The Road Taken To Serfdom

Two movements converged this morning. In June,2005, I defined fascism in What is Fascism? I wrote,

In its general sense, fascism (small “f”) means state control over the individual and the economy using regimentation and regulation. While similar to state socialism in its authoritarianism, fascism prefers state control over ostensibly private property rather than nationalization.

In The Oregonian, first Matt Welch, editor in chief of Reason magazine, wrote a column titled The myth of a maverick. In the article, Welch writes, “…in both legislation and rhetoric, Mr. McCain has consistently sought to restrict the very freedoms he once exercised, in the common national enterprise of “serving a cause greater than self-interest.”

“We are fast becoming a nation of alienating individualists, unwilling to put the unifying values of patriotism ahead of our narrow self-interests,” Mr. McCain warned in a speech during his 2000 presidential campaign.

In the second, Reuters tells us, “the U.S. Treasury Department will propose on Monday that the Federal Reserve be given sweeping new powers that would make it chief regulator with authority to require actions to ensure market stability.”

I have railed against the FED often, writing that since 1913 when the FED was created, financial crises have not been avoided, one of the reasons the FED was created, instead we’ve had a depression, inflation, resulting in a 95% fall in the currency, and skyrocketing debt. Now we want to give the FED sweeping new powers to deal with the mortgage crisis which is a result of the FED’s policies.

The sweeping new powers include:

  • fix “regulatory gaps and redundancies”
  • “market stability regulator” – GATA has argued for some time that the Plunge Protection Team (PPT) and the Working Group for Financial Markets interfere in our financial markets capping the price of Gold and preventing market corrections.
  • broad authority to require information from all participants in financial markets and a right to collaborate with other regulators in writing the rules that companies and institutions must follow. – This would mean that the FED could raid any finacial institution, hedge fund or private investment group for priviledged information
  • it should have some authority over the investment banks – not since the 1930s has this area been regulated.
  • an optional federal charter for insurance companies.


    The chairman of the House Financial Services Committee, Democratic Rep. Barney Frank, last week said Congress should seriously consider giving a federal agency the power to monitor all risk in the financial system and act when necessary, regardless of its corporate form.

    George Ure writes at UrbanSurvival.com the FED (a cartel of banks) seized control of the currency in 1913. “It’s about to seize Wall Street.”

    Oh, and in dabbling their toes in owning (as securities pledge against loans) CMO’s and such, the Fed may also have tipped its hat that it’s getting into real estate ownership.

    Ure argues that ‘market stability’ is really price fixing!

    The convergence I see is the sweeping FED powers combined with a malignant form of “patriotism” giving us a totalitarian country far removed from the Constitution and the Bill of Rights.

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