at any time, the source of loans will dry
up very qickly.  Since this is a dictatorship, any appearent lapse of
power by government retraction breeds revolt to that government.

Now for a democratic government the results are the same it just uses a
slightly different route to get there.  The purpose of a democratic
governenment is to get as many supporters for the dominant party as
possible.   This is done by granting the supporters of that government
economic resources.  You know food stamps, generous retirement benifits,
free medical care, subsidised housing, etc.  Well to pay for all the
social programs the government has to raise money by taxation or
borrowing.  The results of rasing taxes is the same as the dictatorial
government.  Economic growth begins to stagnate and eventually turns
negative causing a drop in tax revenues to the governement to carry on
its operations.   The government turns to the credit market to get a
source of funding for its operations.  The credit markets make loans to
the governments but as the economy become weaker and weaker the intrest
rates become higher and higher.  The government borrows so much that to
keep intrest rates from going thru the roof it has to make intrest
payments to the lenders.  The intrest rates become more and more of a
burden to the government eventually getting to a point that the taxation
cannot support the intrest rates.  The last is cutting costs.  This is
the last thing a democratic government wants to do.   This destroys
their base of power and as the supporters for the dominant party are
stripped away and the dominant party becomes less and less powerfull and
starts to play little political games.

The first political game is to keep the same requirments for economic
support for the dominant party supporters but make some one else pay for
them.  We are seeing this in the requirments for business to
increasingly pay for government programs, and the block grant scheme to
the states.  Businesses are not dumb and they eventually move their
operations away from the governments control, you know manufacturing OFF
SHORE.  The government will then stop its block grants to the states
while demanding that the states fund the central governments programs.

AS for cutting costs, the government starts cutting defense in that
defense does not yeild sufficient benifits for its supporters.  The next
cutting are for the infastructure you know roads, bridges, national
parks, and reglatory personnel.   The increase in taxation also breed
resentment to the government from people who produce goods and services
and they start working at ways to not pay taxes and lastly eliments of
the population start supporting practices that do not support the
government such as survivalists, militias, the right wing communities
like in Idaho.

As you look around today with 30% of the national governments budget
going to pay intrest on the debt.  The rise of anti government groups,
the block grant schemes, the increasing flight of means of production to
foreign countries, the tactics of lying and deceit and flat out illegal
activities that the dominant party, IE the democrats use to keep in
power all are indicators that the collapse is beginning.  This collapse
doesn't happen over night, it takes years to start but onece the rot
starts it keeps on going and accelerates untill the final stages which
occure very rapidly.  The final collapse is indicated by local groups
starting to set up their on solvern states and the national government
has neither the economic resources or the military power to stop it.
We are seeing this in the Russia where the entire Russian army which
could defeat the US army in the field in the 1970's cannot now keep a
small province of Chetenina from leaving russia.

WAKE UP AND SMELL THE ROSES THE COLLAPSE IS HERE.

Jim in Ore.