Banking: A Government Casino Game

The U.S. achieved prosperity through open competition.

During the past 25 plus years, unbalanced government trade actions have resulted in off-shoring significant productive and service sector activities and the loss of millions of jobs.

The loss of jobs has resulted in a reduction of taxes and fees collected at all levels of government and lead to significant layoffs in education and other fields of public service.

When the cost of unemployment insurance payments and other support provided by the government is added to the resultant trade deficit, the real cost of imported products and services can exceed the cost of domestically produced products and services.

This creates a chain reaction of lower tax revenues collected and decreased investment activities by citizens. To be blunt, government prints money because citizens and small business can’t earn sufficient income to pay taxes, invest in banking, business and support government programs.

Government is the hog at the trough via unbalanced trade created by government policy.

Now the nation is faced with another hostile action by government that states “Banks should think about becoming smaller.”  It would be good for those pursuing this logic to understand that U.S. banks are competing in a global environment, and not only in the domestic market.

Recall that it has been government policy since 1978 that has resulted in three financial crises, all of which have cost the citizens dearly.

Note: The U.S. has only one bank in the top ten in the world. If government continues down this path there may be another big bust ahead.

Just Saying: Is the Fed curtailing the purchase of domestic debt in order to purchase debt of failing European economies with the objective of keeping them afloat? Just Saying!

Posted in Tidbits.