It seems that everything the government does to fix the economy only makes matters worse. Why? Because they are trying to sustain a moribund system of money, banking, and finance. The recent passage of a “financial reform” measure by Congress, while hailed as a measure to prevent a recurrence of the abuses of the recent past, will do nothing of the kind. In fact, it will enable them to continue and will further strengthen the huge financial institutions that have been robbing the American people.
Peter Schiff has a better understanding of the situation than most financial pundits. While even he does not seem to get quite to the root of what ails our economy and our society, his insights go deeper than most. He offers three reasons why the new law will fail do achieve its stated purpose:
1. The bill doesn’t get to the root causes of the crisis.
2. The law fails to end ‘Too Big to Fail.’
3. More regulation means higher costs for smaller financial services firms, reducing competition.
He explains this in this brief video.
I have pointed out in my books and writings that the very nature of the money creation process is at fault. The creation of money by banks on the basis of interest-bearing debt creates a “debt imperative,” which in turn creates an economic “growth imperative.” Since the physical limits to growth have been reached on planet Earth, this money system cannot be sustained, yet every action by the governments of the developed nations attempts to do just that.
The crisis will continue to deepen until people create parallel decentralized systems of exchange (money) and finance that enhance the vitality of their communities and local economies. –t.h.g.