Monday, July 14, 2014

There just has got to be a law to create a new government monopoly.....

Government's Attempt to Control Capitalism and Investment Banking with Regulation is Disingenuous No One in Government Even Knew What a Credit Default Swap was and Now They Want to Regulate Them with an Omnipotence and Condemnation of a Royal Seizure Lex Loeb Contributor Network . Understanding economists is where this discussion has to start. There are more than one kind of economist. Economists set specific values in place before drawing their charts. These preconceived values they plug into their formulas always determine the outcome. Some schools of economists believe that social or religious beliefs are the core values to plug in and other schools believe that profit margins or businesses is really what matters. This is why people are so confused when economists become expert witnesses on televsion and contradict each other. Almost everyone knows it is best to ignore the economic forecasts of all economists or they should. The issue of the government needing to completely regulate the financial industry gets to be very absurd even when it is pumped up as the best of ideas by some economists. The reason is clear. When financial derivatives and complex instruments like credit default swaps were developed virtually no one in any government agency knew what they were. Now after the fact the government is hungry to create jobs to regulate what they still do not understand. The reason for complex instruments was primarily government regulations and specifically taxes and the need for credit grows in reaction to government produced inflation. Expectations of inflation helped remake the financial markets after the last big government push into finance which yielded it's own boom bust cycle. The great crash of 2008 was not devoid of government involvement and the US markets were the most regulated anywhere in the world. Then the truth came out about Bernie Madoff . The SEC reviewed Bernie Madoff's Ponzi Scheme several times and did not have a clue that he was running what others tried to tell the SEC was an obvious Ponzi scheme. The government had all the regulatory power in the field and turned out to be absolutely useless! This is why we need more regulation? With the social good economists having taken over the bad news air in the news media these people are promising a new eden in finance. Then we get to look at the details and we see that the government is already trying to grab control of the financial industry and turn it into a monopoly like the post office or otherwise give the biggest leaches on wall street an oligarchical monopoly. Either way we were reminded again recently that the US post office is completely broke. As expected the reason the government is trying to grab wall street is that it is broke. The clues are there to read because it is not just the post office. The social entitlements like social security and Medicare are in dire straits and cannot necessarily be financed with the bubble of baby boomer's all getting on the dole at once. Is Obama and Geitner this smart to be thinking ahead about such things? No. They are not even addressing the obvious. Government debt borrowing is what gives us the clues we need to see that government is broke and in danger of reacting to that crisis by obliterating your rights to own private property of any kind. There are too many historic examples to ignore. The present Obama administration is acting more like Louis the 16th of France than Stalin. At least Stalin had slave labor. France was doing what the Obama administration seems to be building up the failed intuitions that should have been replaced. Pushed too far the American people will also go the way of a revolution. If the US Post office ,Bankrupt king of the public private partnerships, that President Obama is telling us is how we want our financial system to be, watch out below! The straight dope on financial banking and real capitalism: It will go on regardless of what stupid regulations the government makes. It will move off shore. It will find away around dealing with government. Just because mutual funds were regulated did not prevent the invention of hedge funds! Hedge funds will now be regulated with Obama acting like they were doing something unjust and unreasonable in haughty condemnation. OK, so the government will take over hedge funds now and do the same thing they used to do because government resolves the sins by taking them over! It is a sin for anybody but big government to make money in finance? Why are people taking president Obama seriously? He sounds like Hugo Chavez in Venezuela taking over first the oil industry and next everything else and saying his government and inner circle fiends are the ones who need to profit instead. Same old story. But here in America? Right now the world governments have banded together to stop the abuses off off shore secret banking. The problem is they are already too late. The computer programming whizzes have already made it possible for a completely encrypted online financial banks to exist that no government agent can hack into. If someone can create a site online like face books and become a billionaire just imagine what can secretly be created on wold computer networks. The whole world banking system has become an encrypted virtual reality. Bank insiders and others can totally abuse this system the way ordinary identity theft hackers can and worse. It can be systematic and it can be possible to have a secret bank account that is on the books of ordinary bank, government computers and corporations of any kind which will make secret account off shore banking a thing of the past. Probably already has. Government might not catch on for 30 years. There are also predictions that people will abandon government money and start to take a virtual online currency more seriously. If you think that is crazy beware it took just a few years for Internet banking to become very serious big business. By the time the government takes over the US financial system and over regulates their completion capitalism will be free and vigorous and either a gray or black market. My prediction is that the way the government is acting is that we can expect the US government to be more broke than our banks and the currency of the US to be trash. Buying into the fiction that government is fixing anything is popular now but reality is that if government is controlling the banks and creating double digit levels of inflation then the economy will be in even worse shape than ever imagined. Deflation and the temporary lack of credit will seem the better alternative. In the past the interest rates were in reaction to inflation if government controls the banks there is no way out of being decimated by government stealing one's assets in their inflation. This happens in places like Buenos Aires, Mexico City pretty often. The US will not be a world financial capital when it happens here. .

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