Jacob G. Hornberger – The Justice Department has announced it is investigating the banking crisis. It will undoubtedly charge that banking officials are responsible for the crisis. One thing is for sure: It will not indict the Federal Reserve System, which is the root cause of the crisis. In fact, in its search for scapegoats, it will not even acknowledge the Fed’s role in the crisis. That’s because the Fed plays a sacrosanct role in America’s welfare-warfare state, and every federal official knows that.

Of course, this is not a new phenomenon. Back in the 1930s, the last thing government officials were going to do is admit that the Federal Reserve was the root cause of the 1929 stock-market crash that led to the Great Depression. Instead, they told the American people that the crisis was all because of the “failure of America’s free-enterprise system.” Continue reading →