Letter To Editor
US Government disrespects traditional American values and unwilling to reform ‘Banking / Finance Sector’
|Hem Raj Jain
Sub:- US Government disrespects traditional American values and unwilling to reform ‘Banking / Finance Sector’
Ref:- (i)- Problems of JP Morgan Chase (JPMC) still being considered as US Government head-ache.
(ii)- US Government has not learned any lesson from 2007 financial crisis.
(iii)- Christianity (unlike Islam to some extent) gives only lip service to “abjuring of unbridled usury"
(iv)- In disregard to American value of ‘Right to Property’, the depositors & investors still not converted as shareholders of banks & financial institutions.
(v)- Huge election funds has made US politicians absurdly dependent on ‘Banking / Finance sector’
(vi)- US Government gives only lip service to preference in hierarchy of American values to ‘Dignity of Labor v/s ‘Usury’.
(vii)- Americans should be prepared to nationalization of loss and privatization of profit through likely bail-out to JPMC.
(viii) Being the leader of free world if USA does not reform ‘Banking / Finance Sector’ then what can be expected from other countries.
Through J.P. Morgan Chase & Co (JPMC) episode the USA has revived the memories of the mankind of ‘Financial Crises 2007’ which engulfed the entire world in it and is still on-going and will not be over unless USA brings about necessary reforms in ‘Banking / Finance Sector’. But being the leader of free world (democratic countries with free market economy) if USA does not reform ‘Banking / Finance Sector’ due its disregard to time tested Christian & American values and due to ridiculous dependence of US politicians on huge election funds from usurers as explained below, then what can be expected from other countries:-
(1)- The Christianity (historically opposed to usury) and American value system recognizes income from five sources (keeping in view the injustice in money-earning-money, the usury beyond certain limit) and acknowledge hierarchy of desirable income from five fields in descending order as per American value of ‘Dignity of Labor' v/s usury namely - (i)- labor (both manual and mental) (ii)- profit/dividends of owners of private capital which involves labor of entrepreneurs in commercial and administrative field if not so much in technological / production matters (iii)- profit/dividends of State Capital raised through fiscal deficits and profit of Public Sector Undertakings - in order to remove unemployment as per 'right to work' (the sine-qua-non of any democracy though it is a different matter that despite public debt of $ 15.7 Trillion the millions of Americans are still unemployed) (iv)- rent of residential houses/commercial properties where owners do very less labor only for maintenance of properties and (v)- interest to lenders who deposit and invest in commercial banks and in other loaning and financial institutions where owner of the capital (lender) is not required to do much labor to earn the interest.
(2)- Over the period of their history, the Americans have taken a pride in claiming that America believes in ‘right to property’ and this right is the fundamental basis of the US constitution conferred upon them by the Founding Fathers. For Americans this right to property mainly means that a person who is choosing how to use a valuable resource is the person who receives the benefit or pays the cost of the choice. But the utter confusion or rather the lack of commitment of Americans to this right is manifested not only in the bail-outs to the interest earning sector of the economy during (and still ongoing) financial crisis of 2007 but notably also the way the banking and non banking financial sectors are constituted.
(3)- In production and other sectors, the promoters launch a company in which others also join through equity capital. Because all these people are in the business of taking risk for earning profits/dividends hence they are given ownership rights and a control over the management of the company by electing the board at the annual general body meeting. This equity sharing and control over management justifies as per the ‘right to property’ the profits and the losses to the people who are in the business of earning profits. But US Government does not confer rights of ownership and the management control (especially the liability and risk of losses) to the people who are in the business of earning interest (usury) through banking and non-banking financial sectors.
(4)- The Americans do not understanding a simple fact that in banking and non-banking financial sectors some people as promoters of other business start interest earning business (usury) with their capital and invite huge capital from other persons (other usurers) without giving them ownership rights and management control through equity (in contrast to what is done in other sectors). With the result these promoters of the financial & banking sector become irresponsible and indulge in huge speculation, unjustified greed and high risk lending (as happened in past which was responsible for economic crises 2007 and also in present in JPMC case too) for the simple reason that they play on somebody else’s money. Hence they are not much bothered about it.
(5)- Nowadays the banking & financial sector (which has expanded exponentially and has the availability of immense cash as compared to other sectors) exercise huge and disproportionately high influence over the political life of the country. This is precisely the reason that these usurers have been able to enjoy this leeway in utter disregard to ‘right to property’ so eulogized by Americans.
(6)- This helplessness and fatal dependence of politicians is evident as Hillary Clinton also said during her this month open public discussion in Kolkata, India where she said that she cannot think of fighting and winning US president election in 2016 as huge money is required for it which is beyond her capacity. Even as per media reports – “[People who said they worked for JPMorgan Chase gave more than $800,000 to Obama in 2008, compared with $340,000 for his Republican opponent, Sen. John McCain. Obama is struggling with Wall Street's resentment this year. His campaign has received barely more than $75,000 in donations from JPMorgan employees, while Mitt Romney has attracted more than $370,000]”.
(7)- No body says that politicians should not take money from the people including business and industry to contest the elections. It is a matter of common knowledge that legitimate activities of canvassing, campaigning , publicity etc during any election does not require much money especially for the party candidates who have party cadre. One can understand that in India candidates are required to spent huge amount of money (Rs 40 t0 200 millions) in various elections because balance tilting crucial votes are purchased at 100 to 300 rupees per vote as can be seen openly and has been reported in media too. But there is no reason why candidates in USA also need such huge amount of money for contesting elections unless like India votes are being purchased in USA also or elections in USA have been purposely been made so costly by usurers that unless politicians take money from the banking and financial institutions they cannot contest the election (what to talk of winning these elections).
(8)- It is obvious that loss of any private business / industry including banking and financial institutions should not be the concern and head-ache of government. But the unwillingness of US government to convert depositors and investors of banks and financial institutions into share holders (which will make these share holders entitled for profit / interest and also liable for losses) has opened the gate for having so many regulators including Federal Reserve and plethora of unnecessary and meaningless regulatory laws on statute for ‘Banking / Finance Sector’. In reality these are nothing but an exercise for giving immoral benefits to usurers and for developing huge vested interest of the bureaucracy in such an elaborate State mechanism and which is in utter disregard to 'right to property' in the disguise of protecting the financial interest of the general public (though this so called general public is in fact interest seekers / usurers).
(9)- With the result now the FBI has reportedly opened an investigation into JPMC $2 billion-plus trading loss, thus increasing the pressure on the bank, which is already has Wall Street regulators looking at last week's massive trading losses. Moreover in Washington, treasury secretary Timothy Geithner reportedly said that JPMC's trading loss strengthens the case for tougher rules on financial institutions, as regulators continue writing rules from the 2010 law, and further said that the Federal Reserve, the Securities and Exchange Commission and the Obama administration are "going to take a very careful look'' at the JPMorgan incident as they implement the rules.
(10)- But this unnecessary and immoral indulgence of US Government and its regulators in the loss of the usurers, will not be that bad if it is the end of this entire tragedy. Otherwise the People of USA should be prepared for nationalization of loss and privatization of profit through likely bail-out to JPMC. The way JPMC matter has cropped up during US election year, one should not be surprised (given the pathetic dependence of US politician on huge election funds and ultimately on usurers, the banking and financial institutions) if JPMC ultimately end-up garnering huge bailout money at the cost and expense of the ignorant and gullible people, the US exchequers.
(11)- The Islam at least try to shape the economical policies of its adherents (to some and minuscule extent) abjuring interest earning (usury) by the Muslims, but due to US Government in Christian USA, the usury has a field day. One can only hope that situation will improve and the indulgence of US government in JPMC will be the last aberration and that too hopefully without any bail-out to JPMC.
Hem Raj Jain
(Author of 'Betrayal of Americanism')
Presently at -