Yesterday Congress passed a housing bailout bill by a vote of 272 to 152. Here is a typical MSM story about the bill from the LA Times that lauds the importance of these “sweeping measures” that will “stave off foreclosure for 400,000 or more homeowners,” and allow the Treasury to “bolster confidence in Fannie and Freddie” by allowing the government to “temporarily increase its lending” and “buy their stock.” Couched in these terms, it probably sounds good to most Americans.
But there is much that the typical MSM dispatch does not mention (for example, where will the money come from?). For the rest of the story, take 7 minutes to watch Dr. Paul’s video commentary on the bill, which made the front page of Digg in a screaming three hours. Dr. Paul discusses what else is in the bill, including:
* A provision to increase the national debt ceiling by $800 billion. This is something Congress has to do every few years, as spending is clearly out of control.
* While this bill is often referred to in the news as a “$25 billion” plan, the final amount will likely be much, much higher. The Treasury’s previously limited $2.5 billion line of credit to Fannie Mae / Freddie Mac, which in 2001 Ron Paul proposed be abolished, has instead been increased to unlimited. The Treasury can now buy an unlimited amount of Fannie / Freddie housing securities and stock. While this may help “bolster confidence” in these companies, as the LA times mentions, don’t expect it to do much for the dollar! Once upon a time, our national currency was backed by gold. More recently, it has been backed by US Treasury securities. Now it will be backed - at least in part - by Fannie Mae / Freddie Mac housing securities - securities that are collapsing on the open market because no one else wants them.
* In yet another example of persistent, big brother, big government, police state creep, anyone working in the mortgage industry will now be required to be fingerprinted.
* Finally, buried deep within the bill, and not mentioned in any MSM source that I am aware of, is the provision that every credit card transaction will now be reported to the IRS. How this fits in to the housing crisis is anyone’s guess.
This is just the briefest of summaries of what is contained in the video. Watch it for the fascinating inside scoop that you won’t hear anywhere else, and pass it along to those you care about. As Dr. Paul notes, our economy is in deep trouble - addicted to easy money brought about by the inflationary programs of the Fed and deficit spending. If we quit these policies, there will be some short term pain, but if not, we’re likely to kill the patient - in this case, the US Dollar.