Big Money and the "Spontaneous Market Order"
The marketplace, we are
told, is a "spontaneous market order"1; it must not be interfered with.
But the marketplace is increasingly behaving like a casino that is dominated by Big Money,
Big Banks, and Transnationals. Their power has replaced the power of kings. Big
Money constantly interferes with the marketplace.
Consider Canada's big banks
for a moment. Outwardly, they appear to be competing. But a closer look at their behavior
tells another story. Banks do not provide detailed cost information for their financial
transactions. But a few graphs showing per-branch revenues and per-branch non-interest
expenses (which are not unrelated to prices and costs), reveal substantial conscious
parallelism2 -- if not tacit collusion.
This, and other powerful evidence, corroborate the fact that
BIG BANKS IN CANADA APPEAR
TO HAVE BEHAVED AS IF THEY WERE DIFFERENT PARTS OF THE SAME MONOPOLISTIC MEGABANK.
The marketplace is most
certainly not a spontaneous market order. It is
driven by cycles -- credit cycles, trading cycles, overinvestment cycles, etc. Look at the
data (summarized graphically in Book II). There is nothing spontaneous about the last two
overinvestment cycles in commercial real estate. If anything, the overinvestment cycle
appears to be
A SURE MECHANISM FOR
TRANSFERRING WEALTH, FROM WORKING FAMILIES TO THE MONEY TRUST.