If you're like me, no expert in economic theory, there are parts of the bailout discussion which make your eyes turn glassy. However, one does not need to be fluent in Austrian or Keynesian schools of thought to understand that current proposals by members of the Federal Reserve and Executive branches of our government border on, if they do not completely cross the line, criminal activity.
Paulson's desire for total authority with no oversight is far more than just cynical politics.
President Bush's speech last Tuesday, all of 15 minutes worth, was an attempt to justify and explain the extreme measures proposed. Unfortunately it raised more questions than it answered. It was also, even to this layman, full of half-truths and contradictions. The defining moment in the speech was when Bush claimed that he was not prone to intervening in markets but in this case he had to act because the market “wasn't functioning properly.”
What he meant to say was that the market was not behaving the way that financial experts employed by the government, to a man who are Keynesian theorists, needed and wanted it to behave. The fact is, the market is acting in a perfectly rational way to the completely irrational manipulations by these same people. The market has no confidence in mortgage-backed securities at past prices. It's clear that these tar-babies should be sold to the highest bidder, those who were dumb enough to invest in them should cut their losses, and we should move on with our lives. Those companies which speculated, should either just go bankrupt or liquidate and learn a lesson. The problem with this is that doing so would reverse the fortunes of a good number of Wall Street moguls who not only profit from poor business practices and deception, but who also finance the political campaigns of most of Washington's politicians.
So desperate was Paulson to get these measures through Congress, he literally got down on one knee and begged Nancy Pelosi to make sure the measure passed in the House. Is that the action of one who has your best interest at heart or his own? That is the action of a very desperate man. Bush has proven himself desperate as well. If he has intended to look and sound Presidential this week, he has failed miserably. He looks to be the water boy for the elite bankers of America. And he's in a hurry. In 50 odd days, we elect a new President. What happens if the bailout is not passed, and the things that Paulson has been doing remains judicially scrutable? This seems far more a concern of the administration than they would lead you to believe.
I mean, really. If they're so truly concerned about the impending economic meltdown, and they are serious about this, why weren't they so concerned even one week ago? In spite of a mountain of evidence that has been available to them since 2001, the administration deliberately ignored that data and tried to mislead the public about the condition of the economy. And while they were telling everyone to just pretend there wasn't a fundamental problem with the unlimited credit that the Federal Reserve was pumping into the economy, their buddies were gobbling up mortgage-backed securities like they were tulip bulbs.
Here are just some examples of this:
February 11, 2008 – “This report indicates that our economy is structurally sound for the long-term and that we're dealing with uncertainties in the short-term” – George W. Bush – announcing the findings of his crack economic team
July 15, 2008 – “I believe there's a lot of positive things for our economy.” – George Bush – on the day that we learned inflation had reached its highest point in 27 years.
September 16, 2008, – “Treasury Secretary Henry Paulson Jr. today told Americans they should remain confident in the U.S. financial system, in the wake of Lehman Brothers Holdings Inc. filing for Chapter 11 bankruptcy and Bank of America Corp. being purchased by Merrill Lynch & Co. Inc.”
See, it is quite clear that they are completely disingenuous. When it's convenient, the economy is sound and no taxes should be added to the public burden, and when it's convenient, the economy is doomed and the government needs to place a 30,000 dollar additional tax burden on every man woman and child in the U.S.
We are witnessing the final showdown for liberty. The bailout would only be a first step in a long chain of bailouts given the carte blanche authority it promises to the Treasury Secretary and indirectly the President himself. This first step represents a transfer of wealth that exceeds the entire military budget directly from you and me into the pockets of almost every Federal Reserve member-bank. Keep in mind that Goldman-Sachs, of which Paulson was once a very high executive, stands to benefit greatly.
If they win this, there will be no chance for us to regain any possible route to a restored Republic. It is now or never. The army that Ron built has to come together now for this last hurrah. Contrary to what we're being told, this bailout only allows the Fed and its members to prolong the bubble's burst and further take us down the road to poverty. Frankly, I am certain that this is their intent and I do not intend to sit idly by while they further ruin this once-great country. How about you?Tweet