Create a National Crisis and Extend Dictatorial Power for OUR Security – Lies, Lies and Damnable lies
My comments in blue – Thanks to Mike Shedlock for posting Proposal and for his comments at the bottom. Emphasis added in red to Proposal and Mike's comments.
Dick Motta
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITYTO PURCHASE MORTGAGE-RELATED ASSETS
Section 1. Short Title.This Act may be cited as ____________________.
Sec. 2. Purchases of Mortgage-Related Assets.
(a) Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.
(b) Necessary Actions.--The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation:
MONEY CZAR – Sounds very much like Homeland Security – Dictatorial power and imposition of maritial law. Assuming new president – Who will be Secretary after election?
(1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts;
What is section 3109? Authority to do whatever he decides. Financial dictatorship of the Secretary.
(3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them;
Make financial institutions Government agencies and they have to follow his rules – What happened to Congress? Why were Truth-in-Lending Laws Violated? Why are usury laws being ignored?
(4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary shall take into consideration means for--
(1) providing stability or preventing disruption to the financial markets or banking system; and
(2) protecting the taxpayer.
Take what into consideration? Why didn't he protect taxpayers and borrowers before this happened? Where was the Federal Reserve, the Security and Exchange Commissioner, the Secretary, the Congress and the President?
Sec. 4. Reports to Congress.Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.
Authority is open ended. Congress has authority and supposedly authority to authorize fiscal expenditures and laws effecting the distribution of funds. Corruption is complete and allows Congress to evade responsibility for whatever actions Secretary initiates. Congress no longer represents the people and the corruption is effecting every aspect of our economy. The Constituion has been redefined and replaced with the Communitarian Rule of Law. One World Government.
Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.
(a) Exercise of Rights.--The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.
Government has no rights it has delegated duties to adhere to the Constitution and maintain the public trust. Power will be enforced. Power corrupts and absolute power corrupts absolutely. Accountable to who?
(b) Management of Mortgage-Related Assets.--The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.
(c) Sale of Mortgage-Related Assets.--The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act.
(d) Application of Sunset to Mortgage-Related Assets.--The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.
Double negative – Effectively,the program is never going to terminate.
Sec. 6. Maximum Amount of Authorized Purchases.The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time
The total amount of bad loans is being understated. They have no idea how much the debt will be assumed. The increase in the debt limit is an admission by the Federal government that they are going broke at a record pace. They do not say where they are going to get the $700 million. In reality, the loans will be arranged through the Federal Reserve, the very same bankers who caused the mortgage crisis in the first place. The bankers are responsible for extending mortgage contracts to unqualified purchasers. The provisions of the contract were designed to assure that buyers would be unable to pay and result in massive foreclosures. The bankers knew these loans would fail and were responsible for changing the bankruptcy laws in 2004. The dismissed CEOs of these companies were rewarded with millions of dollars in severance pay for their criminal behavior and mismanagement. Now, they want to arrange a government bailout so that the very people the bankers defrauded will have to pay for their criminal activity. No matter how the government arranges the bailout, inflation will be the result and it will impose higher prices on the people who can least afford it.
Sec. 7. Funding.For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure.
No budget, No accountability No fiscal restraint. These are the factors that caused the problem. Paulson was CEO for Goldman Sachs and was well aware of the practices of financial institutions, insurance companies and hedge funds. He did nothing to stop the issuance of sub-prime and uncollateralized loans. Per the Constitution, Article I, Section 8, the Congress may not delegate any of it's authority.
Sec. 8. Review.
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.
Sec. 9. Termination of Authority.The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.
Unless Secretary decides not to terminate!! See above negation of termination.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.
In 2001, debt was $5.6 trillion. In 2007, interest on debt was $481 billion on $9.3 trillion debt. Debt limitation was $9.4 trillion. Why increase limit by $2 trillion if they are talking $700 billion in mortgage related debt? Why is no consideration being given to cutting government spending? Why are taxpayers always supposed to make sacrifices to cover for their financial bungling and fical irresponsibility? The fact is that there is no fiscal responsibility on the part of the federal government, President or Congress. Cost to people in terms of inflationary taxes are hidden and imposed on those least able to afford the consequences of their corruption.
Sec. 11. Credit Reform.The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.
They didn't follow law in the past. Why should we assume they will comply with new undetermined dictatorial powers?
Sec. 12. Definitions.For purposes of this section, the following definitions shall apply:
(1) Mortgage-Related Assets.--The term “mortgage-related assets” means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.
(2) Secretary.--The term “Secretary” means the Secretary of the Treasury.(3) United States.--The term “United States” means the States, territories, and possessions of the United States and the District of Columbia.
If people are going to allow the imposition of dictatorial power, which is contrary to a Constitutional Republic and the concept of limited government, why do we need a Congress? Partnerships with government and financial institutions negates the free market system to totalitarian control. We are no longer being represented. The corruption is complete. Obama and McCain don't have a clue about economics and they will undoubtedly extend controls and appoint a new Secretary that will impose his/her concept of market control. Communism or Facism? Vote against all incumbents.
Thanks to Mike Shedlock
Dick Motta
Weep For The Taxpayer
Notice that this bill raises the national debt. Notice that the bill is supposed to take into consideration "protecting the taxpayer".The reality is this bill does not and cannot protect the taxpayer. Rather this bill only promises to take the taxpayer into consideration. The Treasury will indeed take the taxpayer into consideration, then immediately discard any such ideas.Inquiring minds are also noting "The Secretary’s authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one time."The idea behind the above statement is to allow for a continual dumping ground such that there will always be $700 billion in toxic garbage held under this program. As soon as any asset can be unloaded by the Treasury at cost, another toxic loan is eligible to be assumed on the books of the Treasury. This process can last for as long as two years.Unconstitutional ProvisionsPay particular attention to section 8.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.Essentially the law will state that whatever the Treasury does it is above the law. Such a provision is undoubtedly unconstitutional.Weep For The Free MarketIt's time to Weep For The Free Market (or rather what little free market the US had left).Weep For The Unites States of AmericaAt taxpayer expense, Bernanke and Paulson are willing to bail out their banking buddies at enormous expense to the average taxpayer of this country. Bernanke and Paulson both should be fired. Instead Congressional sheep will baa yes to this bailout and Bush will baa yes when he signs it. It is a sickeningly sad that day for America that Congress will go along with this proposal that makes the US Taxpayer A Giant Dumpster For Illiquid Assets.$700 billion will be wasted by this program and it is $700 billion the US does not have to waste. I ask that everyone vote against any congressman who votes for the passage of this bill.Mike "Mish" Shedlockhttp://globaleconomicanalysis.blogspot.com
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Weep For The Unites States of AmericaPosted by Michael Shedlock at 11:14 AM Print
Monday, September 22, 2008
Wednesday, September 17, 2008
Freedom or Slavery
Unless the people start fighting for their rights and enforcement of the Constitution, we are accepting slavery and dictates of the government. The people are no longer sovereign and the government limited. We are no longer a Constitutional Republic. The Executive, Legislature and Judiciary have progressively and persistently redefined the Constitution to suit their whim and we have allowed ourselves to be enslaved by the Rule of Government. Public officials are not honoring their oath of office to uphold the Constitution. They violate the public trust and no longer represent the people. A Communitarian Rule of Law is being implemented and enforced at all levels and the people are allowing it to happen. Vote against all encumbents. Restore the Constitutional Republic or become enslaved. The article below highlights the degradation. I don't see where McCain or Obama will do anything but accelerate Communitarianism.
Dick Motta
Grayghost@eaglecom.net grayghost1969
Wed Sep 17, 2008 2:32 am (PDT)
PAY ATTENTION TO THE NEXT TO LAST PARAGRAPH! http://www.freedomsphoenix.com/Editorial-Page.htm?InfoNo=038200&From=NewsA Liberty Moment09-17-2008 Howard Blitz928-726-8050 Website: The Freedom LibraryMore About: Constitution When the United States Constitution was signed on this date 221 years ago it marked a real change in the relationship between government officials and the citizenry. For most of history citizens were ruled by rulers. Now for the first time, the rulers were to be ruled. The prime minister of England, William E. Gladstone, later remarked about the United States Constitution that, “It is the greatest piece of work ever struck off at a given time by the brain and purpose of man.”
The Constitution is certainly not a perfect document for it did allow slavery to exist, and it continues to allow for slavery through the application of the income tax. The United States Constitution, though, continues to have value if only it is allowed to be implemented. The United States Constitution is the idea of putting government power in its rightful place and recognizing that all power in life ultimately resides in the individual. The document prevents the president from arbitrarily deciding to put American military personnel in harms way. It prevents government officials from forcefully taking from individuals and giving to others both internationally, such as Georgia and all other foreign aid, and domestically, such as bailing out businesses like Fannie Mae and Freddie Mac and now probably Lehman Brothers. It prevents government officials from spending money on activities such as education, health care, job creation, and the myriad of other government programs that have racked up an enormous debt that strains the citizenry’s ability to pay. The United States Constitution prevents government officials from spying on individuals unless permission is granted from a court of law. It prevents government officials from eliminating habeas corpus, establishing secret tribunals and prisons as provided for in the Patriot Act, Military Commissions Act, and FISA legislation. It prevents the president of the United States from being an emperor because the president must get approval from congress for all actions taken. The commander–in-chief position the president holds only means that he is the highest ranking military officer, who is a civilian by intent. Likewise, congress, under the United States Constitution, is prevented from just giving its authority to declare war and financially support the troops to the president.
Sadly, today, the vast majority of individuals in congress, the two major candidates for president of the United States, and many of America’s past presidents and members of congress not only have given and give lip service to the Constitution, but they do not even discuss in their campaigns the ideas found in the Constitution. Whoever takes the oath of office January 20, 2009 as the country’s next president will have to make massive changes in the way American government conducts itself if taking that oath has any meaning at all. The president must stop making war without a declaration from congress and congress must stop allowing the president to act in such a way. The president must stop giving all foreign and domestic aid to individuals and congress must stop providing for such activity. Both the president and congress must abolish the Federal Reserve System and cut spending drastically to prevent additional debt from being incurred. The FISA legislation, Military Commissions Act, and the Patriot Act must also be abolished.
The United States Constitution cannot be construed as just a piece of paper if individual liberty is to survive. The Constitution is the idea that individuals have the right to govern themselves without any interference from anyone, especially government officials. To govern oneself takes a tremendous amount of moral fortitude and respect for others. It is the greatest challenge of mankind. It is much easier to be enslaved. We, the posterity the founders referred to in the Preamble of the Constitution, have the responsibility of making self governance and individual liberty work. The Constitution is really only as good as we the people pay honor to it in following its precepts. Otherwise, tyranny is the order of the day which the world has been exposed to the vast majority of time throughout history.
Dick Motta
Grayghost@eaglecom.net grayghost1969
Wed Sep 17, 2008 2:32 am (PDT)
PAY ATTENTION TO THE NEXT TO LAST PARAGRAPH! http://www.freedomsphoenix.com/Editorial-Page.htm?InfoNo=038200&From=NewsA Liberty Moment09-17-2008 Howard Blitz928-726-8050 Website: The Freedom LibraryMore About: Constitution When the United States Constitution was signed on this date 221 years ago it marked a real change in the relationship between government officials and the citizenry. For most of history citizens were ruled by rulers. Now for the first time, the rulers were to be ruled. The prime minister of England, William E. Gladstone, later remarked about the United States Constitution that, “It is the greatest piece of work ever struck off at a given time by the brain and purpose of man.”
The Constitution is certainly not a perfect document for it did allow slavery to exist, and it continues to allow for slavery through the application of the income tax. The United States Constitution, though, continues to have value if only it is allowed to be implemented. The United States Constitution is the idea of putting government power in its rightful place and recognizing that all power in life ultimately resides in the individual. The document prevents the president from arbitrarily deciding to put American military personnel in harms way. It prevents government officials from forcefully taking from individuals and giving to others both internationally, such as Georgia and all other foreign aid, and domestically, such as bailing out businesses like Fannie Mae and Freddie Mac and now probably Lehman Brothers. It prevents government officials from spending money on activities such as education, health care, job creation, and the myriad of other government programs that have racked up an enormous debt that strains the citizenry’s ability to pay. The United States Constitution prevents government officials from spying on individuals unless permission is granted from a court of law. It prevents government officials from eliminating habeas corpus, establishing secret tribunals and prisons as provided for in the Patriot Act, Military Commissions Act, and FISA legislation. It prevents the president of the United States from being an emperor because the president must get approval from congress for all actions taken. The commander–in-chief position the president holds only means that he is the highest ranking military officer, who is a civilian by intent. Likewise, congress, under the United States Constitution, is prevented from just giving its authority to declare war and financially support the troops to the president.
Sadly, today, the vast majority of individuals in congress, the two major candidates for president of the United States, and many of America’s past presidents and members of congress not only have given and give lip service to the Constitution, but they do not even discuss in their campaigns the ideas found in the Constitution. Whoever takes the oath of office January 20, 2009 as the country’s next president will have to make massive changes in the way American government conducts itself if taking that oath has any meaning at all. The president must stop making war without a declaration from congress and congress must stop allowing the president to act in such a way. The president must stop giving all foreign and domestic aid to individuals and congress must stop providing for such activity. Both the president and congress must abolish the Federal Reserve System and cut spending drastically to prevent additional debt from being incurred. The FISA legislation, Military Commissions Act, and the Patriot Act must also be abolished.
The United States Constitution cannot be construed as just a piece of paper if individual liberty is to survive. The Constitution is the idea that individuals have the right to govern themselves without any interference from anyone, especially government officials. To govern oneself takes a tremendous amount of moral fortitude and respect for others. It is the greatest challenge of mankind. It is much easier to be enslaved. We, the posterity the founders referred to in the Preamble of the Constitution, have the responsibility of making self governance and individual liberty work. The Constitution is really only as good as we the people pay honor to it in following its precepts. Otherwise, tyranny is the order of the day which the world has been exposed to the vast majority of time throughout history.
Thursday, September 11, 2008
RLC Endorsement
The Republican Liberty Caucus, a national political organization working to change the direction of the Republican Party in the direction of strengthening free markets, preserving individual rights, and limiting government has endorsed your candidacy in 2008. You can learn more about the RLC at www.RLC.org. You can view your endorsement at http://www.rlc.org/endorsements/candidates/ .
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