Derivatives Need Regulation

Our Big Banks have over $200 Trillion in derivatives.  These are bets related to future asset increases or decreases.  If their bets go bad, they could go bankrupt.  There are currently no US laws on the books that require these banks to limit their derivative bets. 

We need for Congress to pass a law that requires all entities to limit their derivative bets to not exceed their net worth including all of their assets.  If their bets go bad, they would go bankrupt.  We do not want any bank or other entity “bailed out” by our government or Federal Reserve.  We expect those banks who do go bankrupt to administer the transfer of our money and loans to another bank.  We expect them to get their own loans to allow them time to sell their assets to pay for their losses from these derivative bets.  We don’t want the Federal Reserve to print any money.

US consumers rely on being able to access cash through their bank ATM machines and we don’t want any interruption to prevent us from getting our own money.  We are used to using our credit cards and want to choose our credit card processing companies based on their ability to continue this service without interruption.  We need regulations to require banks to keep sufficient reserves to ensure our ability to function.

We don’t want US law to allow the federal government any right to redirect our private investments to purchase Treasury Bills.  We want Congress to cut federal functions based on the “enumerated powers” stated in the US Constitution (as written).  We expect the federal government to balance their budget and pay off the National Debt. 

We expect the federal government to keep Social Security Retirement benefits at current levels for all who are current Social Security recipients.  We expect the federal government to deposit all social security payments into individually owned accounts for all US citizens who are not yet Social Security recipients. We encourage these citizens to continue to have 15% of their earnings to their individually owned retirement accounts.

From 1945 to 2008, we invested equally in stocks and debt.  We allowed the federal government to print money and cause inflation. The buying power of the 1913 US dollar dropped to 3 cents. Our instinct was to buy what we needed quickly before prices rose again. The dollar value of what investments we did have tripled because they were based on collecting high interest rates and climbing stock prices. 

In 2008 interest rates were “managed” down to 3%, the Treasury Bill went to 1% and interest income dropped to zero. If governments now balance their budgets, pay off their debts, stop printing money and allow the market to set the prices, we will again be able to accumulate wealth. We need to stop over-leveraging, avoid debt, stop excessive immigration, return manufacturing to the US and allow US citizens to earn their own living again.

Norb Leahy, Dunwoody GA Tea Party Leader