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The Emperor Has No Clothes; Nor apparently do his financial advisers
Keynes, sound mathematician and successful money manager, unlike current economic leaders, might be rolling over in his grave to see the things done today in the name of his countercyclical Biblical policy of saving during the good years and spending during the lean years. Where are the government savings?
With extreme greed, Big Bankers changed the rules of safety dating before the Glass Steagall Act of 1933. In stages, they got rid of Constitutional gold and silver currency standards dating from the Mint Act of 1792, so they could issue much more usury scrip and inflate their way out of reality. Yesterday they had debtor prisons. Today they use credit ratings.
They profited as moneychangers do from usury based on Federal Treasury Debts and government spending that went from under a trillion dollars with Reagan and Shultz to over eleven trillion dollars under Obama and Geithner. And now the bills come due on the day of reckoning.
One definition of insanity is doing the same thing over and over again, expecting different results.
Am I the only person in the world who thinks the revolving door between Goldman Sachs and the US Treasury is not healthy for us little people?
GS Chairs Robert Rubin and Hank the Hammer Paulsen got substantial personal tax benefits to run Treasury and ruin Citigroup or the US Economy.
Consider Obama adviser Larry Summers, Treasury Sec understudy to Rubin, and current Treasury Sec Timothy Geithner, Henry Kissinger protégé tax dodger who worked for the Council on Foreign Relations and International Monetary Fund, before President of the New York Fed when the Panic of 2008 began.
Between various Wall Street Masters of the Universe Secretaries of the Treasury and Presidential Economic Advisers, we went off the gold currency standard as the world’s largest creditor to become the largest debtor. Where’s the common sense? Where’s the gold?
Now an alphabet soup of bailout plans from TARP to TELF to HASP to PPPIP thus far failed to resurrect the American economy, let alone the world. Bernanke, Paulson and Geithner promised help for consumers with economic recovery in a year. We used to laugh at China and Russia’s five year plans.
This poor undereducated layman understands we don’t get something for nothing. Maybe it takes a PhD, Federal Reserve or Treasury position to believe in Free Lunch Deficits commanding the economy.
