(7:45am ET) Will we ever get to the bottom of the controversy that Ken Lewis stirred up with respect to behind the scenes management of the private sector by monetary authorities such as the US Federal Reserve Bank and the US Treasury Department?
Yesterday, there was some tough grilling of the Bank of America CEO, but at the end of the day all the public received in terms of advancement of our rights is a modicum of additional transparency. We can now say that some congressional representatives are prepared to subpoena emails between the Fed and the parties we are told they are supposed to be regulating.
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Is that enough? Are we ever going to get to the bottom of the real issues, the inherent conflicts of interest that go on when a private sector organization like the Fed is empowered as an instrument of public policy, or when the public's elected representatives are able to benefit from, and be therefore beholden to, vested interests?
At least improvements are being made. During the Camelot years under the Fed's Alan Greenspan management, the chairman was permitted to talk babble during sessions that were labeled testimony, and that era has clearly ended. There are tougher questions being asked now, and the public has become far more sophisticated in understanding the nuances in these televised political encounters.
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But at the end of the day, I don't think much progress is being made. The fact is that the Interventionists from the Fed and Treasury Department, backed by JP Morgan Chase and Goldman Sachs are very much in control of the capital markets; money flows are happening at the direction of behind-the-scenes insider network syndicates, like the Bilderberg group, for instance, who are tight with the Interventionists; regardless of the wishes of the people, legislation is still the product of lobbyists who represent more transparent, but organized syndicates nonetheless; and the public is growing more concerned they have lost control of their personal lives, subject to these "other" forces.
The Internet is a wonderful tool for learning and sharing; built on a many-to-many network model that utilizes a great number of centers of influence. But, when it comes to wealth and money flows, the public is still the exploited base at the bottom of the hierarchical one-to-many relational model that some call the food chain.
As we grow more sophisticated with the dealings of people like Ben Bernanke, Timothy Geithner, Henry Paulson, and Ken Lewis, we are starting to see with clarity the involvement in our lives of Big Brother and Humongous Bank & Broker, and we don't like it. Now we are being told that rising prices in the equity markets will patch up our differences; but we know it won't.