Saturday, July 4, 2009

More Fraud and illegal act by Dems

Money flowing back goes to slush fund
Recycled by Treasury into new loans instead of retiring debt

By Nick Rizzuto | Thursday, July 2, 2009

On June 9 President Obama called a press conference where he announced, "Several financial institutions are set to pay back $68 billion to taxpayers."

He said, "It's worth noting that in the first round of repayments from these companies the government has actually turned a profit." The moment was hailed as a policy triumph for the Obama administration, and a sure sign the economy was on the road to recovery.

While Mr. Obama's announcement came as welcomed news, few questioned what would become of the returning funds, as it was rightly assumed that any money or profit would be returned to the general funds from whence it had come in order to pay down the debt. The truth, however, is that the money returned by the banks is finding new life as part of what amounts to a Treasury Department-controlled slush fund.

Former Treasury Secretary Henry M. Paulson Jr. had said of the Troubled Asset Relief Program that the Treasury Department "has no plans to recycle funds from the $700 billion Wall Street rescue package to make more capital injections into financial institutions." Mr. Paulson's position, however, runs in direct contradiction to that of current Treasury Secretary Timothy F. Geithner, who has announced the department will use returned funds to provide aid and loans to small banks. In the end, it seems Mr. Geithner's vision for the returning funds will win out over Mr. Paulson's, and the money will be used to supply smaller banks with cheap loans.

Congressional Democrats have quickly run to defend the practice of TARP fund recycling, and even encourage it. Massachusetts Rep. Barney Frank, chairman of the House Financial Services Committee, was quoted as saying, "I'd like to get it back into Treasury and into debt reduction." He continued, "On the other hand, there was a delay in getting some of the money to community banks, and that's where it could do us the most good."

This is not only an unethical use of taxpayer money; it is also a violation of the legislation that allowed the Treasury the ability to lend it in the first place. The TARP law states, "Revenues of, and proceeds from the sale of troubled assets purchased under this Act, or from the sale, exercise, or surrender of warrants or senior debt instruments acquired under section 113 shall be paid into the general fund of the Treasury for reduction of the public debt." The law allows very little wiggle room for returning cash to be redistributed. The Obama administration is clearly breaking the law.

A handful of fiscal conservatives have sounded the alarm. A bipartisan group led by Utah Republican Sen. Orrin G. Hatch and Arkansas Democratic Sen. Blanche Lincoln have attempted to introduce legislation to prevent the TARP recycling, but, to date, their efforts have been unsuccessful.

The U.S. Treasury Department is now effectively turning itself into a lending institution, and it's doing so without the benefit of the law. Whereas TARP was originally intended to be a temporary emergency measure to prevent the systematic failure of the American banking system, it seems it is now becoming more of a permanent fixture of the Treasury Department.

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Friday, July 3, 2009

Obama Girls Off To London For Fish & Chips

Michelle Takes Girls To
London For Fish & Chips

Truly change we can believe in --- or as was said during the campaign,

"We are the 'change' you have been waiting for."

Imagine this - and when do we get totally fed up?

A Boeing 757 and a fleet of armored cars for Michelle's sight seeing tour!

Michelle One

On Sunday, President Obama flew back to the United States on Air Force One. His wife, two daughters and her mother did a bit of shopping in Paris before taking their own Boeing 757 (C-32) over to London to do some sight seeing.

We all remember Obama's admonishment to corporate CEO's in February:

"You can't get corporate jets, you can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayers dime."

Apparently that doesn't apply to his wife.

The London Times opened it's description of Michelle's visit this way:

Motorcycle outriders, armoured Chevrolets and bullet-headed men in raincoats criss-crossed London yesterday as Michelle Obama and her daughters spent a second day on an unofficial visit to the capital.

The Times went on to describe that when Michelle and the girls arrived at Westminster Abbey, the building was closed to tourists with people already in told to "wait against the wall." An American visiting the Abbey said "Right then I knew it was probably someone from our 'royal Obama family'."

Michelle's motorcade shut down the London street above as the First Lady of the World and her children go for Fish and Chips at a pub in Mayfair. The entourage inside the restaurant was 15 people while dozens more wait outside. Include the dozens of Air Force personnel to fly and service the plane, embassy personnel and other staff and we are talking about a serious expenditure of tax payer dollars.

Meanwhile, millions of Americans have lost their jobs and won't be able to take their family on a summer holiday. Despite their circumstances they'll still be expected to fork over the tax dollars to pay for Michelle's trip.