Just Reinstate the Glass Steagall Act
Everyone agrees that repealing the Glass Steagall Act was a mistake, so why not just reinstate it? It worked well for more than half a century so why not return to it. It seems like a nobrainer. The reason is that reforms such a Glass Steagall would go against the interests of the largest banks which control Washington. A few choice words from Charles Hugh Smith on his blog “Of Two Minds”.
Consider the Glass-Steagall Act, at 37 pages in length, and the 2,319-page monstrosity of corrupted Federal power, the “Dodd-Frank Wall Street Reform and Consumer Protection Act:” (Source)
Back in December, Nick Schulz helped put the size of the 2,074-page healthcare bill into some historical context by comparing its length to some previous bills that rank among the most consequential in U.S. history, like the 82-page Social Security Act of 1935 and the 74-page Civil Rights Act of 1964.
Now that Congress has passed the “Dodd-Frank Wall Street Reform and Consumer Protection Act,” it might be a good time to compare the 2,319-page financial reform bill (245 pages longer than the healthcare bill) to the previous bills listed below (and see graph) that are considered among the most consequential legislative acts for banking and finance.
1. Federal Reserve Act (1913) – 31 pages.
2. Glass-Steagall Act (1933) – 37 pages.
Though few have delved into the ramifications of this monstrous power-grab, it seems that the Executive Branch has grabbed potentially unprecedented powers with little if any oversight by Congress–all in the supremely Orwellian pursuit of “consumer protection.”
If a 37-page bill took care of the problem in 1933, why can’t the same 37-page bill be re-instated? Why, indeed. The reason is that the bill impedes the flow of public funds to favored cartels and opportunities for financial looting by these cartels, and so a monster is created that nobody understands and which limits or simply overwhelms oversight by elected officials outside the Imperial Presidency.
The entire financial and political infrastructure is corrupt. Perhaps it is time to note that the most thoroughly, venally, pervasively corrupt nations on Earth all have abundant regulations against corruption.
He also comments on how legislation is so complicated these days as a tactic to confuse everyone as to the real intent and implications.
Going through the motions never solved anything. 2,000-page regulatory thickets are one thing, and one thing only: purposeful obfuscation via complexity. ( America Is Just Going Through the Motions (November 19, 2010):
A profound realization hit me last night: America is just going through the motions now–of reform, of healthcare, of everything. America’s leadership–both its elected and appointed officials, and its “shadow” Financial Power Elite leadership (the corporatocracy of crony Capitalist cartels and rentier/speculative parasites) are just going through the motions of financial reform. And the American public is resigned to just going through the motions of accepting the travesty of a mockery of a sham that is called “reform,” too, even as they understand in their bones that nothing has been fixed and the next financial crisis has already been cooked into their future.
One of our few reliable voice of reason in the world of finance, Simon Johnson, has already laid bare how the the next financial crisis and inevitable bailout of the banking parasites will unfold. His article in The New Republic Way Too Big To Fail reveals how the “too big to fail” banks have shredded the wet paper bag of “reform” Congress went through the motions of conjuring up: they are quickly expanding globally, beyond the reach of any mere nation-state’s grasp.
Let’s be honest, shall we? There never was any fire for real reform of the financial sector. It was all rote, a foul, stupid play-act, a passionless pantomime of “caring” and fake-“progressiveness” displayed for propaganda purposes.
Real reform occurs when the political class of toadies, sycophants, leeches and cowards is forced by a near-universal public outrage to pass simple, powerful legislation and the budgetary resources to enforce that legislation. For example, the landmark environmental laws of the 1970s. Rivers in America used to catch fire before this Federal legislation; now they don’t. There was a true passion and desire in the nation to clean up the industrial pollution that was destroying the nation’s commons.
There was no real fire for financial reform in the politico class. All they had to do was wait out the public’s outrage over TARP and then get down to the business of collecting contributions from financial players and their armies of toady-lobbyists.
So Washington went through the motions of “reform” and the regulatory agencies went through the motions of “enforcing” existing regulations. But nobody was indicted, no RICO suits filed on behalf of the defrauded, no billion-dollar penalties slapped on those who carted off tens of billions in embezzled, ill-gotten gains, and no perps forced into bankruptcy.
In other words, nothing got done except another layer of useless, overpaid bureaucracy was added to the bloated, overstuffed Federal payroll.
The exact same dynamic is visible in the “healthcare” (a.k.a. sickcare) “reform.” 2,000 pages of mind-numbing slicing and dicing of the vast flood of national treasure that flows to the sickcare cartels, and nary a single word on the actual health of the American public, which continues to deteriorate on multiple fronts.
The “reform” is to add multiple layers of bureaucracy and additional costs on a bloated, out-of-control system in which 50% of the money is already wasted on fraud, needless procedures/meds and paper shuffling.
It was all about going through the motions of reforming a system everyone knows is beyond dysfunctional.
Ultimately we get the government that we deserve
Our complicity in the corruption is never mentioned: our votes for kleptocractic politico toadies who promise us that our share of Federal swag will not be sacrificed, our interest payments to the banking cartel/oligarchy, our acceptance of bogus statistics, bogus “reforms” and ceaseless propaganda as legitimate, and lastly, our silence in the face of destructive deficits, lest our share of the swag be cut.
This is how once-great Empires end: toothless regulations are passed by bought-and-paid-for legislatures for the purposes of perception management, and a populace addled by constant entertainments and staged combats in the Coliseum listlessly pursues their “right” to bread and circuses of distraction.