Dog Catches Tail Swallows It and Dies

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On the Failure of Capitalism and the Demise of Democracy

Commentary: The utter failure of Smith's "invisible hand"—has left a deficit of trust—trust—upon which the market depends for their very existence—and that lack of trust has severely undermined the entire world economic system.

The leading proponents of "unregulated free market capitalism"—have failed to realize or have blindly denied that failure—or, even acknowledge that it was due to "a flaw" in Smith's theory.

Which states that: "no regulation of any type—would be needed to ensure the mutually beneficial exchange of goods and services took place, since this "invisible hand" would guide market participants to trade in the most mutually beneficial manner." Source Adam Smith

The last phrase "mutual benefit" requires faith—which is to say—"a trust"—that each individual is acting with absolute integrity.

How can anyone be trusted when they fail to even admit their failure of integrity. Where is the integrity in that omission? There is—no integrity, hence there is—no trust.

Trust is the first thing lost when people are cheated. And the very last thing restored—but ever so slowly and never completely regained. And even that is not possible when there is continued failure to be honest.

Yet, these "unregulated free market" capitalist zealots furiously cling to the obviously absurd idea—that the down turn is due to—Obama,—overbearing government regulation's,—and of course high taxes,—which accounts, "entirely" for the slow recovery.

Nothing they did is ever the source of the problem. They don't even mention G-dubya-B because they know it was a Republican administration that caused the mess—and they were all part of rubber stamping his policies.

They are like a drunken card player with a maniacal need to bet, double down, on a hand that has already been proven a loser; which is a weaker government through tax cuts, and more deregulation.

Here we are three years later and the Republicans are pushing the same medicine that nearly killed us after eight years of their tax cutting binge left us broke and deeply divided, their entire goal is to defeat Obama—not help the economy recover—not create jobs—so they can reapply the same failed policies.

Insanity is doing the same thing repeatedly and expecting different results.

Like a dog chasing its tail—their ludicrous circular logic is on its face staggering—in light of the monumental failure which deregulation caused—along with it the abandonment of concern for moral hazard—in light of their arrogant, euphoric confidence in their own invincibility. Are they stupid? Are they in denial? Or do they have ulterior motives to destroy this Democratic Republic? Because their illogical rationales don't make any sense.

What sane person would argue for deregulation of traffic laws, yet that is exactly where the "unregulated free markets" libertarian argument leads in its extremes—anarchy.

Attitudes lead to choices—choices lead to paths of behavior—paths of behavior lead to actions—actions lead consequences—consequences lead to results. This is not a new idea. It is a reality born of the collective human experience, and one that every caring parent tries to instill in their children.

Their attitude of arrogance; led to choosing; to deregulate banking—deregulation led to the behavior—of ignoring moral hazard and extreme risk taking—extreme risk taking led to creating credit default swaps—credit default swaps led to a total market default—Consequence: failure of the market—and the loss of trust.

The hollow mantras of the radical rights' call for "personal responsibility" is laughable. Where is there even one advocate of their failed theory—standing up and taking responsibility for its failure?

Not one, other than, a mealy mouthed Alan Greenspan who offered a thinly parsed response during a Congressional hearing—by saying: “...I’ve found a flaw. I don’t know how significant or permanent it is. But I’ve been very distressed by that fact.” And later said: “Those of us who have looked to the self-interest of lending institutions to protect shareholders’ equity, myself included, are in a state of shocked disbelief”

Really?—A flaw that took down the entire world economy and he doesn't know how significant? He is distressed? My question is he insane?

Really?—He's shocked that people are not just—greedy—but, that they are—shockingly greedy—when it comes to money and unregulated power. What is really shocking is his total lack of remorse, sense of shame and his utter naivete'.

And now, given the four year time span—even the unrepentant Mr Greenspan has regained his utter faith in deregulation.

And what is their behavior in the wake of the havoc they inflicted? It is to adamantly cling to their discredited theory and continue their shameful behavior and call for—more deregulation—a weaker government that will be unable to stop them—and more tax relief for "the poor overburdened job creating" plutocracy—who don't create jobs.

Add to that the disturbing trend of these, "small government, privatizing, deregulators"—who want to—"regulate,"—our sex lives—"regulate," our ability to vote—"regulate," unions and our right to bargain collectively—"regulate" our access to medical care—and "regulate" our educational choices—and the inevitable demise of this Democratic Republic—called America—is not far behind.

If Americans haven't been awakened by now—and the Republicans—either gain the Senate or the Presidency—Americans will deserve the future that befalls it come November.