It’s official: the Obama administration intends to nationalize the entire financial sector. If there were any lingering doubts as to the intentions of President Barack Obama and Treasury Secretary Timothy Geithner, they were dispelled by today’s announcement detailing the Treasury Department’s new “framework for regulatory reform.”
President Barack Obama is in the middle of his national tour to convince the American public that “we’re doing everything we can to reduce that deficit.” President Obama has been on The Tonight Show, 60 Minutes, held town meetings in California and conducted the March 24 prime-time press conference on the economy. The problem is, he revealed in that March 24 press conference, that “everything” now means the same as “nothing.”
The American people are understandably outraged to learn that the American International Group (AIG), a corporate giant that has received almost $200 billion in total TARP/TALF funding, has recently paid $165 million in retention bonuses to its top executives. The fact that these payments were made to fulfill already-existing contractual obligations and that most of the recipients have reportedly indicated a willingness to return the money has not done much to quell the public anger. After all, a company in such dire financial straits to require vast infusions of federal bailout funds should not be giving its employees millions of dollars in bonuses, period.
The Obama administration’s long-awaited proposal to remove so-called “toxic” mortgage-backed assets from U.S. banks has finally been unveiled, to huzzahs across the globe. Stocks from Tokyo to New York rallied as investors expressed relief that finally, somehow, the U.S. government was going to take care of the problem. But just what does Treasury Secretary Timothy Geithner intend to do, precisely?
Newspapers are fixated upon $160 million in bonuses given to American International Group (AIG) executives. And it’s nice to know where the millions are going (note: the bonuses could have been cancelled had the federal government let the company go bankrupt, as officials should have). But where are the trillions in TARP, TALC and Federal Reserve Bank bailout funds going?
A United Nations panel is about to recommend that the world abandon the dollar as the world’s reserve currency, according to a Reuters report. Next week, the UN will propose that the dollar be replaced with a “shared basket of currencies” similar to the old Ecu (European Currency Unit) of the former European Community (the predecessor to the European Union), which was replaced at parity by the euro in 1999. According to Avinash Persaud, a member of the UN panel, now “is a good moment to move to a shared reserve currency."
If there were any lingering doubts as to where the Federal Reserve’s expansive monetary policies are leading, they were dispelled by yesterday’s shocking announcement that the Fed intends to purchase more than $1 trillion in additional debt, which it will pay for by printing new money.
All of the feigned outrage in Washington over the millions that AIG has been doling out in bonus payments, and the tens of billions in bailout monies that it sent directly to major creditors, fails to impress. Beyond the smokescreen of How-dare-they’s, emanating from Republican congressmen and the Obama administration alike, loom larger questions which no one seems willing to ask: how dare our elected leaders give almost $200 billion taxpayers’ dollars to AIG in the first place? And how dare they presume to nationalize a private company like some two-bit cadre of Marxist putschists?
President Barack Obama has just recently released his $3.55 trillion fiscal 2010 budget, and already there's full employment among all the people who matter to officials in Washington, D.C. A front-page story for the March 2 Washington Post began: "President Obama's budget is so ambitious, with vast new spending on health care, energy independence, education and services for veterans, that experts say he probably will need to hire tens of thousands of new federal government workers to realize his goals."
If the talk at the G20 gathering in England is any indication, the hard-beset global economy is stuck between the devil and the deep blue sea. From the American perspective, as articulated by Treasury Secretary Timothy Geithner, what the global economy needs is the same sort of placebo the American government has been administering domestically, to the delight of the ruling classes but the muffled dismay of the middle-class tax base: more stimulus spending.
Official Washington is an a tizzy over new revelations, courtesy of the Wall Street Journal and dutifully amplified by other news outlets, that as much as $50 billion of bailout money sent to ailing mega-insurer AIG was funneled to at least two dozen U.S. and European banks.