Thursday, September 09, 2010

President's Proposed Public Works Project Looks Like The Federal Reserve 2.0 - More Wealth Transfer For The Elitists On The Backs Of The Sovereign

The elites can't find a decent return with near zero percent interest rates and a wildly gyrating equity market. No problem. Just find another way to mooch off of the productive people in society. This proposal smells like Larry Summers. I appreciate Larry Summers as someone who is bright and capable but when that energy is channeled for his crony friends as a public servant, that's where it's time to draw the line. Regardless of where it came from, this article alludes to the fact that public works spending will need to be tied to projects which charge fees so investors can get their due return. Higher fees for your water? More toll bridges and toll roads? More fees to use public parks? This public works proposal is steeped in cronyism and corruption. It smells a lot like the original TARP program.

We have railed on this concept of public-private partnerships for years. It is a criminal transfer of public assets into private sector hands without the consent of the sovereign. It's corporatism and cronyism. It's favoritism for the privileged which acts as a tax on society. It's not democracy. Quite frankly, it's the Federal Reserve 2.0

First of all, a $50 billion public works program is a joke. The United States needs a $5 trillion public works program to rebuild our crumbling infrastructure. And it should be over some extended period of decades. There are plenty of smart and qualitied people who can figure out the specifics. This is a preposterous and corrupt notion that the United States needs to use seed money from private investors to create its own bank. WTF is this? Are these politicians idiots or have they just sold out their country? We don't need a new version of the Federal Reserve to fund public works projects that will line the pockets of the rich off of the backs of the sovereign. The President's proposal is more special interest solutions serving the very few rather than democracy.

If President Obama wants to start up the The Federal National Democratic Bank of the United States of America, all the government needs to do is direct the Treasury to print enough money to fund the bank. That could be fiat money or it could be backed by silver or gold or by JuJu beads. I could really care less. What's important is that it's the people's bank and that it has severe public oversight, accountability and democratic controls as a people's bank. And that bank could print debt-free money to spend on public works projects. And for god's sake, for the howling inflation monkeys, it is not going to cause inflation. We have been advocating that the Federal Reserve do this for almost two years now and during that time all we hear is more howling while the situation becomes more dire.

This proposed plan by President Obama smells of more rot and special interest usury on the backs of the American people.

Change you can believe in.

Title link also here.
posted by TimingLogic at 5:55 AM

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