"Unequal enforcement of the law will distort and destroy any capitalist society, and we may be witnessing just such a downward spiral in the financial sector. Capitalism is not an abstract idea. It is an economic system with a distinct set of underlying principles that must exist in order for the system to work. One of these principles is equal justice. In its absence, parties will stop entering into transactions that create overall wealth for our society. Justice must be blind so that both parties — whether weak or powerful — can assume that an agreement between them will be equally enforced by the courts.
There is a second, perhaps even more fundamental, reason that equal justice is essential for capitalism to work. When unequal justice prevails, the party that does not need to follow the law has a distinct competitive advantage. A corporation that knowingly breaks the law will find ways to profit through illegal means that are not available to competitors. As a consequence, the competitive playing field is biased toward the company that does not need to follow the rules.
The net result of unequal justice is likely to be the destruction of the overall wealth of our society. I don’t mean the wealth of individuals; I mean the total wealth of goods and services that are the benefits of healthy competition. To the extent that unequal justice prevails, entities that are exempt from the laws will, in all likelihood, be more profitable than law abiding competitors. Then they use their profits to further weaken competitors by using their illegal profits to further build their businesses at the expense of competitors. All of this business building activity is based on a foundation of sand, and ultimately the entire industry — or even the larger economy — becomes distorted. The 'rogue' company gains power, changes markets, and destroys direct and indirect competitors because it is playing by different rules."
Bruce Judson, For Capitalism to Survive, Crime Must Not Pay, April 12, 2012
"Back in December of 2012, when it was proved in U.S. court that billions of dollars of drug money had been laundered through HSBC and yet somehow it was also found that HSBC was NOT guilty of laundering and neither was anyone in the bank, there was an outcry.
Who in the bank knew about this? Evidence uncovered by investigations into HSBC’s activities revealed, 'senior bank officials were complicit in the illegal activity.'
In the UK it was noted that during the time the laundering was going on, the chief executive of HSBC in 2003 who then became its chairman in 2006, was Lord Green, who is now the UK trade minister. So obviously no great concern to get to any truth about HSBC, in the hierarchy of the UK establishment.
Senator Elizabeth Warren asked, 'So what does it take? How many billions of dollars do you have to launder for drug lords and how many economic sanctions do you have to violate before someone will consider shutting down a financial institution like this?'
Warren’s question, ‘What does it take?’ was finally answered by U.S. Attorney General Eric Holder in March 2013, when he told the U.S. Judiciary Committee that the Justice department had decided not to pursue any criminal prosecution of HSBC. The U.S. Justice Department felt it could not criminally prosecute the bank because a criminal conviction would mean the bank would lose its license to bank in the US which would kill it and a whole range of other institutions, which the bank relies on to buy its debts and its investment products would be prohibited from doing so as soon as the bank was deemed to be criminal.
Twenty-eight banks are officially above the law and WILL NOT be criminally prosecuted no matter what they do. Remember that’s not me saying this. It is the U.S. Department of Justice saying it.
Not only twenty-eight banks but all their senior executives, chairman/woman and board members. It would be very difficult to find a senior person in a bank to be criminally guilty but yet not find the institution guilty. So we could compile a list of people who are now, at least as concerns any financial and professional actions, also above the law.
When we say a bank is above the law, not only should we remember that this means specific people are above the law (at least in how they make money) but we should also remember that this also means the assets in those banks are above the law. This means if a banks does things which are illegal but lucrative – such as laundering money in order to get the use of those laundered billions to then use them as, lets say, capital to underpin loans or for speculating, for example, and by doing those illegal things it makes out sized profits for its shareholders and staff, that money, those profits are also above the law.
Since the bank and its senior staff are above the law and breaking the law is profitable, a) no one has an interest to say no, b) shareholders and staff will directly benefit from breaking the law. They will make more money by participating in law breaking or by investing in a bank which is law breaking. They will, in fact have an interest making sure it continues."
Golem XIV, The Twilight of Justice, March 2013
"Let your love be sincere. Hate what is evil, and hold on to what is good. Love one another with with the love of a family. Be an example in showing respect to others. Do not be neglectful in your service, but enthusiastic in spirit, as a servant of the Lord. Rejoice in hope; be patient in suffering, and faithful in prayer. Contribute to the needs of the holy ones, and provide hospitality to strangers.
Bless those who provoke you. Pray for them, and do not curse them. Rejoice with those who rejoice; weep with those who weep. Live in harmony with one another. Do not be arrogant, but associate with the humble. Do not claim to be wiser than you are. Do not repay anyone evil for evil, but have a regard for what is good in the sight of all. If it is possible, as best as you can, live peaceably with all. Friends, never avenge yourselves, but leave room for the judgement of God, for it is written, 'Vengeance is mine, and I will do justice, says the Lord.'”
Romans 12:9-19
Stocks managed to extend their rally and edged a little higher.
This has the hallmarks of a squeeze on those who took cash or short positions as a result of the new hostilities in the Mideast.
VIX continues to wallow with its MACD histogram now at a low for the year.
Gold and silver endured a major bear raid this morning, no doubt led by the bullion banks and their cronies.
The Banks are the dreadnoughts in the ongoing financial and currency wars.
Speaking of gold, analyst Jan Nieuwenhuijs believes that the People's Bank of China is covertly buying large amounts of gold in preprartion for a change in the global monetary structure. You can read the full article here.
"The PBoC is in a hurry to buy enormous amounts of gold, indicating it’s preparing for substantial changes in the dollar-centric international monetary system.
Based on information from industry sources and my personal calculations, total gold purchases by the Chinese central bank (reported and unreported) in Q3 accounted for 179 tonnes. Year-to-date the PBoC bought 593 tonnes, which is 80% more than what it bought in the first three quarters last year. Its total estimated gold holdings are 5,220 tonnes, more than twice what’s officially disclosed at 2,192 tonnes.
The movement towards gold by central banks is showing no sign of slowing down. Mainly the Chinese central bank is on a voracious buying spree since 2022, and it’s obtaining way more metal than what is officially reported."
I think we're going to need a bigger boat.
The big, tectonic changes happen slowly, gradually, and then like an avalanche or earthquake of revelation, all at once.
Have a pleasant evening.
