Dodd-Frank Act Legalized Surreptitious Subversion of American Liberty

Sankarshan Acharya
Founder, Pro-Prosperity.Com

The Dodd-Frank Act of 2010 has legalized the heretofore de facto protection of a few too-big-to fail financial institutions.  The executives of these institutions and the Federal Reserve chief who protects them were blamed by the Financial Crisis Inquiry Commission for causing the 2008 financial catastrophe.  Even the Federal Reserve chief has stated that the 2008 financial catastrophe was worse than the Great Depression.

The few legally protected too-big-to fail financial institutions can now bet, with impunity, against private hedge funds, mutual funds, household investors and even the dollar which is repertoire of the hard-earned wealth of every American.  

Legalized robbing of hard-earned wealth through such bets by a few who do not produce anything or serve anyone not only makes private investors and entrepreneurs forfeit the values of their labor but also cut back their investments in business enterprises that create jobs.  Without jobs, the unemployed lose the opportunity to work and save for liberty from government doles.  The Dodd-Frank Act has, thus, legalized slavery of those who work or want to work by a few who do not work to produce anything or serve anyone. 

To end such legalized slavery, i.e., to attain true liberty of those who work or want to work (productive majority) has been the mission of my independent research since 1988, as an academic at New York University, as a financial economist at the Federal Reserve Board, and as an academic at the University of Illinois at Chicago.  If true liberty of the persevering majority is your mission, you must have noticed my selfless struggle, which has been immensely successful by triumphing over the deliberate attempts by the few to cover up their failures by suppressing my independent research and by stifling my career.[1] 

It is not easy to attain liberty from a very sophisticated system of subjugation by the few and associated pundits that can preemptively lure any emerging political or intellectual leader or to financially repress those unwilling to kowtow. The few could have already painted this nonpareil author of true liberty as a Republican before Democrats or a Democrat before Republicans.  The few may have painted me as an anti-American for American leaders and as an anti-Indian for Indian leaders. I grew up in India, but have worked almost all of my productive life in USA. 

That I am nobody’s agent and that I am anti-none should be obvious from my unflinchingly unbiased research and writings available at  See, in particular, A Unifying Philosophy of Governance[2], No-subsidy Mantra of Governance to Attain the Most Efficiently Competitive Economy,[3]and Origin and Triumph of Modern Constitution.[4] My computer here has been hacked by very highly placed people (I have fortuitously recorded the data) and my house in India has been raided.  Nothing incriminating could be found because I have no hidden closet, nor any skeleton to hide since childhood.   My website ( has been downloaded by the world’s most renowned plagiarism checker to find if I have copied anybody’s work or ideas. None could be found because my research is fundamental, peerless and nonpareil. 

The few involved in such hacking, raids and checks have failed to portray me as anyone but an honest selfless researcher of impeccable integrity (since childhood) pursuing vigorously for liberty of the productive majority anywhere in the world. My pursuits have been inherently driven by an insatiable quest to discover truth, which is supposed to be the sole mission of the academy (my employer) to serve the nation that nurtures and props the academy as well as all individuals. 

I was one of the highest paid doctoral graduates in the year of my graduation from Northwestern U in 1986 and was rated as one of the top authors of papers published in ‘top-rated’ journals.  Even the Federal Reserve Board gave me a special package to attract a highly qualified researcher from NYU, after my 1989 research on optimal bank foreclosure rule was adopted by the US Congress.[5] 

The quest for truth drove me to write academic papers on liberty from moral hazard in governance, which I mimeographed as an economist at the Federal Reserve Board in 1991.[6] I had an opportunity to argue in a top level meeting in Citigroup as a Fed economist on how the multi-tier leveraging through the bank holding company structure[7] transgressed the newly enacted bank foreclosure law.  Soon after this, my research was furiously blocked by ‘top-rated’ journals funded by the few.  My career and compensation have been stymied by the academy of economics and finance because it too is being rewarded by the few for promoting faculty based on their publication in the controlled ‘top’ journals, not for discovering a system of governance for creation and preservation of wealth of a nation.

Truth Triumphs and Prevails

As written in my memo to the US President, the Truth discovered in my research is the common will of people which is not only constitutional but also Godly, if God is defined rationally.[8]  Now even a journal which has 18 Nobel Prize winners as authors and has top academics and eminent industry researchers as editors has published one of my papers in 2013, which proves that the current system is unstable, unconstitutional and inefficient and which presents an alternative system which is stable, constitutional and efficient.[9]

The alternative system disallows any government-ordained robbery of private wealth.  Even robbers do not want to be robbed.  The alternative system is, thus, the only unanimously agreeable rationale of governance known to mankind.[10]  It is fundamentally fair.  It is constitutional.[11] 

The alternative system represents the common will of people.  My students have asked me if this alternative is ‘libertarian.’  That perhaps you can answer.  But the alternative system is antithetic to the currently established system.  The alternative system is the epistemic Truth about governance wanted by people.  It reflects the common longing of people on how they wish to be governed. 

The alternative system is so effective that even a relatively unknown Senator from my constituency in Illinois (who has received my memos and responded since May 2005) became the president of USA in 2008 after echoing the message of Truth.[12]  After becoming president, however, the winner decisively deviated from the Truth through backdoor negotiations with healthcare industry leaders and unions.  The Tea Party then emerged resoundingly by echoing the message of Truth and constitution.  The Tea Party even won a very Democratic senatorial seat in Massachusetts. 

President Obama countered the emergence of Tea Party by changing his course to be tough on Wall Street.  He publicly demanded inclusion of the Volker Rule in Dodd-Frank Act of 2010.  The Volker Rule ostensibly reflects my widely circulated 2007 paper on “lending taxpayer-insured funds to private hedge funds is financially suicidal for taxpayers.”[13] But, as conveyed to President Obama, the Volker Rule is a subterfuge for continuance of the privilege for the few and their associates because this rule does not prevent lending of taxpayer-insured funds to privileged private hedge funds managed by the few for the benefit of bank executives and associated lawmakers.  The Tea Party too lost its luster after its leaders sided with the same few.  Only after Mr. Mitt Romney started echoing the message of Truth did he get very close to winning the last presidential race.  But his embrace of the Truth was obviously not found to be credible for the productive majority. 

Truth always triumphs and prevails.  Truth has already triumphed with the Congressional finding in the Financial Crisis Inquiry Commission Report of 2011 that the few and the experts they funded caused the 2008 financial catastrophe.  The Congress has adopted in 2008 some of the same policies, discovered and conveyed to it by this author-messenger since 2003, to stem the domino of crashing markets, such as, (a) safe central banking for the panicking uninsured money market funds and bank debts and (b) minimum regulatory capital on a consolidated basis for bank holding companies.[14]

People are now accustomed to political leaders simply echoing the message of Truth (common will of people) to win elections with an ulterior intention via actions in office to side with the few to enjoy the privilege and power based on surreptitious usurpation of hard-earned wealth of the productive majority.  If you are a seeker of True Liberty in America, you should know this very well. 

Your media campaign to liberate Fannie Mae and Freddie Mac from the clutches of the few shows an ulterior mission that actually dovetails the Truth discovered in my independent research.[15]  The self-serving few have painted Fannie and Freddie as too-big-to-fail institutions that should be wound down, ostensibly to protect taxpayers, but really to wangle Fannie-Freddie mortgage assets at heavy upfront discount and to usurp their profit streams of about $50 billion annually.  After takeover of Fannie and Freddie, the few will then hike mortgage interest rates with impunity.  Every percent rise in interest rate will fetch $80 billion per year for the few, in addition to the $50 billion per year earned by Fannie and Freddie currently.  By winding down Fannie and Freddie, the few will simply grab such huge profits at a hefty windfall, upfront subsidy, of at least 10% of current $8 trillion of GSE assets or $800 billion.  The few supported by associated lawmakers and perhaps the president want to create a new entity called the Financial Mortgage Insurance Corporation that will provide taxpayer guarantee of mortgage loan pools grabbed by the few at heavy discount from the productive majority. 

Replacement of Fannie-Freddie with FMIC is nothing but a stratagem to milk a financially disemboweled cow–the productive majority–for self-aggrandizement and self-entrenchment of the few and their associated political leaders and crony politicians and experts.   

Leaders of both the established parties have deviated from Truth to remain privileged, wealthy and powerful.  This has doomed the economy with the robbed productive majority now unwilling or unable to produce for a sophisticated system of slavery that transcends color, race or origin. The only path to True Liberty is governance driven by the common will of people or the unanimously agreeable rationale of governance[16] necessary for stability, efficiency (needed for survival of society) and fairness (constitutionality).

Conclusion:  This letter was prompted by my observation of your mission to liberate Fannie Mae and Freddie Mac from government.  This dovetails my quest to liberate the government from the clutches of the few protected by the Dodd-Frank Act, which legally and surreptitiously enslaves the productive majority with impunity.  This necessitates independent peerless, nonpareil research christened as “Constitutional Capitalism for First-best Efficient Governance, Obtained in general equilibrium based on rational microeconomic analysis, devoid of parochial dogmas, politics or prejudice” available at  

The only way to accomplish a profound mission of True Liberty is to first free the ‘top-rated’ media and publishing houses from the clutches of the few so that they publish and propagate Constitutional Capitalism without fear and then liberate the government by mandating constitutional capitalism as the sole driver of governance according to the common will of people.  

Please feel free to circulate this memo to spread the message of Truth in governance.

With best regards,
Founder, Citizens for Development and Pro-Prosperity.Com

1]“Advice of Most Successful Entrepreneurs for Governance,”
[2]Published in Journal of Governance and Religion and available at
[3]Published in Journal of Governance and Regulation (2012) and available at
[4]Memo submitted to the US President (February 14, 2014) and available at