Posted by: rotenochsen | February 9, 2009

A BAIL OUT THAT YOUR GRANDCHILDREN WILL STILL BE PAYING FOR!

CONGRESS HAS THEIR OWN PONZI SCHEME

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Feb. 9th, 2009 | 12:04 pm

Monday, February 09, 2009

With Obama shaking his fist at Republicans for delaying his spendulus bill. It apparently has convinced three Republican Senators to back the behemoth “STIMULUS” Bill.
What the President and our elected princess and prince’s of the Senate are not telling you about the economic package that they will send to the Oval office is that the government has already committed hundred of billions of dollars to back door programs that when added to the billions that the Senate is passing, totals a commitment of
$9.7 trillion, enough to pay off more than 90 percent of the nation’s home mortgages. And I want to note that the spending bill will make this 13 times more than we have spent on the wars in Iraq and Afghanistan!

The Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation have lent or spent almost $3 trillion over the past two years and pledged to provide up to $5.7 trillion more if needed.

The $780 billion being pushed through the Senate, that President Barack Obama says is needed to avert a deeper recession Would need to be reconciled with an $819 billion plan the House approved last month.

Despite the fact that Obama campaigned on having an open government. Only the stimulus package to be approved this week, the $700 billion Troubled Asset Relief Program passed four months ago and $168 billion in tax cuts and rebates approved in 2008 have been voted on by lawmakers. The remaining $8 trillion in commitments are lending programs and guarantees, almost all under the authority of the Fed and the FDIC. The recipients’ names have not been disclosed.

“We’ve seen money go out the back door of this government unlike any time in the history of our country,” Senator Byron Dorgan, a North Dakota Democrat, said on the Senate floor Feb. 3. “Nobody knows what went out of the Federal Reserve Board, to whom and for what purpose. How much from the FDIC? How much from TARP? When? Why?”

The $9.7 trillion in pledges would be enough to send a $1,430 check to every man, woman and child alive in the world. It’s 13 times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office data, and is almost enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve. Source:CBO data

When Congress approved the TARP on Oct. 3, Fed Chairman Ben S. Bernanke and then Treasury Secretary Henry Paulson acknowledged the need for transparency and oversight. The Federal Reserve so far is refusing to disclose loan recipients or reveal the collateral they are taking in return. Collateral is an asset pledged by a borrower in the event a loan payment isn’t made. In my opinion this is where the PONZI scheme comes in!

“Ponzi” Schemes
Ponzi schemes are a type of illegal pyramid scheme named for Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. Ponzi thought he could take advantage of differences between U.S. and foreign currencies used to buy and sell international mail coupons. Ponzi told investors that he could provide a 40% return in just 90 days compared with 5% for bank savings accounts. Ponzi was deluged with funds from investors, taking in $1 million during one three-hour period—and this was 1921! Though a few early investors were paid off to make the scheme look legitimate, an investigation found that Ponzi had only purchased about $30 worth of the international mail coupons.

Decades later, the Ponzi scheme continues to work on the “rob-Peter-to-pay-Paul” principle, as money from new investors is used to pay off earlier investors until the whole scheme collapses. Unfortunately the “investor in this PONZI is the taxpayers ,alive and yet to be born! Peter and Paul are Mr, and Mrs. taxpayer!
Source:http://www.sec.gov/answers/ponzi.htm
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