"When we organized our state," adds Charles Pasqua, a former Gaullist minister, “we were bold enough to imagine that it was a model not only for France, but for the whole world."

The French were so proud of their 'civilization,' they offered it to the rest of the world. Unbelievably, taking the 'mission civilisatrice' to its African colonies, the children of dark tribes learned about 'our ancestors, the Gauls.'

The centralized welfare state took a big leap forward in France in the 1930s under Léon Blum... and in America under Franklin Roosevelt in the same period.

And now, a kind of heady, vainglorious, feeblemindedness has taken hold in Washington. Led by the neo-cons, Americans see themselves as gods... as masters of the universe who intend to remake the world in their own image.

"Western Europe is literally a dying continent, demographically and spiritually," says Father Richard Neuhaus, a catholic theologian with friends in the White House, "whereas in America, people are energetic, vibrant, filled with technical expertise, whistles and bells."

Washington has become, like Paris and Rome before it, the place where all roads lead.

The city "is full of foreign lobbies wanting something from America," explained former National Security Agency director Lt. Gen. William Odom. "Why would you want to lobby Chirac - to change the kind of cheese or something?"

While the French worry about cheese and vacations, Americans dream of world conquest.

The neo-cons want to make America into not just a Great Power, but a "spectacular state." And who stops to count the cost, when such greatness is at hand? Netting expected receipts against anticipated expenses, researchers found a hole of $44 trillion - or nearly half a million dollars for every family in the nation. But so what, it is only money! And money is meant to serve the spectacular state...as are its citizen/soldiers. Heck, in such a country, even God is a servant of the state. Elite neo-cons do not pray to God (except to offer an example to the lumpenvoters); they command Him. Such a country is no longer a nation under God, explains neo-con intellectual Michael Ledeen, but over Him:

"Dying for one's country doesn't come naturally," says he, perhaps cribbing from Osama bin Laden. "Modern armies, raised from the populace, must be inspired, motivated, indoctrinated. Religion is central to the military enterprise, for men are more likely to risk their lives is they believe they will be rewarded forever after for serving their country."

Communism collapsed in Russia. But it was hardly a victory for American liberty. No social welfare programs were cancelled in the U.S. or Western Europe. Instead, they expanded...and now the nation rushes towards its own rendezvous with the Spectacular Socialist State...following in the footsteps of the French!

"The so-called conservative revolution of the past two decades," writes our favorite member of Congress, Ron Paul of Texas, "has given us massive growth in government size, spending and regulation. Deficits are exploding and the national debt is now rising at greater than half-trillion dollars per year. Taxes do not go down - even if we vote to lower them. They can't, as long as spending is increased, since all spending must be paid for one way or another... believers in limited government are now shunned or laughed at... Government is bigger than ever, and future commitments are overwhelming... The country is broke, but no one in Washington seems to notice or care."

Oooh... how the world turns. When the sane man looks ahead, his face turns gray as he sees the spectacular state making a super spectacle of itself.

Already, an American feels freer, which is to say more American, in Paris, France than in Paris, Texas. He can smoke where he wants to. He can drive faster. He can wear a green sarong and bathroom slippers down main street without anyone hassling him (though perhaps he can do that in Paris, Texas, too - we don't know anyone who has tried!)

"And guess what," said our sarong-modeling analyst, Dan Denning, "when you add in state, local, and federal taxes... there is really not much difference between overall tax rates in Europe than in America. In fact, depending on your circumstances, you can pay less in taxes in Europe."

Not only that, but getting into tax trouble is less threatening. Most tax cases are handled as civil matters. It is very rare for a person to go to jail for tax fraud. In general, only one Frenchman goes to jail for every 10 Americans.

And last week, our calculator revealed another wart on the derrière of America's spectacular state - one the size of Rhode Island. Dividing per-capita GDP by the number of hours worked per person, we discovered that the average American's hourly productivity is lower than that of his French counterpart! 

Oh, what shame...what humiliation...what embarrassment. 

Will we ever be able to hold our heads up again? For now we discover that the American super-duper consumer economy fails the critical materialist test - the same one that proved fatal to the Soviets: it just doesn't deliver the goods. Americans work night and day - 400 hours more per year than the average Frenchman - to try to keep up, but they do not grow rich. Instead, they go into debt. So far, the dollar standard system casts such an eclipse-like shadow over all the earth they hardly notice. They spend and think themselves wealthy. But the world turns. And day by day, that rosy-fingered dawn creeps towards them...

A man might be pessimistic about all this. Or he might not. Harder times are coming. But better ones too.

Bill Bonner

P.S. “The modern-day, limited-government movement has been co-opted,” says Ron Paul. “The conservatives have failed in their effort to shrink the size of government. There has not been, nor will there soon be, a conservative revolution in Washington. Political party control of the federal government has changed, but the inexorable growth in the size and scope of government has continued unabated. The liberal arguments for limited government in personal affairs and foreign military adventurism were never seriously considered as part of this revolution.

“Since the change of the political party in charge has not made a difference, who's really in charge? 

“If the particular party in power makes little difference, whose policy is it that permits expanded government programs, increased spending, huge deficits, nation building and the pervasive invasion of our privacy, with fewer Fourth Amendment protections than ever before?”

Ron Paul’s speech before Congress last Wednesday is a must read...

See: “Neo-conned”
http://www.agora-inc.com/reports/901SIOAB/RonSpeech/

Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter publishing companies, and the author of the free daily e-mail: The Daily Reckoning (www.dailyreckoning.com ). He is also the author of “Financial Reckoning Day: Surviving The Soft Depression of The 21st Century” (John Wiley & Sons) due out in September.