You are on page 1of 4

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 Glass-
Steagall 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