A bail-out here, a bail-out there, it seems everytime we turn around, some company has found a way to get the government to bail them out of their financial troubles. They are either too big to fail, or too intertwined into the financial system, or have too many employees, so we are told we can’t allow them to fold and restructure under bankruptcy.
Thus far, the government has pledged or already lent out $7.76 trillion dollars. That’s the equivalent to $24,000 for every man, woman and child in the country. That’s right folks. That $600 dollars you received at the beginning of the year was great. So they turned around and added $24,000 debt not just to you, but your spouse and kids as well. Thanks big government corptocracy!
This is why things like offering $1,000 tax credit back to Americans is a slap in the face. They throw us crumbs while giving out corporate hand-outs and push our debt so high we can’t even afford the payments. This means we as American’s are insolvent. And it’s only a matter of time before the rest of the world figures it out.
According to the Congressional Budget Office figures, the money pledged equates to nine times what the U.S. has spent so far on wars in Iraq and Afghanistan. It could pay off more than half the country’s mortgages.
Stop and imagine that for a minute. Instead of big parties for AIG at fancy resorts, half of those in trouble could have been made solvent. Instead of big payouts for non-performing executives of Wall Street, half of those losing their homes could have had them saved.
So what are we getting in return for each of us loaning $24,000 to these companies. We have no idea. According to Congressman Scott Garrett, a New Jersey Republican who serves on the House Financial Services Committee:
Whether it’s lending or spending, it’s tax dollars that are going out the window and we end up holding collateral we don’t know anything about. The time has come that we consider what sort of limitations we should be placing on the Fed so that authority returns to elected officials as opposed to appointed ones.
In other words, the Federal Reserve has been out spending our tax money, giving it to companies they deem worthy, and reportedly getting something in return for it, but they won’t say who they gave it to, or what they got in return. Sounds like a blank check, something TARP was not supposed to be.
According to Federal Reserve Chairman Ben Bernanke:
Some have asked us to reveal the names of the banks that are borrowing, how much they are borrowing, what collateral they are posting. We think that’s counterproductive.
Bernanke’s Fed is responsible for $4.74 trillion of pledges, or 61 percent of the total commitment of $7.76 trillion, based on data compiled by Bloomberg.
They promised things wouldn’t play out this way, that there would be accountability. Seems they just said what we wanted to hear to get the authorization from Congress, and now it’s poo-poo on us for wanting them to keep their word.
Most of the spending programs are run out of the New York Federal Reserve. The same Federal Reserve Timothy Geithner served as President, and who was just tapped by President-elect Barack Obama as Treasury Secretary. So the foxes are still running the hen house, and the slaughter will continue. Even with the new President, we can expect more of the same economically.
Congress needs to immediately rein in the Federal Reserve. If they do not provide accountability, then they don’t get tax dollars to spend. Ultimately, the Federal Reserve should be abolished and the power to control the money supply taken back by the Congress. Too bad this will never happen as our elected officials who are supposed to protect us have sold us out.
It’s probably too late anyhow. The horses have already left the barn. That $7.76 trillion isn’t coming back, it’s going to be added to the public debt, already at $11 trillion. Plus, that amount keeps increasing, with Federal Reserve average weekly lending jumping from $48 million to $91.5 billion weekly. When you consider our GDP is at $26 trillion and sinking, that means we are very likely to default on our loan obligations in 2009 because our costs have soared beyond our revenue.
If that happens, all bets are off. Imagine China taking Yellowstone National Park off our hands as collateral. Or maybe they will take our Interstate system and make it a giant toll road. That’s where we are heading.