March 29, 2008 (LPAC)--If you had any doubts that Treasury Sec. Henry Paulson is completely incompetent, take a look at proposals he will announce on Monday, March 31, to deal with the global financial crisis. Paulson's plan is right out of the bankers' playbook: giving the Federal Reserve more power to protect and bail out the bankrupt financial system, granting elements of the financial institutions greater "self-regulatory" powers, restricting the power of state governments to intervene to protect their citizens from financial abuses, and other measures, all in the name of streamlining and "modernizing" the regulatory apparatus.

The whole premise is a lie. The problem is not an outmoded regulatory apparatus, but a bankrupt financial system based upon outmoded imperial fantasies. Paulson claims that the problem with the regulatory apparatus is that it is based upon laws passed in the 1930s, but it is precisely the repealing, de-fanging and outright ignoring of those reforms passed by FDR in response to the banking crisis of that era, that permitted the current crisis to develop. Rather than destroy the remnants of those protections, we should abandon deregulation and return to the sound banking policies imposed by FDR.

The real solution here is to bring the banking system back under the Constitution, ending the delusion of the bankers that saving themselves is more important than protecting the people. Pass LaRouche's HBPA, and put the banking system through bankruptcy. Putting the general welfare of the people first, above the demands of the parasites, now there's a modern idea.