Sunday, October 16, 2011

Systematic Theft

There is systematic theft in the American financial world.

Conservatives would be wise to spend more time trying to root it out and stop the theft.

One clue to systematic theft it that the theft often begins with appeals for the greater good.

Often systematic theft comes in the form of regulation. Whenever a regulation artificially increases prices or reduces competition, that regulation has the effect of taking from the many for the benefit of the few.

Our current regulatory system has regulation piled upon regulation. One will often find a regulation regulating the use of regulatory tools. A prime example: Insurance was created to regulate health care expenses. There is a massive regulatory regime built around this regulatory tool.

Another example. short selling was created as a means to regulate stock. There are regulations regulating this regulation method.

If you remove one removes the regulations regulating the regulators, then the regulators will run amok and wreak havoc in the financial community.

Read the regulations that created the derivatives. The derivatives were all justified with a belief that they would regulate stock fluctuations and result in unending prosperity. They had the effect of concentrating wealth.

Attempts to deregulate these regulatory tools resulted in chaos.

To restore prosperity, we need to start rebuilding sound financial institutions from the ground up to replace the captured systems that are destroying the country.

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