Devvy Kidd UnConstitutional Bailout of Freddie and Fanny

By: Devvy
July 17, 2008

© 2008 - 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."
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