Words from the founding fathers – 6.03.10
Posted: Friday, June 4, 2010 12:28 pm
By: Nathan Castleman, Guest Columnist
Did you know the Senate passed (last Thursday) the Restoring American Financial Stability Act of 2010? The House passed its version back in December. Now they have to work to come to agreement between the two. Then to add insult to injury guess when they hope to have it passed and ready to be signed into law by the President – July 4th!
The first thing we need to know and rest assured in is that the culmination of this bill is in good hands – Barney Frank (House) and Chris Dodd (Senate). You remember them. They were big proponents of Fannie Mae and Freddie Mac, which by the way with their underwriting of mortgages to sub-prime borrowers largely contributed to the real estate bubble and its implosion.
Frank said (July 14, 2008), “Fannie and Freddie are fundamentally sound, that they are not in danger of going under. They’re not the best investments these days from the long- term standpoint going back. I think they are in good shape going forward. I do think their prospects going forward are very solid. And in fact, WE’RE GOING TO DO SOME THINGS THAT ARE GOING TO IMPROVE THEM.”
Great job guys!
On that same day, Dodd said in a ABC interview, “Fannie and Freddie are very liquid. They’re in good shape in my view.” In a few months the housing market and our very economy fell apart. And these two are in charge of writing financial reform? So just what have they come up with?
In a stroke of genius they came up with the idea of no regulation on Fannie and Freddie, which have already received $125 B in stimulus money. Section 113 sets a protected class of businesses that are “too big to fail.”
But thankfully there will be a Financial Stability Oversight Council that will choose which businesses this covers. Then the Federal Reserve can just write them a check from our account.
Thomas Jefferson said, “To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is sinful and tyrannical.” There’s going to be a whole lot of sinning going on.
It also provides for the seizure of private property “without meaningful judicial review.” That means the Sec. of the Treasury can order the seizure of any financial firm he finds in danger of default. This can also apply to other non-financial firms if the Sec deems them harmful to our economy.
“Non-financial” in Section 102 is defined as any company “substantially engaged in activities … that are financial in nature.” Well that just about covers any business.
John Adams said, “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
The Treasury will be able to open up a line of credit of your money without even going through Congress. Alexander Hamilton said, “If Congress can employ money indefinitely to the general welfare … The powers of Congress would subvert the very foundation, the very nature of the limited government established by the people of America.”
In essence, Congress will give it’s okay to allocate this money by giving the power to the Treasury. If this bill becomes law, the government will CONTROL 60 percent of our economy.
It creates tons of new regulations. Section 1044 limits pre-emption of state and local rules. It will subject banks and their customers to confusing, costly, and red tape imposed by regulators. In addition it creates a Bureau of Consumer Financial Protection (google this one). That sounds good – for the government to “protect” us.
Actually it will limit what financial products and services will be offered to consumers, reduce choice and make credit more expensive and harder to get, plus track consumer transactions.
In other words they will know how, when, and where you spend your money. James Madison said, “As a man is said to have a right to his property, he may be equally said to have a property in his rights. Where an excess of power prevails, property of no sort is duly respected.
No man is safe in his opinions, his person, his faculties, or his possessions.”
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