Wednesday, October 28, 2009

The Coming "Council of Regulators"

The Federal Reserve could order a financial institution to sell a risky division or stop dangerous trading activity if the central bank determined there was a threat to the US financial system, under a draft law released on Tuesday.

The bill drawn up by the Treasury and the House financial services committee sets up a "Council of Regulators" charged with snuffing out systemic risks and gives the government and the Fed sweeping powers over financial companies at home and overseas.

The bill does not address how this "Council of Regulators" will attain supreme wisdom to rule on markets. Nor does it mention that the Federal Reserve denied, in the middle of the housing bubble, that there was a housing bubble.

And it comes nowhere near identifying the Federal Reserve's money manipulations as at the core of the business cycle.

Thus, what we have in the proposed "Council of Regulators" is one further step in the direction of total political control of the financial system.

This is not your granfather's America.

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