Operation Choke Point

      Operation Choke Point is the type of thing that we want to believe can never happen in this great republic, but it is happening.  It is just one more example of our out-of-control federal government operating illegally and taking away our rights. 

In 2013 the US Department of Justice initiated a program called Operation Choke Point.  The stated objective is to investigate banks doing business with companies like payment processors and payday loan companies for money laundering.  This sounds innocent enough as the Department of Justice should always be on the alert for any criminal money laundering operations.

        Operation Choke Point does not have the authority of law passed by Congress.  It is once again the brainchild of the administrative branch of our government and implemented by appointed government bureaucrats.

        Operation Choke Point gives government bureaucrats the authority to threaten banks with audits based on the bureaucrats opinionated perception of specific industries.  This power has been expanded beyond payment processors.  It has also been applied to manufacturers and sellers of guns and ammunition.  The liberal left cannot get Congress to take away our Second Amendment rights, so maybe they can take them away in an indirect way. 

Any industry that the current administration does not like can be targeted through banks.  The coal industry is an excellent example.  They are targeted because the Obama administration does not like the potential for carbon emissions from the industry.  He can’t sell Congress the idea of man-made emissions causing global warming so he uses a back door. Regardless of how someone feels about coal as a fuel, I don’t see how anyone can condone this abuse of power.

        The Federal Deposit Insurance Corporation has designated the following industries as high-risk: Ammunition Sales, Cable Box De-scramblers, Coin Dealers, Credit Card Schemes, Credit Repair Services, Dating Services, Debt Consolidation Scams, Drug Paraphernalia, Escort Services, Firearm Sales, Fireworks Sales, Get Rich Products, Government Grants, Home-Based Charities, Life-time Guarantees, Life-time memberships, Lottery Sales, Mailing Lists/Personal Info, Money Transfer Networks, On-line Gambling, Payday Loans, Pharmaceutical Sales, Ponzi Schemes, Pornography, Pyramid-type Sales, Racist Materials, Surveillance Equipment, Telemarketing, Travel Clubs, and Travel Clubs. 

        I may not do business with or even like all of these industries, but they have a right to exist if they are not breaking the law.  Cutting off banking rights for these industries will force them to be a cash only business.  This presents the opportunity to avoid taxes and makes the business much more attractive to the criminal element.  I don’t think we should create any new opportunities for the criminal community.  How did prohibition work out?

In my book Business Fits, I warn people about getting involved with some of these industries, but federal bureaucrat don’t have the right to deny them banking privileges.  At least we can be confident this abuse of power won’t be used for political purposes, or will it?  What was the deal with the IRS and conservative groups?