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teomaxxx · 10-18-2008, 05:40 PM

And the root cause?

"How did we get into this mess in the first place? As in the 1920s, the current "disturbance" started with a "mania." But manias always have a cause. "If you investigate individually the manias that the market has so dubbed over the years, in every case, it was expansive monetary policy that generated the boom in an asset.

"The particular asset varied from one boom to another. But the basic underlying propagator was too-easy monetary policy and too-low interest rates that induced ordinary people to say, well, it's so cheap to acquire whatever is the object of desire in an asset boom, and go ahead and acquire that object. And then of course if monetary policy tightens, the boom collapses.""

Uh, yeah.

And now Congress has turned to those who were responsible for creation of the mess and believes that their tonic for cleaning it up will be effective.

The simple fact of the matter is that Congress has made a critical error in allowing Ben Bernanke and Hank Paulson to oversee this mess and its resolution. Both men are hopelessly compromised in that taking true, effective action would require both to admit to their complicity in the creation of the bubble in the first place, and in Secretary Paulson's case it would involve the admission that his personal fortune was gained through the unwise and imprudent advocacy of the very policies that led to the collapse now upon us.

Neither of these men are going to admit any such thing, for doing so would likely lead to immediate removal from office at best. Indeed, now that they have undertaken the extreme measures that have been practiced to cover up the original event and its causes, protecting those who were complicit, they might even come under federal indictment for racketeering should they come clean and tell the truth.

It is, however, the job of Congress to put a stop to such outrages before these two men, in cohorts with their friends in the banking system, lead us straight into The Greater Depression.

Indeed, history has shown that when The Executive oversteps its boundaries, or when other elements of the government do so, that Congress is the body retaining not only the authority but the requirement to act in a fashion that protects the body politic.

In this case, that protection is urgently needed, as in "today". Secretary Paulson and Ben Bernanke's pursuit of policies that are harmful has now gone on for more than a year, and should this be allowed to continue, irrespective of who holds the title in the office, we will see the destruction of financial firms and American Sovereignty piece-by-piece until what remains is unable to be saved at all.

I close with a final quote from The Wall Street Journal interview:

"Fed Chairman Ben Bernanke, of all people, should understand this, Ms. Schwartz says. In 2002, Mr. Bernanke, then a Federal Reserve Board governor, said in a speech in honor of Mr. Friedman's 90th birthday, "I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again.""

Ben Bernanke (and Secretary Paulson) not only will do it again, he has done it again - unless Congress acts here and now to stop him.

The Genesis Plan is one such way to stop him.

10-18-2008, 05:40 PM
teomaxxx Confirmed User Join Date: May 2003 Posts: 2,734	And the root cause? "How did we get into this mess in the first place? As in the 1920s, the current "disturbance" started with a "mania." But manias always have a cause. "If you investigate individually the manias that the market has so dubbed over the years, in every case, it was expansive monetary policy that generated the boom in an asset. "The particular asset varied from one boom to another. But the basic underlying propagator was too-easy monetary policy and too-low interest rates that induced ordinary people to say, well, it's so cheap to acquire whatever is the object of desire in an asset boom, and go ahead and acquire that object. And then of course if monetary policy tightens, the boom collapses."" Uh, yeah. And now Congress has turned to those who were responsible for creation of the mess and believes that their tonic for cleaning it up will be effective. The simple fact of the matter is that Congress has made a critical error in allowing Ben Bernanke and Hank Paulson to oversee this mess and its resolution. Both men are hopelessly compromised in that taking true, effective action would require both to admit to their complicity in the creation of the bubble in the first place, and in Secretary Paulson's case it would involve the admission that his personal fortune was gained through the unwise and imprudent advocacy of the very policies that led to the collapse now upon us. Neither of these men are going to admit any such thing, for doing so would likely lead to immediate removal from office at best. Indeed, now that they have undertaken the extreme measures that have been practiced to cover up the original event and its causes, protecting those who were complicit, they might even come under federal indictment for racketeering should they come clean and tell the truth. It is, however, the job of Congress to put a stop to such outrages before these two men, in cohorts with their friends in the banking system, lead us straight into The Greater Depression. Indeed, history has shown that when The Executive oversteps its boundaries, or when other elements of the government do so, that Congress is the body retaining not only the authority but the requirement to act in a fashion that protects the body politic. In this case, that protection is urgently needed, as in "today". Secretary Paulson and Ben Bernanke's pursuit of policies that are harmful has now gone on for more than a year, and should this be allowed to continue, irrespective of who holds the title in the office, we will see the destruction of financial firms and American Sovereignty piece-by-piece until what remains is unable to be saved at all. I close with a final quote from The Wall Street Journal interview: "Fed Chairman Ben Bernanke, of all people, should understand this, Ms. Schwartz says. In 2002, Mr. Bernanke, then a Federal Reserve Board governor, said in a speech in honor of Mr. Friedman's 90th birthday, "I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."" Ben Bernanke (and Secretary Paulson) not only will do it again, he has done it again - unless Congress acts here and now to stop him. The Genesis Plan is one such way to stop him.