Gaming With Too Big to Fail

We will see the oversized financial firms being compensated by the public sector for wrecking the economy bargain to have it all their way with the threat of not participating in the government programs, or threatening to wreck it even more. That is what organizing to be too big to fail is for--to have it all your way. To be a tyrant.

Considering that "too big to fail" means they are indispensable, it is nothing but extortion. The fraud and abuse we have come to expect from these unexpendable economic entities is apparently not enough to demonstrate the extent of corporate hegemony.

Fascism is not the acceptable alternative to the threat of socialism.

What is too big to fail is easily cured with the public sector operating to ensure a free and unconsolidated marketplace in priority, the antithesis of "too big to fail." Fascism or socialism (another false binomial choice in which to toggle) is not the only alternative. The government action will not be ex-post-facto, it will not be a bill of attainder to punish corporates that have organized to get away with fraud, abuse and extortion. The progressive tax code needed to finance the third alternative will be to pluralize and destroy the tyranny that plagues The People.

The lack of action to progress the tax code renders the Obama administration's Keynesian stimulus plan equally unstimulating because it depreciates the value of the dollar. Energy and food prices will rise with a depreciating dollar, deflating the economy, what the stimulus spending is supposed to cure.

Understand that being able to dictate the cause-effect relationship of the dollar's value coupled with consumer prices is accomplished by organizing to be too big to fail, mainly by being able to restrict supply and thereby determine demand (deflation).

Being too big to fail does not suffer from deflation. It is a winner on the up cycle and the down cycle. It is being too small to survive that incurs all the detriment, and that detriment is consolidated into the benefit of being able to dictate the relationship, the ability to assess the value, control the bid, of commodities and currencies.

Ensuring the competitive multiplicity of the marketplace, financed with a progressive tax code across all jurisdictions, in priority cures this organizational problem of being too big to fail. The economy is then dominated by small firms with highly adaptable and innovative efficiencies that are as much concerned with low prices, full employment and adding supply (a strong dollar) by default of the system than just making a profit and deflating the economy by default.

Large, too-big-to-fail corporates benefit from deflation. It is profitable. It strengthens the ability to tyrannize the marketplace. The favorable terms for the corporate to be offered by treasury secretary, Geitner to recapitalize the financial market is a demonstration of "success" of the business model that Federal Reserve chairman, Bernanke describes as inimical but inevitable. Tyranny is the efficiency that a consolidated and collusive corporate achieves (and that can be a socialist legitimacy as well) at the expense of all other efficiencies.

Arguing that the large size, and big profits, of the large corporate allows for risk taking that would not otherwise occur, providing productive and innovative efficiency that only organizing to be too big to fail can provide, is an empirically nulled hypothesis. Maintaining the argument at this point is just a lie intended to conserve the means of tyranny (the elitist model of power and political economy).

The treasury secretary's plan to recapitalize "too big to fail" (remember, huge profits were made and converted into private equity before big financial firms "failed" with the probability of global economic collapse, which means that they--what is inimical--really should be allowed to fail) will be a demonstration of the power of the corporate that will confirm by false induction the Hamiltonian model as the only possible alternative: the private sector's too-big-to-fail corporate structure trumps the value of government (the sovereignty of The People). The empirical measure of superior value will be the assessed value of return on investment for one private enterprise dollar over a government (The People's) dollar. According to Geitner's plan, "The Public-Private Investment Program," The People's dollar only has a fraction of the value a hedge-fund, private-equity dollar of the private sector. The value of the private sector's dollar is considered, and validated, as supra-sovereign, and in the same way, as Nietzsche describes it, the inexorable "will to power" that is "beyond good and evil."

The difference between the public and private sector's return on the investment is the reward, the vigorish, of the will to power (to organize to be too big to fail). The struggle for political-economic dominance, hegemony of power, is the reason for being and existence again being played out and verified by the gaming we see now in progress. If we want to be verified existential moral deficients, we buy into this philosophical construct and practical modeling of power.

If we want to ensure the good life (a moral existence), we should try the third alternative: ensuring the competitive multiplicity of the marketplace, financed with a progressive tax code across all jurisdictions, in priority to cure the organizational problem of being too big to fail.