I think CR got it right – there’s a new class of Americans that’s been on the rise, and that is the American Debtowner. Not to be confused with the people who own the other side of that debt (a large part non-Americans anyway). And, in a very real sense, they and those who own their debt have transformed America itself into a debtor nation. We the people are on the hook for a staggering near-24 trillion dollars in potential losses if the TARP and other debt guarantees our Government has given out pan out in a bad way. And that’s not inclusive of the 11 trillion or so (Which, at least in part, is actually held by Americans in the form of treasuries so at least we don’t have to worry too much about that.) in actual US Government debt we own.
“Own.” Yeah. Only, in reality, it’s the other way around. That debt owns you. To the extent it may actually pwn our empire one day soon. (If you disagree with the empire comment, look up how many countries we’ve invaded or destabilized via assassination or coup in the past 100 years or so.)
So all financial institutions around the world are saying that things are going to get worse. The only ones who aren’t are the Central Banks. They control our economies, but a lot of Senators think the government shouldn’t have any say in how they control our economies. To wit, a form letter I got from Senator Feinstein, whom I just can’t seem to vote out of office:
While I recognize the importance of accountability in the operations of the Federal Reserve, I strongly believe that monetary decisions should be made independent of political influence or motives. You may be interested to learn that I supported an amendment to the Congressional Budget Resolution (S. Con. Res. 13) offered by Senator Sanders requiring the Federal Reserve to disclose how it has disbursed emergency economic assistance to financial institutions during this severe economic crisis. Be assured that I am carefully monitoring the actions taken by the Federal Reserve to help stimulate our economy and unfreeze credit for businesses and homeowners.
Why on earth would she just get finished telling me that she believed that monetary decisions should be made independent of ‘political’ influence (everyone forgets that the .Gov is supposed to be “We the people” not “We your lords and masters”) and then go on to tell me that she is carefully monitoring the actions taking by the Fed. Why would she monitor their actions if she thinks they should be made free of political influence? If she thinks her nose doesn’t belong in the matter, what’s it doing there? Scrutiny produces change, one way or another.
Her whole canned response is after the cut:
Dear Mr. [REDACTED]:
Thank you for contacting me to express support for legislation to increase transparency at the Federal Reserve. I appreciate your interest in monetary policy and welcome the opportunity to respond.
The Federal Reserve was originally established in response to the country’s need for a sound and independent central bank to manage decisions relating to U.S. monetary policy. I understand your concern with some of the unprecedented steps that the Federal Reserve has taken recently to ease the flow of credit and stabilize financial markets.
On March 16, 2009, Senator Bernard Sanders (I-VT) introduced the “Federal Reserve Sunshine Act of 2009″ (S. 604), which would require the U.S. Comptroller General to audit the Federal Reserve System before the end of 2010. This bill has been referred to the Senate Banking, Housing, and Urban Affairs Committee. Representative Ron Paul (R-TX) has introduced a similar bill (H.R. 1207) in the House of Representatives. Please know that I will keep your support for this legislation in mind should it come before the full Senate.
While I recognize the importance of accountability in the operations of the Federal Reserve, I strongly believe that monetary decisions should be made independent of political influence or motives. You may be interested to learn that I supported an amendment to the Congressional Budget Resolution (S. Con. Res. 13) offered by Senator Sanders requiring the Federal Reserve to disclose how it has disbursed emergency economic assistance to financial institutions during this severe economic crisis. Be assured that I am carefully monitoring the actions taken by the Federal Reserve to help stimulate our economy and unfreeze credit for businesses and homeowners.
Once again, thank you for writing. I hope that you will continue to share your views with me. If I can be of any further assistance, please contact my Washington, D.C. office at (202) 224-3841. Best regards.
Sincerely yours,
Dianne Feinstein
United States Senator
Tags: celebrate good obama c'mon!, depression 2.0, failout, no really we're really fucking fucked this time