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Just as in the modern world the opposite of “bankruptcy” is “bailout," so the opposite of “democracy” is not "dictatorship" but “technoautocracy.”

During the great financial blow-out that occurred at the end of the Bush regime, continuing into the Obama years, while the U.S. Congress was debating whether or not to bail out too big to fail banks with a $700 billion blank check, financial technocrats were slipping $7.7 trillion to Wall Street under the table. Since none of the technocrats were elected to office, none of them had to worry overmuch about angry constituents, and no explanations were forthcoming – or even necessary.

In 2009, according to documents obtained by Bloomberg news, members of the Federal Reserve Board of Governors, unelected technoautocrats authorized to dictate monetary policy in the United States, passed along to Wall Street’s biggest players $7.7 trillon in no-strings-attached, super low interest loans.

In a stunning commentary, Tom Hartman notes:

“Six of the nation's biggest banks - like Morgan Stanley and Bank of America - pocketed a not-too-shabby $13 billion in undisclosed profits, thanks to the deal with the Technocrats at the Fed. So today - thanks to a decision made by technocrats - and not politicians - the too-big-to-fail banks are even bigger - and Wall Street has raked in more profits in just the last 30 months - then they did in the entire 8 years leading up to the 2008 financial crisis.”

Ross Dothat, another commentator, notes that technoautorcracy is in the process of being internationalized:

"For the inhabitants of Italy and Greece, who have just watched democratically elected governments toppled by pressure from financiers, European Union bureaucrats, and foreign heads of state, it evokes the cold reality of 21st-century politics. Democracy may be nice in theory, but in a time of crisis it's the technocrats who really get to call the shots. National sovereignty is a pretty concept, but the survival of the European common currency comes first."


According to a later Reuter’s report, Fed Chairman Ben Bernanke has disputed the $7.7 trillion figure.

“Mr. Bernanke has written to lawnmakers "that the figure and other estimates of larger total amounts of lending, were ‘wildly inaccurate.’ On any given day, Fed credit from its emergency liquidity programs was never more than about $1.5 trillion, he said.

"’These articles ... have contained a variety of egregious errors and mistakes,’ Bernanke told the chairmen of the U.S. Senate Banking and House of Representatives Financial Services committees."

Bloomberg stands by its initial story


Pauldz said…
So why aren't the Occupy crowd occupying our Federal gov't? Our politicians and bureaucrats are the enablers of financial mischief that the banks get up to.
Hugh said…
Its a misunderstanding. The money was repurchase agreements an the low rates was due to the term, they are overnight rates which are not annualized. Plus, they had collateral against the borrowings and the haircut on that collateral dictates the rate. All was repaid with interest. When was that ever said before? And the "profits made in the past 30 months, if we go back twelve more months those profits are losses. A lot of politics going on around all this.

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