The "Bailouts" of the financial, auto and solar energy industries were unconstitutional. But then, so has the "financial system" in the United States of America been unconstitutional since at least 1933. The "New Deal" was a major step in the ongoing conversion of our constitutional republican form of government to a constitutional dictatorship at best and, yes, possibly even a socialist police state. However, the "New Deal" was not the first major step. Documented history proves that the perversion of our governments first started shortly after the creation of Pennsylvania on September 28, 1776 or the United States of America on June 21,1788 and has continued in varying degrees and intensity ever since. Power and greed have always been very strong incentives for corruption.
Clearly, most of those in government at all levels have betrayed "We the People" for many, many years. The present so-called "economic crisis" is yet another example of the perversion of our lawful American constitutional form of government.
Much has been written about such subjects as the Federal Reserve System, the War and Emergency Powers, the IRS and the Central Banks. I shall not repeat them here. However, we must understand these and many other matters in order to fully comprehend the vast corruption in our country today and the true cause of the many problems that face us all. Then the solutions shall become obvious.
For example, the so-called "home mortgage crisis" was obviously created by those in government and by bankers, and made possible by certain attorneys and judges. To understand this, we need only look at how commercial banks create "fiat money" out of thin air when an alleged "loan" is made to purchase a house.
First, a Buyer signs a sales agreement/contract with a Seller for the purchase of a house. As soon as this contract is accepted and signed by the Seller and the Seller accepts the "earnest money" put down by the Buyer, there is a meeting of the minds and the ownership of the house changes hands from the Seller to the Buyer with certain conditions that must be met before the Buyer can take possession of the house.
One of the conditions in a "real estate contract" is almost always that a loan must be obtained from a bank. Therefore, the Buyer goes to a bank for a "loan". The bank creates a promissory note and a mortgage. The promissory note, a "high-class IOU", is signed by the Buyer/Borrower and returned to the bank. The bank "monetizes" the promissory note/ IOU to create an "on demand account" at the bank for the Buyer/Borrower. The bank neither commits nor loans any of its own assets or any of the assets of the bank's depositors when this "on demand account" is created. At the closing for the house sale, the Buyer/Borrower takes possession of the house and the Seller gets the check drawn against the "on demand account" created by the bank. The bank is given fees and generally "points" (some percentage of the "loan" amount) at the closing. The bank is thus well compensated for its minimum efforts in this transaction. However, the bank demands that the "Borrower" pay principle and interest on the "loan" which was based solely on the "promissory note/IOU of the Buyer/ Borrower. That is, solely on the credit of the Buyer/Borrower. The bank, which loaned none of its assets or the assets of its depositors, is making 100% profit, the principle and all the interest for the life of the alleged loan. The bank, or some other financial company acting for the bank, then sells the "monetized" promissory note, bundled with other notes, as "derivatives" on the world financial market. This is government sanctioned and promoted theft. It is also, at a minimum, massive deceit, misrepresentation, and fraud.
This method is used with both private and public "loans" in order to create huge amounts of "fiat money" to sustain the paper "monetary system" created in 1933 by Franklin Delano Roosevelt and the New Deal at the direction of the Federal Reserve Bank of New York and certain attorneys and judges.
Apparently, since government has been spending so much for so long, particularly in the last two decades, new and creative methods for creating easily obtainable "loans" were authorized by the Federal Reserve, the United States Congress, and both Presidents Bill Clinton and George W. Bush. In 2011, Fannie Mae and Freddie Mac, for example, owned or guaranteed over "$5 Trillion" in mortgages, which was almost half of the then outstanding "negotiable instruments" in the United States. Many of the acquired "loans" by Fannie Mae and Freddie Mac were high risk "home loans", such as "adjustable rate" or "no money down" mortgages.
When the "adjustable rate mortgage" payment exceeded the amount that the "Buyer/Borrower" could pay per month and/or the alleged market value of a house (inflated as they still are) fell below the remaining amount due on the mortgage, the "Borrower" simply stopped paying the bank. This allegedly created the financial crisis. But the banks did not "loan" anything. They simply lost the huge amount of cash that they were stealing from the people who pledged their own credit, which allowed the banks to create the "fiat money" out of thin air.
So the correct solution to the alleged "financial crisis" was and is to say to the bankers that they have been committing this massive fraud, not only on the people of United States of America, but throughout the world for a long time and that their criminal activities are now over. We owe nothing to the banks. All of the alleged public and private loans in "default", as well as all other "loans" are null and void as a matter of law. Further, everyone who has paid on a "promissory note" in the past is entitled to be given back every "dollar" (adjusted for inflation to the time of the repayment) in principle and interest which he or she gave the bank or mortgage company. Further, each and every individual (bankers, government officials, attorneys, judges, etc.) involved in these serious and infamous criminal activities (treason and felonies, at a minimum) must be prosecuted, fined and sent to prison.
This solution would be the lawful and the right thing to do and would certainly be a tremendous boost to the economy, as well as bring the true criminals involved to justice.
At a minimum, we the people also need to eliminate the Federal Reserve and the IRS, both of which are unconstitutional. We need to return to the use of constitutional money, "gold and silver coins", and demand that all of those in government read, study and understand, as well as, support, obey and defend the Constitution for the United States of America and the Constitution for the State in which we are domiciled and/or currently make our home. "We the People" must also take responsibility for providing for ourselves and thus stop depending on government to take care of us.
As Thomas Jefferson said:
"I believe that banking institutions are more dangerous to our liberties than standing armies. 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 [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Until we once again have a constitutional republican form of government in which "original intent" and "strict construction" of our Constitutions control all of those in government at all levels and at all times, we will continue to experience the increasing loss of our freedoms and liberties. If we are to effectively demand our constitutionally secured, protected and guaranteed natural, inherent and indefeasible rights, we must know what they are, stand together and demand that all of those in government follow their constitutional "oath of office". This is the required American "Rule of Law".
We the people need to return to the moral principles upon which our State and Country were founded and to "pledge to each other our Lives, our Fortunes, and our sacred Honor" as the framers of the "Declaration of Independence" did in A.D. 1776.
Our very survival depends on taking our Country back from those who have stolen it.