OBAMA'S PROPOSED FINANCIAL REFORMS ARE WAY TOO WEAK
- The Federal Reserve will retain control, and that control will be vastly increased.
- Mortgage and perhaps other "originators" of loans will not be allowed to sell the loans 100%. They will have to keep some of the risk (retention).
- All derivatives will be regulated to some extent.
- Consumer protection will be increased and a new entity will be formed to oversee this: Consumer Financial Protection Agency. This will be to curb or eliminate predatory lending.
- The "too big to fail" entities will be subjected to a predefined system to deal with insolvency.
- Hedge funds, insurance companies, and possibly others, will be regulated to some degree under the above.
(See: "A New Financial Foundation," by Timothy Geithner and Lawrence Summers. Washington Post. June 15, 2009.)
Not very bright — far, far from brilliant
What this means though is that the fox will continue guarding the chicken coop. The Federal Reserve itself is not being reformed or nationalized. So far, it will remain a private, un-audited, un-auditable, entity with complete control (increasing) over the U.S. currency. This is not good at all!
Furthermore, as the saying goes, the devil is in the details concerning the regulations. Is it a trite cliché? No, in this case it is definitely an apt truism. Bankers and others have always set up easily rolled back regulatory systems.
Look, Franklin Roosevelt's New Deal actually dealt with all of this. Ronald Reagan, among others, came along and ruined the New Deal. Now, here are the not so bright, not very unselfish, bankers (banksters in the eyes of those who see the theft that has taken place) only putting some of it back together again; and the New Deal was itself much too weak to begin with if one is going to have a coercive system and untrustworthiness.
Having to pay private bankers interest for the creation of money, so far, will remain. That's not necessary or good. There should be no payment of interest to private parties on the creation of legal tender (the nation's/people's currency). Right now, the currency is not the people's. It is the private bankers.
It would be a very simple matter for the U.S. Congress through the U.S. Treasury to create interest-free United States Notes pegged to true productivity. This would result in a huge and immediate reduction in Income Taxes going to paying private bankers for making an accounting entry in their central computer. If the United States Notes were used to pay off the National Debt, which would also be as easy as simply doing it, the National Debt would disappear and there would be zero Income Taxes going to paying interest on that debt.
Are the Republicans truly interested in tax cuts? That would be the largest capitalist tax reduction without a reduction in governmental services in world history.
The United States Notes would not have to be backed by any metals (so-called "real money"; a farce) or any commodity. The only thing required is that the United States Notes be the agreed upon medium of exchange. So long as the supply would be exactly for real productivity, there would be no inflationary or deflationary pressures. The Congress could very easily institute an automatic, fixed formula and system for pegging the money supply to actual need and to automatically regulate for zero inflation/deflation. Retirement savings and income would then be reliable even where there are catastrophic events that would sink the people under the current, selfish, privatized system.
The inflationary interest will continue under the currently floated plan. That's not good. The money supply, if there is even to be one (it isn't truly needed or desirable for the people in general), should be pegged to productivity and contain zero interest which is inflationary.
The Federal Reserve, at a minimum, should be publicly owned and controlled. The people should have independent bank and other financial institution examiners and regulators who do not go through any revolving doors with those they regulate (no being hired by the regulated bankers after leaving the civil service). The regulators should be public servants (career civil servants). That's the best mundane Band-Aid. It is not the best solution. It is based upon a lack of trustworthiness and also upon coercion.
The Federal Reserve System (that is based upon usury) is a bad system. It was put into place ostensibly to prevent exactly what has continued happening over and over: booms and busts; the so-called business cycle. It has not worked and will not work. It is inherently inflationary, which is not necessary and not good.
This mixed economy that is somewhere between people's notions of capitalism and socialism is a waste. It's the wrong spirit: selfish.
They gave trillions to the rich sharks and wolves all of which the taxpayers will still have to work off. That was wrong and should be reversed.
The plan as put forth is vague and woefully inadequate.
The bankers are saying that they want to regain the trust of the people and the world. Who can trust the evil system of usury and the self-centeredness of the system of mammon? Who can trust a people who need to be coerced rather than loving truth and righteousness?
What is really needed is the Christian Commons. People need to understand from whenst the right and best system comes.