Positions and Viewpoints: Banks

Since the early days of the Republic, the people of the United States have been wary of the aristocracy. The colonists fought the American Revolution to win their freedom from a European aristocracy which abused power and took advantage of colonial commerce for their own personal gain. From the beginning of this great democratic government, a struggle for power has ensued in which those of great wealth have sought and succeeded at dominating and controlling commerce. Our history offers many illustrations of wealth being used for political and personal gain to the detriment of the people.

The consolidation of power in the form of banks is not a new idea. A quick study of history will reveal that President Andrew Jackson (for all his shortcomings) opposed big banks, especially the Second Bank of the United States. Jackson felt that big banks consolidated too much power with the ability to control and corrupt. Jackson also felt that easy money created a false economy that could be manipulated by those controlling the banks. Despite warnings that his actions would cause serious economic problems, Jackson used his executive power to break up the Second Bank of the United States and distribute assets to twenty-three (23) state banks.

Throughout his presidency, Andrew Jackson waged a battle with the Second Bank of the United States and the American aristocracy. He felt big money led to corruption, selfishness, scandal, and mismanagement that sought to influence elections, pay off lawmakers, and control the nation’s economy. Jackson believed what history has too often confirmed, big money leads to the marshalling of power and influence by a few institutions and interests seeking to profit without regard for the people or the nation.

Today, we operate from an archaic set of principles. Our laws governing monopolies and trusts fall far short of the laws needed to protect the interests of hard working men and women in this country. Big banks such as Citicorp/Citibank, Chase, Bank of America, and J.P. Morgan are out of control. These megabanks have the power to manipulate the market - which is far from a free enterprise system and leads to corruption and abuse.

The “too-big-to-fail” banks represent a tyranny of the indispensable. These institutions have created a network of banks that provide services involving hedge funds, pension funds, mutual funds, and every imaginable pool of money. This interconnectedness caused the feeling that they needed to be bailed out for fear that a failure of one would cause a chain reaction of failures which would irreparably damage the economy.

The problem with the Troubled Asset Relief Program (TARP) is that while it shored up these megabanks, it did not cause these institutions to change their abusive practices. During 2008, the companies that received bailout money spent $114 million on lobbying and campaign contributions. These companies received $295 billion in bailout money. Sheila Krumholz, executive director of The Center for Responsive Politics, said of this information, “Even in the best economic times, you won’t find an investment with a greater payoff than what these companies have been getting.”

On top of this, TARP did not resolve unemployment, strengthen the economy, restore consumer confidence, or result in a miracle recovery. Banks that received bailout money paid their top executives nearly $1.6 billion in salaries, bonuses, and other benefits in 2007. Even though it has been promised that a cap is set on executive pay at companies that received bailout money, these companies are simply deferring compensation for unlimited stock options. And so, the big banks just get bigger, the CEO compensation remains obscene, and things remain the same.

A society that allows financial institutions to become “too big to fail” runs the risk of becoming enslaved to those institutions. Instead of a democracy, our government becomes - in essence - an oligarchy. In such a system, the elected officials become beholden to the big money interests because they rely on them for campaign finance and resources. In attempting to address the financial issues and concerns of the public, the elected officials appoint experts from the banking and financial world to make recommendations regarding their own existence. This is tantamount to putting the fox in charge of the hen house.

What needs to occur is a two-phase approach to the banking dilemma faced by this country. The first phase needs to involve strict oversight and regulations that create an environment in which banks and mega-corporations are required to downsize according to established size limits. These size limits must be based on establishing a level playing field that serves the best interest of the people. The second phase involves the creation of a Consumer Protection Regulatory Agency with far-ranging authority of enforcement impacting banks and mega-corporations in bringing about and maintaining a competitive marketplace.

While the focus must always be on the idea of a free marketplace, we must recognize the fact that the current instability of the system is the result of deregulation. History supports the belief that megabanks and mega-corporations result in corruption, abuse, and excessive profiteering at the expense of the people. The purpose of regulation must be to level the playing field to foster competition, establish consumer fairness, and eliminate greed and fraud.

Megabanks are just the beginning. Our government must take steps to break up mega-corporations and establish national consortiums that allow small businesses to purchase goods at the same price as larger competitors. These actions on the part of the government will cause a resurgence of small business ventures in small communities across this country. This resurgence of small business ventures will lead to jobs and a reemergence our smaller communities. This approach will effectively strengthen the economy from the bottom-up.

It is the people of this great nation - not the social elites - that must be the force in our government! It is naïve and foolish to believe that social and economic elites will look after the best interest of hard working men, women, and their families. We must insist that our government of, for, and by the people act in the best interest of the people. We can do this by remembering that nothing can prevail against the resistance of public opinion.

~Bill

Video: My Announcement Speech

I had a great time during my recent announcement tour. I had the pleasure of meeting many energized, dedicated people throughout my 13-stop tour of the 4th District. A video of my speech from our stop in Ames on December 18th has just been uploaded to YouTube.com.

You can view the video in two parts:
-- To see Part 1, visit http://www.youtube.com/watch?v=vFwBAoz5Kcc
-- To see Part 2, visit http://www.youtube.com/watch?v=R7BSIeJCijc

~Bill

The Greatest Gifts

In a world where the winner is too often defined as the person with the most toys, it is refreshing to enter the season where others are supposed to be more important than ourselves, and the dawning of a new year brings hope for tomorrow. This is the most wonderful time of the year. It is the season for giving!

As I consider the spirit and magic of this time of year, my thoughts always turn to the children. In the innocence of children, we find the beauty and promise that the world can be a better place for us all. Through our own children, and the children of our community, we can instill the qualities that make for healthy, happy, and prosperous lives. It is the gifts we give our children that make the difference in the lives they lead.

As we consider this season of giving, we need to ask, “What gifts can make a difference for our children?” The gifts that mean the most to our children are available to us all. They are gifts that too often get overlooked because we become consumed by a world of pressures, demands, and timelines. Too often it is easy to lose sight of what really matters in life.

From the moment a young life comes into the world we need to surround it with the gifts of unconditional love, patience, understanding, confirmation, guidance, and our time. These are gifts we can all offer our children everyday of the year. These are gifts whose value increases as a child grows older, and they are gifts that instill a strong sense of identity, purpose, and ability in our children. These are gifts that can transform the way people feel about themselves, relate to each other, and choose to deal with the world around them.

The most valuable gift we can give our children is the knowledge and understanding that the greatest characteristics of being human are the ability of redemption and reconciliation. Too often children feel that poor judgment or failure on their part is a reflection of their inability and lack of worth. When this occurs, and if our children do not understand the power of redemption and reconciliation, they may feel inept and incapable of success and happiness. This should never be the case. As human beings, time allows us the opportunity to redeem and reconcile the state of our lives. A knowledge and understanding of these two powerful characteristics is the gift of perpetual hope.

As you prepare for this holiday season, keep in mind the greatest gifts you can give your children now and throughout the year. We only pass this way once, and our true legacy is found in the gifts we give.

From me and my family, BEST WISHES for a BLESSED HOLIDAY SEASON and a HAPPY NEW YEAR!

Best regards,

~Bill

My Announcement Tour Schedule

Beginning this coming Wednesday, December 16, I will be touring the 4th District to make a formal announcement of my candidacy. My announcement tour involves thirteen stops throughout the district in a span of three days; the tour schedule is as follows:

Wednesday, December 16
-- 8:00 a.m., Waukee - Waukee Public Library (950 Warrior Lane)
-- 10:30 a.m., Fort Dodge - Democratic Party Headquarters (29 N. 12th St.)
-- 1:00 p.m., Estherville - Mother Nature's (1027 East Central Ave.)
-- 4:00 p.m., Algona - The Pizza Ranch (1325 Hwy 169 N.)

Thursday, December 17
-- 9:00 a.m., Mason City - Borealis (316 N Federal Ave.)
-- 12:00 noon, Decorah - Magpie Coffee Shop (118 Winnebago St.)
-- 1:30 p.m., Waukon - Gus and Tony's Pizza and Steakhouse (508 W Main St.)
-- 3:15 p.m., Postville - Postville Response Coalition (105 South Lawler)
-- 5:30 p.m., Charles City - Charles City Press Office (801 Riverside Dr.)

Friday, December 18
-- 10:00 a.m., Ames - Youth and Shelter Services Inc. (420 Kellogg Ave.)
-- 1:30 p.m., Indianola - Supervisors Board Room at the Administration Bldg. (301 N. Buxton)
-- 3:00 p.m., Winterset - North Side Cafe (61 Jefferson Street)
-- 6:00 p.m., Marshalltown - The Home of Bert & Carole Permar (106 College View Ln.)

I hope to see you somewhere along the way!

~ Bill

Positions and Viewpoints

THE UNITED STATES AND ASIA:
President Obama’s recent trip to Asia is an important step in maintaining and developing a positive and beneficial relationship with this part of the world.

China’s population of 1.3 billion people is four times greater than the population of the United States. This means China should be a fertile market for our products.

China holds $800 billion of the United States' debt. We need to find a remedy to this situation. The United States and China share a number of mutual interests, and a rebalancing of trade must be one of them. As the leading power in the world, the United States must act now to leverage influence that will reduce our debt, increase our trade, and strengthen our relationship.

While China has become intensely capitalistic and competitive, it remains a communist and autocratic system. The Chinese people continue to suffer human rights violations at the hands of the government. The Chinese Government must know and understand that the United States will not do business as normal with a government that ignores the basic human rights of people.

UNEMPLOYMENT:
There are currently 15 million people jobless in the United States. It is unacceptable for our government to sit back and wait for the economy to correct itself. The government must act now to create a New Deal of programs that will put millions of people back to work rebuilding our infrastructure as well as repairing and improving our national monuments and national parks.

There is more than enough work to do, let us put the jobless to work doing it. We will not only stimulate our economy from the bottom up, but we will restore vitality to our infrastructure and national treasures.

HEALTH CARE:
With 43 million people in the United States without health care, this issue must be successfully resolved. We need universal health care for everyone. The plan should not be that difficult. If you have health care now, and you like your provider and service, then you should be allowed to keep your plan. If you do not have health care, then we need to create a National Health Insurance Exchange which includes a public option. A National Health Insurance Exchange along with a public option will increase competition, offer more choice, and drive health care costs down. People who can not afford health care or full coverage need help. It is part of our obligation to each other as one nation to see that all citizens of our great country have access to quality health care. Our goal must be universal health care based on a wellness program that will improve the quality of life for all our people.

AFGHANISTAN:
Recently, President Obama committed 30,000 more troops to Afghanistan. I admire the President, but this is a bad idea. If President Kennedy were alive today, he would surely have advised the President to avoid being overly influenced by his military leaders. General McChrystal has wanted more troops for some time now. McChrystal has also said that the United States could be in Afghanistan until 2013 or longer. This is all unacceptable! We can and must protect our homeland without these military ventures that are so costly in the lives of our precious young soldiers, national treasures, and image as a global leader.

AGRICULTURE:
Our agrarian culture is the bedrock of our society. Yet today, modern equipment and technology have made farming a thing of the past unless you were fortunate enough to inherit the farm or you have become an employee of a corporate farm. We need an agricultural policy that supports and sustains our family farmers. We also need an agricultural policy that provides opportunity for young men and women to return to the farm.

We must halt the rise of corporate farms. We have seen all too clearly the destructive force of an unbridled corporate America. Our small towns and small businesses have all but vanished due to the impact of large corporations and big business. If we do not act now, farming will only occur as a feudal enterprise. This all has huge ramifications for our land, environment, and agrarian way of life.

We need an agricultural policy that provides a support system for new and emerging farmers. This support system must provide low interest loans for the purchase of land. This support system must provide a program for the cooping of equipment to work the land. This support system must encourage the establishment of small livestock herds. We must create a marketing safety net for a return on investment to assure food production and the success of new and emerging farmers. This is an investment in our small towns and rural way of life. An increase in young farmers will revitalize our small towns and small businesses so important to sustaining rural values and the agrarian way of life. We can and must do better!

~ Bill