I was finally contacted by the Modern Whig Party Of New York in an email that came complete with a link to the party’s website. In taking a look at the state party’s “Issues” page, I found the following:
Fiscal Responsibility and Financial Reform: neither government nor corporations or households can be exempt from the basic rules of accounting. Revenues should match or exceed expenditures, excessive debt should be avoided, and some funds should be kept in reserve for future “rainy days”. Deficit spending is acceptable only in times of economic crisis. Practices such as unfunded mandates, pork-barrel spending, or cutting taxes while fighting wars are unacceptable. The recent economic crisis was the result of excessive leverage and risk-taking by gigantic and inter-connected financial institutions for the purpose of engaging in casino-type activities such as unregulated betting on the value of derivatives backed by dubious mortgages. Post-crisis financial reforms must include: limits on leverage, the regulation of derivatives, the re-instatement of the Glass-Steagall Act and most important of all, the break-up of financial institutions that are “too big to fail” (TBTF), so that mistakes made by a handful of entities cannot bring down our entire economy unless bailed out by taxpayer money. We view the recent financial reform legislation as a step in the right direction but ultimately a missed opportunity to address the TBTF issue and avoid future bubbles.
I suppose I have my work cut out for me because the proposed medicine is worse than the disease, a misdiagnosis for which the party appears to have bought the central bankers’ propaganda that everyone else caused the crisis – not the central bank – as in government = good, the people = bad.
And I’m feeling a bit discouraged because of the rich history of the Whig Party in the establishment of the banking institutions in the United States in the 19th century and the rejection of commodity currency standards as being too restrictive for economic development and growth. Perhaps I was taking that history for granted when I signed up for membership, as it seems entirely fitting for The Modern Whig Party, a party that prides itself on reason and intellect, to be a natural home for Market Monetarists. Instead, I am inundated with Hank Paulson’s view of macroeconomics, a view I reject entirely.
I’m aware that some Whigs have found my blog site and I ask any who visit to please check out my blogroll. It won’t take much of your time to follow the links for The Money Illusion, Historinas, and The Market Monetarist and read through them. It will be quite an enlightening experience as you learn the greatest secret ever kept hidden by the financial media as to the origins and cause of the Great Recession. You will be shocked and horrified – I promise.
PS: Unrelated (or maybe not): The Bernanke, Fisher, Plosser, Hoenig, Warsh legacy: