Posted on 09/03/2010 5:52:28 PM PDT by fightinJAG
The Obama administration and the Federal Reserve want to fix the United States economy by spending more money. But while that approach might work for Europe, it is risky for the US. The nation would be better off embracing traditional American values like self-reliance and small government.
There's no question about it: The 20th century was America's era. The United States rose rapidly from virtually nothing to become the most politically powerful and economically strongest country in the world. But the financial crisis and subsequent recession have now raised doubts about its future. Are we currently witnessing the beginning of the end of the American era?
A firm belief in the individual's ability, ideas, courage, will and a reliance on one's own resources brought the US to the top. The American dream promised everyone the chance of upward mobility -- literally from rags to riches, from minimum wage to millionaire. The individual's pursuit of happiness was seen as the crucial foundation for the well-being of society, rather than the benevolent state which cares for its subjects -- and certainly not the welfare state, which provides a social safety net for its citizens.
In the American system, every man was responsible for himself -- in good times and bad. [snip]
Both the behavior of the American government and the Federal Reserve makes one thing clear: They do not see the solution to the US's economic woes in a return to traditional American virtues.
(Excerpt) Read more at spiegel.de ...
“But while that approach might work for Europe, it is risky for the US.”
Actually, socialism doesn’t work anywhere; it merely accumulates debt for future generations to pay, while, at the same time, confiscating the wealth of the current citizenry.
But don’t try to tell that to Obama or his cabinet - or, for that matter, anyone in congress; as far as they’re concerned, everything in America belongs to them, and they’re just demonstrating the kindness in their hearts by allowing you to use it for a while.
It’s exactly like the mugger who takes your wallet, but allows you to keep bus fare to get home.
This is an excellent article. Best I have read in some time. Thanks for posting!
"In the predatory societies of Europe, Jefferson discerned the indelible characteristics of the whole species (human beings). His primary question was not what was the matter with European institutions, but what quality of the human animal had made such institutions possible. In 1787, Jefferson wrote from Paris:
"'Under pretence of governing, they have divided their nations into two classes, wolves and sheep. I do not exaggerate. This is a true picture of Europe. Cherish, therefore, the spirit of our people, and keep alive their attention. Do not be too severe upon their errors, but reclaim them by enlightening them. If once they become inattentive to the public affairs, you and I, and Congress and Assemblies, Judgss and Governors, shall all become wolves. It seems to be the law of our general nature, in spite of individual exceptions; and experience declares that man is the only animal which devours his own kind; for I can apply no milder term to the governments of Europe. . . .'"
On P. 178, Boorstin states:
"More than once Jefferson reminded Washington that he (Washington) was not immortal, and that his successors would posses the normal human vices of ambition and avarice. There could be no insurance against the reappearance of Caesars and George IIIs. Jefferson refused to pin his hopes on the occasional success of honest and unambitious men . . . . Any government which made the welfare of men depend on the character of their governors was a delusion.
This Jefferson observed in criticizing the imperfect separation of powers in the Virginia Constitution of 1776:
"'Mankind soon learn to make interested uses of every right and power which they possess, or may assume . . . With money we will get men, said Caesar, and with men we will get money. Nor should our asssembly be deluded by the integrity of their own purposes, and conclude that these unlimited powers will never be abused, because themselves are not disposed to abuse them. They should look forward to a time, and that not a distant one, when a corruption in this, as in the country from which we derive our origin, will have seized the heads of government, and be spread by them through the body of the people; when they will purchase the voices of the people, and make them pay the price. Human nature is the same on every side of the Atlantic, and will be alike influenced by the same causes. The time to guard against corruption and tyranny, is before they shall have gotten hold of us. It is better to keep the wolf out of the fold, than to trust to drawing his teeth and claws after he shall have entered." (Underlining added for emphasis)
One can conclude that this reasoning is the basis for Jefferson's praise for America's written Constitution for self-government--a Constitution by which "We, the People," according to him, were to "bind them (elected representatives) down by the chains of the Constitution."
Sadly, those who voted for this "hope" and "change" are finding that, perhaps, their voices were "purchased" and they may "pay the price."
Jefferson’s words gave me chills. I am going to look for this book. Thank you so much for posting. I hope this info is seen by many.
You’re welcome! Be sure to catch loveliberty2’s excellent comments at #6.
I hope Rush reads some of this article on air.
ping to #6
Ping.
[In 1820, twice as many people lived in the United Kingdom as the US, and its economic performance (measured by gross domestic product) was three times as strong and the average standard of living (measured by GDP per person) was a quarter higher. Today, there are about five times more people living in the US than the UK, America’s economic performance is about seven times better than Britain’s and the average American is about 50 percent better off than the average Briton.]
But I thought he said socialism works in Europe. Apparently not, unless you are willing to accept the lowest common denominator for everyone but the ruling class.
Excellent post. Thank you.
My contribution to the discussion is this: In my opinion, the absence of any signs of economic recovery is due to the fact that 0bama administration’s massive, unprecedented and extra-legal incursions into the US economy on multiple levels has created an environment in which no one knows any longer what the “rules of the game” are. Who in his right mind would today commit to any major investment in this nation, when the viability of an entire industry can be turned upside down overnight by the flick of federal bureaucrat’s pen or some self-serving political caprice.
Washington DC’s relationship to the USA is now equivalent to the relationship that existed between Versailles and the nation of France under the Bourbon monarchy. All authority, power, and money have been concentrated in a single locus. Nothing meaningful can any longer be undertaken or accomplished without making the pilgrimage to DC, prostrating oneself before our self-annointed masters, begging their indulgence, and learning what price must be paid in exchange.
Exactly. I think this is what the author meant when he said the problem with the U.S. economy is not economic, but structural. He left that unexplained, really, but you hit the nail on the head when you used the word "incursions."
To me, "incursions" describes perfectly how Obama and his marauders are actually trying to invade our American system and establish socialist outposts within it, from which to collapse our constitutional form of government and replace it with a form of Marxism.
Obama is so ignorant of the core American identity and basic American values that he seems to honestly believe that the European experiment with Socialism (now unraveling in many ways) will work here because, in his mind, America is no different than Europe and Americans are no different in mindset and history than Europeans.
We all know what this man in the White House thinks of "American exceptionalism."
Who in his right mind would today commit to any major investment in this nation, when the viability of an entire industry can be turned upside down overnight by the flick of federal bureaucrat’s pen or some self-serving political caprice.
Not only does this have pernicious pragmatic effects, this type of power being exercised by our government is diametrically opposed to a government of the people.
I have been saying for a while that our economy is not tanking so much because of a crisis in CONSUMER confidence, but because of a crises in CITIZEN confidence. This anti-America (which is different than anti-American) White House is not governing with the consent of the people, but ruling against the will of the people.
Americans have lost confidence in their government, not in our economy. We know, as this German economist points out, that in our American system, prosperity as a nation depends upon individuals creating wealth. This President is dead set against this core principle.
Washington DC’s relationship to the USA is now equivalent to the relationship that existed between Versailles and the nation of France under the Bourbon monarchy.
This eloquently illustrates the author's point that nanny statism may "go down okay" with Europeans, but it will never sit well with Americans. Why? Because AMERICANS ARE THE ONLY PEOPLE ON EARTH WHO HAVE ALWAYS BEEN FREE.
We have NEVER had a king, tyrant, dictator, military coup or feudal lord rule over us. We came here, at great cost, to REJECT all that. And when we created this great nation, we called ourselves "citizens," not "subjects."
As the saying goes, Americans barely tolerate being governed. We will not be ruled.
And so it should be. This is the American way.
Yet today our government proceeds as if we do have a King, as if we will be ruled, as if the monarchy is free to sweep into the very foundations of our Constitutional Republic and tear down the pillars in order to impose serfdom on us.
This will not stand.
I don’t know that the point was so much that socialism “works” in Europe. (Obviously, it doesn’t work anywhere in the long run.)
I think the author’s point was that Europeans, because of their history, were comfortable with socialism. And this basic comfort level contributed to what smooth ride socialism has had on the continent.
The Europeans were never free. They were all subject to monarchs and worse. To go from that to “soft” socialism probably seemed great at the time.
Americans, however, that is quite a different story.
As Baraq al-Husseini might say, "They all look the same to me!"
The US Treasury entry (which oversees the Federal Feserve) must be seen in this context. COS Rahm Emanuel took control of the US Treasury when he crept into our WH. NOTE Insiders who know the ups and downs of Federal Reserve rates can make billions.
Behind The Real Size of the Wall Street Bailout (more like $14 trillion)
Mother Jones | Dec. 21, 2009 / FR Posted January 04, 2010 by E. Pluribus Unum
A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street.
The price tag for the Wall Street bailout is often put at $700 billion—the size of the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside money to bail out financial firms and inject money into the markets. To get a sense of the size of the real $14 trillion bailout, see our chart here. Below, a guide to the pieces of the puzzle:
Treasury Department bailout programs (controlled by Rahm Emanuel)
Money Market Mutual Fund: In September 2008, the Treasury announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].
Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].
TARP: As part of the Troubled Asset Relief Program, the Treasury has made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid. Government-sponsored enterprise (GSE) stock purchase: The Treasury has bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets." GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion [PDF].
--SNIP--- long read
Federal Reserve bailout programs
Commercial Paper Funding Facility: With the support from the Treasury, the Fed established the CPFF in October 2008 to increase the availability of short-term debt (commercial paper) funding. Up to $1.8 trillion [PDF] was earmarked for the program.
Mortgage-backed securities purchase: In 2009, the Fed earmarked up to $1.25 trillion to buy investments based on home loans.
Term Asset-Backed Securities Loan Facility: TALF provides financing to investors who are buying asset-backed securities. In February 2009, the Fed and Treasury announced an expansion of the program to generate up to $1 trillion in new lending.
Foreign Central Bank Currency Liquidity Swaps: The Fed has provided $755 billion [PDF] for currency liquidity swaps with foreign central banks.
--SNIP--- long read
========================================
ABC NEWS, Nov 18, 2009----Stimulus grants: Why Was The White House Website Riddled With Errors?
Officials tell ABC News so far, they found 700 mistaken Congressional districts out of more than 130,000 stimulus grants. On Monday night, ABC reported on errors found on the website set up by the White House to track the number of jobs created or saved by the economic stimulus program. The website was riddled with reports of jobs in places that didn't even exist. That report prompted anger on Capitol Hill, and defensiveness at the White House. On Tuesday night's broadcast, ABC's Chief Congressional Correspondent Jon Karl took another look at the stimulus confusion (link)
http://blogs.abcnews.com/theworldnewser/2009/11/why-was-white-house-website-riddled-with-errors.html
LINK---Jon Karl: White House Vows to Correct Stimulus Reports Officials Tell ABC News So Far, They Found 700 Mistaken Congressional Districts Out of More Than 130,000 Stimulus Grants
ABC NEWS' JONATHAN KARL, Chief Congressional Correspondent, REPORTS, Nov. 17, 2009
When it comes to stimulus spending, could the wheels of government bureaucracy be grinding too quickly for once? Responding to more inaccuracies discovered in the reporting of spending and job creation from the administration's economic stimulus plan, the top White House official charged with overseeing the program vowed today to go through the reports with a fine-toothed comb and to correct the mistakes.
The promise came after ABC News found that Recovery.gov, the government Web site created to track the expenditures, had many job creation and stimulus spending figures that were attributed to congressional districts that do not exist, or that were incorrectly identified.
"The first time out, we knew there were going to be problems," said Edward DeSeve, special advisor to the president on the stimulus bill. "We don't think there are a lot of them. There are less than 1 percent in terms of the recent concern about congressional districts of the overall reports. And we've got a good commitment from the recovery board to work with us to fix them."
Officials tell ABC News, so far, they have found 700 mistakenly credited congressional districts out of more than 130,000 stimulus grants. The White House's Web site claims that more than 640,000 jobs have already been saved and created by the " $787 billion stimulus program. The reports used to come up with that number are riddled with errors.
In addition to the jobs in non-existent congressional districts reported Monday by ABC News, in real congressional districts, there are also problems, lots of them.
Moore's Shoes in Campbellsville, Ky., claims nine jobs were created from an $890 grant for nine pairs of work boots for the Army Corps of Engineers. Head Start of Augusta, Ga., claimed 317 jobs with a $790,000 grant, but it was really just a one-time raise to its 317 employees.
Chris Whitley is a fiscal officer for Central Savannah River Area Economic Opportunity Authority, which administers the Head Start program in Augusta. He says it was the administration's stimulus help line that advised them to claim 317 jobs. "It wasn't illegal, immoral or unethical. And they told me to do it, so I did it," said Whitley.
The mistakes have prompted anger on Capitol Hill. Rep. David Obey, D-Wis., the powerful chairman of the House Appropriations Committee, was outraged that one sewer project in his district was listed as creating 100 jobs. The real number is five. When asked what he thought when he saw the mistakes in his district, Obey said, "I wanted to strangle somebody."
Obey is demanding the administration fix the mistakes. "Fix the problem, the blessed problem, so that we're getting accurate information. I don't care what people's bureaucratic niceties are, or how hard it is to do it. I mean, they've got to fix the problem, so the American people can understand what the realities are.
SOURCE http://abcnews.go.com/WN/white-house-stimulus-website-riddled-errors/story?id=9110298
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