The July 22 Enterprise editorial — “The Fed and Congress: Who’s in Charge?” — examines a question of supreme importance for our nation’s economic future. The editorial agrees with Fed chairman Bernanke’s view that only Congress is in charge and the Fed is not.

There is, however, much evidence contradicting this conclusion, revealing that the Fed and the banks that are too big to fail are actually in charge.

For example, consider Sen. Dick Durbin’s April 29, 2009m statement: “And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place.”

For nearly a century the Fed had managed to avoid being audited right up until the Dodd-Frank financial reform bill demanded a limited audit of the event associated with our nation’s 2008 financial debacle.

The astounding results of this partial audit revealed that the Fed had provided a total of 16 trillion taxpayer dollars at extremely low interest rates to every major financial institution in the country and to a number of corporations, wealthy individuals and central banks throughout the world. This explains why we are still experiencing major financial problems today.

With no oversight or input from Congress, the Fed had showered the wealthy and powerful with abundant, cheap credit so they would not fail, while leaving credit very tight for ordinary citizens, thereby causing them to fail in great numbers.

There is so much more that can’t be included in this brief letter, but if you want a more in-depth discussion, then read Matt Taibbi’s 2011 article in Rolling Stone magazine, titled “The Real Housewives of Wall Street.”

Don Kyhos

Davis

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