Nothing makes an elected American politician more giddy than exercising the brutal power to tax. Taxing allows the politicians happily to spend the confiscated revenues on giveaway programs and goodies to appease voter groups whose votes can be bought.
Unfortunately, the current recession, with trillions of dollars being thrown at it by the President and the U.S. Congress, (justified as some sort of miracle "relief and recovery"), is in fact already proving to be one giant cookie jar of political handouts.
A few days ago, noting the continued multi-billions being shoveled out for bank bailouts, I wrote, "The inevitably ensuing scandals will make Illinois [soon to be ex-] Gov. Rod Blagojevich's 'play for pay' look like kindergarten." I said then that "Politicians love to control government cash," -- and in only days the first sordid cases turned up -- with U.S. Rep. Barney Frank in the thick of it. (More about him below).
Crisis of Democracy
Alexis de Tocqueville saw this coming way back in 1835 when he predicted America's present sorry political state: "The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money."
According to the Urban-Brookings Tax Policy Center, 38% of "tax units" -- singles, couples, or families -- have zero or negative income tax liability in 2009. When all members of households are added, it nears 50% of all Americans who are paying no income tax. (These are the folks Obama wants to give what he claims is a "tax cut"!)
Senator Jim DeMint (R-SC) described what was coming a year ago: ""I think we’ve got a major crisis in democracy…We assume that voters will restrain the growth of government because it becomes burdensome to them personally. But today fewer and fewer people pay taxes, and more and more are dependent on government, so the politician who promises the most from government is likely to win."
Trillions for More Political Pork
I noted a few days ago that the day was fast approaching when politicians and "Obama's regulatory bureaucrats will be telling banks where to put millions, to whom to make loans, who gets mortgages -- and who doesn't. Already the likes of U.S. Rep. Barney Frank, long time champion of throwing billions at Fannie Mae and Freddie Mac, home of the subprimes, is demanding that President Obama spend the bailout billions and the 'revival' trillions as Barney and other liberals want it spent -- and no doubt as they think will best get them re-elected."
Little did I know that Barney was already hard at it!
The passage today by the U.S. House of a $819 billion sham "economic stimulus" package loaded with earmarked goodies and liberal pet programs by the Democrats provides pols on the Left with a whole new money pot from which to start ladeling largess -- and you and I inevitably are going to pay the painful bill, either in more taxes or massive inflation.
Barney Bankers With a 2008 Porsch Get $12 Million
Politicians' efforts to intervene on behalf of specific banks during the current crisis harks back to the savings and loan scandals of the late 1980s, when members of Congress pressured the government to go easy on struggling S&Ls and other thrift institutions.
One congressman who just lobbied to help a failing local bank to get cash from the Troubled Asset Relief Program had a lead role in drafting the TARP bill, Rep. Barney Frank of Massachusetts, chairman of the House Financial Services Committee. The shaky OneUnited bank he went to bat for ultimately got TARP cash in the amount of $12 million of your tax dollars.
Troubled OneUnited Bank in Boston didn't look much like a candidate for aid from the Treasury Department's bank bailout TARP fund last fall. OneUnited had seen most of its capital evaporate. Moreover, it was under attack from its regulators for allegations of poor lending practices and executive-pay abuses, including owning a 2008 Porsche auto for its executives' use.
Mucho Mas
But, as they say in the TV commercials, that's not all.
News reports document how scores of U.S. senators and congressmen from Ohio, Alabama, California, Illinois and other states are scrambling and lobbying for billions of your tax dollars for their own pet banks and banking buddies, (and their own re-elections).
"It's totally arbitrary," says South Carolina Gov. Mark Sanford. "If you've got the right lobbyist and the right representative connected to Washington or the right ties to Washington, you get the golden tap on the shoulder," says Gov. Sanford.
Head Offshore for Banking NOW
You can avoid the political banking mess in America by moving some or all of your cash offshore.
Since our founding over a decade ago, the Sovereign Society has provided international banking guides for members. Drawing on years of experience, we recommend selected banks in jurisdictions where friendly governments welcome foreign financial investors, where banking institutions provide the savvy services investors require. These banks range from Panama to Switzerland and Austria, to Singapore and Hong Kong.
Join Us
Americans are in now caught in a financial twilight zone, especially as it pertains to banks. For your own sake, we urge you to join the Sovereign Society today and open the door to safe and secure offshore banking -- while you still can. We welcome you. You can bank on us.
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