what the Volcker Rule does is drive banking from the private sector and toward the government sector. Thus, this rule, rather than limiting credit, simply pushes banks to use funds to invest in and provide more liquidity for the government sector.
If credit is to be created by the Fed, I would rather have those funds directed to the private sector, or see banks blow themselves up with synthetic instruments, than have the funds directed toward more investments in the government sector, which will do nothing but allow the state to grow. Thus, the Volcker Rule is a bad idea.
That’s from Austrian economist Bob Wenzel.
Like the Basel regulations, banks are being directed by statute to channel private sector savings to finance the government than to the private sector.
This legislation seems to be a component of the unholy grand scheme of financial repression—the plunder of private sector’s resources for the use of politicians through the banking system. [yeah and politicians and their sycophants have the effrontery to call out on “inequality” when much of the private sector resources have already been absorbed by them.]
And this is why banks end up in cohabitation with governments, as well as, why central banks have been there to provide a backstop on them when private sector resources have been squeezed dry.
Corruption is indeed rooted on arbitrary and repressive laws.
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