Before you get your panties in a wad for my declaration of Roseanne Barr over Ted Nugent, hear me out.
This battle on CNBC on Anderson Cooper’s show gets to the root problem of understanding the financial issue.
And until we understand this we cannot focus on how to fix it.
And if we don’t fix it we will have bubbles and bust and people greedily chasing after wealth in dangerous ways that could adversely affect their futures.
So the issue has to do with assigning blame for the Ponzi housing crisis and bailouts and the like.
Lets Determine the Winner of Nugent Versus Barr by Subject.
I have explored these issues before but need to do so in the context of these celebrities and how they view the world based upon the sources that they use. And this is the crucial thing, not all sources are telling the complete truth. Some are telling a part of the truth and are adding some lies if it gets their sponsors an advantage in the political arena. We cannot just look at mainstream media and expect lessons, although I heard more truth about this crisis on Cooper than I have for years on any mainstream media organisation.
Issue 1. The issue is what is the Tea Party and who do they represent? Ted Nugent says that the Tea Party is made up of hard working blue collar workers, but Roseanne Barr says that the Tea Party is a rich club. Nugent says that the Tea Party are hard workers who want to keep what they make and do not like the welfare state. Barr says that the Tea Party is controlled by the Koch Brothers and is for the rich and she supports a safety net for the unemployed and less fortunate.
Issue 2. The second issue is regarding who is at fault for the economic meltdown and bailouts. Nugent says that the government is responsible. And Barr says that the wealthy bankers and financial people are responsible.
Issue 3. The third issue is regarding Sarah Palin. Nugent says that Palin is a maverick. Barr says that she tells the rich what they want to hear and then fools people into thinking she is a maverick.
Ok, So Let’s Discuss Issue 1, the Merits of Who and What the Tea Party Represents
Issue1. Ted Nugent is not quite telling the whole story. Yes, there are some small businessmen involved in the Tea Party movement. But we are speaking now of the rank and file. At the very top of the movement there are other powers. Indeed, the Koch Brothers are involved, and they are elite businessmen who are for fewer taxes on the rich because they have an abnormal fear of communism. And Glenn Beck speaks the John Birch Society line with Tea Party people, because the father of the Koch Brothers was a cofounder of the John Birch Society. In this role, Beck lies, because, while he is correct about financial world order, he is wrong about focusing on government as the main problem. I am not saying that government cannot be a problem, it already is. But it is not the main problem.
Indeed, it is a subtle fallacy that Beck is spouting. But it is an important fallacy. As Roseanne Barr has said, if you limit government who will watch the rich people. I have made the argument that if you leave government weakened, you will have no referees in the game. Already, Paul Volcker is leaving the Obama administration because you can’t be pro Wall Street without wanting new economic bubbles. You can’t be a Wall Street lackey without continuing the commitment to taxpayer bailout, and in the case of the Volcker Rule, gutting the power to stop bank leverage. Massive bank leverage is what allowed betting for and against the housing bonds with the derivative bets. We could have another economic meltdown if you don’t stop massive bank leverage and betting. So, Barr is right, because the John Birchers and Beck said that there was a communist under every rock. But Ron Paul, who both Barr and Nugent apparently like, has said that corporatism, not communism, is the issue that is most dangerous to mainstreet today. And Paul said in August, 2010, that Beck and Palin were taking the Tea Party for a ride. Are you listening Nugent? No you aren’t, and that is why you lose issue 1.
Let’s discuss Issue 2, the Merits of Who Is Most Responsible for the Housing Crisis and Economic Meltdown
Issue 2. I have discussed before how the bankers are responsible for the economic meltdown. Essentially, I have argued that the central banks, including the private Federal Reserve Bank, owe allegiance to a new financial order, and not to sovereign nations or their citizens. This caused the Federal Reserve Bank to allow low interest rates for long periods of time, and caused that bank to look the other way when the shadow banks offered, bought, packaged and sold really bad mortgages as AAA bonds. No underwriting was needed and the price of houses pushed up because of the red hot market created by the easy money. The borrowers were mostly sitting ducks, not even knowing that there could be a massive bubble in the price of homes, that had behaved well for decades.
So when Barr says that the rich took advantage of the rest of us she is right. Specifically, the central banks through a meeting at Basel 2 in 1998 permitted off balance sheet banking, ie., the power of the biggest banks to hide bad loans from investors. Nugent and the Tea Party leadership don’t take that action or the subsequent action to repeal Glass-Steagall seriously. Maybe it is above their level of reasoning, or more likely it is above what Faux News wants to tell them. The repeal of Glass-Steagall allowed the bad loans to be sent from commercial banks to Lehman, and Goldman and Bear Stearns, and then apparently the banks traded the contracts back and forth and made bets on them in the form of derivative swaps, all leveraged. But the Tea Party leaders want these banksters to have even more power. That is really an attack on mainstreet in every way. Nugent wants to deflect blame off these bankers who should be ashamed of their easy money loans and subsequent crash that the insiders knew had to happen. Nugent is wrong on issue 2.