Credible Anarchy

Over at the Cobden Centre a correspondent notes world banking can be compared to one quart of sewage mixed with 3 quarts of milk to yield 4 quarts of sewage.  Apt, that.  To which I reply:


Four Quarts of Sewage

Well, who put in the sewage?

When a bank robber has done his job, the banker and many depositors are chagrined.  Who is happy?  Why, the bank robber!  But he must be very, very quiet, or he will be beset with outraged depositors and apoplectic bankers.

To mix the metaphors, the problem with the quart of sewage in the gallon milk pail is there is a paper trail as to who deposited the sewage into the pail.  Anglophone bankers in general and American in particular are the culprits. Sure German and Greek bankers alike fed at the trough, but they were educated in “banking” by the anglophone bankers, mostly at Goldman Sachs, if not the LSE.  Bank robbers are a charismatic lot, and if they dominate banking, serious men find other work and the field is left to adoring clerks.

The transaction tax, a threat to ruin the London exchange, is blackmail, which is usually the first threat a bank robber encounters as people figure out whodunnit.   At some point the world will get around to Wall Street. Bank robbing bankers and their ganymede politicians  (Barney Frank is slipping out of town) are subject to blackmail.  Right now they can get us to pay.

Along with the yeoman work of defining terms should come the herculean task of specific recommendations on how to manage the unwinding of the crisis.  Since the economy involves everyone, recommendations for reform are desultory without a plan to sort out the present mess.

The masses look to politics for relief, and we vote in “change” but only of dramatis personae, not policy.  Presently the policy is “taxpayers will pay.”  The false dilemma is taxpayers pay or the economic system crashes. The true alternatives are claw back and disgorgement instead of taxes and inflation.  Yes, with claw back and disgorgement AN economic system will fail, the obnoxious present system, but not THE economic system, the 3 quarts of milk.

Banker George Soros is profiting wildly at present on home loan financial shenanigans as he finances the homeless Occupy Wall Street crowd.   He is betting that people believe they have no alternative, so on he goes.  But there is an alternative.  We can withdraw our consent to be governed.  Mention that, and Cameron, Obama & Co warn that way lies Somalia!  No, that way lies Hong Kong, where a trio of private companies issue the currency, as once was in these climes.

Part of the project of reform must be a credible option to dismantle government.  Once banking is defined and clarified, then also demonstrate how government need not be involved.  If not, then nothing will change.  If so, the political class will through a George Soros under the bus and ply free marketers with what we may want.

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