Bankers and Politicians Are Robbing People Everywhere

Before you shed tears for the plight of elite bankers, let this statement sink in:

Cyprus’ banking sector must shrink. As did Ireland’s, the hard way. What is essential, as every Irishman and woman will tell you, is that the politicians do not load up the weaker citizen’s/taxpayers’ shoulders with enormous debts on behalf of bankers that refuse to wither. Read more at http://www.nakedcapitalism.com/2013/03/yanis-varoufakis-while-waiting-for-cyprus-godot.html#dCKwchxGzzT2ljPx.99

Wall Street on Little Guy

That’s from Yanis Varoufakis, professor of economics at Athens University. It explains what’s going on throughout Europe in the United States.

Top bankers and politicians created a phony wealth system that crashed. Or is crashing. Instead of letting it crash and rebuilding on sound economics, the big bankers and politicians are a) loading us up with debt, or b) confiscating our savings.

The elites refuse to accept the consequences of their own failed system. Tyler Durden makes the point here on ZeroHedge.com:

Throughout all of this, the global elites have displayed consistently worsening signs of decadence, psychopathic tendencies, and overall detachment from reality.

The core problem here is that Westerners have ceded almost all political and economic power to the elites. Representative democracy was designed to prevent elites from accumulating power, but it only works if people hold onto their power jealously. Here’s how William F. Buckley put it in Up From Liberalism:

I will not cede more power to the state. I will not willingly cede more power to anyone, not to the state, not to General Motors, not to the CIO. I will hoard my power like a miser, resisting every effort to drain it away from me. I will then use my power as I see fit.

Buckley is dead, and so is his ethos.

Debt hasn’t diminished since the crisis began. It’s grown like an infected boil on the face of democracy.

As massive debts accumulate to governments and ever larger banks, the temptation among the elites to rob the rest of us grows stronger. And the longer we wait to pop this zit, the deadlier the pus explosion when it ruptures.

The Best Grilling Of Bernanke Came From Senator Elizabeth Warren And Republicans Should Be Ashamed

I agree with Republican Senator Corker that inflation is a danger in the future. But inflation doesn’t win the hearts and minds of most Americans right now. No one’s worried about it except economists and economics geeks.

The death of the community and regional bank, however, does bother people. As does the printing of money that goes straight into the 5 biggest banks in history . . . and stays there.

The US Government bailed out those 5 “too big to fail” banks in 2008 and it’s been propping them up with our money ever since. That was one of the driving forces behind the birth of the Tea Party movement in February 2009.

Four years later, the Fed, Congress, and the White House still support banks whose managers cannot operate at a profit. And the only Senator to point out the lunacy of this practice is a liberal Democrat from Massachusetts?

I realize that the Democrats are far worse practitioners of crony capitalism than the Republicans. That doesn’t excuse the GOP.

If the Republicans want people to see them as in-touch with the mood of the country, they should attack crony capitalism relentlessly. Republicans must advance sound macro economics, but they must also stress cases that win over voters. Future inflation won't do that, but crony capitalism will.

By failing to gage what messages will work, the GOP is in the odd position of standing for nothing while being perceived as too extreme.