Monday, April 13, 2009

How Absolute Power Is Obtained Today

I would like to comment briefly on what I see as the new form of power grab that the Obama administration has begun to employ. It used to be that the government caused some problem by distorting markets, blamed the non-existent free market for those problems, and grabbed even more power as a result. This method has worked very well for them over the years.

Now, however, Obama is employing a new, quasi-European form of power grab. I find it interesting, because they are abusing people's respect for an old and valid principle in order to destroy that same principle. (Rand said something about undermining the meaning of concepts, didn't she?)

What I am referring to is the involuntary infusion of capital into private firms, the imposition of rules and oversight on the basis that the government is a legitimate stakeholder, and finally the refusal to accept the money back. People respect the government's increased role because they see the infusion of capital as a legitimate claim. The refusal of repayment, as well as the involuntary nature of the loans in the first place, destroy this concept, but naturally they are all done very secretly.

It should be clear to anyone who knows the facts that the purpose of this facade is to grant Obama and his cohort absolute control over the actions of individual banks and auto firms, as well as whatever other poor companies have the misfortune of catching the King's eye.

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