Scott Brown and the Smart Money Pendulum

It’s congratulations to pickup truck owner and new senator Scott Brown for winning Ted Kennedy’s old seat. It was truly amazing to see him come from 30 points behind to take the seat from apparent “shoe-in” Martha Coakley. Smart Money Pendulum

But what is far more important is what it means for the future of the socialisation of America. I’m sure it won’t stop it as it has been going on for years, but it has received a serious set-back.

More importantly the Health Care bill is all but dead which means the US economy will not have to find $1 Trillion dollar to provide health care for about 30 million people.

This is not only good for the US, it is good for the world. The world needs the US to create wealth through business and entrepreneurship, not spend 20% or more of its budget on a national health care system. Why follow the rest of the developed world into the health care black hole?

Anyway everyone knows the right answer to the US health care system but it is just not politically acceptable to the Democrats. Tort reform to stop the lawyers living off the health system and true free markets for health insurance companies. At present they have to bow down to state governments and provide stupid benefits to keep elected representatives in power or not be allowed to sell their insurance in that state.

When I found that out I though how ironic it was that the country of free enterprise completely controlled health insurance at the state level. However we in Australia do have private insurance that can operate in any state but which goes cap-in-hand to the federal government every year for a price increase. It has been approximately 7% each year for the last few years. Where’s the competition in that – so who are we to talk?

I’m off message again so let me get back to it.

Scott Brown campaigned on small government, responsible fiscal and monetary policies, no national health care (he said he would be the 41st to vote the bill down). In the Democrat heartland of Boston he should have been hanged, drawn and quartered, but he won.

This is a game-changer. It is now very important the Republicans pick up the ball and run with it and not compromise.

The next big event is Mr Bernanke should NOT be confirmed in the FED Chairman position. Everyone (in the financial circles) says he saved the world and it was a brave thing that he did. How brave is it to print money and give it to the banks with the backing of the President of the United States?

The brave thing would have been to tell Hank Paulson and George Bush to go jump and not attend any “Plunge Protection Meetings” with the President. Did you notice that the Bank CEO’s sat this crisis out. They waited on the side-lines and let the government bail them out. If Mr Bernanke has said, ” Nop! I will not print money to save you from your stupidity”, they would have had to get together to work out how to solve their own problems.

Once Mr Bernanke had the monkey on his back the bankers all went sailing waiting for their banks to be filled with money again so they could trade the stock market and bank the balance with the FED and be paid interest on the printed money the FED gave them.

That’s why he has to go, leave, disappear and all his Keynesian mates who still believe that their job is to prop up economic bubbles using public money dropped from a helicopter until private money can take over again to increase the bubble and the risk even further.

He is supposedly the expert on the Depression and knows what was done wrong then. If my reading is correct he was not taught economics at university, but was indoctrinated with Keynesian theory. All economic history prior to Keynes appears to have been dropped from many universities. I thought universities were seats of learning not places of selective teaching and indoctrination.

We need Mr Volcker to return with a team of like-minded “young turks” economists who have been taught  and understand Austrian Economics as well as Keynesian economics and who believe the first step is the FED must really be independent from the White House and the Legislature and the Treasury. We need people who want the debt to be responsibly reduced, the printed money withdrawn from circulation, the dollar restored as the reserve currency and backed by gold, some form of Glass-Steagall act to stop deposit banks speculating with your money, and bankers to be held to account with sound banking and financial polices introduced. Mr Volcker may not want the job but he could certainly be an overseer.

If Ron Paul could rally the troops in Congress and the Senate he might carry the day at last and get legislation passed to audit the FED if not end it.

They could then pass laws that stop the US government giving tax payers money to the world bank and the IMF to redistribute to despots and dictators. Bringing back control over tax payer money to the nation would stop all these “do-gooder” internationalists creating financial authorities answerable to no national government or voters/tax-payers. It would kill the world government and world bank stone dead and wealth redistribution to other nations would end along with it.

Such moves back to responsible fiscal and monetary policies in the US would spread around the world like wild-fire. The entrenched Keynesian order would be swept away and pay-as-you-go and buy-only-what-you-can-truly-afford would become the order of the day.

The pendulum may just have begun to swing back from socialism and it only took a year for the US people to realise it. Thank God for the Internet which has allowed people to read for themselves what stupidity is being done to the wealthy nations. If these “do-gooders” ever manage to redistribute all our wealth where do they think they will get the next lot of money from? They have no long term view, only now counts as they may all be dead when the long term arrives. Our children will have the problem. Don’t let that happen.

Now is the time for the people to take back their governments and demand fiscal and monetary responsibility. Taking such action will help Baby Boomers secure their Nest Egg. Anything less will destroy it even further.

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