Fascist Socialist Blackshirts (FSB)

Mario Draghi

On April 2, 2009 the United States no longer existed as an independent sovereign nation. Our Founding Fathers work was nullified at the meeting of the G-20 in London. The joint communiqué essentially announced a global economic union with uniform regulations and bylaws for all nations, including the United States. Henceforth, our SEC, Commodities Trading Commission, Federal Reserve Board and other regulators will have to march to the beat of drums pounded by the Financial Stability Board (FSB), a body of central bankers from each of the G-20 states and the European Union. In my opinion, this is clearly unconstitutional and surrenders our national sovereignty.

The mandate conferred on the FSB is remarkable for its scope and open-endedness. It is to set a “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 systemically important financial institutions, instruments, and markets … (including) systemically important hedge funds.”

Note the keyword: “all.” If the FSB, in its international wisdom, considers an institution or company “systemically important,” it may regulate and oversee it. This provision extends and internationalizes the proposals of the Obama administration to regulate all firms, in whatever sector of the economy that it deems to be “too big to fail.”

The FSB is also charged with “implementing tough new principles on pay and compensation and to support sustainable compensation schemes and the corporate social responsibility of all firms.”

That means that the FSB will regulate how much executives are to be paid and will enforce its idea of corporate social responsibility at “all firms.”

The head of the Financial Stability Forum, the precursor to the new FSB, is Mario Draghi, Italy’s central bank president. In a speech on Feb. 21, he gave us clues to his thinking. He noted that “the progress we have made in revising the global regulatory framework … would have been unthinkable just months ago.”

He said that “every financial institution capable of creating systemic risk (that is nearly every financial institution in today’s global economy) 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.” I predict the next step will be to prosecute any businessman or businesswoman who steps out of line. Draghi did not mention George Soros who can singlehandedly destroy a nation's currency if he so wishes. (See Article Power Behind the Throne) Soros is the man who needs to be regulated but he is pals with Draghi and other international financiers so he will be immune from regulation and free to create all the systemic risk he wishes.

Draghi joined Goldman Sachs as a partner in January 2002, and resigned in January 2006.
Starting in April 2006, Draghi has been Chairman of the Financial Stability Forum, an organization that brings together financial regulators and central bank officials from a number of different countries (the G7 countries as well as Australia, Hong Kong SAR, the Netherlands and Singapore).

He is a trustee at the Princeton Institute for Advanced Study and also at the Brookings Institution, in Washington, D.C. In 2007 he became a member of the influential Washington-based financial advisory body, the Group of Thirty. Maybe Mario will make the trains run on time.