Just when I thought I've seen it all, I see the story about how Obama wants the Fed to be the Economy's SUPERCOP!!! Super Cop Ben. Don't get me wrong, I thought it was great when the Banking lobbyists got rid of the Glass-Steagall Act allowing the banks to weave their way into every aspect of my life. I cheered when the banks lobbied to be able to leverage up from 10-1 to 30 or 40-1 on their loans to capital. We partied hard when they began packaging mortgages and were able to shuffle them out of their system so that they can continue to make bigger and bigger profits, much of it going into the pockets of a chosen few.
Stress Test Relief I'm overjoyed now as I read a Wall Street Journal article Banks Win Concessions, showing again that Banks are still in total control - always were - always will be.
Seeing Tim Geitner, a former Federal Reserve Bank President now a federal regulator reminds me of the days when I worked at the Commodity Futures Trading Commission (CFTC). I most fondly remember how the CFTC Chairwoman, Wendy Graham, had the opportunity to regulate energy futures contracts, the kind that Enron was involved with. How surprising it was that after she declined to regulate these instruments, she wound up on Enron's Board of Directors. Funny how no one ever reviewed this connection, at least not that I've ever seen. And now, we have an ex-Federal Reserve banker in cahoots with his Fed buddy Ben Bernanke saving the world by giving the banks billions and billions of taxpayer dollars. And now, on top of giving the banks all of our money, our elected leader wants to give control over banks and investment houses to the Federal Reserve!
Fed a Privately Held Business
For those who don't know, the Fed is not a government organization. And while there is a lot we do know about the Fed, there is a lot more that we don't know about the Fed. Like who really owns the Fed? Who profits from all of the dollar bills the Fed puts in circulation at a cost? It's not us taxpayers. It's the richest of the rich who hide in the shadows. It is the richest of the rich who have for decades called the shots in our country. It is the richest of the rich who now are pulling all of the strings to give them ultimate power over all businesses in the US.
One Man's Battle
There is a 'cry in the wilderness' though, the voice of Congressman Ron Paul. You might remember Ron Paul as a candidate in the recent presidential elections. While he was not a major candidate, those who followed him were passionate about his cause. Out of all of the candidates from both major parties, it appeared that only Ron Paul understood and defended the US Constitution. Others in power have been making a mockery of it as our civil liberties continue to be eroded.
Representative Paul outlays the plan to enable the Comptroller General of the GAO (Government Accountability Office) to audit the Federal Reserve system before the end of 2010. Per the Federal Reserve, "Monetary policy is exempt from audit by the Government Accountability Office."
Back Where We Started From
Seems to me that we the government is again trying to pass the buck. It's obvious that self regulation has not been working. Even Former Federal Reserve Chairmain Alan Greenspan said that he never ever thought that banks would not act in the best interest of the shareholders. I think that Jim Rogers got it right by moving to Singapore and focusing on the Asian markets. China is getting wise to the game here. When will we?