Wednesday, 3 August 2016

Karl Denninger - Only Way Out is Stop Lawlessness Top to Bottom

The latest is called “America is Doomed Without Restoring the Rule of Law-Karl Denninger.” Trader and entrepreneur Karl Denninger has a dire warning. He basically says if there is lawlessness at the top of society, there will be lawlessness at the bottom. Denninger, who is so distraught he has suspended writing on his popular website, explains, “It is illegal for any entity with market power or anybody else to price fix. It is illegal to price commodities of like, mind and quantity in the market place. That is a federal law, and violations of these laws are not civil affairs, they’re felonies. . . . The only deterrents for corporations against bad behaviour is people go to jail or the firm has its charter revoked because it runs out of money. The reason that is the case is as long as I can pay a fine and shift the cost onto the customers or shareholders or both, there is not deterrent—at all. . . . When does a CEO ever get indicted? When do members of the board ever get indicted? The answer is never.”

In closing, Denninger says, “If we don’t cut this out and start looking at the rule of law as meaning something again, I don’t see how we get out of this. The only way out of this box is to stop the lawlessness and let entrepreneurial people come in and find the technological innovations that drive the recovery. . . . Lack of the rule of law means America is doomed unless we change it.”

Apart from lawlessness, Denninger raises a great point that poverty can be lessened with internal production and growth of consumer economies within individual countries. Each country has to help themselves to a large degree.

He also talks about the problems with 'exponential' growth and an out-of-control public sector. Tax monies come from private enterprise. A public sector that has bigger expenses than the revenue gained from private enterprise will have to contract.

There are so many key issues raised by Denninger here. Please watch this.

[Posted at the SpookyWeather blog, August 3rd, 2016.]

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