“Too Big to Fail” will become “Too Big to Bail”

 A truly capitalist economy awards success in the marketplace primarily through competition and consumer choice. However, there are private institutions that are so embedded in the overall integrity of the system that they are deemed: “too big to fail.” This concept implies that many of the key players in the economy are not existing as truly private enterprises but rather are insured by the public sphere and by government debt and taxpayer money thus privatizing their profits and burdening the taxpayer with bailing them out when their reckless behavior inevitably backfires on them and on the rest of the economy. 

For there to be true efficiency in the free market all corporations, regardless of size, must be allowed to fail and suffer the economic consequences of their failed business policies and financial decisions. A market where high net worth participants are deemed “too big to fail” compromises the integrity of the entire economy and helps to further monopolize power and capital into the hands of incompetent and unproductive institutions. Small businesses do not receive such privileges particularly the middle class needless to say. 

This is no longer a free market; it is a market in which major private corporations operate outside of the constraints of consumer choice and competition and have formed a symbiotic/parasitic relationship with governments that removes their exposure to the natural marketplace conditions of risk and loss. These institutions operate more along the lines of criminal cabals than legitimate private corporations.

Too big to fail is a self fulfilling prophecy with each subsequent bust cycle serving to weaken the rest of the economy and strengthen the monopolies, thus actually incentivizing fraudulent and criminal behavior and blurring the lines between public and private institutions. The concept of too big to fail is thus a communist and authoritarian idea that is, at its core, an anti-American and anti-Populist concept, favoring the privileged political class at the expense of everyone else.

“Too big to fail” compromises the overall integrity of the marketplace and the independence of the free market from governmental and political corruption. As government debt continues to enable these systemic inefficiencies the disease of incompetence, irrationality and politicization infects the rest of the market as all businesses struggle to produce profit in a weaker debt-ridden economy, with global currencies that are universally debased at alarming rates.

These inefficient “zombie”corporations and banks are encumbering scientific and humanitarian progress, sucking up capital from productive citizens, committing fraud and taking wild risks with no fear of consequences because of their privileged bailout status. These debt enabled inefficiencies will magnify until the credit system itself collapses and finally the “too big to fail” becomes “too big to bail.” Total monetary collapse will eventually destroy the entire modern financial market as each bust cycle magnifies and the resulting bailouts become larger and larger until the nations reach the point of insolvency.

Capitalism and free markets benefit the middle class, encourage competition and produce innovation rather than stagnation, resulting in better quality products for lower prices. 

The systemic corruption that is typified in the “too big to fail” institutions, must be eradicated in order for capitalism and economic rationality to continue to exist. If these institutions cannot be reigned in the modern system of capital and credit will collapse and bring the financial world as we know it to an end. 

We need a plan of targeted and rationally-executed decentralization of the major “too big to fail institutions,” into smaller entities in a process that must take the better part of a decade to avoid total systemic collapse. The decentralization must not take place too quickly if a huge depression cycle is to be avoided as they are still too embedded in the overall integrity of the economy.

However, if this rational decentralization cannot occur then inevitably the global fiat bailout system must collapse and probably this will happen very rapidly and unexpectedly. 

Whether this collapse happens suddenly or slowly over the period of many years, regardless, free market capitalists and entrepreneurs must begin to create and encourage alternative currencies that can compete and exist in the shadows of the dying leviathan that is the debt-burdened global fiat based economy.

As the great beast dies, suffocated under its immense weight and grotesque excesses, the private and free market economy will preserve its capital and liquidity with decentralized currencies tied to gold and silver and organized under blockchain style technology that will replace fiat notes. Cache gold token (CGT) and other decentralized, transparent asset-based cryptocurrencies can provide the new liquidity and wealth preservation mechanism. 

With such alternative systems in place future bailouts by central banks to the political classes will come with serious consequences especially post-collapse since there will be free market systems with sound money in place as an alternative store of capital and mechanism of trade to the fiat notes or central bank cryptocurrencies. This pre-collapse shift in monetary capital from the massive debt-laden mainstream economy to alternative systems of liquidity will be a crucial step in ensuring some semblance of the free market survives the coming global currency collapse!

Decentralization must be the call of action post monetary collapse! There must be a private sector solution and alternative economy to compete and replace the dying globalist communist economy!