Bernanke stated in the "Sixty Minutes" interview that the large banks have been successful in raising private capital.The private capital that has been raised by the large banks has been with a government or taxpayers' guarantee.So, any private capital coming into the banking system comes with a Treasury or taxpayers' guarantee.Everything in Obama's stimulus and recovery program is based on spending, spending, and more spending. The spending comes in the form of a dribble of $700 billion here, $750 billion dollars there, another $750 billion dribble, and on an on. All of the appropriations and spending are approved at just below the trillion dollar mark, so as not to alarm the taxpayers.However, the effect is the spending of trillions and trillions of dollars of taxpayers' money.
Barack Obama's administration's has been approved to use the remaining $350 billion in the $700 billion bailout program that Congress passed on Oct. 3 to shore up the banks.That money will be combined with money from the Federal Reserve and the Treasury to send more than $3 trillion of taxpayers money through the banking system.
In addition, another $1 trillion will be spent by the Federal Reserve and Treasury to support consumer credit card debt. student loans, and more loans for commercial real estate lending.
Yet, another $1 trillion dollars of taxpayers dollars will be spent to support a program to buy "bad assets", from the nation's largest banks, and place them in a "bad assets bank".The "bad assets are now called "legacy assets".However, a bad asset by any other name is still a bad asset.
The bad assets bank will be called a "public-private partnership", which the U. S. Treasury will fund with a capital injection of $100 billion.The F.D.I.C. will loan the bad assets bank, which will be called a "public -private partnership", six times that amount, or $600 billion dollars.The Federal Reserve will, in turn, loan the bad assets bank or "public-private partnership" $1 trillion dollars.
Barack Obama,Timothy Geithner at the Treasury Department, Sheila Bair at the F.D.I.C., and Ben Bernanke at the Federal Reserve are about to place $1 trillion, $700 billion dollars ($1,700,000.000) of your tax dollars into a "bad assets bank to purchase toxic assets, consisting of non performing mortgage backed securities.
Those troubled financial institutions have already received hundreds of billions of dollars of taxpayers' dollars in the first bailout. In the latest bailout scheme, the new President and new Congress will give permission to the Treasury, F.D.I.C., and the Federal Reserve to fund the "bad assets bank ".The Federal Reserve, F.D.I.C., and Treasury will serve as the workout and recovery agent for all of those bad loans.In the meantime, taxpayers' funds will be tied up in a no-win scheme to save financial institutions which should have been allowed to fail. The misplaced opportunity costs of this financial bailout of bad banks and their managements will be borne by future generations of Americans.
Geithner took over where his predecessor, Treasury Secretary Paulson left off. It is now Geithner, joined by Bernanke at the Federal; Reserve and Bair at the FDIC, who are holding the band-aids over the leaks in the ship Titanic.Like Paulson, they now are running from hole to hole in the ship and taping up the holes with band-aids.As the band-aids break and water gushes through, the American ship Titanic continues to take on more and more water. The American ship, Titanic, will even eventually sink completely under the sea of debt, spending and borrowing.
You as taxpayers are expected to go about your normal duties on the sinking boat, without thought to all of the water that is coming into the boat.As the ship continues to take on water, you continue to work, going about your every day duties. You are so busy working, that you do not notice the ship has taken on too much water. You, as taxpayers, will not realize that you are working, and living on a sinking ship, until it is too late.
The ship, on which you have lived and worked all of your life, is sinking into the deep dark waters of too much spending, too much borrowing, and too much debt.
In the meantime, the foolish passengers upon the upper deck, who will blindly follow their incompetent captain to their deaths, are busy dining, dancing and enjoying themselves.The ship is taking on more water but they choose to ignore the water that is soaking their ballgowns and tuxedos. They busy themselves by giving out awards and bestowing prizes on themselves as being the "100 most influential persons in America".
Such awards nourish the powerful egos of those Obama worshippers.Time Magazine and Newsweek Magazine keep the deluded passengers, on the Titanic America, entertained with pictures of themselves. The pictures show the passengers absurdly entertaining each other, until the ship is finally inundated with the sinking cold water of the deep.
You, the American citizens and taxpayers need to stop what you doing, for a while, and assess the condition of your ship. Because if you don't, all that you are doing, and working and saving for, will not matter. The ship has taken on so much water that there is only one way for it to go and that is down.The ship is sinking and those who have tried to patch up the holes have utterly deceived you, the passengers, the citizens and taxpayers, about the true condition of your ship.
Obama and his Treasury Secretary Geithner have indicated that a second stimulus will be needed as well as another financial rescue bailout, greater than the first $700 billion bailout last October 2008, and the $787 billion stimulus bill passed in February.
As mentioned previously, hundreds of billions of dollars here, hundreds of billions of dollars there, a trillion dollars here, a trillion dollars there, trillions and trillions of dollars of American taxpayers' debt laid on the shoulders of this generation and the next.Where and when will the trillions of dollars of reckless spending end? This does not include the interest on the debt, which the Treasury and Federal Reserve will have to borrow to fund the spending.The Federal Reserve will simply print money and monetize the debt. The Treasury will not have the funds. Neither will funds be available from foreign sources.Round and round the dizzying wheel of trillions of dollars in spending and debt goes, where it stops nobody knows.
In response to the out of control spending by Congress and President Barack Hussein Obama, Congress will vote to continue to increase the debt ceiling by billions of dollars each year, as the buget deficit continues to grow.
You should contact your Congress and tell them to stop raising the debt ceiling. If it means curtailing government programs in Washington, so be it. There are a number of Federal government agencies that can be shut down and eliminated. The only Federal government agencies that are needed are the U.S. Treasury, Social Security, which administers Social Security and Medicare, Health and Welfare which manages the national health, the Interior Department which manages the national parks, the Defense Department, State Department, the CIA and FBI. These are the eight agencies which are necessary to run the government. The remaining "upteen" Federal agencies should be closed down or eliminated. This action by Congress could close the Federal budget deficit, and eliminate the need to raise the debt ceiling.
If you don't hear the music playing "Nearer my God to thee", you should hear the violins playing and the band playing as the ship begins its final leg of sinking into the financial black abyss.This is where the captain of the ship, Barack Obama, and those who preceded him, have led America. The ship is taking on water, and is sinking in trillions and trillions and trillions of dollars in debt, and a devalued currency. There is no ship big enough to come to the rescue of America.The other ships can only stand by in distant water, and watch the great Titanic America sink. This includes the ships of Britain, and ships of the countries of the European
Union, which are moving in troubled waters. Britain has become a beggar nation, begging other nations to "globalize" in order to save the British Pound and the monarchy.
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