“The Mother of All Bail Outs”
The housing bill, which passed with an overwhelming 272 – 152 vote, is only half-jokingly referred to by Ron Paul as “the Mother of All Bail Outs.”
The bill originally entailed $300 billion in appropriations. That was later changed, however, to $25 billion. “But that’s just talk,” Congressman Paul reminds us, because as it stands right now, there is no limit to the amount of money to be spent on the U.S. housing bail out.
The Federal Government has always had a line of credit to bail out Freddie Mac and Fannie Mae. That line of credit used to be $2.5 billion. NOW, however, the treasury will be allowed to buy housing securities at will – with an unlimited amount of credit from the Federal Government…
There may be a clue buried in the 600-page bill, however, as the national debt was moved up to $800 billion, which indicates that LOTS of money is planned on being spent.
In a near psychic move, Ron Paul introduced legislation in 2001 in the form of an amendment that would have removed this $2.5 billion line of credit, because he felt it encouraged more hazard; people were willing to take more risks because they knew the U.S. taxpayers would simply bail out their bad mortgages.
It didn’t pass, and now this $2.5 billion line of credit has ballooned into potentially HUNDREDS OF BILLIONS of dollars.
Do You Know What Rare Treasures Back Up the U.S. Dollar Now?
What’s worse, treasury bills are being exchanged for Fannie Mae and Freddie Mac housing mortgage securities.
What does that mean to you, and to the United States?
It means that mortgage securities are now the assets that are backing up the U.S. currency!
Which, as Ron Paul points out, is an asset that nobody else wants… and which is losing value with every breath you take.
But that’s not all that this bill ushers in.
Are You Ready For Big Brother?
Quietly slipped into the bill were yet other stipulations that add more regulations, and more surveillance and reporting on the personal business of private citizens, such as:
- Anybody who works in the mortgage industry must now be fingerprinted. As Ron Paul points out, the housing bubble did not occur because there was a lack of fingerprinting of mortgage brokers. The crisis was caused by legislation that encouraged predatory lending practices, as well as the Federal Reserve giving out artificial interest rates and an expanded money supply.
- Even worse -- and completely unrelated to the mortgage crisis -- ALL your credit card transactions will now be reported to the IRS, most likely in an effort to collect more money through increased surveillance and tallying of everything you sell or buy on credit, and the payments you make.
Like a drug addict, always looking for the next quick fix, the U.S. economy is addicted to easy money, inflationary programs of the Federal Reserve, and deficit financing.
“If we quit, there will be pain,” says Congressman Ron Paul, “but if we don’t, we’ll kill the patient; in this case, the dollar.”
Unfortunately, the passing of this “Mother of All Bail Outs” bill indicates there’s no sign that the U.S. is about to tighten its belt and live within its means.