Tuesday, February 8, 2011

This Statement From Obama Is RIGHT Out Of "Atlas Shrugged"

Obama Urges U.S. Business Leaders to Increase Spending for Good of Country

Recall that in "Atlas Shrugged," Ayn Rand lays out a vision in which the Government takes control the avenues commerce, first by trying to impose its will on private enterprise and then, ultimately, seizing complete control.

I have been saying all along that what is unfolding right now economically, politically, socially and morally in this country fits Rand's vision (and Orwell's in "Animal Farm") like a fine leather Hermes dress glove: 
President Barack Obama joined patriotism with economics as he urged U.S. business leaders to “get in the game” in support of their country by spending more cash.

The fact of the matter is that spending cash for the sake of spending cash will not benefit anyone. The Government will borrow at least 4.1 billion per day this year to spend money for the sake of keeping its massive bureaucracy and egregiously wasteful programs in place - to the benefit of no one, other than the Government employees who are kept employed and overpaid by this spending and the businesses who control how the Government spends its money.  THAT is right out of "Atlas Shrugged."

Here's the news story from Bloomberg:  LINK.  Read and weep for our country...And then go buy more gold and silver!


  1. “ “Now is the time to invest in America,” Obama said in a speech yesterday to the U.S. Chamber of Commerce, arguing that his policies have laid a foundation for business success.”
    --------------------------------------------Over the past 20 years millions of Manufacturing jobs have gone overseas. Aside from the lower cost of labor, the countries where these jobs have gone to typically also have lower (or none) environmental and safety compliance regulations.

    If this President is serious about ‘investing in America,’ then he should implement the policy that products imported to America must be manufactured in factories which follow the same environmental and safety standards that American factories are required to comply with. By removing much of the cost advantage from overseas manufacturing, this will help to bring jobs back to America.

    Sounds insane, doesn’t it? Well, what do you call eliminating America’s manufacturing base and trying to replace these jobs with an employment base dependent upon Finance, Real Estate, Speculation, and Government spending?


  2. You're quite right, alas. Both about Obama's echoing the villains of Atlas Shrugged and that spending does not create wealth. In fact, this just came to mind, from Atlas:

    "they run hog-wild proclaiming that spending, the effect, creates riches, the cause."

    Rand has an extensive criticism of Keynesianism and defense of productionist economics in "Egalitarianism and Inflation" (The Ayn Rand Letter, 1974--available at Amazon.)

  3. If this doesn't guarantee a parabolic blow off followed by a credit squeeze as JPM pull the lines and make the margin calls to take possession of the collateral, I don't know what does.

    J.P. Morgan Chase said on Monday it would accept physical gold as collateral with its counterparties as a growing number of clients look to use bullion as a hedge against inflation.

    The bank, which is one of the custodians of physical metals for some of the world's largest precious-metal backed exchange-traded funds, said it would take gold as collateral to satisfy securities lending and repurchase obligations with counterparties.

  4. Almost all of the S&P earnings have been garnered by monster margin expansion due to severe cost cuts and employment cuts. If companies "get in the game" with limited sales increases the multiples stocks trade at must go down.

  5. If companies "get in the game" with limited sales increases the multiples stocks trade at must go down.


    Counting on it, loading up on DXD.

  6. By coincidence, here in the UK, our government has announced today that they have forced the banks to agree to accept a minimum lending quota, and a temporary bank tax has been made permanent.

    Where will Ayn Rands prediction come true first. Here, or in the USA?

  7. Wow. that really is right out of Altas Shrugged.

  8. http://www.belfasttelegraph.co.uk/news/local-national/republic-of-ireland/general-election/bank-chiefs-bombshell-republic-of-ireland-needs-another-euro15bn-15078167.html

    The Republic of Ireland will have to go to the IMF/EU for another €15bn - on top of the €35bn already earmarked - to save the banking system, according to the government-appointed chairman of Anglo Irish Bank.

    In a bombshell revelation, Alan Dukes said we will need 40pc more, or €50bn, to properly clean up the banks.