Lawrence Kudlow Wears Rose Colored Glasses

Lawrence Kudlow writes in Would Adam Smith Approve? that Capitalism needs a moral core and the conviction of Ken Lay and Jeffrey Skilling, does not signify a systemic infection, but an aberation, thanks to a hard working core of

government prosecutors are doing a fine job of re-imposing the rule of law and re-moralizing our economic system.

He argues that since WWII, the US has evolved 100 Million investors that George Bush calls the “ownership class”.

George W. Bush, a lineal descendant of Reagan, calls this the “ownership class.” And though I can’t prove it, I’m willing to bet that this group’s demand for lower tax rates and entrepreneurial activity goes hand in hand with the cultural characteristics of hard work, thrift, personal responsibility, and law-abiding behavior. (emphasis added)

Kudlow goes on to say that there is a new group of

CEOs engaging in the practice of backdating stock-option grants and other related forms of anti-shareholder compensation chicanery. The biggest demoralizing miscreant is William McGuire, CEO of United Health Group. In Washington, book-cooking at Fannie Mae has still to be properly punished.

Not to worry, the G-Men are here to save the day. Kudlow thinks that Adam Smith who said

capitalism requires a moral and ethical center if it is to function effectively and to the benefit of all

would be proud.

I’m sorry Larry, but I don’t see any core of morality and I’m certainly not inspired by the G-Men. How long did it take for them to dig through all of Fannie Mae’s accounting to find the $11 Billion of errors? The 100 million stock buyers are far removed from running the companies they own. Their trading has been supplanted by institutions and hedge funds. As far as thrift, they not only are the most indebted generation in history, but they have had no positive influence on a ever growing and ever spending government. Adam Smith wouldn’t understand how we have strayed so far from Capitalism.

But Larry, it’s when you look at government itself, that you see the rot and the lack of a moral core. Our government gives us fraudulent accounting and deceptive statistics. No one believes the numbers from the government. In addition the government has capped the gold price, at least as far back as Sec. Treasury Rubin, and has taken away our “canary in the coal mine”. Now it has stopped giving us M3.

Did our government give Japan our domestic auto industry in exchange for 0% interest rates?

Did our government allow our domestic industries to become obsolete, like TV production, flat screens etc?

Are they allowing illegals to invade our country to depress wages?

Has our government exchanged liberty for reliance on foreign oil?

Has our government exchanged sovereignty for dependence on foreign holders of the USD?

Since 1913 when Congress gave the power over money to a non-government entity, the Federal Reserve, the USD has been reduced from a gold-backed currency to a fiat currency that depends for its value on trust. A trust that has led to an inflation of our currency by at least 95%!

Ayn Rand said this about inflation:

Inflation is not caused by the actions of private citizens, but *by the government*: by an artificial expansion of the money supply required to support deficit spending. No private embezzlers or bank robbers in history have ever plundered people’s savings on a scale comparable to the plunder perpetrated by the fiscal policies of statist governments.”

We have a statist government that is no better than a common crook; an example that corporate executives follow. When a government can print any number of billions it wants then it has divorced the concept of value from production and that is immoral. That immorality has invaded the system.

Again Ayn Rand wrote:

Money is a tool of exchange, which can’t exist unless there are goods produced and men able to produce them. Money is the material shape of the principle that men who wish to deal wlth one another must deal by trade and give value for value. Money is not the tool of the moochers, who claim your product by tears or of the looters, who take it from you by force. Money is made possible only by the men who produce.

At a recent round table lunch on hedge funds Richard Oldfield, chief executive of the fund managers Oldfield Partners, said

“We will look back and realise this was a barmy time,” adding that some hedge funds were walking a difficult regulatory line: some were close to acting as concert parties in bid situations and some were coming very close to front-running — the practice of trading ahead of one’s clients.

Larry, take off the rose-colored glasses!

Lawrence Kudlow Capitalism Gold Ayn Rand Inflation Mover Mike

4 Responses to “Lawrence Kudlow Wears Rose Colored Glasses”

  1. Kudlow is a bubblevision joke.

    Ayn Rand anyone?


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