Beware, the Obama Administration is trying to bypass Congress and nationalize the United States banking system! This unconstitutional scheme is being done through financial maneuvering efforts that don’t make sense to most of us. In short, the Obama Administration is seeking to convert government loans into equity stakes of common shares of stock (with full voting rights) that are owned by the federal government — particularly the Treasury Department which is under the Executive Branch. This scheme would immediately make the government (i.e. the Obama Administration) the largest shareholder in several of our nation’s largest banks. It appears banks will have not a choice in this loan for stock conversion scheme.
This maneuver was done to Citigroup in January when up to $25 billion in preferred stock (which was basically a loan) was converted to common stock. This gave the government equity ownership including full voting rights. This move is a done deal!
Some think of this as a “backdoor to nationalization” approach. Whether it’s backdoor or frontdoor, the result is banks that are essentially owned and/or controlled by the government. Such a move allows the federal government to control everything from the printing to the supply to the flow of money within our economy. Bank ownership would mean the government would be directly responsible for setting rules and policy regarding creditworthiness, lending terms, qualification for mortgages, interest rates and so much more. That is a very, very scary thought.
Furthermore, the federal government seems to be actively seeking this position of power and is putting conditions on the repayment of bailout funds that make it impossible for banks to repay these loans unless the government decides that their repayment is in the “national economic interest” whatever that means. Sounds to me like the federal government is putting a stranglehold on the banks. Remember the federal government “borrowed” the bailout money that they received to inject into the banks. In effect, they are taking the banks over with nothing but paper.
A free people must have control over their own money. Any government that takes this power from their people enslaves them and controls their destiny. As Americans, we must never allow this to happen to our banks. We cannot give this up.
While it is true that our401Ks are worth less now than they were last year, they are not worthless. If the government gets their hands on them they will have even less value — the value will be whatever the government and not the market says it is. Remember, this is the same government that runs the Social Security system which is already worthless for most of today’s workers under the age of 45.
Beware, lest the fear of losing our money lead us to turn it over to the greedy hands of government. Instead, let us fear the loss of our money (and our freedoms) to the government. I urge you to contact your members of Congress and demand they stop this power grab from the Obama Administration controlled Treasury Department (which is headed by a tax cheat — learn more [28 page .pdf document]).
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Posted under Barack Obama, Economy
This post was written by PonderstormMike on April 20, 2009
