The Federal Reserve has decided to delay a recession–a move that will make that recession longer and more severe. A proper correction would see Dow Jones Industrial Average slump to below 8500 points, but a series of rescues orchestrated by the Fed has kept the Dow hovering around 12,000 for a few weeks. Stocks today refuse to stay afloat without the Fed’s help. Now, any time the market is up, my first question is “what did the Fed do?” The answer on March 20, 2008: “Fed adds $24 bln in reserves through 7-day repos” – Reuters.
The collateral accepted for these repurchase agreements is, of course, mortgage-backed securities. The market’s problem, according to banks, is that the Federal Reserve, in accepting over $400 billion of worthless securities this month in exchange for “liquidity”, is not doing enough to make up for banks’ irresponsible lending and investing strategies. Any greater measure than what the Fed has already taken, however, would be similar to compiling all American consumer debt to a dollar amount, and then ordering the U.S. Bureau of Printing and Engraving to provide that amount of cash to banks. This preposterous proposition is perhaps a better option, because it is more efficient than the slow, deceptive version of itself the Fed is employing.
The truth behind the federal government’s rescues is that individual wage earners have been abandoned by their elected officials, so that corporate campaign-makers will not have to pay for their own mistakes. This is fascism in its truest state-through unified corporate control over citizens and government, the invisible dissent of the governed requires no response. As Mussolini said, “fascism should more appropriately be called corporatism, as it is the merger of corporate and government power.”
We see this merger in nearly every corner of American industry today. There is scarcely an established business in the country that doesn’t depend on federal preference to restrict the competitive market and maintain its slice of an ever-shrinking consumer pie. In exchange for competitive advantages and profitable contracts, established corporations (as well as other associations of concerned citizens) have financed thousands of campaigns and substituted their own agendas where the citizens’ belong, without the fear of losing power at the hands of an angry citizenry–because that citizenry remains ill-informed by the corporate media.
When we realize that over two-thirds of the nation opposes the Iraq war, when we hear the Vice President respond to that by saying “so what,” when we notice the media’s blackout of anti-war voices, when we see gasoline sellers moving in perfect unison, when we watch healthcare costs skyrocket, when we see a tax code no one comprehends, when we see laws passed that no one reads, when we understand that wealthy bankers are turning their losses over to the U.S. Treasury while inflation outpaces interest, when we come to grips with the lack of true representation in Washington, and hold before a mirror the true character of the current democratic republic, the reflection is clear and awful. We have become a mix between Nazi Germany and fascist Italy, only we suffer from a much more complete control over information, because nearly the whole nation depends on corporate television for political awareness, and nearly the whole nation nods its head at whatever the television says. All fascist democracies characteristically believe that theirs is the freest nation in the world. It is only after the dissolution of fascist control that the masses become aware of the evil under which they lived; the few who saw it all along were always sidelined as irrational or “anti.” If the people cannot be awakened from their current state, the end of American fascism will be catastrophic.