Sunday, February 22, 2009

Ron Paul Is A Dope

So are his libertarian/free market pals.

A moment ago I finished watching the latest Real Time with Bill Maher.* Like his cohorts in delusion, Paul maintains we should let the banks go bankrupt. End "corporate" welfare. Prevent passing the bailout/StimPakTM cost onto "future generations." This one I like the best -- exercise even less government oversight & regulation. In brief, blow up our whole economic model.

In a year somehow the US economy will magically right itself. The rest of the world will be either unaffected or greatly changed for the better.

Yeah, right. I won't waste time arguing this dogma's abject stupidity. However, they completely whiff on several assured major repercussions. Not the least of these is the libertarian/free marketeers operate as if forced bankruptcies of Citibank, Bank of America, etc., will be a free ride. They forget about the lil' thing called the FDIC. We've just never had to use it.

Once the banks go bankrupt, taking the money of depositors with them, the Federal Government has insured, has guaranteed, a huge chunk of our cash. FDIC is bound to pay as much as $100,000 for all deposits except retirement accounts i.e. IRAs which are insured up to $250,000. Anything over those amount is gone. Effectively removed from our economy.

Under Ron Paul's criteria is this not another form of "welfare"? Where would the money come from? Does Ron Paul believe this FDIC bill wouldn't be passed on to "future generations"?

Further proof Libertarianism is stupid and a reliably unrealistic posture. There's little or no chance their ideology will ever be employed wholesale. As such it affords them the ultimate out. It's not their fault when "it" doesn't work. When "it" does work they carp on and on about how it would work much better if only we'd only listen to them.

*Standby for a whole heap of They Said It I Repeat Its.