Mixed Reviews On The Paulson Nomination

In the London Times Gerard Baker sees his role as essentially defensive. Given that income tax reform and Social Security reform look to be dead, the only place where he can make a mark is on the dollar.

Will Mr Paulson be content to go along with the odd twin-track approach of the past few years — publicly expressing support for a “strong dollar” while in practice happily acquiescing in the US currency’s decline?

A Wall Street man may not like having the dollar depreciate on his watch.

In fact his main task may be to prevent the dollar decline turning into a rout.

But the MSM is ready to cheer. In Time Mike Allen echoed the White House line that they had “landed a whale.”

In the strict sense, he is right. Goldman Sachs today sits at the pinnacle of Wall Street. But can he make a difference as the Bush administration tries to deal with the triple threat of high oil prices, declining dollar, and rising interest rates?

The conservative base is sounding an alarm. In Human Events Robert B. Bluey notes that while Paulson has contributed to Republicans his wife Wendy is a financial supporter of Democrats and Hillary Clinton.

And there is the question of the Nature Conservancy. Both Paulsons are active in this conservation group that buys up land to transmit to the federal government. But there have been questions about the Nature Conservancy. That Hank Paulson is

chairman of the board of the Nature Conservancy, which is under investigation for financial misdealings that benefited some of its officers and donors, should automatically disqualify him for the top Treasury job.

Goldman Sachs also has dealings with the mortgage giant, the Federal National Mortage Assocation.

According to last week's report by the Office of Federal Housing Enterprise Oversight (OFHEO), Fannie Mae managers engaged in a series of questionable transactions, including two with Goldman Sachs, which improperly pushed $107 million of Fannie Mae earnings into future years.

Maybe all this explains why the markets took a dive on the day that Hank Paulson was nominated to be Treasury Secretary.

Sphere: Related Content |

Christopher Chantrill blogs at www.roadtothemiddleclass.com. His Road to the Middle Class is forthcoming.

TAGS

Civil Society

“Civil Society”—a complex welter of intermediate institutions, including businesses, voluntary associations, educational institutions, clubs, unions, media, charities, and churches—builds, in turn, on the family, the primary instrument by which people are socialized into their culture and given the skills that allow them to live in broader society and through which the values and knowledge of that society are transmitted across the generations.
Francis Fukuyama, Trust

What Liberals Think About Conservatives

[W]hen I asked a liberal longtime editor I know with a mainstream [publishing] house for a candid, shorthand version of the assumptions she and her colleagues make about conservatives, she didn't hesitate. “Racist, sexist, homophobic, anti-choice fascists,” she offered, smiling but meaning it.
Harry Stein, I Can't Believe I'm Sitting Next to a Republican

Liberal Coercion

[T]he Liberal, and still more the subspecies Radical... more than any other in these latter days seems under the impression that so long as he has a good end in view he is warranted in exercising over men all the coercion he is able[.]
Herbert Spencer, The Man Versus the State

Moral Imperatives of Modern Culture

These emerge out of long-standing moral notions of freedom, benevolence, and the affirmation of ordinary life... I have been sketching a schematic map... [of] the moral sources [of these notions]... the original theistic grounding for these standards... a naturalism of disengaged reason, which in our day takes scientistic forms, and a third family of views which finds its sources in Romantic expressivism, or in one of the modernist successor visions.
Charles Taylor, Sources of the Self

US Life in 1842

Families helped each other putting up homes and barns. Together, they built churches, schools, and common civic buildings. They collaborated to build roads and bridges. They took pride in being free persons, independent, and self-reliant; but the texture of their lives was cooperative and fraternal.
Michael Novak, The Spirit of Democratic Capitalism

Society and State

For [the left] there is only the state and the individual, nothing in between. No family to rely on, no friend to depend on, no community to call on. No neighbourhood to grow in, no faith to share in, no charities to work in. No-one but the Minister, nowhere but Whitehall, no such thing as society - just them, and their laws, and their rules, and their arrogance.
David Cameron, Conference Speech 2008

Faith and Politics

As far as the Catholic Church is concerned, the principal focus of her interventions in the public arena is the protection and promotion of the dignity of the person, and she is thereby consciously drawing particular attention to principles which are not negotiable... [1.] protection of life in all its stages, from the first moment of conception until natural death; [2.] recognition and promotion of the natural structure of the family... [3.] the protection of the right of parents to educate their children.
Pope Benedict XVI, Speech to European Peoples Party, 2006

Never Trust Experts

No lesson seems to be so deeply inculcated by the experience of life as that you should never trust experts. If you believe doctors, nothing is wholesome: if you believe the theologians, nothing is innocent: if you believe the soldiers, nothing is safe. They all require their strong wine diluted by a very large admixture of insipid common sense.
Lord Salisbury, “Letter to Lord Lytton”

Conservatism's Holy Grail

What distinguishes true Conservatism from the rest, and from the Blair project, is the belief in more personal freedom and more market freedom, along with less state intervention... The true Third Way is the Holy Grail of Tory politics today - compassion and community without compulsion.
Minette Marrin, The Daily Telegraph

Class War

In England there were always two sharply opposed middle classes, the academic middle class and the commercial middle class. In the nineteenth century, the academic middle class won the battle for power and status... Then came the triumph of Margaret Thatcher... The academics lost their power and prestige and... have been gloomy ever since.
Freeman Dyson, “The Scientist as Rebel”

Government Expenditure

The Union publishes an exact return of the amount of its taxes; I can get copies of the budgets of the four and twenty component states; but who can tell me what the citizens spend in the administration of county and township?
Alexis de Tocqueville, Democracy in America

Conservatism

Conservatism is the philosophy of society. Its ethic is fraternity and its characteristic is authority — the non-coercive social persuasion which operates in a family or a community. It says ‘we should...’.
Danny Kruger, On Fraternity

mysql close 0