The most important news of the year: Wall Street-Washington megacomplex fails to block Fed audit

You know Ron Paul, do you him? Rep. Alan Grayson, liberal Forida
Democrat and Paul's partner in stopping crime. (AP/Harry Hamburg)

Whoa.

The most important economic development of the year just occurred, but you probably will not hear about it except from a few bloggers.

The oligarchs propping up the Wall Street-Washington corporate megacomplex failed miserably yesterday in their bid to block a bipartisan initiative to force transparency at the Federal Reserve and oblige the Fed to submit to a rigorous audit.

The oligarchs were led by lisping Democratic congresshack Rep. Barney Frank who – surprise, surprise – reneged at the last minute on his pledge to support an audit of the Fed and instead moved to protect his corporate Wall Street dominatrix slave masters and block the bill.

The people, meanwhile, were represented by the post-partisan union of libertarian Texas Republican Rep. Ron Paul and liberal Democrat Rep. Grayson.

Grayson and Paul – both alleged nutjobs according to the lamestream media – won in a landslide. They garnered a shocking large 303 vote veto-proof majority in support of their bill.

To say that this is a sea change in American economic policy is a massive understatement. Administration after administration has allowed the Federal Reserve to operate like rogue tyrants with no accountability for their secret overseas dealings and shady collusion with Wall Street financial firms. Together, they have pillaged and looted the coffers of American families and sacrificed the middle and medium classes upon a cross of gold.

Some people think the Fed is corrupt and/or unconstitutional and ought to be abolished outright. That likely will not happen. Long held Supreme Court precedents allow Congress's authority to create a national bank. And the election of a President popular, powerful, and populist enough to outmauever Congress through executive orders and abolish central banking -- like Andrew Jackson did -- is not on the contemporary horizon.

But Americans can hope, at least, that Congress serve as representatives of the people and an actual watchdog to the Fed, rather than as representatives of big money and the Fed's lapdog.

As Congress slowly responds to public outrage over the government's pathetically inefficient economic and financial risky schemes, and as voters slowly replace the ossified Washington political elite with real politicians of the people, real and responsible oversight and regulation of the nation's monopolistic financial establishment will become reality.

The people are simply fed up; that populist fury created the climate in which the Paul-Grayson reforms had to be taken seriously by Congress.

You did not hear about this because big media and big business do not want public momentum in favor Reps. Paul and Grayson. While they conspire to suppress this great news, no doubt the Wall Street-Washington megacomplex’s oligarchs have slithered back to their gilded holes to plot and plan and redouble their efforts to cut Paul, Grayson, and the rest of us on Main Street off at the knees.

But the era of big bailouts are over. American insistence on fairness and freedom are the only thing now too big to fail.

Things to take away from this? One, note that this effort to rein in the greed of the financial class was post-partisan. Meanwhile, Wall Street’s biggest defenders were Obamacrats: Barney Frank and Rep. Watt of North Carolina. Both are scoundrels of the highest order who need to be drummed out of office, if not placed on the breaking wheel.

Two, note that while this is good news the America people are not out of the woods yet. This bill must pass its Senate hurdle, where it currently has only about thirty known supporters. Even if the bill passes both houses of Congress with veto proof majorities, the Obama White House is still the wild card.

Will the President and his economic team stand up for the American people, or will they continue to protect their Wall Street cronies? Will Obama continuesto demonstrate his signature lack of transparency, weakness, and economic incompetence by maneuvering with Rahm Emanuel and Barney Frank to block this attempt to regulate and reform the big banking system which has so harmed working people?

Stay tuned. But celebrate this first step, for now. It's a biggie.

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