Incorporating the The Germantown Chronicle & The Northwest Independent

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As you read the news reports regarding the debate last night between Democratic presidential candidates Hillary Clinton and Bernie Sanders, you might think there was some intensity and controversy surrounding important issues in the recent past; such as the bank collapse and bailout. The same might be said about how we started exporting jobs overseas after 2000 in a manner that began what some call the raid on the middle class.

At the forefront of the look back on bank failure we have the repeal of the Glass Steagel Act of 1933 that forcibly separated banks, brokerage and insurance from common ownership and back door dealing.  While a number of long standing critics,  Bernie Sanders, Elizabeth Warren and others make a valid point, that the November 1999 deregulation that in effect ended the Glass Steagel Act and allowed financial institutions even more leeway than they had in the “bad old days” of Robber Barons, they omit some very important aspects of how it all came about.  The principal one is that it was done with the collaboration and at the direction of then Democrat President Bill Clinton, and its architect was none other than Clinton appointed Secretary of the Treasury and aggressive lobbyist insider, Robert Rubin.

Rubin, long affiliated with banking and securities insiders like Sanford Weil of Citibank (which also controlled Travelers Insurance) virtually drew up the federal agreement to end regulation.  Rubin worked hand in hand with Washington lobbyists to get it done, and it took some arm twisting to fight off the objections from both congress and financial gurus.

If Mr. Sanders had the courage of his so-called “convictions” he should have spelled out the well-known story of how Robert Rubin touted regularly how much President Clinton supported the repeal bill and gladly signed it on November 12, 1999, one year before he left office.

What that bill did over the next few years was to unravel any number of standing practices to separate, stabilize and keep competitive our financial industries.  What few realize is that it also shut down practices in place since World War II to monitor the flow of large money transfers both to and from overseas.   The Treasury Department had kept that practice alive so that suspicious movements of large blocks of cash by those who might have intentions other than honorable would be known by the federal authorities.

What Clinton and Rubin accomplished, along with the banking debacle, the start of massive job exportation to the third world, was to call off the watchdogs.  A check of the facts shows that is just how our enemies financed 9/11 and much more to this day.

Hillary got another pass.  Wonder when the press will begin asking her the hard questions.

Jim Foster

The Independent Voice