There is a movement by the libertarians to hijack the Occupy momentum, with Alex Jones apparently involved. The issue is getting rid of the Fed, but the effect, IMO, is to divert attention from the TBTF banks. Alex Jones, like the Tea Party/Libertarian movements, defends the corporations!
The argument that the Fed is an international cartel that does not answer to the American citizen is a valid libertarian argument. But when you see Jones involved in this diversion off of the TBTF banks, you are seeing guys who believe that the invisible hand of self regulation works! Yeah right. That self regulation didn’t exactly work last time and it won’t work again. The big banks will take advantage of the people again if the libertarian ideas become main stream.
It is also my opinion that to take the Occupy verbiage and transport it over to the Tea Party, making it look like the Occupy movement supports this defence of TBTF banks, is just a disgusting deal. How low can these libertarians go?
This is why Peter Schiff is disingenuous on this matter as well. First he says Washington DC is to blame but not the banks for the financial crisis. But then he turns around and blames the Fed without the TBTF banks.
But we need to realise that JP Morgan’s employee, David Li, established the mispricing formula for the CDO’s that helped ruin the world. The formula was adopted by the Fed and the other Central Bankers at Basel 2 in 1998. The banks used off balance sheet accounting to hide the risky loans that were destined for securitization into the bonds that were destined to be mispriced! This predatory lending scam was a team effort!
Schiff’s attempt to divide the private Fed from the TBTF banks is wrong. His attempt to count the private Fed as the face of government is wrong. It is the private Fed and the TBTF banks working together that have taken over government. I don’t know if Schiff associates himself with Alex Jones or not but they are both libertarians.
It is important to be clear on the definitions and we can’t be fooled when the Fed appears to be a public entity. Bernanke is not paid by the Federal government. The guy Lewis in 1982 who tried to sue a Federal Reserve employee as a government employee lost his case at the Ninth Circuit which held that the employee was a privately employed bank employee.
So, why would the libertarians want to equate Washington DC with the Fed more than the private TBTF banks who actually control Fed shares in their local territories. The NY Fed is the most powerful because it has the most powerful banks, JPM, Mellon, C, GS, etc.
I think the agenda of the libertarians and Tea Party is to preserve their wealth. OWS saw through this a long time ago. The private TBTF banks are predatory. The Tea Party didn’t care that much, except maybe some of the rank and file.
Just remember, the libertarian ideal is that the invisible hand of self governance will make everything turn out all right. If you believe that crock, then I have some property in Florida I want to sell you.