Reversal of Fortune: Why the power elite will lose power

Smoke filled room

When thugs and criminals become the power elite in a country, the populace eventually finds ways of ousting them or they destroy themselves through their own greed and stupidity, says the Gary North at the Tea Party Economist. What’s that you say, you thought all Tea Party people were drooling at the mouth troglodytes? Not hardly. I disagree with North on many things but not on this.

The power elite’s members do not sit in the cigar smoke-filled rooms of the history textbooks. Most of them do not smoke these days. Indeed, their non-smoking status is one mark of their superior status. But, just like the old political bosses, they depend on politics for their position. That is their Achilles heel. By becoming dependent on politics to protect themselves from free market competition, they will eventually overplay their hand. They will bet the farm — and ours — on a busted flush. Imploding debt will remove them from the scene.

However, what comes after that could well be what happened to USSR when it imploded. Party higher-ups and gangsters looted what was left and made the criminality overt. That doesn’t have to happen here.