Banking Drives the Markets

As any casual observer will note, there is a great deal of commentary afloat regarding financial reform however conspicuous by its absence is any measure of meaningful and strategic discourse.  Interesting as the subject may be, still behind the political chicanery of Democrat vs. Republican are the respective interests working both sides of the aisle toward a predetermined goal.  Course Title: Political-Economics 101 – American Style! 

I coined a rather unique phrase for this process and I discuss the concept at great length in the Blind-Vision 3 Volume Series; the concept to which I refer is Legislative-Coercion.  It’s a wonderful process whereby influential forces craft a preferential outcome through the use of the legislative process. 

This process is not necessarily new however in the U.S., the people have long thought that our system of government was above this sort of selective bias after all, “We hold these truths to be self-evident….” or so we believed.  The social landscape of this country is clearly approaching the point were its adhesive properties are beginning to show the strain – judging form the various approval ratings one should hold little doubt as the truth of this observation. 

However, this is quite beside the point isn’t it.  What is, however, precisely the point is that from the creation of the Federal Reserve right on down to the present day series of seemingly unending Bank Failures which, since 2008, number 192 (U.S. Treasury Department) there is a distinct cause and effect relationship that has become integral to the process.  Add to this the various debacles driven by the so-called Financial Market Meltdown that includes contributing effect from the likes of, to name but a few, Goldman-Sachs, AIG, Lehman, Merrill-Lynch, Bank of America, Credit Suisse, Deutsche Bank, JP Morgan-Chase and so on and clearly one should peak with intrigued. 

Intrigued, to say the least!  Curious, perhaps, would be the more appropriate word.  Here are a few questions that run through my mind, perhaps yours as well: 

  1. Why is it that the “financial markets”, being such a critical component of the fiscal practices of this country, are permitted to function like feral dogs?
  2. Why is it that with such a massive financial black-hole, such as the one created by these institutions, does it make sense that they should be the very ones posturing or otherwise preying upon the Government offering their expertise in crafting new regulations?  By the way, the Bank of International Settlements (BIS) in Switzerland places the total expanse of derivatives notional value at just under $1,500 Trillion Dollars.  Yes, that’s One Thousand, Five Hundred Trillion Dollars!  Moreover,
  3. What does it say about a Government that would even consider allowing these individuals at the table? 

How is this possible?  Simply this: A concept I refer to as Selective-Indifference and none more conspicuous an example than the recent pronouncement by Rep. Anna Eshoo of California who has taken it upon herself to propose legislation requiring the U.S. Government to reimburse 40 some odd municipalities for the losses these entities sustained as a result of the financial bedlam that has and continues to take place. 

It might be reasonable for one to query: I’m not sure I understand the connection?  You are so right and that’s part of the masterpiece that is contemporary government.  It uses a form of psychology that is unique to its amorphic preferences and I’ve created yet another concept to identify it: Shadow-Marketing

The point is, as Representative Eshoo wonderfully demonstrates, that when you can define the domain that you operate in one also possess the liberty to define how, when, where, why and to whom it may, selectively, apply as well as for whatever reason you, selectively, determine it to be.  It works so well and so pervasively, primarily, as no other legislators dare protest because in doing so they risk affecting their own ability to participate in the very same process. After all, in the asylum, everything appears perfectly normal.  The perfect Flat-Earth Idolatry

I was asked recently to comment on my recommendations for addressing Fiscal Policy and the individual asking the question was, to place it in the appropriate context, referring specifically to the Federal/State Governments. I simply replied: You must first address Banking Policy after all, Banking drives the markets of fiscal policy and not the reverse.  Government, as it is practiced today, is the servant of fiscal (banking) interests and to most, this point is patently clear. The truth of this statement is equaled only by the extent and/or extremes to which Financial Influences affect the legislative process which, as it presently is, serves its masters quite well. The major problem, one might ask, with this process is simply this: You aren’t the Master. Perhaps even worse is that your Legislators not only do not control the process, they do not understand the construct of that which they legislate. 

The only solution is to deliberately and cogently confine Banking to the business of Banking and anything short of this will only set the stage for further and perpetual chaos.  I am of the opinion that if we consider the historical progression of Banking and Financial Services penetration throughout the economic, legislative and social structure of any nation it is only fair to suggest that the current state of affairs is but a window of opportunity to not only make the process permanent, but to extend its influences to a unified and global mechanism.  And then, 

We will all truly be the equal among the masses as servants of the Masters!  Welcome to the Next New World Asylum, be patient, after a while it will all seem perfectly normal. 

“There’s always the right answer lying in wait for the question that all too often remains silent!” 

Don’t just ask a question. Demand the answer. Then insist on action! 

Curtis C. Greco, Founder

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