Talking about Bush to focus on economy at news conference – The White House- msnbc.com
April 29, 2008 Leave a comment
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Bush to focus on economy at news conference – The White House- msnbc.com
The main priority ought to be focussing on how to keep meddling to a minimum.
A lot of the present mess was created by government and quasi-government meddling in the economy. The Federal Reserve and the corresponding institutions in other countries are particularly dangerous as they try to manipulate economies.
One of the main proper functions of government is to allow people to arrange their affairs without being blindsided by government. Governments have to take actions that allow people to plan their lives. The Federal Reserve is the antithesis of that concept- and much of it is controlled by private interests. Wise men opposed the creation of the Federal Reserve many years ago on the basis that it was unconstitutional and dangerous. I happen to agree with them on both counts.
And so the Reserve does things like lure people into economic deathtraps with low interest rates, then rapidly increases those rates in a short period which destroys the economy.
The Reserve also tends to favor short term indicators of economic conditions like how fast the country is producing junk at this very instant rather than long term indicators like debt loads. And so what the Reserve and the meddling politicians have done with the economy over the past few years is like driving down the highway at 100 miles per hour until you run out of gas, then slamming on the brakes in the middle of nowhere.
The trap that we are in is partially international. Because others are performing these manipulations too, people here increased rates in line with the international reserve banks to hold up the currency- although preserving the currency at the expense of the economy is generally a mistake.
One way to avoid these traps in the future is to set a fixed rate that everybody goes by and nobody changes without the agreement of the rest.
Although the independence of the Reserve is a concern constitutionally, I would note that there are ways in which it appears that the Reserve is not independent enough.
I remember back in 2002 or 2003 there was a day when Greenspan correctly denounced the Bush administration’s financial policies as totally irresponsible and a threat to America’s future. When Mr. Greenspan said that he was totally correct and it was his job to say that. He warned us that the Republicans were taking us to disaster.
The very next morning, he was rushed in to a press conference in which he said that everything was fine and he retracted what he said the day before. Somebody leaned on him awfully hard. That incident needs to be investigated. Mr. Greenspan blew the whistle before it was too late and somebody shut him up.
I imagine that is the reason that Greenspan resigned, that he was not allowed to retain his position and act with integrity required.
Other people had to know what was going to happen with the economy but have kept their mouths shut. A lot of what is going on is really Mickey-Mouse stuff that you don’t need a high school diploma to figure out, like that if you get a lot of people to buy homes that they can barely afford when rates are at 2% and then you increase rates to 5%, that they won’t be able to afford their homes any more.
In other news related to meddling by people who know better, by meddling in other cultures we have allowed their populations to grow enormously. Eventually there was going to be a food problem and we may be there. In the past we have come up with the ability to grow more food with genetic manipulation and the like, so that the problem has been deferred. The result is that the populations have continued to grow and to avoid another disaster we have to come up with another miracle. But eventually there will not be a further miracle. The massively increased populations that are using our technologies will cause great environmental devastation in the meantime, which will probably reduce the population that the planet can sustain in the long term, making the eventual crash worse and worse the longer it is put off. Our meddlers are great at creating "bubble" effects generally, not just with the economy, where when the eventual reckoning comes, the result is worse than if they had not been meddling in the first place.
Then these populations that we have meddled with will in all probability start fighting each other over food with guns that we have taught them to use. Before all is said and done, there will probably be some nuclear weapons in the mix.
A good time to stock up on a couple of years supply of food and clean water.