Economic Meltdown Architects on Obama's Short List for Advisors

by Erik Larson | November 9, 2008 at 02:47 pm

402 views | 43 Recommendations | 11 comments

Obama has talked a lot about putting Main Street first, but the list of people from whom he is choosing economic advisors is stacked with the same Congressional/Executive/corporate establishment insiders most responsible for the policy changes that permitted Wall Street criminals to loot the US and global economy.

The October 2008 financial meltdown is not the result of a cyclical economic phenomenon. It is the deliberate result of US government policy instrumented through the Treasury and the US Federal Reserve Board.

This is the most serious economic crisis in World history.

The "bailout" proposed by the US Treasury does not constitute a "solution" to the crisis. In fact quite the opposite: it is the cause of further collapse. It triggers an unprecedented concentration of wealth, which in turn contributes to widening economic and social inequalities both within and between nations.

The levels of indebtedness have skyrocketed. Industrial corporations are driven into bankruptcy, taken over by the global financial institutions. Credit, namely the supply of loanable funds, which constitutes the lifeline of production and investment, is controlled by a handful of financial conglomerates.

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In a bitter irony, the engineers of financial disaster are now being considered by President-Elect Barack Obama's Transition Team for the position Treasury Secretary:

A more complete list/detailed examination of Obama's advisors can be found in the article Obama Mania by Stephen Lendman. (I hilighted it at NowPublic with the title New Hope for Fascism: World Goes Wild Over Obama Cabinet Picks )

Tell Obama what you expect from his administration, if he and the Democrats are to get your vote in 2012 Change.gov

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Erik Larson

at 17:13 on November 9th, 2008

thanks guys- the global derivatives market is 50-60 trillion dollars (3-4 times the amount of dollars in existence), the US is $11 trillion in debt with a declining dollar and has tens of trillions in unfunded liabilities including the future costs of the Iraq conflict and maintaining US corporate-military hegemony around the world, which Obama has pledged to do first of all, it seems, considering his statement to Wolf Blitzer that he might be putting his platform on hold in order to continue bailing out his campaign contributors in the financial sector, and his speech to AIPAC and other statements has made clear that he'll use the bomb on Iran, if that's what it takes to keep them from getting it.

Considering the fundamental changes that are necessary to make our social-political-economic systems serve the People and the public interest instead of the personal interests of an immoral, corrupt and incompent corporate "elite" class, none of the people on Obama's list are qualified. There are many good ideas from the so-called left, right and center that are being shut out of the corporate controlled debate on TV, but are being presented to the public on NowPublic.com and other new media, which have been consistently getting more popular as they get cheaper and easier to use, as people find out about them and everything they're missing on TV.

imho, human nature and human behavior will eventually get the world out of this economic crisis. There is no reason why the People should continue tolerating mismanagement of our economy and government by war pigs and corporate criminals, though; they're not doing a good job. I know Obama was just elected; i'm not suggesting impeach him, i'm suggesting make your voice heard online, in your life and by your representatives and the media; hold him, the Dems and the MSM accountable. I believe in sharing information and stimulating public dialogue. If Obama only maintains Net Neutrality and invests in green energy, a lot of good will result. In any case, the world will keep getting wiser and keep changing for the better, becoming more prosperous and transparent. Eventually we'll be able to keep sociopaths out of public office and off corporate boards the same way we're able to stop most terrorist attacks, and keep molesters away from children.

Does anyone know why this would not work or is not a good idea? A far more efficient economic system is possible

Ban charging interest on loans (interest is usury, anyway- if you believe the Bible) and charge a tax on money held? It worked in Worgi, Austria in 1933; it's not a tax on wealth, capital or property, only on hoarding money. In Worgi, it led to full employment, 5% economic growth, funded public works projects and was shut down by the central bank when they discovered it was successful.

gerrypopplestone

at 18:42 on November 9th, 2008

The Washington Consensus all over again? Those Stamford/Harvard men sure keep together! Your comments above are excellent - even inspiring!

Terri Potratz

at 15:01 on November 9th, 2008

Interesting...

Fairbanks

at 15:14 on November 9th, 2008

Fact is there is a limited pool of experts to draw from. Don't look for fresh ideas.

urbano411

at 16:49 on November 9th, 2008

I sometimes wonder if we are all just falling up...

René

at 21:59 on November 9th, 2008

Expected.

yul3452

at 22:11 on November 9th, 2008

Hi Erik,

While I do hold that what you say is partially true, I have a hard time following the logic of making a President that is still to hold office to quote you: "hold him, the Dems and the MSM accountable".

This is because we all got here not because of Obama or the Dems but because of the so-called Neo-Cons that dominated the Bush White House. Or did you forget?

You have Wolfowitz at World Bank, you have the oil tycoons, and the war mongers and war hawks led by Cheney and associates...they even modified their own civil liberties through the Patriot Act..now they can not only spy on Americans..but also torture people legally..

Then you had AIG...if you research this company well enough, you will find out the seed fund for this group started with the Cosa Nostra..check out their original chairman Maurice Greenberg, and their London operation alone resulted in losses amounting to over $370 billion and that is just a six months trade...so why are you spotlighting people who never had anything to do with this mess...just because they're meeting and trying to bang their heads looking for a solution??

Let's have a top ten list of names of people who created this monster economic mess...probably we'll have to fly them to countries who practice torture or would you prefer we place them in Guantamo...it is legal to use the water treatment on these guys according to Bush's law...and then for good measure confiscate the huge monies and homes they got as proceeds of this enormous crime against humanity...

René

at 22:42 on November 9th, 2008

I like the bit about 'confiscate'.

Erik Larson

at 11:08 on November 10th, 2008

thx guys.

Yul- "so why are you spotlighting people who never had anything to do with this mess...just because they're meeting and trying to bang their heads looking for a solution??"

Check my channel and you'll see harsh criticism of Bush/neocon/Rethug policies. As outlined in the article though, many of the people Obama is surrounding himself with are the same ones who worked for the deregulation that permitted the pigs on Wall Street to pump and dump our economy. The Dems and Reps share many of the same backers; uber-wealthy and immoral people don't care whether Dems or Reps are in charge, as long as they don't un-rig the fake "free" market system. So far, Obama's voting record, statements, policies and staff/cabinet picks indicate he plans to perpetuate this system, more than reform it.

Perhaps you could provide a link for the Cosa Nostra/AIG link- i found a lot of comparisons with a search just now, but not the seed money.

yul3452

at 23:43 on November 9th, 2008

I still think its too early for that...even now Obama's camp is reporting that Bush had been issuing secret Executive Orders e.g. one that allows a friend to do oil drilling in Utah??? I'll upload this report soonest...or are you aware that the US military is bombing Pakistan under a four-year old order (circa 2004) of Ronald Rumsfeld. This order covers over 20 countries worldwide and some of them are even allies of the US.

Erik Larson

at 11:26 on November 10th, 2008

yul; I quit the Dems after Kerry rolled over for Bush's stolen 2004 election; I registered Green, as they were the first party with the integrity to demand answers and accountability for 9/11.

I want to see Bush, Cheney, Rice, Rumsfeld and many other Bush Admin figures on trial for treason and war crimes. You will not find me defending Republicans or their policies, except for those rare occasions when they do something right.

The Dem and Rep parties are two fake wings of the Elite War Party, and it has been that way for decades now.

If you want change and peace, look at what Obama's done and been doing so far, and compare it to your standards, not to the "bar so low it's below Hell" Bullshit administration.