United Liberty

Whom do you trust?

It’s an open question that I’ve been pondering for the past several weeks. The markets have been asking this question, as well — despite billions of additional borrowed money to bail out Citibank and protect AIG’s trading partners, we keep sliding to new lows as debt deflation continues.

Our Treasury Secretary, Turbo Tax Tim Geithner, sat in front of the Ways and Means Committee Tuesday to assure our representatives that his actions, and Obama’s budget proposal, are absolutely necessary to restore our economy. His favorite quote when confronted by pointed questions or painful anecdotes from our current crisis was, “That’s exactly why we need to…” [bail out AIG/increase the TARP/create the TALF/embrace a budget that forecasts a $1.75 trillion deficit].

Oh, really?

Obama’s address Tuesday evening contained a fascinating lesson in economics and monetary policy for the American public. Let’s review:

So the recovery plan we passed is the first step in getting our economy back on track. But it is just the first step. Because even if we manage this plan flawlessly, there will be no real recovery unless we clean up the credit crisis that has severely weakened our financial system.

I want to speak plainly and candidly about this issue tonight, because every American should know that it directly affects you and your family’s well-being. You should also know that the money you’ve deposited in banks across the country is safe; your insurance is secure; and you can rely on the continued operation of our financial system. That is not the source of concern.