Posted on 01/22/2010 5:46:15 AM PST by mikelike
{SNIP}
...fire Turbo "I cheated on my taxes" Timmy - after all, the recently-announced rules should prohibit him from receiving his paycheck anyway - and replace him with Paul Volcker.
Mr. Volcker can then do what Congress won't through the back door.
You want to be a Primary Dealer and bid on Treasury Auctions? Cool - divest first, then come talk with us. Until then we'll run our auctions directly and you won't make the FICC revenues off your arbitrage (which is a huge, captive, and virtually guaranteed "free money" source.)
If the banks still don't like the rules that President Obama wants then how about if our new Central Banker is PAUL VOLCKER of Treasury who then issues non-debt-based currency directly?
And don't tell me he can't. He most certainly CAN without passing one new law:
United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts. (31 USC Sub IV Ch 51 Sub 1 Sec 5103)
Unfortunately for The Fed they screwed up when they passed The Federal Reserve Act and failed to void the ability of Treasury to issue its own non-debt-bearing currency which is also legal tender. It requires only an executive order to implement this and there is nothing Bwarney Frank can do about it.
Doing that would effectively emasculate both The Federal Reserve and the big banks that have all sorts of credit outstanding through The Fed, as it would destroy the backstop that The Fed enjoys. Suddenly The Fed would be "just another bank" with a metric crapload of used dogfood on its balance sheet in the form of Freddie and Fannie MBS that also don't have a full faith and credit guarantee!
IF President Obama is serious about fixing these problems, this is how he addresses it. Either play ball - right here and now - "OR ELSE."
Oh, and start using the words "indictment", "prosecution" and "prison" too - or just perp-walk a few of those banking executives on Wall Street.
THAT will convince me that our President is serious.
Denninger shows him the way out from under their grip. Obama's paradox is that by solving the economic crisis as Denninger suggests, he'd actually be curing a long standing cancer in America - the Fed. The question is - does Obama have a benevolent intent? My money's on No.
The only thing that Denninger misses here is the need to see a lot of folks from Moody’s and S&P wearing that same fetching shade of orange.
Fannie and Freddie are make work ACORN job sites that lose tens of billions of taxpayer money which goes right into Goldman Sachs pcokets.
For now it’s just words. It’s hard to imagine a man who has surrounded himself with the such men as Ruben, Geithner, and Bernanke of breaking the power of the banking cartel. The proof will be in the pudding.
The first political party to offer real reform of the system wins the popular vote.
obama is neither nenevolent or smart- he is malevolent and cunning
His bank blather is a community organizing strategy, to find and lead and rile up popular discontent against the banks and “fat cats” instead of recognizing his own ideological and practical failures.
This strategy of harnessing populist underdog rage against “the capitalists” has worked in communist revolutions of the past. I think this smack talk of obama’s has exhausted itself already, except for ACORN, permanent welfare class, and SEIU mindbots.
Americans (at least 80% of us) are not peasants scratching in the dirt and seething with rage at rich people, despite obama telling us we are.
Probably going to hire Arnuld S. as his enforcer, just for good measure.
Karl Denninger upset with Karl Marx, proceless!
The first political party to offer real reform of the system wins the popular vote.
Fix the problem, don’t fix the solution. Privatize Fannie and Freddie and reward those who did not need nor want TARP. We have it backwards. The Govt, through CRA, was the cause of our housing bubble. Remember, Greenspan, Rubin and Clinton launched this scheme right after Clinton signed the Welfare Reform Bill and the Dot Com bust. If you punish those that managed their money well under the Govt rules of compassionate corruption you will be left with more incompetent corruption. If you want efficiency in banking, which brings lower cost of capital, you don’t punish those that have demonstrated wise use of capital. Punish those that pissed away capital and put them under the yoke of financial competition. The Kenyan Kid needs a populist enemy. He is not proposing anything good for our economy.
They will redouble their efforts in an attempt to overwhelm both the American people and resistant congressmen.
Wow, just saw a news flash on CNBC that Bwany Fwank wants to abolish Fannie and Freddie as they exist now! Pivot, head-fake...?
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