Just months ago, most Americans were fighting the good fight of stopping a bailout for the housing crisis to the tune of $850 billion. We lost that one. Then a couple of weeks ago, Treasury Secretary Hank Paulson announced to the country that the bailout plan was changing course and was not going to bailout mortgages, but buy up banks. And now today the U.S. government has announced that it is prepared to lend more than $7.4 trillion on behalf of us – the American taxpayers – to rescue the financial system since the credit markets seized up 15 months ago. Keep in mind that the current national debt is $10,670,133,369,927.79 when I blogged this. That promise is almost as much as the current debt! And that is only on one of our national books. There are actually three, but who wants to discuss social security at a time like this. No one wants to think about the fact that the full national debt on all of America’s books is more like $75 trillion.
This unprecedented pledge of funds includes some $2.8 trillion that has already been tapped by the financial industry in what has become the biggest response to an economic emergency since FDR’s New Deal of the 1930s. The Federal Reserve’s lending last week was 1,900 times the weekly average for the three years before this current economic crisis. When FED Chairman Bernanke and Treasury Secretary Paulson were laying out the housing crisis bailout they acknowledged the need for transparency and oversight. Now regulators are refusing to disclose loan recipients or reveal the collateral they are taking in return and I also had seen on the Drudge Report last week that the oversight committee for the bailout had no members meaning no oversight. Some Congress members are finally calling for the FED to rein in this bailout craziness, but it is too little too late. Just last night (as always they do these things while we sleep), Citigroup Inc. received $306 billion of government guarantees for toxic assets and troubled mortgages. The Treasury Department will inject an additional $20 billion into Citigroup which saw its stock fall 60 percent last week.
I hear pundits on TV discuss the fact that America is going to go bankrupt if this bailout madness doesn’t stop even as President Bush pushed Congress this weekend in his regular radio address to bailout the big three automakers: Ford, GM and Chrysler. Makes one start to think that the goal is to bankrupt America. Actually, the truth is that America already is bankrupt. If America were a citizen in this kind of financial straights that is precisely what they would be called. The debt over America’s head seems to me to be too large to ever conquer. And we are continuing to spend with promises from the Democrats for more. How exactly do you think Obama is going to create all these 2.5 million jobs? This new stimulus package they are setting up will not only fall flat like the last one (Insanity: doing the same thing over and over again.) but put us farther in debt. And really, do we expect to see these car dealers who will be losing their businesses and banking execs who are bankrupting their institutions out with shovels building the infrastructure of America? Sounds like Obama will be creating a whole bunch of new jobs for the illegals. I guess that would make the slide into the North American Union easier anyway.