Let Us All Bow Down to the Great God of Government

As I predicted on the 10th, the government is now in the banking business. 

I expect an announcement that we will no longer be a free market nation, but in fact will move further down the socialist road, similar to what we saw in Iceland yesterday.  The government will seize control of the banking industry and the people will sigh a sigh of relief not realizing the noose just got tighter around our necks.

I don’t want to sound like the sky is falling because, it is only fake money anyway.  But it is that fake money that most people buy their food and housing with.

I’d like to call it creeping socialism, but I think our government has put on the black boots of communism.  Read a few of these quotes from the New York Times and decide for yourself.  Here is the Communist Manifesto and here is what our government did yesterday.

First, who asked for the governments help?

Kenneth D. Lewis, the chairman of Bank of America, also pushed back, saying his bank had just raised $10 billion on its own…

In an interview on Monday, before the meeting, John J. Mack said his bank, Morgan Stanley, did not need capital from the Treasury.  It had just sealed a $9 billion deal with a large Japanese bank…

Secondly, who had a choice in the matter?

WASHINGTON – The chief executives of the nine largest banks in the United States trooped into a gilded conference room at the Treasury Department at 3 p.m. Monday. To their astonishment, they were each handed a one-page document that said they agreed to sell shares to the government, then Treasury Secretary Henry M. Paulson Jr. said they must sign it before they left…

…What happened during those three and a half hours is a story of high drama and brief conflict, followed by acquiescence by the bankers, who felt they had little choice but to go along with the Treasury plan to inject $250 billion of capital into thousands of banks – starting with theirs.

…”It was a take it or take it offer,” said one person who was briefed on the meeting, speaking on condition of anonymity because the discussions were private. “Everyone knew there was only one answer.”

How where the bank’s concerns handled?

Among their concerns were: How would the government’s stake affect other preferred shareholders? Would the Treasury Department demand some control over management in return for the capital? How would the warrants work?

With the discussion becoming heated, the chairman of the Federal Reserve, Ben S. Bernanke, who was seated next to Mr. Paulson, interceded. He told the bankers that the session need not be combative, since both the banks and the broader economy stood to benefit from the program. Without such measures, he added, the situation of even healthy banks could deteriorate.

 – was that a threat of some sort from the federal reserve chairman?

Lastly, what was the total cost of this elaborate plan to further enslave the American tax payer?

The president of the Federal Reserve Bank of New York, Timothy F. Geithner, then proceeded to outline the details of the investment program. When the bankers heard the amount of money the government planned to invest, they were stunned by its size, according to several people…

…Mr. Paulson announced the plan Tuesday, saying “we regret having to take these actions.” Pouring billions in public money into the banks, he said, was “objectionable,” but unavoidable to restore confidence in the markets and persuade the banks to start lending again.

In addition to the capital infusions, which will be made this week, the government said it would temporarily guarantee $1.5 trillion in new senior debt issued by banks, as well as insure $500 billion in deposits in noninterest-bearing accounts, mainly used by businesses.

All told, the potential cost to the government of the latest bailout package comes to $2.25 trillion, triple the size of the original $700 billion rescue package, which centered on buying distressed assets from banks. The latest show of government firepower is an abrupt about-face for Mr. Paulson, who just days earlier was discouraging the idea of capital injections for banks.

For a look in real dollars at how much debt we are in, check out the current total of the national debt clock compared to the picture posted just three days ago!  This does not include this new $250,000,000,000.00 bank bailout.

For further review check out the national debt clock faq.  Or if you ever wondered who we owe all this money to, check out the list on the US treasury site, or their faq.  It’s always fun to read the government sites.