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Source link: http://archive.mises.org/12538/obama-back-to-cooper-union/

Obama — Back to Cooper Union

April 22, 2010 by

Only the President knows why, but Obama seems most comfortable speaking about how he’s going to run the commanding heights of the economy at the place he knew well from his annual participation in the Socialist Scholars Conference.

{ 4 comments }

Daniel Hewitt April 22, 2010 at 12:51 pm

When following your WSJ link, I noticed this in the sidebar:

http://blogs.wsj.com/economics/2010/04/17/romer-its-aggregate-demand-stupid/

FTA:

“The overwhelming weight of the evidence is that the current very high—and very disturbing—levels of overall and long-term unemployment are not a separate, structural problem, but largely a cyclical one. It reflects the fact that we are still feeling the effects of the collapse of demand caused by the crisis. Indeed, at one point I had tentatively titled my talk “It’s Aggregate Demand, Stupid”; but my chief of staff suggested that I find something a tad more dignified,” Ms. Romer said.

A socialist ideologue in charge, with a Keynesian zealot advising him. What could possibly go wrong?

Eric M. Staib April 22, 2010 at 12:55 pm

Below is an Obama quote from the WSJ page:

“The Federal Reserve should have basic supervisory authority over any institution to which it may make credit available as a lender of last resort.”

Does that include the U.S. Treasury???

Capitalist Saver April 22, 2010 at 1:07 pm

“The Federal Reserve should have basic supervisory authority”

How about the Fed gets out of the way of free market capitalism and lets the fear of bankruptcy become the ultimate “superviser” of the lending industry ?

When lending institutions must face the consequences of their actions, they will pay more interests to savers to encourage saving and have a cash base to balance their balance sheet and they will lend more cautiously and more responsibly, thereby contributing to capital creation instead of the current capital destruction regime under federal management.

Government buying car companies, government bailout out banks, government reforming health care… what kind of nonesense has taken over reality ?

Capitalist Saver April 22, 2010 at 1:03 pm

What lending ? What credit ?

Under free market capitalism, you don’t even need money to provide lending or credit.

Credit comes from capital accumulation which takes place in the form of accumulated goods or available services which can be lended to finance a venture in the hope it will generate back even more capital than was invested in said venture.

Money and monetarism, especially the fiat kind runed by government, blurs this concept.

It’s not the dollar amount that counts, it’s the goods, services and ressources amounts that counts.

What lending of last resort does, what forced government “credit” does is lend capital that does not exist. We are depleting our existing capital faster than we can build it back with those federal schemes.

It’s depressing to see the government involved everywhere into everything now a days and what’s even more depressing and down right revolting is how people can’t seem to think of life without government assistance.

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