Follow my thought process. There has been a lot said about the Federal Reserve Bank, The Fed for short, and their policies in controlling our currency, interest rates and credit have pushed the Tea Party to want to dissolve it, but they don't have a plan of what they would replace it with. The Fed was created in 1913 in response to prior economic panics. It was designed as an independent entity with a governing board appointed by the president and its operation has oversight by Congress.
The Fed authority and power has expanded dramatically since its inception, as it now controls the entire banking system of the country. It is unique in the world. The problem is that Administrations for the the past 30 years have been appointing board members from major banking institutions, particular from Goldman Sachs and AIG. With this close relationship, corruption and abuse can easily occur, plus most members of Congress charged with oversight are ignorant of the complexities of the Fed and our monetary system.
It is reported that when Goldman Sachs and AIG created what we know as mortgage backed derivatives, hedge funds and security swap insurance they had to have Congress add a law to an appropriations bill that granted them exemption from the federal and state anti gambling laws. The product was so toxic and risky that it fell within the definition of risky gambling beyond the normal risks of financial investment. The setup was designed so that they made huge profits on these risky derivatives whether they made money or lost money, plus they knew because of inside help that the Treasury Department would bail them out, except for Lehman Brothers.
Individuals in the upper management of the "Too Big To Fail" banks and hedge fund manager made billions off the collapse of our economy and they are setting the system up again for another major drop, so they can further gain more wealth -- billions and billions of dollars they have already gained is not enough. That is why they are fighting so hard to extend the Bush tax rates and hopefully gain additional tax reductions in the very near future. They also want to reverse the new financial regulations the Democrats passed because the make these types of manipulations open to scrutiny by the unsuspecting investor.
The entire system is now designed to rob the wealth of the middle class through bad mortgages, mismanaged mutual funds and 401(k) funds. That is why you did not see the suicides during this collapse like we saw in 1929. Too many individuals made very good profit from the collapse.
Greed is rampant and there is the theory among these few milking the system that since the economy is really on a global level, putting America into a second world class is actually better for them from a total wealth accumulation perspective.
There is no interest on their part to create new jobs within the country. They prefer to create jobs in the least expensive country that they can manufacture in, such as China and India, etc. They also fear that if the middle class reconstituted and became employed, they would want to organize into labor unions to receive a fair wage and share in the wealth of the company they work for. That would dilute the wealth this small group of people can accumulate. There is no social responsibility in their souls.
I say this because, why would these special interest entities spend the hundreds of millions of dollars financing the political campaigns of the Republican Party. They don't do it out of patriotism, they want a return on their investment. That means Congress must create laws and policies that favor them and allow them to peruse their objective of accumulating as much wealth as they can. There is no other explanation.
With such large money behind them, the Republicans are very embolden to snub their nose to the common person and pass legislation that place greater economic burden on the middle and lower class population to the benefit of the very wealthy. Especially since these politician end up being very wealthy as well, usually post office holding by becoming consultants and board members of the corporations that padded their wallets.
America is becoming more corrupted every year, in both parties. The Blue Dog Democrats are no different than the Republicans who prostitute themselves to corporations and special interest groups with money. And yes other Democrats have sold their souls for money and to remain in power.
The next two years will prove me wrong or right. Watch carefully what the Republicans and Blue Dog Demos pass in legislation.
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