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The Rebellion That Failed
DAVE LINDORFF
Counterpunch
Sunday, Oct 5, 2008
The grassroots rebellion that led to the House’s rejection of the Bush Administration’s Wall Street bailout bill on Monday flamed out on Friday, overwhelmed by a massive lobbying campaign by Wall Street and by a propaganda push in the corporate media in favor of passage.
The House, which had voted 228 to 205 against a bailout at the beginning of the week, voted 283-171 in favor of an even more expensive plan only four days later, after the Senate passed a bill containing over $100 billion in tax breaks (mostly for the wealthy), and after House leaders added a bunch of those infamous “earmarks” to buy the votes of reluctant House members.
Interestingly, one of the things that was used to frighten members of Congress into passing this unprecedented bill was a plunging stock market, which plunged into record low territory for the year on Monday and Thursday. Yet after rising modestly during the morning, reportedly on “anticipation” that Congress would pass a bailout, once the vote was in, the equities markets all started heading south. Clearly investors weren’t particularly optimistic that throwing almost $1 trillion in borrowed money from taxpayers at banks and investment houses would do much for the nation’s struggling “real” economy.
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One reason for investor pessimism is no doubt news that car sales and housing prices in September slumped to record lows, and that the September jump in unemployment was the highest since the 9/11 crisis in 2001. Another was probably the inclusion of a provision in the bill as passed by both House and Senate that allows the Treasury to buy bad debt not just from US banks, but from foreign banks as well. As several critics of the plan have observed (but as the corporate media have failed to report, to their undying shame), this means that American tax dollars will be flowing out of the country to shore up the balance sheets of foreign institutions, in the name of keeping overseas investors in the market for US treasury securities.
There may have been no other option for a country that is having its economy run into the ground by a voracious war machine that absorbs close to $1 trillion a year in revenues, and by economic policies that have, particularly over the last eight years, encouraged the wholesale flight abroad of the nation’s manufacturing base.
Numerous critics of this record giveaway to Wall Street note that the whole scheme is unlikely to do anything to shore up the economy, which seems headed into a long and deep recession. It is not even likely to do anything much to ease the frozen credit markets, since there are no constraints to prevent the banks that collect all the money from investing it in more speculative areas that offer the lure of higher returns than simply lending to corporate America or to homeowners. There’s nothing either in the measure to prevent the recipients of the money from investing or lending the money abroad. And given that lack of constraints, why wouldn’t they? If the US economy is going into the dumps, why lend money here at relatively low rates of return, when it can be lent more profitably and at higher rates in growing economies like China, Brazil or Russia?
Democrats in the House, and Barack Obama, the Democratic candidate for president, were rolled by Wall Street and by Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke, who, along with President Bush, sketched out scare stories of a 1930s-like Depression if taxpayers’ money wasn’t handed over in short order. “No time for hearings,” they cried. “This has to be done immediately or America is doomed.”
Where had we heard that kind of nonsense before? Oh yeah, in October 2001, when Congress was similarly rolled into passing first a bill launching an unending and borderless “War” on Terror and into passing a Constitution-wrecking USA PATRIOT Act. And then again in 2002 when Congress was again rolled, this time into authorizing a war against Iraq, which was presented as not a war authorization, but just a “diplomatic hand-strengthening” measure designed to get Iraq to stop developing alleged weapons of mass destruction (which, it should have been obvious at the time, he wasn’t actually developing).
No matter. So weakened, leaderless and ideologically rudderless is the Democratic Party under House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid that it let itself be rolled again. So anxious is candidate Obama to appear in step with the imagined centrist zeitgeist that he actually joined Republican opponent John McCain in helping to pass this ripoff legislative boondoggle, thus assuring that if he manages to win the White House, he will inherit a bankrupt government incapable of doing anything significant of a progressive nature.
Americans who were scared by the media and the Administration into fearing that their retirement savings were going into the toilet unless the bailout passed can watch their already deflated portfolios languish there, now that it has passed.
The lesson is clear. No grassroots rebellion that focuses on Congress as its battleground, or that counts Republican or Democratic elected officials as its troops, will go anywhere. The government party will hew to the people with the money.
A wiser course of action would be the wholesale rejection this Election Day of all incumbents who voted for the bailout bill in both House and Senate. Do that once, and watch how much better Congress responds to citizen pressure the next time around.
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30 Responses to “The Rebellion That Failed”
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October 5th, 2008 at 3:39 am
http://ca.youtube.com/watch?v=Vv3yuRdD2oE
October 5th, 2008 at 4:38 am
“this means that American tax dollars will be flowing out of the country to shore up the balance sheets of foreign institutions, in the name of keeping overseas investors in the market for US treasury securities.”
I think this is another reason for the bailout, and the takeover of Fannie and Freddie in particular. This reason hasn’t really been mentioned enough though. This bailout is about shoring up the credit worthiness of the US government. This is about the government allowing themselves to continue to spend money they don’t have.
October 5th, 2008 at 7:38 am
“Watch how much better Congress responds to citizen pressure the next time around?” Surely you jest! The Real Owners of America will have THEIR man (or woman) in place to replace anybody “the people” send packing to their new life in some cushy corporate “thank-you” job. The “system” will never improve so long as the Banksters run things. Case-closed.
October 5th, 2008 at 8:17 am
It should be called the rebellion that never was. Had the first attempt at the bill been done on or after Oct. 1st it would have passed the first time. The congress, and the order for that matter, are cowards. The fact that they would vote for the bill cause,” some congress men were told martial law would be declared if we don’t” shows that. They tried to pass it during a time the brigades weren’t ready and they took the appropiate action to stall until Oct. 1st. Now that everything is done and so forth, now we’ll see if americans will really have a rebellion or go back to watching dancing with the stars.
October 5th, 2008 at 9:47 am
TO ALL OF US WHO ARE CONCERNED:
“the powers that be do not care about $money$…the money is fake…FIAT..worthless…
They are looking at US..WE The PEOPLE..we are their CASH..we are the workers..we make money for them..”
“My Plan is for all of US to stay Home From WORK; on a given day [nov.3rd?] and let the powers that be run their own dammed system…remember these fools can not even put gas in their cars! let alone drive them…do ya’ think they can run a country? when they have to get their grubby little hands dirty…guess again my friends…they can’t …but WE the People can!
Together We Stand as ONE…alone we fall…one at a time! Do ya’ “C” what i mean…
October 5th, 2008 at 9:55 am
The mess:
Interest rates are dropped to “stimulate the economy”. The only economy left in the US, the housing market. Home values are artificially inflated, and banks loosen their belts to accept those who would normally be denied.
As a result the economy grows, and is considered strong. This is because “new money” is created when loans are made. As the US continues to export its jobs to third world countries for “cheap labor”, the affects are felt in the US.
Suddenly the inflated value of a home deflates. The nice new 300K home just purchased on a variable interest rate (which just went up although the Fed did not go up) puts many home owners in “upside down” equity wise in their new home.
Like Cancer, foreclosures occur and spread across the Nation. This creates an opportunity for those with lots of money. As banks are handed the deed to the home the home owner cannot afford, there just happens to be a wealthy owner in another bank, which buys up the bank with all these foreclosures, getting both the deed, and buying the bank at penny’s on the dollar. In a word, we hear nothing from Wall Street, or the Fed.
As the Cancer spreads, soon Banks that have extremely bad debts that were not able to sell off some of it to other banks start to go under before another wealthy bank can buy them off. In fact, no one wants to buy the bad debt because the market is so bad, and the debt so huge.
In the past when a home owner was loaned money, if the bank they borrowed the money from went under, it was always bought by another bank, so the home owner continued to make payments on their loan, but to another financial institution.
But what happens when a bank goes under, and no one comes to the rescue? Does the home owner just own their property with need to pay for it?
Regardless of what would happen, the Government comes in, buys the debt that another financial institution will not pay for, sells what they can, and passes the losses onto the tax payer.
What happens on all the foreclosed property? You know, the ones the government buys as bad debt?
October 5th, 2008 at 12:24 pm
The ability to vote the guys out that voted for this is the last safety we have. If we don’t use it and vote them out we deserve what we get.
October 5th, 2008 at 12:48 pm
But what if the elections are as rigged for the wealthy as the economy?
October 5th, 2008 at 1:49 pm
Vote them out? I’d rather hang them.
October 5th, 2008 at 2:31 pm
folks go to http://www.zeitgeistmovie.com and watch the second installment its free!
October 5th, 2008 at 3:21 pm
…elections/voting is a sham…hasn’t mattered in decades…Regular Army troops on American soil,the militarizing of our police forces,mercenary troops like ‘blackwater’,joint mission services between countries armies(Mexico and Canada) the Patriot Act… et-al…
We’re in deep shit folks,the time for armed conflict to restore Our Republic,has came and went…’they’ know it,thats why their not too worried about it…tick-tock,tick-tock…Martial Law,extreme Fascism,NWO…at the first sign of aggresion…i will see no ‘colors’…only enemy combatants…i will show no quarter/nor expect any…GodBlessOurRepublic
October 5th, 2008 at 3:32 pm
You got to check out the new zeitgiest, just released
http://video.google.com/videop.....7695921912
October 5th, 2008 at 3:44 pm
The REAL reason they wanted to push this throught was to consolidate power over the economy in the hands of the FED and the Sec. of the Treasury once and for all. They engineered this crisis to usher in their fascist economy. The $700 billion was just a smokescreen anyway, folks. A little lipstick on the $1 quadrillion in bad derivatives pig.
They knew we’d ultimately not be able or willing to do anything about it. Looks like they were right (for now).
Who knows how bad its going to have to get before we stand up. The frogs around me seem to think it’s just a nice little jacquzzi they’re swimming around in as the water comes to a boil…
October 5th, 2008 at 3:54 pm
I watched C-Span when the House originally voted “no” on the bailout bill. The head goons in charge of arm bending couldn’t believe it when the gavel banged down and the lady said “the vote in no the bill is not passed”. Almost instantaniously the head crooks said suspend, delay, recount or something. The madam speaker said no again. The pro bailout reps couldn’t believe it. They were shocked! This is when I learned we don’t live in a democracy. Democracy is just a word with little meaning. Because then the bankster elite got real serious, threatened everybody who voted no, and then bribed them with pork to bring back to their home districts. The American people were 98% against the bailout scam, the other 2% were paid employees of Bear and Sterns and JP Morgan on lunch breaks to call in on hot lines. Soon they were back at it voting again this time with a gun to their heads. So do we live in a democracy… hell no.
October 5th, 2008 at 4:27 pm
It’s not the Jews who deserve bashing. Judaism is a religion. Those who deserve jailtime (at best) are Khazar/Sumerian Nephilim reptilian hybrid members of the power elite. They worship money, not God. Money to get power, power to get money; it just goes on and on ad nauseum.
October 5th, 2008 at 7:10 pm
That reptilian, nephellim junk is obscuring reason. David Icke started this nonsense and he once proclaimed himself to be the “Christ spirit” after “channeling the godhead.” GIVE ME A BREAK!
I know 9/11 was an inside job. Reason can attest to this, but get off the alien stuff. Doesn’t help the 9/11 truth movement.
October 5th, 2008 at 7:11 pm
zeitgeist is also a fairy tale.
October 5th, 2008 at 8:58 pm
Once again the Bush mob score another victory against the American people .An administration that for 8 years has looted and plundered the treasury department to the point the dollar is a worthless piece of paper.First it was a war build upon lies and deception that has resulted in the death of 4200 American soldiers with thousands with lifetime disabilities ,over one million civilians casualties and no closer to victory then the day it started .With the exception of one or two congress men no one has tried to hold this creep responsible for his treason and destruction .This to me only proves that the two houses of Washington is a farce and a fraud
made up of cowards and prostitutes that should be thrown in jail.
October 5th, 2008 at 11:18 pm
A thought came to me, Now a lot of baby boomers are getting ready to collect social security with in the next five years, if not already. So like many corporations in the past who found a way to keep from paying retirement to faithful employees, the government being a corporation under the Queen of England has done the same. Since they have robbed the fund anyhow. Now I am not sure about the England thing but I have seen this on one of the 29 segments of Ring of Power. It makes since to a corporation, now send them off to fema camps so we don’t have to pay them. They figure that they are burnt out from a lifetime of hard work and it will be easy to kill them all. My feelings on that are fuck off you evil bastards, I am taking some of your brainwashed cronies with me when I go down. The mask has come off and still there are dumbed down, brainwashed Americans who can’t connect the dots and still want their daddy the government to fix things. I hate to say it, but it might be the time folks, however I hope this can wait until after the current criminals are out of office.
October 5th, 2008 at 11:28 pm
What a hell of position we are in people. Anything can happen and if it isn’t reported on the main stream media then not too many people know about it. We need to take them over and tell the truth to the brainwashed masses who still probably wouldn’t believe it. May the wrath of God strike them dead.
October 6th, 2008 at 5:32 am
For $700 billion we get bad debt. The $700 billion goes to the companies of their choosing but since there are no walls between the company and the CEO’s bank account, guess where it goes then?
We may get something from the bad debt, but we would need to hire lawyers to do it.
So how does any of this “save” our economy? Sounds like a transfer of tax dollars to wealthy people to me.
October 6th, 2008 at 7:37 am
Dear Global Elite/illuminati you have 1330 days to reap and enjoy all that you have stolen from the american people. Games up creeps……………..see you at armageddon pentecost 2012……………………….love, one of The Remnant……………free book to all 2008 God’s Final Witness. With Love, Pamela
October 6th, 2008 at 8:06 am
The Power of Doing Nothing
“because sometimes the right thing to do is… nothing”
inspired by David Icke’s talk in Los Angeles last week
http://thepowerofdoingnothing.com
October 6th, 2008 at 8:06 am
“They want a fascist planet with the superwealthy ruling it all
Since we’re too independent, America must be led to fall
When our credit’s been exhausted to subdue the Middle East,
They’ll install our debtor nation in the body of The Beast
Traitor…Dare call it treason”
http://www.youtube.com/watch?v=uw5dP5gy2Vs
–The Cornbread Mafia
October 6th, 2008 at 8:23 am
Get rid of Fed reserve print US Treasury notes,get out of Irag and Afiganistan,as bin laden didnt do 9/11,ask Cheney what he was doing in the weeks before 9/11, was busy planning attacks with CIA and Mossad. This is all there big plans for the Eliltest and is right on target!
October 6th, 2008 at 11:16 am
Wewt. http://allabouttruth.org
Jesus still pwns, and loves yall thars a constant. peace.
October 7th, 2008 at 12:12 am
They are Cowards! That’s easy for me to say cuz I don’t have the wealth that they have to loose. The fact still remains they are Cowards and TRAITORS! The Constitution is NOT invalid but it is being IGNORED by TRAITORS! All the bullshit “legislation” in the world does not make the Constitution invalid. The Constitution can be amended but it can NOT be violated legally. ARE YOU GETTING THIS?
October 7th, 2008 at 12:36 am
Crap! Those Congressmen and women lost their balls! That’s what happened. No principle and history will remember it. If they had done the right thing their names would have been emblazoned in future generations minds. A great missed opportunity.
October 7th, 2008 at 3:04 am
“Remember, remember the fifth of November,
The gunpowder, treason and plot,
I know of no reason
Why the gunpowder treason
Should ever be forgot.”
October 14th, 2008 at 7:08 pm
I agree with #21
We need to Overthrow these traitors; kick them out of our house, tar and lynch them all (Except Ron Paul of course!) It would be great if we could call for a NO WORK WEEK Meetup Group; Set up a date and then go take out all the civilians/sheeple and bring them to safety before we Burn Down the whole city of D.C. If China can do it to their masters then why the hell can’t we?!?