The sad thing is, one can probably learn all he needs to know about economics in two paragraphs. Yet, people write about it for years and years and try rephrasing everything and giving examples, and people in high places continue to act as if they don’t get it. So, I’ll try again.
One would have to be drunk on delusion to believe a word of advice the president wants to give to financial institutions. Today, anybody who cared to think the word economics had any meaning, would see contradictions staring them in the face. But then, the communist school system has raised a generation that believes “capitalism” means “cronyism” and “deregulation” means “Armageddon.”
Adam Smith’s invisible hand was not mysterious. People want to buy things they can use. They don’t want to be presented with a market of cheap, unusable items produced to overflowing because somebody wanted to make them and government subsidized the useless widget industries so they wouldn’t fail.
The president presumes we can build an economy on nonprofits. He has been called anti-capitalist by many in-the-know. The news today reads as if the president wants us to all delude ourselves into believing that good banks are banks that make foolish decisions and become insolvent, requiring financial assistance. Citibank did such a good job of it, the president is giving them the red carpet (publicly this time) so he can learn how to coach financial institutions that are adept at risk assessment to likewise fail.
The news reminds me of a true story I read in a children’s history book about a chronicler who went to exciting and exotic lands. In one, he learned a serious party animal had become king. Upon his anointing, the king fired all the oracles who acquitted him because he knew they were false. I only relate this story because I know a little about Citibank’s ambitious recruitment of unqualified people to take out loans. They deserved to fail regardless of how large they were, but the president talks as if everybody can hope and money will flow to them. Government prints money, and people spend it on nonprofits. Is anything missing, like shoes and milk? Communist regimes were supported by US Foreign Aid, funded by the generous contributions of American capitalists.
One king was wise and expelled obvious liars from his circle of advisers. The other seems bent on taking all the bad advice people from the other party want to give him to tank his administration.
