No punishment is problem
Two recent guest commentaries, "Capitalism not democracy and democracy not capitalism," published Oct. 18, and "Checks on capitalism, government," Oct. 25, are well thought out and presented, but miss some fundamental realities.
From day one, Thomas Jefferson acknowledged that we have certain unalienable rights, among these being the right to life, liberty and the pursuit of happiness "…that to secure these rights, governments are instituted among men…"
This is why government establishes laws to punish theft and fraud while providing a mechanism to enforce contracts and protect property rights in a free-market system. Any government falling short of that in a market is impotent, exceeding that is tyrannical. The loss of this awareness causes us to rail against the free market, whereas the real problem is lack of punishment for theft and fraud and lack of recourse when contracts are breached.
For example, Federal Deposit Insurance Corp. is supposed to shut banks down before liabilities exceed assets, yet they have not and this is why FDIC will run a deficit until at least 2012. The Securities and Exchange Commission granted a slew of 23a exemption letters, allowing banks to lie about their assets, defraud shareholders and put depositors at great risk.
As a response to those railing against the free market, Congress decided to impair the obligation of contracts and work with the Federal Reserve to conceal the fraud. Congress and the Federal Reserve also issued cheap credit and backing to fraudulently created mortgages, which in turn caused the housing bubble.
All other regulators, such as the Food and Drug Administration, Environmental Protection Agency and Federal Communications Commission, among many others, suffer from a phenomenon known as "deep capture," wherein the regulated operate the regulators. These agencies operate a revolving door between government and a who's who among industry giants. Large corporate influences using government to cement their own monopolies isn't new; the phenomenon was accurately characterized in Ret. Gen. Smedley Butler's "War is a Racket," specifically its influence on foreign policy.
Not only did the very founding of the Federal Reserve operate under a similar design, which was well documented after its creation, but it too had the same objective. Health insurers are using the same trick with health care reform. Insurers are condemning it to make us think it's not the mother of all corporate giveaways.
Yet, we wonder why Lehman Brothers was allowed to fail as Goldman Sachs alumni ran the U.S. Treasury and the New York Federal Reserve. These are the same people behind cap and trade, which has nothing to do with the environment and everything to do with creating a carbon offset bubble. You can expect them to do the same thing they did with oil and tech stocks, then sell off before anyone figures out what happened. Unfortunately, they spent TARP money to corner most carbon offsets, a commodity created by, for and of Goldman Sachs.
Despite examples too numerous to mention here, the Constitution, when followed, served as a bulwark against such widespread abuse on the public at large. Until this realization occurs and is acted upon, the solutions of both major parties and the interests who run them will evince the design of mass looting under the guise of "helping the poor," "saving the environment," "defending freedom" or similar ruses.
<i>Dan Reale lives in Plainfield and has run as a Libertarian Party candidate for Congress in the 2nd District.</i>