Freddie & Fannie unconstitutional bail out using what?
Thursday, July 17, 2008
By Devvy Kidd
NewsWithViews.com
Arthur
Henning of the Chicago Tribune said back in 1935, "The New Deal
will bring the Communist Party within striking distance of overthrow
of the American form of government..." Mark Sullivan of the Buffalo
Evening News also expressed alarm in 1935: "The New Deal is
to America what the early phase of Nazism was to Germany..."
The nation is awash in fear because they are coming to realize that while
they've been buying all the hype from the cabal of gangsters in Washington
for decades, reality is now setting in as poverty is slamming millions
who used to belong to the middle class. From dangerous lending practices
to the derivatives time bomb waiting to go off and inflation getting
ready to launch into hyper inflation, the situation is more grim by
the week. A financial catastrophe so many have been warning about for
decades, it's all coming home to roost. The "perfect storm"
as it's being called. The beast is now devouring itself and we the people
are caught in their cross fire.
Unfortunately, most Americans haven't been listening. They're either addicted to sports,
shopping, porn, drugs or yaking on their cell phones while the world
has been heading for financial Armageddon. Oh, they perk up when they
hear things like how many new jobs Bill Clinton created! Clinton used
to love to brag that he had created 14 million new jobs during his tenure.
He did? Sure, and Mr. Jones can thank Clinton for all three of his minimum
wage jobs while Clinton supported the destruction of our true and
meaningful job bases: ag, industrial and manufacturing. George
W. Bush has steadfastly supported the same destructive redistribution
of America's wealth into the hands of foreign countries while our people
go without - backed up by both Democrats and Republicans.
Still, the American people continue to vote the same incumbents back into office
expecting change as they did in 2006. Nothing has changed. We tried
to tell people they were being led like cattle to the slaughter house.
But, since corporate media has controlled the flow of information in
this country for decades, the majority remain in the dark without a
clue. The Internet has been a tremendous tool, but not everyone owns
a computer and too many continue to play the right vs the left.
Tragically, the majority of Americans have zero knowledge of our monetary and banking
systems. Take a good look at the person in front of you at the grocery
store, post office or at these rallies during this past primary 'season.'
Virtually all of them will tell you our form of government is a democracy
and that mother government is the answer to what's bringing us to ruin.
Ignorance is not bliss. As the empty bellies in this country grow louder
because families have to sacrifice food for gas, dental appointments
for gas and other basic necessities, the anger and frustration will
build. As their paychecks continue to shrink from more and more heavy
taxation, spending will decline and the economy will not grow.
As the American people become more desperate, they will grab at anything
thrown out there to save their homes and jobs. Barack Hussein Obama
and Juan McCain will continue feeding them gibberish about "fixing
the economy." Why,
only yesterday, Obama "calls for a new stimulus package to
jump start the economy." Who does this huckster think he's kidding?
Since tens of millions have little understanding of how and why we got here,
they will grab the lie that sounds the best. Neither Obama or McCain
have ever even whispered the only real solution to our monetary and
financial crisis. Perhaps they're listening to another blithering idiot,
US Treasury Secretary Henry Paulson who said last week: "...the
US economy would most likely be stronger at the end of 2008, even as
oil prices surged to new records above 146 dollars. "I think there
is a very strong possibility that we will be growing at the end of the
year. We will have stronger growth at the end of the year than we have
right now."
The upside is that millions of Americans do know and understand how we came
to this point. They know because, just like me, they learned from individuals
like Dr. Edwin Vieira, who has been educating on this issue for over
30 years. The same as Congressmen Louis McFadden (deceased, 1936) and
Ron Paul; G. Edward Griffin and too many more to list. We also know
that what is being proposed regarding Freddie Mac and Fannie Mae is
against the law. The U.S. Constitution does NOT authorize Congress to
act as a bank to bail out corporations like Lee Iacocca's Chrysler Corporation,
the infamous 'Mexican Peso Bailout' under Marxist Bill Clinton or Freddie
and Fannie.
As
James K. Hickel, of the Heritage Foundation so accurately pointed
out in 1983: "In the case of the Chrysler bail-out, a big
chunk of taxpayer money was committed to a shaky and inappropriate venture.
Every American became an involuntary and uncompensated partner in a
company whose future is still in doubt. On top of this, the bail-out
even failed in its purpose. The precedent established is extremely dangerous."
Not only was it a dangerous precedent and in violation of the supreme law
of the land, here we are 25 years down the road: "Chrysler
to lay off thousands of salaried workers, cut 750 job at Ohio plant.
The white-collar cuts come on top of the 13,000 layoffs Chrysler announced
in February as part of a massive restructuring plan." GM
has also announced huge lay offs coming. This bail out of Freddie
and Fannie will not help the local economies where the lay offs happen.
The situation will worsen when those workers can't make their mortgage
payments and default. The
states won't be able to tax at the same rates and will begin to crumble.
Services in your state will be cut and those who lose their state, city
and county jobs will have a hard time with their mortgages. Add the
number of seniors already dependent upon the state for their very existence,
including medical care and the increasing numbers of seniors
filing for bankruptcy and you have a financial sledge hammer coming
down on the states that's going to get ugly.
As for the Mexican Peso bail out, millions of us demanded Congress stop
such lunacy, but you see, it was tied to NAFTA. The same NAFTA both
the Republicans and Democrats have allowed to remain in effect for over
15 years even though it is clearly unconstitutional and has killed MILLIONS
of good jobs. An excellent analysis can be found here: The Peso
Crisis and Cause. The U.S. Constitution was again trashed and too
few cared.
On July 16, 2008, I happened to catch a segment with Judge Andrew Napolitano
on FAUX News Network's afternoon session hosted by the affable, but
ignorant, Shepard Smith. Napolitano patiently tried to explain to Smith
why Congress has NO authority to bail out any of these private corporations.
Smith looked perplexed, as usual. Andrew Napolitano is one smart man
who isn't afraid to call it like it is and would have made a first rate
Attorney General under a Ron Paul presidency. Add Dr. Edwin Vieira as
Secretary of the Treasury and we would have seen the first steps taken
towards ridding America of her shackles to the unconstitutional "Federal"
Reserve Banking System.
What Smith didn't seem to grasp, the looting of the American people once
more to save stock holders of these corporations -- just what is going
to be used for this latest swindle of the people's purse? The U. S.
Constitution does not authorize Congress
to act as a bank or loan guaranty agency. All the cable network
gas bags and political pundits are weighing in on this financial tsunami
with one band aid or another. Of the dozens of columns and news items
I've read in the past couple of weeks, I believe the one that best sums
it up is by Lew Rockwell, Fannie,
Freddie, Fascist:
"Place the blame not only on the banks, but also on the institutions that are
siphoning off their liabilities for irresponsible behavior, and that
would be Freddie and Fannie. And who created these? Travel back in time
to the New Deal. Here is an
article about the creation of Freddie Mac. And here is another
about Fannie Mae.
They were created by FDR in 1938 to fund mortgages insured by the Federal
Home Administration. They were used by every president as a means to
achieve this peculiar American value that every last person must own
a home, no matter what. So they were given the legal permission to purchase
private mortgages and make them part of their portfolios. Still later,
under LBJ and Nixon, they became public companies and sold stock."
These crooks in Washington want to rescue the stock holders of Freddie and
Fannie to the tune of ONE TRILLION dollars. That's just what these two
entities need right now. Who knows what the final numbers will be? We
have to remember that close to another million homes will go into foreclosure
by the time the next puppet president is sworn into office. What will
they "need" a year from now? Where will this ONE TRILLION
"dollars" come from? July 15, 2008: Bernanke:
Economy faces 'numerous difficulties'
"Bernanke's testimony comes just two days after the Fed and the Treasury Department
came to the rescue of mortgage giants Fannie Mae and Freddie Mac, offering
to throw them a financial lifeline. The Fed chief was later joined by
Treasury Secretary Henry Paulson and Securities and Exchange Commission
Chairman Chris Cox, who were summoned to detail the rescue plan. The
two companies hold or guarantee more than $5 trillion in mortgages --
almost half of the nation's total. The Bush administration is asking
Congress to temporarily increase lines of credit to Fannie and Freddie
and to let the government buy their stock. The Fed
has offered to let the companies draw emergency loans."
Where in Art.1, Section 8, of the U. S. Constitution does it authorize the
federal government to buy up stock in any corporation and reward stockholders
for their gross mismanagement? Where is the "FED" going to
get this ONE TRILLION "dollars"? Why, they're going to create
it out of thin air - the magical money machine! As I write this column,
Congress has run this country into a $9,498,511,404,143.63 debt. That's
just under $9.5 TRILLION "dollars." How many Americans know
what "debt ceiling" means?
March 22, 2008: Congress Raises
the Debt Ceiling To Accommodate Bush's Legacy
"The House fiscal 2009 budget, which passed last week, raises the borrowing
authority of the United States from $9.815 trillion to $10.2 trillion,
an increase of $385 billion dollars. The Senate, passing its own version
of the 2009 budget, did not raise the federal borrowing authority, but
does expect to spend $3 trillion, with a projected deficit from $340
to $366 billion. Some estimate that the Treasury Department will hit
the $9.815 ceiling limit shortly after the November elections, which
will be no surprise to anyone. The two chambers will have to reach a
compromise in the next few weeks. The big winners in all of
this are the foreign entities the U.S. will borrow from in an effort
to finance the expenditures."
Increase lines of credit, Mr. Bush? What you're asking is to further enslave
my daughter who already works two jobs just to keep afloat, to
save these stock holders and entities that should never have been
created in the first place. If this ONE TRILLION "dollars"
created out of thin air is added to the national debt, it will exceed
the current 'debt ceiling' as the interest accumulates; Congress will
have to raise it again. Counterfeit U.S. Senator, Chris Dodd wants everyone
to shut
up about Freddie and Fannie. Could it be because this incompetent
blowhard is the Chairman
of the U.S. Senate Committee on Banking, Housing and Urban Affairs
that recently passed another rape of we the people:
July
11 (Bloomberg) -- "The U.S. Senate passed a $300 billion plan
to help thousands of Americans keep their homes and tighten regulation
of Fannie Mae and Freddie Mac in an effort to ease the worst housing
slump since the Great Depression. The legislation, approved 63-5 today,
would let an estimated 400,000 struggling homeowners avoid foreclosure
by refinancing their subprime mortgages into fixed-rate loans
backed by the government. The measure also offers tax incentives
to potential home buyers and sets aside $4 billion to help communities
buy foreclosed properties."
"Backed by the government" means if they default again, we the people are
on the hook in higher taxes for all this borrowed paper. There isn't
any $300 BILLION in the U.S. Treasury. It's empty and overdrawn almost
$9.5 TRILLION dollars. That $300 BILLION will have to be borrowed from
the private "FED" and the interest will be slapped on our
backs. What future is there for our children and grand children except
as slaves to the powerful? Does anyone see the lunacy here?
Increase lines of credit, Mr. Bush? No, increase debt. Rearranging massive debt
with more massive borrowing (debt). Does anyone see the lunacy here?
The truth is that you cannot have a "strong, robust economy"
that is based on debt because debt is not prosperity no matter how much
clever word smithing is being pumped out for public consumption. A nation's
monetary system cannot and will not survive under a fiat currency such
as we've had shoved down our throats since 1913. This
is why so many own gold. Yes, you should have a good back up food
system, but when paper money is worthless, no one turns down gold.
Change cannot happen with the same incumbents who have approved this fleecing
of we the people as well as all the other unconstitutional legislation
coming out of CON-gress for decades. Unless you want to be little better
than oxen to the yoke while Congress
takes care of the bankers, help kick them out in November. This
means getting out and working for a candidate and if machines and/or
scanners are used, a hand count must take place immediately because
any constitutional candidate running for high level offices will lose.
Listen to the voice of experience.
Learning Links:
1 - Be
a part of history. This is the real new print media
2 - Are
Monetary & Banking Crises Inevitable in the Near Future? (March
2005)
3 - Will
The Coming Monetary Crisis Provide Opportunity For Reform? (March
2005)
4 - The
Shearing is Nearing (Feb. 2007)
5 - 78% Income Tax Rate Hike?
6 - July 10, 2006. Congress Ignoring
Looming Financial Catastrophe
7 - October 4, 2007. Congress
will do nothing to stop coming financial disaster
8 - The
Final Globalization of The US Banking System
9 - Mortgage
Meltdown. Interest rate 'freeze' - the real story is fraud
Bankers pay lip service to families while scurrying to avert suits,
prison
10 - Will you out live your money?
11 - Congressman
McFadden brings formal charges against Federal Reserve
Devvy left the Republican
Party in 1996 and has been an independent voter ever since. She isn't
left, right or in the middle; she is a constitutionalist who believes
in the supreme law of the land, not some political party. Her web site
(www.devvy.com) contains a tremendous
amount of information, solutions and a vast Reading Room.
Devvy's website: www.devvy.com
E-mail is: devvyk@earthlink.net
NOTE: In accordance with Title 17 U.S.C. section 107, any copyrighted material herein is distributed without profit or payment to those who have expressed prior interest in receiving this information for non-profit research and educational purposes only. For further information please refer to: http://www.law.cornell.edu/uscode/17/107.shtml
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