When Unregulated Capitalism Does Not Apply

Recycled post from 9/1/07:

Republicans and wealthy businessmen love to promote unregulated capitalism labeling anyone that questions the "invisible hand" -- the metaphor coined by the economist Adam Smith in his book, The Wealth of Nations -- as a communist. What they don't tell you is that they only believe in unregulated capitalism when it applies to the "working class". In other words, Wall Street loves unregulated capitalism when its gouging the average citizen, but demands government intervention when the crème de la crème anticipate the "invisible hand" might tug at their purse strings.

The Federal Reserve is not part of our government the way we have been taught to believe; it is more powerful than government, the President, congress and the courts, yet most of us think of the Federal Reserve as an institution that operates in "our" best interest when that is only true if "our" best interest happens to coincide with the best interest of the affluent.

The Federal Reserve, chartered by an act of Congress,-- Federal Reserve Act of 1913 -- on December 23, 1913, could best be described as an, independent, privately owned and locally controlled corporation, although it is not a governmental institution, it does have substantial governmental ties.

The bottom line is that the Federal Reserve controls the money and their main objective is to bailout the wealthy. If the "invisible hand" is doing its job and assisting the rich get richer the Fed allows unregulated capitalism but if the "invisible hand" is working against the interest of the moneyed citizens capitalism will be regulated and no one will have to worry about being labeled a communist.