| Obama's economic team seems to confirm at first | | | | legislators ignored the people and worked to find a |
| glance that all his talk of "change" really means more | | | | way to ram it through anyway. The Senate added |
| of the same - "more bailouts, more government | | | | billions of dollars worth of enticements to help get it |
| intervention, more addressing symptoms rather than | | | | passed. So, even though handing over $700 billion to |
| causes - along with greater deficits, and massive | | | | reckless companies on Wall Street seemed like a bad |
| increases in government spending," which our illustrious | | | | idea, adding an extra $6 million tax break for makers |
| leaders in Washington superstitiously believe can | | | | of children's wooden arrows helped smooth things |
| restore us to economic health. As with all superstitions, | | | | along. |
| no logical argument or historical evidence can shake it | | | | Treasury Secretary Paulson had told the nation that |
| away. Besides, it gives them reason to spend, which | | | | the bailout money would buy up bad assets from |
| they love to do anyway. | | | | banks (like nonperforming mortgages and "toxic" |
| There is nothing our "masters" in Washington: Obama, | | | | mortgage-backed securities) in order to revive |
| Barney Frank, Chris Dodd, or Barnanke at the Fed can | | | | inter-bank lending. Everyone (administration officials, |
| do to improve the situation, but they can prolong it, and | | | | congressional leaders, the media, state sponsored |
| that is what they are doing. | | | | economists) agreed that it was the right thing to do. |
| Although they don't understand how we got into this | | | | After it passed, they changed their minds. First, they |
| situation, we must, in order to find our way out of it. | | | | postponed buying up the bad assets in favor of |
| No novel theories, just a layman's understanding of our | | | | exchanging government money for bank shares, even |
| present economy, what should be done next, and | | | | if banks didn't want to sell. Then Paulson just |
| some important ideas that have been forgotten by | | | | abandoned the idea of purchasing the bad-assets. So |
| Americans for far too long, a true free-market | | | | the "rescue" plan's solution that was vital to save the |
| perspective - specifically the ideas of Ludwig von | | | | nation, no make that the world! was forgotten with |
| Mises and F. A. Hayek - explain our crisis which many | | | | Paulson later admitting that he knew from the |
| economist and financial analysts do not fully | | | | beginning it was the wrong solution. |
| understand, and which the usual theories fail to | | | | Next consumer credit needed saving, so that "millions |
| adequately explain. These ideas are not new. | | | | of Americans," as Paulson said, could "finance |
| They've simply been neglected. | | | | everyday purchases." So, it's a healthy economy when |
| As usual, government officials first misdiagnosed the | | | | people are "financ[ing] everyday purchases"? Well, |
| problem, giving themselves a pass and blaming others | | | | according to Paulson and the government it is. |
| for the problem. They looked at the Great Depression, | | | | Therefore, the obvious answer is to prop up an |
| but got the lesson wrong. Next, they told America that | | | | unsustainable system based on borrowing and |
| the government needed to follow the same | | | | consumption instead of encouraging people to live |
| wrong-headed policies that prolonged the Great | | | | within their means as the market is trying to do. |
| Depression in order to save us from the current crisis, | | | | Government officials, the sound economist that they |
| creating, as Gerald Celente calls it, "The Greatest | | | | are, usually can't see the obvious, but German |
| Depression." | | | | chancellorAngela Merkel did correctly warn in |
| Beginning with massive bailouts, they are prolonging | | | | November 2008 that Washington's policy to create |
| what the market would have cured in a shorter time. | | | | and borrow more money would simply sow "the |
| Despite the people's overwhelming rejection of the | | | | seeds of a similar crisis in five years' time." |
| Bush administration's "rescue plan," Congress passed it | | | | America, having the wonderful "choice" between |
| in September 2008. Why? According to the Center for | | | | Obama and McCain, who both agreed on the |
| Responsive Politics, the securities and investment | | | | congressional bailout package, voted for "change." |
| industry contributed $53 million to congressional and | | | | Well, it felt good at least. That's what matters, even if |
| presidential candidates in the 2008 election. Those | | | | real choice isn't permitted. So, by the end of 2008, |
| voting for the "rescue" plan on 29 September received | | | | Washington had loaded onto the American people a |
| 53 percent more money in campaign contributions | | | | $7.7 trillion debt. |
| from banks and securities firms than those who voted | | | | And they're just starting. |
| against it. Surprise. Surprise. | | | | Inspired by Meltdown by Thomas E. Woods Jr. |
| Despite rejecting it at first, because it had to pass, | | | | |