Global Economist, Worldwide Speaker, and Author - www.PaulFDavis.com
The Financial Crisis and the Role of Federal Regulators hearing which took place on October 23, 2008 was rather revealing.
Ms. McCollum called Mr. Snow, along with the supposedly financially astute U.S. Treasury and American banking directors on their decision to chainsaw and cut through red tape deemed a regulatory burden. Of course it was these very regulations that most protect the American people against Wall Street and Washington incompetence.
OTS director James Gilleran, Jim McLaughlin of the American Bankers Association, Harry Doherty of America's Community Bankers, FDIC Vice Chairman John Reich and Ken Guenther of the Independent Community Bankers of America all applauded their regulatory cuts just a couple years ago. Today we know it to be nothing more than ignorance and incompetence, as they at the top of the banking industry profited handsomely from deregulation.
A free market isn't the same thing as an unregulated market. The private sector and the government play two different but very essential roles in our economy, and there is a healthy tension between the private and the public interest, and that is the balance we need in the banking industry.
When financial regulators decided to let the private markets run free, the public interest was left defenseless to the greed of Wall Street. Mr. Snow however when he was the Treasury secretary in 2003, let top officials at the U.S. Treasury deregulate the banking industry. Today, his poor supervision and oversight has destroyed the American economy.
The Director of the office of Thrift supervision, James Gilleran and the comptroller of the currency Tohn Hawke are no less guilty. The chain saw these men used to mutilate banking regulations is very telling indeed and precisely what has bankrupted the U.S. economy as it has been allowed to run wild free of necessary regulation and oversight.
If the officials at the U.S. Treasury cannot be trusted, what hope does that give the American people in their currency and government? I say buy gold, Euros, Chinese Yuan, and do it fast while the dollar still has some value during the credit crisis.
When OPEC starts preferring Euros, Japanese Yen, and Chinese Yuan the dollar will be nearly dead and left in the dust.
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Mr. Snow and those who foolishly believe in his form of Treasury oversight, will be left in the cold very soon when the dollar dies. Massive deregulation and cutting the banking industry laws to shreds will have dire consequences, which no government bailout or media spin can hide.
The U.S. government itself according to the Financial Report of the U.S. Government and Government Office of Accountability (GOA) is currently at a $56 trillion deficit.
The Wall Street credit rating agencies are a sham. Unregulated markets and voluntary regulation has failed.
Meanwhile the Federal Reserve Banks (FRBs) have admitted to fragile information systems controls jeopardizing its banks as hackers lay hold of sensitive financial information. Consisten unauthorized access to FRBs is devastating the banking system.
To make matters worse the GOA recently revealed that the social security numbers of the American people in 45 states are widely available on online records at county offices, further jeopardizing our financial security.
That being said, what else can America do but embrace global internalisation of currencies as the Bank of International Settlements and European Central Bank are moving toward.
Given these tough economic times and troubling governmental scenarios, buy gold, Euros, Chinese Yuan, and do it fast while the dollar still has some value during the credit crisis.
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