Sad Tale of the New York Fed and Goldman Sachs Has a Simple Solution

Well, the spinmeisters are out in force. It’s predictable.
A young woman has taped conversations between Goldman Sachs and the New York Fed apparently showing clear collusion -and the articles are already spewing forth on how the system is terribly corrupt and needs a regulatory overhaul. But the system doesn’t need a regulatory overhaul.
The system needs FEWER regulations and a significant discussion about the founding laws of Western nation-states. Even in this day and age very few, unfortunately, understand the anti-competitive system that most Western governments via their respective judiciaries and legislatures have put into place.
There are two main elements of support for the current system, so far as I can tell, certainly in the West: monopoly central banking and corporate personhood.
Monopoly central banking concentrates decisions on the value and volume of money in the hands of a few. Corporate personhood allows individuals running large companies to avoid responsibility for their actions. I suppose I should add a third element into the mix … patent law and copyright.
Corporate largeness inevitably generates government partnerships. This means that modern Western societies are mercantilist – run by a handful of individuals who circulate between the top posts of government and the leadership of private-sector multinationals.
Within this context it is not surprising to find that the New York Fed is an ineffective regulator of the financial powerhouse Goldman Sachs. The process is called “regulatory capture” and we’ve mentioned it numerous times in the past few years when describing the reality of regulatory democracy.

This post was published at The Daily Bell on September 27, 2014.