Financial Amends – US Banking Industry

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What a mess!

It has been proven without doubt that the financial industry cannot be trusted to regulate themselves. Therefore the government must set strict standards upon all our financial institutions.

It’s unconscionable to think of the amount of greed that filtered through the whole of the US financial system.

The only moral high ground for these institutions is a .001% tax put upon all Wall Street Transactions.

This money shall be put aside yearly as insurance for any future industry melt down.

In the future the financial industry will be required to bail themselves out.

The president must also appoint a Financial Czar who is free and independent of these financial institutions for at least 3 years and demonstrates no political bias. His or her salary and staff should be a modest amount paid for by this transaction tax.

Further, the interest made from this tax, placed into secure government bonds, will be applied towards a national jobs training fund.

Restitution must also be made for bad behavior. What a terrible burden this has put upon the lives of the American People and our children’s future.

For the immoral act of excessive greed and all the tools used to perpetrate scams, dirty dealings, outright lies and the hiding of ill gotten gains; islands or abroad, a cap on all profits which monies shall then be distributed towards the public good; education, health care and affordable housing until all markets have recovered to the financial state of 2005.

You can not gamble or speculate with the lives of the American People to the point of disrupting the majority of the public’s security, safety and happiness without making amends.

If these acts are not implemented soon, the public will forget and we will face this same situation again in the future.

Greed has it’s price.

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8 Comments

Filed under Business, Congress, History, Justice, News, Politics

8 responses to “Financial Amends – US Banking Industry

  1. I appreciate your insight and your interesting take on this most complex issue. However, I strongly and respectfully disagree with your conclusions. Annually, the SEC operates on a 100 billion dollar budget. Most of the workers are not tied to the financial industry in any ostensible way – they are fresh graduates. Notwithstanding, as in most government institutions, venal profiteering is rampant. Madoff stole apparently in upwards of 50 billion dollars even when damning evidence was provided to the SEC for over five years. There is no way of ensuring that those placed into powerful positions will not abuse their power in the same ways as the elitist bankers. In fact, the gargantuan responsibility and power vested in the position of a “financial czar” would surely attract many devious or malevolently motivated minds. The answer is not in more government regulation. The answer is abolishing the Fed and fractional-reserve banking system. The wholesale collapse we are witnessing would not be nearly as widespread if these two horrible institutions were slaughtered.

  2. I share Ron Paul’s and Peter Schiff’s vision, but President Obama and the majority Democrats in the House and Senate will have none of that. The Republican got the government off their backs through deregulation, but when push came to shove they bailed out their corporate buddies and abandoned the Constitution. There’s no turning back.

    The majority of the American People do not seem to mind either way; the streets are empty of protesters and the jails houses are still in want of white collar crooks. I’m afraid we are stuck because of human ignorance and greed.

    I believe my solution at this time is the best especially, the education component and job funding and protections.

    We need to start again and we have that opportunity. Once these amends are made and the financial system is restored to at least a 2005 economy these provisions can begin to be withdrawn. By that time I envision we will have a well educated public and a safety net will be in place for any future financial shenanigans.

    We must tax the things we like least and support the things we admire most.

  3. I understand your position more completely now. I’m sorry if I came off as patronizing. Although I still don’t agree, your solution is very practical for the time being and a much better alternative to any thing else that may have a chance of passing in this government. I would only hope that if such a plan were implemented there would be a definitive time frame for its existence. Too often well-meaning government positions and programs are placed into policy with the intention of a short-term solution, only to become festering long-term sores… I’m thinking particularly about pretty much everything we have in government today that wasn’t there in 1776. I just found your blog yesterday. It looks great, and you seem to have some amazing content I haven’t been exposed to yet. I’ve fallen in love with the painting of Andrew Jackson slaying the 2nd National Bank. Thanks much for your ideas and for providing a great venue for discussion.

  4. Thanks for the compliment – other than my own occasional amusement I try to catch the things that fall into the cracks, important things I believe the the media ignores.

    RE: time frame – markets are markets – but the .001% transaction tax would have to stay forever as insurance for any future melt down. The American people as a whole should never have to bail out a gambling casino, a.k.a. Wall Street or the Banks.

    Further, if that fund found itself set up in a way that it might be abused The Treasury Secretary or Financial Czar could decide what house fails and what house doesn’t, based on performance and intentions, much like what happen to Lehman Bros.

    I also see it as the beginning of a separation of the Federal Reserve from our government. If banks have a net to cover their own losses they have less say over our government, but one thing is certain they can’t be trusted to manage the tax or the laws that surround it.

    The past has demonstrated we must be constantly vigilant, we have to assume at all times that both domestic and foreign banks are going to sell us out at every turn, if we remain ignorant of our financial systems, of our laws and our history we will be made subjects to an oligarchy of the elite, therefore education has to be supported to avoid the pit falls. I would go as far as to suggest some of those taxed funds not only be put towards jobs training, but financial education as well.

    The window of opportunity for passing such an act is short, we need to move fast or we will be destine to relieve this scenario over and over again.

    I’ve written my Federal Senator and Representative with such a proposal and anyone who introduces this on the floor of the Senate or House I believe will be an instant hero.

  5. I will still point out that your program is very similar to the federal reserve in and of itself. The merits for the federal reserve, as originally introduced, were specifically based upon being a “lender of last resort”. The fed is essentially exactly what you are describing, a safety net. I also do not understand exactly what you mean when you say that we should attempt to separate the federal reserve from the government, in fact it is already separated – it’s not part of the government at all, except in name and in the fact that the president gets to appoint the chairman.

    What Ron Paul, Kucinich, and others want, is for the responsibility in printing the money to go back to the treasury, as it was before 1913. Another alternative means would be to completely abolish any government control over the monetary supply, and also any monopoly privileges granted to external private banks (the current federal reserve), and instead allow private individuals or businesses to coin or print their own currencies which would then compete in the open market.

    The inevitable result would be that gold and/or other precious metals would be chosen, or more probably in today’s world, digital gold (actual 100% backed representations of gold.. these already exist today). History proves this much, for in the absence of any government enforced monetary monopoly, gold is always the best choice. No other good comes close to maintaining a consistent supply. It’s fungible, you can divide it into parts without hurting the value of the resultant pieces, and it’s long-lasting.

    In conclusion, I don’t understand how your program would really differ in any major way from the present federal reserve system… except for the fact that the fed charges larger amounts of interest than .001% for every dollar they put into circulation, and also more importantly, that the federal reserve is completely unregulated, hopefully your czar would at least have to deal with public scrutiny. Ben Bernanke is your current financial czar.

  6. P.S. I like the education part… We should most definitely stop allowing the FED to charge us interest right now. The reason the federal income tax was initially introduced was just to pay for the massive amount of interest our government owed it. We could stop paying interest and put some of that money towards education; however, I’m always suspicious of government-run education. They mainly teach you to fall in line and to follow the shepherd. Instead, we should stop paying the interest, and abolish the income tax. I’ll use my own extra money to buy the books of my choice, and hopefully one day use that money to pay for the education of my children that I choose.

  7. No, the .001% tax doesn’t go to the Federal Reserve, it goes into a Government Trust Fund – preferred safe US Savings Bonds – and is derived from every Wall Street transaction.

    If you buy, sell, or trade stocks you pay a .001% transaction tax on every dollar spent.

    Those bond accumulate, the yearly interest is applied to a national jobs training fund and a national financial education fund.

    The Fed can not touch those bonds.

    I agree with the gold – we need to know how much our government has and where it is kept.

    I read one report that the banks own 15% of all the worlds gold – we also need to know how they got hold of that amount.

  8. The Federal Income Tax was meant to tax money above $5000 – it’s never been adjusted for inflation – $1.00 in 2009 would be worth $120 in 1913.

    That means the only income that should be taxed is $600,000 and above.

    ….
    Education should always be a parental choice. The German system seems to work the best IMO.

    All children are given a certain amount of funds, if they apply to a private school that charges more than the government run schools the parents pay only the difference.

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