[We do not have a democracy if our economics is not democratically controlled. The Federal Reserve runs our economy and it is not answerable to our elected representatives, only to the private bankers. Here's a solution. -DS]
A reassuring new story line is emanating from our leaders. I heard Representative Barney Frank, chair of the House Banking Committee, explain it. Then I read the same line in a Washington Post news story. That tells me people in high places are selling it. Dynamic capitalism, they explain, invents ways to create greater wealth, but sometimes it goes a little too far. Then government has to step in to correct things. This need typically occurs every generation or so, all in a day’s work. The Obama administration is proposing “sweeping” new regulatory laws so that capitalism can continue its good works.
The story makes disturbing current events sound practically normal. But what are the storytellers leaving out? They aren’t saying that this financial catastrophe was not merely an inevitable development of history but a man-made disaster. Greedheads on Wall Street did their part, but so did Washington. The reason we need new rules is that a generation of Democrats and Republicans systematically repealed or gutted the old ones–the regulatory controls enacted eighty years ago to remedy the last breakdown of capitalism (better known as the Great Depression).
The White House executed a nifty two-step this week to re-educate the public and deflect anger. On Tuesday Treasury Secretary Timothy Geithner relaunched the massive bailout of banking and finance. Knowing how unpopular this is with the people at large, Geithner followed on Thursday with his “sweeping” plans to re-regulate the bankers and financiers. Whenever official plans are called “sweeping,” it indicates that they really, really mean it this time.
Most Americans are not financial experts. It’s very difficult, nearly impossible, for normal mortals to sort through the dense policy talk and conflicting opinions to figure out if the rhetoric of reform is real. Confusion is widespread in the land. Most Americans want to believe this president is leading us out of the swamp, but how can they know? I say, trust your gut feelings. They are as reliable as the learned experts.
Keep reading Trust Your Guts at Common Ground via The Nation→