Saturday, May 18, 2013

"A crisis of values that is extremely deep"

"It is quite important to recreate a mechanism where liquidity is separated from large scale financial gambling." 

In other words, money must be issued debt-free (without interest) in the public interest (the common good) and its quantity transparently controlled. This implies that the state's sovereign right must be exercised for this to happen (the government must issue the money to the good produced) and the power taken away from the banks that have enslaved the governments.

"We have basically two levels of decision-making. One is separating liquidity in the banking sector from other kinds of speculative financial activity. This I would do for sure...the second point then is...whether fractional reserve banking itself has value enough to keep it in its current form."

"Really I can only emphasize the palpable anger and vulnerability that's felt right now is very, very high."

"I believe we have a crisis of values that is extremely deep...Because the regulations and the legal structures need reform...But I meet a lot of these people on Wall Street on a regular basis right now. I'm going to put it very bluntly: I regard the moral environment as pathological. I'm talking about the human interactions that I have. I've not seen anything like this, not felt it so palpably. These people are out to make billions of dollars and nothing should stop them from that. They have no responsibility to pay taxes, they have no responsibility to their clients, they have no responsibility to people's counter-parties in transactions; they are tough, greedy, aggressive, and feel absolutely out of control - in a quite literal sense. And they have gained the system to a remarkable extent, and they have a docile president, a docile White House, and a docile regulatory system that absolutely cannot find its voice; it's terrified of these companies. If you look at the campaign contributions, which I happened to do yesterday for another purpose, the financial markets are the number one campaign contributors in the U.S. system now. We have a corrupt politics to the core, I'm afraid to say. Both parties are up to their necks in this. It has nothing to do with Democrats or Republicans; it really doesn't have anything to do with right wing or left wing; the corruption is as far as I can see, everywhere. But what it has led to is this sense of impunity that is really stunning, and you feel it on the individual level right now, and it's very, very unhealthy. I have waited for five years now to see one figure on Wall Street speak in a moral language, and I've not seen it once. And that is shocking to me."

 --Jeffrey Sachs of Columbia University (Bold italics mine)

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