Monday, September 29, 2008

Republican Liberty Caucus Opposes Bailout Plan

I'm on the New York State board of the Republican Liberty Caucus. The national RLC chairman, Bill Westmiller, has issued the following press release opposing the bailout. Despite the Bush administration's creation of this plan, there are many Republican Congressmen who oppose it. The trouble is that John McCain chose to identify himself with it. Bill's press release is excellent, but I would go further. There needs to be a de-nationalization of banking regulation and monetary policy. The current system is an abject failure. The problems go far deeper than the current socialization of banking. The banking system has not been creating value for decades. It depends on the money-creation powers of the Fed. Yet, this irresponsible institution has permitted bankers to extract large salaries. The public subsidization of Wall Street and banking occurs through the Federal Reserve. It is time to end this boondoggle and re-establish a gold standard.

Date: 09/28/2008
Release: Immediate
Contact: Westmiller (805) 493-4332

"NO Bailout for Failure, NO Rescue from Risk," says Republican Group"

Thousand Oaks, CA - A national caucus of Republican activists has urged GOP legislators to stand firm against the "Paulson Bailout" of a corrupt financial regulatory system. "This proposal is a government takeover of the entire U.S. economy," says Republican Liberty Caucus Chairman William Westmiller, "whose only purpose is to rescue those who made risky bets on bad mortgages." The Caucus [] opposes any taxpayer payoff to rescue those who made bad investments in any sector of the economy. "The problem is not a lack of government control," says Westmiller, "but rather the decades of market distortions imposed by Congress through subsidies, mandates, guarantees, and constraints on free-enterprise mortgage offerings."

The Paulson proposal grants the Secretary of the Treasury total control over all mortgage-related financial instruments, nearly a trillion-dollars in discretionary funds, and the power to nationalize or deputize every financial institution in the nation. "This isn't a rescue plan," says Westmiller, "it is an economic police state."

Over the past five years, Congress has refused - on multiple occasions - to impose standard accounting practices on "Government Sponsored Enterprises", maintained an implicit taxpayer guarantee against all of their losses, and expanded the discretion of federal agencies to allocate new national debt to failed investments and insurance brokers. "This is not free enterprise, nor anything even remotely associated with the American Dream," says Westmiller, "it is pure and simply corporatism, designed by oligarchs, suitable for a Weimar Republic or Soviet Union, not the United States of America."

The RLC favors clear legislation protecting individuals against fraud, misrepresentation, and theft. It opposes any law that benefits one class of Americans at the expense of another, including any form of financial guarantee or subsidy that rewards failure or encourages foolish investments.

"The worst aspect of all the proposals now pending in Congress," says Westmiller, "is the destructive craving to save a system of patronage, political favors, and class benefits that has brought us the current crisis. More of the same is no solution.”

"The 'Pelosi Compromise' is a fruitless exercise of battling against the most extreme Democratic proposals," says Westmiller, "adding new layers of bureaucracy, prolonged studies of alernative interventions, and phased-in destruction of the dollar is not progress, it is more, much more, of the same failed policies." The RLC applauds the stamina and fortitude of multiple Republican Senators and Congressmen who have opposed any corporate bailout, expansions of government fiscal power, new burdens on taxpayers, or any further assaults on the value of the dollar through inflation. The RLC is a political membership organization working within the Republican Party in support of individual rights, limited government, and free enterprise. The Caucus has members in all 50 states and 20 chartered state chapters. The RLC has urged all of its members to communicate to their representatives in Congress their total opposition to any bailout.

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