United States the Pied Piper of Financial Doom

by http://socrates911.blogspot.com


The world is aware that the United States suffered a depression in the 1930's which resulted in a number of Congressional regulatory acts [ Glass-Steagall Act of 1933 included ], complimenting existing Anti-Trust laws, and designed to prevent a future financial collapse in the U.S.A.

Full implementation of these regulatory acts occurred after WWII, and provided a basis of stability for U.S. banks and financial institutions. As banks, financial institutions and corporations gained political influence over Washington, the regulators became, under political pressure from both Democrats and Republicans, lax in the enforcement of these 1890-1936 laws. Beginning with the Reagan administration, there was increased pressure to " deregulate ". Laws that allowed the U.S. to become the Pied Piper of the world, financial world in particular, were increasingly modified or repealed during the ensuing years 1960-2005. The U.S. enjoyed economic prosperity previously unknown in the world, enticing foreign governments, banks, financial institutions and investors to " buy in " and finance the "AMERICAN DREAM " by purchasing financial contrivances dreamed-up by Wall Street, and continuing to buy U.S. Government, Treasury issues.

The lesson learned, follow the U.S. Pied Piper and you will be doomed.
Unless and until the U.S. re-enacts bank and financial regulatory legislation created in the 1930's and strictly enforces the Sherman and Clayton Anti-Trust Acts preventing mergers, the U.S., regardless of any "stimulus" Washington conjures up, will not be able to pull itself out of the depression it now faces. The rest of the world and particularly the remaining members of the G8 ( minus the U.S. = G7 ) need to develop compacts independent of the U.S. The U.S. is no longer the leader and has little to offer other nations except to buy U.S. debt so that the U.S. can purse its narcissistic interests and military objectives.

What the U.S. needs to do, but does not have the Congressional will to do, is to “man-up” to the fact that it alone has lead fellow G8 nations and other less fortunate nations, to the brink of financial collapse. The U.S. needs to co-ordinate its Anti-Trust laws, bank, financial and insurance regulations and regulatory agencies with those of other G8 nations. Agree on central bank borrowing rates that are within 1/2 % of rates established by other G8 Central banks, agree on a universal retail interest cap at 12% simple interest, and restrict the sale, assignment, transfer of stock and financial instruments, including commodity contracts, requiring, among other things, that stocks, bonds, warrants and the like must be held for a period of not less then 13 months. One of the main, but little discussed components, of the global financial mess the U.S. has created, was and is market volatility. Mechanisms to stabilize global financial markets will be necessary before there can be any true recovery. The U.S. “stimulus” is inward looking, and makes no provision for new and required stability and regulatory mechanisms; the caveat to the rest of the G8 club, and other nations, is to look else ware for leadership.

AIG Bail-Out - OUTRAGEOUS FRAUD !!!

AIG Bail-Out - OUTRAGEOUS FRAUD !!! The system is in melt-down and this action will only benefit wealthy investors - a colossal depression is around the corner and 99.9% of the population will suffer so the very, very few can continue to live a life of luxury, jets, yachts and mansions.

What has been overlooked in sales presentations of the $85 billion AIG taxpayer bailout, is the fact that when the U.S. Treasury lends money to private enterprise, it means that the $85 billion is not available for domestic programs like schools, social security, medicare and health care, veterans benefits, etc. So without increasing individual taxes, federal programs directly benefiting citizen taxpayers will have to be cut or curtailed. Further, this private corporation, AIG, may be tied in with Berkshire-Hathaway/Warren Buffett's conglomeration of companies, and will be getting my taxpayer money at a bargain basement rate, when taxpayers have to pay 18% to 24% interest on credit cards and other forms of consumer debt. THERE IS NO FAIRNESS IN THIS BACK-ROOM DEAL.

AIG should have to pay retail interest on this bridge loan, essentially a subordinated convertible debenture, at a minimum of 12%, and the interest rate to credit card holders and other forms of consumer credit, by Federal law, should be capped at 12%. Further, hurricane IKE and other U.S. disaster victims, should be lent money at the Fed bank rate. As it stands, the AIG bail-out, is a transfer of wealth from the public/middle-class to the wealthiest 1/25th of 1% of the U.S. population; bottom line, the U.S. middle-class has been mugged, beaten and robbed and the U.S. Treasury has been looted ! It's the Republican way.

http://socrates911.blogspot.com