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Déjà vu all over again

By Richard A. Viguerie, Chairman,

Many Tea Party and conservative activists are experiencing a sense of déjà vu as the debt ceiling debate builds toward August 2. To those who have the uneasy feeling that somehow they have heard these arguments from the same players before, but in a different place and time, I say you have – in the 2008 TARP debate.

TARP was hoisted on taxpayers’ backs under threats of impending financial Armageddon. It proved to be the greatest crony capitalist raid on U.S. taxpayers ever perpetrated by the insiders of the Washington-Wall Street axis.

Are the debt ceiling negotiations déjà vu?

The GOP beneficiaries of an increase in the debt ceiling would be largely the same as the beneficiaries of the TARP bailout: the Republican Party leadership of John Boehner and Mitch McConnell. This should make conservatives nervous. Very nervous. Leader McConnell has already tipped his hat that he’s ready and willing to cave. Speaker Boehner has been eclipsed by Eric Cantor. It’s been Cantor leading the conservative charge, while Boehner seems as lost in the crowd as Where’s Waldo?

In September 2008 then-Secretary of the Treasury Henry Paulson claimed that the global financial system was at risk of collapse and only an injection of U.S. taxpayer money, allocated at his personal discretion, could save it.

After losing the first vote, Paulson caved in to Democrat demands and allowed an array of unrelated items to be attached to the bill in the hope of pulling-in Democrat votes, but it was the 26 House Republicans who caved in to John Boehner’s entreaties who provided the votes necessary to pass the Troubled Asset Relief Program, or TARP.

Thanks to those 26 House Republicans, through TARP, Paulson was granted near-dictatorial powers over the American financial services industry and de facto control over the U.S. economy.

Far from shoring up banks so they could lend, particularly in the mortgage and small business market, TARP allowed banks favored by Paulson and his successors to clean up their balance sheets at taxpayer expense, buy other banks, declare dividends, and provide outrageous executive compensation packages to executives who were terrible bankers but great lobbyists.

When federal bureaucrats arbitrarily and capriciously declared auto companies to be “financial institutions” after auto bailout legislation failed in Congress, small bondholders and pension funds were not protected by the federal government. Instead, the Washington establishment gave priority to unions allied with the Democratic Party and foreign investors who promised to build “green cars.”

Despite the government’s attempts to hide who was paid what, Reuters reported that $50 billion of AIG bailout money passed right through to major foreign and domestic banks, including Goldman Sachs Group Inc, Deutsche Bank AG, Merrill Lynch, Societe Generale, Calyon, Barclays Plc, Rabobank, Danske, HSBC, Royal Bank of Scotland, Banco Santander, Morgan Stanley, Wachovia, Bank of America, and Lloyds Banking Group. And that was only a partial disclosure of who got what from the $173+ billion AIG received from the American taxpayers.

But it gets even better for the establishment politicians who got TARP passed. As documented by Newsweek and other media outlets, much of this money was recycled back as PAC contributions to the very politicians who voted for TARP and who sit on the committees responsible for financial services-related legislation.

Now comes word that government employee unions, foreign banks, green energy corporations such as General Electric, Wall Street, and foreign bankers all say that the global financial system is at risk of collapse and only an injection of U.S. taxpayer money, achieved by raising the debt ceiling, can save us from financial Armageddon.

Déjà vu? You bet.

The beneficiaries of any compromise on the increase of the debt ceiling will be the same Republican Party establishment insiders who were willing participants in the greatest crony capitalist raid ever perpetrated on the U.S. Treasury.

An increase in the debt ceiling, without strong language to cut and cap spending and balance the budget, will only go to feed the big government beast and its crony capitalist allies, just as TARP did. Let’s hope the new Tea Party Members of Congress remember they have heard these arguments from the same players before and stand firm, otherwise it truly will be déjà vu all over again.

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Another Hoax

I agree that the Democrats are trying to increase the debt ceiling to promote their Marxist agenda.  Likely, the whole idea of needing an increase is a complete hoax.  If the House of Representative does nothing more and their Cut, Cap, and Balance Bill is rejected by the Senate and/or President, August 3rd will come while government business  goes on as usual.  The only thing different will be that the funds will be short for paying the non-working, welfare voters, rogue labor unions, ACRON, non-citizen residents, and other subversive groups.  Instead of attending those arm-twisting meetings with President Obama over debt ceiling increases, Congress should be launchng investigations into the illegal actions of the DOJ, Obama, ATF, ICE, etc.   The Obama administration has broken a large number of federal laws and refused to enforce some on the books.  America deserves a natural born President who has no foreign interests.