thedailybell.com / By Staff Report / January 28, 2013
Breaking Up the Big Banks is Not a Solution: Make Them Public Utilities … Leo Panitch: Global capitalism needs massive banks, but big private banks have the power to prevent regulation and threaten more crisis; the solution is not breaking them up but making them public – The Real News
Dominant Social Theme: Since we can’t regulate these too-big-to-fail banks, let’s nationalize ‘em.
Free-Market Analysis: Leo Panitch has the idea that because “private banking” is not working very well, banks ought to be turned into purely public facilities. Say what?
In our humble view, this is akin to the neo-Nazi idea of late that has to do with nationalizing central banking in order to ensure that the “people” gain maximum advantage from the debasement of their money. Didn’t the USSR try something like this?
Where do they get these guys? What planet, exactly, do they live on? The power elite that wants to run the world – formally as opposed to informally – delights in the idea that the gullible public will attempt to remove its influence by moving Money Power to the public sphere. So why are they encouraging it?
Since Money Power thrives on mercantilism – using government for private purposes – more government and more public power suits the elites just fine. One can make the argument that those advancing these solutions are actively working on behalf of the same Money Power they purport to despise.
The concept does have one advantage: It is simple. The idea that fiat money systems can somehow be made better if their destructive attributes are wielded by “the people” rather than “the banksters” is a beguiling one for those who don’t understand economic history, or purposefully misconstrue it.