Government Protection Racket

The government protection racket, this time over at the SEC, is at it again. They are protecting someone. Unfortunately, that someone they are protecting isn’t you,

Bullion.Directory precious metals analysis 29 October, 2014
By Terry Kinder
Investor, Technical Analyst

Rick Rule refers to the SEC as the Swindlers Encouragement Committee. In part the SEC encourages swindling by lulling the public into a false sense of protection. However, a Zero Hedge article from today really brought to the forefront the idea that the SEC is part of the larger Government Protection Racket.

What is the Government Protection Racket? It is the idea that if you have enough money you can obtain special privileges, in essence, paid government protection. Whether that protection be protection from competition via excessive regulations, the blessing of monopoly and other anti-competitive behavior by government, or allowing the well-connected to have access to information that allows them to front run stock trades, it’s all part of the racket.

All of the above, and more, falls under the Government Protection Racket.

Zero Hedge highlighted the latest episode of the Government Protection Racket by pointing to an article in The Wall Street Journal that references two academic studies showing there is a lag between when the public can see documents filed on EDGAR and when paying subscribers can see those same documents. Not surprisingly, the company that posts the documents for the SEC on the EDGAR site also has paying clients that they offer up the documents to before the non-paying public gets to see them. It’s an obvious conflict of interest because, supposedly, the SEC is there to fight trading on inside information, but their contractor makes money by, essentially, selling access to inside information.

You should read the full article over at Zero Hedge.

Is it any wonder that there is widespread distrust of the markets? With the Government Protection Racket looking out for the interests of those who can pay, the rest of us have to look out for ourselves. It is just one of the reasons I choose to store a part of my wealth in gold and silver rather than rely on the generous “protection” of government.

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