Guest post by Terri Kurowski
We’ve been lied to, Big Time.
The definition of insanity is doing the same thing over and over and expecting different results.
We’ve already had several bailouts and a stimulus package and in fact, things have gotten worse, not better. I heard on the morning news that one of the Big Banks is in trouble again despite a big cash infusion courtesy of We The Taxedtodeath. Great. The solution will likely be to give it even more money.
We can sit around and point fingers at the Republicans, the Democrats, George Bush, Obama, Barney Frank, Fannie and Freddie, Congress, Stupid People Who Bought McMansions on a McDonalds Salary, Stupid Lenders, Overly Aggressive Realtors Who Forced People to Buy Homes They Couldn’t Afford (I especially like that one), Unions, and the Media for talking down the economy (my second favorite); they all share blame, but the facts are this:
1. Central planning does not work, just ask the USSR. And it doesn’t matter if the Rs or Ds are doing it. Right is right; wrong is wrong.
2. Government intervention in the free market (not that we really have one in the first place) mucks things up–it’s the Law of Unintended Consequences in action.
3. Thomas Jefferson was right:
“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. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
4. The economy is too vast and unwieldy for Helicopter Ben Bernanke and King Henry Paulson to control. The economy is going to correct itself (or collapse) no matter what, unless the fed.gov stops spending and stops printing money. All this intervention is only going to either make matters worse, prolong the agony or both. Heaven help us all if/when the Chinese, Saudis, et. al. decide that the US is too risky to invest in any more. See Zimbabwe or Iceland for further information.
5. Government IS the problem, NOT the solution, and it doesn’t matter what political stripe is responsible, even Bigger Government creates Even Bigger Problems.
6. Monetary policy is intimately tied to the health of our economy and our unsound monetary policy has been creating the boom/bust cycles which seem to get worse with each new bubble. Monetary policy based on debt is not sound, nor does it build true wealth. It builds a house of cards. Further, this monetary policy disproportionately affects the poor and middle class, those on a fixed-income and those who save through hidden taxation, often dubbed the inflation tax; by devaluing the value of our dollars.
I am no formally trained economist; far from it. But common sense tells me that whether it’s a family of 4 or a government entity, you simply can’t spend your way out of debt. If you could, then the logic would be that we should all go out and get unlimited credit cards and spend, spend, spend. Sounds like fun but that’s insane!
I have come to the conclusion that the Keynesian theory of economics, which is still being worshiped in the halls of DC is wrong and the Austrian theory is correct. Those economists who ascribe to the Austrian theory have been predicting this mess and trying to sound the alarm for years. No one inside the beltway has listened. It’s high time we educate ourselves and spread the word.
If you’re not familiar with this line of thinking, here’s some “light” reading for you:
http://www.europac.net/externalframeset.asp?from=home&id=15036
http://online.wsj.com/article/SB122973431525523215.html
http://jbs.org/index.php/component/content/article/974-userblogs/4307
http://www.peacefreedomprosperity.com/?p=337
http://fee.org/articles/tgif/inflation-as-income-distribution/#more-3532
http://www.chaostan.com/bulletin-010809.html
Terri Kurowski’s 5 Point Plan for getting us out of this economic mess:
1. No more bailouts or stimulus packages
2. Drastic, and I mean huge, enormous, drastic spending cuts at all levels of government (it is a sad fact that governments are the only ones hiring these days—something is seriously wrong with that picture)
3. Drastic, across the board tax cuts
4. Get the government the hell out of the way of creative and industrious Americans, revisit and revise stupid regulatory laws
5. Return to sound monetary policy
And for you Republicans out there, Haley Barbour almost gets it right.
Freedom, Peace and Prosperity,
