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Congressional Heat Goes On US Bailout Plan

Congressional Heat Goes On US Bailout Plan

LawFuel - The Law Jobs and News Wire

The bailout plan is not only foolish, says Ron Paul, it is downright sinister and anti-American

As disaster threatens the US financial system, time is running out and John McCain's call for a leadership summit is a bold plan, but it has run into some strong opposition from former presidential candidate,
libertarian and senator Ron Paul.

It is believed that Monday morning's opening of the markets represents a major deadline that, if breached without a deal from the Congress, could wreak worldwide havoc.

McCain's top aides said planning for the announcement began late Tuesday night, as McCain began to receive word that Bush's rescue plan was faltering in Congress, and as Democrats began to demand leadership from McCain.

In a statement from Ron Paul today, the senator bitterly opposed the bailout plan, calling it a "crime against the American people."

"Whenever a Great Bipartisan Consensus is announced, and a compliant media assures everyone that the wondrous actions of our wise leaders are being taken for our own good, you can know with absolute certainty that disaster is about to strike," the senator said.

"The events of the past week are no exception.

"The bailout package that is about to be rammed down Congress' throat is not just economically foolish. It is downright sinister. It makes a mockery of our Constitution, which our leaders should never again bother pretending is still in effect. It promises the American people a never-ending nightmare of ever-greater debt liabilities they will have to shoulder. Two weeks ago, financial analyst Jim Rogers said the bailout of Fannie Mae and Freddie Mac made America more communist than China! "This is welfare for the rich," he said. "This is socialism for the rich. It's bailing out the financiers, the banks, the Wall Streeters."

"That describes the current bailout package to a T. And we're being told it's unavoidable. The claim that the market caused all this is so staggeringly foolish that only politicians and the media could pretend to believe it. But that has become the conventional wisdom, with the desired result that those responsible for the credit bubble and its predictable consequences - predictable, that is, to those who understand sound, Austrian economics - are being let off the hook. The Federal Reserve System is actually positioning itself as the savior, rather than the culprit, in this mess!

"The Treasury Secretary is authorized to purchase up to $700 billion in mortgage-related assets at any one time. That means $700 billion is only the very beginning of what will hit us. Financial institutions are "designated as financial agents of the Government."

This is the New Deal to end all New Deals. Then there's this: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." Translation: the Secretary can buy up whatever junk debt he wants to, burden the American people with it, and be subject to no one in the process.

"There goes your country. Even some so-called free-market economists are calling all this "sadly necessary." Sad, yes," Dr Paul said.

www.LawFuel.co.nz is New Zealand's legal jobs newswire

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