So all the rage in the media over the last few days have been the initial results from this “bi-partisan” (as if that means anything) Deficit Panel. This is a mute point because until the issue of the TBTF banks and the rule of law are dealt with there can be no return of confidence to the economy and therefore no recovery. The only thing that “austerity” will bring to the United States is civil unrest and complete collapse of the social structure. The number one thing that has to be done right here right now is immediate return to real accounting for the TBTF bank assets. If that means they are finished, then they are finished. That is how America is supposed to run. We ostensibly have the ability to deal with this situation in Dodd-Frank Act so what’s the problem? My point here is this is the most important issue in America right now. Anyone around the world that is paying even the slightest bit of attention and has a basic financial understanding knows these banks are zombies but are being kept alive because the vested interests pay off the politicians one way or the other. We need to completely hit the reset button on the big banks. As soon as we do this, we will show the world and the American people that we are serious about dealing with our problems and moving toward a real free market with the rule of law instead of the feudalistic crony capitalism we employ today. Nobel Prize winner Joseph Stiglitz seems to agree with me when he stated recently:
But there’s a broader sense of collateral damage that I think that has not really been taken on board. And that is confidence in our legal system, in our rule of law, in our system of justice. When you say the Pledge of Allegiance you say, with “justice for all.” People aren’t sure that we have justice for all. Somebody is caught for a minor drug offense, they are sent to prison for a very long time. And yet, these so-called white-collar crimes, which are not victimless, almost none of these guys, almost none of them, go to prison.”
The people we have running the show right now are not fit for the job which is why nothing changes. We have children performing tasks that require the action of men. This is just as much a social and cultural crisis as it is an economic and financial one. Until we understand that we will never solve the problems we face.
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