Topic: Presidential Campaign 2008
Inquiring Minds Want to Know: Did McCain Just Get Torpedoed? Senator John McCain got asked what at first glance appears to be a bizarre economic question...until you look further.by CT Johnson
(libertarian)
Saturday, January 26, 2008
During the January 24th, 2008 Florida Republican Presidential debate Senator John McCain was asked what appeared to be a very odd economic question from Congressman Ron Paul. An apparently befuddled Senator McCain replied in a manner that did not appear to answer Congressman Paul's question. In fact, Senator McCain did not seem to answer the question at all, but his response could prove to be quite revealing to inquiring minds. The whole series of question and answer would most likely make most observer's go 'Huh?'. However, upon a closer look and a little research it looks like Congressman Paul was trapping Senator McCain into a lose-lose situation. The verbal torpedo to Senator McCain's starboard bow seemed to send him into evasive maneuvers.
A further explanation is forthcoming, but first here is the written transcript of the question and answer:
REP. PAUL: My...my question is for Senator McCain. This is an economic question that I wanted to ask. It has to do with the President's Working Group on Financial Markets. I'd like to know what your opinion is of this and whether you would keep it in place, what their role would be, or you would get rid of this group. And if you kept the group, would you make sure we would see some sunlight and know what they're doing and how they're being involved in our markets?.
SEN. MCCAIN: Well, obviously we'd like to see more sunshine. But I as president, as every other president, rely primarily on my secretary of the Treasury, on my Council of Economic Advisers, on the head of that. I would rely on the circle that I have developed over many years of people like Jack Kemp, Phil Gramm, Warren Rudman, Pete Peterson, and the Concord Group. I have a process of leadership Ron, that is sort of an inclusive one that I have developed, a circle of acquaintances and people that are supporters and friends of mine who I have worked with for many, many years..
REP. PAUL: So you'd get rid of the group?.
SEN. MCCAIN: You remember back in 1982 when Phil Gramm... Phil Gramm and Warren Rudman and Gramm-Latta and all of those people got the first real tax cuts done, the real first real restraints in taxes. I was there. You were there. And I rely on those people to a much larger degree than any, quote, "formal" organization, although the secretary of Treasury is obviously one of the key and important posts that I would have.
Now, like many of the observer's of the debate, you may have said to yourself 'What?'. It all comes down to what the President's Working Group on Financial Markets is. Most likely a handful of astute viewers went and Googled this term. You can also bet that any of the candidates that didn't know what the President's Working Group on Financial Markets was does now.
Once one understands what the President's Working Group on Financial Markets is, then the next obvious question is...does Senator McCain know what it is. If Senator McCain doesn't know what the President's Working Group on Financial Markets is after decades of being in top Federal positions of power...well he looks pretty silly. Let's assume that McCain is not ignorant and knows what the President's Working Group on Financial Markets is. The question then begs...why did Senator McCain dance around the question like a chicken with its head cut off? Supposing Senator McCain does know what the group is then why did he not answer the question and make it clear that he knew of it and whether he would make any changes?
Congressman Ron Paul was like a sly fox. Asking Senator McCain that question was a win/win for Congressman Paul. Senator McCain either looks silly on the economic front by not knowing what the President's Working Group on Financial Markets is after working at the highest levels in Federal Government over decades. On the other hand he appears elusive and people have to wonder why he is being elusive.
The President's Working Group on Financial Markets was established on March 18th, 1988 in response to the nefarious market turmoil that started on October 19th, 1987...better known as Black Monday. It officially is to give private and legislative solutions for "enhancing the integrity, efficiency, orderliness, and competitiveness of US financial markets and maintaining investor confidence". It is comprised of the following:
The Secretary of the Treasury, or his designee (as Chairman of the Working Group);
The Chairman of the Board of Governors of the Federal Reserve System, or his designee;
The Chairman of the Securities and Exchange Commission, or his designee; and
The Chairman of the Commodity Futures Trading Commission, or her designee.
This sounds all sweet and dandy at first glance. However, one must remember that there are always winners and always losers on any given day in the market. It is widely believed that the President's Working Group on Financial Markets is used to manipulate markets in the event of market crashes. This also sounds like a very good idea at first. This however is market interference and manipulation at its highest level. In the event of a market crash, which may be a very real correction that a free market requires to revalue itself to appropriate levels, this group would very likely interfere. The average trader not in the know could very well become a big loser. It would be hard to imagine that there would NOT be people in the know...just look at the list of those involved in the working group above. Most likely the big bankers attached to the Board of Governors of the Federal Reserve and others would have all of the information they need. They would basically know what was going to happen in the market and to what level they would manipulate it with US taxpayer dollars.
Congressman Paul, the sly fox that he is, is once again bringing real institutional problems to the forefront. With his challenging of the Federal Reserve, the lack of respect for the Constitution, and now the President's Working Group on Financial Markets, he is setting the Presidential dialogue in the Republican race. Notice how the other candidates have been talking up the Constitution?
It is very likely that the other candidates caught that question and have had their advisors give them a run down on it. It is quite likely that Congressman Paul will bring this topic up again and a dialogue will start on the subject. The Federal Reserve and the President's Working Group on Financial Markets are nothing more than Centralized Planning...nothing more than a socialist approach to running a market. True conservative belief is diametrically opposed to Central Planning and has always favored a true free market which we regretfully do not have today. Congressman Paul knows that we do not have true free markets and that just like Central Planning did not work effectively in the USSR, it does not work efficiently anywhere.
So was Senator McCain ignorant of the President's Working Group on Financial Markets or does he just support Central Economic Planning like his socialist counterparts in the Democratic Party? Senator McCain made some erratic evasive maneuvers, but in the end it appears that Congressman Paul torpedoed him in his starboard bow. Will this prove to be one of many hits that sinks the McCain battleship? Only time will tell...
The sly Congressman Paul and his Revolution are still dangerous and should not be discounted. Congressman Paul has plenty of funds and will continue to challenge socialistic and vampiric ideas that are plaguing America and have even crept into the Republican Party.
Time will tell if Americans are ready to throw off the Vampiric/Socialistic plague afflicting this great nation. It is literally Ron Paul vs. The Vampires.
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Excellent article. I trade stocks regularly, and I was extremely pleased to see Ron Paul bring this issue to the public. He is constantly raising the quality of discussion, and it's up to Americans to wake up, stop voting for whoever has the best smile and start voting for the most competent, knowledgeable candidate.
The Working Group on Financial Markets is usually called the PPT -- Plunge Protection Team. A lot people (including myself) believe that it acted last Wednesday (January 23, 2008) on a rally that brought the indexes from -3% to about 2% in a couple of hours. It had all the signs of massive, well timed futures buying. It's most likely manipulation because it went totally against the trend (which was to panic and sell everything). The first leg of the rally cut the 3% loss and created a short squeeze. The second leg was created by people covering short positions.
It's really satisfying to see this subject being openly discussed, and I really appreciate that, but am not sure that true conservative belief should be described as "diabolically" opposed to central planning. (Maybe "diametrically" opposed?) A true conservative might find central planning itself to be "diabolical" though.
Great article. It was a very technical question that is not part of the vocabulary of MSM talking heads. The viewers may have been lost but a presidential nominee should have a clear answer. I think McCain is familiar with the group but tried to play it off for the camera. However i did have a problem with Ron Paul's delivery.
It seemed that the question was pre-written and Ron was trying to recall it word for word a bit nervous maybe. The word sunshine should have just been "transparency". I would have liked to see a follow up question along the line of
"Can you explain to our viewers what the working group is"?
I'm a big fan of Dr Paul. But When he asked this question I was left scratching my head just like McCain. Now that you've explained it, it makes perfect sense, but I suspect it flew over most people's heads. Since other candidates took their time in asking their questions, often giving a sermon in the form of a question, Why couldn't Paul do the same? I think he could have taken an additional 60 seconds to explain to the public what the "plunge protection team" is, thereby allowing a lot more people to appreciate his knowledge of financial markets. Ron Paul is probably the greatest candidate in half a century. If he would invest in some debate coaching, a lot more people would appreciate that fact.
Likely, McCain knew about the group and didn't want to talk about market manipulation in public.
"I think he could have taken an additional 60 seconds to explain to the public what the "plunge protection team" is ..."
If he had, McCain would have been clued in, too.
"Ron Paul is probably the greatest candidate in half a century. If he would invest in some debate coaching ..."
First sentence is true. Including his debating ability which is tops. If he got "coaching" he'd sound just like al the other polished political hacks who have nothing to say. He's the "greatest" because he speaks from his heart and mind, not from some other person's "coaching." His intellect and honesty are so unusual in political debates that its uniqueness confuses people. Lysander "was left scratching his/her head just like McCain". What's wrong with that? Causes one to investigate and learn. None of the other candidates challenge us like that - they feed us their pap, babble down to us like we're idiot children. Ron Paul makes us think and investigate what we don't understand. He is raising us all up beyond ourselves. Is that not what every great leader does?
CT... What an excellent summation. I'm learning a lot about financial matters on the larger scale but will never have a chance to practice it. I'm small potatoes but even your explanations are very beneficial and I appreciate your article. Dr. Paul has taught me a lot about more than just economics. He has clarified a few things in the Constitution I hadn't thought about.
You know that the other candidates are mimicking Dr. Paul so as to ingratiate themselves with the populace. I personally don't think they are sincere. Thanks.
I vote for Ron Paul or not at all!
I have to agree completly with tquigly, with out Dr. Paul bringing the "PPT" into light I would never have even known about its existence. I learned (another) something new today. His ability to bring esoteric (but HIGHLY important) topics to the debate table is what is so fascinating about him.
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