Busted: Bankers and The Global Economy

November 13, 2008

Bush Continues to Drag Heals on Change

Today at the Manhattan institute in New York City, the home of Wall Street, George Bush defended the nation’s free enterprise system of business as the cure for the global financial crisis rather than the cause. “Government intervention is not a cure-all,” a hint that he is not going to sway to pressure for what he clearly sees as restrictive rules while the majority of world leaders see a new protective financial architecture that will save the world. The change is all about power.

george-bush-2008“Our aim should not be more government, it should be smarter government.” President Bush is clearly trying to straddle the fence on the financial crisis. He sees governments share the blame while advocating tougher accounting rules and updated processes. It would seem that George Bush wants the world to remain the same. At the very least, he is doing a good job pretending.

“In the wake of the financial crisis, voices from the left and right are equating the free enterprise system with greed, exploitation and failure.” George Bush has it right. The world and much of the nation’s smaller businesses see that having allowing the takeover of the nation’s and much of globe’s financial fortunes has led to the failure that he indicated. Few people are damning all business, just the kinds of businesses that ruled the economic engine and insured the future for billions.

“The crisis was not a failure of the free market system. And the answer is not to try to reinvent that system.” The real problem resides in the fear within government. Because of the fear of change and loss of control, the U.S. government has bailed out business that should have met its’ own truth without invention. Now that the Bush administration has intervened, the failure to continue to intervene becomes what might appear to be an eternal conundrum.

Europeans want a pledge for concrete changes in just 100 days. The International Monetary Fund said economies of the U.S., European Union and Japan were subject to contract in 2009 as part of the first annual decline by the advanced economies since World War II. You’d think the world was over. However, this is an opportunity for change and new control measures. It just so happens that many leaders are gung ho about a change.

No one is openly suggesting that the free-enterprise business system change. What is being suggested is that the means of oversight and structure must change regarding banking and finance. Banking and finance is not the whole of the business world. More transparency and workability are needed, yet the U.S. finds itself resistant to that. That means that government must change, which is where the real concern and fear exists. The U.S. government likes the control system just like it is. Even so, the propensity for upcoming change is part of the growing digital economy. There is an effort to force the change. ~ E. Manning

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2 Comments

  1. Ask almost anyone who owns the Fed and they”ll probably tell you the US Government. ABSOLUTELY NOT TRUE.

    There are 12 Fed Reserve banks. 11 put together aren’t worth a tenth of the NY Fed.

    The (NY)Fed is owned by financial institutions: Lehman, JP Morgan, Chase, Goldman Sachs etc. which are same financiers who invented the fraudulent financial instruments which caused the mortgage mess. These institutions are owned by worldwide corporations.

    The Bailout:
    The US gets a huge loan from the NY Fed which issues money out of thin air. The amount is more than twice as high as the $750B because Congress did not state an amount but gave permission to raise the ceiling of our debt by about $2 trillion. Paulson borrowed clear up to that ceiling. So who is making money?

    The US Treasury gave the Fed IOU notes in exchange for the loan.

    The US Treasury distributed the loan money to distressed financial Institutions.

    The Fed sells the IOU notes to the distressed financial institutions at a discount because THEY OWN THE NY FED.

    In the end, the distressed Financial institutions get the bailout money PLUS the IOU notes. The Fed replenishes its coffers at taxpayer expense. The US taxpayers are on the hook for the notes plus interest while the bailout loan is forgiven.

    It’s a lot like kiting checks, but mired in a swamp of financial voodoo.

    Comment by financial voodoo — November 14, 2008 @ 4:31 pm

  2. The government has shot themselves in the foot twice with their methods of ‘restoring confidence’ by saving the institutions and people responsible for causing this mess, not making any requirements to lend or cut CEO bonuses, breaking laws, etc, while nothing they have done so far has helped anyone but themselves.

    This is not restoring confidence. It is leaving some citizens feeling like the only remedy is a tax revolt for obvious reasons of not wanting to pay to be ripped off. I know this government is not guided by logic and moral duty, but most people are. That confidence they are seeking to restore will never be restored if they don’t completely change their methods and start to do what is ‘right’ for America and stop doing what is right for themselves and their friends.

    If these people won’t do what is proper and prudent for America, if they continue to treat this country in this financially abusive manner, then they cannot expect Americans to enslave themselves to clean up their mess.

    Comment by McMillan — November 14, 2008 @ 4:34 pm


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