TruthSavvy.

Has America lost its soul? Is America too immoral and shortsighted to allow prudent capitalism to work properly? (Yes.) Is the Canadian hedge fund manager, Erick Sprott correct that the U.S. government is now a “dead man walking,” with central bank intervention the main dynamic that allows the U.S. Treasury to roll over government debt at low interest rates? (Marketwatch, Oct. 20, 2009).

All right, not everything in today’s Farrell commentary is erudite or even proportional. Nevertheless, he does make some valuable points. It is apparent that America is setting up various disgruntled interests in the world to make war with us. The U.S. decision to monetize debts in the face of a deepening recession is problematic. Quantitative easing (as it is called) will expose our international friends, competitors and enemies to economic complications as our U.S.

Who, if anyone, is surprised that Mr. Stanford’s chapter unfolds in Madoff-ite fashion, politics and all? Who, if anyone, does not expect bailouts and partisan subsidies to continue, with justice thrown to the wind as evidenced in the expanding mortgage subsidy affair?

The American economy could operate more safely by looking to the essentials in Aesop’s Fables than by following Irwin Kellner. Mr. Kellner’s spending advice might pump up the stock market for a short time — long enough to allow elites to dump unwanted holdings at better prices — but would serve to weaken the U.S. relative to other nations like China. Furthermore, added borrowing will increase the national calamity once there is insufficient demand for Treasuries to support the public debt.

One war is over. Another one begins. The war to save America from plutocracy was lost this week as the federal government capitulated to financial sector demands for fresh capital and more bailout guarantees. Naturally, the Bush and Obama administrations don’t see themselves as losing the financial war. But they’re two of a kind when it comes to Wall Street. Just consider Obama’s willingness to work the phones to U.S. Senators to secure more money for financial elites.

Some market observers opine that we ought to be thankful for the fiscal stimulus provided by Paulson’s Troubled Assets Relief Program (TARP). They argue that the U.S. economy would be in a deep hole without TARP. Probably. But that deep hole might be a better spot than the deeper pit of lost governmental legitimacy we now find ourselves in as TARP socializes the investment errors of wealthy speculators. It may be that the Secretary of the Treasury’s radical action will help us skirt a severe recession and even partially re-inflate capital assets in the near term.

David Weidner says that the 2008 crash has Americans wanting to loot Wall Street castles since Wall Street looted their homes. The good news is that Weidner counts himself among those who are angry with Wall Street. The bad news that he reads too much “revenge” into the public mind and not enough respect for the sanctity of real justice.

Point well made, friend! If foreign investors lose confidence in the dollar, then the U.S. government must look elsewhere to fund the continuous rollover in treasury bills, notes and bonds. Eventually, deep pockets will be needed if the government is to meet its Social Security obligations (a prospect within ten years). But it will take much bigger money than Oprah can marshal to pull off this bailout. Anyway, the really big money is out of the public’s sight, not tracked by Forbes.