According to a recent news article, the state, at the behest of its corporate clients, is ramping up to provide more solutions:
A group representing large financial institutions urged the U.S. Congress on Friday to give the Federal Reserve new powers to ensure stability of the country’s financial system.
These powers would override all regulators and apply to all types of financial firms and markets.
Of course, the ‘large financial institutions’ operating within our corporatist state would like to give the Federal Reserve ‘new powers’ to ensure ‘stability’. These powers, naturally, would ‘override’ all of the existing powers and apply broadly to what’s left of our financial markets. The end result will be that even those well-run firms outside the current maelstrom will soon become wards of the state.
Now, corporations want to grant even more power to the Federal Reserve – the same Federal Reserve that has brought you fiat currency, fractional reserve lending and the greatest period of sustained debt and inflation in the history of our republic.
The House Financial Services Committee, chaired by Rep. Barney Frank, is expected to soon start considering proposals to overhaul the financial regulation system.
The proposal from the roundtable, which represents firms such as Bank of America (BAC.N)) and Allstate Corp (ALL.N), is one of many plans that are being floated.
Well, naturally. Who else is better equipped to chair a committee charged with designing the regulatory paradigms of the future than Barney Frank. Representative Frank, who answers to a very small minority of Massachusetts constituents, and who will not respond to those outside his direct constituency, chairs one of the most important committees in our government today.
We seem to have a great number of such ‘roundtables’. In our corporatist system of government, popular opposition to TARP can run over 100:1, yet it can pass the houses of our ‘representatives’ handily and hastily. If we send in a letter or an email, we get a canned response. If Ken Lewis needs to speak to a Senator, he gets an appointment for lunch. And such is the state of our republic that we continuously vote these elitists in, term after term.
The five main regulators would be overseen by one financial markets coordinating council, under the Roundtable’s plan.
Perhaps it’s just me, but ‘coordinating councils’ give me great cause for concern. In the words of one of our illustrious former overlords, “Make no mistake…,” this is the greatest power grab in the history of our republic, and perhaps the most stealthy power grab in the history of the modern state. Everywhere one turns, the state is taking power over the private citizen. The only question remains: To what end?