By Al Duncan
GM claimed it paid back the Federal Government loans before time. However, dozens of Internet outlets have reported, including FOX News, “GM has paid back less than 10 percent of what”s owed, and that from other taxpayer-provided TARP funds. In other words, they paid us back with our money.”
During a Senate testifying, Sen. Tom Carper (D-DE) asked the Special Inspector General for TARP, Neil Barofsky about the GM repayment. His answer was, “It”s good news in that they”re reducing their debt, but they”re doing it by taking other available TARP money.”
“It sounds like taking money out of one pocket and putting in the other,” Carper responded, as Barofsky nodded.
If GM had repaid its debt, how does that benefit,us, the taxpayer? It wouldn”t alleviate the $55 billion burden of GM debt our government leaders obligated us to pay; it just disappears down another black hole somewhere within government.
According to Democracy Now, July 21, 2009, “Representative Dennis Kucinich (D-OH), leads the effort challenging the use of TARP funds, since banks” excess reserves at the Fed rose to a record $877.1 billion daily average from $2 billion a year earlier, he questioned whether or not ?banks are parking taxpayers” money in the Federal Reserve while the businesses and consumers across America are ?starved for credit” and whether the Federal Reserve is ?paying banks not to make loans.””
Kucinich raised the question in the hearing before the Government and Oversight Committee: “If these reports are true, this raises significant questions about who the Fed is working for. If the Fed is paying higher interest rates on term deposits in order to induce banks to keep money at the Fed rather than lend, it would be an outrage.
“If TARP isn”t about keeping people in their homes or providing credit to businesses, what”s it for? I think the vast majority of Americans would be outraged to learn their tax dollars were facilitating hoarding at the Fed and increased profit making for banks,” Kucinich said.
The Fed is loaning our money to banks at .05 percent interest, the banks are then using that same money to buy bonds from the Fed at a guaranteed 5.3 percent return. In other words, the profit from our money is going into the pockets of the bankers, which is equivalent to the Fed paying them not to loan us our own money. The banks and the Fed enjoy a risk-free profit at our expense. So why not avoid chancy loans to homebuyers, businesses, and other consumers?
Our economic system functions on credit, without credit the economy and this nation ceases. The Senate investigation proves that the Fed and the bankers are not working for the betterment of America.
Against the wishes of the vast majority and without a clue as to where the money was going, President George W. Bush, via a $150 billion bribe, persuaded “the best politicians money can buy” that a $700 billion bailout was crucial to the country”s survival. And the entire amount went into the pockets of the Wall Street bankers. Again, against the wishes of the vast majority and without a clue as to where the money was going, President Barack Obama persuaded the same “best politicians money can buy” that a $787 billion stimulus plan was crucial to the country”s survival. We”ve now discovered that it, too, is being directed into the pockets of the Wall Street bankers.
Without a clue of its contents, Speaker Nancy Pelosi said, “But we have to pass the bill so that you can find out what is in it?” Together, Pelosi and Obama persuaded the “best politicians money can buy” that it was crucial to pass a 2400-plus-page health care bill. Consequently, 20 states have filed a lawsuit saying it”s unconstitutional to force Americans to buy something they don”t want to buy.
Also, less than one-tenth of the bill involves health care while the remaining 90 percent involves everything from mandatory disclosures of personal bank records, to businesses being forced to issue 1099 forms to vendors for purchases of goods and services more than $600, and mandatory home-modifications to meet energy requirements.
This is now standard procedure within our political system. And when a genuine messenger proves that the enemy isn”t someone in a cave in Afghanistan, but in fact our own government, they reject the message and shoot the messenger.
CORRECTION: Per the current Federation for American Immigration Reform report: taxpayer”s annual cost for illegal immigrants is $113 billion, or $1,117 per household, not $101 billion, as previously stated.
Al Duncan is a local author, businessman and Record-Bee columnist. He can be contacted at alduncan@pacific.net.
