Busted: Bankers and The Global Economy

March 28, 2008

Fed: New Protector of Wally World

Filed under: banking, central bank, government, investment, money — Tags: , , , , , , , , , , — digitaleconomy @ 6:00 am

paulsen-bernanke.jpgThe Fed has taken on an increasingly protective role in the banking and finance industry. The Bush Administration has continued to expand the role of the U.S. central bank in the role of the economy. The Fed was recently given the job as “protector of the economy”. As the protector of the economy with the newfound ability to hold, sell and buy U.S. securities, the Fed is now bailing out Wall Street with a bottomless load of credit. With emergency funding of Wall Street, the Fed no longer handles traditional banking only. This move portends to get the Federal Reserve involved in the shady world of banking instruments and perhaps creating a corporation disciplinary stronghold over U.S. banking. The Fed now faces the potentially huge job of manning regulation over Wall Street and the investment industry.

“Whether we like it or not, they’ve recreated the financial universe,” said Charles Geisst, a Manhattan professor. Clearly, the corporately-owned Fed is in charge of the United States economy like never before and can expect to reap larger than ever profits for the International Society of Bankers at the theoretical risk of the U.S. taxpayer.

The Fed and U.S. Treasury Secretary Henry Paulson decided that a bank run could not be tolerated and that the full power of the Rome-based banking system would be put behind the U.S. economy in an unprecedented way. On March 4, Fed Vice Chairman Donald Kohn told the Senate Banking Committee that he “would be very cautious” about lending Fed money to institutions other than traditional banks. Less than a month later, he was bankrolling the entire economy on Wall Street. Whether bankers will take this as a cue for engaging in less accountability remains to be seen. With a greater regulatory function, the Fed is not likely to tolerate predatory profitaking or excessive risk. Forced takeovers of uncooperative predatory banks at the request of the Fed looks like a likely scenario in the future. Fed Chairman, Ben Bernanke is much more of a consensus man than his predecessors. Since his opinions are closely guarded, he seems much more open to creative ideas and outside control from other central banks. This puts the U.S. economy at increased risk of control by foreign economies, which in essence has been in process since 1913. Even though each central bank is individually and corporately held, each central bank is a member of a global banking society under a hierarchy based in Switzerland and Rome.

Much of the media has theorized that Congress and the Bush Administration have yet to give the Fed permanent authority. The reality is that the precedent has already been set and that the approval has already been given by proxy. There is no need for an additional approval process by the U.S. government.

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2 Comments

  1. Many thanks. I’ve linked to your post.
    editoresguatemala.com

    Pingback by EditoresGuatemala — March 28, 2008 @ 7:30 am

  2. :-) outstanding observations.
    Tom Bergman

    Pingback by Tom Bergman — March 28, 2008 @ 7:50 am


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