Modern Pensées

Reconsidering theology, philosophy, culture, economics, and politics

The Scam of Obamanomics

with one comment

I remember during my time in undergrad at University of Florida several interactions with the staunch political left.  I was there during the 2000 election and for the primaries and for some of the buildup to the 2004 election.  I recall one of the main critiques of the those staunch left was the relationship of the Republican party with “big business.”   They would cite ties with oil and such.  Those ties definitely existed within the Bush administration.  The Bush family is from Texas and has roots in oil.  VP Dick Cheney was the former CEO of Halliburton.  Their critiques would not bother me if it were not for par for the course for the left and right alike.

Here is one of the many scams of Obamanomics…

The big banks made a boatload of money this past year.  One of the big ways they did it was through a genius little scam the Obama administration (and the quasi-independent Federal Reserve) has setup for them.  Its pretty simple.  The Fed has the interest rate that banks can borrow (almost limitlessly) at zero percent interest.  These same banks then with that zero percent loan money but up US Treasury Bills (whose interest rates vary from relatively small to 4.5%+ for the 30 year variety).  The banks get rich, Obama gets some financial donors, and the American taxpayer gets screwed.  In effect, the American taxpayer is subsidizing the big banks.  I am all for capitalism.  I am not for subsidizing these banks through this scam.  Henry Paulson, former CEO of Goldman Sachs, and the supposed chief architect of our financial recovery, has taken the opportunity to make sure Goldman Sachs gets very wealthy and that his former competitors get less-than-favorable deals with the federal government.  Unimaginable greed drives these scammy deals.  The accumulation of wealth is not intrinsically evil, but the means of accumulating that wealth should have at least some level of integrity and morality.

I think Timothy Carney’s book entitled Obamanomics:  How Barack Obama is Bankrupting You and Enriching His Wall Street Friends, likely has some similar themes.

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Written by Michael Graham

March 15, 2010 at 12:38 pm

One Response

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  1. While my presidential vote was a write-in for Ron Paul, I think it is overwrought to place all of this on Mr. Obama. Near as I can tell his is following the status quo handed to him by the fed. I am not clear whether that is a result of ignorance or complicitness.

    Phil G

    March 16, 2010 at 12:03 pm


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