A Crook is a Crook!

These words come from a dear friend of mine.

This country is in the midst of a financial fiasco at this time and I have been doing a little digging.

The Government is currently scrambling to come up with solutions to this problem, but do not be naive enough to think that they haven’t had a hand in this process from the start. State and local governments are equally at fault.

In this area, the local governments were increasing property assessments (tied to property taxes) on the basis that these homes were selling at such high rates and big $$$. The lending institutions were issuing “interest only loans”, “paper free loans” and “sub-prime” loans” because “EVERYBODY DESERVES A HOUSE”…even if they couldn’t pay.

The State and local governments became “fat” because of the increased property tax revenue and the lending institutions were just passing this loans around as commodities like they weren’t real. Everyone was “fat and happy because they were just “kicking the can down the road”, but this money wasn’t real.

The Government LOVED the tax revenue, the banks loved the “assets” they could show on their books (and the bonuses that came along with them) and the people who could actually afford to own a home, now had a mortgage. Don’t be fooled…these programs aren’t just for the poor. Depending on the area, these loans could be purchased up to $417,000.

Most of this happened under the guise of these two quasi-government agencies Fannie Mae and Freddie Mac. They were government sponsored enterprises, but publicly traded companies, and as of today the U.S Government is under control of a $6,000,000,000,000 piece (50%) of the U.S. Housing market. Fannie Mae was stated in the 1930’s under FDR “New Deal” that has handcuffed us with the antiquated Social Security System (which should be ready to fail soon) and the Securities and Exchange Commission, which helped WATCH this whole financial crisis happen.

On September 17, 2004, The government reports of gross accounting abuses in 2004 at Fannie Mae.

The referenced 121 page report outlined the culture of behavior that was an issue over four years ago at Fannie Mae.

• Management’s desire to portray Fannie Mae as a consistent generator of stable and growing earnings;
• A dysfunctional and ineffective process for developing accounting policies;
• An operating environment that tolerated weak or non-existent controls;
• Key person dependencies and poor segregation of duties;
• Incomplete and ineffective reviews by the Office of Auditing;
• An inordinate concentration of responsibility vested in the Chief Financial Officer; and
• AN EXECUTIVE COMPENSATION STRUCTURE THAT REWARDED MANAGEMENT FOR MEETING GOALS TIED TO EARNINGS PER SHARE, A METRIC SUBJECT TO MANIPULATION BY MANAGEMENT.

Read that last one again. The company lied about profits to increase the management bonuses in the government sponsored enterprise.

Fannie Mae is was the largest purchaser of Countrywide Financial Corporation loans.

Countrywide was by Bank of America almost two weeks ago.

Countrywide was one of the institutions that obtained these sub-prime loans. Since Countrywide didn’t want to have these bad sub-prime loans on their books, they passed them off to Fannie Mac and Freddie Mac.

Countrywide, according to the linked article, gave favorable loans to the Chairman of the Senate Banking Committee Chris Dodd and the Chairman of the Senate Budget Committee Kent Conrad among others.

In a “completely unrelated” turn of events. Senator Dodd was one of the sponsors for a $300 Billion measure that would enable these same loans initiated by Countywide (and other institutions) to be insured from loss and foreclosure. These two Senators are currently under ethics investigation (by other Senators who are a part of the same broken system.)

This June Wall Street Journal article outlines a couple of additional interested parties (James A. Johnson and Franklin Raines) who had received “favorable” loans from Country Wide. These people are current advisers on one of our Presidential candidate’s political staffs.

James A. Johnson was, from 1991 to 1996, the CEO of Fannie Mae after a five year stint at Lehmen Brothers (now bankrupt). He was the head of one candidates VP search committee and is currently a bundler of donations for the same candidate.

Franklin Raines held the same position with Fannie Mae from 1999 to 2004, before “accepting early retirement”. They have been under investigation since that time of overstating Fannie Mac’s earnings by thirty percent… or $3,000,000,000 ($3 billion) in 2004. He has since agreed to pay over $40 million in fines, penalties and stock options according to this April NY Times article. Raines worked for Fannie Mae previously and even served for one Presidential Administration as Director of the U.S Office of Management and Budget (OMB), which is tasked with giving expert advice to senior White House officials on a range of topics relating to federal policy, management, legislative, regulatory, and budgetary issues.

Mr. Raines is also a financial adviser for the same Presidential candidate as Mr. Johnson.

I am not saying the other guy is as clean as a whistle and I have tried to keep partisanship out of this by mentioning political parties. But I know that this post, if you do some research, is going to be bashing one of them and ignoring the other.

The other party is just as guilty for doing nothing all of the years that this has been happening.

This is where our Government has put us. They knew this was coming and no one had the “balls” to say NO!

I encourage you to research this stuff yourself…it is all there. There was even a Senate Bill in 2005 that could have stopped this over three years ago…but it never made it out of committee.

To stop lending money they didn’t have to people who wouldn’t ever be able to pay it back.

They just kicked the can down the road.

Watch how much power and control you give the Government because it doesn’t know what to do with it. The premise that everyone “deserves” a house is much different that having the “opportunity” to earn one.

I want to know who is really going to change the style of business in Washington.

This is bigger than one President can handle. We have to look at our Congressmen and Senators (along with the President and the Cabinet) and get them out of there. Washington D.C. has turned into a place of lobbying and special interest groups when the writers of the Constitution envisioned a government “for the people and by the people.”

These people “representing” us are either a cause or a solution to the issues we have in front of us. Look at each one of them and ask yourself, “Cause…or Solution?”

No partisanship.

A crook is a crook.

Democrat or Republicans.

We are the people to institute change by holding public officials accountable.

Rights vs. Responsibilities

As Americans, we have be blessed with a number of rights.

These rights may be listed in the Constitution or they have have been established by the individual states or the federal government.

Most of us a familiar with the rights established by the Constitution.    We are also familiar with the rights each of us have in the workplace, the rights guaranteed to those with disabilities and the civil liberties rights granted to each person.

Prisoners of War and even those incarcerated have rights.

All of these rights have one thing in common.

For every right we have, there is a RESPONSIBILITY to establish a way and means of enforcement.

These rights also have one thing other thing in common…They establish the RESPONSIBILITY of the “collective” to ensure the right is granted.

The rights to vote, speak (this list is long and can be found in the Constitution) are pretty much agreed upon and most Americans don’t have an issue “picking up the tab” for these and having the RESPONSIBILITY of making sure each of us have these rights.

In this country, every person has the right to have as many children as they want to have.    This is a freedom of the individual as long as they can provide for their family and these children.   By providing for their own family, the individual has the responsibility to care for them.

When a person, or family, keeps having children and the government (collective) has to provide for their welfare, this is where the individual has the right to have unprotected intercourse and procreate, but not have the responsibility of ensuring for the care of the result of these actions.

In a situations like this, we (the collective), are assuming the responsibility for the actions of the individual.

Welfare is just the example used here.  There are many others.

This example can be used for just about any freedom we have and the question should be asked for all of them as the size of our Government grows.

Each and every day the Government is assuming more and more of the RESPONSIBILITY for our “individual” freedoms.  We, the collective, are assuming the RESPONSIBILITY for the rights of the individual.

When individual wants the right to have unprotected intercourse, abuse substances (alcohol, cigarettes and other drugs and medications) and not assume the responsibility (unwanted  children, AIDS, dependency), we (the collective) are forced to do so.

Is it right for you to expect your neighbor to give you money (welfare, food, daycare, etc…) to care for your children?

It would be nice, but by requiring them do so infringes on their rights as an individual.

Is it right for you to expect your neighbor to pay the bill for your alcohol or drug rehab?

It would be nice, but by requiring them do so infringes on their rights as an individual.

With all RIGHTS come RESPONSIBILITIES.

Presidential Candidates Positioning Themselves on 2nd Amendment

In this Presidential election cycle it sure is funny to see a 2nd Amendment ruling coming from the Supreme Court.

The acknowledgment that the right to bear arms is an individual right guaranteed by the Constitution barely survived the Supreme Court’s ruling.

Both of the Presidential candidates are not loved by the national gun organizations.

McCain has has some issues on trying to place limitations on gun shows and some compromises with Democrats when he was pushing his campaign finance reform legislation.

Obama surely believes that Americans should not own guns, he really couldn’t be a true Democrat if he didn’t have this position.  When speaking frankly, he has stated the troubled people “cling” to guns and religion in hard times.  If he has any chance of winning the states required to become President, he has to distance himself from this position.

I think that this Supreme Court ruling benefits Obama the most.

It probably moves the “gun issue” to the “kiddie table” and leaves health care, the economy and energy/fuel prices as the items on the big table.   If this ruling had gone in the other direction, Obama would have really been in trouble.   The gun organizations have been appeased by this ruling and may not make themselves as large a voice in the outcome of this election had the outcome been different.

Al Gore is such a hypocrite

Al Gore spouts off at the mouth and has the audacity to tell us how to live our lives only to do the same things he chastises up for doing ourselves.   Add him to the list of hypocrites…

NASHVILLE - In the year since Al Gore took steps to make his home more energy-efficient, the former Vice President’s home energy use surged more than 10%, according to the Tennessee Center for Policy Research.

“A man’s commitment to his beliefs is best measured by what he does behind the closed doors of his own home,” said Drew Johnson, President of the Tennessee Center for Policy Research. “Al Gore is a hypocrite and a fraud when it comes to his commitment to the environment, judging by his home energy consumption.”

In the past year, Gore’s home burned through 213,210 kilowatt-hours (kWh) of electricity, enough to power 232 average American households for a month.

In February 2007, An Inconvenient Truth, a film based on a climate change speech developed by Gore, won an Academy Award for best documentary feature. The next day, the Tennessee Center for Policy Research uncovered that Gore’s Nashville home guzzled 20 times more electricity than the average American household.

After the Tennessee Center for Policy Research exposed Gore’s massive home energy use, the former Vice President scurried to make his home more energy-efficient. Despite adding solar panels, installing a geothermal system, replacing existing light bulbs with more efficient models, and overhauling the home’s windows and ductwork, Gore now consumes more electricity than before the “green” overhaul.

Since taking steps to make his home more environmentally-friendly last June, Gore devours an average of 17,768 kWh per month –1,638 kWh more energy per month than before the renovations – at a cost of $16,533. By comparison, the average American household consumes 11,040 kWh in an entire year, according to the Energy Information Administration.

In the wake of becoming the most well-known global warming alarmist, Gore won an Oscar, a Grammy and the Nobel Peace Prize. In addition, Gore saw his personal wealth increase by an estimated $100 million thanks largely to speaking fees and investments related to global warming hysteria.

“Actions speak louder than words, and Gore’s actions prove that he views climate change not as a serious problem, but as a money-making opportunity,” Johnson said. “Gore is exploiting the public’s concern about the environment to line his pockets and enhance his profile.”

The Tennessee Center for Policy Research, a Nashville-based free market think tank and watchdog organization, obtained information about Gore’s home energy use through a public records request to the Nashville Electric Service.

http://tennesseepolicy.org/main/article.php?article_id=764

Fairness in taxation

This whole tax system has got me stumped.

I fall into the $42,650-$110,100 group.  This means I get taxed at $5,837.50 plus 25% of anything over $42,650.

So If I make $70,000. I would pay $5,837.50 + $6837.50  (($70,000-$42,650) * .25) = $12,675 in taxes on my income.  This turns out to be 18% of my income.

If someone makes $500,000 they pay $98,355.50 plus 35% of the amount over 349,700.

They pay $98,355.50 + $52,605  (($500,000- $349,700) *.35) = $150,960.50 in taxes on their income.  It would turn out to be 30.1% of their income.

Is someone makes $1,000,000 they pay $98,355.50 plus 35% of the amount over 349,700.

They pay  $98,355.50 + $227,605  (($1,000,000- $349,700) *.35) = $325,960.50 in taxes on their income.  It would turn out to be 32.6% of their income.

The popular argument is that the top earners should pay more in taxes and they surely do.  They also buy more vehicles, televisions, more valuable property and pay taxes on those items also.

So, this push to get taxes increases for the wealthy is just a push by our government to get their hands on even more money.

Don’t fall for the tricks.

Two Faced Ben Affleck

This is a subject I heard discussed on The Wilkow Majority this afternoon.

Ben Affleck has been telling us for years about things we should be doing in this country, people we should vote for, changes we should be making to our Constitution.

He is one of the first to tell us where we should be giving our tax dollars and voters who are being “disenfranchised” , even though he hasn’t regularly voted himself.

Then there is this story is about Mr. Affleck supporting eliminating voting rights from in his guild members because…”would ensure that those with the most at stake are the ones who decide whether to approve a contract or walk picket lines.”

Ben Affleck is a piece of work. He can lecture us all day about how unfair we Americans are to people, but when something that impacts him comes along, he is quick to pull the trigger on the rights of his fellow guild members.

Evidently, principles that are good for us, aren’t good enough for him.

Do as he says, not as he does!!!!!!!!

Department of Education Organization Act?

On May 4, 1980 The Department of Education Organization Act was passed by Congress.

I was nine years old.  Can someone who was of voting age at that time tell me how this happened?

The established mission of this “organization” is as follows…

• Strengthen the Federal commitment to assuring access to equal educational opportunity for every individual;
• Supplement and complement the efforts of states, the local school systems and other instrumentalities of the states, the private sector, public and private nonprofit educational research institutions, community-based organizations, parents, and students to improve the quality of education;
• Encourage the increased involvement of the public, parents, and students in Federal education programs;
• Promote improvements in the quality and usefulness of education through Federally supported research, evaluation, and sharing of information;
• Improve the coordination of Federal education programs;
• Improve the management of Federal education activities; and
• Increase the accountability of Federal education programs to the President, the Congress, and the public.

Nowhere in my research (I am just a common man), did I find the authorization for the federal government to put its’ nose into the states educational system.   What the federal government is currently doing is collecting our tax dollars on a national level, and then redistributing them back to the states as carrots in order to get them to line up and educate our children by some national standards (like NCLB among MANY others).  I am using Article 1, section 8 as my reference point for the items that the Congress is authorized to make laws about.  To make things worse this is even a Cabinet Position in the executive branch of government.

This organization has an annual budget of about $60 billion and since its’ inception, the quality of our educational systems has steadily declined.   This could be a coincidence and my thinking could be wrong, but what I can tell you is that it surely hasn’t improved and there is no light at the end of the tunnel.  The Department of Education holds between 9-12% of a schools educational budget “hostage” and if the school is in non-compliance with the standards and regulations set by these unelected “officials” this money is withheld from the school.   Not only does this not seem fair, there is no basis for this organization to even exist.

These funds could stay at the state level and be used and controlled by the state legislatures and governors, who are regularly elected and an be held accountable for their decisions.  The DOE can run amok with this $60 billion and not even be accountable for its’ use.

We had a promise or two from a President and another candidate in the 80’s to disband this organization, but it never happened.

I really wish we had a State/Commonwealth that had enough gumption to challenge the constitutionality of the Department of Education and take it to the Supreme Court and return the complete control of the education of our children to where it belongs…at the state level.

Analysis of Article 1

The real meat of Article 1 lies in Sections 1, 7, 8, 9 and 10.

I have posted Article 1 as a separate page.

This Article authorized both the House and the Senate and set them as THE legislative branch of government.  The qualifications of each branch (age, residence and citizenship), length of terms, method of selection and general rules are covered in Sections 1-6.

By definition, this branch of the government is the only one able to make laws.

Section 7 establishes how laws are made, mentions the need for the President to sign bills into laws and outlines veto procedures.

Section 8 is where the rubber meets the road.   This section determines what the legislative branch CAN do.  Included is the ability to levy and collect taxes, borrow money, regulate commerce, coin money, set standards for weights and measures, establish Post Offices and roads, establish copyrights for sciences and arts, define laws and punish for offenses against the laws of nations and declare war.  Also included in these powers are organizing and establishing and Army and Navy.

The broadest power this branch was given was…“To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.”

Section 9 is the attempt to limit the powers of these bodies, this sections seems to be ignored these days.   I am going to have to look into this one.

Section 10 limits the states on items such as dealing with foreign nations, coining money and imposing duties and tariffs.

In looking at this, Section 9 really jumps out at me regarding the collection and use of taxes.   This is one the Libertarians must have a field day with.

As I said in other pages and posts, I am not a Constitutional Scholar.   I was educated in the government schools by government teachers (not past high school).  I am somewhat embarrassed by my lack of specific knowledge of the Constitution and these two hours of study of the ten sections of Article 1 have enlightened me greatly.  I will spend the rest of the week researching some issues with these sections as well bringing to light anything else I discover or question.

We the People…

I am going to use this blog to review The Constitution, its’ seven Articles and the 27 ratified amendments and the way it influences (or should) our daily lives.   I will look those who have neglected its’ expressed intent and attempts an abused its’ powers.  I do not claim to be an expert on this subject, but I am going to take this time and space to take a good look at this document created for our liberty, freedom and independence from the tyranny of a “big” and “overbearing government”.

I will this journey through the Constitution with current events, interesting articles and personal views.

The preamble is outlined below…

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

This Constitution was adopted (September 17, 1787) with the rights of the individual (persons and states/commonwelth) to outweigh the rights of the state (federal government).  It establihed the representative democracy that this country has used to “govern itself” for over 200 years and become one of the longest established government in the history of the world.

I cannot express enough the importance of the first three words…”We the People”. 

Feel free to join in and participate, you may be able to educate me a little in the process.    I will take a look at Article One in my next post.