Tuesday, February 24, 2009



People who should know better have been speculating publicly that the government might need to nationalize our largest banks. This irresponsible chatter is causing tremendous turmoil in financial markets. The Obama administration needs to make clear immediately that nationalization -- government seizing control of ownership and operations of a company -- is not a viable option.

Unlike the talking heads, I have actually nationalized a large bank. When I headed the Federal Deposit Insurance Corporation (FDIC) during the banking crisis of the 1980s, the FDIC recapitalized and took control of Continental Illinois Bank, which was then the country's seventh largest bank.

... the issue is if creating currency should be in the hands of private banks ...
... or not ...
... the american system thinks it is ...
... others think currency is a strategic issue like defense and justice ...
... so they think the private greed ...
... good for competition in business ...
... is distructive whenever it gets to manipulate the markets and the currencies ...
... for its own benefit instead than for the community benefit ...

... creating currency puts banks power above governments ...
... now we have to determine if the constitutions ...
... give governing power to the people or to the bankers ...
... and act accordingly ...
... here we are not talking about nationalizing regular banks ...
... that is a choice of every single country ...
... depending upon their economic model ...
... determined by their national sovranity ...
... but here we are talking about government treasuries ...
... getting back the control of an "honest" currency ...
... where no shareholder voltures profits ...
... from lending to the governments their own money ...
... milking the cow of the planet ...

... so lets start nationalizing the federal reserve ...
... and convert public debt into inflation ...
... re-establishing the "real" value of the dollar ...
... this would permit the government ...
... to finance a new deal ...
... out of inflation instead than out of debt ...

... chances are that the exchange rates may not even be affected too much ...
... since the whole western world needs strong devaluation ...
... to prevent another 1929 crash ...
... and no, we have never nationalized banks ...
... but there is no need of nationalizing experience ...
... to compute the natural logarythm of 2 ...
... and the doubling time of public deficit ...







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