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Signing the creation of the National Economic Recovery Board

I’m not an expert in Economics., but sometimes I try to figure it all out. I do read and have a lot of respect for Lyndon LaRouche’s advice. According to his group, it is the bad advice of Larry Summers, “life long disciple of free trade and globalization”, that is largely responsible for the present economic crisis.  Mr. Summers was part of the Clinton Administration (Undersecretary of the Treasury 1995) and recommended the repeal of the Glass-Steagall Act, which is largely credited with deregulating the finance industry. Clinton opposed the deregulation, and derivatives (which he considered usury), but his hands were tied by the Lewinsky scandal.

Of late though, Summers has become more of a follower of Keynes and, in fact, according to Newsweek: “Keynes famously said of someone who accused him of inconsistency: ‘When circumstances change, I change my opinion’.” When John Maynard Keynes died in 2006, Summers wrote an essay called “the Great Liberator.”

Actually, on a personal note, Mr Summers was one of the founders of a company that emerged in competition to paypal, called Revolution Money Exchange. I tried it, but they couldn’t even transfer money to my bank account. The problem with Obama’s team is that most of them have never run a business, or a lemonade stand.

According to the LaRouche group, Paul Volcker has a diametrically opposite position, but somehow Mr. Obama did not want to accept his advice, even though Barry has no economic education. According to The LA times Volcker “wants tough new regulations on securities markets, including oversight of hedge funds, in order to avoid the need for a bailout effort by the Fed ever again. It seems likely that he will advise Obama that the growth of U.S. consumption — everything from government spending to household outlays — should not be financed by selling ever larger amounts of debt to foreign interests.”

So, supposedly) resenting Volcker’s advice, he demoted him.  According to Martha Zoller “Obama loathes the free market and his philosophy goes against basic economic principles.” Volker stated in London, 11/21/2008: “What this crisis reveals is a broken financial system like no other in my lifetime…the trouble is, even with all the government intervention, the market is not moving again.”

Limarri Navarette, editor of the LaRouche group, therefore, believes that it is largely Barry’s ego that prevents him from accepting the fact that he is dead wrong. I was pretty amazed, considering the fact that Mr. LaRouche supported Mr. Obama and his presidency.