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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Sunday, August 21, 2011

How does one destroy a robust economy?

Let the US government run it....
Now, class, why did the 2008 economic collapse happen? You there, waving your teleprompter: Mr. Obama: what say you? George Bush? Wrong answer. I’ve been over this before. Review an earlier reading assignment: “Who caused the global economic crisis (Hint: it Wasn’t George W. Bush“). Here’s the formula:

1. Make $1.5 trillion of risky loans to people you know are unlikely to repay them;
2. Allow financial institutions to slice, dice, and repackage the loans, leveraging them up to 30-1;
3. Require financial institutions to value their assets according to strict “mark-to-market” rules, thus denying businesses needed flexibility during a crisis;
4. Impose onerous new regulations not only on financial institutions but on U.S. business across the board;
5. Keep talking about raising taxes so people and businesses pay their “fair share,” even though 43.4 percent of those who file pay no income tax at all;
6. Create an economic leviathan in the form of health care legislation that will simultaneously worsen health care in the U.S. while also making it wildly more expensive;
7. Keep emphasizing “green” jobs and “green” energy production at a time when unemployment is above 9 percent and energy costs are skyrocketing;
8. Invest billions of dollars of the taxpayers’ money into failing private businesses with huge union obligations to keep the business going for a while longer so that the unions can squeeze more money out of the taxpayers.
9. Ignore the warnings of credit-rating agencies when they warn you are spending too much money and do not have a credible plan to address your skyrocketing deficits and then blame them when, months later, they downgrade your credit rating.
From here. Government regulation and intervention has completely destroyed the ability of the market to allocate resources. So, money flees and hides since no one knows what next cockamamie new idea that the leviathan will come up to 'solve' the problem that they created.

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