Vol: 127 Issue: 21 Saturday, April 21, 2012
It would be unfair to call former Senator Christopher Dodd and retiring Congessman Barney Frank the two biggest crooks in the Congress.
Christopher Dodd decided against running again in 2010 as America learned the degree to which he was involved in the collapse of the housing market, so he is no longer IN the Congress. At best, he was one of the biggest crooks in public office. Now he is the biggest crook at the Motion Picture Association of America (MPAA)
And while Barney Frank still is a member of Congress, (for now) it is unfair to call him the biggest crook, (but only because the competition is the likes of Nancy Pelosi or Charles Rangel or Maxine Waters.)
Barney Frank was the top Democrat on the House Financial Services Committee. It was Barney Frank that prevented the Bush administration from transferring oversight of Fannie Mae and Freddie Mac away from his committee in 2003.
Although the mantra is that the housing collapse was Bush’s fault, the New York Times reported that the Bush administration recognized the problem back in 2003 but was thwarted from fixing it by the Democrats, led by Barney Frank in the House and Chris Dodd in the Senate.
In his 2003 argument, Frank assured the nation concerning Fannie Mae and Freddie Mac:
“These two entities …are not facing any kind of financial crisis … The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
As late as 2008, while the cliché about the fan and the fecal matter was playing itself out in the housing market, Barney Frank was still reassuring the nation that Fannie Mae and Freddie Mac were sound. In July, 2008 Frank told a CNBC interviewer:
“I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under. They’re not the best investments these days from the long-term standpoint going back. I think they are in good shape going forward.”
In late 2008, Frank shifted gears, blaming Bush and the Republicans for the collapse of the housing market. The following year, in an effort to distance his name from the economic collapse over which he presided from the start he began cranking out consumer protection bills like the Credit Cardholders Bill of Rights Act, the Housing and Economic Recovery Act, and finally, the Dodd-Frank Act.
The Dodd-Frank Act, (which ironically was co-authored by the politician who had the most to do with the market collapse within the Senate, Christopher Dodd) creates some 250 new regulations that will involve at least a dozen regulatory agencies.
Here is the alphabet jumble of regulatory agencies either involved in, or created by, the Dodd-Frank Bill;
- Bureau of Consumer Financial Protection (CFPB)
- Commodity Futures Trading Commission (CFTC)
- Department of Education
- Federal Deposit Insurance Corporation (FDIC)
- Federal Energy Resources Commission (FERC)
- Federal Housing Finance Agency (FHFA)
- Federal Reserve Board (FRB)
- Financial Stability Oversight Council (FSOC)
- Government Accountability Office (GAO)
- Municipal Securities Rulemaking Board (MSRB)
- National Credit Union Administration Board (NCUAB)
- Office of the Comptroller of the Currency (OCC)
- Office of Financial Research (OFR, part of FSOC)
- Office of Thrift Supervision (OTS, part of OCC as of July 21, 2011)
- State Governments
- U.S. Securities and Exchange Commission (SEC)
- U.S. Department of the Treasury
The Dodd-Frank Wall Street Reform and Consumer Protection Act was eagerly signed into law by President Obama on July 21, 2010. Unlike the feckless politicians in Congress that voted for it, Obama knew what was inside Dodd-Frank.
A new regulatory agency that transfers control of the nation’s economy away from the Congress and over to him.
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.” -Thomas Jefferson
The Office of Financial Research, or OFR is technically part of the Treasury Department, but exists outside of Congressional control or oversight. It is funded directly by the Federal Reserve, which is neither “federal” nor a “reserve” but is instead a privately-owned banking consortium run by banks for banks.
The Fed argues differently, and so do its defenders, but facts are facts and the Fed is not part of the government. Dodd-Frank carefully removes the OFR from Congressional oversight and grants the Federal Reserve the power to levy taxes on banking institutions to fund the new agency.
Congress doesn’t like it, but they are the ones that passed it. (That’s why it is considered a good idea to read the bill before voting for it.)
The House Financial Services Subcommittee on Oversight and Investigation learned at a hearing this week that a close reading of the law the president signed provides no limit on the growth of OFR’s budget, nor on the taxes the agency can impose on big banks to fund it.
If Congress has no power of the purse control over the OFR, then it sidesteps the Constitutional checks and balances that allegedly make the people the boss over the government. The OFR takes the authority granted to Congress by the Constitution and transfers it to the bankers that run the Federal Reserve.
The agency’s official mission is to collect financial data and funnel it to another Dodd-Frank creation: the Financial Stability Oversight Council. These agencies were designed with the idea of preventing another systemic shock of Lehman Brothers magnitude.
Toward that end, OFR was invested with virtually unlimited subpoena power. It can compel just about any company in America to turn over to the federal government sensitive internal data, even proprietary information.
According to a Washington Times editorial on the subject, Dodd-Frank created the Financial Stability Oversight Council to identify financial institutions that could, in a crisis, “pose a threat to the financial stability of the United States.”
In other words, the council will officially deem financial institutions too big to fail, signaling that the government will not allow these indispensable companies to fail.
Believing that the government will have no choice but to bail them out if things go wrong, the government-designated companies have little reason not to undertake even riskier activities: if they hit the jackpot, they keep it; if they bust, the government will ride to the rescue.
Under Dodd-Frank, troubled too big to fail institutions are subject to “liquidation” – the Treasury secretary condemns the company and hands it over to the FDIC to fix or dismantle it, with virtually no judicial review.
“Worse still, that process gives the government immense power to pick and choose winners and losers. Dodd-Frank empowers the government to favor certain stakeholders and disfavor others, just as it did in the Chrysler bailout. The Obama administration made sure to protect its friends in the unions, but it forced others – especially Indiana’s state pension funds for teachers and state workers – to swallow millions of dollars of losses in what Indiana Gov. Mitch Daniels later called the “Chrysler cramdown.”
And we can only expect more of the same in the future. As law professor David Skeel observes in “The New Financial Deal,” Dodd-Frank’s two central themes are “government partnership with the largest financial institutions and ad hoc intervention.”
This is why the White House pushed so hard for Dodd-Franks passage. It is why Obama was so gleeful when he signed it. The Money Trust really does exist and it really does dictate the terms under which the economy is permitted to operate. As the saying goes, “He who has the gold makes the rules”.
The rules are fairly simple and straightforward. Drop the illusion of competitive capitalism and in the process, consolidate control of the banking industry into as few hands as possible.
“For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.” (Ephesians 6:12)
According to Bible prophecy, one of the pillars of power upon which the antichrist’s government will rest is his centralized control of the global economy. Revelation 13:17 says that he exercises economic authority over ‘the whole earth’ to the degree that those outside his system will be “unable to buy or sell”.
The Bible says that all these things we are now witnessing are part of the last hours of the last days of the Church Age scenario. The antichrist only wields power for seven years. That isn’t long enough to build a centralized power base or condition the public to accept such a system.
It must already be up and running and ripe for takeover when he arrives on the scene. Dodd-Frank is exactly what was necessary.
Things are starting to move swiftly in the direction the Bible forecast for the last days. Everything the Bible predicted has come true so far. Everything that is still future will come to pass with equal precision.
It isn’t a time to be afraid. This is the time to be bold. We know what others don’t. Unfolding Bible prophecy is proof positive that the Lord remains on the Throne, and is complete control of every detail.
“Let not your heart be troubled: ye believe in God, believe also in Me. In my Father’s house are many mansions: if it were not so, I would have told you. I go to prepare a place for you. And if I go and prepare a place for you, I will come again, and receive you unto Myself; that where I am, there ye may be also.” (John 14:1-3)