In recent days, undoubtedly in response to the outcry of the American people, the Senate Republican leader Mitch McConnell of Kentucky has changed his tune, from first making it clear that the Obama “stimulus” bill will pass the Congress by a mid-February timeline desired by the Democrats, to then suggesting that it may not pass at all, to now suggesting new ideas that will make it “better.” One of these “Republican” ideas indeed is to have the federal government reduce some troubled homeowners’ mortgage interest rates, from whatever they negotiated in the first place to 4%, which naturally is just another form of redistributing wealth.  

Here is the relevant perspective of Derry Brownfield, a farmer, businessman, and radio personality who is on target in calling these bailouts and “stimulus” bills for what in fact they are: sellouts of the American middle class, and ultimately of the welfare of our own, American sovereignty, for the benefit of the few who have been too cavalier with risk. In fact, as documented elsewhere, government has inspired such behavior in the past, if not outright mandated it, as in the example of Congress putting pressure on banks to provide more home loans to minorities and other persons who did not have a decent chance ever of maintaining their payments. Now that the artificially created housing bubble has burst, the government wants to pursue more indebtedness, which we all know to be a tax on the American middle class most especially, in order to try somehow to recreate that bubble – not in pursuit of our national interest, but in submission to the interests of global bankers and others who have no loyalty whatsoever to our national and economic welfare. What is most disagreeable perhaps is the extent to which many Republican politicians are more or less in agreement with the overall objective: they offer changes here or there, and work to get rid of the most egregious examples of waste, but for the most part acknowledge the propriety of having big government try to recreate the bubble by playing favorites in the housing and financial markets.

Hands Out for the Bailout, by Derry Brownfield

Everybody wants in on the act. The banks, the auto industry, even foreign banks think Uncle Sam’s money must grow on a tree somewhere on federal lands here in the U.S. It’s like writing a letter to Santa Claus and waiting for stockings to be filled. $700 billion to the “Troubled Asset Relief Program,” $200 billion to “Fannie Mae and Freddie Mac,” $29 billion to “Bear Stearns,” $123 billion for “AIG,” $300 billion for the “Federal Housing Administration Rescue Bill,” $87 billion for “JP Morgan Chase” for financing bad trades made by Lehman Brothers, the Big Three Auto Manufacturers have their hands out, and what about those poor bankers around the world?

We should give or loan the Central Banks of Canada, England, Japan, Denmark, Europe, Norway, Australia, Sweden, Switzerland, Brazil, Mexico, South Korea and Singapore a total of about $750 billion dollars. As I have stated many times, I was one of those unfortunate farmers back in the l980’s that couldn’t pay 20% interest on our farm loans. Farmers who had borrowed more money than their total assets were worth were foreclosed upon and the COMMITTEE FOR ECONOMIC DEVELOPMENT (CED) said: “this is a good thing.” The CED wrote a Statement on National Agricultural Policy in 1956, saying there were too many farmers and the inefficient ones should be eliminated. The policy statement said: “The movement of people from farms is important to the industrial sectors of the economy as well as to agriculture.” No bailout policy for financially strapped farmers was even considered.

Based on that philosophy, there are already too many banks and these inefficient banks should be allowed to fail, but this isn’t going to happen. Our government through the actions of the Federal Reserve will keep printing fiat dollars, and using the money to bail out failing banks, corporations, or even home owners, until the entire nation fails, due to our “debt money system.”

Unlike our Federal Government, if I personally had the money to bail out a failing corporation or any business that has allowed its executives to do stupid things and make stupid mistakes, I would call a meeting of the shareholders and let them know that if they want this bail-out they must fire those who have allowed the company to get into the financial mess. Oliver Cromwell was an English political leader, who in the 1600’s once told a group: “You have sat here too long for any good you have been doing. Depart, I say, and let us have done with you. In the name of God, go!” They should “GO” without their last month’s salary and get NO benefits for leaving. But, that isn’t the way it works in this modern global society run by socialist politicians. AIG was in the process of receiving $123 billion in handouts and decided to use some of the money to have a BIG party. Public pressure was so great that when it was time to hold another junket the entire staff went incognito. According to reporters for abc15.com (KNXV) “while the company was pleading the federal government for another $40 billion dollars in loans, AIG top executives held a secret gathering at a luxury resort in Phoenix. Reporters photographed the AIG executives on hidden cameras at the Pointe Hilton Squaw Peak Resort, despite apparent efforts by the company to disguise its involvement. AIG made significant efforts to disguise the conference, making sure there were no AIG logos or signs anywhere on the property.”

Even as Chrysler cuts thousands of jobs and seeks federal aid to survive, the company still plans to pay about $30 million in retention bonuses to keep about 40 top executives. The Detroit Free Press reported that at least six Chrysler executives are due to receive bonuses of more than $1 million each to stay through August 2009. The bonus plan includes $1.89 million for manufacturing chief Frank Ewasyshyn, $1.8 million for product development chief Frank Klegon and $l.63 million for Steven Landry, executive vice-president of North American sales. Would tar and feathers be in order, or would handcuffs and jail cells be more appropriate?

You and I as US citizens and taxpayers are not even supposed to know how this money is being used. November 10th, Bloomberg News reported; “The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral. Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn’t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.”

The fox is in the chicken coop, and our Federal Reserve bankers put him there. The man who was in charge of “risk” at Bear Stearns has been hired by the Federal Reserve Bank of New York to “SUPERVISE THE FINANCIAL SAFETY AND SOUNDNESS OF U.S. BANKS.” Michael Alix is now Vice President in the bank supervision group of the New York FED. He spent 12 years working at Bear Stearns, ten of which he was head of “worldwide risk management.” He was named “chief risk officer” in 2006 and held the job when the government helped rescue the bank. This can be compared to a college football coach that never had a winning season, becoming head coach for the Green Bay Packers!