Robert Novak, in his syndicated column notes the following rather ominously:
The expense of such an intervention is not a problem because the Fed, unlike the president and Congress, can print money. The Bear Stearns bailout, approved in private by unelected officials, contributes to paranoid grievances on the left and right that built support for Ron Paul’s presidential candidacy. A Fed official conceded privately this week that “we may have crossed a line” in jumping into Bear Stearns — and that is an understatement. There is no doubt the American economy is in uncharted territory, with reverberations that cannot be forecast.
Unfortunately for Ron Paul, and for the rest of us, too few Americans care about the minutiae of economic policy. While the Bear Stearns bailout would arouse public interest if covered in a certain way by the media, it is far more likely that the public will ignore it, instead paying attention to whatever the media says is important.
It reminds me of a scene in C.S. Lewis’s That Hideous Strength, which I have been listening to lately. In the novel, Mark Studdock is an ambitious young don who is wooed into the National Institute for Coordinated Experiments (yes, the N.I.C.E.) by the charismatic Lord Feverstone. In the scene I have in mind, Major Hardcastle (a sadistic policewoman) explains that she needs Studdock to write the articles that will report a riot she’s planning. Mark is understandably surprised. To paraphrase, Mark asks, “Shouldn’t we wait till the riot’s occurred before reporting it?” Hardcastle and the other N.I.C.E. conspirators laugh at his naivete. They go on to write the articles (different slants for the two major papers), and thereby shape public opinion.
While I am not a conspiracy theorist per se, I do think far more conspiring goes on than I used to believe. And in all likelihood, some ambitious young fellow’s already writing the news before it happens.