Cartels, Monopolies and Crony Capitalism
Today's new dominating business model.
John Rubino is quite blunt when he states:
"Crony Capitalism is now the dominate business model operating in the US! Most big corporations employ legions of lobbyists and throw millions of dollars at manipulating the political and regulatory process!"
Political office to his trained eye "has become nothing more than an extended job interview" for the high paying lobbyist jobs expected after leaving political office, financed by new corporate competitive strategies.
Rubino places the blame for this unintended consequence primarily on the policy of "Unsound Money" and a consumption based economy. John sees the banks and major corporations becoming more and more powerful to the extent that we no longer have separation. "We now have one big organization where the big organizations becomes dedicated to self preservation. Size and power is now the goal, not serving customers and not necessarily a honest process. They are doing this by taking advantage of the regulatory process."
He spells out why he believes a return to 'Sound Money" is the only way the process can be halted or reversed. The rate of expansion of government and the financialization of the economy suggests the situation is now so serious in the US that the only likely outcome will be a major financial and economic crisis. "It isn't a free market anymore!"
The clear goal of the current expanding monolithic government is nothing more than to "dole out more and more goodies to the people who are able to pay for those goodies!". Though he sincerely hopes the expected crisis will "right the ship", he is highly skeptical. History suggests otherwise to him.
The influence of corporations on government regulations to gain competitive advantage, risk avoidance and financial growth are being driven by the size of the government in the economy and increasing centralized control. Crony Capitalism as a consequence was therefore inevitable and expected by many - though highly undesirable by most.
"Money today is more and more made by people who place bets on the market and use regulations to move the markets in that direction, book a profit and move on. No real wealth is generated, only transferred."
Unfortunately, there are no counter-forces except public awareness and their organized attempts to stop it!
Video: Cartles, Monopolies and Crony Capitalists
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