Saturday, September 27, 2008
Socialism Is Coming to America
In his classic 1932 book, Toward Soviet America, Communist Party boss William Z. Foster wrote about how “The United Soviet States of America” will come about. As a result of various capitalist crises, the national government would assume more and more control over the economy. “In finance,” he wrote, “it will mean the nationalization of the banking system and its concentration around a central State bank…” Foster is dead, but the Wall Street financial “bail-out” plan offered by Treasury Secretary Henry Paulson, in coordination with the Federal Reserve, will bring about a socialist America.
It would be an exaggeration to say that we are getting close to anything resembling the Soviet system. But it is also a big mistake to call this a “bailout.” It is socialism. Why are so many in the media afraid of using this term?
Over at Political Affairs Magazine, a publication of the Communist Party USA, writer John Case is gloating. His article about the crisis is headlined, “A Dose of Socialism to Forestall Disaster.” He thinks that Paulson and Federal Reserve Board chairman Ben Bernanke have been reading the works of closet Marxists.
But none of this is secret. At a time when many pieces of legislation before Congress take up thousands of pages and do their best to hide pork barrel spending, Paulson’s three-page plan for Wall Street socialism is straightforward and simple. If passed by Congress, Paulson would assume the dictatorial power and authority to designate financial institutions “as financial agents of the Government” and order them to perform “all such reasonable duties related to this Act as financial agents of the Government as may be required of them…”
The bill gives Paulson automatic access to $700 billion and raises the limit on the public debt to $11.3 trillion. He gets the power to issue regulations, hire people, establish various financial “vehicles,” and take other “necessary actions.”
Conservative Senator Jim Bunning is brutally honest, saying that “…the free market for all intents and purposes is dead in America.” He said Paulson’s plan “will take away the free market and institute socialism in America. The American taxpayer has been misled throughout this economic crisis. The government on all fronts has failed the American people miserably.”
“After reviewing the Administration’s proposed bailout plan, I believe it is completely unacceptable,” said conservative Senator Jim DeMint. “This plan does nothing to address the misguided government policies that created this mess and it could make matters much worse by socializing an entire sector of the U.S. economy. This plan fails to oversee or regulate the government failures that led to this crisis. Instead it greatly increases the role for Secretary Paulson whose market predictions have been consistently wrong in the last year…”
Every newspaper in America should print a copy of his plan. Every news anchor and commentator should read it out loud to the American people. The American people have a right to know that President Bush and Congress are officially creating a socialist America.
Over at the “conservative” Fox News Channel, however, some commentators think this is just great. “I love it,” Fred Barnes of the “conservative” Weekly Standard said of the temporary market rise in response to the anticipated Paulson plan. “Look,” Barnes said, “when I keep hearing this is going to cost a trillion dollars, and so on, it may not cost anything.” The U.S. may “come out ahead” in the long run, he confidently predicted. He praised Paulson and Bernanke for acting “boldly.”
Another “conservative,” Charles Krauthammer, was almost giddy. “It took FDR a decade to put in place all the institutions of the New Deal,” he commented. “Paulson and Bernanke did it in ten hours. I mean, in one night, they created a whole new world.”
However, on the September 21 edition of Fox News Sunday, host Chris Wallace pointed out that Paulson has already been caught making reassuring but false statements about the crisis. In March, also on Fox News Sunday, Wallace had asked him, “Are more Wall Street firms in danger, at risk, of going under? Paulson replied, “I’ve got great confidence in our financial market, our financial institutions. Our markets are resilient. They’re flexible. Our institutions, our banks and investment banks, are strong.”
And this is the guy being entrusted with virtual dictatorial power over Wall Street? Rather than praise him for his intellect and ability, why aren’t Barnes and Krauthammer demanding that Bush fire him?
The liberal media are, of course, also trying to keep the American people in the dark about what is happening. The Washington Post deceptively calls it a “rescue plan.”
The “debate” taking place in Washington and the media is being carefully controlled. The Republican Bush Administration supports the plan and Congressional Democrats want to take it further. The Democrats want even more federal involvement in the firms that are being acquired. In other words, it is a question of how much socialism they want. The Democrats want more socialism; the Bush Republicans want slightly less. But it is still socialism.
There is a bipartisan note: both sides agree that there should be a new government board assigned to monitor America’s transition into a socialist economy.
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