Enabling Act of 2008
Dear Member of Congress:
You are being asked to assign unprecedented powers to an unelected, and unaccountable former Wall Street banker, under the guise of bringing stability to the markets and solvency to our banking system. With one hastily thrown together vote, you are going to create the most powerful human being in world history – Henry Paulson.
This is being done for the purposes of fixing a “crisis” that has suddenly, in the last hour, been presented to Congressional leaders. This act would remove the constitutionally mandated powers of regulation of the money supply, and the value thereof, from Congress and give it to an unelected member of the President’s cabinet. According to the act, this person would be above judicial review, and be allowed a $700,000,000,000 revolving line of credit to print money on behalf of the United States government. That is more power than anyone has ever had – anyone. Caesar did not have this power.
This should sound eerily familiar.
In March of 1933, after the “crisis” of the Reichstag Fire, newly named Chancellor of Germany, Adolf Hitler, petitioned the German Reichstag to give him plenary powers over the affairs of German government. The Reichstag transferred its power, on an emergency basis, to the Cabinet of Germany for a period of four years, and this was called “The Enabling Act”. This was to deal with the perceived “crisis” of Communists within the German government, when the “crisis” was never fully substantiated. It is believed by most historians that the Reichstag Fire was a deliberate act to coax the Reichstag into giving up its power.
That history did not end well.
You are being goaded into giving Henry Paulson plenary powers over the economy and government spending, money supply, and value of that money. Those powers belong to you, held in trust for the citizens of the United States. Our Founders gave you those powers TO PREVENT THE VERY SCENARIO THAT SECRETARY PAULSON HAS PRESENTED TO YOU.
You are being manipulated.
For the past 13 months, Paulson, and Federal Reserve Chairman, Bernanke have repeatedly given public statements through the various media, and have testified to Congress on the soundess of our banking system. As that time has worn on, they have repeatedly come to Congress for various bailouts (Bear Stearns, AIG, Fannie/Freddie), as well as acted to install confidence through the manipulation of the Federal Reserve Monetary Policy, and announcing various liquidity programs to keep money in the banking system (TAF, TSLF). While they have been taking extraordinary measures to shore-up the banking system, they have always maintained that the system is sound and just needs a little time to get through a “soft spot,” or a “contained” problem (Subprime).
You now know that they were lying the entire time. There is no way to sugar coat this. They have been lying to you since March of 2007. They are lying now. This was plainly known to many in the professional and amateur investment community, recently smeared as “short sellers.” It turns out that the cynics were right all along.
Ask yourself, why didn’t they come to you for this unprecedented bailout last October, when Paulson attempted the same thing with various Wall Street banks? Surely, the problem was known last fall when Paulson attempted to create his “super SIV.”
Had he come to you at that time, there would have been at least 11 months to debate the issue, open it for public review, and deal with it while the stock market was trading at an all-time high. Why did he wait until the weekend before the Congressional recess for the bi-annual election cycle, and present the plan over a weekend where the public could not comment? Why did he have to wait until the stock market teetered on collapse, and the credit markets were frozen solid?
He needs a “crisis” so you will not oppose him.
Ask yourself, why did the Senate Majority Leader and Speaker of the House, as late as September 16, attempt to leave the issue in Washington and head back to their districts, leaving the Administration to clean up the mess, then suddenly have a change of heart less than 36 hours later? What was said? Why are the details of the briefing given to Congressional leaders not available for public review? Why are you being asked to vote for something so hastily and without proper briefing or public review? Does Democracy flourish in the dark, or does tyranny and fraud?
We know the following:
-Paulson and Bernanke have lied for the duration of the credit crisis.
-Every bailout has been bigger, more frequent, and has resulted in a much bigger “crisis.”
Now, Paulson and Bernanke are telling you that they really are telling you the truth and this bailout will work.
You are being played.
They are framing the issue in terms of Congress voting to rescue the banks and the markets. Let me be clear on this point: YOU ARE NOT VOTING ON THE HEALTH OF THE BANKS OR THE MARKETS. YOU ARE DECIDING WHO GETS WHAT MONEY IS LEFT OVER AFTER THEY FAIL. The markets (equity and credit) are going to experience a large dislocation, or in the common lexicon, “a crash.” That is an absolute certainty. You are merely deciding if the US citizens are going to keep their money, or give it to Wall Street bankers. You are deciding if the US government is going to survive or collapse. Giving Paulson unlimited spending powers will ensure that the government collapses. That is a certainty.
Paulson and Bernanke need to be removed from office for malfeasance. For 18 months, the health of the banking system has been very suspect. They have known all along what is happening and have failed to act. Their actions have been limited to lying to Congress and the American people and manipulating the accounting to cover the insolvency of the US banking system.
You are being asked to abdicate. The American people want their Constitution and their government to survive. We will rebuild what Wall Street has destroyed, but we need to keep our money in order to do it.
Vote against this unprecedented power grab. History shows the folly of such endeavors.
Very truly yours,
//signed//
3 comments:
Hi Eleua,
I'm very worried that they'll pass this bill. I've already sent emails to Maria Cantwell and Jay Inslee.
I'd love to probe deeper into your thesis that Bernake and company have known all along and have been lying.
Didn't I recently read somewhere that they were quoted as saying "We don't know what to do?" Are they playing stupid on purpose?
Unfortunately, I can believe that. What a brilliant chess move that would be on their part.
Well, I must say that I am grateful to have had the opportunity to read your work.
I almost put out an Eleua bat symbol on the web on Friday.
Help us all out now and give us your insights as to what you think will happen between now and the election.
Thank you.
Jillayne,
It's worse than you think. About 6 months ago, I was predicting that the FED would reach the end of its rope in September. Sure enough, the noose is tightening and I am expecting a fatal tug on the second vertibrae any day now.
This bailout does NOTHING to help the homeowner, or the banking system. It is a naked power grab by the Wall Street bankers to sieze the remainder of US money by means of unlimited power of money printing.
The bill plainly tells of what they intend to do. The US taxpayer, and anyone who has their wealth denominated in dollars, is about to be handed over to Paulson and company.
The FED is bankrupt, as are the bulk of US banks. This was forseen months ago.
Did Paulson/Bernanke know it last fall? Most certainly. They were trying to get regulatory authority to create a "super SIV" (special investment vehicle) where all these toxic mortgages would have been dumped. He failed.
Note that Fanron/Fredron were taken under when there was little market stress. Why? By Sunday night of the FNM/FRE bailout, amateur investors had learned that Goldman Sachs (Paulson's old firm) stood to gain billions in CDS contracts from the triggering event of FNM/FRE getting taken under. The bagholder for those CDS' was AIG.
Public officials must disclose their financial holdings. This is a matter of pubic record, and certainly the Treasury Dept knew this. They also hold the IRS data.
Guess who got taken to the cleaners when AIG got bailed?
The Speaker of the House.
The timing is just too good. They got her attention, and we STILL do not know what was said to her on Thursday night. The details of the meeting are classified.
There is nothing in this bill that will kick-start lending. The assets will still be encumbered, and people will lack the disposable incomes to generate debt. For us to believe that if we give Wall Street every dime in the USA, they will promise to lend it to us is just complete folly and madness.
Let the old banks go under and create new ones with the money that will be left over.
If we give Wall Street the money, they will just hold it in Treasurys and the sky-high interest rates.
This does nothing that is promised. They had 18 months to fix it and they did not.
There is NO WAY that I knew more than Paulson and Bernanke.
Thanks for stopping by.
Sounds terrible
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