Sunday, September 05, 2010

Why we're broke: US economic policy rigs the game to protect wealth of a clique of greedy, incompetent bankers who should be bankrupt

Editor's note: the following was written in the Comments section of Alternative Right by commenter "Tadzio" in response to the article Exporting Bailouts:

The Constitution provides for bankruptcy courts. They have the framework and the expertise to sort things out. If Congress, the Treasury and the Fed had butted out two years ago the financial crisis would likely be over by now. This is the history of financial panics. This was how President Warren Harding solved the financial collapse he faced when he came into office. He did nothing. Harding is greatly underestimated because he was not a meddlesome pest.

The capitalist system requires rich people. But it does not require any specific group of rich people. When the insiders screw up the best thing is to bankrupt them and make them guests of the state if their cupidity violated laws. The Courts, bankruptcy and criminal, clear the decks for a new set of rich people. There will be no shortage of volunteers. The new people may even be better than the old lot who have proven themselves unworthy of society's rewards.

The present economic policy is all about protecting the wealth of a greedy clique of banksters, mostly Jewish. Just look at the Fed, the White House's financial team and the too-big-to-fail institutions. It is an inward looking camarilla of adventurers. They lost their money and the government made them whole - plus.

There were many successful, solvent Midwestern bankers in the system who should have been moved forward, but they were not part of the Gang. And they were mostly Christians. All cliques act this way but Jewish ones are racially motivated in addition to the commonplace greed. They exhibit rapacity on steroids.

Until this financial mafia is displaced there will be no recovery. When the Protestants overdo it, bring in Catholics, Muslims, or whatever. Eventually the circle will return to Jews and they will fail again. Then boot them again. There will always be an oligarchy milking the economy. It will always be replaceable too.

The key to making them useful is accountability. And that is best enforced through the means provided by the Constitution - courts for crooks and courts for bankrupts. It works. Bailouts and stimulus packages aggravate and prolong the pain.

Capitalism works and enriches. Crony capitalism destroys and impoverishes.

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