- Bailouts Of Freddie And Fannie
Will Bury Us Under Unpayable Debt
Exclusive to Rense.com
By Devvy
9-17-10
-
 "To preserve [the] independence
[of the people,] we must not let our rulers load us with perpetual debt.
We must make our election between economy and liberty, or profusion and
servitude. If we run into such debts as that we must be taxed in our meat
and in our drink, in our necessaries and our comforts, in our labors and
our amusements, for our callings and our creeds, as the people of England
are, our people, like them, must come to labor sixteen hours in the twenty-four,
give the earnings of fifteen of these to the government for their debts
and daily expenses, and the sixteenth being insufficient to afford us bread,
we must live, as they now do, on oatmeal and potatoes, have no time to
think, no means of calling the mismanagers to account, but be glad to obtain
subsistence by hiring ourselves to rivet their chains on the necks of our
fellow-sufferers." --Thomas Jefferson to Samuel Kercheval, 1816.
ME 15:39
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- The "Federal" National Mortgage Association
(Fannie Mae) and the "Federal" Home Mortgage Corporation (Freddie
Mac) are driving this country further into financial collapse. Since 1968,
those two entities have operated as gigantic rip-offs called "government
sponsored enterprises" or GSEs. Translated it means those companies
are privately owned and operated (just like the privately owned and operated
"Federal" Reserve Banking System). Freddie and Fannie have shareholders
who are financially protected by your wallet. The sweat of your labor.
The thieves in Congress gave them a line of credit which comes from the
fruits of your labor. Those two corrupt operations are exempt from state
and local income taxes and SEC oversight.
-
- Fannie was created under FDR's destructive "New
Deal". Because of the collapse of the housing market caused by the
deliberately engineered stock market crash which led to the "Great"
Depression, private lenders were hesitant to invest in home loans. Fannie
was birthed to illegally provide local banks with federal money to finance
home mortgages. The idea behind this criminal operation was to increase
home ownership.
-
- As Rob Alford wrote in an informative piece: "Initially,
Fannie Mae operated like a national savings and loan, allowing local banks
to charge low interest rates on mortgages for the benefit of the home buyer.
This lead to the development of what is now known as the secondary mortgage
market. Within the secondary mortgage market, companies such as Fannie
Mae are able to borrow money from foreign investors at low interest rates
because of the financial support that they receive from the U.S. Government.
It is this ability to borrow at low rates that allows Fannie Mae to provide
fixed interest rate mortgages with low down payments to home buyers. Fannie
Mae makes a profit from the difference between the interest rates homeowners
pay and foreign lenders charge.
-
- "For the first thirty years following its inception,
Fannie Mae held a veritable monopoly over the secondary mortgage market.
In 1968, due to fiscal pressures created by the Vietnam War, Lyndon B.
Johnson privatized Fannie Mae in order to remove it from the national budget.
At this point, Fannie Mae began operating as a GSE, generating profits
for stock holders while enjoying the benefits of exemption from taxation
and oversight as well as implied government backing. In order to prevent
any further monopolization of the market, a second GSE known as Freddie
Mac was created in 1970. Currently, Fannie Mae and Freddie Mac control
about 90 percent of the nation's secondary mortgage market.
-
- "GSEs such as Fannie Mae and Freddie Mae, with their
combination of private enterprise and public backing have experienced a
period of unprecedented financial growth over the past few decades. The
current assets of these two companies combine for a total that is 45 percent
greater than that of the nation's largest bank."
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- Nowhere in Art. 1, Section 8 of the U.S. Constitution
does it authorize the U.S. Congress to steal the fruits of your labor,
your children and grand children to fund "government sponsored enterprises."
Art. 1, Section 8 specifically enumerates only those areas where Congress
may legislate and it does not give any Congress the authority to steal
from you to give to someone else. Nor does the "general welfare"
clause of the U.S. Constitution, which has been used by both Republicans
and Democrats for decades to rob we the people blind to fund "government
sponsored entities". Instead of allowing a painful adjustment to the
free market, the federal government illegally stepped in and we now have
another nightmare dragging us into Hell. Well, the rooster has come home
to croak
-
- The takeover of two auto giants by the putative president
with the blessing of the Outlaw Congress was illegal. Just as the takeover
of Freddie and Fannie by the government is illegal. Does anyone care anymore
that your incumbent and mine, are literally operating as a criminal syndicate
ignoring the U.S. Constitution as nothing more than a prop when needed
during an election cycle?
-
- Well, you should care because we have passed the point
of no return. There is no recovery and there will be no recovery because
there are no jobs. You can thank the Outlaw Congresses over the past 15
years for NAFTA, CAFTA and GATT/WTO, which have ravaged our most important
job sectors (ag, manufacturing, industrial) and sent millions and millions
of jobs south of the border, to communist countries like China and South
America, while Americans stand in bread lines.
-
- My column in the last edition of the US~Observer gave
you the raw and painful facts about how private pension funds are trillions
in the hole and how we the people are being raped to back-stop them. The
same has been happening with Freddie and Fannie. $146 BILLION borrowed
dollars when the collapse happened. I say borrowed because the people's
treasury is overdrawn $13.3 TRILLION dollars as I write this column. Unfunded
liabilities that must be paid are the indentured servitude taxes: social
security, medicare and prescription pills (remember free prescription pills!!!)
to the tune of $110 TRILLION dollars (and counting) that doesn't exist.
That equals a debt to every single person in this country of $355,000.00.
-
- There is no money in the U.S. Treasury and our enemy,
communist China, has the power to rip the rug right out from under us thanks
to the decades of criminal spending by both parties in Congress.
-
- I call them outlaws because that's what they are - a
lawless entity whether Republican or Democrat. The U.S. Congress may as
well be called the Politburo. In early August 2010, Freddie Mac needed
another $1.5 BILLION dollars, which will have to be borrowed since the
treasury is empty. No, that's not the end of the looting. Those two operations
need about another $5 TRILLION dollars to meet liabilities. More borrowing,
more unpayable debt. The American people are dead broke and with the heavy
increase in taxes next year, the situation will deteriorate at a brisk
pace.
-
- Congress after Congress since 1913, with the blessing
of either a Democrat or Republican president, has run us into financial
ruin. The end is approaching because anyone who thinks or believes the
federal government can borrow its way out of those massive numbers is either
in denial or simply stupid. Americans blindly looked the other way when
all these massive monstrosities were foisted upon later generations. Now,
we are bankrupt and there is no turning back. As the Outlaw Congress continues
to destroy the free market, they, along with the usurper in the White House,
drive us closer to the abyss. No? Well, you are about to live through a
very painful time in our history.
-
- Like the illegal bail out of private pension funds, this
endless pit of debt from Freddie and Fannie can't go on and there is no
simple solution:
-
- "Fannie Mae and Freddie Mac have become gigantic
financial black holes that the U.S. government endlessly pours massive
quantities of money into. Unfortunately, if the U.S. government did allow
Fannie Mae and Freddie Mac to totally implode, both the mortgage industry
and the housing industry in the United States would completely collapse.
So essentially, the U.S. government finds itself between a rock and a hard
place. Prior to the financial crisis of the last few years, Fannie Mae
and Freddie Mac were profit-seeking private corporations that also had
a government-chartered mission of expanding home ownership in America.
But now that they have been officially taken over by the U.S. government,
they have become gigantic bottomless money pits. It is hard to even describe
just how much of a mess Fannie and Freddie are in. However, the unprecedented
intervention by Fannie Mae and Freddie Mac in the mortgage market over
the past couple of years has been about the only thing that has kept it
from plunging into absolute chaos." [1]
-
- So, illegally steal from the people to keep the mortgage
market from chaos? One hell of a mess, wouldn't you say? The crooks in
Congress who have allowed this to continue will never be held accountable
as in going to jail. Judicial Watch, one of the most effective government
watchdog groups in America is uncovering the fraud and players, but it
is a long process. [2] While a few honchos at Freddie were fired back in
2003, the collusion between members of the Outlaw Congress, sitting presidents,
Wall Street and those two entities is nothing but an incestuous relationship.
A relationship that cannot be sustained without the continued raping of
we the people, until we are consumed in debt and inflation.
-
- In 2011, another 1.65 million homes will go into foreclosure.
Another 20 million will go underwater with untold numbers of homeowners
simply walking away. The Outlaw Congress refuses to pass H.R. 4759 to get
the US out of NAFTA and bring hundreds of thousands of jobs home from south
of the border. The Outlaw Congress refuses to get us out of the GATT/WTO
which would bring home millions of jobs. Why? Because the major multi-national
(no longer American) companies buy the favors of the Outlaw Congress; they
are also afraid of commie China who they have to beg from to borrow more
debt.
-
- About 11.5 million jobs are now being held by criminals
(illegal aliens), while a whopping 42 million Americans are now on food
stamps. The real unemployment number is just shy of 26 MILLION, yet the
political animals in Congress bicker over protecting illegal aliens who
have stolen millions of jobs that belong to Americans, while the corrupt
Department of Justice sues the State of Arizona.
-
- If we had real constitutionalists serving in Congress,
the work of down-sizing the government and getting rid of all unconstitutional
cabinets like the Federal Department of Education and the EPA, along with
stopping all illegal foreign aid and abolishing illegal operations like
USAID that continue to rape we the people for hundreds of billions of dollars
that have to be borrowed, would become a reality. Unfortunately, too many
incumbents like John Boehner [R], Jim DeMint [R], Steny Hoyer [D], Carolyn
McCarthy [D] and so many others will get re-elected in November. Those
incumbents have never introduced the legislation to kill the cancers devouring
us. The Republicans had control of Congress for 14 years, 8 with a Republican
president. All we saw were more Band Aids and massive spending. When the
Democrats took control in January 2007, they simply accelerated the spending
spree, enslaving us and our children. There's an old saying: If you don't
get it before marriage, don't expect it afterwards.
-
- There's no way to sugar coat what is coming. I have been
an activist in the trenches full time for the past 20 years. Those of us
who have done the research, understand fiat currency and what happens when
a government spends itself into unpayable debt, have know this day was
coming. There has been a massive surge in raiding what's left of people's
401(k)s to buy food, pay bills and stall foreclosures. Good bye "old
age" nest egg. But, it's all worthless paper. I can only say that
those who do know what's coming are buying gold. When the Weinmar Republic
(Germany) collapsed in 1933, the people burned Reichmarks because it was
cheaper than wood.
-
- In order to stave off the inevitable, the "FED"
is about to do something called quantitative easing. That means more worthless
paper printed and pumped into the economy. The result will be more debt
for you, me, our children and grand children. What is QE?
-
- "A central bank does this by first crediting its
own account with money it has created ex nihilo ("out of nothing").
It then purchases financial assets, including government bonds and corporate
bonds, from banks and other financial institutions in a process referred
to as open market operations. The purchases, by way of account deposits,
give banks the excess reserves required for them to create new money by
the process of deposit multiplication from increased lending in the fractional
reserve banking system. The increase in the money supply thus stimulates
the economy. Risks include the policy being more effective than intended,
spurring hyperinflation, or the risk of not being effective enough, if
banks opt simply to pocket the additional cash in order to increase their
capital reserves in a climate of increasing defaults in their present loan
portfolio." [3]
-
- Of course, it will do nothing towards creating jobs.
Any bank that practices sound policy isn't going to lend to a borrower
who has no job or multiple bankruptcies. The backbone of America's employers,
small businesses, aren't hiring because they don't know what will come
out of Washington, DC next and the taxes from illegal "laws"
like Commie Care (Obama Care) are already causing layoffs. Americans aren't
spending because they are afraid of the future, which in turn, hurts local
economies. Prepare yourself, America. The worst is coming.
-
-
- [1] 5 Trillion More Dollars To Fix Fannie Mae And Freddie
Mac???
- --The Economic Collapse
-
-
- [2] Why is Washington Ignoring its Biggest Corruption
Scandal?
- --Tom Fitton
-
-
- [3] What is Quantitative Easing?
- --Business Insider
-
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- Devvy Kidd authored the booklets, Why A Bankrupt America
and Blind Loyalty; 2 million copies distributed. Devvy appears on radio
shows all over the country. She left the Republican Party in 1996 and has
been an independent voter ever since. Devvy is a constitutionalist who
believes in the supreme law of the land, not some political party. Visit
Devvy's website at: http://www.devvy.com.
You can also sign up for her free email alerts. Devvy's radio show broadcasts
Mon-Friday; for details go to Devvy's site.
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- ---
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- Visit Devvy's website at: http://www.devvy.com.
You can also sign up for her free email alerts. Devvy's radio show broadcasts
Mon-Fri, 3:00 pm PST, 5:00 pm CST and 6:00 pm EST. To listen, go to: http://www.renseradio.com/listenlive.htm
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