Thursday, October 30, 2008

Of Paul, the Election and the Meltdown

I am an unabashed supporter of the only Republican candidate who had the slightest clue of the coming Meltdown, as well as the only one with an answer beyond prescribing the patient more of the poison that is killing him. I even supported him financially, tho what I gave was indeed a pittance. (Not the widow's mites, but not much more.) I would truly have loved to see him competing in this sham of an election. But now I have perhaps a change of heart about the above. Some will call this heresy but hear me out!

As stated above, Paul is the only one with an answer. Paul's answer, of sound currency small government and fiscal responsibility, is not perhaps real popular with the markets and certainly not with the powers behind the market. A sound currency limits profit from ever increasing fractional banking and a system of derivatives that is many times larger than the economy itself. Small government and fiscal responsibility would end more than a few companies "free rides" that they receive in the form of contracts that pay far above what the market would otherwise bear.

Now the Meltdown is really the key factor in all of this. The question about this meltdown isn't that it was coming. Its been written on the wall for 95 years now. The question is, was this artificially brought to a head before the election? Normally the FED smooths things out for election years but this year it was either beyond their ability to do so, or they did not care to. The FED sat on rates a few times over the last winter when the markets were calling for cuts. There is also some evidence that JP Morgan Stanley withheld a large sum of money from Lehman Brothers that would have kept them solvent, rather than being one of the many casualties. One should note that this is not a precedent for Morgan Stanley, who did this at least once before, in the days leading up to the Great Depression.

Regardless of whether or not this was caused to happen before the election or it was just its natural timing I can be sure of one thing. The media would lay the blame for the Meltdown on Paul. They would give the public numerous stories about how Paul's sound currency beliefs and the dreaded "Gold Standard" were causing the markets such fits that everyone was getting out of the market before Paul took office. The constant harping that the Old Media is capable of would convince the public that it was indeed Paul's fault and they would run in the direction of the one whom the media would no doubt cast as an even greater man than they already cast the Obamessiah.

So that sums up the reason that I am glad that the Repugnicans did everything they could to keep the only informed candidate among them from the nomination. Paul's winning would have seen his name tarnished and his beliefs and those of our Founding Fathers.

In closing let me include a quote that I have put up on this blog before:
"If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered." -- Thomas Jefferson in 1802 in a letter to then Secretary of the Treasury, Albert Gallatin