Its Just Your Money..

Jack McHugh as usual, reveals a little needed historical perspective in his recent writings.  Louis Rukeyser wallstreet commenter had a pretty decent take on the market crash of 1987 and rightly pointed out what should be patently obvious to any of us, “Its just your money.” Remarking further, we are still here and family is still family, etc..

Rukeyser was correct, and his words should have been heeded by our congress.   I believe Jack’s words are to help calm us after seeing the response to Congress’ action, and perhaps the initial problem itself. I would personally be one of those seemingly excited folks, but not for the reason Congress acted.  Money in 401Ks, of which I have a little.  Money being passed between financial institutions tightening somewhat.  The fear of losing that precious dollar has driven good men and women to act contrary to their stated principles of limited government.  The actions of Congress is that which I fear now.

We have reached a state in society where more effort seems to be spent directing government solutions to problems, (which cry out for market based reasonability) than protecting our individual liberties and the fundemental tenets of government’s role.  By inserting itself as a buyer and manager of property, the federal government just expanded its size, and improperly takes a new role in the markets as a “player.”  The Post office, an institution which many regard as inneficient, corrupt and wasteful is suddenly going to seem Thrifty, well run and succesful by comparison.

Congress, in its ability to levy taxes is a gun to your head.  A newly designed forceable extraction of a more of your efforts will be the next stage, as this money is not really available due to the reality of an already existing yearly deficit in the federal budget.  There will be increased impetus to pass new ways to collect from us, and enforcement of tax collection is about to be hardened.

The cost is more than the simple tool we use to exchange for the product of our individual efforts. Before congress took this action, it was just money.  After this was passed, our government has grown yet again, the power it wields over us is less checked, and our freedom is lessened.

Its just money, but if the “state” is allowed to be the decider of pricing, and who gets what by taking “ownership” of it? It follows that we have crossed the line into socialism, and we begin to lose our liberty.

2 comments for “Its Just Your Money..

  1. Jack McHugh
    October 4, 2008 at 1:05 pm

    ‘Fraid we have to agree to disagree on this one. I said to some Austrian purist colleagues who think the bailout is the end of capitalism as we know it that they need to expand their imagination, and also consider history. Any non-laissez faire liquidity-injecting intervention performed in 1929-30 would have been a pimple on the rear-end of the wholesale replacement of limited government by an unconstitutional welfare state that the Depression caused an entire generation to gleefully embrace.

    Think the bailout is bad? We ain’t seen nothing yet if locked-up credit markets cause a world-wide depression. It took 50 years for the free market to come back from the last one . . .

    Rep. Paul Ryan (who worked hard back when it mattered to rein in Fannie and Freddie): “(This was a) Herbert Hoover moment, where he sat by and let a Wall Street crash turn into a Great Depression. This bill is not perfect, but doing nothing is far worse than passing this bill.”

    I think Ruke would not have disagreed.

  2. jgillman
    October 4, 2008 at 1:35 pm

    Yes we would disagree Jack.. Brian Moore the Socialist Presidential candidate “embraces” this bill, and now argues government needs to go even further.

    This Crap Sandwich with a side of bacon will be coming out the other end with a great deal of pain.

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