(Federal Deposit Insurance Corporation) dated June 16, 1933. According to this law, deposit and investment functions of banks were divided than the barrier was set to speculative operations. Guaranteed insurance bank deposits in the amount of up to 5,000 dollars. The composition of the federal reserve system was expanded due to the inclusion of new groups of banks.
The limitations established by law were canceled in 1999 by the law of Grams-Lica Blyli.
Sources
English-Russian Economic Dictionary of Economics and Finance. / Edited by prof., Dr. Ekon. Science A. V. Anikina. - St. Petersburg, Economic School, 1993.
Wikimedia Foundation. 2010.
Watch what is the "Law of Glass-Stigolla" in other dictionaries:
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Recently, the media flashed a message that the Democrat Senator from Iowa Tomas Harkin submitted to the US Senate Bench No. 985 on the restoration of the Glass Law - Stigolla. This happened on May 16, on the Day of the 80th anniversary of the adoption of this law. And his adoption, and then Cancel had a huge influence on the development of the US Financial and Banking System and the whole world ...
History of adoption of the law Glass - Stigolla
The history of the Law - Stigollah (hereinafter referred to as the CHA) goes back to the "roaring twentieth" of the last century, when America trampled the fever of speculation, in the inflating of which banks played a key role. Wearer bankers forgot about traditional credit operations and plunged into risky operations in the stock market. They themselves act as investors-speculators, as well as with the help of their loans they supplied with the money of non-bank speculators, sharing with the latest unprecedented high profits derived from operations with papers. All this ended with the deplorable - stock collar of 1929, the development of the economic recession (which in the 30s he turned into a protracted depression), by the banking crisis. Then every fifth American bank went to the bottom with deposits of depositors. It was the largest in the history of the confiscation of deposits, against the background of which the current confiscation of deposits in Cyprus banks seems moderate. In the footsteps of these events even in the US Congress, it became increasingly to sound calls to spend the nationalization of banks.
Shortly after the coming to power of President of Franklin Roosevelt, in 1933, the law was adopted in the US Congress, the project of which initiated two Democrats - Carter Glass and Henry Stigall. HSS provided for the following major measures:
1. Department of credit transactions of banks from investment (due to the fact that the latter are much more risky); the separation of banks on commercial (having the right to accept deposits and engage in lending) and investment (having the right to deal with only operations with securities in the stock market);
2. Creating a special organization for insurance of bank deposits of the population - Federal Deposit Insurance Corporation (FDIC);
3. Strengthening supervisory, regulatory and control functions of the US Federal Reserve System for commercial banks; Investment banks from the area of \u200b\u200bcontrol of the Fed US are derived, and their risks are not insured by the state or the Fed;
4. Fastening for Fed Rights Adjust the limit interest rates According to savings deposits of banks, as well as to establish the standards of compulsory reservation for banks included in.
Accepting HCS played important role In the stabilization of the US financial and banking system. For several decades, America lived without bank crises.
The struggle for the abolition of the law Glass - Stigolla
HCS held away the greed of bankers who wanted to combine their status of deposit institutions with speculative operations on stock markets. They tried in every possible way to loosen the UGS way. The first attempt to change the law of Glass - Stigolla was undertaken back in 1956 due to the adoption of the Law on Banking Holding companies. Then it was proposed to relocate the ban on combining credit and investment activities for subsidiaries of bank holdings in all states. However, the attempt failed. Deposit and credit organizations continued to be forbidden to conduct investment activities, as well as to absorb companies from other sectors of financial services (insurance, assets management) and create partnerships with them.
The first challenges in the law of Glass - Stigolla appeared at the turn of the 1960s and 70s. They concerned permission to enter banks as underwriters (investment brokers) on the market of municipal bonds. At the same time, investment companies through their lobbyists achieved the right to discover customer accounts to demand in the money market (Money Market Accounts), which are analogues of short-term deposits. It is noteworthy that such accounts were outside the FDIC insurance system. In late 1986 - early 1987 Another significant event occurred: the Fed allowed some particularly reliable commercial banks up to 5% of gross income from operations with securities (though, not yet at the expense of customers, but at the expense of own capital). A little later, the most reliable banks raised up to 10%. This happened at the chairman of the Fed Field volcker.
The final phase of dismantling of the CHS is associated with the name A. Greenspina. Changed in August 1987, the chairman of the Bank's director J. P. Morgan on the chair of the Chairman of the Board of Governors of the Fed, Greenspan immediately stated: "Maximum deregulation of a banking system to increase the competitiveness of American banks in the fight against large foreign banks". And the "deregulation" in the understanding of Greenspina is primarily the abolition of HSS. Naturally, the first bank, received in 1990 from the Fed, the right to investment activities in the amount of up to 10% of gross income became J. P. Morgan. This gift Greenspina allowed the bank to sharply strengthen his position at the expense of other banks Wall Street. J.P. Morgan through investment operations with a large appetite began to swallow its competitors: Chemical bank (in 1991), Chase Manhattan (1995), First Chicago (1995), Great Western Bank (1997), Bank One (2004), etc.
By December 1996, the plank of the allowed own investment activity for banks was raised up to 25% on the initiative of Greenspin. Already in August 1997, the first banking structure of Bankers TRUST absorbed brokerage company Alex, Brown & Co. Later she was absorbed by Deutsche Bank. The destruction of the wall between the various types of financial services on Wall Street went full. For some time only a ban on the entry of banks in insurance activity was preserved. However, after absorbing in 1997 by the insurance company Travelers Investment Bank Solomon Brothers and the ensuing absorption for $ 70 billion, the Travelers of the Citicorp company (Maternal company Citibank) The Glass Law - Stigolla, at least somehow restrained the appetites of financial conglomerates, de facto ceased existence. Now it remained to eliminate this law de jure. On November 4, 1999, on the eve of the explosion of the next bubble in the stock market, after 25 years of struggle for the abolition of the law of Glass, stigolla lobbyists and their sponsors celebrated victory. President-Democrat Clinton signed a Financial Modernization Act (FINANCIAL MODERNIZATION ACT). It is also called by the names of its authors by the law of gram - Lich - Blyli (Gramm - Leach - Bliley Act, or abbreviated GLB ACT). The Glass Law - Stigolla, having lived in the white light of 66 years, died. Or rather, he was killed by the greedy. In numerous speeches that accompanied the adoption of the GLB Act, the banksters painted the iridescent perspective for Americans, which de now save time and money, receiving all financial services from one window. About the catastrophic risks of such combination was silent.
The consequences of the abolition of the law of Glass - Stigolla
On November 4, 1999, a mine was laid under the US financial system. And this mine exploded in less than a decade. We are talking about the financial crisis, which began in 2008. The American Commission for the Investigation of the Financial Crisis chaired Phil Angelidez published the results of studying the causes of financial collapse of 2008. The report of Angelides concluded that the main cause of the crisis is rooted in the desire over the past three decades to get rid of measures to protect citizens created by Franklin Roosevelt in the middle of the twentieth century, including the Glass Law - Stigolla. Named the name of the main initiator of the destruction of regulatory mechanisms is the former chairman of the Fed Alan Greenspan. The Commission allocated two initiatives of Wall Street, who contributed to financial collapse. One of them is the adoption of the Law on Modernization of Commodity Futures (CFMA) in 2000, legalizing over-the-counter trading with derivatives (the nominal value of which immediately increased to trillion dollars). Another - liquidation in November 1999. SGS residues. Cancellation of HSS led to the unrestrained speculation of Wall Street banks, inflats "bubbles" in the financial markets and the real estate market. The first signs of collapses of "bubbles" were marked already in 2007. And in 2008, the crisis switched to the acute phase, the bankruptcy of many banking and financial giants followed. The largest of them is Lehman Brothers. The report of Angelides criticizes the leading figures of Wall Street, including the Chairman of the Fed of Ben Bernanke, the former chairman of the Federal Reserve Bank of New York and later the Minister of Finance at Obama Timothy Geitnera, finance minister with beast Hank Paulson For measures to "save" investment banks, which led to the crisis as a result of speculative games. The first financial assistance was provided on March 16, 2008 by the Bear Stearns Bank. The well-known American nonconformist Lindon Laurush qualified it as a violation of the 1933 Emergency Bank, which limited the help of the government to commercial banks and excluding investment institutions. On July 24, 2008, Paulon assisted the mortgage agencies Fannie Mae and Freddie Mac. Leading under the auspices of Lyndon Laurusa EIR magazine wrote then that with the help of this trick to banks that accumulated securities provided by mortgages were sent even more funds.
On September 25, 2008, Paulson traded the problem of problem assets (TARP) through Congress. Then Larush warned: "There was no case in history so that some government bounced empty papers foreign investors. Polson forces American taxpayers to save his English and European friends. It is criminal and unconstitutional. " The Chamber of Representatives voted against this assistance on September 29, 2008, but Obama, then the presidential candidate, supported it. On October 3, 2008, the House of Representatives, yielding pressure, approved this program. Congressmen stated that if the program did not accept, a catastrophe will occur and martial law will have to be administered. Speaking on LPAC-TV on January 26, 2011, Larush said: "The report of the Commission for 2008 is perceived by many politicians and experts as an alternative to Obama. The Commission concluded that there was no need to help. There was no such need for Bush, there was no it under Obama. We destroyed the opportunity to maintain the population of the globe. Planet on the verge of genocide, but you can still save it. And it is impossible to do this without the USA. If you restore the law of the Glass - Stigolla, you can clear the system from 17 trillion trashlands. And you can push this process in Europe and other regions. "
Fight for the restoration of the law Glass - Stigolla
The financial crisis in the United States and in the world sharply strengthened criticism in the address of banks. In the ranks of critics today and President B. Obama. The media believes that adopted after the financial crisis of 2008-2009. The financial reform would not be accepted without the support of B. Obama. Some of those who once achieved a disassembly of HCS, today unexpectedly found themselves in the face of supporters of his recovery. Among them, for example, former minister Finance in the bank Bush Jr. H. Summers. At the head of the supporters of the Renaissance "Walls" between commercial and investment banks costs the former chairman of the Fed Paul Volker. From the younger former Fed leaders, Thomas Höniga can be mentioned; At one time, he was Chairman of the Federal Reserve Bank of Kansas City, and currently holds the post of Deputy Federal Insurance Corporation bank deposits. In an interview on May 10, 2013, the English Central Banking Journal reaffirmed his position in relation to the restoration of the law of Glass - Stigolla and married that the full separation of banking and investment activities "must be issued legally".
Of course, in the criticism of banks Obama and a number of other prominent statesmen, a lot of rhetoric and even the villains. So, the franca law - Dodda (his full name: "On the reform of Wall Street and the protection of consumers"), did not solve the key problem - separation of deposit and credit activities from the investment and insurance activities of American banks. L. Larush called the law Frank - Dodd "Useless, Half-Mural". With all the justice of such estimates, it should be recognized: a favorable atmosphere is created in the USA for those who really wishes the restoration of the law of Glass - Stigolla. There were already several attempts to adopt in the US Congress laws, leading order in the banking system of the country in the Spirit of HCS, and here are the most important of them.
In early 2010, Senators Maria Cantwell (Democrat from Washington) and John McCain (Republican from Arizona) offered amendment to the law Frank - Dodd, restoring the main provisions of the CHA. The amendment did not receive the necessary support.
In April 2011, a member of the US Chamber of Representatives Marcy Capture (Democrat from Ohio) re-issued a bill to restore the Glass Law - Stigolla called H.r. 1489 - Proposal "to withdraw some provisions of Graham's Law - Blyli and to restore the separation between commercial banking and securities operations, as provided for by the Law on Banks of 1933, which received the name of the Law of Glass -stigolla, as well as other purposes." Cautors of the draft law - Walter Jones Jr. (Republican from North Carolina) and James Moran (Democrat from Virginia). By the time of the expiration of the authority of the 112nd Congress, the authors of the draft law managed to get support from 84 members of the Lower Chamber. With the beginning of the 113rd Congress M. Captures and W. Jones re-introduced a bill (H.R. 129) on the restoration of HSS. Today (May 2013) 62 Congressmen support support.
Understanding the need for separation banking operations In the spirit of GPS grows in the Senate. But the influence of bounters on the upper ward is much stronger. As already mentioned, Senator Tom Harkin (Democrat, Iowa) has made on May 16, 2013 in the US Senate, the draft law No. 985 (SB 985) on the restoration of the law of Glass - Stigolla. T. Harkin's bill was registered simultaneously with the introduction of two states (Delaver and Illinois) projects of resolutions calling for representatives of these states in Congress to support the restoration of the CGU law. Before this, similar resolutions have already been made to the Legislative Assemblies of 18 states. Lindon Larusch Congratulated Harkin with the deposit of SB 985, contrary to massive pressure from the White House and the Senate Guide. Larush said: "This is a very important step. Obviously, he will have serious consequences. I managed to overcome the resistance to this initiative. The case acquires another turn. The agenda changes. Despite all the efforts to prevent this draft law for consideration, Senator Harkin managed to insist on its own. It is not yet a victory, but the sign is that the situation is not so hopeless ... "
Mixing (combination) of deposit and investment activity is characteristic not only for US banks. Today it is inherent in the European banking system. In Europe, this question is not discussed so hot. Only a few politicians in Europe understand how powerful this mine is capable of blowing the European Union. So far, the last initiative in Europe in favor of the division of banking activities belongs to the Regional Council Tuscany, who adopted a resolution called "Banking and Legal Reform in the Spirit of the Gloom-Stigolla law".
At the level of Summit G-7, G-8, G-20 and other world forums, where prompt issues are constantly discussed financial Sustainability And reforming the world financial systemThe problem of separating the deposit and investment activities of banks is addressed very carefully. And in vain. Experts understand that without solving this cardinal problem, all conversations about financial stability turn into an empty chatter.
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Obviously, the recovery of HSS is not a purely internal business of the United States. It would affect the global financial and economic situation. First, because the likelihood of new crises in the United States would decrease, which in the conditions of the current globalization from the American epicenter immediately spread throughout the world. Secondly, because the adoption in the United States on the division of commercial and investment banks could host other countries to adopt similar laws.
It should be said that the mixing (combination) of deposit and investment activity is characteristic not only for US banks. Once for Europe, this topic was not relevant due to a much lesser degree of stock markets and, accordingly, the less involvement of European banks in a high risky investment business. Europe never had analogues of the law of Glass-Stigolla. Today, the combination of deposit and investment operations has also become inherent in the European banking system. The process of universalization of banks today has greatly advanced in Europe. Only a few politicians and economists in Europe understand how powerful this "mine", which can blow up the European Union. In Europe, the last initiative in favor of the division of banking activities was nominated by the Tuscany by the Regional Council, who adopted a resolution called "Banking and Legal Reform in the Spirit of the Glass Stigolla law". And institutions such as the European Commission, European Parliament and European central bank Absorbed by the fight against the debt crisis, practically without discussing the risks of the creation of banking conglomerates.
As for Russia, we today have a problem of separating deposit and credit operations from investment and other activities practically no one is discussed. We still did not come to these "rakes" and do not understand how big the bump can fill. In general, I have the impression that our authorities even encourage the mixture of "in one bottle", called the Bank of Deposit Operations and Pure Speculative financial operations. This is done under the flag of creating "universal" banks, financial "supermarkets", improving the quality of customer service (obtaining all financial services "from one window"). During the last months, the question was regularly discussed that we need a financial megarler in Russia. As you know, the central bank was determined. Interestingly, at the same time, as the main argument in favor of creating a megaregulator and the appointment, this CB was the following. The main financial institution in Russia today became commercial Bank. At the same time, commercial banks are gradually turning into multidisciplinary bank holdings that combine such types of operations as deposit, credit, investment, leasing, insurance and even pension. It is clear that it is difficult to monitor the activities of such a multi-headed financial hydra. Therefore, they say, and a single megaretulator is necessary. Surprisingly, almost no one even from opponents of the ideas of a financial megaregulator questioned the connection different species Operations within the framework of one organization, which according to tradition is called "Bank".
At the G-7, G-8, G-20 summit level and other global forums, where the issues of increasing financial sustainability and reform the global financial system are constantly discussed, the problem of separating the deposit and investment activities of banks is addressed very carefully and dosed. At the same time, experts understand that without solving this cardinal problem, all conversations about financial sustainability in the world turn into an empty chatter.
Glass Law - Stigolla (Banking Law 1933)
english Banking Act of 1933, Glass - Steagall Act, the law on banks, which established a forced organizational division of investment and commercial banks.
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It is worth remembering that the laws of the Glass-stall had two. The first was held in February 1932, expanded the circle of banking assets to be submitted by Fed and allowed the Fed to issue money that was not swapped on gold. But usually, when the law of Glass-Stalling is remembered, they keep in mind the law of 1933, which concerned banking activities.
The Federal Law of the United States was signed by the President on June 16, 1933.
Glass Law - Stigolla banned commercial banks to engage in investment activities, limiting banks on operations with securities and introducing compulsory insurance bank deposits.
Characters
Wintere Aldrich - chief ideologist
Franklin Roosevelt - US President
Senator Glass
The law contained three main provisions:
- org. Separation of operations of commercial and investment banks
- federal bank deposit insurance
- prohibition of commercial banks to accrue interest on demand deposits
Detailed provisions of the Law Glass - Stigolla:
- banks are forbidden to perform operations with securities
- banks can not be created by branches that do it
- companies in the market valuable papers can not engage in banking operations (for example, accept deposits)
- officers in Invest. Companies cannot hold acc. posts in commerce. Banks
- creating the Federal Deposit Insurance Corporation (FDIC)
- mandatory deposit insurance to $ 5,000
- the inclusion of new groups of banks in the Fed
- commercial banks - accept deposits.
- investment banks - do not accept deposits, are engaged in investment activities.
- the ability to get a loan from the Fed through the so-called. Discount window
- deposits are guaranteed by taxpayers money
The Glass Stigalal Law hit the largest banks: Chase Securities Corporation, National Citi Company, JP Morgan and Company. JP Morgan then was divided into JP Morgan and Morgan, Stanley and Company.
Sources:
Wikipedia
Paul Krugman, "Return of the Great Depression"
The history of money circulation and banking of the United States. M.Orotbard
The Glass Stigola Law (GPS) is as a means of extending the dollar agony!
Copy here two articles. My comments in brackets.
The Glass Law - Stigolla is simple and accessible
Rosanov Dmitry Ivanovich on www.planet-kob.ru 07/07/2013 08:46
Adopted in the USA in 1933 canceled in 1999
The essence of the law: "Implementation of the regulation of interbank activity and preventing the diverting of funds for speculative operations."
Eventually:
1. The law banned any speculative operations to commercial banks.
2. Provided compulsory insurance of bank deposits.
Basic provisions:
prohibiting commercial banks to speculate securities and currency;
ban on the creation of branches of banks engaged in operations with securities and currency;
prohibition of companies operating in the securities market, carry out traditional types of banking operations;
ban officials investment companies At the same time hold posts in commercial banks;
creation of a federal deposit insurance corporation;
Mandatory insurance of bank deposits.
Result:
1. Commercial banks began to use borrowed funds (including depositors' money) to finance real sectors.
2. The government has lost the opportunity to subsidize speculative operations in any form.
3. Money returned with financial markets And they began to work on society (in particular, large infrastructure projects).
4. Banks were forced to offer favorable credit conditions to borrowers.
5. The economy came out of the crisis and has become an opportunity for effective development.
(In fact, the depression in the United States lasted before VMI, although it may be somewhat softened somewhat due to the GPS.)
Wall Street and Obama are concerned about the increase in support for the restoration of the Glass Stigolla law.
Senators contribute new lawoPROEKT.
On July 13 (EIRNS) - On July 11, the Second draft law was submitted to the US Senate, the second bill was made to restore the law of Glass-Stigolla, attracted the attention of the press and caused the nervous reaction of Wall Street and the White House of Barack Obama. Disputes in London City, Financial Times in the analysis of the situation supported the idea of \u200b\u200bseparating banking activities.
According to sources on the Capitol Hill, a day, when the bill was made, President Obama made a reprimand the fraction of black deputies in Congress. Directly the bill was not mentioned during the meeting, but Obama demanded from black congressmen to stop him (president) to criticize and stated that his hands were connected and he was not guilty that in the last five years the life of African Americans had worsened. After this meeting, Obama was talking alone with Maxin Waters (Democratic Party, California), sitting in the Committee on Financial Services of the House of Representatives. You can not doubt that Obama offered to prevent discussion in the Committee of the bill on the restoration of the Glasses-Stigolla law made to the Chamber of Representatives by Democrat Marti Captures and the Republican Walter Jones, who supports 70 deputies for today.
Bank JP Morgan Chase (Jay-Pi-Morgan-Chase), last month discovered the adoption of a resolution in support of the draft law on the division of banking activities in the Senate of Delaware, again came to people. Huffington Post Published Material "JP Morgan Chase against Warren-McCain's proposal to restore the Glass-Stigolla law" Following the interview with the main financier JP Morgan Mariana Lake. Lake stated that "(cancellation) of the Law of Glass-Stigolla has nothing to do with the crisis, and the Bank's business model allows us to be a cozy harbor during the storm."
Senator Elizabeth Warren (Democratic Party, Massachusetts) commented on the frank lie JP Morgan in an interview with Fox Business News, indicating that the largest banks, including JP Morgan Chase, Citibank and Bank of America got most of the money taxpayers to stay afloat after the collapse of Lehman Brothers In September 2008. The four largest bank Wall Street today increased by a third compared with the pre-crisis 2008.
FINANCIAL TIMES On July 12, he writes about the increase in the struggle for the restoration of the Glass Stagolla law: "The proposal to restore the law of Glass-Stigolla is nervous to Wall Street," and notes that the draft law on restoration in the 21st century of the Glass Stigolla law "is another Pulled to the bonfire of the growing fight for the disaggregation of banks, whose idea is surprisingly supported in both parties. " FINANCIAL TIMES Editorial Article "Share Banks is required - a new law of Glass-Stigolla is required, and not only in the US" echoes the editorial article in July 2012, called for a full bank separation. Speaking about Warren and McCain, the main co-authors of the new bill, the authors note that "the intentions of two legislators separate purely banking activities from risky enterprises are substantiated and deserve attention. How convincingly showed the financial crisis, the main beneficiaries of the model of the "full range of services" were the banks themselves. They were available to cheap money, since investors knew that in case of difficulties, the state would come to depositors. With such a bonus, they rushed into all the grave, for which the taxpayers of the whole world are paid today. "
Today, the American website Examiner.com published an article by Kenrick Word about a new bill, which describes the role of Larusha's movement in the mobilization of society to restore the Glasses-Stigolla law as a first step towards returning a genuine credit system and real economic recovery. Below is the translation of the article in Examiner.
Congress is going to do Megabans
Washington - Four American Senators made a globe-stigolla bill for the 21st century to restore the historical wall, separated by commercial and investment banks. Senators Elizabeth Warren, Democrat from Massachusetts, and John McCain, a republican from Arizona, Democrat Maria Cantwell from Washington and Non-partisan Angus King from Maine went in the footsteps of Senator Tom Harkin from Iowa, who brought the draft law S.985 last month.
Lindon Lindon Lanos, a former US presidential candidate, an economist and lead supporter of the law of Glass-Stigolla. "Wall Street is hopeless bankrupt ... and collapses," Larush predicted. "Congress - a body that can make decisions that will allow us to cope with these problems."
In the coming week, representatives of the political actions committee Larusha will come to the US Congress together with dozens of activists with hundreds of letters from municipal councils, state legislators, tea parties, scientists and farmers who support reforms in the spirit of Glass-Stigolla as the basis for the recovery of the economy.
Suicide greed and dental risk
The bill proposes to separate the banks engaged in traditional activities that store savings and open accounts insured by the Federal Deposit Insurance Corporation from financial institutions involved in risky activities continuing to speculate exotic derivatives from hedge funds, speculation with default swaps and other unavailable common humanities Disassembled transactions with virtual debts.
Employees of Senator Warren say that the law offered to her will facilitate too large banksThey will become more reliable, and the risk of a situation when the government has to pour money, as it was in 2008, will be minimal.
"In 1999, the main provisions of the Glass Stigolla law were canceled and the wall, separated by commercial and investment banks, disappeared, the banking world has learned greed and willingness to be angling risks," says McCain. - "Large offices on Wall Street have the right to engage in risky transactions, but not with deposits that countries ### t."
Warren noted that large banks continue to threaten the country's economy. "The four largest bank today rose by a third in size compared to what was five years ago, they continue dangerous operations with a high degree of risk, ultimately the economy can be under threat."
Cantwell, previously speaking with such a bill, says that "too many ordinary Americans pays for the risky games of Wall Street." New order "will conduct a distinct difference between risky operations and traditional banking activities. It's time to return confidence in our financial institutions and restore the barrier, for decades defending our economy after the Great Depression ... ".
Back to the future: Support in both parties
Glance-stigolla law in initial form was adopted after the financial collapse of 1929. Since the 1980s, the Fed regulators and the control of the monetary circulation controller gradually reimpted by the provisions of the law so that the wall that shared investment and commercial banks became ghostly, and the law itself was weakened. In 1999, after 12 attempted cancellation, the Gramma Lica-Blyli law was adopted, who overturned the key provisions of the Glass Stigolla law. Bill Clinton approved the abolition of the law of Glass-Stigolla shortly before the end of the term of presidential powers.
Today, on the Capitol Hill and throughout the country, the movement for the restoration of the law of Glass-Stigolla is gaining momentum. Marcy Captures and Walter Jones made a bill No. 129 in the House of Representatives, which today supports 70 deputies. The legislators of South Dakota, Maine, Indiana and Alabama adopted resolutions calling for the restoration of the Glass-Stigolla law. Hearings are appointed in Rhode Island, Pennsylvania, North Carolina, New Jersey, New York and Delaware.
The Warren-McCain Cantwell-King bill is an important step towards the restoration of the Glass-Stigolla law, although in case of adoption it will take effect only five years.
Supporting the law of Glass-Stigolla consider it a more fundamental and effective step compared to the adopted Dodda-Franca law. Instead of protecting the savings of citizens in commercial banks, the law of Dodd Frank opens the road to "confiscations" in European, when the authorities receive the right to withdraw or freeze depositors money during economic crises. So it was already in Cyprus.
In a speech on the Internet, on July 12, Larush held a parallel between Wall Street's gambling business and government savings programs leading to employment reduction. "Banks need to sift through the Site of Glass-Stigolla. Shoot the shadow business leading behind the scenes. "
"Will be sad," Larush warns, "you have to cut out a lot of garbage." Many directions of banking activities will be clicked, they are bankrupt. " But on the other hand, says Larush, Congress has the power to create credit systemwhich will serve a new steady banking system. "To improve performance, federal guarantees will be required. You need to do the same thing that Roosevelt did, putting most of Wall Street in prison. "
Larush also called on Congress to recall his constitutional powers, in connection with the expansion of the president's power, threatening to pour into the "fascist state". Larush called on the Congress to use his legitimate power. "We need the consent of both parties in the Congress. Other than chaos and avalanche of debts. If Congress does all that in his power, this can be avoided. "
Speaking about the high level of unemployment and partial employment, as well as the threat of food crisis, Larush repeated that the law of Glass-Stigolla is the key to the reforms necessary for the salvation of the country. "Our goal is to restore America, pull it out of dirt, regain your former pride and respect."
Larouz's movement activists plan to meet on July 15-19 on the Capitol Hill with legislators to discuss the Glass-Stigolla reforms, and even arrange choral singing on the street. Kische Rogers, twice denominated in the Congress from the Democratic Party in Houston, says that the activation of efforts "will bring the struggle for the restoration of the law of Glass-Stigolla on new level" On the eve of the trip to Washington Rogers, before the Barack of Obama, who used to the impeachment, says that "the full-fledged program of economic rebirth requires reorganization and restructuring of the Congress's work."
"You need to forget about party intrigues and combine best minds In the Congress for work in the interests of the country. Congress went for too long for Wall Street and London, "said Rogers Examiner.
www.larouchepub.com/russian.
(Comment:
As I have already written before (see -
________________________________________
Lindon Lanush in the role of Bender's Ostap.
http: //samlib.ru/editors/e/epport.run_s_d/larush ....
), the first impression that Larush is creature (agent, chole) Rockefeller! Task, given Larush:
1. Clear all the activities of Rockefeller on the collapse of the world!
2. Distraction of attention of society from the actual Global problem And the root of all angry: the very existence of the Fed, the need for the dissolution of this cannibal organization, the expropriation of all constructed from humanity during it through real wealth and the equitable distribution of these wealth between all countries of the world! And after this introduction throughout the world of Psmrdaz (a fully free world market of money with an absolute ban on chapelism)! Cm. -
6. Epstein Shmuel. Against IimMDBS and for IMDBS! (IimMDBS - contemporary artificially disheveled world fraudulent monetary Banking system, IMDBS is the ideal world monetary banking system).
http: //samlib.ru/editors/e/epport.run_s_d/proiimm ...
http: //samlib.ru/editors/e/epport.run_s_d/priiimb ...
Larush wants to create an impression that Wall Street is Morgan (which is a natural competitor of Rockefeller, like Rothschild) and only, and Rockefeller is a fluffy innocent lamb, neither a dream is not involved in all countless refinery (crime against humanity)! Cm. -
Vandals in law!
http: //samlib.ru/editors/e/epport.run_s_d/vandali ...
Until 1999, when the GHS was canceled, the shareholders of the Fed exactly also robbed humanity, as after his cancellation! It is possible that with the cancellation of HSS, the situation has deteriorated also for American citizens, but for the rest of the world nothing has changed: out of it, both juices (shareholders of the Fed) have been saved, and continue to suck until today!
It is possible that Rockefeller is ready to delete the resumption of the HSS to keep leadership in the Fed! This is what M. Rotbard writes (which I trust):
2013 year - Anniversary of Global Satanism !!!
http: //samlib.ru/editors/e/epport.run_s_d/20133god ...
"
Conclusion
The elite of the financial community of the United States, especially the Morgan group, Rockefeller, Kun and Leba, achieved the creation of a federal backup system, which is created by the Government of the cartel, who gives national banks the opportunity to coordinately inflation paper money supply, not risking to cause an immediate retribution in the form of a cash call from depositors or banknotes holders. Recent studies cleared the role of a growing number of technical experts and scientists who gladly decorated their scientific authority to the desire of elites to create a central bank. The authorities elites are not able to consolidate the privileges provided by the great government and interventionist policies, without legitimization, the only source of which in our world are supposedly impartial experts and professors. To create a Leviafan State, should work side by side greed, thirsting for special privileges, and intellectuals capable of providing a noble patina of scholars and ideological decoratedness.
"
"The historical narrative of the Rothbard has a complex structure and is not limited to the lighting of exclusively the vaging of the fate of the Morgana House. Competing banking group led by Rockefeller and his environment (included the Investment Bank Kuna-Loe and Railway Magnate Harryman) led a desperate struggle for the supremacy. From the point of view of the Rothbard . New course It is best to consider as a victory of the Rockefeller group. Although in the mid-1930s, Morgana returned a part of the former influence, since then they occupy a subordinate position.
"
HCS is a cosmetic improvement, which does not change anything in the essence of the global robbery system, which is Fed !!!
It is possible that all this movement for the resumption of HSS is sanctioned by Rockefeller himself: throw the bone to the people so that he swallows it and did not attempt to "Holy Saints" - Fed!
For some reason, Larush "is hesitating" to make a bill on the need for dissolution of this cannibal organization - Fed, the expropriation of all constructed from humanity during it through the real wealth of the planet and the equitable distribution of these wealth between all countries of the world! And after this introduction throughout the world of Psmrdaz (a fully free world market of money with an absolute ban on chapelism)!
From this article it is seen that Warren and McCain are also a rockefeller creature! McCain - This Vurdalak, who sleeps and sees: how would it be more to destroy the most prosperous and most prosperous countries and peoples, and then suddenly despicable so "progressive"?!
The renewal of the GPS will somewhat improve the economic situation in the United States, will allow a little to delay the collapse of the dollar, but the rest of the world shareholders of the Fed will continue to rob with the same intensity as before!
Application:
UN offers to abandon the dollar
Reuters - a new UN report, released on Tuesday, calls for the abandonment of the dollar as a global reserve currency, stating that it is not able to maintain its cost.
But several European officials who were present at the meeting at the highest level of the Economic and Social Council of the United Nations object, saying that the currency of which countries will keep as a reserve, determines the market, not politicians.
"The dollar, as it turned out, was not a steady means of savings, which is necessary for the reserve currency," the UN Economic and Social Review for 2010 is said.
The report says that developing countries Over the past few years suffered damage from dollar loss in their value.
"Motivated partially in need of insurance of themselves from volatility in commodity markets, and capital movements, many developing countries have accumulated a huge number of reserves in American dollars during this decade," they say.
The report supports the idea of \u200b\u200breplacing the dollar CDR * (special borrowing rights; approx. Mixednews.ru) of the IMF, an international reserve asset, which is used as a payment unit with IMF loans, and is based on the currency basket.
"The new global currency must be created, and can no longer rely on the US dollar, as the main reserve currency," reports.
It is also indicated that the new backup system "should not be based on a single currency, or even on a multitude of national currencies, and instead should allow the emission of international liquidity, such as CDR, in order to create a more stable global financial system."
"Such emissions of international liquidity could also refresh financing investments in long-term sustainable development," there is said.
(That is, one global about ---- ku (Fed and Dollar) replace another!
Since the United Natural question: What is the point for these comrades in the abandonment of the dollar and replacing it with something else?! The answer is simple: the dollar comes a natural end, and the control over the world they are not going to let out of their hands! Therefore, of course, it is necessary to find a dollar replacement in the form of another global about ---- ki! Quote:
Rothbard and Hyulsman together. With comments.
http: //samlib.ru/editors/e/epport.run_s_d/rothul ....
Rotbard:
"It is now impossible to deny that everyone is tired of unprecedented inflation in the United States and all over the world, which the era of floating unsecured currencies, continued since 1973, in addition, we are tired of instability and unpredictability of exchange rates. The free market has an influence on the formation of prices. Uncertainty. Nowadays, the artificial political instability caused by the situation in the field of money circulation is further superimposed on this natural uncertainty (each country produces its own unsecured paper money, and there are no common money for all world money). Friedman's dreams of floating unsecured money They appealed to the dust, and the desire to return to the system of fixed exchange rates is quite understandable.
Unfortunately, the classic gold standard is in oblivion. The goal of most American and world leaders is a transition to a Keynesian standard, which is worldwide unsecured paper money issued by the World Reserve Bank (VRB). It does not matter how the new currency will be called: "Bark" (as caught Keynes), "UNITA" (the idea of \u200b\u200banother Father Bretton Woods System, IMF and WB, Harry Dexter White) or Phoenix (invention of the newspaper "The Economist "). It is fundamentally that it will create an opportunity of unlimited inflation on a global scale; Restrictions that impose on the inflation rate of the Perspective of the payment crisis or falling the course will be eliminated - after all, BBR will be able to underpon the necessary number of banks at any time and provide them with one or another country. The new banking institute will alone regulate and offer money, and their distribution between states; Naturally, VRB officials will holy believe that they are controlled by inflation and control it. Such a bank, if it is created, will be able to initiate inflation on a global scale and, without any doubt, this opportunity will use. Thus, the only obstacle separating humanity from the economic disaster - hyperinflation on a global scale will be the ability of the World Central Bank in time to respond to failures in the monetary system. Immiguous perspective.
The ultimate goal of Keynesian oriented world leaders is worldwide paper money and the World Central Bank. Their closest goal is to return to the Bretton Woods system, but without restrictions related to gold support. The largest central banks of the world are already trying to agree on the coordination of actions in the field of monetary and economic policy, agreeing the rates of inflation and the introduction of fixed exchange rates. The initiative to introduce a pan-European paper currency, emitted by the European Central Bank, was almost crowned with success. The propaganda campaign is built on the fact that the gullible public is simply cheating: they assure that free trade within the European Economic Community (UES) is impossible without a pan-European bureaucratic superstructure, one tax system, and especially without the European Central Bank and pan-European paper money. The next step after the creation of a pan-European Central Bank will be strengthened by cooperation with the Federal Reserve System and other major central banks, and there is not far from the World Central Bank. By the way, the path to the World Central Bank probably leads through Bretton Woods with all its charms like the crisis of trading balances and the consequences of the action of Grasshem, which are inevitable in a system based on fixed exchange rates of unsecured paper currencies.
Future world monetary system Looks gloomy. While the classic gold standard will not be restored, the pendulum will swing from the system of floating courses to the system of fixed courses and back. Neither the other system will not work normally. The consequence of attempts to avoid the collapse of the monetary system will be permanent dollar inflation (in the future - hyperinflation) and the growth of domestic prices in the United States. Inflation within the country will increase and will become uncontrollable, disintegration of the monetary system will occur abroad, and economic wars will begin. The only way to avoid a catastrophe is a radical reorganization of the American and global monetary system. The world should return to the free market of money, in other words, to gold, naturally chosen by the market for money. As for the state, it should completely select the right to regulate the money circulation.
"
Hyulsman:
"
Guido Hyulsman Euro: new song on old way
On the evolution of the monetary system after the release of the book M. Rotbard
The work of the Rothbard Murray is completed by the analysis of the principles of the global monetary system, which existed in the late 1970s. This article is devoted to how the monetary system developed in the last quarter of the XX century. To give a satisfactory explanation to the processes that happened at this time, we need to recall some aspects of monetary theory, in particular in more detail than that of the Rothbard, to dwell on the theory of competing currencies.
1. New cash authorities
Rothbard sets out the history of the global financial system in such a way that his reader is constantly bumping into one of the main postulates of a monetary theory, which is that the effectiveness of the exchange does not depend on the amount of money, in other words, the amount of money supply on the market does not matter. No matter how much money is in circulation: they can always be exchanged for the cumulative stock of goods and services available in this moment On the market. If the amount of money in circulation increases, they simply begin to exchange for goods and services at higher prices, and if it decreases, respectively, at lower.
For consumers, the price level does not matter. When the money in circulation becomes less, their nominal revenues fall, but at the same time prices are reduced, and on the contrary, when the money supply increases, the nominal incomes of consumers grow, but prices are growing too. It is clear that the real income of people does not affect the proposal of the money.
The same applies to businessmen. The success of their business is completely not related to the level of prices. The rate of profit is crucial, i.e. the difference between the cost of the production of goods and services and income from their sale. Profitable enterprises have a sufficient profit rate, unprofitable - insufficient, sometimes even a loss (when there are more receipts). It is clear that the profit rate does not depend on the nominal value values. If the offer of money in the market increases, prices and prices are growing, it affects the costs of an entrepreneur, and on sales receipts.
But if the total amount of money does not affect the effectiveness of their use as a means of exchange, then why is this parameter so much interested in economists and politicians? Why are financial institutions like Bundesbank (i.e. central banks) or International Monetary Fund (IMF)? After all, their main feature is just to regulate the offer of money and engage in their distribution.
Rotbard says that paying attention should be paid solely on changes in the cumulative money supply. Not that they somehow influenced the use of money as a means of exchange, however, with changes in the cumulative money supply, their redistribution is rigidly connected. When money mass It grows, then additional money is first getting a narrow group of individuals and only then gradually reach the rest of the market participants. Those who are the first to receive additional money, have time to use them to purchase products in old prices, and it is inevitably happening at the expense of the rest, those who get access to new money at the moment when prices have already grown.
In short, changing the offer of money practically does not affect their effectiveness as a means of exchange, but the redistribution of income within society depends on it.
From time immemorial, the state tried to make the manufacture of money under its control and redistribute them in their own interests. The Rothbard convincingly demonstrates how the state eventually managed to fulfill its intentions entirely and completely. In the past, the money was metallic (gold or silver), and therefore their production was limited to the reserves of the corresponding metals. The current, most often paper, money is, in fact, legalized means of payment, i.e. money substitutes. They can be printed at any time as the manufacturer (private or state) wants. Privileged citizens or groups of citizens who have the opportunity to preprit money at will, naturally become richer at the expense of all others.
Not much effort is required to assess the impact of the monetary authorities on the redistribution of money. On the free market, only the opinion of consumers determines the production of which goods and in what quantity is cost-effective. Thus, the manufacturer's revenues depend only on consumers. However, the intervention of monetary authorities distorts the action of the mechanisms of the free market. Since they should not release anything as you like, they support unprofitable enterprises, pumped by new money. Of course, they pay for this unprivileged market participants. Such actions of the monetary authorities undermine market competition. State manipulations with a printing machine create an illusion of the possibility of an infinite increase in budget deficit and infinite growth stock market.
So, paper money is the most important tool for the realization of the interests of privileged groups, privileged primarily in the sense of belonging to the old elites. They make the rich more richer, the strengths of this world - even stronger. Supporting on voluntary cooperation does not bring such power, which ensures control over the cumulative offer of money. Having at its disposal paper money, the state can continuously increase its costs, and citizens are forced to pay for it.
In international exchanges, various forms of paper money are used, but it does not change anything in essence. Paper money (and paper money is definitely state money) always serve for unfair enrichment. Any global monetary system based on paper money is just a continuation of the redistribution policy of the state at another level. At one time, national monetary systems were created by the state in order to ensure the privileged position of the political elite at the expense of all other citizens. So international financial institutions (European Monetary System, the European Central Bank, the International Monetary Fund, etc.) exist in order to preserve and strengthen the privileges of the political and administrative elite.
Per last years We have become much closer to the "New World Procedure", which seeks to impose Europe, Japan and the United States an influential group of faithful Keynesians: politicians, businessmen, intellectuals. They want the International Bureaucracy to receive full control over the economy of the free market. With a new order, the whole world must go to uniform paper money. The global police will follow the execution of decrees of the World Bureaucracy.
In 1990, Rothbard considered these plans for a distant future. Today they were partially implemented. The first brick of the "Willing New World" was the creation of a World Trade Organization, which replaced multilateral interstate trade agreements in the framework of the GATT. In early 1994, the North American Agreement on Freedom Trade (Nafta) was concluded, and in 5 years, in early 1999, the European Central Bank was created. The influence of the European Commission, which clearly considers itself a prototype of the future European government. The creation of the World Central Bank is not planned yet, but it is already obvious that this should be the next level of the development of the global monetary system after Europe will finally disappear national currencies. World Central Bank may well be created on the basis of the World Bank, which exists for quite a long time and does not understand what. Until now, the WB is mainly engaged in ensuring that the corrupt elite was preserved in the authorities in the third world countries, providing them with loans, that is, the funds seized from Western taxpayers. In exchange for loans, corrupt regimes agreed to military cooperation with the West during the Cold War. In addition, those exporting enterprises that have had good relations with the World Bank can count on privileges (this is called "point liberalization of export").
A widespread explanation is that the location of mankind to a new world order is worth a certain world conspiracy, is completely insufficient. If you call the actions and plans of a group of people "plot", then nothing clears nothing. Of course, all people have certain goals, they also have Keynesians, but it is necessary to prove why it is precisely supporters of the new Keynesian order to significantly achieve their goals. What was the objective conditions that allowed them to do?
")
To solve markets
Jomo Quama Sundaram, an economist from Malaysia, and Assistant Minister of the United Nations Economic Development, told at the news conference that "such an idea will be opposed."
"During the entire post-war period, we essentially had a dollar-based system," he said, adding that the gradual emission of the Special Borrowing could help countries gradually refuse the dollar.
Nobel Laureate Joseph Stiglitz, who had previously chaired the UN expert Commission, which considers the restraint of the global financial system, defends the creation of a new reserve currency, possibly based on CDR.
Russia with China also support this idea.
But Paavo Wairinen, Minister of Finland on foreign trade and development, told reporters, which doubts how generally it is possible to "adopt any political or administrative decisions on how to formulate a currency system on a global scale."
("Specialists" argue: What a world monetary system should be: "A new reserve currency, possibly on the basis of CDR" or "but Paavo Wairinen, Minister of Finland on foreign trade and development, told reporters, which doubts how it is generally possible" adoption Any political or administrative decisions on how to formulate the currency system on a global scale. "
"It is based in the markets. I believe that economic players in the markets will have a decisive influence on this issue. "
Special for development in the EU Andris Pibelgs said that this is a bad idea - dictate, what currency should be global.
"These are to solve the markets. Any intervention will create additional problems, and will make the situation even less predicted. "
".
But, for some reason, no one comes to any of them the simplest and natural solution - psmrdaz - a fully free world market of money with an absolute ban on chapelism (that is, with 100% reservation!)! Which will never choose the role of money paper, plastic or electronic money, and will always choose the role of money precious metals: gold, silver and copper! Cm. -
Rothbard and Hyulsman together. With comments.
