posted on Feb, 23 2009 @ 01:58 AM
I know that this is the British Prime Minister here..But I have a problem with his statement for a few reasons..
First of all, The economic system we are attempting to stabilize right now is not about to get better. It will take a very long time for our economy
to recover from this downturn. But whose fault is it? Who is at fault for making this situation the cluster**** it really is? The answer to that
question is dependant on how deep you want to go. It depends on how far you want to follow that money and attribute financial responsibility to
people, companies, and organisations.
The mortgage meltdown is a great example. Are the financial institutions and mortgage companies at fault for giving people homes that they couldn't
afford? Is it the president's fault? Is it our fault for not insisting on more out of our government and financial institutions before this mess
turned into a cluster****?
It depends on how complex you want it to be.. And it depends on how far up or down you want to attribute blame.
The problem I see is this...
When politicians and leaders talk about the current financial situation they fail to see their own flaws..
1 - They act like they, themselves, are completely innocent. It's so much easier to attribute blame to others than facing the biting truth
and paying the consequencies for such a lapse of preemptive action in the first place. Politicians don't exactly like losing their power and they
don't like to admit when they are wrong either. I would expect that.. But, let's face it, that's what makes it so sickening in the first
2 - They all like making public PR statements they think make them look smart. All politicians like to come off as informed, intelligent,
smart, and positive.. There are very few who actually are. The rest of them just play the hand they are dealt and use public statements to make a
name for themselves by trying to look as smart and analytical as possible without introducing any meaningful dialogue. This is exactly the kind of
vague nonsense I'm talking about. Politicians like to do everything in their power to portray their image as positive and hopeful. Anything that is
negative falls back on themselves in a negative way. It's called "being able to B.S. the public". And I think everyone here already knows that
politicians are the best when it comes to B.S.'ing people. By introducing vague non-descriptive dialogue, such as this, with as few details as
possible, politicians provide themselves elbow room to work with if they are eventually asked more specific questions in the future.
3 - They act like the path out of this mess is so black and white. It isn't.. The path out of this is extremely complicated and not pretty.
Sure, this statement by the prime minister would normally be seen as positive and hopeful. But what people may not think of is that it is almost
impossible to revamp an economic system, as he is talking about, without keeping some level of inherent risk associated with financial transactions.
Otherwise it would not be a free market system at all. It would be "something else". Without this inherent risk, there is no investment capitol
that evens the playing field. The statment by the prime minister included this line..
"We want to ensure that the new banking system that emerges over the coming years becomes the servant of the economy and society, never its master,"
For starters, this sounds alot more like what we already have in the form of the central banking system. The only risk associated with any part of
our economy is the risk we as individuals take either in our own personal finance or in a corporate/professional setting for the companies we work
for. The central banking system is already the servant of our economy. This is the entire reason we have a looming consumer credit crisis that is
quickly becoming the elephant in the closet. And this brings us all back to why we are in this situation. THE ENTIRE REASON WE HAVE SUCH A HORRIFIC
CONSUMER CREDIT CRISIS IS BECAUSE THIS WHOLE TIME OUR BANKING SYSTEM HAS LIVED TO SERVE CONSUMER SPENDING AND THE ECONOMY.
It sounds really good on paper to make this distinction as the British Prime Minister did in his statement. It almost sounds inspiring if you read it
right. But it is not exactly that black and white. And this is why we all need to wake up and smell the cabbage. Politicians can make this kind of
distinction if they wish. After all, making such a positive statement should be good PR right? Not if people actually knew how our economy already
operates and how these same politicians are part of the underlying cause. politicians suddenly "KNOW" what is good and bad for our economy and
project this vaguely positive undertone of hope and change without ever really addressing the problems we are facing as individuals already knee-deep
in this mess. Get real. It's easy to avert any kind of real accountability since you can always attribute blame to the economy as a whole. And
when you blame something as amorphous as the economy, individuals can escape any real accountability..
It's a little more complicated than forming a new banking system that is the servant of the economy and the people(which is one of the reasons we got
in this mess in the first place). And making vague opinion-based statements like this doesn't solve anything. It only goes to make the politician
look good or bad just depending on how you view the economic crisis. And alot of people are just absolutely oblivious to what is unfolding right now
anyway. It's probably very easy for most people to see this statement as hopeful and positive. But its a little more complicated than the British
Prime Minister makes it out to be.