Yet another reason he should be ousted, but he’s being politically sheltered by the most ant-free market president this nation has ever seen. You should take a moment and read this article that appeared in The Hill today and keep bringing the picture into focus. Here are a few excerpts that I’d like to expand upon:
“The markets will not solve it,” he said in an appearance on ABC’s “This Week.”
“The great risk for us is we do too little, not too much.”
At the heart of the matter, Geithner has faith in the free market, and as such, has no faith in individuals to tend to their own matters and to enter into contracts which are mutually beneficial to both the buyer and the seller. The government’s interference in the marketplace caused the bubble to grow in the first place, and bubble grew as a result of government guarantees against bad loans. Absent the backing of the Federal Government, the market on bonds that were backed by risky mortgages would certainly have not grown as it did. These assurances limited the risk that buyers would be assuming and they paid out high rates. From the sellers perspective, they had been encouraged by the government and in some cases coerced into making bad loans in the first place. No one in government has yet to admit or take responsibility for this.
Another fact to keep in mind is that the free market ALWAYS self corrects. Geithner has no grasp of economics nor history if he does not know this. The greater risk is indeed that we do too much, as the government moves in and dumps trillions upon trillions of dollars to bailout failed industries, these responsibilities have now shifted to the American taxpayer, who never once was asked if this was acceptable use of our money. As our hard earned dollars deteriorated in the market, we know face the double whammy of our money deteriorated in the hands of our government as well. We are two dollars for every one that we invested in private corporations that were subject to government mandates that violated the free markets, the consequences of which we are now facing. In private investment, you can only lose what you have invested. In this case, we are being FORECED to lose MORE than we had chosen to invest in the first place.
None of this, of course, in Constitutional, and this is far worse than simply taxation without representation, it is an outright assault on our ability to reign in our own government’s political ambition. It has nothing to do with, “We the People.” It is an outright slap in the face of our rights as citizens and as free people. Geithner cares for none of these things.
“We want to end this pattern of having booms and busts,” he said.
This, of course, is impossible. To truly believe this, once again, he has no true understanding of economics. You can minimize these cyclical patterns, but not eliminate them. The intended goal should be, rather, to minimize the percentage in changes between cycle peaks and troughs, to allow for a more steady and gradual increase in GDP growth rates rather than harsh fluctuations (which of course we had seen, coincidentally in the time frame that the GOP gained control of Congress in the ‘94 elections and ended at the ‘06 election when the Democrats took over Congress). That is clearly not what he is stating here.
Geithner said that after the crisis is over, “people are going to care less about what they make, more about what they do. What they achieve is what they make. And that will help make this country stronger.”
The thing is, he’s serious about this. He actually believes people will not care too much about how much money they make. Sure, the Democrats have pretty much told anyone who will listen that they’re going to increase all of their taxes for the “common good,” but does anyone honestly think that people are going to care less about how much money they make? That somehow all your money woes and concerns will simply disappear because you’ll have a deep sense of appreciation for life because this particular recession, that the government caused (and rest assured, they will cause another one, not a naturally occurring recession, but one brought upon us by government interference in the marketplace) finally comes to close? Or is that just it? Maybe Geithner is saying what many people think, you’ll be lucky to even have a job once Obama and Geithner get their economic policies running full steam.
Regardless of how pessimistic this administration is and how utterly incompetent and clueless Treasury is, especially under Geithner’s leadership, we will always defend our individual freedoms. The free market is the only system the world has ever seen in which both economic and personal freedom are maximized, and as one is assaulted, so too is the other. We are tasked to defend each of these in order to safeguard our liberties. As Milton Friedman has stated, capitalism and freedom are intricately intertwined (if you haven’t read Capitalism and Freedom or Free to Choose, here’s the links to the books on Amazon). I’ll leave you with a quote from the great Freidman, “Underlying most arguments against the free market is a lack of belief in freedom itself.”