Now that I’m caught up on all my other reading, I’m catching up on …
Happy Birthday Mom!!
From a CNN article on his speech last night:
“I’m a strong believer in free enterprise, so my natural instinct is to oppose government intervention,” he said. But “these are not normal circumstances. The market is not functioning properly. There has been a widespread loss of confidence.”
Quite to the contrary, these are normal circumstances, and the market is functioning properly. When a company over-extends itself with bad investments, runs out of assets, insures too many bad risks, spends more than it earns, and just generally runs itself into the ground, that company goes belly-up.
What is not normal is having the government steal from the taxpayers to prop up insolvent businesses and reward them for failing so spectacularly.
And the only way he’s a strong believer in free enterprise is if he thinks “free enterprise” means regulate everything to death, expand government in every sphere possible, and turn over more and more control over us to the UN.
Seriously, this guy needs an editor or proofreader.
Robert Kiyosaki is a well-known braggart with no bona-fides in real estate or financial investing and seems to have made up most of his stories and background, yet because his books are best-sellers, he gets lots of press time and writes a financial column for Yahoo Finance.
Every once in a while, I’ll read it for the sheer pain-inducing pleasure of reading a poorly-written fluff piece. But today, his article on the financial bail-outs is actually pretty good, except for the poor writing.
It turns out, he’s read “The Creature from Jekyll Island,” and the advice and perspective he gives based on that book is rather decent.
But he still can’t write. Check out these incomplete sentences from this article:
- Personally, I believe the biggest it’s a problem that so many Americans are looking to this year’s presidential candidates… He probably re-wrote that sentence a few times, first without “the biggest,” and forgot to delete “it’s a” after inserting the hyperbole. Kiyosaki loves hyperbole.
- Apparently, my and the nation’s business leaders all went to same school of finance. As written, it reads “my business leaders and the nation’s business leaders,” but in context of the preceeding paragraph, he left out the word friend: “my friend and the nation’s business leaders”
- It’s not an easy book to find, but once you start reading it’s to put down. Maybe he meant “hard to put down.”
General comments on the article:
- Like all his stories about Rich Dad, he probably made up the story about his friend in financial trouble.
- He is correct that there is a lack of comprehensive financial education in our school systems. The school system overall sucks serious lemons.
- He says: “First, printing more money is a kind of bailout that leads to higher inflation.” Printing more money literally is inflation. Increasing the supply of money without increasing the demand for products results in higher prices.
- He says: “Unfortunately, few Americans know the difference between the words “nationalize” and “socialize.”” He then offers an explanation of socialism, but then fails to define or contrast that with “nationalize.” They mean the same thing, if you were wondering too.
- And finally, he attributed our nation’s financial woes to his specialty — financial education — and missed the point of The Creature from Jekyll Island, that our money and banking system is the cause of endless inflation and ever-expanding debt. Our entire money system is based on debt. If every person and company and government agency in America paid back every dollar owed, there would be no dollars left: $0. We’d have to invent a new currency to have “money” again, but preferably, we’d go back to using gold and silver, of which there is a finite supply, and prices would go back to 1940’s levels. The banks would not be allowed to loan out money that doesn’t exist, and wasn’t deposited for the express purpose of lending at interest.
- He never misses a chance to mention that he was in the Marines and in the Vietnam War, although he transferred into the Marines from the merchant marines and never went through boot-camp, and he varies quite a bit in (and never backs up) his boastful claims of what he did in Vietnam.
Whenever a Great Bipartisan Consensus is announced, and a compliant media assures everyone that the wondrous actions of our wise leaders are being taken for our own good, you can know with absolute certainty that disaster is about to strike.
The events of the past week are no exception.
The bailout package that is about to be rammed down Congress’ throat is not just economically foolish. It is downright sinister. It makes a mockery of our Constitution, which our leaders should never again bother pretending is still in effect. It promises the American people a never-ending nightmare of ever-greater debt liabilities they will have to shoulder. Two weeks ago, financial analyst Jim Rogers said the bailout of Fannie Mae and Freddie Mac made America more communist than China! “This is welfare for the rich,” he said. “This is socialism for the rich. It’s bailing out the financiers, the banks, the Wall Streeters.”
That describes the current bailout package to a T. And we’re being told it’s unavoidable.
The claim that the market caused all this is so staggeringly foolish that only politicians and the media could pretend to believe it. But that has become the conventional wisdom, with the desired result that those responsible for the credit bubble and its predictable consequences – predictable, that is, to those who understand sound, Austrian economics – are being let off the hook. The Federal Reserve System is actually positioning itself as the savior, rather than the culprit, in this mess!
• The Treasury Secretary is authorized to purchase up to $700 billion in mortgage-related assets at any one time. That means $700 billion is only the very beginning of what will hit us.
• Financial institutions are “designated as financial agents of the Government.” This is the New Deal to end all New Deals.
• Then there’s this: “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.” Translation: the Secretary can buy up whatever junk debt he wants to, burden the American people with it, and be subject to no one in the process.
There goes your country.
Even some so-called free-market economists are calling all this “sadly necessary.” Sad, yes. Necessary? Don’t make me laugh.
Our one-party system is complicit in yet another crime against the American people. The two major party candidates for president themselves initially indicated their strong support for bailouts of this kind – another example of the big choice we’re supposedly presented with this November: yes or yes. Now, with a backlash brewing, they’re not quite sure what their views are. A sad display, really.
Although the present bailout package is almost certainly not the end of the political atrocities we’ll witness in connection with the crisis, time is short. Congress may vote as soon as tomorrow. With a Rasmussen poll finding support for the bailout at an anemic seven percent, some members of Congress are afraid to vote for it. Call them! Let them hear from you! Tell them you will never vote for anyone who supports this atrocity.
The issue boils down to this: do we care about freedom? Do we care about responsibility and accountability? Do we care that our government and media have been bought and paid for? Do we care that average Americans are about to be looted in order to subsidize the fattest of cats on Wall Street and in government? Do we care?
When the chips are down, will we stand up and fight, even if it means standing up against every stripe of fashionable opinion in politics and the media?
Times like these have a way of telling us what kind of a people we are, and what kind of country we shall be.