Matt Taibbi and PIMCO’s Bill Gross dance around the conclusion from different perspectives.
In “Why Didn’t The SEC Catch Madoff? It Might Have Been Policy Not To” Matt Taibbi highlights the aberrant succession of events that was allowed to happen despite the warnings from industry insiders and the sheer amount of operational red flags Madoff had raised.
In “Wounded Heart” Bill Gross reflects on the sheer aberration of Fed’s actions and finds that it is actually part of the problem rather than the solution.
Other luminaries of finance have also danced around the issue.
The truth is of course, that once this particular monetary system is imposed, there can be no other outcome than what is being noticed by Msrs. Taibbi and Gross.
As an entity successfully imposes by coercion on society one particular variety of money and, simultaneously replaces the notion of capital with debt, the outcome is dialed in. In time, not only does profit gradually drain from society to concentrate in the finance industry but savings are depleted as government must arithmetically become the largest actor in the economy. This dynamic is driven by the diminishing marginal efficiency of debt which devalues the currency. As the currency loses traction, government must necessarily intervene in the economy at ever greater and deeper degrees to compensate the loss of traction.
On the road to becoming the largest actor in the economy, government has a vested interest in initially tolerating certain illicit behavior. But as the efficiency of debt is eroded further, government needs to progressively disregard egregious behavior till it must necessarily solicit it and, finally, collaborate in criminal behavior (i.e. MFGlobal and Cyprus).
It is all a direct ramification of allowing this particular monetary system to be imposed. A monetary system that was never voted upon or that was otherwise never submitted to the people to accept or reject.