9 June 2008
This is not the way
Posted by Joy Bischoff under: Constitution in Peril .
We complain and say something has to be done about the financial crisis and now when the NY Fed chief has an idea and wants to take action, I complain. The problem is, a unified global banking system is one of the most powerful tools possible to bring about globalism and usurp our sovereignty, thus greatly endangering our Constitution. Fiscal responsibility and wise free market management like drilling for oil is the answer, not more government, and an international one at that.
NY Fed chief urges global bank framework
By James Politi in Washington and Gillian Tett in London
Banks and investment banks whose health is crucial to the global financial system should operate under a unified regulatory framework with “appropriate requirements for capital and liquidity”, according to Timothy Geithner, president of the Federal Reserve Bank of New York.
Writing in Monday’s Financial Times, Mr Geithner, a key US policymaker throughout the credit crisis and one of the main architects of the rescue of Bear Stearns, says that the US Federal Reserve should play a “central role” in the new regulatory framework, working closely with supervisors in the US and round the world.
“At present the Fed has broad responsibility for financial stability not matched by direct authority and the consequences of the actions we have taken in this crisis make it more important that we close that gap,” Mr Geithner says, in an excerpt of a speech to be delivered today at the Economic Club of New York.
The credit crisis has heightened pressure on US policymakers to consider sweeping changes to a regulatory system for financial institutions which has commercial banks such as JPMorgan Chase and Citigroup regulated by the Fed and investment banks such as Goldman Sachs and Lehman Brothers more loosely regulated by the Securities and Exchange Commission.
Mr Geithner called the system “a confusing mix of diffused accountability, regulatory competition and a complex web of rules that create perverse incentives and leave huge opportunities for arbitrage and evasion”.
However, legislation to overhaul US financial regulation is unlikely to start advancing through Congress until next year when the new administration takes office.
8 Comments so far...
Mac Says:
9 June 2008 at 9:08 am.
Ij think it was here awhile back that someone wrote about the EU accomplishing what Hitler couldn’t do. Finances instead of war conquered Europe. Now they are trying to do the same thing with the NAU. An international banking authority would push along that agenda very fast.
Angela Rogin Says:
9 June 2008 at 9:33 am.
I would have thought this was great, at least they are trying to do something. But after reading Joy’s opinion then Mac’s comment, I’m not sure. I’ll have to think about it. Just reading the article itself makes it sound like a great thing but you never know.
The Realist Says:
9 June 2008 at 11:29 am.
My jury is going to stay out on this for awhile. Not enough info. Maybe we do need something like this because things sure aren’t working the way they are and the world is a different place than it use to be.
Carrie Says:
9 June 2008 at 11:37 am.
This is an easy one I think. The answer is right down the page from George Washington.
Tis our true policy to steer clear of permanent alliances with any portion of the foreign world.
The Realist Says:
9 June 2008 at 11:47 am.
Maybe that was true then but we are living in a global world now and there is no getting around it.
T. Fan Says:
9 June 2008 at 1:07 pm.
Sure Realist, some things change but not the basic fundamentals. Everyone knows that whoever holds the purse strings controls things. We would be tying ourselves into one global community and Carrie is right. That is one mother of a foreign entanglement.
Benjamin Says:
9 June 2008 at 2:41 pm.
I’m sorry but what Joy wrote makes perfect sense no matter how reasonable the article sounds. The end result of that kind of system would be financial bondage to an international system that would govern from behind the scenes. Anyone who doesn’t understand that hasn’t studied the issue enough because it is just flat out economic fact.
Ghost Says:
9 June 2008 at 6:11 pm.
The key to understanding the article is the part about the Fed playing the central role. A central bank is how socialism is set up because it controls regulations and money and that is a strangle hold on everything else. The article does seem so reasonable just like most of you are saying if you don’t get what is going on. Because it seems so reasonable it will probably get a lot of support because everybody wants something done and at this point will settle for about anything that promises change. But change isn’t always good.
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