Economic-Suicide-1208

Economic-Suicide-1208 - W i l l We Commit E conomic S u i c...

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Unformatted text preview: W i l l We Commit E conomic S u i c i d e by Regulation? A mericans h ave Che a mazing i n h e r e n t a b i l i t y t o s hoot t hemsslves i n t h a f o o t . J u s t l o o k a t t h e W orld T rade C e n t e r a t t a c k . A merica p assed t h e " P a t r i o t A c t " t h a t d i d more t o d e s t r o y the B i l l o r R i g h t s than any o t h e r l e g i s l a t i o n o r f o r e i g n a c t c o u l d p o s s i b l y h ave d one. W hat s t a n d i n g a rmies c o u l d not do, we d i d t o o u r s e l v e s . T hen t h e r e was the ENRON % W orldCom c a s e s . The l e g i s l a t i o n t h a t e merged t o make c o r p o r a t e o f f i c e r s r e s p o n s i b l e was so D r a c o n i a n , w here t h e U n i t e d S t a t e s was t h e f i n a n c i a l c a p i t a l o f t h e w o r l d w i t h a 50*5 s h a r e of a l l I POs (new s t o c k o f f e r i n g s ) i n 2 000, we managed t o o nce a g a i n s hoot o u r s e l v e s i n the f o o t s e n d i n g t h e b u s i n e s s t o L ondon. Now, t h e US has l o s t i t s s t a n d i n g as t h e " F i n a n c i a l C a p i t a l o f t h e W o r l d a nd our s h a r e o f t h e g l o b a l IPO m arket i s l e s s t h a n 5 " . . A l l t h e r e s t of the w o r l d h as t o do i s s t a n d on t h e s i d e l i n e s l i k e a v u l t u r e w a i t i n g f o r o u r s e l v e s t o gnaw o f f our own l e g s . T he d ebate we w i l l now h ear i s the b lame w i l l be p l a c e d u pon t he R e p u b l i c a n s and t h e i r d e r e g u l a t i o n p o l i c i e s t h a t c aused t h e c o l l a p s e of the w o r l d e conomy. T h i s i s s i m p l y not t r u e ! The p roblem i s o v e r - r e g u l a t i o n of s m a l l f i r m s and no_ r e g u l a t i o n t o s peak-of f o r t h e b i g f i r m s . U n l e s s we e xamine t h e r e a l i t y o f w hat t ook p l a c e and c o n s o l i d a t e t h e r e g u l a t i o n i n t o a s i n g l e a gency, we w i l l d e s t r o y j o b s , our e conomy, a nd our f u t u r e . T h i s i s not a t i m a f o r p a r t i s a n p o l i t i c s . T h i s i s a t i m e t o r i s e a bove t h e p o l i t i c a l e conomic c h a f f . The "Republican P a r t y has s e l f - d e s t r u c t e d a bandoning i t s e conomic c o n s e r v a t i v e s f o r t h e r e l i g i o u s r i g h t . The R e p u b l i c a n P a r t y may b e a a o n - e n t i t y i n t h e f u t u r e t o be r e p l a c e d by m ost l i k e l y a new T h i r d P a r t y d i v o r c e d o f t h e r e l i g i o u s a gendas. B ut t h a t we may not see u n t i l t he next P r e s i d e n t i a l e l e c t i o n . What we m ust l o o k a t i s the t r u t h . T h i s i s our c o u n t r y we a r e t a l k i n g a bout and the f u t u r e we l e a v e t o our c h i l d r e n . T h i s l a t e s t f i n a n c i a l c o l l a p s e c aused n ot by W a l l S t r e e t , but by the I n v e s t m e n t B a n k e r s , c o u l d no d oubt become t h e f i n a l n a i l i n t h e c o f f i n d e s t r o y i n g A merican c a p i t a l i s m and w hatever i s l e f t o f t h e B i l l o f R i g h t s a f t e r t he P a t r i o t A c t t h a t g ave r i s e t o t h e p hrase - " Papers p l e a s e ! " I n s t e a d o f u n d e r s t a n d i n g t h e r e a l p roblem, we w i l l no d oubt c r e a t e a new " l e v e r a g e " c z a r a gency who w i l l h ave n o c l u e w hat r e a l l y t o do. T h i s may l e a v e the S e c u r i t i e s E xchange C ommission ( "SEC"), t h e C ommodity F u t u r e s T r a d i n g C ommission ( "CFTC"), a nd t h e F e d e r a l R e s e r v e n o t t o m ention t h e Treasury a l l w i t h r e g u l a t o r y t u r f - r i g h t s t h a t w i l l d e s t r o y the economy. I f s uch r e g u l a t o r y r e f o r m comes o ut o f t h i s , a l l we w i l l d o i s c r e a t e a v a s t new r e s e r v o i r o f j o b s f o r more g overnment w o r k e r s , p e r p e t u a t e a host of new j o b s f o r w o r t h l e s s l a w y e r s t o i n t e r p r e t t h e new r e g u l a t i o n s , and m ost l i k e l y a w hole new r e p e r t o i r e of s t a t u t e s t h a t w i l l g et you t h a t t a x - f r e e l i v i n g i n j a i l f o r l i f e . T o e n f o r c e i t , we w i l l n o d oubt a dd an a rmy o f f ormer p r o s e c u t o r s m asquerading a s f e d e r a l j u d g e s t h a t b a s i c a l l y c l i c k t h e i r h e e l s u nder t h e b ench a nd say " z i g h e i l " u nder t h e i r b r e a d t h b e f o r e j u s t r u l i n g i n f a v o r of t h e G overnment n o matter w hat t hey ask f o r . What no s t a n d i n g a rmy c o u l d h ave e ver d one t o A merica, we w i l l d o t o o u r s e l v e s . T he e conomic d e p r e s s i o n we now f a c e has b een i n p a r t c aused by the r e g u l a t o r s SEC St C FTC. We a r e going t o w ipe o u t our economy a nd s end i t b ack t o t h e stone age. J u s t as our f o r e f a t h e r s l e f t t he o v e r - r e g u l a t e d E uropean s ystems o f t h e day f o r f reedom, i t may s oon become t i m e t o r e t u r n home. T he l a s t r a t i o n a l p erson t o l e a v e , d on't f o r g e t t o t u r n out the l i g h t s ! A merican T endency t o O ver-Regulate P erhaps b ecause A merica w as f ounded by the P i l g r i m s ( r e l i g i o u s f a n a t i c s ) , we are j u s t s t u c k i n t h i s s e l f - f l a g e l l a t i o n mode o f b e i n g our w o r s t enemy. Vie m ust n ever f o r g e t t h a t t h e P i l g r i m s w ere r e l i g i o u s f a n a t i c s of t h e i r d ay l i k e t he T a l i b a n i n A f g h a n i s t a n . Not o n l y d i d t h e y r e v o l t a g a i n s t t h e P ope, t h e y c o u l d not e ven g et a l o n g w i t h t h e P r o t e s t a n t s t h a t c r e a t e d t h e C hurch o f E ngland. When O l i v e r C romwell ( 1599-165*0 became L ord P r o t e c t o r of E ngland ( 1553-58), h e was a hout a s r u t h l e s s as the T a l i b a n . The P u r i t a n s mads k i s s i n g y our w i f e i n p u b l i c a f e l o n y . T hey o utlawed a l l s p o r t s b ecause t h e y l e d t o c u r s i n g , t hen o utlawed a l l p l a y s b ecause t hat, was a f orm o f l y i n g , and they e ven o utlawed C h r i s t m a s d i n n e r b ecause y ou s h o u l d be p r a y i n g . The R e p u b l i c a n P a r t y a bandoned i t s e conomic c o n s e r v a t i v e s and p l a c a t e d t h e r e l i g i o u s r i g h t e s p o u s i n g t h e i r i d e a s o n l y no d i f f e r e n t t h a n t h e d ays o f C romwell. Our f o u n d i n g f a t h e r s e s t a b l i s h e d the F reedom o f R e l i g i o n i n t h e F i r s t Amendment n ot t o mean t h e f reedom o f t h e m a j o r i t y t o i mpose t h e i r r e l i g i o n u pon t he r e s t of t h e people. When Mr. A s h c r o f t was put i n c harge o f t h e J u s t i c e ' Department, h e put a t a r p o v e r t h e b ronze s t a t u t e o f J u s t i c e b ecause h er b r e a s t s w ere b a r e . I f t h i s o f f e n d s A mericans, l e t me w arn y ou now - d on't e ver t r a v e l t o E u r o p e . A s h c r o f t w ould h ave b een one o f t h o s e p eople i n h i s t o r y who d e s t r o y e d every s t a t u t e he f ound b ecause i n h i s m ind i t was an i d o l . I s n ' t t h a t s i m i l a r t o t h e T a l i b a n b l o w i n g up t h e s t a t u t e s o f "Buddha c arved i n t o t h e m o u n t a i n - s i d e ? L i k e i t or n o t , we seem t o be v e r y much s t u c k w i t h t h i s P u r i t a n t endency o f s e l f - f l a g e l l a t i o n t h a t w i l l d e s t r o y our s o c i e t y j u s t a s C romwell d i d t o E n g l a n d . T he b a t t l e c r y w i l l b e t h a t t h i s was c aused by the d e r e g u l a t i o n o f the R e p u b l i c a n s . T hat i s d ead w rong. T he I nvestment B anks w ere n ot r e g u l a t e d a t a l l and c r e a t e d a m arket b etween t hemselves n ot to m ention t he f a c t t h a t t h e p r o l i f e r a t i o n o f r e g u l a t i o n s i s a l r e a d y d e s t r o y i n g A merican j o b s and e conomic g rowth. I f we move down t he road of g r e a t e r r e g u l a t i o n o f t h i n g s t h a t d i d not c ause t h e d e b a c l e , you can l i t e r a l l y k i s s t h e f u t u r e g ood-bye. R e g u l a t o r s , o nce s e t i n m o t i o n , a lways s eek t o e xpand t h e i r own p owers u n t i l t hen n o l o n g e r r e s e m b l e w hat t h e i r p urpose o nce w as. E ven t he Supreme C o u r t f o r o nce c a l l e d a s pade a s pade s t a t i n g b l u n t l y t h a t t h e r e w as a i l l — c o n c e i v e d " h y d r a u l i c p r e s s u r e i n h e r e n t w i t h i n e ach o f t h e b ranches t o e xceed t h e o u t e r l i m i t s o f i t s p ower." B owsner v S ynar , 4 S US 714, 111 ( 1996). 7 T h i s t endency t o o v e r - r e g u l a t e o u r s e l v e s t h a t seems t o s tem f rom P u r i t a n i s m o f d ays l o n g s i n c e p a s t , c a n be i l l u s t r a t e d e ven a t t h e l o c a l l e v e l . I n 1QS5, I had j u s t p urchased a new c o n v e r t i b l e c a r . T hey had placed t h e p aper t emporary r e g i s t r a t i o n on t h e w indow. T he a d d r e s s I U3ed W3S a lways t h e o f f i c e s o no one w ould be a b l e t o f i n d w here I l i v e d p e r s o n a l l y . So tha new p l a t e s a r r i v e d a t t h e o f f i c e w i t h the new r e g i s t r a t i o n . I p u t t hem on t h e f r o n t s e a t and was h eaded home w here I h ad a s c r e w d r i v e r . A l o c a l p o l i c e o f f i c e r p u l l e d me o ver a nd a sked f o r t h e r e g i s t r a t i o n . I h anded h im t h e new o ne I had on the s e a t . He t o l d me t o get out of the c a r , f o r he was h a v i n g i t t owed. I a sked why? He s a i d t h e r e g i s t r a t i o n I g ave h im was f o r t h o s e p l a t e s a nd the p l a t e s w ere n ot on t h e c a r . So I t o l d h im t o use the one on t h e w i n d s h i e l d s i n c e i t was s t i l l v a l i d . He s a i d i t was t o o l a t e , I h ad a l r e a d y g ave h im t h e new one. I h i r e d a lawyer and s pent ^1,000 t o f i g h t . T oo l a n y A g e n c i e s D e s t r o y t h e Economy Thomas J e f f e r s o n (1 7 43-lS''.6) was one of t h e t h r e e g r e a t m inds t h a t e s t a b l i s h e d t h e U n i t e d S t a t e s - t h e o t h e r two b e i n g J ames M adison ( 1751-1335) a nd t h e w o r l d r enown B enjamin F r a n k l i n ( 1705-1791). J e f f e r s o n a ccomplished much i n c l u d i n g being P r e s i d e n t of the U n i t e d S t a t e s . Yet of a l l of h i s a c c o m p l i s h ments, he r egarded t hose he recorded f o r h i s own e p i t a p h t o be m ost s i g n i f i c a n t . H ere was b u r i e d Thomas J e f f e r s o n A uthor o f the D e c l a r a t i o n of A merican I ndependence o f S t a t u t e of V i r g i n i a f o r r e l i g i o u s f reedom a nd F a t h e r of the U n i v e r s i t y of V i r g i n i a Of a l l t h e a ccomplishments o f t h i s g r e a t man, the f i r s t aaiong h i s d eeds h e a l w a y s c o n s i d e r e d the d r a f t i n g of t h e D e c l a r a t i o n of I ndependence. J e f f e r s o n s hocked many f o r he d e c l a r e d r i g h t s t h a t he v iewed a s " s e l f - e v i d e n t " t r u t h s . " A l l men a r e c r e a t e d e q u a l ... t h e y a r e endowed b y t h e i r c r e a t o r w i t h c e r t a i n i n a l i e n a b l e r i g h t s . " He a l s o p r o c l a i m e d t h a t " governments a r c i n s t i t u t e d among men, d e r i v i n g t h e i r j u s t p owers f r o m t h e c onsent o f t h e g overned; t h a t w henever any f orm o f g overnment b ecomes d e s t r u c t i v e of t hese e n d s , i t i s t h e r i g h t o f the p eople t o a l t e r o r a b o l i s h i t and t o i n s t i t u t e new g overnment." T hese w ere t he w ords t h a t s e t t h i s n a t i o n i n t o m otion. B ut we m ust n o t f o r g e t , t h a t g overnment o nce e s t a b l i s h e d , w i l l a lways s eek g r e a t e r p ower t han i t was g r a n t e d . T h i s i s the " h y d r a u l i c " p r e s s u r e of w hich t h e S upreme C o u r t o nce a d m i t t e d q u i t e c a n d i d l y . J e f f e r s o n e s t a b l i s h e d a nother g r e a t e v i l o f g overnment we c annot l o s e s i g h t of i n t h i s d ark h our. He l i s t e d among t he t y r a n n i e s of t h e X i n g : "He has e r e c t e d a m u l t i t u d e of New O f f i c e s , and s e n t h i t h e r 3warms o f O f f i c e r s t o h a r r a s s our p e o p l e , a nd eat out t h e i r substance." T hese a r e not my w ords. T hey a re the w ords o f one of the g r e a t e s t m inds i n h i s t o r y . I f we do not l i s t e n t o him now, t hen we w i l l c o n t i n u e down a p a t h t h a t w i l l l e a d t o r e v o l u t i o n . Do not t h i n k f o r one m inute t h a t as A mericans we a r e a bove r e v o l u t i o n a r y v i o l e n c e . T ake t h e a b i l i t y t o e arn i ncome away f rom t h e p eople t hrough e conomic c o l l a p s e , and you w i l l s uddenly s ee t h e s h o r t - t e m p e r o f t h e mob. B o t h R u s s i a and C h i n a c o l l a p s e d b ecause a c ommunistic s t a t e t h a t owns e v e r y t h i n g , c o n t r o l s e v e r y t h i n g . T hat i s w here o v e r — r e g u l a t i o n l e a d s . I t i s t h e c o l l a p s e of money s u p p l y and p r o g r e s s t a k i n g s o c i e t y b ack t o t h e d ark a ges a f t e r the f a l l o f Rome. When c a p i t a l w i l l n ot f r e e l y i n v e s t , the v e l o c i t y o f money c o l l a p s e s a nd t h e r e i s no s e l f - i n t e r e s t t h a t c r e a t e s the e conomy. T here c an be no c e n t r a l p l a n n i n g . G overnments c annot d etermine w hat w ould be good o r bad. T he same i s t r u e i n t h e c o r p o r a t e w o r l d . J u s t l o o k and you w i l l s ee t h a t l a r g e c ompanies w i l l b uy the s m a l l e r i n n o v a t i v e c ompanies t o g a i n p r o g r e s s , Why? B ecause t he b o a r d o f d i r e c t o r s i n m ajor c ompanies w ant n o r i s k . T hey h ave no v i s i o n a nd r a r e l y w i l l f u r t h e r g r e a t e conomic a dvances. A l l i n n o v a t i o n u s u a l l y c omes f rom t h e s m a l l f i r m t h a t has t h e i d e a , t h e c ourage a nd c o n v i c t i o n t o i mplement i t , a nd t hus p r o f i t by i t s d evelopment. The b i g f i r m s , l a c k i n g t h a t same e n t r e p r e n e u r s h i p , m e r e l y a c q u i r e t h e s m a l l e r f i r m s t o g a i n new t e c h n o l o g y a nd m arket s h a r e . I n n o v a t i o n r a r e l y comes f rom t he b i g c o r p o r a t i o n a nd n ever comes f r o m government. T h i s i s why t h e t h e o r i e s o f K a r l M arx w ere w rong b o t h i n communism and s o c i a l i s m . G overnment's s e l f - i n t e r e s t w i l l a lways b e m e r e l y t o i n c r e a s e i t s own p ower. I t i s t h i s " h y d r a u l i c p r e s s u r e i n h e r e n t w i t h i n e ach o f the b ranches t o e xceed t h e o u t e r l i m i t s o f i t s p ower," B owsher v S y n a r , 4 78 US 7 14, 727 ( 19S6), t h a t i s t h e r e a l i t y o f g overnment. J u s t l i k e , we n eed checks a nd b a l a n c e s a g a i n s t t h e e x c e s s i v e l e v e r a g e o f I nvestment B a n k e r s , we l i k e w i s e n eed t h e c hecks a nd b a l a n c e s a g a i n s t t h i s " h y d r a u l i c " p r e s s u r e w i t h i n g overnment. To make s u r e we do n ot s h o o t o u r s e l v e s i n t h e f o o t and d e s t r o y more o f o ur economy w i p i n g o u t W a l l S t r e e t e n t i r e l y , we m ust c o n s o l i d a t e e v e r y t h i n g i n t o one c o h e r e n t agency. We c annot make t h e same t y r a n n i c a l m i s t a k e o f w hich J e f f e r s o n l i s t e d among t h e i n j u r i e s t hat, j u s t i f i e d r e v o l u t i o n . We do not n eed 5 a g e n c i e s a l l c ompeting over t h e same t u r f and p o i n t i n g f i n g e r s when t he n e x t c o l l a p s e t a k e s p l a c e b ecause we f a i l e d t o do t h e j o b r i g h t a g a i n . We n eed o ne a gency, n ot a m u l t i t u d e . Why a r e t h e r e hedge f unds a nd a l l a r e o f f s h o r e ? B ecause t h e y cannot e x i s t o nshore f o r when t hey obey t he CFTC r e g u l a t i o n s , t hey w i l l go t o j a i l f o r l i f e u nder t he SEC r e g u l a t i o n s . I t h as b een o u r m u l t i p l i c i t y o f a g e n c i e s t h a t h as d e s t r o y e d o u r f i n a n c i a l i n d u s t r y a nd t h i s c o m p e t i t i o n f e e d s t h e I nvestment Bankers who c r e a t e t h e i r d e r i v a t i v e m arket o u t s i d e t h e r e g u l a t i o n o f b o t h . I f you manage money i n s t o c k s a nd know t h a t t h e s t o c k m arket w i l l c o l l a p s e , y ou c annot u se f u t u r e s t o h edge t h a t r i s k b ecause t h e CFTC s a y s t h a t makes you a c ommodity f und s u b j e c t t o t h e i r r e g u l a t i o n . T h i s was one r e a s o n I r e f u s e d t o manage money. T he r e g u l a t i o n s w ould n o t a l l o w me t o do t h e j o b c l i e n t s e x p e c t e d . Why a r e t h e r e s o many d i f f e r e n t t y p e s o f f unds onshore from junk-bonds, T-bi11 f u n d s , h i g h r i s k f u n d s , c ommodity f u n d s , s t o c k f u n d s a nd so on? B ecause y ou c annot a s a f und m anager do e v e r y t h i n g i n a s i n g l e f und because o f so many d i f f e r e n t c ompeting r e g u l a t i o n s . L ondon i s t h e new f i n a n c i a l c a p i t a l o f the w o r l d . I f t h e r e s t o f t h e w o r l d i s s m a r t , t h e y w i l l r e c o g n i z e t h a t t h e r e g u l a t e d m arkets d i d n o t c ause t h i s n ightmare. I t was t h e u n r e g u l a t e d Investment Banks. C o r r e c t w hat i s w rong, d on't c r e a t e a m u l t i t u d e o f new a g e n c i e s making i t i m p o s s i b l e t o do a n y t h i n g s o e veryone l e a v e s . A mericans a r e a lways t h e i r w o r s t enemy. The r e s t o f t h e w o r l d s h o u l d l o o k c l o s e l y a nd l e a r n . ...
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