Obama places Wolf in Charge of the Hen House
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. ‘ ~ Thomas Jefferson
If you have been reading the news lately, you probably heard about Obama’s new government program. If you don’t know what I’m talking about, it’s probably because every day there is a new government czar, program, or department! (I can barely keep up!) It seems that the only thing our president knows how to do is create more government bureaucracy. Every solution is more and more government with this President, and yet he claims repeatedly that he believes in the market and is not a socialist. (You could have fooled the socialists!, because they sure think you are.) President Obama’s new master plan is to create a new financial regulatory agency that places the entire economy in control of the Federal Reserve Bank. If you hold to austrian economics, your probably just hit the roof in alarm, like I did when I heard this news. Giving the FED more control over our financial system is like putting the wolf in charge of the hen house. The FED is the reason we are in the crisis in the first place. It is their manipulation of the money supply, that debased our currency and created malinvestment throughout the economy, thus causing our financial meltdown. Remember, they were suppose to be in charge of the economy over the last 90 years, yet they couldn’t foresee this depression??
Now, you probably heard that it was the investment banks with their hocus-pocus derivatives that caused the meltdown. Although I agree it was a major factor, it was not the root cause. The root cause was due to government intervention in the economy, controlled by the FED and their unconstitutional and unethical printing press! The FED pushed down interest rates to the lowest levels in history from the 1990′s until today, thus causing a massive increase in the currency supply, which lead to unwise investments throughout the economy. (This was seen most publicly in the housing sector). This malinvestment always leads to a crash or depression in the economy, as our Austrian Economist’s teach us. This time around the crash was huge, because the excess money creation was the largest ever in the history of the country. Never before has interest rates been pushed so low and for so long, it was money printing mania! Now we have to deal with the consequences of their actions and let the free market recover, but this administration will not let this happen… It is like an alcoholic who can’t get off the bottle, being prescribed whiskey to solve their dependency. Every step this administration makes is more intervention into the market, which is why the unemployment rate continues to rise and we are still waiting on a recovery. Unfortunately, we will not have a robust recovery until the government takes their greedy hands off the private economy and let’s it operate. Mark my words, this depression will not recover in the time frame they are predicting, because they haven’t learned from history. They are instead doing the exact opposite. Printing money like mad scientists, and spending taxpayer funds like Paris Hilton. These actions, supported and many times directed by the FED, will cause massive inflation and our treasury interest rates to spike as the Chinese stop buying our massive debt. (Already happening) This interest rate rise will cause the economy to tank even further. (remember the Carter administration?) The only lasting recovery will come from a responsible government and a sound currency. A government that understands the true role of its existence and ends this Federal Reserve nightmare.
Cheers Thinking Patriots,
Jason
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