During last night’s Republican debate, Dr. Ron Paul, the only candidate who truly understands economics, fiscal and monetary policy and the financial markets, asked the only truly probative question during that part giving candidates the opportunity to ask each other questions. Dr. Paul’s question of McCain was spot on.
McCain had angrily, and incorrectly, denied the moderator’s statement that McCain had admitted in the past that he was weak on economics. McCain’s protestations aside, Ron Paul proved the point.
REP. PAUL: Myâ€”my question is for Senator McCain.
This is an economic question that I wanted to ask. It has to do with the Presidentâ€™s Working Group on Financial Markets.
Iâ€™d like to know what your opinion is of this and whether you would keep it in place, what their role would be, or you would get rid of this group. And if you kept the group, would you make sure we would see some sunlight and know what theyâ€™re doing and how theyâ€™re being involved in our markets?
The look on McCain’s face was one of pure bewilderment and it is obvious that he doesn’t know what the President’s Working Group on Financial Markets is. Another name for the group is the Plunge Protection Team and it is an entity that is believed to have the power to take taxpayer money and “to support the markets in a crisis with a host of instruments, mostly by through buying futures contracts on the stock indexes (DOW, S&P 500, NASDAQ and Russell) and key credit levers. And it has the means to fry “short” traders in the hottest of oils”.
In other words, it artificially props up the market and arbitrarily punishes those wise enough to foresee weaknesses in the market and to short it. So, if you are wondering why we did not experience a total meltdown in the stock market last Tuesday, I suggest that you study up on the Plunge Protection Team and its flimflammery.
In the meantime, examine the depths of McCain’s economic and policy ignorance in this gem of a YouTube Video which draws parallels between his answer to Dr. Paul and Miss Teen South Carolina’s unfortunate answer to a question in the recent Miss Teen America contest. It’s a hoot.
Cross posted at Liberty’s Brush Fire.