The plan would raise the ceiling on the national debt and spend as much asthe combined annual budgets of the Departments of Defense, Education andHealth and Human Services. Paulson is asking for the power to hire assetmanagers and award contracts to private companies. Most provisions of theproposal expire after two years from the date of enactment.
These are the foxes who are guarding the chicken coop, the technocrats of the banking elite, the money masters who have orchestrated the destruction of the American economy so as to benefit themselves:
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From: “Don Nordin” <•••@••.•••>Date: September 22, 2008 12:24:14 AM GMT+01:00To: “Don Nordin” <•••@••.•••>Subject: BUSH DICTATES GUTTING OF TAXPAYERS TO ‘SOLVE’ FINANCIAL CRISISFrom what I understand, this unprecedented bailout of the financial sectoris not a solution. It merely postpones the inevitable failure of the U.S.financial system and simultaneously increases the debt of the U.S. taxpayer,a debt which it will never be able to repay. It guarantees that common andprivate assets of the U.S. itself will further be ‘auctioned off’, in otherwords given away to the Money Masters in return for its ‘favour’ of bailingout that financial sector with its fiat money created out of nothing andbacked by nothing. In order to pay off this bailout made by the privateFederal Reserve, social services will be cut, pensions robbed, etc., whichwill further push the U.S. taxpayer into slavish serfdom.***********************Treasury Seeks Authority to Buy $700 Billion Assets (Update1)By Alison Fitzgerald and John BrinsleySept. 20 (Bloomberg) — The Bush administration asked Congress forunchecked power to buy $700 billion in bad mortgage investments from U.S.financial companies in what would be an unprecedented government intrusioninto the markets.The plan, designed by Treasury Secretary Henry Paulson, is aimed at avertinga credit freeze that would bring the financial system and economic growth toa standstill. The bill would bar courts from reviewing actions taken underits authority.“It sounds like Paulson is asking to be a financial dictator, for a limitedperiod of time,” said historian John Steele Gordon, author of “Hamilton’sBlessing,” a chronicle of the national debt. “This is a much-neededdeclaration of power for the Treasury secretary. We can’t wait until thenext administration in January.”As congressional aides and officials scrutinized the proposal, the Treasurylate today clarified the types of assets it would purchase. Paulson wouldhave authority to buy home loans, mortgage-backed securities, commercialmortgage-related assets and, after consultation with the Federal Reservechairman, “other assets, as deemed necessary to effectively stabilizefinancial markets,” the Treasury said in a statement.The Treasury would also have discretion, after discussions with the Fed, tomake non-U.S. financial institutions eligible under the program.Bigger Than PentagonThe plan would raise the ceiling on the national debt and spend as much asthe combined annual budgets of the Departments of Defense, Education andHealth and Human Services. Paulson is asking for the power to hire assetmanagers and award contracts to private companies. Most provisions of theproposal expire after two years from the date of enactment.A failure by the government to support the U.S. financial system could leadto “a depression,” Senator Charles Schumer told reporters in New York.“To do nothing is to risk the kind of economic downturn this country hasn’tseen in 60 years.”The Treasury is seeking authority to step in as buyer of last resort formortgage-linked assets that few other financial institutions in the worldwant to buy, following government takeovers of mortgage giants Fannie Maeand Freddie Mac and insurer American International Group Inc.“Democrats will work with the administration to ensure that our response toevents in the financial markets is swift,” House Speaker Nancy Pelosi saidin a statement.Fast TrackThe majority party will seek to reduce mortgage foreclosures and create“fast-track authority” for an overhaul of financial regulation, Pelosisaid. Democrats will ensure “the government is accountable to the taxpayersin any future actions under this broad grant of authority, implementingstrong oversight mechanisms.”The proposal will include curbs on executive pay for the companies whoseassets the government will be buying, Steve Adamske, a spokesman forRepresentative Barney Frank, said today in an interview.Democrats also will include a plan to stem foreclosures, which may involvetapping the loan-modification abilities of the Federal HousingAdministration, the Federal Deposit Insurance Corp., and Freddie Mac andFannie Mae, Adamske said. Frank, a Democrat from Massachusetts, is chairmanof the House Financial Services Committee.“The consequences of inaction could be catastrophic,” Senate MajorityLeader Harry Reid said in a statement.`Serious Issues’“While the Bush proposal raises some serious issues, we need to resolvethem quickly,” he said. “I am confident that, working together, we will.”House minority leader John Boehner, an Ohio Republican, said today he isreviewing the proposal but didn’t say whether he was inclined to support it.“The American people are furious that we’re in this situation, and so amI,” Boehner said in a statement. “We need to do everything possible toprotect the taxpayers from the consequences of a broken Washington.”Congress, which may pass legislation as soon as Friday, needs to “make surethere are protections built in for taxpayers,” said Schumer, a New YorkDemocrat on the banking committee. Lawmakers should ensure “taxpayers whogave the money will be put ahead of the stockholders, bondholders andothers.”Paulson is seeking an expansion of federal influence over markets thathasn’t been seen since the Great Depression, said Charles Geisst, author of“100 Years of Wall Street” and a finance professor at Manhattan College inNew York.Hoover EraGeisst likened the plan to the Reconstruction Finance Corp., which waschartered by Herbert Hoover in 1932 with the goal of boosting economicactivity by lending money after credit markets seized up.President George W. Bush said he called leaders in both houses of Congressand “found a common understanding of how severe the problem is and hownecessary it is to get something done quickly.”“This is going to be a big package because it’s a big problem,” Bush saidfollowing a meeting with Colombian President Alvaro Uribe at the WhiteHouse. “We need to get this done quickly, and the cleaner the better.”Democratic presidential nominee Barack Obama said in a radio address that he“fully supports” Paulson and Fed Chairman Ben S. Bernanke’s efforts tostabilize the financial system. The plan, however, should benefit both mainstreet and Wall Street, he said.Republican Presidential nominee John McCain “looks forward” to reviewingthe proposal while focusing at least in part on “minimizing the burden onthe taxpayer,” said Jill Hazelbaker, communications director for the McCaincampaign.Ban Legal ChallengesThe ban on legal challenges of actions by Treasury is “distasteful, it’sunfortunate and it’s bad precedent, but this is an emergency and you have toact,” said Jerry Markham, a law professor at Florida State University andauthor of “A Financial History of the United States.”“What you don’t want happen is to have lawsuits that will slow things downand cause problems,” he said.The proposal would raise the nation’s debt ceiling to $11.315 trillion from$10.615 trillion and require the Treasury secretary to report back toCongress three months after Treasury first uses its new powers, and thensemiannually after that.Paulson would gain discretion to act as he “deems necessary” to hirepeople, enter into contracts and issue regulations related to a revival ofU.S. mortgage finance, according to a three-page proposal. The Treasurywould “take into consideration” protecting taxpayers and promoting marketstability.Hiring AuthorityThe Treasury plans to hire managers to purchase the assets through so-calledreverse auctions, seeking the lowest prices, a person briefed on theproposal said yesterday. The document specifies that Treasury may buy onlyassets from U.S.-based financial institutions issued or originated on orbefore Sept. 17.The House will pass legislation to implement the plan by the end of nextweek, and the Senate will act soon after, Frank said yesterday in aninterview on Bloomberg Television’s “Political Capital with Al Hunt.”Bush today said he’s unconcerned that the price tag on the package may seemhigh.“I’m sure there are some of my friends out there that are saying, I thoughtthis guy was a market guy, what happened to him,” the president said. “Myfirst instinct was to let the market work, until I realized, while beingbriefed by the experts, how significant this problem became.”The Bush administration seeks “dictatorial power unreviewable by the thirdbranch of government, the courts, to try to resolve the crisis,” said FrankRazzano, a former assistant chief trial attorney at the Securities andExchange Commission now at Pepper Hamilton LLP in Washington. “We aretaking a huge leap of faith.”To contact the reporter on this story: Alison Fitzgerald in Washingtont ;John Brinsley in Washington at •••@••.•••Last Updated: September 20, 2008 21:14 EDT
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