Oligarchies Have Become Too Big to Shrink

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Bullion Bulls Canada) -- One of the first things learned by beginning economics students is that monopolies and oligopolies are unmitigated evils in any free-market economy.

They are non-competitive and totally parasitic; and in the rare instances when one of these abominations is perceived to be a necessary evil, that inherently parasitic nature demands that they be securely restrained in a regulatory straitjacket.

Sadly, this appears to also be one of the first lessons forgotten by economics graduates, apparently moments after accepting their degrees. Today's global economy today is not only saturated with these mega-monstrosities, but where much, most, and in some cases all regulation has simply been put through a paper-shredder -- and all with the complete blessing of the intellectual zombies in the economics community.

After a quarter-century of allowing these corporate oligopolies to rampage out of control, the carnage is plain to see. The worst revenue-crisis in the history of Western democracy threatens to bankrupt most if not all of these economies. Our tax base continues to wither and die. We see big business and the ultra-wealthy refusing to be taxed (while parasitically enriching themselves at the fastest rate in history), while everyone else simply has nothing left to tax.

Forty solid years of declining wages in real dollars combined with 40 solid years of rising structural unemployment has caused our poverty rates to more than double (and created millions of homeless) and transformed most of our former middle-class into a brand-new class: the "working poor" -- drones who exist merely to service the corporate oligarchs. The result of this 40-year slide in our standard of living is that it now takes two incomes in a household to provide the same standard of living as was formerly provided by one-income families a mere generation ago.

However, you would never know of this crisis by viewing any of the outlets of the oligarch-controlled mainstream media. In the world of big media, our governments are being bankrupted by "too much spending." The disconnect with the real world only intensifies when big media tells us what it thinks we "can afford" and what we "cannot afford."

We can afford to spend trillions of dollars invading nations halfway around the world. Apparently no price is too high when it comes to preserving the money-laundering profits of the banking oligarchs, the war over drugs, or hijacking the oil resources of other nations for the oil oligarchs (the "War for Oil" in Iraq).

We can afford to dole out trillions of dollars more every year in corporate welfare (i.e. "subsidies") for deadbeat oligarchs -- who take about $10 in hand-outs for every $1 they pay in taxes.

We can afford to pay trillions of dollars in interest every year to the bond parasites , interest on paper which these bankers literally conjured out of thin air (and at no cost to themselves). This is despite the fact that much of this debt, and the interest payments on it are a direct result of either fraud in the interest-rate swaps market or fraud in the credit default swaps market (by the same cabal of bankers).