Defective Meglomania & FinReg

Getting up-to-date information isn't the only problem the government will have if it tries to micromanage our daily live. Even given the best of intentions, there is a psychological problem as well. I should note the present administration has less than "best of intentions"

Tammy Bruce puts it well in her recent article:

"In the world of private life and private industry, there are limits to the power of incompetents. If you screw up, your failure will be obvious to anyone that cares to look at it. If you can’t learn from your own mistakes, at least others will know not to rely upon you. If you run a business, it won’t be around for long.

"As our government becomes more invasive about controlling our private lives, I worry about creeping, aggressive incompetence. It’s painfully obvious to so many of us that the lawyers in Washington know nothing about economics or medicine or manufacturing or mining or business operations or any of the other stuff created and managed by others that they grasp at. When confronted with their ignorance, our political leaders assert their moral supremacy and assume that any challenge to their authority must be of a nefarious nature. These people know they’re right, and anyone that opposes or even questions them must therefore be evil."

Washington state is represented by two of the farthest left of the Senate, Murray and Cantwell. These two used to respond to my emails about leaving us alone with preachy garbage about how government was always right and we needed micromanagement. More recently they haven't even bother with their usual, pouting replies. Both Senators exceed the limits of their incompetence and they don't like it when others point it out.

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The 18th century American Revolution was a return to the original state of government; people were left alone to mind their own lives and brought together to address social problems which required an act of government. That is, there must be no private way to address a social problem before that problem becomes a government problem. The alternative is government inexorably becomes the problem.

The social ills the American government addressed for 50 years (and perhaps longer) all have been ills the private sector used to address. Poverty was handled by charities and churches; health care, also treated by charity and churches, notably the Red Cross and Roman Catholic operations. The rate of poverty is assessed by the government to be the same now as since those rates were first calculated. At best government run poverty eradication and health care programs are a nice fraud.

Americans all learned to read and do arithmetic long before education was inserted into the private sector. Many American are poor readers now and unable even to do sums. But young Americans are nearly narcissistic about their ability to reason and express themselves, even though they can hardly think or phrase a clear statement.

With Mr Obama, fans of big government have taken the final refuge. No other way is allowed -- By law only government may provide social service. Incompetence is masked by force of law. The institution trap is sprung. You see, it isn't the fact that Democrats think Mr Obama is their pet --- Its the fact that his politics are counter revolutionary.

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FinReg

Why do authoritarians love bizarre abbreviations? "FinReg" only makes it clear they don't know what they are doing.

With the passage of the new restrictions on banking in America, Mr Obama sinks his fangs more deeply into the economy. The bill will heavily restrict banks from equities operations. Aha! The falling stock market is easy to understand! The most significant investor, the American banking system, is being forced out of the market. Wise investors are getting out before the banks are forced to dump their shares, which will depress the snot out of the market.

The net result will be a general loss of perceived wealth, expanded government interference in capital formation, and a loss of liquidity for the masses. FinReg is is an attack on the middle class in America. It should be clear to everyone that less vigorous banks will not be able to lend as much to people. This will make major purchases, such as houses, cars and even refrigerators less obtainable.

The FinReg action is a follow on to the earlier move which put an effective limit on credit available through credit cards. Credit collections are hampered if the outstanding card balance exceeds $10,000. With the limitation on legal recovery, the bank has no reason to lend more than it can recover. This had the effect of reducing everyone's credit limit to $10,000 for unsecured debt.

Since FinReg allows government seizure of bank assets, your own bank account can be seized. Suddenly, you may an account at UncleSam. The banking industry will suffer for this one, and its gonna hurt 'We the People' as much as it expands Mr Obama's power.