Posted by
lge on Friday, September 19, 2008 7:12:11 PM
Disaster after disaster afflicts our economy:
- The "sub-prime mortgage" debacle
- Gasoline prices & the energy "crisis" (which our "leaders" should have been working on since about 1978)
- Lehman, Merrill Lynch, AIG, other financial industry problem companies
- A sick auto industry, with GM maybe failing
And Senate Majority Leader Harry Reid said yesterday, “no one knows what to do” at the moment. As Gomer Pyle would have said (but in a manlier voice), "Surprise, surprise!"
The problem is not the financial industry. It's not the huge sums of money Mexicans are sending out of the country. It's not bad mortgage loans made to poor people. The reason our economy is sinking is that the entire foundation of our economy is being destroyed by Congress, by off-shoring laws like NAFTA.
The basis of all prosperity, that is, the basis of "the wealth of nations," as Adam Smith pointed out, is PRODUCTION. Production must be greater than consumption, and the amount of capital invested in increasing production must continue and increase.
A positive balance of production over consumption, leaving plenty of productive capital to invest, is essential. That's the whole point of Wealth of Nations. Harry Reid and his ilk think it's fine to invest our productive capital in China, so as to increase
their "wealth of nations." What we in the U.S. get is "poverty of nations" and "debt of nations." All because Reid, et al., have a monkey's understanding of
Wealth of Nations and of the meaning of "free trade."
On our behalf, our "leaders" have chosen not to live by producing. We live by consuming, by depending on China to produce, and by going into debt to purchase cheap goods from the producing nations. We're in debt up to our eyeballs. We've thrown away our manufacturing capacity, the basis of our prosperity which has been built up by hard work over the two centuries of our history.
In addition, we're giving China advanced technology, allowing them to riddle this country with spies, educating their students, and allowing them to produce highly-sensitive military and technical goods. And people still continue to say we're the "strongest nation on Earth"! Our rulers are throwing it all away.
The problem isn't the financial industry -- that's superstructure. It just reflects the deeper rottenness in our economy. You have to have something to manage, to be a financial manager; and all we have is a determination to live off cheap goods and debt, rather than to "protect" our economy.
To return to Casper the Smarmy Ghost, that is, Harry Reid. Harry, here's what to do:
When in danger, or in doubt,
Run in circles, scream and shout.
In other words: Business As Usual.