Judith Gayle | Political Waves
There are some things that define America’s soul. One is the notion, so eloquently expressed by Abraham Lincoln, that this Republic is “of, for and by the people.”
During the Bush years, we knew government was at odds with our individual, trickled-down good; now, we find that so much has transpired in favor of AmeriCo, there isn’t even a pretense of following Lincoln’s lead. The mythology favored by the conservatives is that private industry drives down costs and must be left alone to do so: the Ayn Rand-ian argument that Alan Greenspan was shocked — SHOCKED — to discover rested in the hands of those refusing to self-regulate.
This would be a good time to plug in an old favorite YouTube from earlier in this century: “Supply Side Jesus,” narrated by now-Senator, Al Franken.
As the administration attempts to moderate the egregious activity of the banksters and insurance industry, we’ve come nose to nose with the power of corruption and the stonewall of those who think lack of regulation is the American model. For instance, Obama recently proposed regulations suggested by Paul Volcker. As Huffy reported, Volcker is no radical. He’s a former Fed chairman from years back, but Volcker knows a scam when he sees one. The Volcker suggestions, along with an independent Consumer Protection Agency, are part of the greater reforms that are ruminating in Congress. Retiring Senator Chris Dodd is attempting to thrash out a deal in committee, but he’s meeting … and evidently capitulating to … the Party of No.
A new piece of this was announced recently. The “Too Big to Fail” banks with more than $100 billion of assets will be overseen by the US Federal Reserve. This is touted as a victory for the “central bank” — that’s the Fed, the private bank that has almighty power over the Almighty Buck in this nation. One more time, finance will regulate itself. Insiders will continue to promote supply-siders.
The focus of this post has to do with one of the remaining deals on the table, still undecided. The Consumer Financial Protection Agency needs to be in the hands of an independent regulator if the peoples needs are to be served. My hero, Elizabeth Warren, makes it clear that a bad bill is NOT better than no bill, at this point. Paul Krugman seconds the motion. Even rich guy and folk hero Warren Buffett decries the lack of oversight and regulation that is crippling recovery.
Warren and Dodd are on the same page regarding the necessities: a presidentially-appointed director, confirmed by the Senate; a separate funding source; rule-making and enforcement authority. The problem is the umbrella under which this Agency looks destined to reside. The bipartisan agreement that’s being negotiated will install the CFPA under the Fed’s wing, where it will be seriously compromised.
Warren declares this as unacceptable, and when straight-talking Rep. Barney Frank heard the rumors, he had this to say: “I thought that was a joke. Even by Senate standards, that’s mind-boggling.” Then he added a critique that should make everyone’s hair stand on end: “The Federal Reserve is undemocratic, it’s non-transparent, it’s elitist, it’s arrogant.”
The Federal Reserve itself is coming under further scrutiny — decades too late, in my opinion — and that should be a priority for reporters everywhere; but it isn’t. One of the few economists I trust, Nobel laureate Joseph Stiglitz, argues that the Fed has become systemically corrupt. Warren knows that, even Dodd knows that. But unless WE know it — and ask the appropriate questions, nail the politicians that keep the lid on all these bubbling pots — nothing will change. This is Wall Street double-speak that Main Street needs to develop an ear for … or pay a price even higher than this current challenge that’s giving everyone fits.
All those who wail that they don’t trust government might be better served by understanding that the Fed has power that reaches into the lives of every citizen, rich and poor, bureaucrat and blue-collar worker, alike … and nobody but the Gods of Wall Street watch over them.
Jude
By the way, Doris “Granny D” Haddock died today, a fiery advocate for campaign finance reform even at 100 years old. Ten years ago, at age 90, she walked 3200 miles to draw national attention to the same kind of conversation we’re having here. Although she’s slowed in the last few years, she still gave an address from time to time and they all had that depth of heart and ring of common sense that encouraged me. I’ll miss her.
You can read about her here: http://www.commondreams.org/view/2010/03/10-11
… and from her, here: http://www.commondreams.org/view/2003/08/27
Hey guys — a little late on the upswing here, having computer fits in the Pea Patch.
According to Chomsky, those who wield the power in this nation are the private monopolies and conglomerates that make up the moneyed elite, the government as influenced by those concerns, the media and the PR industry. He doesn’t see them as conspiratorial or united, by the way, but rather squabbling amongst themselves trying to take their share of the kitty. That would be the powerful one or so percent — the rest of us are just grist for the mill, abstracts that serve the game. [The global power-mongers are a whole other topic.]
The powerful who run the country don’t exist in our … virtual … universe. They run on private capital and traded perks, although that is breaking down at this point with illusionary numbers representing cash flying like winged-monkeys. Government has been moved steadily right to serve corporate needs for more than thirty years. The Supreme Court is showing us how this elitism is reworking the rule of law. The demon is in the machinery, at this point. Wall Street arrogance is the result of this illusion and we’re seeing what happens when real treasure comes due, and they’re puzzled that we aren’t happily and quietly absorbing their speculation failures. They think its their money, not ours.
We need a trust-buster. Obama hasn’t been that guy, like FDR was when he was accused of selling out his own class. But FDR wasn’t that guy either until things went badly the first year or so. Perhaps Obama will become less the academic than the regulator, ultimately. That would at least be a good first step, and hard fought. And … if the demon is in the machinery … rest assured that the machine is breaking down now and will continue to for years to come. Evolution, unfortunately, takes time but the moment in which it sparks takes only a moment of full awareness.
At least, as we dig through the entrails of these issues, we no longer cooperate with them unthinkingly. We can choose our response. Being aware of how we use our own version of power is taking responsibility for self and community, and that’s the place where we can make all the difference. Still, as my fridge magnet tells me, “Some days the dragon wins” — but not EVERY day. And so it goes.
Why are we supplying “them” with resources, when we could be helping out each other? It’s so beyond me. I must be the stupidest mother fucker on the face of this planet. My shit makes no sense, nor does it initiate conversation regarding the fact that folk are retards.
(Kill me, hang me.. fuck it.. I deserve out. But I aint goin’ down without a row!)
Jeremy Nicholas Loscutoff
..Questions.. so.. wouldn’t self responsibility take the place of regulation? When is it that folks realize that EVERY, (was that too low?, I can shout), EVERY choice they make/face is of their own doing. So,.. when did Wallmart become the standard? When did you and I give our power away in such a puss-ass way? Oh! should we regulate our ignorance? Shall we rely on a bunch of FREAKIN’ IGNORAMOUSES to DICK-TATE our comings and goings…
We got a lot of conversation to be having.
(I’m not sure if the riverside’s wide enough!?!..)
We’ll see…
Jere
Jude,
I second Len’s comments and now, tell us, who ARE the politicians that keep the lid on these bubbling pots? What questions do we ask them in order to nail them?
be
Thank you, Jude. Some of us go for long periods of time in the shadow of the volcano, unaware of its presence. Living in a place where that is literally true provides a perspective on how important people like you are. Helping us to look up and focus and be aware of that big thing we take for granted, well, that is a great service.