Best of the Week
Most Popular
1.Trump Delirium Triggers Stock Market Brexit Upwards Crash Towards Dow 20,000! - Nadeem_Walayat
2.The Future Price Of Gold Will Drop Below $1000 In 2017 -InvestingHaven
3.May Never Get Another Opportunity to Buy Gold at this Level Again - Chris_Vermeulen
4.Delirium - The Real Reason Why Donald Trump Won the US Presidential Election - Nadeem_Walayat
5.Why Nate Silver / Fivethirtyeight is one of the Most Reliable Election Forecasting Indicator? - Nadeem_Walayat
6.Gold Price Forecast: Nasty Naughty November Gold Price Trend - I_M_Vronsky
7.Gold Mining Stocks Screaming Buy! Q3’16 Fundamentals - Zeal_LLC
8.Delirium of Trump Mania Win's Mr BrExit US Presidential Election 2016 - Nadeem_Walayat
9.The War On Cash Goes Nuclear In India, Australia and Across The World - Jeff_Berwick
10.Hidden Signs for Gold and Silver - P_Radomski_CFA
Last 7 days
Euro-zone Crisis - The Soon To Erupt Euro Experiment - 9th Dec 16
Global Market Perspective 3 Killer Charts, 2 Fast Looks at Politics - 9th Dec 16
Trump Could Fuel A Nuclear Energy Boom In 2017 - 8th Dec 16
Our Future Economy, Jobs, Banking, And Governance – Part2 - 8th Dec 16
Developing Knowledge-Intensive Society and Knowledge Industrial Hub in Kerala - 8th Dec 16
Crude Oil and Gold, Silver Precious Metals Link - 8th Dec 16
Stock Market and the Great Middle Class Revolt Gets Bigger - 8th Dec 16
Protectionist Trump Policies To Crash Dollar, Gold and Bitcoin to Soar - 8th Dec 16
The Jaws of Life : The Most Hated Stocks Bull Market in History! - 8th Dec 16
Infrastructure A Budding Asset Class - 8th Dec 16
Trump Stocks Bull Market Furious Rally Towards Dow 20k as Bear Mantra Persists - 8th Dec 16
More Talk About More Economic Growth and More Globalization - 7th Dec 16
Cracks In US Treasury Bond Market, The Japanese Factor - 7th Dec 16
The Rise of Anti-Establishment Italy - 7th Dec 16
Trump Likely to Drive Another Bump in Stock Market Buybacks — Here’s How to Hedge - 7th Dec 16
World War II and the Origins of American Unease - 7th Dec 16
Online CFD Trading for Traders on a Budget - 7th Dec 16
Silver Bullion Price Buying Opportunity for 2017? - 7th Dec 16
The Imminent Multi-Trillion Dollar Surge In Social Security & Medicare Costs - 7th Dec 16
Gold Bullion Price Buying Opportunity for 2017? - 6th Dec 16
Shariah Gold Standard Approved for $2 Trillion Islamic Finance Market - 6th Dec 16
THE Gold Play for 2017 - 6th Dec 16
Trump Sets The Stage For A Huge Gold Rally In 2017 - 6th Dec 16
BrExit Tsunami Claims Emperor Renzi's Scalp, Counting Down to End of the EU, Next? - 6th Dec 16
Failed EU - Means an Expanded Dictatorship - 6th Dec 16
Crude Oil Prices: "Random"? Hardly - 5th Dec 16
The Coming Stock Market Crash and WWIII - 5th Dec 16
This Past Week in Gold Market - 5th Dec 16
Stock Market Short-Term Correction Underway - 5th Dec 16
If Trump Doesn’t Do This, We Will Have the Great Depression 2.0 - 5th Dec 16
India’s Demonetization Could Be the First Cash Domino to Fall - 5th Dec 16
Our Future Economy, Jobs, Banking, And Governance - 5th Dec 16
Gold and Silver Bullion Buying Opportunity for 2017? - 4th Dec 16
First UK BrExit then Trump, Next BrExit Tsunami Wave to Hit Italy HARD Sunday! - 3rd Dec 16
The 10YR Yield and SPX Stocks Bull Markets - 3rd Dec 16
Gold And Silver – Do Not Expect Much Difference With Trump Compared To Obama - 3rd Dec 16
Gold, Currencies and Markets Critical 61.8% Retracements - 2nd Dec 16
Gold Junior Stocks Q3’16 Fundamentals - 2nd Dec 16
Adventures in Castro’s Cuba - 2nd Dec 16
We Are Putting Off the Inevitable - 2nd Dec 16
Macroeconomic Cycles & Demographics - A Fuse, An Explosive and The Igniting Catalyst - 2nd Dec 16
How Moving Averages Can Identify a Trade - 1st Dec 16
Silver Prices and Interest Rates - 1st Dec 16
America, is it Finally time for us to say Goodbye? - 1st Dec 16
Blockchain Technology – What Is It and How Will It Change Your Life? - 1st Dec 16
Burn the Flags, Can Trump Salvage The Sinking US Economic Ship? - 1st Dec 16
Will US Housing Real Estate Market Tank in 2017? - 1st Dec 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

$10000 Gold

U.S. Government Of, By, and For The Banks

Politics / Banksters May 27, 2013 - 04:18 PM GMT

By: Global_Research

Politics

Andre Damon writes: Five years since the 2008 financial meltdown, the speculation and fraud that caused the crash are back in full force in the United States. Flush with the $85 billion in cash printed up and handed to the banks every month by the Federal Reserve, business at the Wall Street casino is booming. Stock values are at record levels and so are bank profits, amidst declining wages and mass poverty.


Under these conditions, the banks have been pushing to rip up even the very modest restrictions on financial speculation, while broadening the scope of government bailout laws. The aim is simple: to give banks the maximum ability to speculate without constraint, while getting the maximum possible government assistance if and when the bubble collapses.

So close is the bankers’ grip on the reins of government that, no longer content to let their bought-and-paid-for politicians write laws, the banks have taken to doing the work themselves.

This was the case with a bill that passed the House Financial Services Committee this month, HR 992, which significantly expands the number of financial institutions eligible for coverage by the Federal Deposit Insurance Corporation (FDIC). The bill, which passed with majority support by both Democrats and Republicans, amends an earlier law that prevented financial institutions that trade swaps—a set of dangerous and largely unregulated derivatives—from coverage by the FDIC.

The New York Times reported Friday that, according to emails the newspaper examined, 70 out of the bill’s 85 lines were based on the recommendations of Citigroup, one of the largest US banks. Two paragraphs were inserted nearly word-for-word from an email written to lawmakers by the bank.

The bill restricts provisions in the Dodd–Frank Wall Street Reform and Consumer Protection Act, signed on July 21, 2010. This law was largely a publicity measure by the Obama administration, made to appear as a crackdown on financial speculation while in reality allowing the banks to go on with business as usual.

Instead of creating regulations, the Dodd-Frank bill merely mandated that a series of regulations be implemented at some point in the future by regulators. Nearly three years after the bill’s passage, the vast majority of these regulations have not been implemented.

Out of 135 bank regulatory rules mandated by the Dodd-Frank bill, only 40 have been put into effect. The act’s much-vaunted mandate for the creation of a “Volcker rule,” preventing deposit-taking institutions from carrying out financial speculation, remains a dead letter.

Moreover, many of the provisions of the Dodd-Frank bill, toothless as they were, are being scaled back by subsequent acts of Congress, such as HR 992, described above.

Even those regulations that have been implemented have been even further weakened by regulators to comply with the demands of the banks. Last week, the Commodity Futures Trading Commission voted to implement regulations on derivatives—speculative financial products based on other asset values—that were significantly weakened from those that were proposed under Dodd-Frank.

The Commission had initially proposed that the purchasers of derivatives be required to contact five banks when seeking to set the price of a contract. Under the new law, purchasers are only required to contact two banks, further tightening the monopoly of a handful of institutions that dominate the largely unregulated multitrillion-dollar derivatives market.

The bill likewise originally proposed that derivatives be traded on electronic exchanges similar to stock markets, so that buyers would have a better understanding of prices across the market, making price gouging by issuers more difficult. But the final rules allow for much of derivatives trading to take place over the phone, making it nearly impossible to regulate.

Despite a mountain of evidence—including a voluminous 2011 report by the Senate Permanent Subcommittee on Investigations—that the 2008 financial crash was directly linked to rampant lawbreaking by Wall Street, not a single executive at a major bank has been criminally prosecuted, much less gone to jail.

The Wall Street giants emerged from the financial crisis larger and more powerful than ever, and, as shown by government inquiries into JPMorgan’s $6 billion trading loss last year, their activities are just as speculative and parasitic as before the crash.

These factors, combined with the vast amounts of money being pumped into the financial markets by central banks make a new financial crash all but inevitable.

Throughout all this, the role of the government has been to cover up and facilitate the banks’ crimes, seeking to create the appearance of regulation, while allowing Wall Street to operate with impunity.

The main nexus between the banks and government is the Obama administration itself, which, with every new appointment, becomes ever more a government of, by, and for the financial oligarchy.

In January Obama appointed as treasury secretary Jacob Lew, who earned millions of dollars as the chief operating officer of Citigroup’s Alternative Investments unit, which made bets against the housing market as it collapsed.

This month Obama appointed Penny Pritzker, a hotel heiress and private equity firm operator, as commerce secretary. With a net worth of $1.85 billion, Pritzker is the wealthiest person in US history to serve in the president’s cabinet.

These developments demonstrate the impossibility of reining in the financial criminals within the confines of the present political system. The government and both parties serve as little more than errand boys for the bankers, who exercise a dictatorship over political life in the United States.

World Socialist Web Site

Andre Damon is a frequent contributor to Global Research. Global Research Articles by Andre Damon

© Copyright Andre Damon , Global Research, 2012

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife