Monday, December 28, 2009

So Who Was to Blame?

Today while standing in line eagerly waiting to spend my Barnes and Noble gift cards, I saw the Time Magazine and on the cover was their “Person of the Year” who we all know is Federal Reserve Chairman Ben Bernanke.  Given that the Federal Reserve wields unimaginable power over the US Dollar, I am at a loss as to why the Federal Reserve Chairman isn’t awarded such a title every year.  And thus, it got me thinking about what’s happened over the past decade.
So when we looked at the financial “collapse” that occurred last year, and probably sealed McCain’s fate as a total loser, we are still left wondering who is to blame for this whole mess.  I blame the Federal Reserve Chairman and his cohorts and I do so with a clear understanding of how the markets work, how individuals interact within it, and a deep understanding of the extent of the regulations imposed on banks by the Federal government.  I do so because, whether they realize it or not, they want me to blame them.
At practically all top positions of power within this country, power We The People have created through neglect and a lack of foresight, you will find a Statist.  Not necessarily a Socialist or a Fascist, but a person who regards the interests of the State above the interests of the Individual.  It is the natural tendency of the Statist to gravitate to these positions of authority because they do not wish to be stamped on by other Statists.  They do so with whatever fashionable theory is popular at the time, but the theory behind their power grabs is not as important to them as attaining the power itself. (I know I’m on a tangent right now, but bear with me)
This is the mindset of the Statist.  They regard their power above all others.  Their power to coerce the individual to chose a path they have laid out before him or her is what they seek.  That is why they create new positions of power and new powers for themselves.  They never hesitate to waste a good crisis and they will always cling to whatever popular movement will give them the power they seek.  This is probably why libertarianism never catches on in the major political arena, when other radical theories such as environmentalism, Socialism, etc. do catch on despite their unpopularity with the masses.  It doesn’t seek to grant the Statist politician any new power over them.
Anyway, since we have what essentially amounts to power-driven men and women in these lofty positions, they will seek to exert that power over us.  Unfortunately, they will never admit to this in a negative kind of way.  If President Obama said in a live press conference that he is seeking a single payer option because he wants to determine who lives and who dies.  Despite this being the obvious outcome, and an outcome that our President is probably fully aware of, he would never say such a thing.  To do so would only enrage the dumb masses and suddenly they wouldn’t be so dumb anymore.
The Statist will use every means of deception in order to keep power over the dumb masses and keep them dumb.  If you utilize just enough power to influence your subjects without using too much, then you will secure your power for life.  The balance is not easy to achieve, but many of these people are Zen masters of exerting the right amount of power to satisfy their sick interests in running your life.
But when natural forces cause their lofty promises of golden eggs to be exposed for the pile of gold-painted shit that it really is, then suddenly it is not their fault at all.  In fact, it is often because they did not have the power to prevent it all in the first place.  They will claim that if they had more power, then they would have been able to prevent it.  Both parties do it to some degree and I could spend pages cited various examples, but that’s a book for another time, if I ever feel like writing one.
What the Federal Reserve Chairman would have us believe is that he alone has the power to bring us out of recessions and depressions and to bring prosperity to us all with his polices on interest rates.  Sadly, many people, including many otherwise ardent free-market supporters, believe this lie whole-heartedly.  I remember Dave Ramsey saying on his radio show about how lowering the interest rates and printing more money would bring us out of the recession before the banking crisis hit.  (Sucks to be wrong on this, doesn’t it Dave?)
So, if we are to believe that Ben Bernanke and all the Federal Reserve Chairmen before him are a) Statists and b) control the economy through their manipulation of the money supply, then how come they aren’t blamed for every bust, every market downturn, and every failure to deliver on prosperity?
Well, I blame the Federal Reserve Chairman for the current economic mess.  If he refuses to believe that he is responsible, yet continues to claim to be able to “adjust” and “fix” the economy, then he is an incompetent buffoon and should be driven to exile.  Or given a clown costume with a jester’s hat and made to entertain state dinners at the Whitehouse.
When the central planners screw up, it is never their fault in their minds.  So I think it’s high time that we remind them that it is.