((Much of this post is from the Reader’s Digest article, “Keep Washington Off
Wall Street”, issue for June, 1999, page 87.))
In his State of the Union address, President Clinton proposed setting aside a projected $2.7 trillion budget surplus for Social Security. I ask, “What surplus? Where?” With the “surprise” expenses of our undeclared Balkan war what “surplus” will there be?
President Clinton wants to invest some $600 Billion (of this theoretical surplus) in the stock market for Social Security. This would disrupt and/or corrupt the entire stock market, destroy our private investments, and our retirement/investment funds. Worse, it would be used as a tool of government influence and destruction.
No federally-appointed investor (or group of investors) will pick stocks without Congress or White House influence.
- Companies producing firearms, ammunition, tobacco, “dangerous” or “harmful” products (or by-products) would be short-changed as investors tried to outguess the Big Fed Fund.
Organizations unpopular with the government would be meddled with.
- Why sue Microsoft? Buy it! Now you can dictate how computers are used, how the internet will work, and have all “necessary” controls for public “safety”.
- Buy $1,000,000 of S&W stock. When the price starts to climb, sell! The stock drops and everybody bad-mouths and deserts S&W (which falls into ruin).
- Heck, by up all the Colt stock and close the company! Don’t “need” all those nasty ole black guns killing children!
City pension funds usually are manipulated for the benefit of local politicians.
University/College funds usually are manipulated to serve their personal and political wants. Now add all those funds together and multiply that sum by a
thousand and you have a close approximation of the Big Fed Fund!
Imagine the money to be made by making “friends” with the rulers..., er,
“Administrators” of the Big Fed Fund!! A simple smirk or a timely wink could be
worth millions of dollars to the savvy investor (in return for subsequent political
donations).
Of course that never could happen! Our honest, moral, law-abiding government
would always invest with integrity. (Can you spell, Whitewater? How about
“pork”?)
Even if (giggle, chortle, GUFFAW!) the Big Fed *could* be 100% honest, (choke,
laugh, wipe away tears....), what would happen to stock prices with an influx of
$600,000,000,000.00!
Good Lord! Prices would sky-rocket! Where would all that money come from?
Only governments can actually “produce” or “make” money. For us it is a
zero-sum game - if somebody wins, somebody loses. Whether the stock market
already is dangerously inflated is arguable. But $600 Billion would inflate stock prices way beyond value.
Temporary gains could be immediate - I understand. But what comes later? The only source of money (in this case) is from the stock market investors - including our university/college funds, retirements funds, etc.
As Big Fed stumbled ponderously around their “Investment Strategy”, most people would lose their financial future (if not their “present”).
Oh, of course! I forgot! The Securities and Exchange Commission NEVER would allow such violations of their (federal) rules!
Why next thing, I’ll accuse the federal government of infringing upon the ... uh, the ... , whaddaya call ‘em ... ,
the Bill of Rights!
This would be a back-door approach to gun control, but worse. In a larger sense,
it is a back-door approach to nationalizing the entire private business sector. It
must not happen.
Wall Street”, issue for June, 1999, page 87.))
In his State of the Union address, President Clinton proposed setting aside a projected $2.7 trillion budget surplus for Social Security. I ask, “What surplus? Where?” With the “surprise” expenses of our undeclared Balkan war what “surplus” will there be?
President Clinton wants to invest some $600 Billion (of this theoretical surplus) in the stock market for Social Security. This would disrupt and/or corrupt the entire stock market, destroy our private investments, and our retirement/investment funds. Worse, it would be used as a tool of government influence and destruction.
No federally-appointed investor (or group of investors) will pick stocks without Congress or White House influence.
- Companies producing firearms, ammunition, tobacco, “dangerous” or “harmful” products (or by-products) would be short-changed as investors tried to outguess the Big Fed Fund.
Organizations unpopular with the government would be meddled with.
- Why sue Microsoft? Buy it! Now you can dictate how computers are used, how the internet will work, and have all “necessary” controls for public “safety”.
- Buy $1,000,000 of S&W stock. When the price starts to climb, sell! The stock drops and everybody bad-mouths and deserts S&W (which falls into ruin).
- Heck, by up all the Colt stock and close the company! Don’t “need” all those nasty ole black guns killing children!
City pension funds usually are manipulated for the benefit of local politicians.
University/College funds usually are manipulated to serve their personal and political wants. Now add all those funds together and multiply that sum by a
thousand and you have a close approximation of the Big Fed Fund!
Imagine the money to be made by making “friends” with the rulers..., er,
“Administrators” of the Big Fed Fund!! A simple smirk or a timely wink could be
worth millions of dollars to the savvy investor (in return for subsequent political
donations).
Of course that never could happen! Our honest, moral, law-abiding government
would always invest with integrity. (Can you spell, Whitewater? How about
“pork”?)
Even if (giggle, chortle, GUFFAW!) the Big Fed *could* be 100% honest, (choke,
laugh, wipe away tears....), what would happen to stock prices with an influx of
$600,000,000,000.00!
Good Lord! Prices would sky-rocket! Where would all that money come from?
Only governments can actually “produce” or “make” money. For us it is a
zero-sum game - if somebody wins, somebody loses. Whether the stock market
already is dangerously inflated is arguable. But $600 Billion would inflate stock prices way beyond value.
Temporary gains could be immediate - I understand. But what comes later? The only source of money (in this case) is from the stock market investors - including our university/college funds, retirements funds, etc.
As Big Fed stumbled ponderously around their “Investment Strategy”, most people would lose their financial future (if not their “present”).
Oh, of course! I forgot! The Securities and Exchange Commission NEVER would allow such violations of their (federal) rules!
Why next thing, I’ll accuse the federal government of infringing upon the ... uh, the ... , whaddaya call ‘em ... ,
the Bill of Rights!
This would be a back-door approach to gun control, but worse. In a larger sense,
it is a back-door approach to nationalizing the entire private business sector. It
must not happen.
