“The collapse of Freddie Mac and Fannie Mae was the inevitable consequence of a banking and financial system that is based on a complete illusion,” says Constitution Party candidate for U.S. Senate in Oregon, Dave Brownlow.
“There is NO money! When we go to a bank or mortgage broker to finance the purchase of a home, one of the world’s most elaborate con jobs is foisted on the unsuspecting borrower. Instead of using real money to finance the mortgage, the funds required to close the loan are magically created out of thin air the instant the borrower signs the loan documents.”
“Think about it,” Brownlow continues. “The bank that financed your mortgage did absolutely nothing to earn the money that is being loaned – no depositors, no accounts, no investments, no real money. The bank simply created the mortgage funds out of nothing, with the click of a key. The prospective homebuyer enters into a contract for what is essentially economic servitude, for up to 30 years in some cases, to borrow money the bank did nothing to earn – and did not exist before the hapless victim walked through the door! Talk about usury. Talk about fraud! Obviously, this scam could only go on for so long, and the chickens are finally coming home to roost.”
Financial commentator, millionaire investor, and libertarian Jim Rogers goes even further. He says, that as a result of the government’s seizure of Fannie Mae and Freddie Mac, the U.S. is now “more Communist than China.”
Libertarian Presidential candidate Bob Barr spoke out in favor of a Fannie/Freddie bailout, but said that the companies should be “privatized.” What he meant by this was unclear since the companies were essentially private already (they traded on the New York Stock Exchange), and in the ways that they were just pseudo-private, Barr said he wanted to make them more socialized. For example, he wanted to make the implicit government backing of their debt explicit, and we wanted to subject them to further regulation — giving the Federal Reserve “more oversight power” in his words.
8 responses so far ↓
1 Deran // Sep 8, 2008 at 3:28 pm
“more Communist than China.â€
LOL. Are we sure G.E. wasn’t the one who said that?!
No, really, I’m all for fannie and freddie being permenantly folded into a federal agency to maximize stabilization of the mortgage system. There should be no speculation with housing. Housing is a fundamental need that shouldn’t be at the whim of speculators and rapacious profiteers.
I do agree on this idea that money as we know it right now is a stack of illusions and cicular debt obligations; ie a house of cards, ponzi scheme, etc.
I’m only partly joking when I suggest we adopt the silver Maria Theresa thaler as backing on our currency. Something to restrain the banks from turning money infinite layers of speculatory paper.
2 G.E. // Sep 8, 2008 at 3:30 pm
Holy crap! The Socialist “gets it” about hard money!
Glad to see you’ve seen the light!
3 G.E. // Sep 8, 2008 at 3:31 pm
It was Jim Rogers who said it, but I definitely agree (and have said the same myself). I’m trying to get enough gold stockpiled to fund a getaway to Hong Kong for me and my family.
4 G.E. // Sep 8, 2008 at 4:03 pm
By the way, the market is up huge today in the wake of this socialism/fascism. Please, socialists and leftists, do not mistake what we have and what Wall Street likes for a FREE economy!
5 inDglass // Sep 8, 2008 at 6:21 pm
The AP report on this made it quite obvious (though without saying it, of course) that this is total communism. I couldn’t have said it better than Jim Rogers and Dave Brownlow though.
I definitely need to squeeze in a donation to the Brownlow campaign, and you should too!
6 inDglass // Sep 8, 2008 at 8:57 pm
Not only are we more communist than most other countries, but we give most of the welfare to corporations instead of people.
7 Spence // Sep 8, 2008 at 11:39 pm
This will ripple out of control before we know it. Already, it’s restored a false sense of security to the stock exchanges. And it won’t stop at the banks. I hear it’s the Big 3 automakers who next want to be “saved”.
8 inDglass // Sep 9, 2008 at 10:54 pm
I saw in the paper that the automakers are seeking $50 billion in loans. While not the libertarian solution, loans are a far cry from what’s happening with Fannie/Freddie. If there is to be welfare of any kind, it seems like loans would be the least evil route to go.
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