Confessions Of A Nipissing Banker After the end of World War II, another group of American bankers had sprung up. Why would it take the government two years to collect, pay, and keep accounts? It certainly would provide them, not just for making financial returns but also to supplement the huge profits that took place shortly before. But they also could give them something new in return. After WWII, the American banking system, unlike other industrial economies, could send money out to investors who couldn’t meet a promise: it could sell a stock. Eventually, as long as it was open and cheap, everyone in the banking system could get rich.
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The plan was mostly worked out once the banking system was developed more widely and more fully. By the late 1970s and ’80s, banks had expanded in size and status to expand their operations in the areas of business, finance, and research. Within that space, a new money economy took shape. It started with an increasingly sophisticated bank store with elaborate “walls” that carried cash, records, insurance, brokerage cars, cash in wire cars, bank accounts, and other documents associated with investments in various bank enterprises. The walled building at the Kennedy Center seemed like a natural progression for large banks, which had tried to catch up with it if at all possible.
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By mid 1979, the Federal Reserve began pulling out of the Bank of England for “unfavorable reasons,” something bank executives and others described as “unimaginable.” Other banks began taking note, suggesting that the U.S. central bank should step in and help advance the bank culture. But there were some consequences.
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The banks and their affiliates began to get what they wanted by collecting, on a financial-advisory-services basis, government “debt” and “interest” checks. In part for reasons that are known only to financial analysts, the banks used these checks to pay for goods and services. They also diverted federal funds to purchase whatever Treasury bonds they agreed to carry. How that money began to be money quickly became critical. In 1988, when former congressional candidates John McCain and Ron Paul (who had been criticizing credit-reporting agencies while being backed by the Bush family) called for a move away from banks, White House officials gave them a hard time.
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“To borrow, you owe it to yourself if you don’t repay the government,” Harry Truman said later. In 1993, President George Herbert Walker Bush—in an ironic turn of events, Barack Obama’s wife, Grace—said the same, and with considerable fury. The debt “can no longer be financed,” she explained. “Americans have lost our last generation important site the United States of America’s natural self-confidence and confidence in the U.S.
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national debt, and we need a change now.” At that time, the Wall Street giant Goldman Sachs was among the largest and most powerful worldwide corporations, having nearly $1 trillion in assets abroad. One of the ways in which this money and other finance has played out at the center of American political and economic life is through politicians and media outlets. Among Democratic politicians and media outlets, the Wall Street bankers were notably prominent. Following the ouster of Lincoln Hayes, William Morris, Joseph McCarthy and Richard Nixon, a Wall Street group was formed, the “Independent Leadership Coalition.
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” In a report published in 1977, it singled out Hayes as a “critical figure in the efforts to reconquer and re-establish the working class.” A
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