Friday, November 14, 2008

With Friends Like This, Who Needs Enemies?

In an article entitled "Bush Warns Against 'Too Much' Government in Markets" I expected (well not really) to hear Bush's argument as to why we shouldn't have too much government in markets.
President George W. Bush today urged leaders of the world's biggest economies not to abandon free- market capitalism as they seek an escape from the financial crisis, calling it the ``best system'' for delivering growth.

``History has shown that the greater threat to economic prosperity is not too little government involvement in the market, but too much,'' Bush said. ``Our aim should not be more government, it should be smarter government.''
Ok, but the "smarter government" idea is already scaring me. So what is Bush's "free market" plan?
Bush today said the G-20 leaders will consider pushing common standards for accounting, improving oversight of financial-market instruments such as credit default swaps and better protecting investors against fraud. He said ways will be sought to coordinate market regulations across borders and to hand emerging markets more power within the International Monetary Fund and World Bank.

``The answer is not to try to reinvent that system,'' Bush said. ``It is to fix the problems we face, make the reforms we need, and move forward with the free market system.''

...For all his defense of markets, Bush this year extended the reach of government by backing bailouts of American International Group Inc., Bear Stearns Cos., Fannie Mae and Freddie Mac. His administration is also implementing a $700 billion financial rescue program which U.S. Treasury Secretary Henry Paulson yesterday shifted toward relieving pressure on consumer credit, scrapping an effort to buy devalued mortgage assets.
In other words, the "free market" plan pushed by the arch capitalist conservative Bush consists of internationally coordinated regulation (excuse me, "oversight"), bailouts of banks and insurance companies, bailouts of government sponsored mortgage underwriters Fannie Mae and Freddie Mac, a $700 Billion "financial rescue program", and more "power" for emerging markets in the International Monetary Fund and World Bank which are global clearinghouses of tax payer funds that get doled out to governments who can't steal their own people's money because they don't have any. Of couse, this is all taking place in countries who all have central banks that regulate each countries respective financial "system" and which can create money out of thin air which was supposed to create more "stability" than that evil gold standard.

What is the "socialist" plan?

No comments: