When there is a major problem with something, why does our government ask the person who screwed it up how to fix it? Wouldn't the wiser thing be to ask the person who warned of and predicted the outcome of the flawed policy in the first place? I don't know, I think I would be more inclined to listen to them.
Mr. Gaither, and current Secretary of Treasury, Henry Paulson hammered out the first bailout with the financial sector. However, there were some major flaws that have recently come to light with the help of Congressman Ron Paul:
1. They made up the loan by just having the Federal Reserve loan it out which meant the Federal Reserve just printed more money, devaluing the dollar.
2. Nothing in the passing in the loan (that Congress approved) stated that the Federal Reserve, Congress, or the U.S. Treasury Dept. is responsible for any of the oversight that should come with a loan of $750 billion dollars.
So, we have $750 billion dollars that went out by the US Government to certain financial institutions, (with the same leadership that got them in trouble in the first place) with no control on how the money is spent, that can potentially decimate the current value of the US dollar. This is only an opinion, but I think history will remember this bailout as a poor decision.
Gaither, as the Chairman of the New York Federal Reserve, was a big part in the financial bailout, and now President-elect Obama wants to make him the next Secretary of Treasury. Why look to someone to fix the problem that he helped cause? If there are certain individuals that predicted that this was going to happen, why not look to them?
Ron Paul has warned on and on about Central Government tinkering with the economy. He believed years ago that we were heading for massive inflation by basing our economy through a Federal Reserve that Congress has NO control over. That's right, the Federal Reserve Act of 1913 prevents Congress from auditing the Federal Reserve.
Congressman Paul's position on the dangers of Central Banking comes from his mentors, Austrian Economists, Freidrich Hayek, Ayn Rand, Ludwig von Mises, Hans Stennholz and Murray Rothbard, all of whom have wrote about the dangers of the highly regulated economy that we have today.
As much as Ron Paul has been mentored under these scholars. It's a wonder why he wasn't considered for Secretary of Treasury. After all, he more than most, understands the strategic flaws in our monetary system and has predicted the predicament that we’re in right now. So, why wouldn’t we look to him for solutions?
Works Cited:
Paul, Ron. "The Neo-Alchemy of the Federal Reserve." Texas Straight Talk. 1 Dec. 2008. 16 Dec. 2008 http://www.house.gov/htbin/blog_inc?blog,tx14_paul,blog,999,all,item%20not%20found,id=081201_2549,template=postingdetail.shtml.
Paul, Ron. "The Bailout Surge." Texas Straight Talk. 24 Nov. 2008. 16 Dec. 2008 http://www.house.gov/htbin/blog_inc?blog,tx14_paul,blog,999,all,item%20not%20found,id=081124_2545,template=postingdetail.shtml.
Hawes, Matt. "Dr. Paul's House Floor Speech, 12/10/08." Campaign For Liberty. 14 Dec. 2008. 14 Dec. 2008 http://www.campaignforliberty.com/index.php?blogpage=3>.
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1 comment:
Excellent post! This was wonderfully detailed, to the point, and there was nice analysis from you to tie it all up (i.e., Gaither is a bad choice for Treasury Secretary).
History will certainly remember the bailout as a bad decision, especially if we then let the auto industry fall and millions of others lose jobs, homes, etc. because of poor management from upper management. I think the first bailout (and the points you make here) really show that when there is no oversight or regulation, all hell breaks loose.
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