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There Is No Quick Fix

By David Truskoff

14 October, 2008

Capital is dead labor, which, vampire-like, lives only by sucking living labor, and lives the more, the more labor it sucks. Karl Marx

I am amazed at how the pundits and so-called experts continue to offer opinions on how to fix the economic worldwide meltdown. No one seems to want to go back and see what started it or explain how it started. Trickle down economics does not work and never did, but no one is willing to admit that and so we keep hearing band-aid ideas of how to fix the problem.

When my wife went to work for a brokerage firm (she was an information specialist) she was given a book to read titled simply "The Stock Market." The book is dated 1963 and on page 473 we read, "Part of the activities of the Security and Exchange Commission are concerned with the Securities Exchange Act of 1934. Other acts of regulation include the Public Utility Holding Company Act of 1935, (rescinded 2007) the Investment Company Act of1940, the Banking Act and the Glass-Steagall Act. (rescinded 1999) All of these acts, put in place to control greed and prevent the robber barons from destroying our economy again, have been either rescinded or tampered with or outright gutted by congress.

Ronald Reagan, the "de-regulation president", dealt a near death blow to unionism by firing the air controllers and then having their union smashed. He then imposed a moratorium on all new federal regulation enforcement. Reagan is often called the president that saved the world from Communism and given credit for restoring the economy to the real free market. The term "Free Market" has become a joke today in the bailout era. The fact is that by the end of his term, 138 Reagan administration officials had been convicted, indicted, or subject of official investigations for official misconduct and/or criminal violations. In terms of number of officials involved, the Reagan administration is American history's most corrupt administration.

Republican Reagan decimated the Roosevelt structure put in place to prevent another 1929, but let's not forget that Democrat Carter also caved in to right wing pressure by deregulating airlines, trucking, railroads, oil and interest rates, The results were disastrous.

Reagan based his economic program on a theory known as supply-side economics, (Trickle down Reaganomics), a re-wording of the theory that if you benefit the rich money will filter down to the middle class, with a fat and satisfied middle class. Corporate America would have no oversight at all. That kind of fix only lasts until the next needle.

Reagan's Economic Recovery Tax Act called for huge tax cuts for upper income people and large corporations. It was the beginning of the Capitalist system slide into the world wide economic bust of 2008. Congress also passed the Garn-Saint Germain Depository Institutions Act, which tried to help struggling savings and loan institutions by allowing them to make much riskier investments. The act preempted state restrictions on enforcement by lenders of due-on-sale clauses in most mortgages for a three year period ending October 15, 1985, and authorized state chartered lenders to offer the same kinds of alternative mortgages permitted nationally chartered financial institutions.

Stock market crashes do not happen overnight. They are created by blind greed over the years. When I heard both of the abominable 2008 presidential candidates say they would welcome billionaire Warren Buffet as the new Secretary of the Treasury, I thought that I had fallen through the rabbit hole into never-never land.

Buffet began trading stocks at age eleven. His father was a broker and congressmen. Warren is not a carpenter that builds the houses we live in. He is not a farmer that grows the food we eat. He is not a doctor that cures our ills. He is the "vampire-like, (who) lives only by sucking living labor, and lives the more, the more labor he sucks." Can anyone in their right mind believe that he who is perhaps the captain of the sinking ship, the one who helped run us aground, be the one to save us?

Young students today must look back on all this and put aside the fear of the words Liberal, Socialist or Leftist and try to restore FDR's America or face the reality of an unstoppable worldwide move to socialism.

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