Dodd-Frank: Another Name for Socialism

Socialism_CitibankAs we sail on the choppy seas of a questionable economic recovery, we can look back upon a storm of our own making that has wreaked havoc upon our financial system. That storm is the Dodd–Frank Wall Street Reform and Consumer Protection Act. Enacted five years ago, the mammoth law of all laws to fix our financial system has only succeeded in leading us down the road to socialism.

This can be seen by looking at what Dodd-Frank has “accomplished” to date. Since 2010, some 1,341 commercial (usually smaller) banks have simply disappeared. By contrast, only two new banks were chartered in the same period.

This is not normal. Even in the worst of times, like that of the Great Depression of the ’30s, there was an average of 19 new banks chartered every year. Prior to the financial crisis, the market gave rise to nearly 100 new banks annually.

Of course, while small banks are getting fewer, big banks are getting bigger. This is another “accomplishment” of Dodd-Frank. It has led to the establishment of a financial system dominated by a few big banks and increasingly controlled by regulators.

The Dodd-Frank law mandated the implementation of a massive body of new regulations that requires an army of compliance officers from banks. While big banks had the resources to absorb this great weight, compliance overwhelmed the ability of many small banks. The problem is confounded by the fact the regulations themselves are ill-defined and ambiguous; regulators make their own rules as time goes on.

Moreover, those surviving banks deemed systemically important are subject to even more stringent regulations and capital requirements. On top of massive compliance obligations, Dodd-Frank goes yet further by embedding regulators or commissars inside the highest levels of firms where they even advise and monitor executives.

In such an atmosphere of insecurity and ambiguity, the financial system and consequently the economy as a whole is deprived of legal and regulatory certainty that is needed to return the economy to prosperity. Banks cannot fulfill their functions of employing capital where needed in an economy. The recovery has thus been choppy and unsteady.

Some might think it strange that a government policy that favors giant “capitalistic” banking institutions might be termed socialistic. In this case, it would seem that big government is favoring big business and thus pushing the “capitalist” agenda ahead. Such was the rant of Occupy Wall Street activists against the 1 percent.

Yet the concentration of gigantic banking blocs into the hands of a privileged few only favors socialism. This is because the industry becomes much easier to target. A few giant surviving banks become vulnerable targets to be confiscated or controlled by intrusive governments.Subscription5.2

By suppressing all intermediary leaders who might come to his defense, for example, the absolutist king prepares his own way to the guillotine. Likewise, when huge commercial banks devour smaller banks, they prepare their own way to socialist confiscation since it is much more difficult to confiscate a 1,000 medium-size banks than a single huge one.

Afterwards, when such blocs falter, as they often do, they are deemed “too big to fail,” and the government is already in position (indeed embedded in the CEO’s office) to be the only player big enough to bail out the ailing industry—and put it under its control. In this way, private property easily becomes collective property.

The evil genius of Dodd-Frank is that it did not directly destroy the smaller banks but rather created conditions whereby the bank establishment itself would have to destroy or absorb its own intermediary structures. The small banks themselves left the market to those better able to adjust to the government-created conditions.

Eerily similar is the way Obamacare is leading to the concentration of insurance and health care providers, or how Common Core seeks to override local and state intermediary educational institutions.

The strategy of Dodd-Frank and other schemes is not divide and conquer, but concentrate and conquer. The result is the terrible and looming threat of socialism.

As seen on theBlaze.

  • As a pro-life, pro-family practicing Catholic, I would like to run for Congress (Texas) under a Christian platform of anti-usury, anti-tax. I will paint a target on my back by sponsoring a bill to get rid of the UNconstitutional Federal Reserve and its IRS lapdog of tax collectors. I have a plan but need a campaign team with experience. Are there any political Catholic Action TFP activists in Texas who can help me? I’m on the TFP email list.

    • Cole

      And how would the government have any money to function. No tax collection means no transporation, no defense, no education, no whatever any country needs to survive and thrive.

      • Cole, go to Project Freedom USA dot org and use the “Contact” form to ask for me by name. I will communicate with you “The Plan”. WARNING: The Plan is not for the weak. So if you are unwilling to do your constitutional duty in “the Militia of the several States”, then please don’t waste my time contacting me.

    • IsReal

      I’m sorry you have no spiritual discernment nor care to realize your Catholic Religion is a total fraud and antichrist new world order religion. Your pride and human based good deeds get you nowhere but hell without Jesus. Not only does it worship idols, an abomination before God, but it worships a recycled goddess Virgin Mary formerly known as a goddess from the ancient Babylon civilization. Your Catholicism is going to bring you into eternal hell. If you cling to your false religion after being fully put on notice, you can’t say to God at the White Throne Judgment that you weren’t forewarned.

      • Stop self-worshiping the Whore of Babylon…the racist, satanic Babylonian Talmud of Isra-Hell. Facts are facts.

        • IsReal

          The God of Abraham is the true God. If you don’t know you’re following a mystery religion from Ancient Babylon that you’re clearly in denial of, you’re spiritually blind and brainwashed. You’re response is in no way rooted in fact or Biblical history.

          • Ryan

            IsReal, I’m Catholic and I also believe that the God of Abraham is the true God. I think you are mistaken about the Catholic faith. It is the continuation of the Old Testament Jewish faith. Jesus is the new covenant and He established His Church (the Catholic Church) while He was still on Earth and handed the keys over to St. Peter. We Catholics don’t worship idols. We do use statues and icons as sacramentals to help remind us of God’s glory and to help us better worship the one true God. I’m sorry that you think we’re a damned group of people.

  • Cole

    While that might be part of the cause of the decline of community banks, economies of scale is the bigger cause.

    Further more, socialism is defined as the citizens owning the means of production. If the citizens of a country do not agree nearly unanimously, then yes it is wrong. But what you see here is not the citizens taking ownership of the means of production, but instead a select few. And what is wrong with a country making sure that it’s citizens are taken care of? A government that takes care of it citizens creates a stronger country that is more productive. As a Catholic, I have been taught to fight for social justice, but you are preaching against it when you preach against the current use of the word socialism.

    The only way to stop community banks from disappearing and prevent the big banks from collapsing our economy would be to break up the big banks, and that would be the true definition of socialism. That would be taking the means of production (the flow of capital (money)) and returning it back to the people. And that is stealing and that is the reason why the church is against socialism.

    I challenge you to two things
    1.) Propose a better way to bring back community banks that doesn’t involve breaking up the big banks.
    2.) Convince me that welfare and the ACA and other “social” programs are indeed socialism by the classic term and that they are bad.

    • Cole, am I correct in saying you’re a post-Second Vatican Council neo-Catholic who’s never read the books of Father Denis Fahey (d. 1954)?

      • Cole

        More or less, yes you can consider me that.

  • PMcC33
    • IsReal

      You think the Popes have any credibility whatsoever do you? Fool.

      • PMcC33

        Ha! You offer insults instead of arguments. You don’t love your neighbor as yourself, otherwise you would’ve charitably tried to convince me. But because the Popes have credibility and you have none, you only have insults. Did your bible come out of your church, or did your church come out of your bible? The Bible came from the Catholic Church, which came from Our Lord, Who instituted it when He said, “And I say to thee: That thou art Peter; and upon this rock I will build my church, and the gates of hell shall not prevail against it.
        And I will give to thee the keys of the kingdom of heaven. And
        whatsoever thou shalt bind upon earth, it shall be bound also in heaven:
        and whatsoever thou shalt loose upon earth, it shall be loosed also in heaven.

        • IsReal

          My aren’t you proud of your Popes. God hates all pride! Your Popes are empty tombs parading around as hypocrites much like the Pharisees and Sadducees of Jesus spoke against. Like all false religions, they mix truth with lies to try and fool the populace as they always have through the ages.

          Roman Catholicism is an antichrist religion rooted in Ancient Babylon. It is full of paganism, idol worship and occult practices with its own false doctrine of Virgin Mary worship apart from the Bible that it tried to hide from the people. If it weren’t for brave men like Tyndale, King James and the printing press, the Word of God would have remained hidden from the public due to Roman Catholicism’s vain attempt to suppress it. The Popes have no credibility whatsoever, they are world religious leaders trying to bring people into hell along with them. My credibility only comes from the Word of God, something your Popes don’t at all follow nor yourself otherwise you’d have discernment and know its a false religion.

  • drivenb4u

    Wow. stumbled on to nutjob central here. Y’all are loons.