The unveiling of the Obama financial regulatory plan is the next big diversion to facilitate continuation of the government spend, spend, spend binge. It will divert American’s attention from the real tasks at hand, the complete overhaul of Wall Street and the rescue of our monetary system.
Eighty percent (80%) of the credit derivative industry is comprised of bets where the betters do not need to own an underlying security that is involved in the bet. See my previous article “Fat Cats Stacking the Deck”. These bets are akin to those in Las Vegas, where chits are exchanged for money to play games. Nothing of value is involved in the exchange of the chits by gamblers. Twenty percent (20%) of the industry is comprised of insurance that has not undergone underwriting prerequisites of insurance laws. The startling simple diagnostic cure to the demon derivative dilemma is stop the Las Vegas like credit gambling on Wall Street and regulate the insurance like derivatives under the insurance laws.
Handing money intended for use in a free market monetary system to chip holders to maintain their bets is complete insanity. That is exactly what the government financial and insurance institution bailout entails. Fat cats on one side of these bets get their chips from leverage (borrowing of script indirectly provided by taxpayers). See my previous article “Government Needs a 180 Degree Turn”, fourth paragraph. Now taxpayers are also providing the bailout backup script for chips in the hands of institutions on the other side of the Las Vegas type bets. If Congress were doing their constitutionally required job to protect the people in the first place, there would already be clearly explicit laws preventing Las Vegas type gambling with the people’s money. Las Vegas betters provide their own chips. Why should the American taxpayers provide financial institutions and fat cats their demon derivative bet chips?
Without laws designed to protect our monetary system, financial oversight by government cannot be effective. Inability to quantify leveraging in demon derivative contracts makes protective oversight ineffective. See an explanation of such leveraging in my previous article, “Government Needs a 180 Degree Turn”. Inability to unravel the demon derivative bundling of Wall Street as alluded to in my previous article, “It’s Time to Let American Know What’s Really Going On” also makes oversight ineffective. Don’t be misled. Outlawing the debilitating use of leverage and the obstructive bundling is prerequisite. The outlawing of the Las Vegas type betting on Wall Street is obviously a huge priority.
Laws are absolutely necessary to mitigate against situations alluded to above. We are on the path to destroying our form of government (the highest achieving one in the history of mankind). Why? Because of the complete incompetence of our Congressional electees to fulfill their governmental roles. We citizens must besiege Congress with demands that term limits be placed on Congress. This is the best hope clear thinking Americans have to cope with our dilemma. The obstructionalists must be removed so that civilization can advance.
To rescue our financial system, we must give priority to retrieving bailout script setting in the behemoth institutions as back up support for the Las Vegas type bets. This is the exact opposite of the policy now being followed by the government.
Citizens must voice their opposition to the thrust of the Executive Branch of government to continue the spend, spend policy which is destroying our form of government. We must discuss this with each other. We must work to advance our knowledge and insight to what is happening in America. We must demand better analysis of facts from all media through letters, boycotts and enlightened use of a free computer internet.
Above all, we must foster a groundswell of opposition to spend, spend, spend. The stakes have been raised far beyond social arguments. The survival of the United States as a leader of the civilized world is in great doubt. Even the Socialist governments of Europe meeting in Brussels drafted a statement on June 19, 2009 announcing they were working on an exit strategy for unwinding previously implemented fiscal stimulus. The world has been telling us to outlaw Wall Street abuses. It’s time we the people insist upon it by protesting in the streets, if necessary. The time to stand up and fight for our economic freedoms in now.
We are not far removed from a potential attempt to devalue the U.S. dollar. For what? To destroy our monetary system and complete the usurping of power by the Executive branch of government. We have moved past possibility toward probability. Citizens must resond.
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I think you have an interesting point on the term limit for congress members. I think a term limit would definetely help prevent senior members from exercising such large amounts of influence. It might however slow down the the legislative process even further since it wouldn't allow members to be around for the years that are required to form the relationships and favor traiding that tends to speed things along by making it easier to get bills passed.
ReplyDeleteAs far as the fiscal policy of the current administration, I don't think what they're doing is so far off with what most economic theory dictates should happen. Keynesian ecomics was adopted during the great depression by FDR and has been our tool for dealing with economic downturns ever since. Now whether or not that money is being spent in the right places is up for debate but I believe the spending itself is the right move.