Exclusive: Is Obama Ready to Give Away the Store?

by VINCENT GIOIA April 9, 2009
It’s bad enough that despite the clear wording of the Constitution that only Congress has the authority to “coin money,” this power was given to a national bank never intended or conceived by the country’s founders. The Federal Reserve Bank is a national bank with private ownership never actually overseen or even audited by Congress on behalf of American citizens. Now under the most socialist-minded president in our history control of the country’s banking system will be delegated to an international authority, if President Obama has his way.
With a great deal of fanfare, Obama’s first foreign trip as president was to participate in an international conference by the “G-20” group of first world countries to discuss the global financial disaster. As a public relations escapade, Obama’s journey abroad may have been a personal triumph but as a representative of American national interests, it was a total failure. Even his personal triumph came at the expense of national interest, since he was the first president in history to bow before a foreign leader – the Saudi King at that; continually criticize his own country to the delight of our enemies; and establish a new American foreign policy as one of appeasement of those who would destroy America if they could. Obama says we are not at war with Islam, takes his shoes off to visit a mosque and equates Islam whose written tenets in its holy book, the Koran, is filled with hate and destruction of all people who don’t accept Islam as a way of life.
The 20 countries did not agree on everything and certainly none of what President Obama was advocating, but they did agree, along with Obama, to establish a global economic union with uniform regulations and bylaws for all nations including the United States. They agreed on the establishment of a “Financial Stability Board” (FSB) that will be composed of a group of central bankers from each of the G-20 countries and the European Union. In essence, Obama agreed to accept the idea that this international group of bankers who do not have the national interest of the United States to dictate how American agencies like the SEC, Commodities Trading Commission, Federal Reserve Board and others regulating our business and finance will operate.
The authority and power willingly delegated by our president to this international body, FSB, is enormous and virtually open-ended. It prescribes the "framework of internationally agreed high standards that a global financial system requires." These standards are to include the extension of "regulation and oversight to all (not just some) systemically important financial institutions, instruments, and markets [including] systemically important hedge funds." If the FSB deems some financial business or institution “systemically important,” it can regulate it in any of the G-20 countries.
As part of its mandate, the FSB will be implementing “… tough new principles on pay and compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms." In this Obama is ahead of the curve inasmuch as the power to dictate terms of employment and compensation of chief executives has already been assumed by Obama’s Treasury Secretary.
We know what the FSB has in mind to do with the imprimatur of our American President by considering what Mario Draghi, Italy's central bank president had to say about how the world’s financial institutions should be regulated. He said that "every financial institution capable of creating systemic risk will be subject to supervision." He adds that "it is envisaged that, at international level, the governance of financial institutions, executive compensation, and the special duties of intermediaries to protect retail investors will be subject to explicit supervision."
Not only does Draghi think the institutions mentioned should be subject to “explicit supervision,” but FSB should also set standards and assure application of those standards to all countries. Draghi told the press before the G-20 meeting that while "I don't see the FSF [now the FSB] as a global regulator at the present time . . . it should be a standard setter that coordinates national agencies." This "coordination of national agencies" and the "setting" of "standards" is an explicit statement of the mandate the FSB will have over our national regulatory agencies.
Obama apologized to the world for the role America played in the international financial crisis because of inadequate regulation, so in his best sack cloth and ashes costume, Obama has deliberately subverted our countries interests to a group of countries who don’t give a whit about us and that include many that would like to take America down to their level. This is one way Obama can achieve his goal of establishing European Socialism in the United States.
No longer will presidential appointees make policy for the economy of the United States’ these decisions will be made by an international body. In the future, we can expect those appointed to run Federal Departments and agencies to take their orders not from the president or the American people but from the FSB which is currently composed of the central bankers of Australia, Canada, France, Germany, Hong Kong, Italy, Japan, Netherlands, Singapore, Switzerland, the United Kingdom, and the United States plus representatives of the World Bank, the European Union, the IMF, and the Organization for Economic Co-operation and Development (OECD). Note that Europe has six of the 12 national members. Eventually the G-20 will enlarge the FSB to include all its member nations but will retain the bias of the European socialists. Imagine: the United States with a GDP three times that of the next largest G-20 member (Japan) will have one vote along with basket-case countries like France and Italy.
Obama has promised “change” and he fully intends to deliver on that promise. But is this the kind of change those who elected him to high office expected or had in mind; I don’t think so for most of them. A socialist or fascist state (however you define these terms) is not what patriotic Americans want.
Family Security Matters Contributing Editor Vincent Gioia is a retired patent attorney living in Palm Desert, California. His blogs at www.vincentgioia.com and he may be contacted at gioia@gte.net.

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