There are people out there who can define the current conditions beautifully. What usually happens is that those same people usually go out and make some really bad suggestions about how to fix the problem.
Hence our old friend Karl Marx. If there was anyone who had a complete and systematic critique of the excesses of the banking system, it was he. Capitalism is a mess. It has a lot of money, so it can buy great PR, but it is still a system that is parasitic and counterproductive. The wealth it has generated grossly distorts the high-priced politics of the US. Because it uses massive amounts of the ill-gotten profits. There is little or nothing that it touches that it does not taint irrevocably.
Now the bankers have imploded. This is something that has occurred fairly routinely since the days of John Law. What is amusing is that this fraud and charlatan’s reputation has been rehabilitated during these last years of excess. Maybe he can be proposed as the patron saint of the current collapse, resembling as it does the Mississippi Bubble that may well have started France down the road to the end of the Ancien Regime.
So, after Law, there were many messes in banking. The Land Bank in England, the First Bank of the United States was a mess, the Second Bank of the United States may well have been worse. Marx wrote Das Kapital as a reaction to the depredations of the Banks in Europe in the Crisis of 1857. There is 1907 to think about. The Federal Reserve seems to go out of its way to choose the wrong path.
The point of all this is that one should always remember, the Federal reserve is not a Government Agency, it it wholly owned by banks and exists for their purposes. We may think that the Fed is under our control, but the ownership structure shows just how wrong we are. The Central Bank of the United States is nothing more than a political front-man for the bankers who have every intention of draining the People of the United States dry.
But lets not for a moment think that Marxist methods of addressing the problems will work. The Dictatorship of the Proletariat and the withering away of the State are opium dreams, little better than the visions of Xanadu that was so rudely interrupted by that “person from Porlock”.
So now we are saddled with the “Cavaliers of Credit” so aptly described by Marx. They are the big money center banks that the Clinton’s, Bushes, and now the Obama Presidencies were and are in thrall to. What now faces us is that we have to figure out how to break these big money center banks and their chieftain, the Federal Reserve. It isn’t going to be easy, and when it happens, we will most certainly go through a serious contraction, but hell, in case you haven’t noticed, we are heading that direction anyway.
In the end though, we will return to a rational and organic growth rate. We will also break the stranglehold that these large banks and the Fed have on our system and some of our souls.