The Current Financial Conspiracy

Something is askew. I should have been suspicious when Barack Obama chose as his financial advisers, the very same people who were working behind the scenes with George Bush, a bunch of gool ole’ boys Ivy Leaguers. I should have been even more suspicious of these advisors’ ties to Wall Street and organizational ties. What is going on?

I have repeatedly written about the mark to market rule which is decimating our financial system. This is the rule that forces a bank to write down performing assets to almost zero. One of the purposes for the formation of the Federal Reserve Board was to minimize the normal business cycle of boom/bust. The mark to market rule does just the opposite. It over inflates the value of bank assets in good times, and under values the assets in bad times. It is a bad rule that has only been around since 2007. Prior to that, the rule was mark to value, in which a formula was used to determine the value of the asset, including a factor for performance. The mark to value rule was implemented in 1938 by Franklin Roosevelt.

Numerous economists have talked about the devastation caused by the mark to market rule. It has cost the taxpayers trillions of dollars. It has destroyed our wealth. So, if we got along without mark to market from 1938 to 2007, and in a little over a year it has been lethal to our financial system…why isn’t it being changed?

My general rule is that if it doesn’t make any sense, follow the money. The key may be found in those folks who are calling the shots, both under George Bush and now Barack Obama. Given that the most common sense solution to bank re-capitalization is being ignored, I can only conclude that these folks have deliberately set out to destroy our financial system, and so far, they have succeeded.

Why would they do it? Why would behind the scene economists and business folks want to destroy our financial system? One only has to look to Gordon Brown, the Prime Minister of Great Britain. He is visiting the United States this week, and is going to address a joint session of Congress. In his speech, he is going to talk about the need to establish a new, world financial order. He wants a global new deal. Have the power brokers in this country, both Republican and Democrat, decided that a major, radical change to the world financial system is needed? Are they selling us down the river?

Conspiracy theorists have claimed for years that the world economy is run by a small group of financiers with ties to various Ivy League schools. The truth may be something less sinister, but still disconcerting. Secretary of Treasury Tim “do I have to pay taxes?” Geithner belongs to an organization called "The Consultive Group on International Economic and Monetary Affairs, Inc.”; the more common name is The Group of 30. It is an international group of high powered financiers who control monetary policy. This organization has existed since 1978, with a membership role that is a who’s who in all things internationally money. It is global by its very nature..and “global” is one of President Obama’s favorite words. Many of its members have been advisors to Bush and Obama.

Have these guys decided that it is time for a new world financial order? They couldn’t do it if things were going well, so they would have to create a diversion. Perhaps all of the derivative financial instruments floating around the world spooked them. Or perhaps they felt that a shrinking globe needed a more unified system. At any rate, if the system we had here was working, we would be resistant to change. So…sabotage the system. If you look for the starting point of the collapse of the American economy, you can almost pin-point it to the implementation of the mark to market rule. It is death sentence to our banking system, which, by the way, is an instrument of monetary policy as opposed to fiscal policy. To quote Rahm Emanuel, White House Chief of Staff: “You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things you think you could not do before.” Of course, those things may have nothing to do with the crisis.

I can hear your collective moan through the computer. But if someone else can give me a better explanation to what I am seeing…I’m listening!!!! In the meantime, we should still be looking for the second assassin in the grassy knoll.