Apparently, the Federal Reserve is never going to stop printing (counterfeiting) money.
The Obama administration's decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.
The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.
Unlimited access to bailout funds through 2012 was "necessary for preserving the continued strength and stability of the mortgage market," the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.
"The timing of this executive order giving Fannie and Freddie a blank check is no coincidence," said Rep. Spencer Bachus of Alabama, the ranking Republican on the House Financial Services Committee. He said the Christmas Eve announcement was designed "to prevent the general public from taking note."
It's like they want to crash the dollar.
Using borrowed money for a band-aid bailout of the economy should seem backwards to most people. However, it likely is a planned strategy to promote radical change. Those naively believing that President Obama is simply rewarding his far-left base, and will then move to the political center, must wise up.
The assumption that Obama will need the nation to prosper in order to protect the 2010 mid-term election incorrectly assumes that he esteems free market capitalism. He does not. Rather than win through superior ideas and policies, the Democrat plan for success in the mid-term elections is to win by destroying political opposition.
Obama adheres to the Saul Alinksy Rules for Radicals method of politics, which teaches the dark art of destroying political adversaries. However, that text reveals only one front in the radical left's war against America. The Cloward/Piven Strategy is another method employed by the radical Left to create and manage crisis. This strategy explains Rahm Emanuel's ominous statement, "You never want a serious crisis to go to waste."
The Cloward/Piven Strategy is named after Columbia University sociologists Richard Andrew Cloward and Frances Fox Piven. Their goal is to overthrow capitalism by overwhelming the government bureaucracy with entitlement demands. The created crisis provides the impetus to bring about radical political change.
Progressives use the poor to gain power and destroy capitalism.
There is plenty blame to go around for the financial crash. Yet, there is a distinct odor of the shadowy Cloward-Piven strategy as the taproot of abusive practices that triggered the crisis. The strategy's goal is to bring about the fall of capitalism by overloading and undermining government bureaucracy.
Its supporting tactics include flooding government with impossible demands until it slowly cranks to a stop; overloading electoral systems with successive tidal waves of new voters, many of them bogus; shaking down banks, politicians in Congress, and the Department of Housing and Urban Development for affirmative-action borrowing; and, now, pulling down the national financial system by demanding exotic, subprime mortgages for low-income Americans with little hope of repaying their loans. These toxic mortgages are an important source of the foul smell engulfing the entire financial bailout.
The root causes for the 2008 financial panic were sown some 40 years ago when the Institute for Policy Studies, the notorious "Think Tank of the Left," held socialist seminars geared toward undermining the American capitalist system. Beginning in 1964 and continuing to the present day, the Institute for Policy Studies has used seminars especially scoped to influence congressmen and their assistants to support the "progressive," that is to say "socialist," viewpoint. A 1969 "Housing and Property" seminar, hosted by the Institute for Policy Studies, for example, treated Capitol Hill denizens to mind-stretching leftism. Bringing together speakers from big-city tenants councils, neighborhood legal services, FHA insurance, savings-and-loans entities, and the Shannon and Luchs Realty Company, the Institute for Policy Studies "plinked" the first domino that led to the current crisis.
A key element of the contemporary crisis certainly reflects many years of a "backward economic philosophy and culture of corruption" cited by the Obama camp. But much of the associated backwardness and deception were secretly peddled by the Institute for Policy Studies. Its war against the financial system used improvised non-ethical devices (INEDs) designed to destroy capitalism and support Mr. Obama. One of those roadside INEDs was the Cloward-Piven strategy.
The Federal Reserve's monetary policy is destroying the U.S. dollar. So don't be surprised when our Washington Overlords want the IMF to "bail us out."
So all I want to emphasize that the monetary policy assets—as structured in the US has a destabilising impact on the economy and also on the assets’ markets.
If we agree that excessive credit and excessive leverage led to the crisis, then what the Federal Reserve is doing is giving a wrong medicine to the patient—they are giving the drug addicts more drug instead of sending them to rehabilitation, which is not good for the economy. So I think that the whole policy will eventually end in another disaster but we don’t know when and many things can happen in between.
Both major parties are to blame. They are deliberately destroying America.
Whenever a Great Bipartisan Consensus is announced, and a compliant media assures everyone that the wondrous actions of our wise leaders are being taken for our own good, you can know with absolute certainty that disaster is about to strike.
The events of the past week are no exception.
The bailout package that is about to be rammed down Congress’ throat is not just economically foolish. It is downright sinister. It makes a mockery of our Constitution, which our leaders should never again bother pretending is still in effect. It promises the American people a never-ending nightmare of ever-greater debt liabilities they will have to shoulder.
The claim that the market caused all this is so staggeringly foolish that only politicians and the media could pretend to believe it. But that has become the conventional wisdom, with the desired result that those responsible for the credit bubble and its predictable consequences – predictable, that is, to those who understand sound, Austrian economics – are being let off the hook. The Federal Reserve System is actually positioning itself as the savior, rather than the culprit, in this mess!
The issue boils down to this: do we care about freedom? Do we care about responsibility and accountability? Do we care that our government and media have been bought and paid for? Do we care that average Americans are about to be looted in order to subsidize the fattest of cats on Wall Street and in government? Do we care?
When the chips are down, will we stand up and fight, even if it means standing up against every stripe of fashionable opinion in politics and the media?
Times like these have a way of telling us what kind of a people we are, and what kind of country we shall be.
Indeed. What kind of people are we, and kind of country shall we be? Will we choose to be free?