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The $15 Trillion End Run An “Oligarchy of Interests”

“Another Crisis like this one and the West will be wiped out,” said German Chancellor Angela Merkel on June 1.  “Once we have overcome this Crisis, the question will be how can we return to a path of virtue as far as public debts are concerned.”  Of course, the first question is whether the West will, in fact, survive the present crisis.  All the Western governments have decided to bail out their financial systems with taxpayer “money.”  Then again, as President Obama said on May 23, “we are out of money now.”  What our government is actually doing is bailing out the financial system with debt, which amounts to promises the government makes on behalf of the next generation.  The trouble is that neither the next generation nor the current one has authorized the government to make such promises.  In September 2008, the Bush administration told Congress that we would all be doomed if we did not bail out the financial system.  Congress first resisted but then authorized $700 billion.  But the voters reacted badly, and Congress, since then, has been clear that it will not authorize another dime to bail out the banks.  The people hate the Bailout.

The Constitution provides that “No money shall be drawn from the Treasury but in consequence of appropriations made by law,” which sounds like you need Congress to raise the money and authorize bailout spending. ...

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