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Yet the interests of the wealthy and powerful are hardly confined to Europe. When the Federal Reserve was forced to open its books late last year and show where over $3 trillion in asset relief funds were distributed, it was revealed that foreign banks received billions in aid and that “Deutsche Bank and Credit Suisse were the largest beneficiaries of the Fed’s purchase of mortgage-backed securities,” with $290 billion and $287 billion of their toxic loans, respectively, purchased by Ben Bernanke and crew. The Fed has also engaged in quantitative easing, which Larry Kudlow explains “has produced inflation” and more to the point, “has served merely to depreciate the dollar. And most of those cheaper dollars are on deposit at the Federal Reserve, where banks are earning 25 basis points for safety and risk aversion.” All of it protects the interests of the elite.
What did the American public get? They’ve gotten higher prices on everything, most notably food and gas, neither of which are counted when inflation is measured. They’ve gotten 9.1 percent unemployment. They’ve gotten Federal Reserve Chairman Ben Bernanke in a press conference following Wednesday’s Federal Open Market Committee meeting admitting he had “no precise read” on why the American economy remains in the doldrums almost two years into an ostensible recovery. And they’ve gotten President Barack Obama, who has yet to sit in on a single meeting of critical budget negotiations in the United States — which broke down on Thursday — promising to support Greece in the fight against its debt crisis.
Does Scruton’s description of the EU’s “imperial government” resonate in America? Not in the same manner as it does in Europe, but an increasing number of “little” Americans are beginning to recognize a similar chasm between an out-of-touch, elitist ruling class in Washington, D.C. and themselves. There is little question our country has also been moving towards “centralization” and “top-down” control in response to our own financial crisis, which was “too good to waste” as far as the Obama administration was concerned. Despite euphemistic language designed to obscure reality, banks, car companies and insurance companies have been bailed out using taxpayer funds, which we were told was absolutely necessary to avoid a second Great Depression.
Furthermore, the usurpation of states’ rights is proceeding apace with two of the most egregious examples being the enactment of ObamaCare, which forces individuals to buy health insurance, or face a fine using the Commerce Clause as the vehicle of enforcement; and the NLRB’s lawsuit against Boeing which, if successful, would give Washington, D.C. the power to pick “winning” and “losing” states with respect to the location of economic activity.
And much like in Europe, there is a similar blow-back to elitist ambitions. Twenty-six state attorneys general have banded together in a lawsuit to get the health-care bill overturned. Some states are enacting illegal immigration control statutes, while others are writing bills challenging the Transportation Security Administration’s intrusive airport pat-down policies. All of these actions share a common theme: the defiance of the ruling-class, command-and-control policies.
In Europe, the opinions regarding solutions to the current debt crisis reveal very little in the way of consensus. For every economist who concludes Greece must be bailed out in order to avoid a cataclysm, there is another one who insists that it is better to let them abandon the EU, re-introduce the drachma, and live with the consequences. For every expert who insists the European Union will survive, there is one who contends it is in its death throes. In America, for every economist who insists $3 trillion of Keynesian economic stimulus has been a failure, there is one who insists that that’s because $3 trillion of stimulus wasn’t big enough.
Who’s right? Time will tell. Late Thursday, it was announced a deal had been reached in which Greece “won the consent” of a team of IMF/EU inspectors for their latest austerity plan. The Greek parliament has until July 3rd to enact it. In America, talks on raising the debt ceiling are in limbo. On both sides of the Atlantic, ordinary people are subject to the whims and timetables of the elite.
The only certainty? Elitist politicians, bankers and economists, for whom the phrase “unexpected results” has become an integral part of their economic vocabulary, will never directly bear the brunt of the economic “solutions” they concoct, all of which address problems largely of their own making. In the end, only the “little people” will be subjected to austerity or insolvency. Little people stuck with their quaint notions of fiscal integrity, national sovereignty, and/or states’ rights.
Arnold Ahlert is a contributing columnist to the conservative website JewishWorldReview.com.
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