Larry Summers, engineer of the housing bubble and gold price suppression, is returning to power on Monday. Ditto, the folks who lost $3.3 trillion at the Pentagon.

Now Paul Volcker, former Fed Chairman appointed the leader of the new Administration’s economic recovery team, is popping out a plan to redo our financial system. Turns out the “solution” to what ails us is to give vastly increased powers to the very parties who perpetuated the problems.

A government that does not have financial sovereignty is not a government. It is a bureaucracy that represents private interests that control through debt and invisible force.

As Bill King says, “You just could not make this stuff up.”

Volcker Presents Plan to Alter Global Financial System
Washington Post (15 Jan 2009)

Volcker’s Recommendations to Improve the Global Financial System
Group of Thirty: Financial Reform

Paul Volcker’s Wikipedia Bio
wikipedia.org

Paul Volcker’s Resume
Financial Economics Today

12 Comments

  1. Seems like every has been or wanne-be hoodlum is coming out of the woodwork with a “plan” to rescue. More of the same old same old B.S.
    Found “Reality Sandwich” website visa vie Lynne Hayes. I haven’t finished Part II yet, but I’ll bet their plan tops Volker’s anyday:

    Reiventing Money: An Eco-systemic Approach (part I)
    http://www.realitysandwich.com/reinventing_money_ecosystemic_approach_part_1
    Part II
    http://www.realitysandwich.com/reinventing_money_ecosystemic_approach_part_2

  2. http://www.nytimes.com/2009/01/18/business/18bank.html?_r=1&emc=eta1
    “Bailout Is a Windfall to Banks, if Not to Borrowers”

    “…Most of the banks that received the money are far smaller than behemoths like Citigroup or Bank of America. A review of investor presentations and conference calls by executives of some two dozen banks around the country found that few cited lending as a priority. An overwhelming majority saw the bailout program as a no-strings-attached windfall that could be used to pay down debt, acquire other businesses or invest for the future.

    Speaking at the FBR Capital Markets conference in New York in December, Walter M. Pressey, president of Boston Private Wealth Management, a healthy bank with a mostly affluent clientele, said there were no immediate plans to do much with the $154 million it received from the Treasury.

    “With that capital in hand, not only do we feel comfortable that we can ride out the recession,” he said, “but we also feel that we’ll be in a position to take advantage of opportunities that present themselves once this recession is sorted out.”

  3. Hi Cathrine, this action is also necessary!
    LaRouche: Use Citibank Breakup to Rebuild National Banking System
    January 19, 2009 (LPAC)–Lyndon LaRouche called today upon the incoming Obama administration to use the breakup of Citibank into two parts, as announced on Friday, to take a crucial first step toward salvaging the national banking system by protecting the legitimate and necessary functions of chartered banks, as he had originally called for that in his Homeowners and Bank Protection Act of 2007.

    LaRouche said that the Obama administration should move to separate out and protect all the chartered commercial banking functions of the mega-banks, like Citibank, and let the other components be up for grabs. It is time to put an end to the idea of bailing out foreign banks, through taxpayers’ money, while allowing American banks to be dumped.

    There are a number of other big American banks, LaRouche continued, beyond Citibank, that are going to have to be put through the same dismantling, with protection for the chartered bank functions. By putting two or three of the big American banks through this type of reorganization, under Federal protection of the chartered functions, we can build a system that is, at its core, a national banking system. This is an urgent step that must be taken, right away. The incoming Obama Administration can act on this initiative on day one. The breakup of Citibank is the precedent for how to proceed.

  5. Catherine, this comment may not be fitting here but could not find an appropriate article. I keep coming back to the missing money, and money that is in my opinion stolen in broad daylight. I have been in the financial planning business for 15 years and have witnessed gross abuses which have resulted in significant fines and penalties for brokers and firms. A recent example of this would be Bear Stearns who after their economic hit received government funds, and two weeks later paid the SEC a 27 million dollar fine. This in my opinion is outright theft, the burden always ends up with the taxpayer and we seem to pay the same bill over and over again.

  6. Chris:

    I am with you. I keep coming back to the missing money again and again. The algebra of time and money does not lie. There is a drain going on that is an inherent part of what I call the “slow burn.” The financial system is engineering drains through the federal credit and monetary system in a myriad of ways and they are reaching unbearable levels. For many years, I would not go back to helping clients until I had a framework for this process. Here an article that was written at the time I finally felt I had the gist of the system: http://www.scoop.co.nz/stories/HL0408/S00277.htm

    Keep up the good work,

    Catherine

  7. So what’s going to be the situation under Obama?
    My guess is we will have “transparency” for hundreds of billions, lots of hoopla, and that’s plenty of opportunity for “news” about “The New New Deal”, while trillions are disappearing. Keep your eyes open.

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