C.C.T.A. : Congress Covers Their Ass

Since February 13, 2008, Moneythoughts has been trying to put together a picture, piece by piece, much the same way that a large stained glass window is put together. Each piece, surrounded by many different pieces in shape and color, but viewed as a whole, presents an image that can be recognized for what it is.

We have all heard of the letters “C.Y.A.” and know that that means “cover your ass”. There is a not too well known cousin to “CYA” and that is “C.C.T.A.”. C.C.T.A. stands for Congress Covers Their Ass. Let me explain: however, for those of you who regularly read MONEYTHOUGHTS, no explanation is necessary.

Congress is responsible for passing the budget. Congress votes on the Federal Budget. That is called FISCAL POLICY. Fiscal policy is a fancy word for spending tax dollars. Far too often, tax dollars the Federal Government does not have on hand. So, like everyone else the Federal Government borrows money. The Treasury Department borrows money for the Federal Government by issuing Treasury Bills, Notes and Bonds.

Congress created the Federal Reserve Bank, and the Federal Reserve Bank makes MONETARY POLICY. Monetary policy is involved with the expansion of the money supply and protecting the purchasing power of the dollar. Some where along the line the primary mission of the Fed got changed to helping the economy maintain full employment and help the sitting President get reelected.

Congress created the Security & Exchange Commission. The SEC is supposed to protect the investor from the greedy bastards that sell the investment products to the public from Wall Street. The SEC has a budget which is funded by Congress. If the SEC does a poor job of policing Wall Street, Main Street gets it in the back of the neck, and in the pocket as well. The financial crisis, the bond market meltdown and the bank bailout known as TARP, are all with us as a result of the poor job done by the SEC.

When you put all the pieces together and take a few steps back, as you would when you look at any large piece of art, the smaller pieces of the mosaic start to come into focus. Our job as citizens of this great country is to keep the mosaic in focus and enlighten those who are having trouble focusing. That is what the press and TV news is supposed to do. Congress, on the other hand, does not want us to focus on the whole picture, but would rather we get all hung up on meaningless pieces of the bigger picture. Because, if we focused on the big picture, they might be voted out at the next election. We all need more light on this big stained glass window. More light, more light, more light.

Stay tuned.