War, Martial Law, and the Economic Crisis

The U.S. Treasury’s Financial Bailout

The bailout measures of late 2008 may have consequences at least as grave for an open society as the response to 9/11 in 2001. Many members of Congress felt coerced at the time into voting against their inclinations, and the normal procedures for orderly consideration of a bill were dispensed with.

The excuse for bypassing normal legislative procedures was the existence of an emergency. But one of the most reprehensible features of the legislation, that allowed Treasury Secretary Henry Paulson to permit bailed-out institutions to use public money for exorbitant salaries and bonuses, was inserted by Paulson after the immediate crisis had passed.

According to Congressman Peter Welch (D-Vermont) the bailout bill originally called for a cap on executive salaries, but Paulson changed the requirement at the last minute. Welch and other members of Congress were enraged by "news that banks getting taxpayer-funded bailouts are still paying exorbitant salaries, bonuses, and other benefits."[1] In addition, as the Associated Press reported in October 2008, "Sen. Charles Schumer, D-N.Y. questioned allowing banks that accept bailout bucks to continue paying dividends on their common stock. ‘There are far better uses of taxpayer dollars than continuing dividend payments to shareholders,’ he said."[2]

Even more reprehensible is the fact that after the bailouts, Paulson and the Treasury Department refused to provide details of the Troubled Assets Relief Program (TARP) spending of hundreds of billions of dollars, while the New York Federal Reserve refused to provide information about its own bailout (using government-backed loans) that amounted to trillions. This lack of transparency was challenged by Fox TV in a FOIA suit against the Treasury Department, and a suit by Bloomberg News against the Fed.[3]

The financial bailout legislation of September 2008 was only passed after members of both Congressional houses were warned that failure to act would threaten civil unrest and the imposition of martial law.

U.S. Sen. James Inhofe, R-Okla., and U.S. Rep. Brad Sherman, D-Calif., both said U.S. Treasury Secretary Henry Paulson brought up a worst-case scenario as he pushed for the Wall Street bailout in September. Paulson, former Goldman Sachs CEO, said that might even require a declaration of martial law, the two noted.[4]

Here are the original remarks by Senator Inhofe:

Speaking on Tulsa Oklahoma’s 1170 KFAQ, when asked who was behind threats of martial law and civil unrest if the bailout bill failed, Senator James Inhofe named Treasury Secretary Henry Paulson as the source. "Somebody in D.C. was feeding you guys quite a story prior to the bailout, a story that if we didn’t do this we were going to see something on the scale of the depression, there were people talking about martial law being instituted, civil unrest... who was feeding you guys this stuff?," asked host Pat Campbell. "That’s Henry Paulson," responded Inhofe. "We had a conference call early on, it was on a Friday I think – a week and half before the vote on Oct. 1. So it would have been the middle... what was it – the 19th of September, we had a conference call. In this conference call – and I guess there’s no reason for me not to repeat what he said, but he said – he painted this picture you just described. He said, ‘This is serious. This is the most serious thing that we faced.’"[5]

read more http://www.globalresearch.ca/index.php?context=va&aid=23354

Views: 29

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

Latest Activity

Mrs. Tif Morgan's 2 discussions were featured
13 minutes ago
Chris of the family Masters favorited James T. Kirk's video
15 minutes ago
canadianjoe favorited Diana's photo
17 minutes ago
Diana favorited Central Scrutinizer's photo
27 minutes ago
Profile Icon via Twitter
RT @RealSaavedra: CNN's Jim Acosta: "What do you say to your critics who say you are creating a national emergency? That you're concocting…
Twitter32 minutes ago · Reply · Retweet
James T. Kirk posted videos
50 minutes ago
Raz Putin favorited James T. Kirk's video
1 hour ago
Raz Putin favorited James T. Kirk's video
1 hour ago
Central Scrutinizer's photo was featured
1 hour ago
Raz Putin favorited James T. Kirk's profile
1 hour ago
James T. Kirk updated their profile
1 hour ago
Diana's 3 photos were featured
1 hour ago
Tara jackson's 2 photos were featured
1 hour ago
Raz Putin's 2 videos were featured
1 hour ago
James T. Kirk's video was featured
1 hour ago

Please remember this website is supported by your donations...

© 2019   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2015 - all rights reserved. unless otherwise noted