One of the most incredible tales of corruption in America is the crony banks we have. When caught doing things that are unlawful, no one gets justice. In fact, they get a slap on the wrist and a fine of several million dollars, which is actually paid with fiat money that comes from the Federal Reserve with the approval of Congress, which is then paid by fees by the common people. However, with the claim by this administration that banks are too big to fail, but also apparently too big to jail, they could learn a lesson from Iceland who jailed 26 corrupt bankers to 74 years in prison for their roles in the country’s 2008 economic collapse.
Nation of Change presents the background:
When the banking induced “Great Recession of ’08” struck, Iceland’s economic hit was among the hardest. However, instead of rewarding fraudulent banking procedures with tons of bailout money, they took a different path.
Prior to the recession, Iceland had one of the more thriving economies in the world, in spite of the fact that their total population (327,000) wouldn’t even fill a mid-sized American city. When the recession struck, they were among the earliest and hardest hit. However, instead of running to the vaults to shower the banks with money, they let the banks fail. They also resisted traveling down the European/Republican austerity road. Instead, they kept their social programs intact at a time when they were most needed.
And, they sent fraudulent bankers to jail.
When Iceland’s three major banks collapsed, it resulted in defaults totaling $114 billion in a country with a gross domestic product (GDP) of only $19 billion. In October, 2008 the parliament passed emergency legislation to take over the domestic operations of the major banks and established new banks to handle them. They did not, however, take over any of the foreign assets or obligations. Those stayed with the original banks, right into bankruptcy.
So, what happened?
While Tim Worstall at Forbes goes over many of the differences between what took place in Iceland and what takes place with banks in the united States, he attempts to portray American banks as simply getting their economics wrong rather than doing something criminal, though he does state there are laws in America that coincide with the laws of Iceland that would lead bankers to jail just as in Iceland.
The obvious problem that I see is that when five major banks in America pled guilty to manipulating global currencies and interest rates, they were fined $5.7 Billion, but no one got justice. Banks have been “insured” at tax payer expense against robbery. The Federal Reserve makes money off of that. Politicians have written laws in such a way that many banks succumb to their threats, which have led to housing bubbles and all sorts of problems in lending.
Then, let’s not forget the bail out of the too big to fail banks that elected representatives told us we had to engage in or there would be Armageddon. And, by the way, it wasn’t just Communist Democrats telling us that. It was Republican leadership telling us the same story. The American people have been shackled with an enormous financial burden to the tune of trillions of dollars by way of the actions of those in DC regarding the banking system, and that doesn’t even begin to speak of the money being unconstitutionally handed out to the auto industry, insurance companies, failed green energy companies and more.
These predators are feeding on the last remains of the system before it is completely devoured, and many of them are now forced to do what they willingly submitted to in the first place.
Do the banks ever take responsibility for their unethical actions? Consider that the former head of the Federal Reserve called on Wall Street Executives to be held accountable, but he doesn’t want the Federal Reserve to be held accountable. Apparently, neither does Senator Ted Cruz (R-TX), who failed to show up to even vote to audit the Fed in January. That’s telling, and don’t give me, “He’s running for president.” His current job is the senate, and he’s not constitutionally ineligible! Though I don’t think Marco Rubio (R-FL) is constitutionally eligible either nor his voting record spectacular, both he and Rand Paul (R-TX) showed up and voted in favor of auditing the Fed.
However, consider that behind the corruption of both Wall Street and the banksters are politicians who go along to get along. Those that fail to expose the corruption are complicit in it. My question is when will there be real justice brought upon all of these people whether they are a politician, the banks or those engaging in corrupt practices on Wall Street? Paying a fine to government is not justice for cheating people out of money or indebting others because of bad business practices. That’s simply extortion.
Jesus condemned the money changers, who profited from their brothers in an unlawful manner (Matthew 21:12). If Americans would get back to understanding biblical principles concerning money, law, government and justice, we might see a great turnaround and reformation in our land.
However,I’m pretty certain justice will not happened until we, as a people, repent before a just and holy God. May He do just that!