All about ideas…

My letter to the President

with one comment

President ObamaBREAK UP THE MEGA-BANKS! Read “13 Bankers.” Limit bank size to $100 Mil and support the Volker Rule. SUPPORT Prof. Lessig’s Change Congress proposals. Give Congress back to the people, rather than fostering complete ownership of the US economy and Congress by oligarchies.

Andy Jackson bucked the Senate (aka the Millionaires Club – sound familiar? ) and Biddle to decrease the power of bank oligarchs. TR took on JP Morgan’s railroad monopoly to ensure competitiveness in the American economy and won; then he went on to break up the monopoly of Standard Oil, ushering in an era of growth.

FDR took on the banks who caused the Great Depression with their unbridled speculation and created a regulatory system that kept the financial system sound for most of the following 60 years.

The Dodd bill before the Senate is a sham in far too many respects. It does little to prevent the kind of crisis experienced on Loyd Blankenfein, CEO of Goldman Sachs2008…and contains far too many “carve outs,” exceptions, and regulatory discretion (so how did that work out over the last decade?) Numerous studies show that any bank with more than $100 mil in assets does nothing – zip – to increase global competitiveness, encourage real economic growth, or make our financial system globally competitive and safe. On the contrary, studies how, megabanks actually harm our financial and business health.

Mr. President, if you really care about business, the U.S. economy, and average working-class people, you will demand a much better, much stronger bill than the current Dodd bill. You will over-rule those in your administration who argue for the near status quo, with only few minor tweaks. Those people do not argue for the people of the US. They argue for the oligarchs. They still remain captured by the ideology of “whatever is good for banks is good for the economy.” Biddle and JP Morgan argued the same ideology, but time proved them wrong. Monopolies and regulatory “carve outs” and slanted tax structures that provide for corporate welfare harm the overall economy and depress entrepreneurialship.

If you care about “putting the people first,” you will support Prof. Larry Lessig’s Change Congress ideas and the campaign finance bill put forth by Sen. Byron Dorgan.

Either this country belongs to the oligarchs – those people mentioned in Citibank’s 2007 financial analysis – or it belongs to the “People.”

You have to take a stand. Are you with the people who want – and deserve – opportunity or are you with the oligarchs who have bled the country to satisfy their own, albeit greedy, interests?

We, the People, demand government be given back to the people by definitively breaking the campaign financing link between oligarchs and elected officials, and to set our entrepreneurial community and economy free from the risk and speculative forces dominating Wall St. We demand open and free competition among and within industrial sectors. We demand the elimination of corporate welfare through our tax code and the basic entrepreneurial right, free of monied influence to determine policy and legislative code.

If you cannot or will not do these two things, then how are we, the American people, to believe in you?

If you cannot – or will not – give the American people back our government, free from overwhelming lobbyist influence and money in which the appearance and actuality of control by oligarchs controls policy, you betray your trust amongst the People. And in that failure, you give rise not just to Republicans in the next election but to continued crises and the economic decimation of the People.

Mr. President, we, the People, deserve better than to be captured by oligarchs.


One Response

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  1. Any regulatory regime changes that leave in place a powerful Federal Reserve with the ability to inflate the money supply without any real institutional restraint is a sham.

    But, then, the administration is pro-Fed all the way. This makes them, in my opinion, enemies of progress and the people. They’re the bad guys. They’re villains.

    Surely, Val, you’re coming to realize this. I understand he desire to hold out hope. But hope now seems more like delusion. Appointing Geithner was the first sign. Reappointing Bernanke was the last straw.

    The DC bank cartel (aka, the legislative and executive branches) are performing a Kabuki dance by focusing on behavior and speculation during he bubbly boom and ignoring the root causes of that boom: inflationary monetary policy and a history of creditor bailouts that depressed risk premiums.

    The “reform” literally doubles down on everything wrong. It’s beyond a sham. It’s downright treason.

    John Papola

    May 6, 2010 at 7:19 AM

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