print“The subprime mortgage cesspool is the latest acquisition in the government’s growing disinvestment portfolio.
If you’re working from the right set of first principles, you’ll understand that the State should not have an investment portfolio.
When one works from solid first principles, predicting what will happen upon their violation is easy. What isn’t easy is arriving at the correct principles in the first place.
Holding immutably true, principled positions is both politically unpopular and intellectually unintuitive to the mindless multitudes.
But not for one very clever economist—Bob Higgs—who, like another very clever statesman—Ron Paul—predicted the mortgage miasma into which the country has slid.”
That’s an excerpt from my new WND column, “Quick-Fix Quacks.”
Update: This apt comment from Bob Higgs, whose commentary I quote extensively in “Quick-Fix Quacks”:
“People seem to be especially receptive to this message right now, perhaps because the cannibals in Washington are consuming their substance right down to the bone. Of course, the House just passed the bailout bill–the worse-than-original one–after the appropriate items had been added to assist formerly resistant members in further plunder. Democracy in action.”
Bob
What I have not heard is what the presidential candidates propose to prevent a future finacial meltdown like this one. As I understand Obama supports more regulation, but what and how? Perhaps someone should point out to him that government intervention in the first place is the cause of the meltdown. I also have not heard any of them warning financial institutions that they would not allow another bailout in future. They seem more intent on fixing the blame on each other’s party, obviously for political gain. In essence they seek to remedy the symptoms instead of the causes, which I suppose is understandable if Higg’s assessment of the American people “wanting to have everything and wanting it now” is correct. Keep the voters happy now, get into power and hope the s*** does not hit the fan in the next four years. Your WND article says it all.
It’s a good column, Ilana. Problem is that, long term, nothing really works; everything’s a set of short and medium term tactical accomodations. We could live with this, if only the pols were engaged in short term tactical accomodations for the national benefit, rather than their own. Sadly, they ain’t.
Most people have little use for principle if survival is at stake. That is the brilliance of Dr. Ron Paul. He knows where the country should head to but recognizes that many have a stake in the current system. He seems to be the perfect candidate to transition us to a rational, principled society.
Dependency is an addiction. [And addiction is a choice.–IM] You and Higgs are spot on. However, given a choice between being a “house servant” in Charleston SC or a fur trapper on Oregon in the early 19th Century – most people would opt to be comfortable slaves. If de-Massa: McMussolini, O’Benito, FDR, whomever – feeds us our Social Security (the name Social Security says it all) etc. – then we can all be smilin’ patriots on the American plantation. The Putsch of 2008 called “economic rescue” is merely another dose of crack to the counterfeit money (Federal Reserve) addicted public. And most people like it or, seeing no popular alternative in the mainstream media, just obsess on social issues like Gay Marriage.
Another excellent article about Elite stupidity. Unfortunately the Republicans seem to have nearly as many idiots among them as do the Democrats, and all the idiots in the electorate keep electing and re-electing the Elite idiots into political office; evidently there are very few honest and intelligent people in the United States who seek political office, or get elected to political office.
As has happened time and again throughout history, the sheeple are going to discover the price of intellectual laziness.
Those who lead them have lost sight of the objective, having come to believe their own lies.
Everyone is now supposed to chant the mantra that you can get something for nothing, forever (or at least just one more time), while averting their eyes from the looming tsunami bearing down upon them. The hope is that by ignoring it, it won’t be true.
And because of it, we’re all going to get wet.
Concerning addiction being a choice – in a democracy, the “bipartisan mainstream” (apeishly following a plutocratic media) makes the choice. Discounting living in a cave or shack like the Unabomber, we are all drawn into the dependency by the majority (e.g. the sheep). Sad, isn’t it. Even when I and others try to save and invest to not be solely dependent on Socialistic inSecurity, the Weimar Government debases the value of savings, punishes thrift, and rewards deadbeat dependents.
Damn good article!
They are all at fault. Please spread this video I made. http://www.youtube.com/watch?v=vLUbb2DUYGk
Buck
“Concerning addiction being a choice – in a democracy, the “bipartisan mainstream” (apeishly following a plutocratic media) makes the choice.” Myron
I agree. The die was cast when free market capitalism was successfully blamed for the damage that the government backed fractional reserve banking cartel caused in the 1920’s.
Many men who desired to work could not find jobs with the unemployment rate around 25% in the Great Depression of the 1930’s. Socialism was inevitable at that point.
Bankers, are you proud of yourselves? Think again.
Bravo!
It is rare to read commentary that explicitly upholds the existence of moral principles–norms that one ignores or violates at one’s peril. Ilana understands that such principles are neither negotiable nor optional.
Distort or destroy market pricing, and the result is the waste of precious capital. Wield the coercive power of the state to punish the virtuous, who earn and save; while rewarding mediocrities, who consume but rarely earn. The inexorable result is wealth destruction.
Cheer on the unproductive, hail the thoughtless, defend the thieving, turn virtue on her head. Watch society unravel.
And I thought Atlas Shrugged was fiction!
Great article, Ms. Mercer!