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A Call to Arms

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America, we have reached the point of no return! The government of the United States is about to embark on a course that will prove to be ruinous for our country. This morning, Congress is jubilantly announcing a tentative agreement on the Wall Street bailout plan. The plan, if approved this week by the full Congress and signed by the President, is a betrayal of the constitutional oath taken by our leaders. It is a violation of the public trust and an extreme abuse of the fiduciary responsibilities that each member of Congress and the President has to the American people. In short, any member of Congress who votes for the measure is guilty of treason and should be dealt with accordingly.

Why is voting for the plan a treasonable offense? One reason is because it gives enormous power to the Treasury Secretary, who is an unelected official. He will have power to buy deeply distressed mortgage-backed securities and other bad debts held by banks and investment firms with taxpayer money. This includes bad debts held by foreign banks that do business in the U.S. So essentially, by approving the plan the Congress will be handing over $700 billion of taxpayer money to an unelected official and an imperial president.

The whole thing reeks of fascism. In all of the debate over the bailout plan, no one (except Ron Paul) has questioned whether the move is constitutional. Congressional leaders are ignoring the will of the people where polls indicate that only thirty percent of Americans approve of the legislation. The Treasury Secretary and the President are being given extraordinary new powers to act as economic dictators. Through this plan the federal government  is again turning to public debt to stimulate the economy to presumably put us back on sound economic footing. As this government induced crisis worsens, Washington is acting more and more like Italy under Mussolini than America under Jefferson.

Without question, it is a government induced crisis. For nearly twenty years, Alan Greenspan as chairman of the Fed embarked on a policy of easy money – low interest rates and an expanding money supply. He became the parent who just couldn’t say no to the American people. His policies as Fed chairman led to the dot com bubble and bust in the late 90s. To stimulate the economy after 9/11 he lowered the federal funds rate to an unbelievable one percent! The rate stayed there for a year and was increased slowly for the next three years after that. Rates were low enough for a long enough period of time to cause severe misallocations in the economy. Thus, the housing bubble was born. Of course, it also took the absolute stupidity of many Americans to get into debts that they could not afford – a concept that seems to be an implied right of American citizenship which is expressed through laws like the Community Redevelopment Act. Lastly, by sprinkling in some fraud by lenders and borrowers alike you have the recipe for the disaster that looms over us today.

So, what do our esteemed leaders propose to get out of this mess?  They are proposing more of the same things that got us into this mess. Passing a $700 billion bailout package is easy money to the politicians and says to the stupid and fraudulent that any mistakes or criminal actions you may have committed will be remedied by the deep pockets of the American taxpayer. Congress will appropriate this money as if there will be no repercussions down the road. This sounds very familiar to the mindset of Fed governors when they lowered rates to one percent.

Congress is also being as stupid as those Americans who got themselves into debt that they couldn’t afford. The U.S. government doesn’t have $700 billion dollars to spend. Hell, it doesn’t have $10. It has $9 trillion in debt on the books with at least another $50 trillion in future obligations like Social Security. At some point soon, foreign countries will stop loaning the U.S. money. Our currency will become worthless and our standard of living will deteriorate. Yes, debt does matter whether you are a business, a family, or a huge government.

Lastly, fraud is a component part of our leaders’ proposal to get us out of this mess. We are being told that this “rescue” plan is for Main Street not Wall Street. We are being told that somehow putting up huge sums of taxpayer money to buy bad assets is the best answer to get out of the mess that deregulation of the financial industry caused. The lies go on and on. Make no mistake about it, the politicians will pass this plan to help their benefactors on Wall Street – those that have helped them get elected. It is a fraudulent use of taxpayer money.

If not the politicians plan than what should be done to remedy the crisis? Immediately, the government should cease intervening in the crisis. Let the market determine its own equilibrium. Former private assets like Fannie and Freddie should be liquidated. Government spending, especially military spending, should be reduced. The budget should be balanced, taxes cut and regulations on businesses eliminated. Any protectionist measures enacted by Uncle Sam should immediately be repealed.

In the area of foreign affairs, the U.S. should bring troops home from bases around the globe and stop riling up hostilities with Pakistan, Iran, North Korea, Russia, and Venezuela. These moves would free up funds to be used at home where they are needed and not on high-risk, no gain military adventures.

In conclusion, any member of Congress who votes for the bailout package is betraying their constitutional oath, violating the public trust and abusing their fiduciary responsibility to the American people. On November 4th they should be thrown out of office and not replaced with a clone from the other major party. Instead, minor party candidates should be elected to return our government to “We the People”. I urge all Americans to write letters to the editor, talk to community groups, friends and family, become involved in minor party candidate campaigns and vote your conscience. The vicious cycle perpetrated on us by the politicians in Washington must end. But it cannot end without the efforts of all of us.

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About Kenn Jacobine

  • Shannon

    Section 115. Graduated Authorization to Purchase.

    A(3) If, at any time after the certification in paragraph (2) has been made, the President transmits to the Congress a written report detailing the plan of the Secretary to exercise the authority under this paragraph, unless there is enacted, within 15 calendar days of such transmission, a joint resolution described in subsection (c), effective upon the expiration of such 15-day period, such authority shall be limited to $700,000,000,000 outstanding at one time.

    The spending is above 700 Billion…it’s infinite. They can only go in debt 700 billion. This program will be around a long time. They will borrow, sell, borrow more, sell, borrow more, and sell etc. etc.

  • Kenn, while I appreciate the sentiment of your second paragraph, you really never explain WHY this proposal is treasonous or even unconstitutional. The constitution grants the power of the purse to Congress and doesn’t restrict them from delegating that authority or deficit spending.


  • Eventually, when capitalists get to run the show unregulated, the country nearly goes to hell (like it did in the early 20th [Christian] century before the big monopolies were broken up) or it needs an economic dictator to pull it out of disaster (as happened in 1933, and appears to be happening now).

    Let’s all sing the praises of capitalism one last time – before we’re all corralled to sing “The Internationale” with Les Slater waving the baton….

    And let’s have Bronx cheer for Ronald Reagan and George Bush – both of them.

  • Kenn Jacobine


    Silly me, I forgot about the teachings of public schools and statist university professors. I assumed that everyone knows about Article 1 Section 8 of the Constitution which clearly specifies the only powers that Congress has. Any other actions are unconstitutional – like appropriating money to bail out its Wall Street buddies. The plan is also treasonous because it is fascistic which I go into in the third paragraph.


    Unfortunately, if you are referring to the Robber Barons of the late 19th Century, you are wrong that it was an era of pure capitalism. Many of those business owners used the power of the state to crush competition – a major tenet of pure capitalism. We didn’t have a central bank, though, and that was good.

  • bliffle

    Kenn demonstrates that no one has an idea of what the hell Pure Capitalism might be. Maybe it’s a contradiction in terms: capitalism is incapable of being pure.

    Capitalism, by enshrining greed, assures that whatever is required to accumulate wealth and power will be used by the tyro ‘capitalist’. Just as the Robber Barons used the 19th century state to achieve their aims because it was the tool available.

    The power-hungry will use whatever necessary, fascism, socialism, whatever is handy.

  • troll

    Immediately, the government should cease intervening in the crisis. Let the market determine its own equilibrium.

    be careful what you wish for…..hmmm – I wonder what capitalists’ heads on pikes futures are trading at

  • spinnikerca


    You said he didn’t point out why it is unconstitutional, I’ll point out a single way: our Constitution EXPRESSLY incorporates separation of powers as a protection from government and for the people. They cannot ‘delegate’ their ‘separation of powers’ away, Constitutionally.

    The Fed, not just this bill, is unconstitutional.

  • bliffle

    Now comes news that Wachovia is failing and being taken over by IIRC Citicorp.

    Need I point out that this is MORE of the same diet that is killing us? That these buyouts we’ve seen the past few days are mergers and acquisitions that we would not allow under ordinary circumstances?

    Oversize companies is the disease that is killing us, and here we have more growing under our noses.

    Regardless of what happens this week in DC the strong will grow stronger and the weak grow weaker. The rich get richer and the poor poorer.

    At the same time the financial masters will socialize their risks even more by expanding their monopoly.

  • Lisa Solod Warren

    If anyone is interested in reading the full text of the bailout plan here it is.

  • Lisa Solod Warren

    What a wonderful story. Required reading…. from This American Life. I heard about it but missed the broadcast….

  • Kenn,

    Capitalism is not about using private money to operate private firms – it’s about using private money to control public policy. The American central bank is just that – owned by private individuals and used to make public policy.

    Greed leads inevitably to bloodshed and starvation. It does not matter what suit it wears – state socialism, state communism, capitalism. So strong safeguards need to be in place to control an economic system based on greed. After the Depression, the United States had some of those safeguards. But the Reagan admininstration and those following it, took them away, and unrestrained greed has been running rampant in the American economy for years.

    Now there will be hell to pay – and there will be, as the Bible says, NO SAVIOR.

  • David

    Whether you are a student of American Government or not, the deal cut today by Congress and signed by the president leads us all to smell a rat.

    You dont need to be exposed to the outdoors to know danger the first time you hear a rattlesnake.