Do Regulators Know Who the SIFIs Are? ... A little-noticed sentence in the 93-page regulation top U.S. regulators approved last week suggests officials could be well down the path to figuring out which firms pose a threat to the financial system. Under Dodd-Frank, regulators must pick out which financial firms — other than banks — are so big, complex, and interconnected that they warrant tougher oversight because their failure could rock the wider system. Last week, regulators comprising the so-called Financial Stability Oversight Council finalized the three-stage process they'll use to identify which hedge funds, insurers, private equity firms and other nonbanks deserve the designation. (Banks with at least $50 billion in assets automatically get slapped with tougher oversight.) Here's the key line: "Based on data currently available to the Council through existing public and regulatory sources, the Council has estimated that fewer than 50 nonbank financial companies meet the Stage 1 thresholds." – Wall Street Journal
Dominant Social Theme: These Too-Big-Fail corporations and financial firms must be supported by the government and by the people's taxes.
Free-Market Analysis: It used to be in the US that you were on your own, at least when it came to building a business. If it succeeded, great – if not, then ... too bad.
But not anymore. Now there are too-big-too-fail companies that are so designated by the US regulatory authorities. These are companies that must be supported by the US taxpayer because if they topple, the system as it is currently positioned will topple, too.
This is merely an expansion of the US ideology of empire, so it can't be too surprising. But nonetheless it is further unwelcome evidence that the US has in a sene passed the point of no return. Ther tipping point has been reached. The rulers have seized the initiative. The ruled are being despoiled.
The best thing that could happen now would be for the system to essentially disintegrate. It will anyway. Why prolong the agony?
We encourage the toppling ... metaphorically, not violently. It is not that we wish havoc for America or the West but we see a real crisis as the only way to move the West toward sanity again and away from the global governance seemingly sought by the elites.
One could argue that chaos is what the elites want – because out of chaos comes order ... a New World Order. But the elites, in our view, want chaos that is controlled on their terms.
These dynastic families and their enablers and associates apparently control central banking around the world and want to create global government. They use mercantilism – passing laws and regulations that aid their control – to ensure that events move in a certain direction. We've taken to calling this directed history.
The power elite has created the current financial system, in our view, and controls government and regulators as well. They do not want the current system to founder and fail.
But the current system is THEIR system, designed to maximize control and move the world toward global government. The too-big-to-fail approach is basically a dominant social theme.
The elites use these memes to frighten middle classes into giving up power and wealth to specially designed international facilities the elites control. But now they are taking it a step further. Having caused a rolling economic depression in the West, the elites now propound the theme that society as a whole must support its purposefully failing institutions.
The same toxic mix of regulators, central banks and financial firms that created the economic mess are now to conspire together to ensure that the worst of the failing institutions are to be propped up at any cost.
This is, in fact, a kind of communism. It is beyond fascism, even. The state is not merely merging its authority with private enterprise; it is basically taking over these entities in a regulatory way. There shall be a fundamental blurring between regulatory and private market lines.