Bush Seeks Zionist Bailout

by Larry McCart

September 21, 2008

 

George Bush (president of the US federal government) is seeking power from Congress for the US federal government to buy up to 700 billion dollars in home loans, mortgage-backed securities, commercial mortgage-related assets, and other assets from financial companies owned and/or controlled by Zionists. Treasury Secretary Henry Paulson wants to avert Zionist financial losses that could result in many Zionists being thrown out on the streets with nothing -- a fate they deserve.  These creatures are goofballs; they are incompetent, and they are crooks. The bill would prevent courts from reviewing actions taken under the bill's authority, so that Zionists can, in effect, steal from US taxpayers without fear of law suits.  The ban on legal challenges of actions by the US federal government is "distasteful, it's unfortunate, and it's bad precedent...,'' said Jerry Markham, a law professor at Florida State University and author of A Financial History of the United States.  George Bush (president of the US federal government) seeks "dictatorial power not reviewable by the third branch of government, the courts, to try to resolve the crisis,'' said Frank Razzano, a former assistant chief trial attorney at the Securities and Exchange Commission now at Pepper Hamilton LLP in Washington. The bill would give Paulson authority to buy home loans, mortgage-backed securities, commercial mortgage-related assets, and other assets in order to transfer Zionist losses to US taxpayers.  Paulson also would be given authority to buy assets from foreign financial institutions -- such as Zionist-owned banks in the Zionist State. The plan would raise the ceiling on the national debt, and spend as much as the combined annual budgets of the Departments of Defense, Education and Health and Human Services.  Paulson is asking for the power to hire Zionist asset managers, and to award contracts to private Zionist companies. Paulson said that assets bought by the US federal government would later be sold, recovering some money for US taxpayers.  If a Zionist sells a mortgage on a run-down apartment complex to the US federal government for ten times what it is worth, then later the US federal government can liquidate the property for 10 cents on the dollar -- saving the Zionist from taking the loss by transferring the loss to US taxpayers. A failure by the government to support the Zionist bunglers could lead to big financial losses for incompetent Zionists and put them in a "depression''.  To not do anything is to risk the kind of economic downturn the Zionists experienced after World War Two that resulted in more influence for anti-communists in the US federal government -- McCarthyism etc.  The US federal government is seeking authority to step in as buyer for mortgage-linked assets at much higher prices than private financial institutions would pay, following government takeovers of mortgage giants Fannie Mae and Freddie Mac and insurer American International Group Incorporated (a Zionist-controlled insurance company that sold insurance on mortgage-related securities without having financial resources for covering potential insurance claims; this sort of activity would be considered insurance fraud in the State of California, and would result in prison time for the executives responsible).  "Democrats will work with the administration to ensure that our response to events in the financial markets is swift,'' House Speaker Nancy Pelosi said in a statement. Democrats also will include a plan to stem foreclosures, that may involve tapping the loan-modification abilities of the Federal Housing Administration, the Federal Deposit Insurance Corporation, and Freddie Mac and Fannie Mae. Senate Majority Leader Harry Reid said that he has misgivings about the rescue plan. House minority leader John Boehner, an Ohio Republican, said yesterday he is reviewing the proposal, but did not say whether he was inclined to support it. "The American people are furious that we're in this situation, and so am I,'' Boehner said in a statement.  "We need to do everything possible to protect the taxpayers....'' Yesterday interested parties filed into the House Financial Services Committee hearing room to question Treasury employees of the US federal government including David Nason, assistant secretary for financial institutions, and Neel Kashkari, a senior adviser to Paulson and former investment banker at Goldman Sachs Group Incorporated, where Treasury Secretary Paulson was previously chief executive officer. George W. Bush (president of the US federal government) said he called leaders in both houses of Congress and "found a common understanding of how severe the problem is, and how necessary it is to get something done quickly''. Democratic presidential nominee Barack Obama said in a radio address that he "fully supports'' Paulson's efforts.  Republican Presidential nominee John McCain "looks forward'' to reviewing the proposal while focusing at least in part on "minimizing the burden on the taxpayer'', said Jill Hazelbaker, communications director for the McCain campaign. The proposal would raise the nation's debt ceiling to $11.315 trillion from $10.615 trillion, and require the Treasury Secretary of the US federal government to report back to Congress three months after the US federal government first uses its new powers, and then semiannually after that. Paulson would gain discretion to act as he "deems necessary'' to hire people, enter into contracts, and issue regulations related to a revival of U.S. mortgage finance, according to a three-page proposal. The US federal government may hire managers to purchase the assets through so-called reverse auctions, seeking the lowest prices.  The document specifies that the US federal government may buy only assets issued or originated on or before September 17, 2008. George Bush (president of the US federal government) said yesterday that he is unconcerned that the price tag on the package may seem high.  "I'm sure there are some of my friends out there that are saying, 'I thought this guy was a market guy, what happened to him?''' the president said.  "My first instinct was to let the market work, until I realized, while being briefed by the experts, how significant this problem became."   September 26, 2008 The 700 billion dollar bailout probably would be financed with an "inflation tax".  The federal government would create 700 billion dollars of new money that would be added to the existing money supply.  Within a short time after this new money was spent the first time, the price system would adjust so that the same amount of goods and services can be purchased with a larger number of dollars.  In other words, the rate of price inflation would increase for a while.  Another result would be a faster falling dollar in the international currency markets, causing imported crude oil and many other imported items to be more expensive -- resulting in a decline in the US standard of living.  There are two ways the 700 billion dollars can be obtained: (1) net purchases by the Federal Reserve System of 700 billion dollars of US federal government securities issued by the US Treasury, and (2) net sales by the US Treasury of 700 billion dollars in US government securities to non-Federal Reserve buyers.  Option 1 probably would be the way chosen to finance the bailout, and this is the option that would be, in effect, an "inflation tax". The primary economic cause of the US economic depression during the 1930's was a big drop in primary and secondary buying power.  The common stock one owns represents secondary buying power in the economic system.  Those who own common stock think of the current value of their stock as "their money".  In about one year the US economic system lost about 60 billion dollars in secondary buying power because of the collapse of just Washington Mutual Bank because of the drop in current value of Washington Mutual common stock.  Those who own houses think of the current value of their equity in the houses as "their money".  Home equity also represents secondary buying power in the economic system.  In the past year the US economic system lost hundreds of billions of dollars in secondary buying power because of the decline in home values. The main problem in the US economic system at the current time is a huge drop in secondary buying power.  The Paulson Plan will not make a significant difference regarding the main problem in the US economic system.  A bad recession will occur with or without the Paulson Plan.  Because the implementation of the Paulson Plan will cause a decline of the value of the US dollar in international money trading, the Paulson Plan, if put into effect, will make things worse for the majority of US citizens. The Washington Mutual case was handled brilliantly -- with little, if any, cost to US taxpayers.  Instead of giving tax-payer money to persons with known histories of gross negligence regarding financial management, why not seize their financial companies, remove them from control of these companies, and then sell the remaining assets of these companies at fair prices to well-managed companies.  This is the way the Washington Mutual case was handled.  Just like Washington Mutual common stockholders, the guilty parties would not receive anything.  A current challenge for the US is solvency of US financial businesses.  Some US financial businesses are close to the point where they can not pay all of their obligations.  When a financial business is seized by the federal government (like in the case of Washington Mutual) common stock shareholders are wiped out, US taxpayers are not forced to pay for the sins of others, and the US dollar does not decline. George Bush (president of the US federal government) should be admired for admitting that he is not qualified to make a decision on what an acceptable bailout is, and for admitting that he will rely on what Henry Paulson tells him.  Henry Paulson's bailout plan probably would result in disaster -- the collapse of the US dollar and a terrible and long-lasting economic depression. If total destruction of the financial systems in the US, Great Britain, and Israel is a realistic probability as Paulson was reported to have claimed behind closed doors to Congress, something like Paulson's bailout plan would be needed to cause this to happen.  Instead of a bailout plan for problem financial businesses, we need a throw-out plan for problem financial businesses.  If a financial business is insolvent and can not pay all of their obligations, the assets of the business should be seized by the proper federal government agency, and the managers should be thrown out.  The assets of the seized business should be sold for a fair price to a business with competent managers. We do not know if the Paulson Plan for giving taxpayer money to privately-owned US and foreign financial businesses will do any good for the economic systems.  We do not know if paying above-market prices for billions of dollars of toxic assets will channel money to individuals who manage money wisely.  The Paulson plan would help some of his domestic and foreign friends in the short-term, and probably would be harmful to all persons involved in this financial mess in the longer-term. The Paulson plan proposes that Bush administration actions regarding this plan should be beyond the oversight of US courts.  The draft bill explicitly prevents any questioning of Paulson (and his successors): "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."  President Bush does not trust the US Congress and the US court system; he is requesting to be absolute dictator regarding the Paulson Plan.  This is an insult to US Senators and US Representatives; this is an insult to the US court system.