You better believe it. If they can. There’s is so much money and power behind keeping the corporatist boondoggle going it is hard to see how the Ex-Im dragon could be slain for good. (It can be slain however.) The corporations are for it. The unions are for it. The President is for it. The Democrats in Congress are for it. Many of the Republicans in Congress are for it.
Who’s against it? The taxpayers, a few modern liberals like Ralph Nader, and some scrappy freemarketeers.
How does the Fed get dollars to European banks when said banks run out of dollars in which to do dollar denominated business? Print some new ones, then have the euro banks swap euros for the new dollars. A little of this. A little of that. And presto, mini euro-bailout. (Or maybe not so mini depending on the circumstances.)
The Ultimate Crony Capitalist State is feeling a bit unstable right now. Instability is the great enemy of the Chinese Communist Party. The market mechanism continues to bleed through all across the Chinese economy and Beijing is getting (more) nervous. The state “capitalism” miracle is looking a lot less miraculous these days.
The Chinese stock market is off over 20% since mid June. (Though still up more than that for the year.) A property bubble continues to pop. Exports have slowed. Change is in the air. Of course it’s been in the air before.
Now it looks like China may have deployed its own version of the “Plunge Protection Team” to hold back reality. Thing is reality is reality.
The filibuster is an important tool which, as many have observed, has halted more bad legislation than good legislation. Getting rid of it would constitute a major change, and potentially a very bad one.
Even if it meant undoing Cronycare, eliminating the filibuster would likely come back to haunt fans of small government.
There are worse guys who head Fed banks than Richard Fisher. At times Fisher has actually articulated some very constructive things. Saying that let’s all wave goodbye as he pushes his way through the revolving door.
For example, one email Clinton kept from the State Department indicates Libyan leaders were “well aware” of which “major oil companies and international banks” supported them during the rebellion, information they would “factor into decisions” about about who would be given access to the country’s rich oil reserves.
The email, which Clinton subsequently scrubbed from her server, indicated Clinton was aware that involvement in the controversial conflict could have a significant financial benefit to firms that were friendly to the Libyan rebels.
The reason we had the Crash in 2008 was because the Fed kept rates too low for too long. In response to the tech implosion and then the 9-11 attacks Allan Greenspan and the FOMC panicked and ended up inflating a worldwide housing boom which morphed into the disaster (to put it mildly) which is the Great Recession. There’s more to it than that but that’s basically what happened.
Consider now that Ben Bernanke (and Janet Yellen) have kept interest rates much lower for even longer than Greenspan did.
Gary Hart speaks at Cornell University, late 1987.
Gary Hart is a good big government liberal, with solid big government liberal credentials. And he is as fearful of the raging corrupt beast in Washington DC as any TEA Partier. Perhaps not quite.
Outrageous corruption in Washington is now legal. What once put elected officials in prison now is business as usual. DC is a hive of legal villainy. And if we don’t do something about it soon we are going to lose this precious thing. This unique flash of enlightenment. This anomaly in the experience of humankind. Our United States. Are we the generation which lets the American miracle descend into the mire?
This musn’t be. Not just for us, but also for millions and millions, billions, of people who look and have looked to the USA for leadership. The “shining light on the hill” is flickering.
Though we disagree with some (important) points here and there in this piece, generally it is good, especially considering Hart’s overall disposition toward large government.
He focuses only on corporate America however and as such he’s missing at least half the picture.
Hart’s broadly right though. Things are bad. We are flirting with real disaster. And sadly many of Hart’s buddies are the ones who put us on this path.
So the people will decide. That’s good I suppose. Is the EU about to retreat from its frontiers? Will the Greek people capitulate? What will equity and debt markets do? Which country is next? If you have the answer to any of these questions please feel free to contact me in short order.
The principal author of our current economic ills doesn’t seem to know history any better than monetary policy.
When the Obama administration announced that it was planning to replace Alexander Hamilton on the ten dollar bill with an unspecified woman, former Fed Chairman Ben Bernanke leapt into the fray. He said he was “appalled” by the decision since Hamilton “was without doubt the best and most foresighted economic policy maker in US history.” He proposed that Andrew Jackson be removed from the twenty dollar bill instead.
A New York Sun editorial on June 23 dryly noted that Hamilton was the author of the Coinage Act of 1792, which represents the very sound money that Bernanke has done everything in his power to destroy. The Sun, however, tempered its criticism with the following comment: “We understand that there are serious persons who reckon Hamilton, who was notoriously partial to federal power, would not have opposed the idea of fiat paper money. This point has been marked for us by no less a scholar than the journalist and historian Myron Magnet…. Let us stipulate Mr. Magnet’s point.”
Let us not stipulate Magnet’s point, because it is incorrect. Hamilton condemned paper money not backed by gold or silver as an evil. Here is what Hamilton actually said: “The emitting of paper money by the authority of Government is wisely prohibited….Though paper emissions, under a general authority, might have some advantage…, yet they are of a nature so liable to abuse—and it may even be affirmed, so certain of being abused—that the wisdom of the Government will be shown in never trusting itself with the use of so seducing and dangerous an expedient…. The stamping of paper is an operation so much easier than the laying of taxes, that a government, in the practice of paper emissions, would rarely fail…to indulge itself too far in the employment of that resource…even to [ the point of creating]…an absolute bubble.” [ Report to the House of Representatives, Dec 13, 1790]