Tuesday, November 11, 2008

Obama monetary policy = no change

President-elect Obama ran on a platform of change. And I believe he will effect some change on two significant administration policies - fiscal policy and war policy. But when it comes to monetary policy (and The Washington Establishment's Kool-Aid theory that money does grow on trees), don't expect any change.

Nope. The guys and gals who brought us talk of a second depression will be returning for another act!*

From a commentary by Jonathan Weil on Bloomberg:

It's hard to believe Barack Obama would even think of calling this change.

Take a good look at some of the 17 people our nation's president-elect chose last week for his
Transition Economic Advisory Board. And then try saying with a straight face that these are the leaders who should be advising him on how to navigate through the worst financial crisis in modern history.

Read the article and you'll see some of the stalwarts of recent accounting & finance history: Enron, Ford, Fannie Mae. Boy, those are definitely the same people I want guiding American monetary policy out of the abyss!

I really do wish President-elect Obama the best of luck. But I don't see how the same players will fix things. This is the same philosophy used by Chris Dodd when he blamed Bush for the mortgage meltdown, then asked Bush for the solution.

I want change, not more of the same.

Tim White

* Of course, my comments are based on my theory that our irresponsible monetary policy began long before Bush 43 came to office. Our irresponsible monetary policy was created in several installments (1971, 1933 and 1913).

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