Thursday, April 21, 2011

If there are no survivors is it really piracy?

The Dow hit a three year high today reflecting the Fed’s efforts to pump money into the economy to the tune of a trillion dollars. You can also see those efforts play out at the gas pump with new records there as well. Gold and silver are becoming increasingly precious, at least compared to the increasingly less valuable USD.

President Obama announced today the creation of a task at the DOJ to ferret out criminal activity in gas price gouging and speculation as if any of that were illegal. The pirates all got together and made piracy legal so Grand Admiral Obama can parade the fleet all he wants but it’s nothing but show.

Jimmy Carter was the first President to jump on the deregulation band wagon emulating the privatization efforts of Prime Minister Maggie Thatcher who took the “Great” out of Great Britain. Reagan just stopped enforcing the laws pertaining to monopolies and the succession of Presidents that followed signed an assortment of “reforms”, deregulation and the de-criminalization of corporate behaviors that has led to the tragic end we face today.

Obama does have the opportunity to appoint a new member to Commodity Futures Trading Commission replacing a Republican. Will the new member be sporting a peg leg and parrot on his shoulder? The Dodd-Frank law is inching closer to implementation with another batch of rules on “swaps” to come out Wednesday. This pertains to the 600 trillion USD in derivatives that will no longer be traded in the dark at least in theory. Ronald Reagan not only proved that deficits don’t matter but also that laws and regulations don’t matter if no one enforces them.

Rules that came out last week from the CFTC and the SEC require anybody trading derivatives to put up collateral if they aren’t in the actual business of using the commodity being traded like oil companies, airlines and farmers. Republicans in the House are of course attempting to block any of these rules from ever seeing the light of day. One bill simply delays all rule for two years and they been attempting to de-fund regulatory operations and eliminate the salaries of commissioners are some of the things included in the “budget cuts” they have been pushing. We’ve got to save a buck, we’re broke you know.


Anonymous said...

Don't expect a Brooksley Born-like appointment. Obama prefers industry shills.

BMC said...

I really sense some gloomy conditions coming soon. Anyone else?