Saturday, September 27, 2008

McCarten talks nonsense again

Yes, you didn't have to wait long for failed socialist Matt McCarten to treat the failings of an excessively generous central bank and poor judgement by banks lending mortgages to bet on the property market at the bottom end(and those borrowing with little to no deposits hoping the same) as the free market proven wrong.

Rubbing his hands with glee like any typical authoritarian who can't wait to be proven that if you he and his ilk could be controlling what people do with their money, it would all be easier. His NZ Herald column is a triumph of banal slogans and offering nothing, but his sneering envy that he never got a chance to do things differently.

How empty is this phrase "Quite frankly, the free-market theoreticians have been shown to be a bunch of charlatans dressing up old-fashioned greed as a social good." How Matt? It is an individual good, and people pursuing their individual good, as long as force and fraud are absent (and they are not in part of this equation) is perfectly moral. This is different from your "sacrifice yourself for the greater good" nonsense, which always seems to involve taking money from everyone else and you and your friends deciding how best to spend it. Your system involves force - none of what has happened recently is about force, it is about speculation.

Then he becomes so incredibly economical with the truth it's barely worth believing anything else he says:

"Remember, we spent a billion dollars of our taxes bailing out the Bank of New Zealand in the early 1990s. The bank made the same mistakes that the American institutions have made. You'll remember that our free-market ideologue, Ruth Richardson, was in charge of our economy at the time, but that didn't stop her from taking a billion dollars of our funds to bail them out"

I remember a bit better than you Matt. The bail out was NZ$380 million, hardly a billion. However, you have long campaigned for higher taxes so what's NZ$600 million between socialists? The bail out was just after the 1990 election, the bank had been left in a parlous state after the 1988 sharemarket crash, and Matt - it was majority state owned. Yes the taxpayer held a majority state - something you undoubtedly approve of. So the taxpayer bailed out a majority taxpayer held bank, it was privatised two years later.

"Our politicians and business leaders need to come clean and admit that free market capitalism doesn't work and never has." Oh I see Matt, so what does? Oh you don't know do you? So how doesn't it work? Are the failings of a majority state owned bank an example of free market capitalism? Are the failings of government created behemoths Fannie Mae and Freddie Mac examples of free market capitalism? Is the extension of the money supply, backed by - nothing - in the 1990s, an example of free market capitalism?

Go back to reading the selected works of Lenin Matt, stop pontificating on something you know nothing about.

No comments: