In one sense, it's totally premature to comment on the proposed reforms of the U.S. financial sector – released by the Obama regime today. Because some of the proposals are opposed by the U.S. financial crime syndicate, we can expect some of the measures to be watered-down, or completely removed.

Thus, it is most useful to look at components which are not opposed by the bankster-oligarchs. Not only are these proposals likely to emerge unscathed from the pork-and-lobbying process, but anything which is deemed acceptable to the bankers must (by logical necessity) be harmful to the United States and its citizens.

The U.S. economy is in its current position today due to a full decade of the U.S. financial crime syndicate engaging in multi-trillion dollar scams and reckless gambling which was totally against the interests of the U.S. and the American people. Nothing in the Obama proposals prevents these fraud-factories from engaging in more scams and gambling in the future.

The Federal Reserve – a cabal of private bankers – which created the “bubbles” in the U.S. economy, and was willfully blind to the nefarious conduct of Wall Street is now being assigned the duty of protecting the U.S. financial sector from “systemic risk”.

This is much like hiring a convicted rapist as a “security guard” for an all-girls school.

By this one gesture, it is abundantly clear that Obama has no intention of any real reform, at all. In an interview yesterday with Bloomberg, he stated:

“We have to have somebody who is responsible for seeing the risks of the system as a whole and not just individual institutions. The Fed is best positioned to do that.”

Apparently Obama doesn't do much reading. As I pointed out in a commentary from a couple of months ago (“Greenspan: spotting a bubble is easy”), in a rare moment of honesty “Sir” Alan Greenspan stated the following, “Spotting a bubble is easy, what is difficult is predicting when it will pop.”

In other words, it doesn't require any expertise to “see” systemic risks, what is required is to have an accountable entity which is actually willing to do something to alleviate those risks. The Fed clearly fails to measure up to either of those criteria.

As a cabal of private bankers, answerable to no one, this has obviously been an entity which has had zero accountability since its creation nearly a century ago. It is even more absurd to expect the Federal Reserve to ever put the interests of the United States and its people ahead of the interests of bankster-oligarchs.

Greenspan's comment is crystal-clear. The Fed saw these bubbles coming: the “dot-com” bubble, the housing bubble, and the more recent Treasuries bubble. The problem is that the Fed has absolutely no intention of ever actually doing something to prevent the next bubble from forming.

Given its track record, even if the Federal Reserve was a part of the U.S. government (which it clearly is not), it could not be trusted to be the single guardian against “systemic risk”. However, with the Fed being a private bank with neither any explicit or even implicit accountability for its actions, assigning to the Fed this function could only be described (in the most-charitable terms) as wishful thinking.

However, given the intelligence which Obama clearly posesses, it would be impossible to 'credit' him with such naivety. Instead, we can only see this as a cynical capitulation to the bankster-oligarchs.

It is in this light that we must now view the rest of these proposed “reforms”. Yes, there is a proposal to “regulate” many of the “exotic financial products” which the U.S. financial crime syndicate used to scam the world for trillions of dollars.

However, there were plenty of regulators (and regulations) in place prior to the collapse of the U.S. financial sector. The problem was that all these regulatory bodies were hopelessly corrupt, with the possible exception of the FDIC (see “U.S. Fraud SYSTEMIC and INTENTIONAL – William Black”). There is no reason to believe the new regulator created to “police” these financial products will be any less corrupt.

In addition, (as Bloomberg put it), “The administration is seeking [emphasis mine] to require firms which pose the biggest risk to the financial system to hold extra capital.” Very likely this is one of the proposals which will never make it past the banksters' servants in Congress.

However, even if this vague proposal survives, it is meaningless if U.S. banks are to be allowed to continue to engage in totally fraudulent accounting, which was recently institutionalized by the U.S.'s accounting “watch-dog” (see “FASB strong-armed into mark-to-fantasy accounting”).

In short, it is clearly the intention of Wall Street (as expressed by their servants in the U.S. government) that they be allowed to engage in “business as usual”. Calling this “reform” is merely a very, very bad joke!

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