In a classic Problem-Reaction-Solution play, U.S. Treasury Secretary Henry Paulson unveiled the Bush administrations 218-page plan that is the most far-ranging overhaul of the U.S. financial regulatory system since the stock market crash of 1929.
Secretary Paulson declared, “A strong financial system is vitally important — not for Wall Street, not for bankers, but for working Americans.” Right! Sorta like the billions of dollars international bankers made on the backs of working Americans in the latest sub-prime Mortgage Ponzi/Pyramid Scheme perpetuated by the Federal Reserve. The Fed has already shown it’s preference for Wall Street over Main Street. Do we really believe that they will operate with the interest of all of us at heart?
The plan would change how the government regulates thousands of businesses from America’s biggest banks and investment houses down to the local insurance agent and mortgage broker. It would give the Federal Reserve more power over the entire financial system while merging day-to-day bank supervision into one agency, down from five at present.
The proposals say a “market stability regulator” is needed and the Fed best fits that role, suggesting the central bank could use its control over interest rates as well as its ability to provide market liquidity to fulfill its functions. It proposes that the Fed be given broad authority to require information from all participants in financial markets and a right to collaborate with other regulators in writing the rules that companies and institutions must follow.
The main elements of the New World Order plan is outlined in a 22-page executive summary and includes;
- Expand the role of the Presidents Working Groups on financial Markets to include the entire financial sector
- Create a Federal Commission: The Mortgage Origination Commission
- Close the office of Thrift supervision and move it to the Office of the Comptroller
- Merge the Commodities Futures Trading Commission into the Securities and Exchange Commission
- Establish an Office of National Insurance within the Treasury Department, work to establish the Federal Reserve as a “ market regulator” , a “financial regulator” a “business regulator”
On July 10th Ben Bernake, Chairman of the Federal Reserve Board and Secretary Paulson, will make a presentation to Congress requesting Congress to turn over to the Fed those Agencies and Bureaucracies that are not yet under the complete control of the Federal Reserve. These include:
- Credit Unions
- Savings and Loans
- The Insurance Industry
- The Mortgage Industry
- State Chartered Banks
- Agencies with oversight of Stock and Bond Settlements.
This would be a historic event, with greater impact than the 1913 Federal Reserve Act! Behind this attempt by the Fed to convince Congress that these institutional regulations should be turned over to them is their premise that it must be done to avoid events such as the Subprime Mortgage fiasco, and other current monetary crises – which they created, by the way.
Senate Banking Committee Chairman Christopher Dodd (D-CT), said the real problem was not the need for new regulations but “the failure of this administration to utilize the tools they’ve been given over the years to deal with the very practices that caused this problem.”
Like in the 1980’s when Farmers were encouraged to buy equipment, buy land, and then the loans were called, the Feds are largely behind the current mortgage crisis. They encouraged “sloppy” mortgage methods and exotic types of loans created to qualify people into sub-prime mortgages coupled with massive devaluing of the dollar, resulting in the crash that brought about the record number of Real Estate Foreclosures throughout the country today.
It was the Commodity Futures Modernization Act of 2000 passed by the Republican controlled Congress and signed by President Bill Clinton in December 2000 in large part to allow for the creation of U.S. exchanges for the listing of a new sort of derivative security and the deregulation of the Shadow Financial Markets that is more responsible for the financial crisis behind the mortgage meltdown than homeowners not paying their mortgages.
The financial crisis surrounding the collapse of Bear Stearns was on account of derivative heavy hedge funds losing their bets in the Credit Default Swap market resulting in the buy-out purchased by J P Morgan and funded by the Federal Reserve. Bear Stearns was not a bank, by the way, but was an International Investment Firm! This set a PRECEDENT …for the first time the US became the lender of last resort for international investments!
If the Federal Reserve wins this incremental step towards nationalizing the financial industry, it will move us one step closer to their desired Globalization with a World Central Bank, a Global Securities and Exchange Commission, and a Global Commodities Commission. The tax payers end up being governed by unelected bureaucrats in places of power throughout their everyday life.