Thinking Outside the Borders

For better or worse, Congress is getting a makeover. As for the president's economic team, why can't Obama look beyond the usual suspects -- way beyond?

BY CHARLES FERGUSON | NOVEMBER 3, 2010

The day after the U.S. midterm elections, the Federal Reserve is yet again buying securities (it has bought more than $2 trillion of them since 2008), to keep down interest rates. U.S. interest rates have now been at historic lows for two years, a huge gift to the financial industry -- but one that has done little to help the broader economy. Not coincidentally, investment banking bonuses are at record levels, while unemployment remains above 9 percent (officially, that is:  the real rate is probably 15 percent), home foreclosures are at record levels, and there has still not been a single criminal prosecution -- not one -- for the reckless behavior that caused the financial crisis. 

It is blindingly clear that America needs different and better economic leaders -- preferably leaders not compromised by past errors and conflicts of interest. Yet the overwhelming majority of the Obama team, not to mention Wall Street and academia, is composed of people who were part of the problem, or at best remained silent. Well, I have a suggestion as to where excellent replacements can be found:  outside the United States.

Others already recognize that talent and honesty know no borders. Recently, I spent a week in London while my new documentary about the disastrous decisions and systemic corruption that caused the global financial crisis, Inside Job, premiered at the London Film Festival. During my stay, I met with Ruby Films, which is run by a very witty, accomplished man who had previously managed the funding of independent films at the UK Film Council.  All well and good; but now comes the interesting part: He's not British; he's Dutch.  But the UK Film Council had concluded that he was the best person for the job. 

The United States needs to learn this lesson, and in areas far more important than movies. It might be difficult for us to swallow our pride, but for some of the most important policy decisions facing the United States, the right people for the job might be foreigners.

This idea will doubtless meet resistance among U.S. academic and policy elites, in part because it is contrary to their own financial and career interests. But over the last several years, in the course of making two heavily-researched documentaries about the effect of American behavior on the world (the first about the occupation of Iraq, the second about the global financial crisis), I have come to realize that there has been a deep shift in how the world views America's economic, financial, and foreign policy elites. Washington's days as unquestioned role model for the world are over. 

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 SUBJECTS:
 

Charles Ferguson is the director of Inside Job, a documentary about the financial crisis currently in theaters nationwide. His previous film, No End In Sight, received an Academy Award nomination for best documentary in 2008.

CEOUNICOM

1:17 AM ET

November 4, 2010

Charles...

First off, I think you are a very good film-maker. I thought, "No End In Sight" was very well done.

That said, what should anyone care about your personal opinion as a somone who films opinions he hand-picks and advertises in the form of agitprop?

I mean, come on - where do you come off pretending to be an expert? You FILM experts. Or at least the ones you prefer. You're not anyone with any particular insight = you are good at capturing the few you find on camera, and telling a story using the techniques of a good documentary filmmaker. Are we supposed to confuse actual thinkers and their documentarians all of a sudden? Of course you should want a 'justice league' format for the american government, where we suddenly inject a cabal of the worlds best people for the task...but this is a utopian vision that could only possibly exist in the mind of a storyteller who remains outside the reality of the mechanics of politics and world affairs. Your point is?... there are smart people in the ROW? Surprise! (to no-one except those who are professional entertainers perhaps) Look... The situation is, we are stuck with our own homegrown policymakers, mainly because they have our own (and their own) interests in mind. We're not about to recruit a Yao Ming head of the Federal Reserve like the NBA, or a Russell Crowe Defense Sec just because they have 'the right ideas' (according to you).... National issues are dealt with by countries in complex ways that dont depend on "great leadership" necessarily - they need systems that are open to the changes that those Good Leaders (god how I hate that phrase) are willing to try out. Look at the failure of Michelle Rhee in DC - someone who was the best person to do what needed to be done, but failed because the system was not ready or able or willing to adapt to 'renovation'. Success is not about 'cult of personality' leadership. Its about the right conditions at the right time being available for someone of will to make effective change. You can't just stick some technocrat into a different system and suddenly make a difference. You don't believe me? Quit filmmaking, and try it yourself.

 

CEOUNICOM

1:34 AM ET

November 4, 2010

re:

I think part of my frustration here is knowing a dozen + people who were probably as good or better than the people you mention, but who all died early career-deaths because of their own determination to be non-'players'; i.e. people with the 'greater good' in mind, but failed because they failed to understand the systemic forces that required a certain amount of adaptability to the existing power structures. I'm not saying that a strong personality can't be an effective force for change, but rather that it is only a small part of what is needed to create results.

Again - see Rhree, and her eventual ouster, to better understand why real Mavericks die painful deaths in the face of long-entrenched interests.

 

JAYDEE001

1:53 PM ET

November 4, 2010

What a sham!

What QE2 actually has done has nothing to do with stimulating consumption or increasing employment. It is about preventing stock prices from falling; Bernanke has said as much. In other words, another lifeline to the investment class and the financiers, but nothing that will help mainstreet. Only 50% of Americans own stocks and most of that is through their retirement plans, which have already taken a beating. This is nothing but another handout to the criminals who helped to create the financial mess we are in. It is quite clear that the FED is openly manipulating the stock market. Where in its charter is that a part of the mission? This will have little to no benefit for the middle class. It's just another transfer payment from the middle class to the caviar eaters.

This is not likely to create any new jobs, but it will protect the bonuses of the money managers and the corporatists. It will certainly deflate the value of the dollar in the short term, but don't bet that it will give the US any trade advantage over other markets - the Chinese and the Euro central banks are just as adept at managing their currency values as Bernanke and his bretheren, and they may be more nimble.

Banks are keeping excess reserves with the Federal Reserve, thereby refusing to lend money to the general public. Was there any consideration given to shutting off all interest payments to banks on the excess reserves the FED is holding for them? Or better yet, charging the banks a storage fee for money deposited by them with the FED as excess reserves? Yeah that would be a shock, but it might also lead to some consideration of real solutions to the problems we face. Some foreign banks (Sweden for example) have already done it.

The only positive outcome of the current actions may be that, while it avoids a formal currency devaluation, the FED will allow the US to repay our foreign debt with lesser dollars. It will also penalize retirees by permanently freezing COLA for Social Security and other “entitlement” payments. Perhaps more significantly it may allow the banks and the FED to escape the Real Estate trap they created for themselves by giving every house a much higher price tag. That will not solve the problem of too many houses in foreclosure - and more to come - although the investment bankers and the FED can claim that the mortgage-backed securities on their balance sheets are actually worth something.

Where in any of its recent actions has the FED met its historical mandate to promote a high level of employment, as well as low, stable inflation? Right now, all we have from Chairman Bernanke is this pap:
"The Federal Reserve cannot solve all the economy’s problems on its own. That will take time and the combined efforts of many parties, including the central bank, Congress, the administration, regulators and the private sector."

Yeah, like all those guys are gonna solve the predicament! None of them have ever had to worry themselves about losing their jobs or their homes, or living on retirement savings that have been looted for the benefit of a few Wall Street bankers and AIG. And that is part of the problem.

 

IAN

12:14 PM ET

November 5, 2010

The government is run on money

provided them by their lobbyists and supporters. The average person can complain all they want, but a couple million from a certain bank or investment group and that average person will be quickly forgotten. Take, for example, recently in British Columbia. Despite neary 80% of people in the province sayin they didn't want it, the new HST (Homogonized Sales Tax) went into effect this year. How's that for Democracy in action???

The reason, the BC government recieved several billion from the Federal Government to institute the tax.

End sum, money, not people, make the rules. And in D.C., Wall Street runs the game. That's why Goldman Sachs kicks ass. Take the big taxpayers paid "keep them afloat" plan, be the first one to come out from under "government scrutiny", and that quarter, make record breaking profits, the most they have ever made in a quarter, ever.

How can the average person compete with that kind of stuff? They can't.

Doesn't that just piss you off? See above for reason the government will never investigate any of this, no matter how loud the silent majority might finall work itself up to.

 

MOFFAKA

9:03 AM ET

November 22, 2010

.

It will certainly deflate the value of the dollar in the short term, but don't bet that it will give the US any trade advantage over other markets - the Chinese and the Euro central banks are just as adept at managing their currency values as Bernanke and his bretheren, and they may be more nimble.basur

 

JAYDEE001

4:13 PM ET

November 5, 2010

You've said it all right here

"U.S. interest rates have now been at historic lows for two years, a huge gift to the financial industry -- but one that has done little to help the broader economy. Not coincidentally, investment banking bonuses are at record levels, while unemployment remains above 9 percent (officially, that is: the real rate is probably 15 percent), home foreclosures are at record levels, and there has still not been a single criminal prosecution -- not one -- for the reckless behavior that caused the financial crisis."

That's the whole deal in a nutshell. Wall Street gets its very own brand of socialism, the politicians get lobbyists dough, the so-called financial regulators get to stay cozy with the people they are most comfortable with. The banks, the auto companies and the insurance companies get bailouts. The rest of us? Our retirement plans devastated, salaries and wages frozen, for the truly unfortunate unemployment and months or years of futile job hunting, health care that costs more out of pocket every year (if we have it at all), jobs outsourced to Asia, housing values depressed, education costs that price the children of middle class families out of the education marketplace, and we get to pay for all of it - credit cards accepted. On top of that, we live under the growing burden of a deficit incurred to fight two wars against an enemy we cannot even locate. At the end of the trail, we will be rewarded with higher inflation, high energy costs, and cutbacks in social programs that benefit those who have done nothing to merit such poor treatment.

 

JAYDEE001

4:13 PM ET

November 5, 2010

You've said it all right here

"U.S. interest rates have now been at historic lows for two years, a huge gift to the financial industry -- but one that has done little to help the broader economy. Not coincidentally, investment banking bonuses are at record levels, while unemployment remains above 9 percent (officially, that is: the real rate is probably 15 percent), home foreclosures are at record levels, and there has still not been a single criminal prosecution -- not one -- for the reckless behavior that caused the financial crisis."

That's the whole deal in a nutshell. Wall Street gets its very own brand of socialism, the politicians get lobbyists dough, the so-called financial regulators get to stay cozy with the people they are most comfortable with. The banks, the auto companies and the insurance companies get bailouts. The rest of us? Our retirement plans devastated, salaries and wages frozen, for the truly unfortunate unemployment and months or years of futile job hunting, health care that costs more out of pocket every year (if we have it at all), jobs outsourced to Asia, housing values depressed, education costs that price the children of middle class families out of the education marketplace, and we get to pay for all of it - credit cards accepted. On top of that, we live under the growing burden of a deficit incurred to fight two wars against an enemy we cannot even locate. At the end of the trail, we will be rewarded with higher inflation, high energy costs, and cutbacks in social programs that benefit those who have done nothing to merit such poor treatment.

 

DR. SARDONICUS

5:30 PM ET

November 5, 2010

Obama on the defensive

President Obama has spent most of his life as an outsider looking in. That has been his usual role and that is what he is very good at.

He was unqualified to assume the Rooseveltian role the American People had sought for him: striding in, dictating reality from a position of dominance and bullying anyone he couldn't cajole. Had he done so, he would probably have had as much success as Roosevelt enjoyed, and the Republicans would now be looking at another two generation stretch of well-earned political limbo.

He may be hyper-qualified for his present role: cornered by a successful political backlash, seeking compromise among uncompromising elites and special interests in overwhelming strength, and cajoling people, otherwise inclined, to seek the common good.

Having disappointed everyone except perhaps himself, in the recent past, he may now surprise us all by maneuvering his current predicament much more confidently and successfully than anyone could have predicted.

 

GOEDEL

4:58 PM ET

November 8, 2010

Don't you mean hypo- ?

Sir: Your "hyper-qualified" description of Barack Obama reminds me of another meteoric rise, that of Chauncey Gardiner. You surely remember Peter Seller's personification of the character in an uproariously funny film: an improbably sequence places Chauncey, a gardiner, at the focus of attention and power after the simple fellow impresses his distinguished host and hostess as a political philosopher on a par with Plato but easier to understand.

Barack's garden was Chicago politics, and - except for his incompetence as POTUS - he bears no characteristics of Chauncey: humility, integrity, good nature. Rather the similarities are between the elite promoters of Chauncey and Barack's base in his election of 2008 for the White House. Fools all!

Where Chauncey was humble, Barack is a pathological narcissist; where Chauncey tried to truthful to his celebrants, Barack lied repeatedly to his supporters and now lies to the American people; where Chauncey was good-natured, Obama is a war criminal, a killer of civilians in needless wars. Hardly identical twins, Chauncey and Barack!

The only similiarity is their profound incompetence. Chauncey and Barack have none of the education necessary for leading our country. Worse yet, Barack has been miseducated at some of the most prestigious schools of our country (Columba, Harvard, U of Chi.) He seems to know nothing of international relations or the laws of our country, especially the Constitution that he defiles.

Had I to choose between Chauncey Gardiner and Barack Obama, I should certainly choose Chauncey Gardiner for POTUS. Chauncey is a good person.

 

KRISHNA-KIRTI

7:55 PM ET

November 5, 2010

Borders matter because of what goes on inside of them.

On page 1 of the article: "Others already recognize that talent and honesty know no borders. "

American economists should be worrying more about why talented, honest people in the economic sector are lacking within America's borders. How come the American system isn't producing enough of them? That's the question American public policy makers should be asking.

 

JOE RYAN

2:14 PM ET

November 6, 2010

Why go offshore. Just stop hiring from Harvard

Yeah, in my nation, now that bluebloods East Coast elites and their millions of minions have destroyed everything and stolen every nickle not cemented to the Earth, we need to go offshore to find someone who 1) Has any brains, 2) is brave enough to do the right thing. Apparently the author believes that the rest of the people in The United States are dumbass trailer trash with no brains or bravery.

Only 1/1000 of the 1% of the people have been making all the decisions for the past 30 years. 9 out of 10 is from an brainwashing Ivy league college or the University of Chicago. All that comes from those schools is entitled, smug, arrogant, brainwashed scum. The other 99% of us who are never heard from, or allowed to make any decisions whatsoever, are the people who created half the useful stuff that was invented in the last 50 years, and we didn't do so bad in WWII; But now we are just trailer trash crap, that should be bypassed for 'smart' foreigners, now that the losers-elites, who no nothing about anything, but who think they know it all, have ruined free enterprise while they funneled money in order that they could line their syndicate-partner associate's pockets at an obscene rate.

They aren't economic advisers, they are part of a multi-national racketeering organization that runs the governments of the EU, the US, etc. for the benefit of the organization's members. Just before the market began its recent runup (from 1000 range for the market), Summers and a bunch of other insiders went on lots of major shows and all but declared that it was time to exit the markets. Surely he knew what the fed was going to keep interests rates low and print extra money, when he made those dire predictions. The market has gone up 15% since. What a coincidence. Soros told everybody not to buy gold at 1150 or so, a few weeks ago. Wonder how much he bought that week. How stupid do they think we are. Plenty apparently.

Let the other 99% in charge in America, and we'll fix the problem in a way that ensures it will never happen again for a long time. I guess that's why you have to bypass us. Bottom line, be realistic when making proposals in articles like this. We would f anyone up who dared to even think about taking globalization to that level. Go ahead, put a Chinese guy in charge of the Treasury (ie the IRS). Like we would continue to pay our taxes at that point, and not just shove your loans down your throat by ourselves without the aid or permission of the east coast elites.

The bankers of the world think they own America. Come try and get it when we stiff em. You lent money to the elites of organized crimes so they could subjugate us with a housing bubble. The gigs up in 2011-12. We own America. We already built and earned it, and so the bankers will be taking a hike. 2nd amendment baby in every home you want back, and your NWO army isn't strong enough yet, to get anywhere against the well armed veteran homeowners of the US. Once we decide to not pay our mortgages anymore, good luck with stopping us or prying us out of OUR homes. Then the whole globalization deal ends in bloodshed and other crazy shit, like anthrax type attacks on the populace, by upset billionaires.

I predicted the Fannie Mae bailouts while friends of the same elites sitting around Obama were still touting the stock (March 2008). And I live in a trailer park, where I snort meth, have sex with my deceased aunt, and drinking moonshine all day. Take any janitor, barmaid, taxi-driver, or garbage hauler, and stick them in the white house as economic advisers in 2008, instead of the racketeers surrounding Obama, and we would be better off.

In Summary, Let's try employing someone who is not part of the racketeering organization, before going offshore.

 

GOEDEL

9:32 PM ET

November 6, 2010

Mr Ferguson has omitted . . .

Mr Ferguson has omitted signifcant achievers in the world of economics, including Nobel Laureates: Joseph Stiglitz, for example. One does not have to go to Europe to find Paul Krugman. Paul Volker is as American as apple pie. George Soros has a bit of an accent, but that does not impair his thinking or communication.

The Europeans need all the good advisers they can find. They have been victims of their ECB neo-cons and need replacements for them.

The person who in our country ought principally be replaced is Barack Obama. He chose the advisers who have brought us down, mentored byf Robert Rubin and Alan Greenspan. He, Pres. Obama, has proved himself an ever worse president than George W. Bush, who policies he has adopted and expanded. I never thought that presidents who succeeded Richard M. Nixon would be successively worse, but they have been worse one after the other - with perhaps one or two out of their places in the descent. Obama at the end is absolutely the worst, hands down! A desecrater of the Constitution; a war-monger; suborner of torture; destroyer of the Treasury; liar par excellence; the list is too long!

 

CANKATX2

9:02 PM ET

November 14, 2010

Borders matter because of what goes

The other 99% of us who klip izle are never heard from, or allowed to gazeteler make any decisions whatsoever, are the people who created half the useful stuff that was filmcin invented in the last 50 years, and we didn't do tatil so bad in WWII