Economy[1]

A Commentary on the Bailout

The bailout is reaching into more controversy. Congress held hearings about Bush's 700+ billion dollar bailout law of certain big banks. It was passed by the House and the Senate. It's ironic that the government wants the Federal Reserve to have this immense power, but polls show that most Americans oppose such a measure. According to a recent Rasmussen Reports survey, 28% of Americans support the banker bailout plan and another 35% are not sure what to think. Much of the story behind the economic crisis isn't displayed by the mainstream media. Some elites have been writing about such a crisis for a long time. Their goal (as found in the words from the Trilateral Commission, the FED, the Bilderbergers, and other groups) is to form an integrated world economic order where the majority of our economy is controlled by the banking elite (which most of their leaders are controlled by Europeans). Even Freemason Barry Goldwater wrote about this. He said that: "The Trilateral Commission is international and is intended to be the vehicle for multinational consolidation of the commercial and banking interests by seizing control of the political government of the United States." Some economic experts believe that dumping billions of payouts to banks with fiat currency (even trying to bailout foreign banks) will increase the risk of causing an economic meltdown in America. This multinational corporations' consolidation of power (under groups like the IMF and World Bank owning real assets) can cause a collapse of the dollar, because the burden to pay this debt off is unto the taxpayers. Paulson admits in his 200 page document "Blueprint for a Modernized Regulatory Structure" about describing the need for U.S. markets to meet global standards.

The deal is that the FED and some elitists are looting money out of economy, while real competition (and the people's usage of gold, silver, platinum, etc). are limited among citizens. "The bill would bar courts from reviewing actions taken under its authority," reports Bloomberg. The bailout law possesses authoritarian powers acquired by the executive branch of government once again (some have called it fascism, because the Bush proposal will have an big absolutist state ruled by corporations and international bankers). The money crisis occured for decades among Democrats and Republicans. The Reserve Reserve was created in 1913 and it caused fiat currency to reign. With the Bretton Woods Agreement being passed in the 1970's, the value of the U.S. dollar decreased even more. The war on terror and overspending are other contributing factors to an economic downtown under the Bush administration. It isn't just one administration that's responsible for this crisis though. The Trilateral Commission and the CFR were involved in a plan called Project 80's. This plan called for the controlled disintegration of the economy. Paul Volcker, who was appointed Federal Reserve Chairman by the 'Trilateral presidency' under Carter in August 1978, said only three months later: "A controlled disintegration in the world economy is a legitimate object for the 1980s." Freeman adds, "it was not by chance that starting the week of Oct. 6-12, 1979, Volcker began raising interest rates, by raising the federal funds rate and increasing certain categories of reserve requirements for commercial banks. He kept pushing rates upward, until, by December 1980, the prime lending rate of U.S. commercial banks reached 21.5%."

Back in the late 1990's, Congress proposed a new economic system in dealing with housing. There was the Community Reinvestment Act (it was passed by President Jimmy Carter. He legitimately wanted incentives to help low income borrowers to own a home). That's a great idea if it's done correctly. In 1995, Clinton changed parts of the Community Reinvestment Act. These changes added subprime mortgages into them (or the securitization of CRA loans containing subprime mortgages). This forced banks to issue about 1 trillion dollars in new subprime loans. The subprime mortgage securities were created. Bear Stearns utilized it first. Then, Fannie Mae (who is a government sponsored enterprise or a GSE) sells the loans to banks plus investors. The more mortgages existing will result in more money Fannie making. Fannie allows flexibility in their loaning to appear to low income people) purchased about $2 billion of mortgage loans. Subsequently, the suprime mortgage purchases grew (home prices started to rise). Many banks offered loans on no money down with only interests on the mortgage (including a low variable rate and no income verification in some cases). With the prices of homes rising, gas prices rising and interest rates rising (especially during the Bush administration), low income citizens have a high economic burden to pay off those loans. Then some of the borrowers stopped paying and banks stopped lending. Therefore the subprime market collapsed. Foreclosures increase, because people couldn't pay of the value of their own homes (since the value of the homes shot up). The prices of homes started to fall (with borrowers not paying). Therefore, Fannie Mae's guarantees are worthless since they overstate their asset. Banks collapsed because of the failure of the subprime mortgage system (plus the worthlessness of the loans). The government sponsored securities issued by Fannie Mae were apart of why jobs disappeared, and the largest threat to our economic security since the Great Depression. The changing of the CRA (as supported by Rudin) or the Community Reinvestment Act is to be blamed for much of it as well The reason is that before CRA expansion, home prices increased with inflation. After the expansion, home prices become unhinged from inflation. In other words, home prices grew irrespective how inflation existed after 1995. These new CRA rates caused home prices to rise extremely fast. In other words, you don't mandate an extreme regulatory credit system as an economic solution. That causes a bubble to burst.

Some people tried to stop it before now with a new agency to oversee Freddie Mac and Fannie Mae. This was in 2003. Ironically the Bush administration tried to do this (even though I don't agree with Bush on every issue). Barney Frank, Melvin Watt, and others opposed such a measure (they claimed it would prevent poorer Americans to have access to affordable housing when the prices of housing increased drastically since 1995). Even John McCain warned of a mortgage collapse in 2005 as reported by Ken Taylor on September 17, 2008. I don't support McCain on every issue also. The repeal of the GlassSteagall Act (that seperated commercial banking from stock trading) was brought on by the Republicans and sponsored by Phil Graham. He was McCain's senior economic advisor. Liberals believe that the repeal of this act contributed to this crisis as well because the repeal of the law didn't encorporate legitimate oversight in the economy. "The Housing Enterprise Regulatory Act of 2005" was the bill called S-190 dealing with the issue (it was proposed to regulate Fannie Mae and Freddie Mac). It was blocked and in 2007 it wasn't passed. Fannie Mae had economic links to Chris Dodd, Jim Johnson (a Bilderberger, a big banker and on the Board of Goldman Sachs. He had to quit Obama's Presidential campaign because of a sweetheart loan he received), Franklin Raines (he was a Vice Chairman of Fannie Mae when the CRA was expanded. He was the CEO of Fannie Mae from 1999-2004), etc. There should be no discrimination and everyone deserve a home if they want to. Yet, it is incorrect revise a law to make no down payments or create subprime mortgages in order to do it. Poor people and true free markets never caused this economic crisis. A bad government regulation policy (along with theft of assets, corruption, weak legitimate regulations, and the manipulation of the markets) caused this (who allowed Main street bankers to embrace predatory lending practices in order to force "affordable mortgages" unto citizens, which some citizens couldn't afford) crisis. Wall Street and the White House helped caused this problem as well (while, some want them to get billions of dollars for their crimes). This plan sponsored by Bush is socialism for the rich plain and simple (with no judicial oversight in the earlier bill). This is plain theft by certain banking entities (not all banks). It's Robin Hood in reverse.

Frankily, the bailout is socialism for the rich or allowing banks to steal wealth from the people. This can increase the risk of an economic depression on the scale of the Great Depression (during the late 1920's to the 1930's). This is what we should not be doing again (the usage of central banks to control our political system in a feudal fashion who readily create secret agreements without the input of citizens at all). It appears that Fannie Mae and Freddie Mac may have a connection to the McCain campaign. The New York Times reported something. They reported that Senator John McCain's campaign manager was paid more than $30,000 a month for five years as president of an advocacy group set up by the mortgage giants Fannie Mae and Freddie Mac to defend them against stricter regulations, current and former officials say. Barack Obama has been accused of having links to Fannie Mae, while Obama denies this. Ironically, both Obama and McCain are criticizing Wall Street in a harsh fashion. Notice how no one is asking for immediate investigations or indictments for anyone committing crimes for wrong mortgage practices, etc. The Treasury Secretary acts like it can do what it wants whenever it wants. George W. Bush is really a economic socialist. Over 200 economists have criticized the present bailout situation. Here's problems with the new bailout law as passed by President George W. Bush. Conflicts of interests exist in the economic crisis on many levels. The head of the FED Hank Paulson was once the Chairman of Goldman Sachs. Now, Paulson is appointing Neel Kashkari to handle the bailout to people (many of whom don't deserve it). Neel is an ex-Goldman Sachs executive. Not to mention it has millions of pork barrel projects are in the bill (they include $6 million in tax breaks for wooden arrow manufacturers in Oregon, $128 million in tax breaks for the manufacturers of car racing tracks, $223 million in tax breaks for Alaskan fisherman, and others). H.R. 1424 – Emergency Economic Stabilization Act of 2008 is the name of the new law. It's a disgrace of a law and it will do little to solve our economic problems. You don't do these things when you have over 10 trillion dollars in national debt, spending over 1 trillion dollars in the war on terrorism, and a trade deficit inbalance. The law allows the Secretary of the Treasury to steal all assets deemed "troubled" (which can be ambigious defined as almost all assets from stocks to bonds). It specifically authorizes the purchase of securities held by foreign banks and central banks. Section 109 allows the Secretary to rewrite mortgage contracts unilaterally. The powers of the Secretary are not bounded by judicial review at all from Section 119 of the Act. This is dictator-like power by the government. It's about centralizing the power of a few elitists benefiting a select few of private bankers. We need real reforms from having a balanced budget, cutting unnecessary spending, cutting our military budget to save revenues, have more transparency about businesses, and use means to build up our national infrastructure (since these jobs can't be sent overseas. There need to be a rebuilding our urban areas as well). The deal is that private, central banks shouldn't control our economy at all. The W film (which doesn't expose the new world order, NORAD, Secret Societies, and other real issues) blames Bush being a rabid Christian for his policies, but Bush far from a conservative Christians. He is apart of the occult Skulls and Bones group, believes in abortion for rape and incest, agrees with preemptive war, and is apart of the Bohemian Grove (where its followers praise an idol of Minerva and cite Druid occult sayings). Therefore, we have a right to speak our minds publicly and taking real action in our land. I don't trust Oliver Stone's "W" disinformation information. The Fall Season is going on and the Election of 2008 is soon to be over. By Timothy