Before anything else this morning (including our latest “told you so” on markets) we have to look at couple of immigration stories under the harsh light of cash flow analysis.
The first story to consider is this: “U.S. Begins Immigration Crackdown on Central Americans. “
Again, government is operating as a bad comedian – telegraphing the punchline ahead of time: These “raids” have been carefully announced weeks in advance – giving the serious criminals plenty of time to relocate and to avoid the “sweep.” Theatrics or Kabuki, it’s a poor show.
As an aficionado of classic R&B, might I suggest an old Johnny Mathis and Deniece Williams song captures the reality nicely?
Meantime, back at hard Reality: The Obama administration is about to shed immigration caps through the presidential decree process – also known as executive orders.
If this seems contradictory and confusing, please consider that it is merely a “flow of funds” problem.
The reason for the publicly touted “raids” is that Americans are reading stories, almost daily, about the mayhem the non-assimilating populations are causing in Eurabian cities like those in Germany.
But when the facts are collected, it becomes apparent that the immigrant population of America is still on trajectory set to grow the immigrant population massively: In fact “ Immigrant Population to Increase 715% by 2060, Census Data Show.”
What we come to is that the ugliest secret of capitalism is alive and well: Capitalism – in order not to fall apart – must always operate in the “growth mode.” By doing so, there is a good chance that a virtuous cycle can be realized. think of it as positive feedback.
But when growth disappears, what happens? Suddenly the reverse occurs. Demand for social services climb, the cost of government soars, and programs sold as a social net – like Social Security – face long-term bankruptcy because of actuarial finance: The demand for benefits will outstrip the income within 20-years, or so. Answer? More people to pay more into the system!
This unfunded long-term retirement liability is powering the EU’s inflows, as well.
Which means, simply put: Government must ensure growth at any cost. The German stock market has outperformed the other markets of Europe since 2009 in large part because they have embraced immigration.
The Krauts got onto the mechanics of this when the Wall came down in 1989. Rather than experience a mini-depression from assimilation of East Germany, there was something of a boom. And so with their economy needing constant reinforcement, bring in the foreigners!
Yet there is a terrible cost of unchecked immigration. We’re just seeing reports this morning of how more than 1,000 immigrant men went on a rape and pillage New Years:
The U.S.