Is America Too Big To Fail?
The phrase “too big to fail” popped into existence four years past when evidence surfaced condemning giant financial institutions’ practices, government social engineering, and grand theft wisdom by the powerful. The words were nothing more than an anodyne.
Accepting that recessions are a natural ebb and flow of financial trends, it must be recognized that economies eventually balance bad behavior with equally bad results. Everyone should have seen it coming, but they simply refused on grounds that “it just hadn’t been done right” in earlier days. But rules are rules for good reason. Some call it karma, some call it God’s justice, but no matter what nomenclature, the upshot is identical.
This is so well documented in old fables. Morality plays like The Ant and The Grasshopper, The Pied Piper, and tales ad infinitum warn that unthinking acts are always followed by unthinkable results, or, at any rate, unplanned retribution.
To be fair, the policymakers during the last collapse had acceptable logic supporting TARP, the Stimulus Act, and Quantitative Easings One and Two. The United States was a powerful economic engine, unique on the globe for its ability to take on challenges, create solutions, and convert difficulty into opportunity. It had been done before, it could be done again were assumptions few doubted. Few, that is, but those who recognized that government involvement was to become more burden than asset.
Finance had become the business of “giving untrustworthy people unworthy currency that could never be repaid.” In short, the assumptions were based on fallacious information delivered by suspicious individuals to desperate government bodies made up of often uninformed and unaccountable officials who made decisions under duress.
These policies had been tried before, although not to this titanic degree, and they were minimally successful. Once again arose the general wisdom that it had not been done correctly or by these much more educated people. Yes, “too big to fail” was the catchphrase uttered by no less than top economic sages. If only the failed institutions were bolstered by an influx of capital, conditions would smooth and business would return to normal in perhaps a year, two at most.
America could do it, circumstances be damned, current history be damned, world markets be damned. Reflections on past glory were disseminated to the press without one dissenting quote from the powers that were. All would be well. It had to be because the impact of so many collapses at one time were intolerable in the halls of power: money changers. It was what used to be called the elevator settlement: a few money people got the car, the people got the shaft.
If even skewed statistics are to be believed, an anemic growth rate of 1.5 percent indicates that with every passing year there will be a heavier buyers’ market in employment. Real jobs will be available at a fraction of the pay of the first six years of the millennium, with part time jobs further eroding the value of the gross economy. Other data reveals that 47 percent of the population relies on food stamps for weekly marketing.
It is interesting to note in passing that EMP has become the modern equivalent of the soup and bread line, thus no collections of angry indigents to spoil the landscape. The idea of suffering made invisible is but another effect of hiding the truth by masking economy.
Indeed, the United States economy is the most powerful in the world, eclipsing even that of a growing China whose population is some 20 times greater. And these are gross numbers, not per capita, but the “powerful” word pales when so many other economies are so much worse.
What the policymakers “who are doing it better” fail to recognize is that there are so many contrived restraints on business that did not exist even during FDR’s New Deal, which was nothing more than accomplishment of grand projects at one-quarter slave wages that benefited huge interests. This was a second step of government competing with private business while bedding down with other, more politically acceptable business.
These days, government beds with green interests and drives down wages by procuring seemingly good value for “the good of all.” But in so doing, political interests drive up the cost of private enterprise by draining investment capital into bottomless maws of agency interference. Now, fully one-third of business finance is used to satisfy government requirement, and with implementation of Obamacare, it appears that more than 50 percent of said finance will be used to quench, temporarily, federal overreach.
Government burden is effectively killing, better said assassinating, private enterprise through tax and regulation in an attempt to provide equality. And here’s the rub: If government becomes the chief or only competitor, who becomes the market? The question begs an answer other than government.
If the government is too big to fail, is this predicated on all others failing? If the answer is affirmative, then government must countenance a history which recounts that all monopolies fail.
Here, it’s only a matter of time, but it can be stopped.
The American people are peaceful by nature, but they are strong. They can, and will, say no, given the forthright information. That moment is coming, but let it be hoped that the turning point is sooner, rather than later.
Nothing is too big to fail.