The latest wail put out by all the Socialist pundits, who put themselves forward to the public as analysts of the markets, is that the current financial crisis shows the dangers of unregulated, free-market capitalism, and it’s very necessary, perhaps on a world-wide scale, to impose regulations and laws that will insure that this type of thing never happens again. For the 50th time, the backers of fiat currency and socialist-hobbled capitalism (as we see in the US and Britain), are telling us: we must have reform, then it will be “never again”, again. They are going to make sure that Socialism doesn’t fail the 51st time around. Sure.
First of all, let’s dispense with the myth that we have Free-Market Capitalism in America. In point of fact, we have nothing of the kind. Since the creation of the Federal Reserve by Wilson in 1913, our credit creation and interest rates have been at the whim of 10 men, many of whom were, are, or had been closely ligatured to the very industry whose product (interest rates) they were regulating. Obviously, when an industry-insider group has such enormous economic power, which should be instead in the hands of the capital markets, there was and is a wide field for wild abuse, as both Presidents Jefferson and Jackson realized and warned against five- and four-score earlier.
Then there was War-Criminal Nixon’s abandonment of the Bretton-Woods Agreement, essentially creating a non-gold backed fiat currency out of the Dollar in one fell swoop. One of the greatest economic crimes in history. Now, when a currency is no longer backed by any kind of commodity basis, and only on the “Full Faith and Credit” of some political entity, then watch out. This ending of the gold link had been preceded by fellow War-Criminal Johnson’s abandoning of the Federal Reserve Note as a Silver Certificate around 1964. How neatly these two matched their foreign War Crimes with Crimes against the Constitution and American Capitalism!
Moreover, Federal Bank Deposit Insurance, while it seems like a good idea to the man in the street, insures the kind of “moral hazard” which has brought the banking system to its knees in the current panic. It took decades, but it finally led to wild and unscrupulous lending because the banks knew the mountebanks in Congress would bail them out if the Piper ever demanded to be paid for playing all those tunes all these many years. And now the Piper wants his fare money back to Glasgow, and enough for a wee dram or two with the lads, and he’ll nae brook delay.
And finally, we have the catastrophe of Congress bankrupting America in one fell swoop, creating a quarter as much debt in a few weeks as was created in the first 230 years of the Republic, just to save their political skins, and it is working. The ones who passed this give-away to the corporate wealthy are going to get re-elected and sweep into power, both in the legislative and executive branches, so that it will be a piece of cake for the Collectivists and Keynesian Socialists to completely smother the last vestiges of Free-Market Capitalism.
So when you hear all these “financial pundits” and Congressmen calling for more “reform and regulation”, and how horrible dog-eat-dog capitalism and free-market competition is, know you that they are tightening the last screws on the coffin-lid of Free-Market Capitalism, and they intend to bury it, along with Human Freedom and Individual Rights, in the Potter’s Field of Socialism.
However, coffin-lid screws have a way of working themselves loose and sometimes breaking free every 2 and 4 years in America. Just wait for the elections of 2010. Oh boy.
Hoooooooooooooooooooooooooooooooooooooooooowwwwwwww! — Silverwolf