Wednesday, January 30, 2008

Ron Paul trips up McCain

During the January 24th, 2008 Florida Republican Presidential debate Senator John McCain was asked what appeared to be a very odd economic question from Congressman Ron Paul. An apparently befuddled Senator McCain replied in a manner that did not appear to answer...

REP. PAUL: question is for Senator McCain. This is an economic question that I wanted to ask. It has to do with the President's Working Group on Financial Markets. I'd like to know what your opinion is of this and whether you would keep it in place, what their role would be, or you would get rid of this group. And if you kept the group, would you make sure we would see some sunlight and know what they're doing and how they're being involved in our markets?.
SEN. MCCAIN: Well, obviously we'd like to see more sunshine. But I as president, as every other president, rely primarily on my secretary of the Treasury, on my Council of Economic Advisers, on the head of that. I would rely on the circle that I have developed over many years of people like Jack Kemp, Phil Gramm, Warren Rudman, Pete Peterson, and the Concord Group. I have a process of leadership Ron, that is sort of an inclusive one that I have developed, a circle of acquaintances and people that are supporters and friends of mine who I have worked with for many, many years..
REP. PAUL: So you'd get rid of the group?.
SEN. MCCAIN: You remember back in 1982 when Phil Gramm... Phil Gramm and Warren Rudman and Gramm-Latta and all of those people got the first real tax cuts done, the real first real restraints in taxes. I was there. You were there. And I rely on those people to a much larger degree than any, quote, "formal" organization, although the secretary of Treasury is obviously one of the key and important posts that I would have.

The President's Working Group on Financial Markets was established on March 18th, 1988 in response to the nefarious market turmoil that started on October 19th, 1987...better known as Black Monday. It officially is to give private and legislative solutions for "enhancing the integrity, efficiency, orderliness, and competitiveness of US financial markets and maintaining investor confidence". It is comprised of the following:
  • The Secretary of the Treasury, or his designee (as Chairman of the Working Group);
  • The Chairman of the Board of Governors of the Federal Reserve System, or his designee;
  • The Chairman of the Securities and Exchange Commission, or his designee; and
  • The Chairman of the Commodity Futures Trading Commission, or her designee.
This sounds all sweet and dandy at first glance. However, one must remember that there are always winners and always losers on any given day in the market. It is widely believed that the President's Working Group on Financial Markets is used to manipulate markets in the event of market crashes. This also sounds like a very good idea at first. This however is market interference and manipulation at its highest level. In the event of a market crash, which may be a very real correction that a free market requires to revalue itself to appropriate levels, this group would very likely interfere. The average trader not in the know could very well become a big loser. It would be hard to imagine that there would NOT be people in the know...just look at the list of those involved in the working group above. Most likely the big bankers attached to the Board of Governors of the Federal Reserve and others would have all of the information they need. They would basically know what was going to happen in the market and to what level they would manipulate it with US taxpayer dollars.
Congressman Paul, the sly fox that he is, is once again bringing real institutional problems to the forefront. With his challenging of the Federal Reserve, the lack of respect for the Constitution, and now the President's Working Group on Financial Markets, he is setting the Presidential dialogue in the Republican race. Notice how the other candidates have been talking up the Constitution?
It is very likely that the other candidates caught that question and have had their advisors give them a run down on it. It is quite likely that Congressman Paul will bring this topic up again and a dialogue will start on the subject. The Federal Reserve and the President's Working Group on Financial Markets are nothing more than Centralized Planning...nothing more than a socialist approach to running a market. True conservative belief is diametrically opposed to Central Planning and has always favored a true free market which we regretfully do not have today. Congressman Paul knows that we do not have true free markets and that just like Central Planning did not work effectively in the USSR, it does not work efficiently anywhere.
So was Senator McCain ignorant of the President's Working Group on Financial Markets or does he just support Central Economic Planning like his socialist counterparts in the Democratic Party? Senator McCain made some erratic evasive maneuvers, but in the end it appears that Congressman Paul torpedoed him in his starboard bow. Will this prove to be one of many hits that sinks the McCain battleship? Only time will tell...
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