Ron Paul on the bailout and overall financial crisis. Well worth a listen.
The federal government is mismanaging the current financial crisis. Operating according to long-established patterns of bureaucratic bullheadedness, Congress and the President are borrowing money in the hopes of solving a problem caused by too much borrowing. They are extending more credit to institutions in financial ruin precisely because of too much credit. Though the federal government is awash in debt — to the tune of more than $10 trillion — politicians just this year have passed legislation authorizing more than $1.5 trillion in additional debt. American’s trust in government is at an all-time low, and well it should be. Unless the Washington paradigm of borrow and spend, borrow and loan, and then borrow some more is stopped soon, a financial catastrophe may ensue. Each cycle of borrow and spend will only make the inevitable collapse worse. We must stop the madness now.
Men as politically diverse as Warren Buffet and George Soros have proposed solutions making much more sense, and costing far less, than anything Washington insiders have proposed. But our political leaders raced to cobble together an incredible package marked by central control and lack of accountability. If this infusion of $700 billion fails to solve the financial crisis, politicians will say, “It would have been much worse if we had done nothing,” a dodge impossible to disprove and justifying any action imaginable. The politicians will retire rich and average Americans will be left holding the bag. There is a better way.
Americans must regain control of the levers of political power in America, and we have the legal means to do just that. Here’s one idea. Beginning as soon as possible, citizens should begin withdrawing as much money as possible from banks and other financial institutions. Checking, savings, and money market accounts can be drained immediately, leaving just enough money in them to pay bills. As CD’s mature, pull the money out. IRAs and 401ks can be liquidated without penalty by utilizing the IRS code’s 72(t) provision. Put the money under your mattress or in a coffee can in the backyard. Don’t worry, it will not be there long. Massive runs on all major banks will force our inept and corrupt leaders to listen to the following demands. We’ll put the money back if and when:
** The bailout legislation is rescinded.
** Franklin Raines and other Fannie Mae and Freddie Mac executives are stripped of their illegally gotten bonuses and are tried in Federal Court as was Kenneth Lay.
** Senator Chris Dodd and Representative Barney Frank — and any other culpable Senators and Representatives — resign from their respective offices.
These conditions are merely the first step in reestablishing a government of, by, and for the people. Much more needs to be done, but once we demonstrate the power of the people, government will become responsive to our views and concerns, or else. We can abolish the open cesspool of special interest lobbyists corrupting legislators day and night. We can put an end to the arrogant wastefulness of Washington fat cats. We can reform our government. Writing letters and making phone calls is not enough. 74% of Americans opposed the bailout, to no avail. We have to take drastic action before it’s too late.
Average Americans have stood idly by for too long. There are no painless solutions to the mess Washington has created, but one thing is for sure: the current crop of politicians cannot be trusted to fix the problem they created. We the people must send Washington politicians a message they cannot ignore, and a run on all banks will do just that. Sure it’s risky, but doing nothing is riskier still. Together we can stop the madness.
It’s high time for a citizen revolt. We can remake government into what the Founders intended, citizen politicians acting in the best interests of the American people. Or, we can put our heads where the sun never shines, allow money-hungry politicians and financial gurus to make things worse, and wait for the inevitable collapse. It’s time to take to the streets and drain the banks!
Posted by Jerry Pomeroy in Budgets, Current Affairs, Economics, Government Blunders, Video