Smashing Big Banks Only the First Step: Opinion
Apparently not everyone has forgotten the basic fundamentals of economics.
Going all the way back to Adam Smith economic theorists have acknowledged a central premise of capitalism: Oligopolies are predatory, parasitic abominations that can never be allowed to evolve in our economies.
Or, as I put more succinctly in a recent commentary, "too big to fail = too big to exist."This premise is so self-evident it should not even require elaboration. Yet, the fact these Vampire Banks not only exist but continue to grow shows this simple truth is still not grasped by more than a small fraction of the population. What is "too big to fail?" It is a group of banks saying to the U.S. government (and governments across the West): "We're so important that you must save us...or else." This is extortion. It cost U.S. taxpayers somewhere in the neighborhood of $15 trillion in assorted hand-outs, 0% "loans" and "guarantees" when Wall Street made its extortion demands in 2008. Since that time the U.S. economy is much weaker, much more debt-leveraged (i.e. insolvent) and the Wall Street vampires have been allowed to get even bigger. The result? Serial extortion in the form of the latest quantitative easing from the Federal Reserve: $500 billion per year in blackmail payments, ad infinitum. Incredibly, the sheep still don't understand even this bankster crime of theft-in-broad-daylight, so perhaps a simple example will illustrate it. Seven castaways are stranded on a desert isle. Even though they only have one "good" to purchase in their economy -- coconuts -- one of the castaways happened to bring along a printing press. They decide to have their own money. Ten coconut dollars are printed for each castaway per month. Then one month one of the castaways -- let's call him Gilligan -- gets a brilliant idea on how they can all get rich: print more money. Instead of printing only 10 coconut dollars per castaway each month they would print 1,000 coconut dollars. So even if they never got rescued, they would soon all be "rich."
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