This is getting to be worse than a bad drive-in horror movie. The villain not only refuses to die, but comes back in an even more hideous form. As if $700B for American financial toxic waste (yes, that's what it is called) wasn't enough, we now are going to pay for as much Chinese, Japanese, English, and Arabian toxic waste as they can shovel at us.
Don't believe me? Here is a copy of the bill that will be attached in the Senate on Wednesday. [Edit: The Senate Bill is here.]
Go to page 33 and read Section 112
SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL BANKS.Is this a great country, or what? We are going to buy all the US toxic debt and as much toxic debt the world's bankers can throw at a US subsidiary of their bank. We are going to fund the Communists and terrorists with AAA rated, US taxpayer backed governement bonds.
The Secretary shall coordinate, as appropriate, with foreign financial authorities and central banks to work toward the establishment of similar programs by such authorities and central banks. To the extent that such foreign financial authorities or banks hold troubled assets as a result of extending financing to financial institutions that have failed or defaulted on such financing, such troubled assets qualify for purchase under section 101.
I would like to thank Congressman Brad Sherman (D-San Bernardino) for getting this into the public dialogue. You can see the YOUTUBE of his time on CNBC where he discussed the matter.
Normally, foreign leaders don't take much interest in US spending legislation. I don't recall any foreign leader panting at the prospect of each of us getting a stimulus check, but they certainly have come out and supported this.
Now we know why. They want a huge slice of free government cheese.
If the Chinese sent their revenue collection agents to the US to shake you down for tens of thousands of dollars, we would shoot them where they stand. Thousands of Chinese tax agents would be lying in a pool of their own blood on American doorsteps. However, under this plan, US IRS agents would be shaking you down on behalf of the Chinese bankers that wrote bad loans on Chinese real estate.
You read that correctly.
THIS IS MADNESS! THIS HAS TO STOP AND STOP NOW!
The bought and paid for lapdogs in the US Senate will likely pass this because only 1/3 will have to face the voters this fall. Expect most of that 1/3 to vote against this and the bulk of the 2/3 that is not up for reelection to vote in favor.
Our battle is in the House - OUR HOUSE!
When the word gets out that Main Street America has to bailout Chinese high-finance, the US will be shaken to its core. The stock market is going to lose value, and it will happen with vigor once the rush has worn off of dim-bulb US equity investors. I fear for any politician that votes for this.
Bush and Paulson have sold us out. No matter how you slice this, it comes up rancid. The Administration was either asleep at the switch, intentionally lied to us, or holds us in such contempt as to enslave our children to Chinese bankers.
When asked by Congress if the Administration would accept a bill without the foreign toxic waste purchases, Paulson told the leaders of Congress that the bill would be vetoed if such a provision were not present.
So, we now know what happened in the past few weeks. Paulson got a margin call from China and Dubai. They waited until the elections were drawing near and held out their money from the US markets. The credit market froze and China said that we have to take their bad bets, or they quit funding our deficit ($2B/day - $200/mo for every man, woman, child). China's stock market has lost 2/3 of its value in the past year, and they need money. They sold us cheap plastic crap, and we sold them toxic mortgage paper. They want a refund.
They did this during the Fannie/Freddie bailout. Paulson said that foreign interests needed this bailout, as the NON GUARANTEED Fannie/Freddie bonds started dropping in value. That's why THE US TAXPAYER had to make good on NON GUARANTEED bonds purchased by China. Now you know why these bailouts never include you.
Economic terrorism - and we are not only negotiating with these terrorists, but giving in to their every demand.
Why? So Wal-Mart wil continue to "roll back prices?"
This has the potential to get extremely ugly. Call your Congressman and call him now. Explain section 112 and how you will not stand for US taxpayers paying for Chinese and Arabian high-finance gambits gone bad. You stood firm against bailing out American bankers. Now is the time to tell them that you will not stand for this treasonous bill that is before the Congress.
This will not help you get a mortgage, auto loan, college loan, or even help your paycheck clear. This will make all of those things harder to obtain. You are being asked to float the bill for the entire world's spending orgy.
Oppose this. Pray for your country. Call for impeachment. Pull the plug on China while we still can.
The following is a more detailed explanation by a friend of mine. Please take the time to learn more.