Greg’s Newsletter, Keeping the American Middle Class Informed / January 18, 2009

Every time I look into this bailout fiasco, I am amazed at the things the government has done and proposes to do to strengthen the financial institutions and do very little to strengthen the individual American’s balance sheets. This new plan to create a “Bad Bank” or “Aggregator Bank” which is just another name put on a Federal program that will have the same basic agenda the first bailout was supposed to do, buying up bad assets in the financial industry. As we have seen it didn’t work and when Paulson got the green light to control the $700 billion bailout. He changed what they proposed for that money, buying bad assets, but directly injected the money into the financial system’s coffers, without buying up any bad assets or getting the credit markets to lend with a real impact on the credit crisis. In fact most of that money was used for banks and lending institutions to buy up other banks and lending institutions at bargain basement prices or just put that money into their vaults. This just further concentrates the economic power which controls the monetary policy, through lobbying, of our Federal Government.

http://www.bloomberg.com/apps/news?pid=20601068&sid=amhKS1g61_J4&refer=home

This past week, Bernanke was suppose to appear before the Congress for questioning on where the bailout and financial status of the banking system. At the last minute he canceled going to Congress and instead went to Europe to meet with the other central bankers from around the world. By doing this he seems to be more interested in establishing the world banking system than answering to the American people what he and Paulson have been doing with the money and what this proposed new bailout bank is really all about.

After reading this article above, I have given you some of the economic power behind the governmental influence and the lobbying system this article mentions both past and present individuals that have been involved in setting monetary policy in our nation. It is quite an interesting list of groups and people.

1. Kenneth Rogoff – http://en.wikipedia.org/wiki/Kenneth_Rogoff

2. International Monetary Fund – http://www.imf.org/external/about.htm

3. Group of Thirty – http://www.group30.org/index.htm

A. Current Members – http://www.group30.org/members.htm

B. Past Members – http://www.group30.org/pastmembers.htm

C. Emeritus Members – http://www.group30.org/emeritus.htm

4. Timothy Geithner – http://en.wikipedia.org/wiki/Timothy_Geithner

5. Lawrence Summers – http://en.wikipedia.org/wiki/Lawrence_Summers

6. National Economic Council – http://en.wikipedia.org/wiki/National_Economic_Council

7. Paul Miller –  bank analyst at Friedman Billings Ramsey & Co- http://www.reuters.com/article/businessNews/idUSTRE4AJ1GV20081120

8. Sheila Bair – http://en.wikipedia.org/wiki/Sheila_C._Bair

9. Paul Krugman http://en.wikipedia.org/wiki/Paul_Krugman

10. Peter Wallison – http://www.aei.org/scholars/scholarID.58/scholar.asp

11. Henry Paulson – http://en.wikipedia.org/wiki/Henry_Paulson

12. John Bovenzi – http://www.fdic.gov/news/news/speeches/chairman/spjan1309.html

13. Ben Bernanke – http://en.wikipedia.org/wiki/Ben_Bernanke

14. Josef Ackerman Chairman of the Institute of International Financehttp://en.wikipedia.org/wiki/Institute_of_International_Finance

15. Harry Reid – http://en.wikipedia.org/wiki/Harry_Reid

16. John Douglas – former FDIC general counsel and partner in Washington law firm – http://en.wikipedia.org/wiki/Paul,_Hastings,_Janofsky_&_Walker

One thing I have found studying these groups and people, many were influencing the introduction of the Gramm-Leach-Bliley Act in 1999 which reduced and eliminated the regulations, which were introduced after the Great Depression through the Glass-Steagall Act of 1933. These reductions and eliminations of these regulations are what spurred the unregulated dealings in the derivatives markets (hedge funds) which in turned destroyed the housing market, followed by our total economy being affected by this self serving financial direction. Some of these are the people who created this disaster and now they are giving input how to correct it. As we have seen to this point, the only thing this bailout has been correcting is an attempt to correct the bottom lines of the financial industry, what about the American people? The trickle down effect of this bailout has not trickled down past the financial institutions and I doubt if we will see much trickle down for us from this proposed “Bad Bank”.

Finally, this article written by Professor Peter Morici – He is a Professor of International Business at the University of Maryland.  Prior to joining the University, he served as Director of Economics at the U.S. International Trade Commission.  He directed the agency’s professional economists working on ITC investigations and provided international economic policy advice to the House Ways and Means and Senate Finance Committees, U.S. Trade Representative, Council of Economic Advisors, and other government agencies.

In this article he tells us what the real unemployment numbers are and what needs to be done to begin establishing a direction to improve our nation’s economic condition. He along with others, like Ron Paul, knows what needs to be done to establish a sound recovery for the U.S. economic system with benefits for all of us not just the financially and politically well connected.

http://www.globalpolitician.com/25390-economics

Greg Goodwin

1/18/09

Advertisements

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

One Response to “Greg’s Newsletter, Keeping the American Middle Class Informed / January 18, 2009”

  1. moliberty Says:

    It’s still imperative to go back to 1912, before the Federal Reserve and the I.R.S. were established.

    The Glass-Steagall Act of 1933 was probably the best-case scenario available to counter the detrimental effects of the Federal Reserve and the I.R.S. You can remove the scab from the top of a wound, but the puss and infection still remain underneath. The Glass-Steagall Act being the scab and the Federal Reserve being the puss and infection underneath.

    The Glass-Steagall Act obviously didn’t remove the cancer that caused the infectious destruction of our “Free Market Principles”. It was a band aid to cover up the real culprit that parasitically feasts on the free market. That is the Federal Reserve and its bitch-the I.R.S..

    We can continue to attempt to rearrange the deck chairs on the Titanic, but it’s still going to sink. If our so-called representatives would have listened to “The People”, and let Wall St. and the other incompetent businesses collapse, we would already be in the “Correction Phase” of a free market system.

    But No! Our rep’s decided to give in to the threats applied by their special interest lobbies. Threatening Congress with “Martial Law” if the bailout were to fail. “We” are not being represented, “We” are being screwed by our own employees, to bailout incompetent entities. All for the ushering in of the Socialist Global Elitist control mechanism.

    This scenario will continue until a Global Monetary System and Global Government is established. That’s what we must strive to terminate!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: