Obama is failing

 

It is striking how closely President Obama is sticking to failing Bush family policies, many drafted by Hank Paulson. Paulson’s poor grasp of economics was demonstrated by his 2007 plan of setting up another Super Investment Vehicle (SIV) – they borrow short to buy long term investments – to buy up banks’ toxic assets. By the end of 2008, every single USA SIV had gone bust without exception.

 

Financial timidity

Obama’s going to continue to use most of the £350 billion left in TARP – Paulson’s Troubled Assets Relief Plan, which uses taxpayers money to prop up failing banks, or more accurately, provides the money to pay out billions in corrupt executive bonuses for failure. 

 

His new $800 billion stimulus ($2,600 per US citizen) is a rag tag of spending added on by Congress appropriators, not his own staff. His proposals are too wasteful, and pour good money after bad by protecting corrupt systems that failed, instead of building new institutions for the future

 

Obama’s fiscal timidity is depressing. He is already not delivering the radical action he promised.  Continuing Bush’s policies will fail.

 

Freedom and fake terrorism

His stimulus equals all the budget allocations for the Iraq/Afghan wars between 2001 and 2008, which he shows no sign of stopping. Yet stopping the wars would completely finance the stimulus. He promised to close Guantanamo Bay – and did indeed sign an order the second day of his presidency, but it was merely an order that “it should close in a year.”  Innocent prisoners are still being forced to live permanently in their own faeces, and undergo daily torture; gagged, blindfolded, and left to bake in the sun tied up inside hot clothes, often forced to half crouch for hours at a time.

 

Worse, he has specifically allowed the CIA to continue “Extraordinary Rendition” – where they kidnap who they wish from around the world, then detain and torture them indefinitely.

 

The CIA is loyal to the Bush family – its senior staff are graduates of the Chapter 322 Freemasonry society (colloquially known as the Skull and Bones,) of which the Bush sons from Grandfather Prescott Bush downwards were senior members.  GHW Bush joined the CIA shortly after its inception in 1952, was South Eastern Commander in charge of both the Bay of Pigs (which Kennedy had forbidden) and Kennedy’s assassination, which Bush appears to have organised. GHW Bush formally became Director of the CIA in 1980, and has controlled it ever since.

 

Is Obama the president?

The fact the CIA is able to continue its Bush style policies under Obama suggests it is not Obama who is in charge, and the much vaunted “Peaceable handover of power” did not actually take place.

 

The cure Obama isn’t adopting

President Obama should ditch the privately owned Federal Reserve and the toxic banks, create a new government bank owned by the people of the USA.  It, not the Fed, should issue the US dollar as currency, and take over the deposits (bank accounts) of the toxic banks, together with good assets equal to those deposits. Toxic banks won’t have sufficient good assets, and the government will have to make up the difference in its own bank. But this will be pouring good money after good money, avoiding waste. Future stimulus can be paid directly into every US citizen’s bank account.

 

The US dollar urgently needs to be backed by a proper Gold Standard (not a manipulated one as before) or better, a Constant basket of commodities.

 

Similar systems were used to rescue Uruguay in 2002, which had a run on the banks and the economy collapsed. The rescue was implemented almost overnight. By 2004 the economy was growing at 11% pa. Saving the USA won’t be that quick, but it can be done.

 

David Noakes. http://eutruth.org.uk  07974 437 097