Wednesday, September 24, 2008
Just say, "NYET!"
The following is from an e-mail received from the Ron Paul '08 campaign. I didn't edit much
No doubt Paul can be a little myopic about his economics message (even if he is right) but this warning is spot on. I've already fired off e-mails to Senators Bayh and Lugar and will be doing the same to Dan Burton and all of Indiana's House contingent.
"The bailout package that is about to be rammed down Congress' throat is not just economically foolish. It is downright sinister. It makes a mockery of our constitution, which our leaders should never again bother pretending is still in effect. It promises the American people a never-ending nightmare of ever-greater debt liabilities they will have to shoulder. Two weeks ago, financial analyst Jim Rogers said the bailout of Fannie Mae and Freddie Mac made America more communist than China! "This is welfare for the rich," he said. "This is socialism for the rich. It's bailing out the financiers, the banks, the Wall Streeters."
That describes the current bailout package to a "T." And we're being told it's unavoidable.
The claim that the market caused all this is so staggeringly foolish that only politicians and the media could pretend to believe it. But that has become the conventional wisdom, with the desired result that those responsible for the credit bubble and its predictable consequences - predictable, that is, to those who understand sound, Austrian (Trust me, you don't have to talk like Ahnold to figure this one out -HT) economics - are being let off the hook. The Federal Reserve System is actually positioning itself as the savior, rather than the culprit, in this mess!
• The Treasury Secretary is authorized to purchase up to $700 billion in mortgage-related assets at any one time. That means $700 billion is only the very beginning of what will hit us.
• Financial institutions are "designated as financial agents of the Government." This is the New Deal to end all New Deals.
• Then there's this: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." Translation: the Secretary can buy up whatever junk debt he wants to, burden the American people with it, and be subject to no one in the process.
Even some so-called free-market economists are calling all this "sadly necessary." Sad, yes. Necessary?
Our one-party system is complicit in yet another crime against the American people. The two major party candidates for president themselves initially indicated their strong support for bailouts of this kind - another example of the big choice we're supposedly presented with this November: yes or yes. Now, with a backlash brewing, they're not quite sure what their views are. A sad display, really.
Although the present bailout package is almost certainly not the end of the political atrocities we'll witness in connection with the crisis, time is short.
The issue boils down to this: do we care about freedom? Do we care about responsibility and accountability? Do we care that our government and media have been bought and paid for? Do we care that average Americans are about to be looted in order to subsidize the fattest of cats on Wall Street and in government?"
The Paulson Plan is a naked power grab and a huge boondoggle for the taxpayers, who stand to be the ultimate losers in this game. The pigs are already lining up at the trough. Think Warren Buffet's investment of $5,000,000,000 in Goldman is "a vote of confidence in the crisis-stricken banking system?" (WSJ) Yeah, me neither.
No business is too big to fail. The world would have gone on without the Chrysler Corporation, and will survive the demise of the fat cats on Wall Street.
My opinion can be summed up in two words:
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