RestoreTheRepublic.com - 10-3-08 | I find it
interesting that among all the talk today about the
bailouts that most people think we have no choice in
the matter. That without the government stepping in
all would be lost and America would go down the
tubes. But how many of us have actually read the
actual verbiage of the bailout act. I got the
following email from the Ron Paul organization
highlighting a few points that should be of interest
to all Americans.
The bill states that: “The Treasury Secretary
is authorized to purchase up to $700 billion in
mortgage-related assets at any one time.”
Most of us have been told that this is the total
amount of the bailout, but as you can see it is the
amount available “at any one time,”
meaning they can do it again and again without any
further legislation or consent of the governed.
The act also designates financial institutes as
“financial agents of the Government.” In effect
nationalizing the banking system whereas prior to this
event banks were only a “chartered” government entity,
meaning they could be regulated. Now if you are an
agent of the government, how easy is it going to be
for the government to look at all the books of the
bank and have access to every bank account for every
person in the banking system? With one foul swoop
they have entered every banking account in the country
to know exactly what you and I are doing with our
money.
And to make sure no one can question anything they
do in this regard the bill states: “Decisions by the
Secretary pursuant to the authority of this Act are
non-reviewable and committed to agency discretion, and
may not be reviewed by any court of law or any
administrative agency.” Now they have set themselves
outside of the ability of anyone, inside or out of the
government, to question what they have done. There
actions cannot be questioned in court or by any
“administrative agency.” How would you like to have
that kind of power.
I find it quite interesting that the very problem
that was caused by government involvement in the
financial market is now looked upon as the answer to
resolve that problem. By increasing government
involvement and regulation, which caused the problem
in the first place, and then place themselves in a
position of immunity by not allowing their decisions
to be reviewed, even by the courts.
The government
created the mechanism whereby people who normally
would not qualify for a mortgage were given a
mortgage. They knew that these loans were risky and
in many cases knew outright that they would end up
in default but the banks were forced to comply. How
were they forced? Banks are rated by the Fed. to
determine how much money the bank may have to loan
and thus determines how much money the bank can
make. If you comply with their monetary schemes
then you get access to more money. More money to
loan by the bank means more profit potential, and
what the heck the government is guaranteeing the
loan.
All the while the housing boom is happening and
house prices are going up and Freddie and Fanny are
underwriting more and more bad loans. The housing
prices keep going up due to the gluttony of buyers,
unqualified buyers, and the ratio of good to bad
loans hits the breaking point and it all comes
crashing down.
The house prices fall, people now are upside-down
on their mortgage and they won’t be able to sell
because they owe more than it is really worth. You
see the increase in property values was propped up
by the government with all the bad paper that they
forced on the market. Now they offer to “bail out”
the market to allow the bubble to continue and the
opportunity to create even more debt by the American
people. The exact same reason that got us
in trouble to begin with.
And we haven’t even tackled the question of which
Article 1, section 8, enumerated power gives them
the authority to do this in the first place. Hint,
it doesn’t exist — this was totally
unconstitutional.
Welcome to the new age of fascism!
