The recent decision by the Fed to raise interest rates is the latest example of the rigged economic system. Big bankers and their supporters in Congress have been telling us for years that runaway inflation is just around the corner. They have been dead wrong each time. Raising interest rates now is a disaster for small business owners who need loans to hire more workers and Americans who need more jobs and higher wages. As a rule, the Fed should not raise interest rates until unemployment is lower than 4 percent. Raising rates must be done only as a last resort — not to fight phantom inflation.
What went wrong at the Fed? The chief executives of some of the largest banks in America are allowed to serve on its boards. During the Wall Street crisis of 2007, Jamie Dimon, the chief executive and chairman of JPMorgan Chase, served on the New York Fed’s board of directors while his bank received more than $390 billion in financial assistance from the Fed. Next year, four of the 12 presidents at the regional Federal Reserve Banks will be former executives from one firm: Goldman Sachs.
These are clear conflicts of interest, the kind that would not be allowed at other agencies. We would not tolerate the head of Exxon Mobil running the Environmental Protection Agency. We don’t allow the Federal Communications Commission to be dominated by Verizon executives. And we should not allow big bank executives to serve on the boards of the main agency in charge of regulating financial institutions.
If I were elected president, the foxes would no longer guard the henhouse. To ensure the safety and soundness of our banking system, we need to fundamentally restructure the Fed’s governance system to eliminate conflicts of interest. Board members should be nominated by the president and chosen by the Senate. Banking industry executives must no longer be allowed to serve on the Fed’s boards and to handpick its members and staff. Board positions should instead include representatives from all walks of life — including labor, consumers, homeowners, urban residents, farmers and small businesses.
Bernie Sanders: The Main Reason to Elect Him President
The economy of the United States has been controlled by big bankers for far too long, and Bernie Sanders has some great ideas about how to change that situation, and makes the economy more fair than it is. The entire game has become so rigged against the average person that it is nothing less than an atrocity, and Bernie Sanders will change that if he is given a chance.
When Senator Sanders says that banking officials should not be allowed to occupy seats on the board of the Federal Reserve, because he says it is a direct conflict of interest is absolutely correct. The current situation is unacceptable, and Bernie Sanders recognizes that fact.
No doubt, he will have to find an uphill battle to win his goal, but if anyone can do it is Bernie Sanders. This is a major reason that I will vote for him to win the Democratic nomination over Hillary Clinton. Can you actually see Hillary Clinton getting tough with the big bankers? I sure as hell can’t!
She has way too many friends on Wall Street to even suggest that big banks be regulated. They are among some of the biggest supporters and contributors. Do we really expect her to kill the goose that lays the golden eggs? No, only Bernie Sanders, who takes no contributions from these people is capable of doing the job.
That’s why I say, BERNIE SANDERS FOR PRESIDENT.