The Only Economic “Green Shoots” are the Ones Being Smoked in Washington

Recently on MarketWatch.com there was a headline that read: “Obama says Government’s role is to unleash creativity in markets.” Oh really… that’s the government’s role? To unleash creativity in the markets?

Obama went on to say: “I have always been a strong believer in the power of the free market”. Perhaps in an academic, lip-service sort of way he has been a believer in the free market. However, in practice, if the Obama Administration continues its interventionist policies, it will go down in history as the modern day destroyer of our economy and what’s left of free-market capitalism.

The centerpiece of Obama’s financial reform involves giving the Federal Reserve the power to function as the “systemic risk regulator” for the entire financial system. This is the same Federal Reserve that has stonewalled all efforts at transparency. This is the same Federal Reserve that isn’t federal at all, but is in fact a privately held corporation made up of the very banks it has been funneling trillions of dollars to in the form of loans, guarantees, bailouts, direct and indirect investments.

These trillions of dollars represent your future tax receipts. These trillions of dollars represent your future production and effort and that of your children and grandchildren. These trillions of dollars represent a kind of indentured economic servitude that future generations will be responsible for servicing. And it’s all happening right now under our very noses.

Most people are so busy coping with the daily challenges of life they falsely believe someone else is looking out for their best interests, and if there was a problem, that someone, such as their elected officials will take care of the situation. The dirty little secret is most elected officials do not understand the situation, especially when it comes to the Fed. Or they do understand it, and choose to perpetuate the myth that the Fed is somehow our friend and is looking out for our best interests — when in fact the Fed is looking out for its own private interests and those of the handful of big banks it represents, and no one else’s.

In a real free market system the big banks and other companies who were greedy and reckless and stupid would be allowed to fail so that the regional and community banks could pick up the pieces and begin to reinvent our economy from the ground up. That is the real definition of how the free market is supposed to operate. But that notion of free market capitalism would have stripped the big banks and the Fed of their dominance and power and returned it to regional and local authorities where it rightly belongs.

Obama says that to avoid another economic collapse, we must give more power to the Fed.

Another economic collapse? With all due respect President Obama, this economic collapse is just getting started. If our elected officials and their speech writers really believe this rhetoric, then the only green shoots in our economy are the ones they are smoking in Washington.