Ok, so first after creating the economic mess we are in by promoting easy credit and universal housing via Clinton's changes in 1993 to the Community Reinvestment Act of 1977, (which resulted in the softening of banking and lending rules) and a host of other bad monetary policies since then, stimulus and bailout packages are promoted by the Bush and Obama Administrations.
The brains up in Washington DC decide to create a spending bill so large and so voluminous that no one could possibly read through it in any coherent manner or to even begin to understand what was in it before they voted to pass it. They only knew that they were told that it was urgent and necessary and had to be passed quickly.
An amendment is added in by that genius Chairman of the Banking Committee, and Countrywide sweetheart mortgage deal holder, Senator Chris Dodd, apparently at the behest of the Obama Administration, to protect and exempt bonuses of the AIG executives who have contracts for those bonuses before February 11, 2009. Mind you, Mr. Obama and Mr. Dodd both received lots of dough in campaign donations from AIG.
After passage of this ginormous spending bill which will be paid for by our children and their children, Mr. Obama signs it amid much fanfare, because of course it will save the nation from a "crisis". What a guy!
AIG ends up getting a tidy sum of multi-billions in bailout money and TaDah! The company that is too big to fail is saved from a horrible fate of bankruptcy. We are saved! (NOT)
And then of course Bonuses from AIG are paid out to the tune of $165 million dollars (give or take a million).
And oh my goodness, the public is outraged, legislators are outraged, the President is outraged, and everyone else who can be outraged is outraged. The CEO of AIG is given a verbal tongue lashing in a Congressional hearing and Barney Frank and his pals get to show their constituents how they are protecting the taxpayer because they get to do a lot of blaming and blustering and make demands that the bonuses be returned - Or else. Barney even wants to take names.
Aha - but We The People also begin to see that this was really all the fault of the insane Senator Dodd who turns around and tries to lay blame on the President, or Turbo Tax Tim Geithner, or Mr. Dodd's staffers or the janitor, or whoever else is around to take the blame for allowing hefty AIG bonuses on the taxpayers dime. But wait - then Mr. Obama uses this to create a Harry S. Truman "The Buck Stops Here" moment (because he wants to look ever so presidential) and he claims responsibility for it all. What a guy!
Despite the $165 million in bonuses, what about the billions more that were spent and continue to be spent by the Obama administration... (oh shut up and fuhgettaboutit! focus on those greedy AIG guys instead)
The Congress then decides to make even more unconstitutional legislation by taxing these bonuses at 90% (for those executives who have decided not to return it to AIG) and guess what? The AIG bailout money can be returned to the treasury for use on some other dopey spending programs that Congress will cook up. Wow! (as of this post only the House passed the 90% tax proposal, it awaits "cooler heads" in the Senate - wink wink)
I hope that I am not alone in seeing this as some sort of "Kafkaesque" version of the US Government that we all once knew... I should hope that at least someone would bring up the plain fact that what Congress is doing is not only insane - and unbelievably not well thought out - but it is also entirely unconstitutional. (Yeah - remember that old outdated document that our troops fight and die for to protect and uphold, and our elected officials take an oath to protect and defend?)
In a Bloomberg report:
Senator Judd Gregg, a New Hampshire Republican, predicted Congress’s efforts to rescind the bonuses through higher taxes would be thrown out in court. He said the legislation violates the constitutional ban on bills of attainder, which restricts lawmakers’ ability to punish individual Americans.Well, at least one other legislator in Washington D.C. besides Ron Paul understands the law.
“It’s basically targeted on a small group of people,” Gregg said. He also said the bill may exceed lawmakers’ power to rewrite existing contracts. He said “of course” the government ought to try to rescind the bonuses “but we’ve got to do it legally.”
One has got to ask - what in heavens name are these people in Congress drinking or smoking? There is no other explanation for their actions and the intentional destruction of our economy then collective insanity.
Meanwhile - back at the Fed - they are monetizing our debt (i.e. printing money out of thin air to pay the bills) to the tune of $300 billion dollars because no one else is buying our debt, not even China. The dollar begins to fall and lots of talk is circulating by other countries as part of the G20 Summit to create a world currency (so they can rid themselves of the dollar that will invariably crash and burn due to insane monetary policy coming out of Washington)
Yup - it's insanity - or complete idiocy - or a planned destruction of our sovereignty and our economy. Whatever it is, it isn't good.