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- Feb 28, 2008
Back with another article, this one was REJECTED from being published because it was deemed "too critical and cynical" so it's an NT exclusive
For those who don't follow my posts...
Official Stock Market & Economy Thread | 2009: BuyGold Now
Sparknotes: Obama is stealing money from taxpayers so government can allocate it (socialism). He is helping ruin the dollar. Buy gold to save your financialfuture. This is a financial crisis that will be a monetary crisis that is ten times worse.
Barack Obama for the Loss
President Barack Obama has been characterized by many as America's long-lost savior. Running a campaign of trite rhetoric based around the words"hope," "change," and any combination of "yes," "we," and "can," Obama managed to easily win over Americanvoters, cynically critical of former President George W. Bush's inane federal expansionary policies. But more expansion of government and detraction fromthe Jeffersonian classical liberalism ideals mandated by our Constitution is yet another step in the wrong direction. Instead of fighting the root of theproblems America faces today-oversized government-Obama is helping it grow, with the support of naïve liberal college students everywhere.
Mr. Obama blamed the current economic crisis on greed and excess. Surely excess is the fundamental cause of bubbles, but there was no exogenous greed thatsuddenly overtook human nature in the last two decades. The excess was caused by the unsound monetary policy of former Fed chairman Alan Greenspan, who greatlyexpanded monetary supply and lowered interest rates below market levels, and overincentivization of derivative debt-financing and mortgage lending through therecent amendments to the Community Reinvestment Act and other laws signed by Clinton and Bush. This micro-managing caused malinvestment and misallocation ofcapital that the free market would have never allowed.
The excess was found in spending and borrowing. Mr. Obama now wants to solve this debt and consumption crisis by borrowing more to spend more with a$789 billion stimulus known as the American Recovery and Reinvestment Act of 2009. All of the stimulus money has to be borrowed or taxed, since the governmentruns a massive budget deficit that it wants to greatly increase. This is a prime case of spending outside of one's means, the initial cause of the crisis.
With the American debt bubble collapsing due to current Fed policies and the government's unprecedented deficit spending, this stimulus will be financed byquantitative easing, which is highly inflationary. Inflation is a tax on holders of dollars and Treasuries, so the wealth used for the stimulus will comelargely from taxpayers themselves. The government stealthily usurps the wealth through inflation tax and debt inflation and allocates it as it deems fit. Thisis otherwise known as socialism.
As the likes of Adam Smith, John Locke, Thomas Jefferson, David Ricardo, Freidrich Hayek, and Ludwig von Mises have proved time and time again, government willnever be as efficient or rational an allocator of capital as a free market. Government has short-term goals and political incentives that inhibit propercapital allocation, exemplified by the fact that almost all of the stimulus spending will occur before 2012 elections. Most importantly, government lacks theomnipotent real-time information of all supply and demand within an economy and its agents, something the free market possesses.
The stimulus itself is a prime example of the idiocy of socialism. The stimulus claims to spend to create new jobs, but clearly the wealth it spends comes fromthe American public. Taking Americans' wealth away through inflation causes unemployment in itself. As the age-old capitalist argument goes, why shouldtaxpayers be forced to trust politicians with their money? It essentially creates thousands of Bridges-to-Nowhere through its earmarks and spendingallocations. It is supposed to create $3.5 million jobs, which means about $240,000 is spent to create one job. The median annual salary in America is around$50,000. Why should the public give the government $240,000 to get them a job that makes $50,000 a year? Wouldn't it be cheaper to send a check for $50,000to each taxpayer?
The American economy is in crisis and the public demands a fix. What it doesn't realize is the source of the problem isn't the greed of capitalism,which is checked by the rise of interest rates because of a phenomenon known as supply and demand. The source of the problem is the greed of the FederalReserve and Congress, which kept interest rates artificially low and expanded monetary supply recklessly causing malinvestment. The public cannot be heldaccountable for this gross abuse of power, and in a fair society, the Fed would allow for market equilibrium rates and the government would slash spending andtax rates. Instead, the government burdens the taxpayer even further with inflation-financed bailouts, which cover the debts of big banks using taxpayerpost-tax wealth. Mr. Obama entrusts the Federal Reserve, a secretive and unchecked institution currently being sued for rejecting a Freedom of Information ActRequest, with the task of monetizing toxic debt. This is a clear incentive crisis, as the Fed, made up of people tied to the investment banking community,capitalize their friends with printed money, which is wealth usurped from the public, instead of letting failing banks fail. All of this occurs without anyaudit of the Fed's balance sheet. So much for transparency.
Congress scares the public into believing a few bank failures would spur a massive depression. In the recession of 1921, which featured the sharpest pricedeflation and liquidity contraction in American history, banks were allowed to fail, malinvestment was allowed to be purged, and the economy began to growagain in only eighteen months. In the contraction of 1929, banks were capitalized as good money was thrown after the bad, and the economy didn't reboundfor another fifteen years.
Franklin D. Roosevelt's make-work programs and New Deal prolonged the Great Depression. Lyndon B. Johnson's Great Society programs and deficit spendingcaused stagflation. Japan's quantitative easing and infrastructure spending in the 1990s prolonged a crisis from two years to a decade. Economic growthcomes from goods expansion, which is caused by production. Savings and investment are required for production, and this is catalyzed by market equilibriuminterest rates and purged malinvestment. Mr. Obama just wants to spend more. He thinks he and his government can determine the best way to allocateAmerica's aggregate wealth. As did Joseph Stalin and Tzar Nicholas before him. As did Adolf Hitler. As did Robert Mugabe.
The truth is Barack Obama is stealing the public's money. He's using some of that money to pay off government debt, some of it to keep dead banksalive, some of it to pay for Bridges-to-Nowhere, and some of it to give back to the public. Taxpayers pay for government expenditures through taxation, therates of which are set by congressmen voted in by the American people. But spending beyond the means allowed it is the government's worst vice. Through thequantitative easing and inflationary policies of today, the government is effectively raising tax rates by obscene amounts. This was never voted upon byCongress or allowed by the people. This inflation-financed taxation is purely without representation.
It is sad to see the total absence of Washington, Jefferson, Hamilton, and the like in today's political arena. If George Washington were alive today, hewould be appalled at Barack Obama's policies. Mr. Obama blames the free market for a crisis caused by interventionalism. Mr. Obama finances unprecedentedgovernment spending by devaluing the dollar and collecting inflation tax revenues. Mr. Obama increases the size of the government and its powers overAmerica's wealth allocation even from one of the biggest governments in history, the Bush administration. Mr. Obama adds $6800 per household of debt to analready debt-ridden nation. Mr. Obama puts further unsustainable debt burden on the shoulders of future generations in America. A wise Thomas Jefferson oncesaid, "No generation has a right to contract debts greater than can be paid off during the course of its own existence." Never is that more relevantthan today.
Mr. Obama is a step up from his predecessor George W. Bush, as well as his presidential opponent, John McCain, but only tangentially. Even worse that his grossunderperformance in the foreign policy sector (Pakistani air strikes, more troops in Afghanistan, and support for Israel come to mind), which has angered eventhe most liberal of supporters, Mr. Obama's most condemnable actions thus far have occurred within the scope of the economy. He appointed the previous NewYork Federal Reserve chairman Timothy Geithner, who was at the root of the cause of this crisis and a former Goldman Sachs executive with a clear incentiveconflict, as the Secretary of the Treasury. He is furthering the totalitarianism gripping hold of America through its Federal Reserve and control of money.Where is the change? In just a few weeks, he has already forced economists to estimate the 2009 fiscal deficit to exceed $2.5 trillion, which is purely absurd,considering it will be mainly monetized. America was built upon liberty. Government's only role is to protect liberty, not to micro-manage growth. As JohnLocke said, "Government has no other end, but the preservation of property. The reason why men enter into society is the preservation of theirproperty." Can BHO confiscate the wealth of Americans and transfer its allocation to Congress and the Federal Reserve, as FDR and LBJ did before him? Yes,he can.
And he is.
For those who don't follow my posts...
Official Stock Market & Economy Thread | 2009: BuyGold Now
Sparknotes: Obama is stealing money from taxpayers so government can allocate it (socialism). He is helping ruin the dollar. Buy gold to save your financialfuture. This is a financial crisis that will be a monetary crisis that is ten times worse.
Barack Obama for the Loss
President Barack Obama has been characterized by many as America's long-lost savior. Running a campaign of trite rhetoric based around the words"hope," "change," and any combination of "yes," "we," and "can," Obama managed to easily win over Americanvoters, cynically critical of former President George W. Bush's inane federal expansionary policies. But more expansion of government and detraction fromthe Jeffersonian classical liberalism ideals mandated by our Constitution is yet another step in the wrong direction. Instead of fighting the root of theproblems America faces today-oversized government-Obama is helping it grow, with the support of naïve liberal college students everywhere.
Mr. Obama blamed the current economic crisis on greed and excess. Surely excess is the fundamental cause of bubbles, but there was no exogenous greed thatsuddenly overtook human nature in the last two decades. The excess was caused by the unsound monetary policy of former Fed chairman Alan Greenspan, who greatlyexpanded monetary supply and lowered interest rates below market levels, and overincentivization of derivative debt-financing and mortgage lending through therecent amendments to the Community Reinvestment Act and other laws signed by Clinton and Bush. This micro-managing caused malinvestment and misallocation ofcapital that the free market would have never allowed.
The excess was found in spending and borrowing. Mr. Obama now wants to solve this debt and consumption crisis by borrowing more to spend more with a$789 billion stimulus known as the American Recovery and Reinvestment Act of 2009. All of the stimulus money has to be borrowed or taxed, since the governmentruns a massive budget deficit that it wants to greatly increase. This is a prime case of spending outside of one's means, the initial cause of the crisis.
With the American debt bubble collapsing due to current Fed policies and the government's unprecedented deficit spending, this stimulus will be financed byquantitative easing, which is highly inflationary. Inflation is a tax on holders of dollars and Treasuries, so the wealth used for the stimulus will comelargely from taxpayers themselves. The government stealthily usurps the wealth through inflation tax and debt inflation and allocates it as it deems fit. Thisis otherwise known as socialism.
As the likes of Adam Smith, John Locke, Thomas Jefferson, David Ricardo, Freidrich Hayek, and Ludwig von Mises have proved time and time again, government willnever be as efficient or rational an allocator of capital as a free market. Government has short-term goals and political incentives that inhibit propercapital allocation, exemplified by the fact that almost all of the stimulus spending will occur before 2012 elections. Most importantly, government lacks theomnipotent real-time information of all supply and demand within an economy and its agents, something the free market possesses.
The stimulus itself is a prime example of the idiocy of socialism. The stimulus claims to spend to create new jobs, but clearly the wealth it spends comes fromthe American public. Taking Americans' wealth away through inflation causes unemployment in itself. As the age-old capitalist argument goes, why shouldtaxpayers be forced to trust politicians with their money? It essentially creates thousands of Bridges-to-Nowhere through its earmarks and spendingallocations. It is supposed to create $3.5 million jobs, which means about $240,000 is spent to create one job. The median annual salary in America is around$50,000. Why should the public give the government $240,000 to get them a job that makes $50,000 a year? Wouldn't it be cheaper to send a check for $50,000to each taxpayer?
The American economy is in crisis and the public demands a fix. What it doesn't realize is the source of the problem isn't the greed of capitalism,which is checked by the rise of interest rates because of a phenomenon known as supply and demand. The source of the problem is the greed of the FederalReserve and Congress, which kept interest rates artificially low and expanded monetary supply recklessly causing malinvestment. The public cannot be heldaccountable for this gross abuse of power, and in a fair society, the Fed would allow for market equilibrium rates and the government would slash spending andtax rates. Instead, the government burdens the taxpayer even further with inflation-financed bailouts, which cover the debts of big banks using taxpayerpost-tax wealth. Mr. Obama entrusts the Federal Reserve, a secretive and unchecked institution currently being sued for rejecting a Freedom of Information ActRequest, with the task of monetizing toxic debt. This is a clear incentive crisis, as the Fed, made up of people tied to the investment banking community,capitalize their friends with printed money, which is wealth usurped from the public, instead of letting failing banks fail. All of this occurs without anyaudit of the Fed's balance sheet. So much for transparency.
Congress scares the public into believing a few bank failures would spur a massive depression. In the recession of 1921, which featured the sharpest pricedeflation and liquidity contraction in American history, banks were allowed to fail, malinvestment was allowed to be purged, and the economy began to growagain in only eighteen months. In the contraction of 1929, banks were capitalized as good money was thrown after the bad, and the economy didn't reboundfor another fifteen years.
Franklin D. Roosevelt's make-work programs and New Deal prolonged the Great Depression. Lyndon B. Johnson's Great Society programs and deficit spendingcaused stagflation. Japan's quantitative easing and infrastructure spending in the 1990s prolonged a crisis from two years to a decade. Economic growthcomes from goods expansion, which is caused by production. Savings and investment are required for production, and this is catalyzed by market equilibriuminterest rates and purged malinvestment. Mr. Obama just wants to spend more. He thinks he and his government can determine the best way to allocateAmerica's aggregate wealth. As did Joseph Stalin and Tzar Nicholas before him. As did Adolf Hitler. As did Robert Mugabe.
The truth is Barack Obama is stealing the public's money. He's using some of that money to pay off government debt, some of it to keep dead banksalive, some of it to pay for Bridges-to-Nowhere, and some of it to give back to the public. Taxpayers pay for government expenditures through taxation, therates of which are set by congressmen voted in by the American people. But spending beyond the means allowed it is the government's worst vice. Through thequantitative easing and inflationary policies of today, the government is effectively raising tax rates by obscene amounts. This was never voted upon byCongress or allowed by the people. This inflation-financed taxation is purely without representation.
It is sad to see the total absence of Washington, Jefferson, Hamilton, and the like in today's political arena. If George Washington were alive today, hewould be appalled at Barack Obama's policies. Mr. Obama blames the free market for a crisis caused by interventionalism. Mr. Obama finances unprecedentedgovernment spending by devaluing the dollar and collecting inflation tax revenues. Mr. Obama increases the size of the government and its powers overAmerica's wealth allocation even from one of the biggest governments in history, the Bush administration. Mr. Obama adds $6800 per household of debt to analready debt-ridden nation. Mr. Obama puts further unsustainable debt burden on the shoulders of future generations in America. A wise Thomas Jefferson oncesaid, "No generation has a right to contract debts greater than can be paid off during the course of its own existence." Never is that more relevantthan today.
Mr. Obama is a step up from his predecessor George W. Bush, as well as his presidential opponent, John McCain, but only tangentially. Even worse that his grossunderperformance in the foreign policy sector (Pakistani air strikes, more troops in Afghanistan, and support for Israel come to mind), which has angered eventhe most liberal of supporters, Mr. Obama's most condemnable actions thus far have occurred within the scope of the economy. He appointed the previous NewYork Federal Reserve chairman Timothy Geithner, who was at the root of the cause of this crisis and a former Goldman Sachs executive with a clear incentiveconflict, as the Secretary of the Treasury. He is furthering the totalitarianism gripping hold of America through its Federal Reserve and control of money.Where is the change? In just a few weeks, he has already forced economists to estimate the 2009 fiscal deficit to exceed $2.5 trillion, which is purely absurd,considering it will be mainly monetized. America was built upon liberty. Government's only role is to protect liberty, not to micro-manage growth. As JohnLocke said, "Government has no other end, but the preservation of property. The reason why men enter into society is the preservation of theirproperty." Can BHO confiscate the wealth of Americans and transfer its allocation to Congress and the Federal Reserve, as FDR and LBJ did before him? Yes,he can.
And he is.
