Mirek Fatyga comments on a Project Syndicate piece by Antonio Goglia , AUG 26, 2017:

Guarding the integrity of money is the most fundamental responsibility of governments. Governments abandoned this responsibility through financial deregulation, both of derivatives markets and plain banking. Derivatives markets created a system of largely fraudulent circular insurance that allows bankers to raid their bank capitals and pay it out to themselves and select shareholders as bonus. What this amounts to practically is a license to print counterfeit money through fraudulent credit. Fraudulent credit can be defined as credit that is designed at origination to be impossible or highly unlikely to be repaid. The system is unstable not because it is too complex, but because surrendering the responsibility for the integrity of money by the government produced an inherently unstable political system. When profits of financial institutions can be manufactured out of thin air by fraud, a small percentage of these profits can be used to thoroughly corrupt the political system. This is a self-reinforcing scenario that ultimately leads to economic collapse. The complexity of the rules than Mr Foglia bemoans are directly related to the fact that financial institutions are powerful enough to prevent actual reform or undo any reform that would actually stop their highly profitable counterfeiting blitz. As in the 1930-ies, progressive destabilization of the economy through financial fraud leads to economic crisis which paves way for fascism. This round of fascism will have nukes to play with on day one. We do not need financial reform, we need a forced breakup of financial institutions that are too big to manage. If this breakup causes some inefficiencies, so be it. The alternative is far worse. The alternative is unfortunately coming to pass in front of our eyes and the final crackup may be inevitable. This crackup may actually be quite final.