By Douglas V. Gibbs
After J.P. Morgan's rough time including a $2 billion trading loss the Democrats have realized that the so-called problems their reforms were supposed to guard against didn't work. So, how does Obama plan to fix that problem? Heavier enforcement by the federal government, of course. Well, that, class warfare like Franklin Delano Roosevelt used in 1936, and the usual smear tactics that always accompanies the Left's campaigns of personal destruction.
One of the democrat's complaints when it comes to the private financial industry is the risk involved in the investments in Wall Street.
That's called the free market. The chance for success involves risk, and sometimes those risks don't work, and sometimes they pay off. Without risk, innovation and new growth is not possible.
The republicans have been critical of the liberal left's banking industry reforms, but one wonders if they really understand the dangers of these reforms. When the government begins to dictate to the private banking industry, mercantilism emerges, where the government begins picking favorites, and penalizing those that refuse to play ball, or front money to their party.
The interference by the federal government into the banking and investment industries goes deeper than that, however. Not only is such intrusion into the system by the federal government unconstitutional, for there are no authorities granted to the federal government for such an intrusion, but historically such actions have proven to be one of the causes of failed economic systems, and can lead to authoritarian actions by the central government. The financial collapses we are seeing in Europe is a testament to the danger of these socialist systems of governance where the central governments work to control the financial systems, while also working to control the means of production.
The Obama administration claims that his banking industry reforms protected the U.S. taxpayers from being on the hook for Wall Street's mistakes when J.P. Morgan faced losses. Why would that be, Mr. Obama? Are you talking bail-out again?
Bail-outs do nothing but feed more money into an already failing system, without resolving the problems. When a business fails, the market needs to take care of the situation, either by letting the company fail and smaller enterprises picking up the pieces for themselves, or through the venture capitalists that the democrats are so critical of. What companies, like Romney's Bain Capital, does is when a company is failing private capital is invited in to help turn the company around. What happens is that the venture capitalists invest money into the company, and with the precision of a scalpel they cut out what is causing the company to fail. Sometimes, that means a loss of some jobs, but if it saves the company, then that means the other jobs are saved.
In short, what Obama does with bail-outs only momentarily delays the complete failure of a business, while what Romney and venture capitalists do often turns around failing businesses.
The question in that matter is which would you rather have in the White House? A socialist? Or a capitalist?
If the republicans want to remain true to the Constitution, and any hope of turning our financial difficulties around, the GOP will work to defund, and dismantle, the draconian financial industry reforms the democrats have imposed on the private financial industry.
Obama says his reforms promote fair play. They do not create fair play. Fair play is not forcing companies to abide by damaging government regulations. Fair play is the allowance for financial institutions to freely decide their fate, meaning they are free to succeed, or fail, based on their own financial decisions that often involve taking risks. In the end such free market principles will encourage investment, encourage growth, and help the economy as a whole. Government influence only stifles growth, encourages the smart money to flee the country overseas, and grows the leviathan that is the federal government.
One must remember, however, that this isn't just the Democrat Party's push towards socialism. International socialists are pushing for worldwide socialism under a globalistic system of governance. The United Nations is currently initiating the final push for such a system. In fact, the U.N. has gone so far to straight out admit that is their plans, through things like Agenda 21, and other sustainable development policies. Theirs is a plan of massive redistribution from rich countries to poor ones, using both economic and environmental tactics.
Think about this a moment. The policies that have led Europe to financial collapse, has the world in a major recession, and policies the democrats are using that is deabilitating our own financial system, are the policies the international leftists want to implement worldwide. We are talking global authoritarianism of the communist variety, which in the end is designed to destroy individuality, regulate freedom, and steal America's sovereignty.
Don't like it? The Obama administration, and the political establishment in Washington as a whole, has an answer for that too! Through the National Defense Authorization Act they can define you as a domestic terrorist and detain you without due process. Or they can use their propaganda machine and "Ministry of Truth" via the The Smith-Mundt Modernization Act of 2012 to use Orwellian tactics that will force you into silence.
Believe it. That is what they want. The Constitution is only ink and paper if we don't fight for it.
The ball's in your court.
-- Political Pistachio Conservative News and Commentary
Obama's Strategy Is From FDR's 1936 Playbook - Dick Morris
Congress Seeks to Establish Ministry of Truth! - Tea Party Nation
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