On Thursday, Obama will return to Cooper Union in New York where he announced during the 2008 campaign his intentions to reform America‘s financial institutions. He is expected to announce a major overhaul of the regulatory system dealing with financial markets. To prime the pump, so to speak, the FCC has filed a criminal complaint against the investment giant Goldman Sachs. A number of legal experts have questioned the merits of the government case, some suggesting that the charges may be politically motivated. Whatever its merits or outcome, the case will be used to further vilify the banking and investment industry to promote public opinion in favor of more stringent regulations.
Control over the financial sector of the American economy is essential to the long-range plans of President Obama and his progressive supporters to transform America into an Americanized version of European Socialism. With the nominal control he already has over energy, health care, education, housing and transportation through bureaucratic regulations built up over the past century he only has a few more to go and his dominance over the nation’s economy and its citizens will be complete. One way of viewing his presidency in the short time he has been in office is that he is merely putting the finishing touches on the work done by progressives (American socialists) since the Administration of William McKinley.
Of the remaining major hurdles still ahead for the Democrats before the November elections, Cap and Trade, Comprehensive Immigration Reform, and finance reform, finance reform will probably do less damage to the Democrat Party than the other two. Most of us do not understand the intricacies of macroeconomics and it is easy to fall prey to the MSM and Democrat propaganda demonizing the banking and investment industry. There is little comfort in the knowledge that the average member of Congress understands basic economics even less.
Some Republicans are already dusting off the slogan used to pass the bailouts and stimulus packages of the past two years, “something has to be done”. According to Reuters, the “legislation under discussion would impose the sharpest regulatory crackdown on banks and capital markets since the Great Depression”. It is highly doubtful that Senate Republicans will be able to filibuster the legislation when, according to the latest Rasmussen polls, 54% of the American people distrust the banking industry. The issue is tailor made for the Democrat/socialists strategy of capitalizing on the natural class envy that promotes class warfare.
In addition to the doomsday predictions so familiar from the debates over bailouts, stimulus and health care, if we fail to act, a new one will be added in Obama’s Thursday speech. He will promise to end the business cycles that are inherent in Capitalism. This can only be accomplished through tight regulatory control by the government over the financial markets. The problem with this fantasy is the fact that no individual or group of individuals has the intellectual capacity or management skills to manage an economy the size of ours. Efforts to do so can only end with the same results as those in other socialist countries where it has been tried.