Publicani

Q. Are you against any government regulation of banks?

A. I am against Federal Government regulations.  States could do whatever they want.

Q. Why are you against the federal regulations?

A. Because if they are wrong (and they often if not always are) they can bring the entire country down.

Q. What is wrong with the current regulation of banks?

A. Money is a product that can be saved, created, bought and sold, the same as potato. We created federal monopoly on production of this particular product and we regulate its price. This way money could be passed to the special interest under the disguise of a loan. If the true price, the market price of the loan is much higher, it’s not as apparent but is equivalent to passing money from taxpayers to special interest for help in reelection, future jobs, and consulting fees for politicians and members of their families. Such practice of legalized theft of taxpayers money  is the main source of politicians power.

Q. But everybody agrees that current regulation will decrease systemic risk?

A. Not everybody. I coauthored a paper that proves that any regulation of risk increases risk.

Q. Maybe we just need global financial regulation?

A. No, global regulation just increases the risk, the same way as federal regulation increased the risk compared to the state regulation. And it also helps politicians to redistribute money from taxpayers to politicians global special interests. This is often done not as a loan but as a swap. We’re making swaps in trillions of dollars for euros. The word “swap”sounds innocently enough, as if it is a fair exchange. Only few people understand that any swap has a price, and because our counterparty enters in a swap with us, it means we offer it for a cheaper price. With this swaps and loans from IMF we are channeling American taxpayers money in 100′s of billions to special interests around the Globe.