I think the cracks are appearing. This trail balloon about the VAT is the result of some people in the government trying to tell The Great One that his wish list is bankrupting the nation, tax revenues are falling, the Chinks are upset, and now the treasury auctions of t-bills, t-notes, and t-bonds is not going well. So, his gnomes with the slates and chalk are trying to make the numbers work, but they can’t work unless more revenue is found.
Eventually, the cracks will get deeper and wider. At some point the whole Fantasy Edifice is going to fall apart, and the sheeple who voted for The Great One will finally begin to realize they’ve been had. Also, foreign policy will be a mess and our enemies are going to be emboldened to show their fangs and use them.
These are going to be a horrific four years. I hope we can recover from them. But first we have to get things moving in a different direction for 2010 and beyond.
