March 30, 2009

Dear Preachers:

We are moving closer and closer to Marxist Socialism with our “lying President’s” Treasury Secretary Tim Geithner’s proposed sweeping reform of our nation’s financial system which puts the nation’s banks, insurers, and hedge funds under direct government control — where they least need to be.

Geithner said Thursday that President Obama’s administration needs to impose “not modest repairs at the margin, but new rules of the game” for America’s banks, finance companies, insurers, and hedge funds.

The only problem is, the old rules of the game were set by the very people in Congress (Reid, Pelosi, and Socialistic gang), who will set the new ones.

This means the new rules likely won’t be much of an improvement, of the socialism that “gang” is intent on installing — if any.

The irony of this, of course, was pointed out by political scientist Michael Barone, who notes the bank bailout plan unveiled by Geithner earlier this week actually relies heavily on mostly unregulated companies to bail out regulated ones.

Now, Geithner wants control of even those unregulated companies, though they’re guilty of nothing other than being successful.

Do you recall how the first President Bush was ridiculed for seeking a “new world order”?

Well, what the Treasury now proposes constitutes nothing less than a “new economic order,” one that will take away much of the autonomy of our extraordinarily successful free market economy and smother it with new rules.

And, the “new rules,” my preacher friends, are simply those of “Marxist Socialism.”

Nor is this the only power grab by government of late.

President Obama, for example, wants to force what he calls a “major restructuring” on troubled U.S. carmakers GM and Chrysler, pushing them ultimately to make green-friendly cars central to their businesses — no matter what consumers might want.

Meanwhile, the Federal Reserve wants sweeping new powers to regulate, punish, and oversee the financial industry, and to intervene if it thinks it needs to. And, of course, in the middle of all this sits Congress itself, which will write the new laws and regulations.

Yet, with all these plans to exert ever more control over the economy, few people are asking the appropriate question:

Do those in government have the knowledge and ability to run our economy?

The answer, put bluntly, is no.

This could be seen in Postmaster General John Potter’s trip to Congress Wednesday, begging for more money for the ailing postal service. “We are facing losses of historic proportion,” he said. “Our situation is critical.”

This from the head of a government-run company that has a virtual monopoly in its business — the delivery of first-class mail — and still can’t make a profit.

Losses last year totaled $2.8 billion.

Two other major government enterprises — Fannie Mae and Freddie Mac — were largely responsible for the mess we’re in now.

You will remember Bill Clinton’s reviving of Jimmy Carter’s “Community Reinvestment Act,” that pressured banks into affirmative-action lending, which then allowed all those people loans who had never repaid previous loans.

Managed mostly by former Democratic politicians, they, too, had a virtual monopoly, holding $5.4 trillion of the total $12 trillion in U.S. mortgages, and still went bust.

Such managerial acumen hardly inspires confidence.

Who’s going to make the decisions anyway? Some Treasury functionary?

President Obama, whose private-sector experience is virtually nil?

How about his top aide, Rahm Emanuel, who served a stint on Freddie’s board during its period of greatest excess?

Economist Friedrich Hayek noted in his 1945 classic “The Use of Knowledge in Society” how ill-equipped governments are to collect, organize, and act upon the millions and millions of market signals sent each day by private markets.

The result, inevitably, is economic chaos, confusion, misallocation of resources, and enormous waste as in the old USSR. As recent as the last three months, I’ve written you concerning the man who came from the Soviet Union, and then detailed all that chaos and corruption.

Hayek’s insights, which eventually won him a Nobel Prize, are as relevant today as then.

Letting bureaucrats and politicians direct our economy isn’t the end to our troubles.

It’s only the beginning.

But, Preacher Friends, as I’ve written you before, the “obamessiah” wants to bring about the “beginning of the end” of our “free market way of capitalism” established by our Founding Fathers who had enough gumption to know how government and businesses ought to be regulated, and then consequently run. We’ve got to be “hitting-pitching-and-catching,” or the “obamessiah” and his leftist elitist minions are going to end our system of government!!!!!

JIM VINEYARD
YEDIDIM OF ISRAEL
www.yedidimofisrael.com

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