"The most significant threat to our national security is our debt," Admiral Michael Mullen, Chairman, Joint Chiefs of Staff, August 27,2010

Wednesday, December 30, 2009

This Government is Lying

How do I lie to thee? Let me count the ways.
Well, I can outright lie or I can tell a partial truth
or a partial lie or I can just not say something
that I should say because it is too important to not say.

I can deceive, deflect and divert.
I can make you look away while I barely say something
I should be emphasizing.
I can tell you something in a way
that makes it appear to be exactly what it is not.
I can tell you something in such a way that you would need
to be Sherlock Holmes and Albert Einstein to get at the real facts.
I can draw your attention to other situations and downplay the really important ones.
Or I can just reveal something in the dark of night when all are asleep
and hope that no one bothers to examine it in the light of day.
How can I lie to thee? All of these ways and a thousand more.
Oh believe me am I good at it.

What am I? Who am I? Where am I?
I am everywhere.
I am your government.
I am your president.
I am your senator.
I am your congressman.
I am your bureaucrat.
I am everywhere. I am nowhere.
I am a liar.
And I am good at it.

The USTreasury Department announced on Christmas Eve, when normal people are wrapping gifts and making meal preparations for family and friends, that it would provide an open ended, unlimited amount of funding capability to FNMA and FHLMC, otherwise known as Fannie Mae and Freddie Mac. These two entities are now wholly owned, entirely dependent borrowing/lending mortgage companies of your federal government. Without the Treasury support these entities would fail and bankruptcy would ensue. Without the federal support of these entities there would be virtually no home mortgage lending market in the United States. Just think of that situation. After hundreds of billions of dollars of wasted federal spending propping up everything from the aged senator from West Virginia to the welfare states of Michigan and California to two failed automobile companies (that statement is not quite true; the spending was mostly directed to the failed leadership of the United Automobile Workers) to bailing out the horrific Democratic Party leadership in the states of New York and Illinois and the indescribable meathead leadership of the body builder from Austria and his California public sector union loving Democratic Party apparatchiks, there is no independent residential home mortgage lending capability in the United States of America. Why is that you ask? Because the corruption of the leadership in the white house, federal reserve and the congress for the last 20 years coupled with the thievery of the boards of FNMA and FHLMC and the party apparatchiks they put in executive positions with salaries, bonuses and stock option at Wall Street levels, have destroyed the confidence of investors around the world in US home mortgages and related products. So, the USTreasury now is the American home lender. And, that situation is going to be with us for a long, long time. When was the last time that the boy president, (el presidente NiƱo for our Spanish readers) had a chat with us about this situation? By the way, what exactly is your house worth?

The prior issue could well bankrupt the country. Here is how you solve this issue going forward. A simple piece of legislation that requires all debt, all securities, all notes and claims, all liabilities issued by any entity, person, corporation or government agency/authority to carry, on every page of every document, at the very top and the very bottom, in bold face type at least twice the size of any font used elsewhere on the page, the following sentence, “This obligation is not and will not be guaranteed by the United States of America.” Then, of course, the people need to elect officials who can understand that simple sentence and will actually enforce it. In the meantime, hunker down for a long cold winter.

1 comment:

NDDillon said...

Owning ones home is the professed American dream and has been so since the end of the Great War. We now have a situation in which housing prices have fallen substantially. In truth, the housing market is in shambles. Lenders are filing foreclosure cases at record levels. Does it make any sense to eliminate liquidity in the marketplace? The idea that banks will fund mortgages is folly. The only alternative is funding FNMA and FKLMC or facing is a deep and harsh depression.