Glass-Steagall and Why Obama wants it Forgotten

Most people are unaware that a little-remembered bit of legislation known as the Banking Act of 1933 was a law that established the Federal Deposit Insurance Corporation (FDIC) in the United States and introduced banking reforms, some of which were designed to control speculation. It is most commonly known as the Glass–Steagall Act, after its legislative sponsors, Carter Glass and Henry B. Steagall.

---

The act prevented banks from becoming too powerful and also prevented them from banding together into the vast monopolies that preceded the Wall Street collapse of 1929. This control that Glass-Steagall placed onto the financial markets kept the US economy from collapsing utterly during the years of the Carter Incompetency and, even though weakened by Jimmy Carter in 1980, allowed it to recover almost overnight when Reagan’s policies undid the Carter damages. Unfortunately for us and for the world, Barrack Hussein Obama and his ACORN conspiracy came along. Some provisions of the Act, such as Regulation Q, which allowed the Federal Reserve to regulate interest rates in savings accounts, were repealed by the Depository Institutions Deregulation and Monetary Control Act of 1980. This allowed the slow rebuilding of alliances and the creation of false interests with little relation to real world economics. Provisions that prohibit a bank holding company from owning other financial companies were repealed on November 12, 1999, by the Gramm–Leach–Bliley Act. That act opened the door to the abuses and foolishness that eventually led to last year’s economic collapse. In mid-December of 2009, Republican Senator John McCain of Arizona and Democratic Senator Maria Cantwell of Washington State jointly proposed re-enacting the Glass-Steagall Act. A similar move was also put forth in Congress. Understandably Banks such as Bank of America, Chase and others are adamantly opposed, even though such regulation would stabilize a shaky economy. When the privilege of absolute freedom is abused to the point of crime, measures have to be taken. What is surprising is that Senator Cantwell is getting incredible pressure from the White House to recant her stand and oppose the re-enactment of Glass-Steagall. That colors everything a different shade of puce, for if the White House is against something that means, even though it is a form of regulation, it must somehow be detrimental to the socialist agenda. This bears investigation. Let’s take a good look at Greece, the Euro and what is happening there. Greece’s economy has collapsed to the point that their own socialist leaders are calling for the privatization of several state industries and agencies. The Euro, not too long ago a danger to the dollar’s preeminence in the world economy has now had to be propped up by a massive influx of greenbacks. The dominos are beginning to fall on the socialist ideal and common sense is beginning to raise its ugly head. Here in America we are far too inbred with self-reliance to ever be truly comfortable with a socialist system, especially if that system is fascism disguised as a Mrs. Doubtfire spouting platitudes. What concerns Obama is that many of his own party have come to this realization. Here in Nevada every federal representative we have, except Harry Reid seems to be hedging their bets and have begun to slide just a bit toward the right. If this is happening in other states than Obama’s attempt to kill Glass-Steagall by inches seems doomed to fail. What it comes down to is being able to understand the laws of cause and effect. When it comes to economics the same actions have the same result whether you are dealing with the economy of a family, a business or a country. Obama understands this and I am convinced that he fully understood the results of his ACORN conspiracy when he formed it back when he was working on becoming a US Senator. There is a reason why the price of power generation is continuing to rise. There is a reason why certain institutions were labeled as “too big to fail” and then dumped on when they didn’t. There is a reason why regulations are set to make it even more difficult to create a small business while making it easier to cheat the customers of utilities. A discouraged populace is far easier to control and a discouraged populace tends to stay away from the polls. Why do you think the head of ACORN openly stated that the socialists were depending on the votes of illegals to keep them in power? Right now Glass-Steagall makes sense, at least as long as Democrats have control of the financial committees. Let your representative know.