Fellow citizens, it is my privilege to be here with you at this great Tea Party gathering and talk with you about a government gone off track.
I would like to thank Ms. Brenda Leach for this opportunity.
You good people know that something is seriously wrong. “Bailout” has become the most used word in our language. Intuition tells us taxes will be going up and prices at the store will be going higher. Six months ago our government spoke about the budget in terms of billions and now we speak trillions. What is happening here is the crime of the bailout.
In the past seven months $12.8 trillion dollars has been printed, loaned and squeezed out of our financial system to save certain industries because they are, quote, “too big to fail.” This is equal to the gross domestic product of the nation. In only seven months! A lot more is coming.
The too big to fail companies are the biggest banks, investment houses, insurance companies, car makers and mortgage buyers in the country. They are in trouble because of their horrendously poor judgment in how to invest money. Now our government has become partners with them using your labor to pay for their mistakes.
It is against the American way of life to say something or someone is too big to fail. If you or I were this incompetent we would fail, no questions asked. Instead, the government is throwing money at the problem like it is going out of style, and letting you and me pay the consequences.
Incredibly, some banks this quarter are area actually showing profits after having hundreds of billions of our debt dollars given to them.
They say without you taking on this debt that our financial system will fall apart. They say without you taking on this debt, a recovery will not be possible. They say free market capitalism has failed in America. Americans are in debt up to our eyeballs, and they say to fix our problems, we need to go into further into debt in amounts that humans cannot fathom.
All I can say is, they are wrong.
I ask you, how can a government that never saw this calamity coming possibly know how to fix it?
Our country has borrowed and spent too much, and saved and produced too little. Inefficient businesses need to go bankrupt, and for new companies that use money properly to spring up in their place.
Government regulation and taxation needs to be vastly reduced so someone with ambition and ideas can enter the market, supply what people need, and make a profit.
For decades our government has been tinkering with the economy. Banks have government guarantees that no other industry in history have ever had. Housebuilders get tax incentives. Homeowners get tax incentives. Insurance is regulated with the dedication of a soviet commissar. Other businesses get incentives and subsidies and special privileges. The list is endless.
America has become clogged with the heart attack producing plaque known as government intervention. If there were no government intervention, the economy would recover quickly from a short, sharp recession from which we would come out stronger. Instead, our government creates zombie banks, and now runs the world’s biggest insurance and mortgage companies. The government has no business owning business. It is nationalization, something we laughed at our socialist foes from a generation ago.
The government is running up debts that will impoverish you, your children and your grandchildren. Every man, woman and child in the USA has $40,000 in additional debt they did not have seven months ago. This is not what made America great. This is what destroyed the socialist nations that were our enemies.
Our leaders have been seduced by the idea the government needs to run the economy. Our central bank, the Federal Reserve, a private bank that works with our Treasury, creates inflation. That is their purpose. Inflation makes paying off loans easier for bankers and borrowers, but quietly steals from those who save, produce, earn a wage, or are on fixed incomes. In other words, people like you.
And where does Congress fit into this picture? They created about 2 trillion of the debt we have been speaking about, but 11 trillion was created by our Treasury Secretaries and the Chairman of the Federal Reserve. These men are unelected and virtually unaccountable for their actions by the very laws that Congress wrote. It is theft from you on a monumental scale, but invisible to most people.
Just a month ago when Congress demanded to know where 2 trillion of this Federal Reserve created money went, Fed Chairman Bernanke told them he wouldn’t tell them, and Congress does not have the collective power to make him!
By means of a bailout, Americans are now 80% owners of the great insurance company AIG. Other private insurance firms must now quake in their shoes. There is no justice when a government directly competes with a private firm. A private firm cannot change the laws and create unlimited money at will, as the government can. Any businessman knows it is impossible to compete under such circumstances.
This is not a failure of capitalism. Government intervention brought on this crisis. More intervention because capitalism has supposedly failed will make it worse.
30 years ago it was the Congress that passed legislation under the Carter administration to force lenders to make risky loans to low income families. This started the bailout process. (Fairness in lending act)
It was the government that guaranteed the massive loans of Fannie Mae and Freddie Mac causing them to push other private non-government backed mortgage buyers out of business. No one checked out the quality of Fannie Mae and Freddie Mac bonds because they were guaranteed by the government.
Against all free market principles our Central Bank, The Federal Reserve, kept interest too low for too long. This lead to the NASDAQ bubble and now the real-estate crash.
It was Congress that made laws giving special tax exemptions to people owning houses that encouraged a frenzy of buying and selling.
And lastly, it was the government watchdog, the Security and Exchange Commission, that turned a blind eye to bond rating agencies getting in bed with banks to rate worthless bonds as AAA investments and then sell them to you and me.
I am proud to say I am a Libertarian. Libertarians have always been against the malignant influence of government in the economy.
If government were not propping up, regulating, and guaranteeing so many companies, Americans would use their due diligence to see which companies had substance and which were shadow. Now we see where not using our due diligence has lead; illusions of wealth, and you and I getting stuck with the biggest tab in the history of mankind.
As I end my address, I ask you all to think about the following:
Government does not produce a single job. It takes resources from those who have it, takes a cut for itself, and then directs what’s left into places the free market would not.
You cannot spend your way out of debt.
You cannot print money as a way to prosperity.
There has been too much borrowing and spending in America and not enough saving and producing.
And the government bailouts privatize profits, and socialize losses.
The greatest amount of happiness and prosperity come from people being able to compete in a free market where their individual rights are preserved by a government that is limited in its power. This leads to lasting benefits for both individuals and society. I think many of you know this is true.
What our country is doing is the opposite of this.
Keep shouting. Left Jeff Miller know. Let Senators Martinez and Nelson know. Stop the bailouts. Stop government intervention. If you want, tell them that Libertarians know what is going on. Let the economy recover, and everyone will get back to life, liberty, and the pursuit of happiness more quickly.