Thursday, May 13, 2010

Take VAT

Of Crony Capitalism And European Austerity - IBD -
Our founders were well aware that the limitation of the power of government was a difficult task and did all they could by separation of powers, states rights and the reservation of any rights not enumerated to the people. They did an excellent job, but they really didn't account for the arrogance and power lust of politicians like FDR and BO.

A Treasury press release did say "GM Repays Treasury Loan in Full." The loan is, however, a small part of taxpayer exposure. Under crony capitalism, when government and corporate America merge, both dissemble.

I've heard a number of liberals touting how "well GM is doing" ... since they "repaid their loan". Good PR, useless measure of business results.

Then we move to Greece.

So the U.S. government, which would borrow 42 cents of every dollar it spends under the president's 2011 budget, is borrowing to rescue Greece and others from the consequences of their borrowing.

That nation, whose GDP is below that of the Dallas-Fort Worth metropolitan area, is "too big to fail," meaning too inconveniently connected to too many big banks. Bailing out Greece really rescues European banks that improvidently bought Greek bonds.

 "Too Big to Fail" has more to do with political leanings than it does with any other factor.

At the Parthenon last week, the Greek Communist Party, which got 8% of the vote in the last national election, draped banners emblazoned with the hammer and sickle: "Peoples of Europe Rise Up." Of course. "Arise ye prisoners of starvation," exhorts "The Internationale," the left's ancient anthem. But who is to arise against whom?

Germany? China maybe -- have we reached the point where an old European country and a supposedly communist Asian country are both to the right of the USA?

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