There is a big misconception in the United States and around the world that the Economy of the United States is free market capitalist. To believe that the United States has a free market economy is utterly naive and ignorant of economic facts. The interest rates are not a result of demand, supply, and risk but are artificial due to market interference by both the Federal Reserve and the US Government. Major companies are not successful due to their intelligent business practices but because of government contracts they receive, regulation they lobby for, government subsidies they receive, and bailouts that eliminate their risk while compensating for their losses. All these anti-free market variables are not new but have dictated American business for over a century.
The anti-free market economy is not the result of one party as both Republicans and Democrats have supported and continue to support legislation that attacks free market principles. Through big government incentives, regulations, subsidies, and bailouts, both parties have destroyed the free market and created an economic mess that rewards financial irresponsibility, creating an environment in which it is difficult for the responsible to compete.
Even the universally idolized conservative and pro-free market President Ronald Reagan implemented significant anti-free market policies. With his Executive Order 12631 President Reagan ensured that the US does not have a market system based on supply and demand but one that is heavily influenced by Government and the hidden agendae of those who are represented by the President’s Working Group on Financial Markets.
It is beyond obvious that the United States does not have a free market and that its economy is not capitalist. Whether “China Does Capitalism Better than America” was debated by Ian Bremmer, Minxin Pei, Orville Schell,a and Peter Schiff in New York during an Intelligent Squared debate hosted by Robert Rosenkranz and moderated by John Donvan.
Within the last twelve months, Fox News ended the relationship with two of its political television show hosts. Last year Fox and Glenn Beck parted ways and earlier this month Judge Napolitano and his Freedom Watch show were cancelled by Fox.
“It was announced earlier in the week that FOX Business Network has canceled Freedom Watch, the popular show anchored by Judge Andrew Napolitano. The show also enjoyed a fiercely loyal online following, which no doubt helped draw a young and affluent demographic away from their computer screens and to FBN.”
Here are the videos of the last shows by Glenn Beck and Judge Andrew Napolitano prior to Fox announcing the cancellation of their shows.
Ron Paul, who is one of four remaining GOP candidates running for President, has returned to Washington D.C. to address Ben Bernanke of the Federal Reserve System. Inflation, budgets, deficits, and the US Dollar currency were topics discussed at the hearing of the House Financial Services Committee. Ron Paul consistently criticized the anti-free market US Financial and Monetary system throughout his 30 year political career in Congress. He is also the only Presidential Candidate who forecasted the housing bubble and the inflationary price actions as a result of the debasing of the currency by the quasi-private Federal Reserve.
The Republicans have debated once again. Among all Republican candidates who are running for the Republican Nomination to face President Obama in the upcoming elections, there is only one who stands out as a true fiscal conservative. There is only one nominee who has a track record of voting consistently against the growth and spending of Government while all other candidates have had their share of supporting growth in government and spending. While others supported No Child Left Behind, the costly wars in Iraq and Afghanistan, subsidies for various industries, government loan guarantees, and the bailouts this one candidate voted against it all.
The largest police union in Greece has threatened to issue arrest warrants for officials of EU Nations and those of the International Monetary Fund (IMF). The police union threatened to issue those arrest warrants as much of the population is at unrest due to the very unpopular austerity measures that the IMF and officials of larger EU economies are expecting of Greece. The Greece population also fears that they would lose their National Sovereignty.
“Since you are continuing this destructive policy, we warn you that you cannot make us fight against our brothers. We refuse to stand against our parents, our brothers, our children or any citizen who protests and demands a change of policy,” said the union, which represents more than two-thirds of Greek policemen. We warn you that as legal representatives of Greek policemen, we will issue arrest warrants for a series of legal violations … such as blackmail, covertly abolishing or eroding democracy and national sovereignty”
Given that Greece joined the European Union in 1981 and the Eurozone in 2001, it is ironic that now the Greek population is worried about losing their sovereignty. By accepting to become part of the European Union, Greece dissolved its monetary system and directly opted to lose whatever sovereignty it had left.
As Mayer Amschel Rothschild said:
“Give me control of a nation’s money and I care not who makes its laws.”
Welcome to reality Greece. You aren’t the only people who are starting to worry about their sovereignty long after giving it away. Americans still wrongfully believe they are a sovereign Nation despite having given their power over the monetary system to a private banking cartel in 1913.
Newt Gingrich, who served as Speaker of the House from 1995 to 1999, is one of the front runners in the Republican Primaries for the 2012 Presidential Nomination. As a Republican, he is following the hypocrisy of the many GOP party members who claim to support small government, free markets, balanced budgets, and personal freedoms yet have a history of supporting the contrary. The facts are out there but many self-proclaimed conservatives rather ignore Gingrich’s history, his support for debt ceiling increases, his support for socialism, his anti-free market views, etc and ignorantly believe his contradictory promises.
Newt Gingrich Supports Government Health Care Mandates
The official Newt2012 website states that Gingrich would:
“Repeal and replace Obamacare with a pro-jobs, pro-responsibility health plan that puts doctors and patients in charge of health decisions instead of bureaucrats.”
This once again proves that Gingrich supports government interference in the health care industry. A free-market proponent would not have the government implement a health plan, they would repeal Obamacare and eliminate other regulations that prevent competition and freedom of choice. Further, in 2003 Newt Gingrich supported “The Medicare Prescription Drug, Improvement, and Modernization Act of 2003” which was one of the biggest Federal Welfare Expansions since the 1960s. This increase in Medicare coverage allows Pharmaceutical companies to increase their profits while the increase in socialized benefits further contribute to the National Debt. That is neither fiscally conservative nor pro-free market.
In an interview with Meet the Press on May 15, 2011, Gingrich reaffirmed that he supports Government mandates in the health care industry by stating “all of us have a responsibility to pay – help pay for health care”. That is in agreement with the big government individual mandate that President Obama and the left supports. Connecting all the dots of Gingrich’s actions and statements on health care, WTF Finance comes to the conclusion that a Gingrich repeal of Obamacare would result in a replacement that continues to be anti-free market, supports socialism, and allows the health care industry to profit from government guarantees and the inevitable bailout. This is not surprising given that Newt Gingrich has a history of supporting big government policies that reward irresponsible and unsound financial business practices, as was the case with Fannie Mae and Freddie Mac.
Newt Gingrich Profits From Fannie Mae And Freddie Mac
While GOP Presidential candidate Ron Paul correctly forecast the Housing Bubble in 2002 and consistently criticizes the anti-free market institutions Fannie Mae and Freddie Mac, Newt Gingrich has a history of supporting and profiting from these two Government Sponsored Enterprises that socialize the housing market. Gingrich was also a paid consultant for Fannie Mae and Freddie Mac. The Associated Press reported that Newt Gingrich received approximately $1.5 Million from the two GSEs:
“Gingrich’s history at Freddie Mac began in 1999, when he was hired by the company’s top lobbyist, Mitchell Delk. He was brought in for strategic consulting, primarily on legislative and regulatory issues, the company said at the time. That job, which paid about $25,000 to $30,000 a month, lasted until sometime in 2002. In 2006, Gingrich was hired again on a two-year contract that paid him $300,000 annually, again to provide strategic advice while the company fended off attacks from the right wing of the Republican Party.”
Gingrich’s support for these two flawed financial institutions continued in 2007 when the politician reaffirmed his support for socialism in the housing market during a Wall Street Journal Interview:
“While we need to improve the regulation of the GSEs, I would be very cautious about fundamentally changing their role or the model itself…when you need government to help spur private enterprise and economic development….It’s not a point of view libertarians would embrace, but I am more in the Alexander Hamilton-Teddy Roosevelt tradition of conservatism”
From Newt Gingrich’s actions and statements it is clear that he neither understands nor supports free markets. It is obvious that Newt Gingrich does not understand the root cause of the housing bubble and how government interference distorted the demand and supply variables contributing to the financial mess.
Newt Gingrich’s Statement On Strong Dollar Policy
Newt Gingrich’s official website states that a strong dollar policy is part of his plan for economic and job growth:
“Strengthen the dollar by returning to the Reagan-era monetary policies that stopped runaway inflation and reforming the Federal Reserve to promote transparency.”
Woodrow Wilson established the Federal Reserve by signing the Federal Reserve Act of 1913 into law. By doing so, neither the President of the United States nor its Congress have any control over the monetary system or monetary policy. Monetary policy is set by the quasi-private Federal Reserve System that Wilson established. The hypocritical big government policies of President Reagan devalued the US Dollar as his deficit spending policies contributed to the US debt. In 1995 Newt Gingrich stated in Claremont, NH that he is a big fan of FDR and Woodrow Wilson. How can a supporter of big government politicians and deficit spending be serious about a strong US Dollar policy?
Newt Gingrich Supports Socialism
Newt Gingrich has made it clear that he is a proponent of socialism. He stated that “all of us have a responsibility to pay – help pay for health care” and by supporting Fannie Mae and Freddie Mac he also supports Socialism in the Housing Market, as that is the function of those two Government Sponsored Enterprises. Anybody who can identify themselves with the policies of President Franklin Delano Roosevelt to the extent that Newt Gingrich does clearly supports Socialist policies and has no problem spreading the wealth.
“The greatest Demcratic President of the 20th century and by my judgment the greatest President of the 20th Century…FDR is the greatest Political Leader of the 20th Century”
Newt Gingrich On Debt Ceiling
Newt Gingrich is talking about a strong dollar and the importance of balancing the budget. But what does he truly believe when it comes down to it? Throughout his political career Gingrich supported costly big government bureaucracies and policies that put the United States into greater debt. Newt Gingrich has a history of voting for debt ceiling increases, as he did on June 4, 1980 when he voted “Aye” on House Vote #935.
A Newt Gingrich Presidency would continue the big government policies that FDR, Carter, Reagan, Bush, Clinton, Bush, and Obama, etc. have put in place. Gingrich promises small government, balanced budgets, fiscal discipline, a strong dollar and free markets but his political history and love for big government politicians and policies indicate otherwise. The fact that Gingrich receives so much support from the Republican base illustrates that both Republicans and Democrats share the same big government ideologies.
While the hypocritical right and the left agree that expansion of government is the solution, comedian Goerge Carlin (RIP) never held back and spoke the truth. George Carlin understood that the media and education system are used to sway public opinion and that laws and regulation are put in place by the powerful corporations, with the help of the politicians, to enrich themselves. Laws and regulation are put in place to the benefit of corporations; they reduce their risk, increase their profit, eliminate their competition, etc. Thank you for speaking the truth George Carlin.
But there’s a reason. There’s a reason. There’s a reason for this, there’s a reason education SUCKS, and it’s the same reason it will never, ever, EVER be fixed.
It’s never going to get any better, don’t look for it, be happy with what you’ve got.
Because the owners, the owners of this country don’t want that. I’m talking about the real owners now, the BIG owners! The Wealthy… the REAL owners! The big wealthy business interests that control things and make all the important decisions.
Forget the politicians. They are irrelevant. The politicians are put there to give you the idea that you have freedom of choice. You don’t. You have no choice! You have OWNERS! They OWN YOU. They own everything. They own all the important land. They own and control the corporations. They’ve long since bought, and paid for the Senate, the Congress, the state houses, the city halls, they got the judges in their back pockets and they own all the big media companies, so they control just about all of the news and information you get to hear. They got you by the balls.
They spend billions of dollars every year lobbying, lobbying, to get what they want. Well, we know what they want. They want more for themselves and less for everybody else, but I’ll tell you what they don’t want:
They don’t want a population of citizens capable of critical thinking. They don’t want well informed, well educated people capable of critical thinking. They’re not interested in that. That doesn’t help them. Thats against their interests.
Thats right. They don’t want people who are smart enough to sit around a kitchen table and think about how badly they’re getting fucked by a system that threw them overboard 30 fucking years ago. They don’t want that!
You know what they want? They want obedient workers. Obedient workers, people who are just smart enough to run the machines and do the paperwork. And just dumb enough to passively accept all these increasingly shitty jobs with the lower pay, the longer hours, the reduced benefits, the end of overtime and vanishing pension that disappears the minute you go to collect it, and now they’re coming for your Social Security money. They want your retirement money. They want it back so they can give it to their criminal friends on Wall Street, and you know something? They’ll get it. They’ll get it all from you sooner or later cause they own this fucking place! Its a big club, and you ain’t in it! You, and I, are not in the big club.
By the way, its the same big club they use to beat you over the head with all day long when they tell you what to believe. All day long beating you over the head with their media telling you what to believe, what to think and what to buy. The table has tilted folks. The game is rigged and nobody seems to notice. Nobody seems to care! Good honest hard-working people; white collar, blue collar it doesn’t matter what color shirt you have on. Good honest hard-working people continue, these are people of modest means, continue to elect these rich cock suckers who don’t give a fuck about you….they don’t give a fuck about you… they don’t give a FUCK about you.
They don’t care about you at all… at all… AT ALL. And nobody seems to notice. Nobody seems to care. Thats what the owners count on. The fact that Americans will probably remain willfully ignorant of the big red, white and blue dick thats being jammed up their assholes everyday, because the owners of this country know the truth.
Its called the American Dream,because you have to be asleep to believe it.
The investment ratings business is like any other. You please your customer and treat them like a king or else you’ll lose them to your competition. Why would it be any different for a rating agency? It isn’t, which answers the question as to why S&P, Moody’s, Fitch, and other analysts missed the top of the Real Estate Bubble. It didn’t make business sense for them. Simple as that. A rating agency isn’t there for the benefit of those that do not provide them with a revenue stream, just like a Real Estate Agent isn’t there for your benefit but for the commission. There’s no difference between a used Car Salesman, a stock broker or a rating agency. They are all there to sell you something while making a profit in the process. It’s naive and financially ignorant to think that any professional investment advice you receive is there for your benefit, especially when you don’t pay for it. And don’t be fooled thinking that as a small client you receive valuable advice for your money from a stock broker.
An upgrade for a stock often results in increased demand for that security and provides the big player with an excellent exit strategy. When a company or city pays an investment rating agency to review its debt product the buyer of the rating expects a good review in return. The paid for review is a business cost which allows the city to sell more debt and at a better annual return. If the rating agency fails to put a positive spin on the review the buyer of the review will seek out a competitor that gets the job done. WTF Finance already illustrated the ratings politics between Warren Buffett’s Bershire Hathaway and Moody’s.
Today’s article in the LA Times highlights the game of rating politics:
“After its downgrade of U.S. debt last week, S&P cut its rating of L.A.’s general investment pool to AA from AAA. It also downgraded dozens of other municipalities with large investments in U.S. Treasury notes.”
Los Angeles stops using S&P
In response to the downgrade, which according to WTF Finance is still too optimistic, Intermim Los Angeles Treasurer Steve Ongele who was just appointed by Mayor Villaraigosa states that “We have really lost faith in S&P’s judgment”. San Mateo County of California and Florida’s Manatee County both opted to no longer renew their investment rating review contracts with S&P. Steve Ongele was also quoted stating that
“The market crash that came with the real estate debacle, it happened because folks like S&P rated AAA corporations that were not worth much of anything, corporations that are no longer there today…The fact that we have the courage to do this, the fact that we are the first city, I think that’s a big bragging right.”
This perfectly illustrates that companies and governments buy their reviews only from those ratings agencies who give favorable ratings. Overrating Real Estate companies was a problem but when your city is downgraded you opt to no longer renew the rating review contracts. How convenient and hypocritical of Los Angeles. The ratings process is a business after all and pleasing your customer is as important and essential for the bottom line as in any other sector.
Ron Paul, long time Congressman from Texas is running his third Presidential Campaign. Ron Paul is a free market proponent and the only Congressman in Washington DC who forecasted the Housing Bubble. Ron Paul blames the big government anti-free market policies of the government and the Federal Reserve for having created an environment in which our economic problems could grow.
Only the naive and financially ignorant would rely on a credit rating from a company without performing their own due diligence. Yet many people rely on analyst upgrades, downgrades, and ratings, even fund managers that are in charge of billion dollar portfolios. Politics is at the root of most business decisions and it comes to no surprise that US stock market cheerleader Warren Buffett is once again pumping the US Stock market while dismissing reality.
After Warren Buffett’s Berkshire Hathaway cut its investment holdings in Moody’s, the rating agency reduced Berkshire’s rating. Now, just days after Buffet came public with his statement disagreeing with Standard&Poor’s downgrade of US Debt the rating agency released a statement saying Berkshire is under review for further downgrades. If you live the life as the cheerleader of the US Economy and benefit from government interference including the bailouts you might as well put up with the politics that comes with it.