printSince the onset of the economic crisis, the din has grown louder from assorted international institutions. It goes without saying that the demands are never for a dispersion of power. There have been various lunges for EU types of controls over financial institutions. Most of the resistance to the pull has come not from the US.
For example, and as I documented over this space, the Canadian government, not the American one, resisted a bank tax suggested by the the global regulatory regime.
Ministers fanned out across the world to raise opposition to the proposal for avoiding another financial crisis. ‘Canada is, and will remain, opposed to a tax that would penalize financial institutions that remained strong and prosperous while many of the world’s banks failed,’ Clement told a press conference with Foreign Minister Lawrence Cannon.”
“In an apparent attempt to reignite damped discussions on a key regulatory issue,” reports the Wall Street Journal, “the IMF proposed that a half-dozen or so of the countries with the biggest financial centers—such as the U.S., U.K., and Japan—voluntarily agree to a set of guidelines to resolve failed systemically important international financial firms.”
Not-so curiously, in opposition are the European countries: “it is uncertain whether [they] want to cede sovereignty on the issue.” Some of these countries have also implemented austerity measures, which have angered hedonistic B. Hussein. Remember when our president instructed German Chancellor Angela Merkel to “print more money, not make it”?
If the IMF is looking for the political will to galvanize the globe, they will surely find it in the US.
I used to think that the big government tax and spend types were just slick tongued pr-cks trying to sell us a bill of goods in order to perpetuate a system whereby they could grasp the greatest amount of power. Now, I’ve come to the conclusion that our political and economic leaders, while being the low life snakes they appear to be, actually believe that the big government tax and spend way of doing things is the way to go. The reason they always look and sound so perplexed is because they can’t figure out why it won’t work. After all, they learned at Harvard that this is the way to go. Meanwhile every cab driver in Alabama knows that the way to grow an economy is get the government and their taxes out of it.
In reading the Keynesian vs. Austrian Economics arguments over the last two years or so; I’ve discovered that we have an apples and oranges situation. Austrian economics is the way to go for a stable economy in every area of life; however, Keynesian economics is strictly a government economic system. No one else can use it. Since it uses monopoly money and is played with between socialistic countries that live in a created world; they can ignore a balanced budget, deflating the money or inflating the money makes it easier to pay back loans. They don’t have to be responsible, when it goes bust; the government inserts a new printing plate into the press. Of course the citizens who live in an Austrian world lose their savings and retirement; but, the government just continues rolling along.