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PostCan We Blame "Everything" on the Repeal of Glass-Steagall? (Tor Guimaraes, USA, 09/11/19 4:10 am)
My friend and maker of wonderful olive oil, Eugenio Battaglia, wrote on September 9th:
"The Glass-Steagall Act worked effectively for more than 60 years. But the greedy banking industry after 1980 worked to have it repealed. On 12 November 1999 president Bill Clinton agreed, with the Gramm-Leach-Bliley Act."
JE asked in reply: "Can we blame every financial transgression on the repeal of Glass-Steagall? Some have, although this is certainly an oversimplification."
Repealing the Glass-Steagall Act (separating commercial banking from investment banking) is bad enough, but it amounts to icing on the cake. The effect of a few other things adds up to the financial pickle (inverted yield curves, negative interest rates, submarine inflation, consumer debt, national deficits as far as the eye can see) we are in.
Nixon took us off the $35 dollar/ounce gold peg so he could pay for the Vietnam War. Then all the other wars were free, I mean on credit.
But remember, much earlier than that, the Fed's creation process starting with the special meeting on Jekyll Island (http://www.jekyllislandhistory.com/federalreserve.shtml ). The big banks from then on control the money supply and make bubbles at will. Can you believe it? Another more recent crucial piece of evidence for Fed slavery creation comes from an ex-Fed economist who was actually in charge of distributing the bailout money for the 2008 financial disaster. His name is Andrew Huszar and he quit the Fed in disgust over who was getting paid. There is a huge amount of evidence on this topic, available to anyone interested enough.
Republicans and Democrats, all together, live like a happy family of heroin addicts.
JE comments: The event that imagined the Fed took place at a duck-hunting lodge on Jekyll Island, Georgia. The year, 1910. I see images of guns, cigars, red meat, and cognac. The meeting was in response to the financial panic of 1907.
Off topic, but perhaps not: the Eipper family vacationed on Jekyll island sometime in the late 1960s. It's one of my earliest memories. To my knowledge we did not discuss banking or finance.