The greatest problem we have is misinformation. People simply do not comprehend why and how the economic policies of the post-war era are imploding. This whole agenda of socialism has sold a Utopian idea that the State is there for the people yet it is run by lawyers following their own self-interest.
The pensions created for those in government drive the cost of government up exponentially with time. The political forces blame the rich and this merely creates a class warfare with no resolution for the future. Even confiscating all the wealth of the so-called rich will not sustain the system. Consequently, we just have to crash and burn and start all over again.
The Guardian reported that some 50,000 people marched in London to protest against austerity. They cried: “Who is really responsible for the mess this country is in? Is it the Polish fruit pickers or the Nigerian nurses? Or is it the bankers who plunged it into economic disaster – or the tax avoiders? It is selective anger.”
The exploitation by the bankers has been really a disaster. They have been their own worst enemy and in the end, they have become the symbol that inspires class warfare if not revolution. They are not the representatives of those who produce jobs. They are merely those who wanted to trade with other people’s money for free. When the banks win, it is their’s, but any losses are passed to the taxpayers. Bankers should be bankers – not hedge fund managers who keep 100% of the profits using other people’s savings.
The repeal of Glass Steagall (please see Editor’s Note at the end of this article) was the final straw that broke the back of the world economy. That was the single worst act that could have ever been done and we are now paying the price in spades.
The collapse from 2007 has wiped out even the liquidity of the markets. The second worst act was the creation of the euro when the real goal was the federalization of Europe from the outset. That undermined the entire European banking system and has led to a serious undermining of the entire global economy.
The solutions from politics will always be the same – grab more power.
We are in a downward spiral of liberty and how far we go down this path to the future will be determined by the people and if they at least WISE UP and see this is NOT class warfare, it is the PEOPLE Against GOVERNMENT. This is why I say career politicians are dangerous for they can be bought way too easily as Clinton was to open the flood gates for the bankers.
This is not going to end pretty. The question is when does society wake up?
Just how high will this price be that we have to pay? The banks and political pundits will blame the rich and the idiots will cheer – get them.
What will happen when there is no more wealth to hunt?
We end up with a communist state by default – no wealth, just career politicians who blame everyone but themselves.
by Martin Armstrong of Zero Hedge
Editor’s Note: Definition of ‘Glass-Steagall A
An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment banking business. The Glass-Steagall Act was sponsored by Senator Carter Glass, a former Treasury secretary, and Senator Henry Steagall, a member of the House of Representatives and chairman of the House Banking and Currency Committee. The Act was passed as an emergency measure to counter the failure of almost 5,000 banks during the Great Depression. The Glass-Steagall lost its potency in subsequent decades and was finally repealed in 1999.
Apart from separating commercial and investment banking, the Glass-Steagall Act also created the Federal Deposit Insurance Corporation, which guaranteed bank deposits up to a specified limit. The Act also created the Federal Open Market Committee and introduced Regulation Q, which prohibited banks from paying interest on demand deposits and capped interest rates on other deposit products (it was repealed in July 2011).
The Glass-Steagall Act’s primary objectives were twofold – to stop the unprecedented run on banks and restore public confidence in the U.S. banking system; and to sever the linkages between commercial and investment banking that were believed to have been responsible for the 1929 market crash. **The rationale for seeking the separation was the conflict of interest that arose when banks were engaged in both commercial and investment banking, and the tendency of such banks to engage in excessively speculative activity.**
The Glass-Steagall Act’s repeal in 1999 (by President Clinton) is believed in some circles to have contributed to the 2008 global credit crisis. Commercial banks, around the world, were saddled with billions of dollars in losses due to the excessive exposure of their investment banking arms to derivatives and securities that were tied to U.S. home prices.
The severity of the crisis forced Goldman Sachs and Morgan Stanley, the last of the top-tier independent investment banks, to convert to bank holding companies. Coupled with the acquisition of other prominent investment banks Bear Stearns and Merrill Lynch by commercial banking giants JP Morgan and Bank of America, respectively, the 2008 developments ironically signaled the final demise of the Glass-Steagall Act. (source)