Liberty MavenRon Paul Supporters, Good or Bad? IMF To Investigate The U.S. Financial Markets
June 30th, 2008 8:15 pm | by Marc Gallagher | Published in Banking, Economics, Federal Reserve, Free Market, Investing, Maven Commentary, Money, Ron Paul | 2 Responses
The IMF has informed Ben Bernanke that “the board has ruled that a so-called Financial Sector Assessment Program is to be carried out in the US.” This brings up an interesting dilemma for Ron Paul supporters who monitor the Fed and liken it to an unconstitutional cabal. We are against the IMF and federal style regulation over markets at all levels, yet we painfully yearn for more transparency from the Federal Reserve. If we aren’t yearning for more transparency from the Fed we are advocating abolishing it outright.
So the question is then, do we support the IMF investigating the hated Federal Reserve because it conveniently supports our anti-Fed sentiments? Or are we truly and purely against the IMF and it’s authority to perform such investigations?
In the opinion of David Hirst in Australian’s “The Age”, such IMF interventions are long overdue for America. After all many other IMF countries have had to go through the same investigations. Hirst calls it a “blow to American exceptionism.”
[The] IMF intervention (my expression) is a humiliation for the US, the real significance may be that this is another blow to American exceptionism.
While the examination is far reaching, and deeply intrusive, Canada, Britain, Italy, indeed two-thirds of IMF members, have participated in the program. The new President will soon discover the age of US exceptionism is over.
Meanwhile the US markets have entered bear territory, the economy has done likewise and we are at the beginning of a long and tortuous process before rebuilding can even commence.
The entire article by Hirst is well worth reading although his argument seems to be for demanding fairness from the IMF rather than whether performing such “investigations” should be done in the first place.
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July 1st, 2008 at 9:15 am (#)
This is bad in that our Federal reserve has to be investigated.
It’s good in that this will show some transparency of what has been going on with the Federal Reserve.
Rumors are that the Federal Reserve has been giving out very large loans to favored parties, who then took the money, invested it in the stockmarket, then paid back the loan one month later. The amount of money that has been handed over to these favored parties is such a large sum, that the favored parties are able to drive stock indexes with it.
This is what many people recognize as the so called Plunge Protection Team commonly abbreviated the PPT which has essentially kept the stock market up at the expense of diluting the dollar and every American’s savings.
However, fundamentals always reign supreme and at some point either we have to have a massive devaluation of the dollar and huge increases in profitability in companies to justify the price to earning ratios or we have to have a stock market crash to bring the P/E ratio back down reality.
Either way, Joe 6 Pack is going to suffer but the favored parties are going to walk away with huge gains for basically manipulating the stock market at taxpayer’s expense.
All the people who have been seeing monkey business in the market I think will soon be exonerated for their accusations that the PPT exists. Of course, these people won’t be credited for their astute observations, just as nobody remembers any of the “nuts” that were calling BS on Bush’s claims of weapons of mass destruction in Iraq before the war was started. It will be a Pyrrhic victory at best and the colluders like the media will walk away scott free, again, claiming ignorance.
July 2nd, 2008 at 11:29 am (#)
[...] Reaction to the this article can be found on The Age (an Australian news website). Liberty Maven discusses the dilemma in which the IMF puts Ron Paul supporters: We are against the IMF and federal [...]