What if there was no money-printing backstop for the banking system? How many banks could survive in an honest money, no-bailout regime? These questions are again being asked as banks fail, but absent elimination of the state-sponsored banking cartel and the Federal Reserve, the answers are going to be just as unsatisfactory as they were the last time. From Llewellyn H. Rockwell, Jr. at lewrockwell.com:
On May 1, government bank officials sold Republic Bank to JP Morgan Chase, the largest bank in the country. Even the New York Times report about the sale recognized that the normal rules had been suspended when the interests of the big government-big bank cabal were at stake: “Lawmakers and regulators have spent years erecting laws and rules meant to limit the power and size of the largest U.S. banks. But those efforts were cast aside in a frantic late-night effort by government officials to contain a banking crisis by seizing and selling First Republic Bank to the country’s biggest bank, JPMorgan Chase.
At about 1 a.m. Monday, hours after the Federal Deposit Insurance Corporation had been expected to announce a buyer for the troubled regional lender, government officials informed JPMorgan executives that they had won the right to take over First Republic and the accounts of its well-heeled customers, most of them in wealthy coastal cities and suburbs.
But the resolution of First Republic has also brought to the fore long-running debates about whether some banks have become too big to fail partly because regulators have allowed or even encouraged them to acquire smaller financial institutions, especially during crises.
“We are grateful to the Washington Post, the New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost 40 years……It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years. But, the world is more sophisticated and prepared to march towards a world government. The supernational sovereignty of an intellectual elite and world bankers is surely preferable to the national autodetermination practiced in past centuries.”