Category Archives: Federal Reserve Bank

Keynesian Commies

Economy, Federal Reserve Bank, Inflation, Political Economy, Socialism

The American economy is being socialized. The government has nationalized the mortgage market and a good chunk of the investment banks. No principled argument is offered against the government acquiring a share of the auto industry. The debate hinges only on whether the government’s growing “investment” portfolio will solve the “problem” or not.

Government intervention in the economy invariably results in a complete takeover. Consequently, once it was agreed that this one industry, GM, was too vital to fail, the government went on to specify the conditions of the baleful bailout. The political ponces—the people who do nothing but sap the productive economy—want to see a viable business plan, no less.

The public and the experts don’t think to question the State’s financial savvy–its ability to “plan” a viable industry. Where is the money coming from—this too is never asked. The soundness of borrowing or printing funny money out of thin air to implement the grand plans—this is never doubted. (Except by Ron Paul.)

Public works and big-time spending by government are planned as ways to get the economy going. Even Lou Dobbs, The Independent, fails to question Paul Krugman, the Keynesian commie, as to why more credit expansion and spending is key to recovery.

Note: Every economist touting the Keynesian twaddle of spending ourselves out of the recession is speaking the language of politics, not economics. The laws of economics are natural, immutable laws. The government, like the average Joe and Jane, can’t spend itself out of bankruptcy. (Try suggesting that to your banker, won’t you?)

With its capacity to inflate the economy with worthless fiat money, all the state does is pacify some politically powerful debtor sectors, to the detriment of politically powerless creditor sectors and other solvent citizens. At least we can hope that’s all they’ll do: The difference between Generic Joe’s insolvency and the government’s is that the first will not bring down the entire country.

A good guide to the perplexed is Mises.org’s “Bail Out Reader.”

Update II: ‘Monetary Freedom and Its Opposite’

Economy, EU, Federal Reserve Bank, Inflation, Political Economy, The State

Writes Mark Thornton of the Ludwig von Mises Institute:

“As we enter the era of decline for the dollar all sorts of reforms will be used to address this decline and the economic instability it causes. However, reforms designed on Wall Street or in Washington will not work and will amount to nothing more than rear guard action by the moneyed interests that control the government.

The only true path to reform is monetary freedom. We have gone from a situation where money was entirely free from government intervention to one that is completely dominated by government. Instead of privately minted coins made from precious metals we now have a system of government-printed paper fiat currency. We have gone from a system of private banking that provided bank notes and checks for demand deposits to one where banks are completely regulated by the central bank and a host of other regulatory bodies. The idea that our current financial mess resulted from a lack of regulation is truly laughable. Of course this process has taken centuries to complete. By giving up our monetary freedom—particularly over the last one hundred years—we have given government the ability to grow in size and scope and to achieve unthinkable levels of power. Every step forward towards government control of money has resulted in social chaos and economic destruction. The real economy only grows in the interludes when monetary mischief is at a minimum.”

[Snip]

Pay attention to the section, “What do we need to do as individuals?”

Update I: As always, Pat Buchanan delves well into the history of events–in this case The Bretton Woods Agreements, and the ongoing, current attempt to recreate a second Bretton Woods by unseating the US and its fallen currency. What I don’t get is why is Pat so confident that a “global central bank, the Fed of the world economy,” will not come to pass. He claims “Americans are not going to fund such a bank, nor cede it authority, nor abide by its dictates. We are not yet a Third World nation dependent on the IMF.”

Why Not? Whence comes the confidence? Pat’s courage and convictions are not shared in Washington and on Wall Street. (Or on “Main Street,” for that matter.)

Update II (Nov. 15): The G-20 Summit, where G stands for Golem, has concluded. Some humor has been injected into this solemn affair, as the central planners’ affirmed “their commitment to free market principles.” Another thing to tickle the funny bone: the commitment these counterfeiters made to “promoting integrity in financial markets.” Nothing about integrity in government. I guess that’s a contradiction in terms.

Update II: The Obama Presidency: Hamiltonian Curse, Marxist Mess, Or Both? (Part I)

Barack Obama, Classical Liberalism, Federal Reserve Bank, History, John McCain, Political Philosophy, Ron Paul

On WND.com, “Obama Presidency: Hamiltonian Curse or Marxist Mess?”:

I interview my good friend Thomas J. DiLorenzo about his new book, Hamilton’s Curse: How Jefferson’s Archenemy Betrayed the American Revolution—and What It Means for America Today, with relevance to the events of the day.

Tom DiLorenzo is professor of economics at Loyola College in Maryland, and the author of The Real Lincoln, Lincoln Unmasked, and How Capitalism Saved America.

Update: Says professor DiLorenzo:

“We are a nation of tax slaves for the benefit of our masters on the Washington, D.C. plantation. …”

AND:

“Whenever you hear the phrase ‘living Constitution’ [which you’ll hear a great deal from president elect Obama], just substitute the word ‘no’ for ‘living,’ and you’ll understand what it means.”

Be sure to follow up with part II of our conversation on IlanaMercer.com.

Update II: Part I of the interview is playing it again on WND:

PLAY IT AGAIN, SAM
Obama presidency: Hamiltonian curse or Marxist mess?
Exclusive: Ilana Mercer talks to Tom DiLorenzo about new book exposing Founding Father
–WND

You know where to find Part II.

Shedding Light Where Others Shed Only Darkness

Constitution, Economy, Federal Reserve Bank, Morality, Political Economy, Ron Paul

Ron Paul (via LRC.Com) on the moral, constitutional and economically sound obligations of government: enforcing contracts, not violating them, as it’s doing with the “imprimatur” of the Sell-Out Bill.