All posts in Fiscal Responsible Government

THE VOTE PUMP

Barack Obama will have ONE BILLION DOLLARS to spend on his re-election in 2012. Bill calls that chump change. Find out how the Big Government statists spent 22,000 times that amount on buying votes in 2011 alone!

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SHOCK REPORT: TARP FRAUD GROWS, FEDS ADMIT TAXPAYERS ‘WILL NEVER GET BACK’ BILLIONS OF DOLLARS


Christy Romero, Deputy Special Inspector General and acting Special Inspector General for the federal bailout program known as TARP (SIGTARP.gov)

Via: The Blaze

U.S. taxpayers are still owed nearly $133 billion that companies haven’t repaid from the financial bailout, according to a quarterly Special Inspector General Troubled Asset Relief Program (SIGTARP) report. The report also states that as of December 31, 2011, the Treasury has “written off $4.2 billion and realized losses of $7.8 billion that the taxpayer will never get back,“ and that it ”predicts losses on other TARP investments.”

But perhaps this shouldn’t come as a surprise. After all, some programs were designed as a “Government subsidy with no return to taxpayers,” according to the report.

Of the $700 billion Congress authorized for the bailout of financial companies and automakers, also known as the Troubled Asset Relief Program (TARP), approximately $413 billion has been lent. Of the $413 billion, the government has allegedly recovered about $318 billion, or about 77 percent of it, according to the Associated Press.

However, although 77 percent sounds pretty good, keep in mind that the TARP bailouts, which were launched at the height of the financial crisis in September 2008, will continue to exist for years.

According to SIGTARP report:

TARP programs that support the housing market and certain securities markets are scheduled to last until as late as 2017, and Treasury can spend an additional $51 billion on these programs during those years.

“TARP is not over,” Christy Romero, the acting special inspector general for the $700 billion bailout, said in a recent statement.

But perhaps even more troubling than the prospect of the continuation of the bailouts or the massive amounts of taxpayer dollars being “written off” is the fact that SIGTARP continues to uncover TARP-related fraud.

While the mainstream media has kept itself busy reporting that a large chunk of the TARP money has been returned, it has failed to report that the known instances of TARP-related fraud hasincreased since SIGTARP’s January 2011 report.

Consider the following [all emphases added]:

Jan. 2011: “As of December 31, 2010, SIGTARP had 142 ongoing criminal and civil investigations…”
Jan. 2012: “As of December 31, 2011, SIGTARP had more than 150 ongoing criminal and civil investigations…”

Jan. 2011: There were “criminal convictions of 13 defendants for fraud”
Jan. 2012: There were “criminal convictions of 31 defendants, of whom 22 have been sentenced to prison (others are awaiting sentencing)”

Jan. 2011: SIGTARP reported “civil or criminal actions against 45 individuals to date, including 22 senior officers (Chief Executive Officers, owners, founders, or senior executives)”
Jan. 2012: SIGTARP reported “criminal actions against 61 individuals, including 45 senior officers (CEOs, owners, founders, or senior executives) of their organizations)”

Jan. 2011: There were 12 “civil cases naming…corporate entities as defendants”
Jan. 2012: There were 18 “civil cases naming…corporate or other legal entities as defendants…”

Now, to be clear, SIGTARP reports are released quarterly and the above is an annualcomparison. However, whether it’s a matter of 3 or 12 months, the increase in known TARP fraud is still troublesome. And while it’s laudable that SIGTARP has prosecuted and convicted a good number of these financial thieves, it is unsettling to see that that number continues to grow with each report.

It would seem that FBI Director Robert Mueller was correct when he predicted that TARP fraud would become the “next wave of financial fraud cases.”

But before we get lost in these numbers, let’s revisit that part about companies who have yet to repay their debts. Who still owes?

“Among the largest bailed-out companies, American International Group Inc. [AIG] still owes taxpayers around $50 billion, General Motors Co. owes about $25 billion and Ally Financial Inc. about $12 billion,”  the AP reports.

General Motors Co. still owes about $25 billion? That’s odd. It seems that just yesterday someone was touting the Detroit auto manufacturer as the very model of economic success.

Where does that put us? Billions of taxpayer dollars “written off” and an increase in known instances of TARP fraud. Is there any other bad news in the SIGTARP report?

Actually, there is.

“Treasury bailed out companies in the form of loans. It converted its loans to some of the biggest recipients into common shares in those companies,” the AP reports. “Those shares are now trading below Treasury’s break-even prices.”

What does this mean?

“For Treasury to sell its stock in the largest recipients at the price where taxpayers would break even — $28.73 a share for AIG, $53.98 for GM — it could take years,” the AP reports.

Considering that AIG’s shares closed Thursday at $25.14 and GM ended at $24.72 (Ally isn’t publicly traded), the AP is probably correct.

“We’ll continue to balance the important goals of exiting our investments as soon as practicable and maximizing value for taxpayers,” Treasury spokesman Matt Anderson said.

While that’s supposed to sound reassuring, the bottom line is still this: billions of dollars have been “written off” by the Treasury, SIGTARP is uncovering more cases of TARP-related fraud, and it could take years for the Treasury to offload the stock from the biggest bailout recipients.

Read the Full SIGTARP report here.

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Obama Admin Doles Out $1.6 Million In Taxpayer Cash To “Restore Chicano Murals”…

SAN DIEGO – Artists revealed restored cultural paintings in Chicano Park Friday.

A $1.6 million grant from the federal government provided the funding for restoration of 18 murals in the historic park in Barrio Logan.

“As a young artist I remember coming to San Diego and thinking ‘gosh I wish I could have a mural up at Chicano park,’” painter Mario Chacon said.

The bright art pieces have brought people to Chicano Park since the 1970’s, but time has taken it’s toll.

The artists working on the restoration said each painting has significant symbolism.

“What was placed at the top of the mural was a banner proclaiming the battle cry of the day,” Chcon said. “The idea being that the community would build a green zone, a recreational area from here to the bay.”

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Obama Grows Government at Record-Shattering Pace

English: Barack Obama delivers a speech at the...

Via: National Review

Palo Alto — Barack Obama is the Barry Bonds of Big Government. He offers America liberalism on steroids. While he earns grand slams for spending and debt, his pitiful results constitute strikeouts.

In an address to the Hoover Institution here last Monday, Stanford University economics professorMichael Boskin detailed President Obama’s truly historic profligacy.

Under Obama, federal spending has risenfrom 20.7 percent of gross domestic product to 25.3 percent, Washington’s largest slice of apple pie since 1945. In fiscal year 2011, which ended September 30, Uncle Sam spent a record $3.6 trillion, up an inexcusable 4 percent since FY 2010. So much for Obama’s demands for “shared sacrifice.”

Obama’s spend-o-rama includes federally funded green jobs that Boskin dismisses as “the leprechaun economy.” The apotheosis of this blarney was last month’s $1.2 billion Energy Department loan guarantee to SunPower Corporation of Richmond, California. Its solar-equipment project promises 15 permanent positions. Cost per job-created: a staggering $80 million.

Even worse, if possible, the Fox Business Network’s Gerri Willis reports that SunPower received this federal largesse even though its share price has plummeted93.5 percent — from $133.61 (its Dec. 7, 2007, peak) to $8.09 on September 30, when it won Energy’s loan guarantee. SunPower’s market capitalization stood at some $800 million, just below its $820 million debt. SunPower released an earnings warning after scoring this federal subsidy. The company also faces a class-action lawsuit in which investors claim that it has made false public statements.

Would you invest in SunPower? You already did!

You can’t make up this stuff !

This kind of fiscal recklessness helped swell FY 2011’s federal deficit to $1.298 trillion, just ahead of FY 2010’s $1.294 trillion in red ink, though behind FY 2009’s record $1.416 trillion. Obama has authorized three consecutive trillion-dollar deficits. Now he demands another $447 billion for Stimulus, Jr.

All of this, Boskin observes, has pushed the federal debt to 67 percent of gross domestic product, the highest since the aftermath of World War II. No wonder Standard & Poor’s downgraded America’s sovereign debt last August 5 — another first.

Obama’s milestone-setting expenditures would be bad enough if they were the spectacularly high price for restoring prosperity. Instead, Obama has impoverished the Republic — for nothing.

Only 58.1 percent of the population is working, the lowest level since 1983, notesBoskin, chairman of Pres. George H. W. Bush’s Council of Economic Advisers and a Hoover senior fellow. Among America’s 14 million unemployed citizens, a record 45.9 percent have been jobless for more than 27 weeks.

Boskin compared snapshots of Obama’s and Pres. Ronald Reagan’s post-recession recoveries, 27 months after each downturn hit bottom. In September 2011, on Obama’s watch, non-farm payrolls had grown 0.6 percent, yielding 841,000 jobs since June 2009. Under the tax-cutting, business-boosting Reagan, non-agricultural employment swelled 8.7 percent, generating 7.7 million new jobs.

In January 2009, economists Jared Bernstein and Christina Romer (Boskin’s Obama administration counterpart) predicted that if Obama’s stimulus passed, “the unemployment rate in 2010Q4 is predicted to be approximately 7.0%, which is well below the approximately 8.8% that would result in the absence of a plan.”

In fact, Obama signed his $840 billion stimulus . . . and unemployment rocketed upward anyway. It peaked at 10.1 percent and now seems stuck at 9.1 percent. Boskin calculates that this 2.1 percent gap between Team Obama’s 7 percent fantasy and the cruel 9.1 percent reality that they perpetrated equals 16 billion foregone work hours. Even if one accepts the White House’s argument that the stimulus somehow “created or saved” 3 million jobs, that equals $280,000 per position — nearly quintuple the $58,510 that an average private-sector employer spends to hire a new employee.

This stagnation now finds 51 percent of Americans too poor to pay federal income tax (a modern record) while 47 percent of Americans receive at least one form of federal transfer payment (an historical high), as dependency on the ever-expanding state expands.

Obama’s stack of bills, Boskin predicts, means higher taxes — and soon. To underwrite Obama’s deficits (as well as those racked up by free-spending, left-wing Republican Baby Bush), top California earners, for instance, could see combined federal and state income and payroll taxes total 70.8 percent  of income by 2016. Those earning just $60,000 could pay 52.4 percent to Washington and Sacramento. Non-Californians also should anticipate higher taxes.

“A CEO who got it wrong this many times would be gone by now,” Michael Boskin concluded. Instead, Obama barnstorms campaign events, barks at the rich, and bellows for further federal outlays.

While Americans are stuck in the employment minor leagues, Barack Obama is bound for the Unlimited-Government Hall of Fame.

— New York commentator Deroy Murdock is a nationally syndicated columnist with the Scripps Howard News Service and a media fellow with the Hoover Institution on War, Revolution and Peace at Stanford University.

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U.S. Treasury Blows Though Debt Ceiling, Issues Another $21 Billion In 10 Year Bonds…

Via Weaslezippers: Laws? We don’t need no stinkin’ laws!

Via: Zero Hedge

America may have breached its debt ceiling, but that is certainly not preventing it from issuing debt, placing another $21 billion in 10 Year bonds in a reopening, which priced 1.5 bps through the WI tail of 1.915% or at 1.90%.

This is merely the latest record low yield in the history of the auction. The Bid To Cover came at 3.29: not a record, but certainly one of the top 5 highest. Oddly enough, while the Directs disappeared from yesterday’s 3 Year auction, today they surged, coming at double last month’s 8.4% at 17.4%, the highest since the August post-downgrade auction.

Primary Dealers accounted for 44.3% with Indirects coming in at a very weak 38.3%. Still, the take home is that in the past two days, the US has raised over $50 billion in debt with no capacity, and instead is plundering from government retirement accounts, just like it did back in July 2011 at the first, but not last, debt ceiling theater. SSDD.At least we know what it takes to get new record low yields: just keep breaching the debt ceiling – guaranteed way to raise 30 Year debt at 0.00% in a few months.

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Federal Reserve audit exposes major securities fraud and the embezzlement of $16 trillion.

Posted by PCCorruptionWorld newsFriday, July 22nd, 2011

An audit of the Federal Reserve has revealed that the privately owned Federal Reserve secretly doled out more than $16 trillion in zero interest loans to some of the largest financial institutions and corporations in the United States and throughout the world.  The non-partisan, investigative arm of Congress also determined that the Fed acted illegally.  In fact, according to the report, the Fed provided conflict of interest waivers to its employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans.  The report is evidence that reveals major securities fraud in the embezzlement of $16 trillion by the Federal Reserve.

$16 trillion is 10 times more than what the U.S. Congress authorized and Bush ($700 billion) and Obama ( $787 billion) signed off on.  The Federal Reserve was only authorized by Congress to use $1.487 trillion in federal tax dollars in bailouts.  The Federal Reserve embezzled another $14.5 trillion.

The Congressional report determined that the Fed secretly hide most of the embezzled money into their own banks.  The rest the Fed unilaterally transfered trillions of dollars to foreign banks and corporations from South Korea to Scotland.  Foreign banks and corporations which the Federal Reserve bankers had a personal financial interest or stake in.

The report reveals that the CEO of JP Morgan Chase served on the New York Fed’s board of directors at the same time that his bank received more than $390 billion in federal money from the Fed – conflict of interest.  Moreover, JP Morgan Chase served as one of the clearing banks (money laundering banks) for the Fed’s emergency loans programs (aka – embezzlement schemes).

In another disturbing finding, the Government Accountability Office said that on Sept. 19, 2008, William Dudley, who is now the New York Fed president, was granted a waiver to let him keep investments in AIG and General Electric at the same time AIG and GE were given federal funds.  One reason the Fed did not make Dudley sell his holdings, according to the audit, was that it would have exposed the Fed’s conflict of interest and major securities fraud in the embezzlement of $16 trillion.

The investigation also revealed that the Fed outsourced most of its embezzling to private contractors, many of which were rewarded with extremely low-interest and then-secret loans.

The Fed outsourced virtually all of the operations of their $16 trillion embezzlement scheme to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo.  For their part the same firms also received trillions of dollars in Fed loans at near-zero interest rates. Morgan Stanley helped the Federal Reserve banker launder embezzled $trillions into AIG.

A more detailed Government Accountability Office investigation into corruption charges, securities fraud, embezzlement, money-laundering and conflicts of interest at the Fed is due on Oct. 18.

How the U.S. government can avert debt default on August 2, 2011

Did you know that the $14.5 trillion the Federal Reserve embezzled (US Congress only authorized $1.487 trillion) could pay the entire U.S. national debt – $14.346 trillion.  To avert default the U.S. government need only to seize the assets of the Federal Reserve banks (the big six U.S. banks collectively hold about $9.399 trillion in assets) and get back the $trillions that the Federal Reserve illegally embezzled and money laundered to their foreign banks and corporations.

The U.S. government can recover $trillions from the Federal Reserve and their banks through asset forfeiture.  Asset forfeiture is confiscation, by the State, of assets which are either (a) the alleged proceeds of crime or (b) the alleged instrumentalities of crime, and more recently, alleged terrorism.  Proceeds of crime means any economic advantage derived from or obtained directly or indirectly from a criminal offense or criminal offenses.  Crimes committed by the Federal Reserve banks against the United States and its people include; conflict of interest, securities fraud, embezzlement, fraud, money laundering, hoarding, profiteering, larceny, racketeering . . .

In 1982, a criminal forfeiture provision was enacted as part of the Racketeering Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1961, which provided for the forfeiture of all property over which the RICO organization exercised an influence.

The Money Laundering Control Act of 1986 added new felony provisions at 18 U.S.C. § 1956 for the laundering of the proceeds of certain defined “specified unlawful activity,” as well as prohibiting structuring transactions under 31 U.S.C. § 5324 (with the intent to evade certain reporting requirements). The law also added civil and criminal forfeiture provisions at 18 U.S.C. §§ 981 and 982 for confiscating the property involved in money laundering.

According to the Legislative Guide to the United Nations Convention against Transnational Organized Crime and the Protocols Thereto, “Criminalizing the conduct from which substantial illicit profits are made does not adequately punish or deter organized criminal groups. Even if arrested and convicted, some of these offenders will be able to enjoy their illegal gains for their personal use and for maintaining the operations of their criminal enterprises. Despite some sanctions, the perception would still remain that crime pays. . . . Practical measures to keep offenders from profiting from their crimes are necessary. One of the most important ways to do this is to ensure that States have strong confiscation regimes

Top 10 Banks in the United States

Institution Headquarters Assets
1. Bank of America Corp. Charlotte, N.C. $2,340,667,014,000
2. J. P. Morgan Chase & Company New York, N.Y. 2,135,796,000,000
3. Citigroup New York, N.Y 2,002,213,000,000
4. Wells Fargo & Company San Francisco, C.A. 1,223,630,000,000
5. Goldman Sachs Group, Inc. New York, N.Y. 880,677,000,000
6. Morgan Stanley New York, N.Y. 819,719,000,000
7. Metlife, Inc. New York, N.Y. 565,566,452,000
8. Barclays Group US, Inc. Wilmington, Del. 427,837,000,000
9. Taunus Corporation New York, N.Y. 364,079,000,000
10. HSBC North America Inc. New York, N.Y 345,382,871,000
As of Mar. 31, 2010.
Source: Federal Reserve System, National Information Center.

Senate rejects dueling spending plans, leaves legislative stalemate

By Alexander Bolton – 03/09/11 03:52 PM ET

Senators voted largely along party lines Wednesday to reject two proposals to cut federal spending, leaving a legislative stalemate that will have to be resolved briskly to avert another government shutdown.

A Republican proposal passed by the House that would slash another $57 billion from the fiscal 2011 budget failed 44 votes to 56. It did not receive a single Democratic vote.

Three members of the Senate Tea Party Caucus also opposed the bill: Sens. Jim DeMint (R-S.C.), Rand Paul (R-Ky.) and Mike Lee (R-Utah).

An alternative Democratic plan to cut $6.2 billion in federal spending failed to garner any Republican support. The vote was 42 to 58.

Ten Democrats and one independent, a mix of centrists and liberals, voted against the Democratic alternative for different reasons: Michael Bennet (D-Colo.), Kay Hagan (D-N.C.), Herb Kohl (D-Wis.), Carl Levin (D-Mich.), Joe Manchin (D-W.Va.), Claire McCaskill (D-Mo.), Ben Nelson (D-Neb.), Bill Nelson (D-Fla.), Bernie Sanders (I-Vt.), Mark Udall (D-Colo.) and Jim Webb (D-Va.).

Kohl, Manchin, McCaskill, Sanders and both Ben and Bill Nelson face reelection in 2012.

The current stopgap funding measure expires on March 18.

After the votes, Senate Majority Leader Harry Reid (D-Nev.) did not respond when asked if he was surprised that the Republican bill secured more votes than the Democratic measure. He did say he wants to strike a deal that would fund the government for the rest of the fiscal year, reiterating his opposition to passing stop-gap bills.

Lawmakers on both sides of the aisle said spending negotiations would begin in earnest after the test votes forced senators to take public stances on the competing proposals.

“Once it is plain that both parties’ opening bids in this budget debate are non-starters, we can finally get serious about sitting down and narrowing the huge gap that exists between the two sides,” Sen. Charles Schumer (N.Y.), vice chairman of the Senate Democratic Conference, said Wednesday in a speech at the Center for American Progress.

Schumer said the votes would allow leaders to resume negotiations from a new perspective.

“So these failed votes today are an opportunity. After they happen, leaders on both sides will be able to convince their rank-and-file of the need to compromise, and we can start afresh,” he said. “We need to hit the reset button on the debate.”

Senate Republican Leader Mitch McConnell (Ky.), however, accused the Democrats of not being serious about cutting spending.

“Paying lip service to the threat caused by the deficit is not a substitute for responsible leadership, and that job-destroying tax hikes on small businesses and American families are not the answer to out-of-control Washington spending,” McConnell said.

Wednesday’s votes did little to shed light on the impasse other than confirm that no senator is willing to buck his own party by teaming up with the other side.

Republican centrists voted for the House GOP proposal despite their misgivings.

Sen. Susan Collins (R-Maine) told The New York Times Tuesday: “There are a lot of cuts that I think are ill-advised. There are programs eliminated halfway during the year rather than phased out in an orderly fashion.”

Collins nevertheless voted for the package of cuts.

Democratic centrists said both bills failed to adequately address the nation’s budget crisis.

Manchin said Tuesday the Democratic plan “doesn’t go far enough” and “ignores our fiscal realities.”

But he said the House GOP plan was “even more flawed” because it “blindly hacks the budget with no sense of our priorities or of our values as a country.”

Sen. Ben Nelson criticized both proposals before the vote.

“Both bills are dead and they deserve to be dead,” said Nelson. “One cuts too little. The other bill has too much hate. Neither one is serious.”

Nelson criticized the House bill for restricting the use of ethanol in cars and trucks.

“Cutting back on ethanol at a time when gas prices are above $3.50 a gallon nationwide and rising fast is the wrong thing to do,” he said. “Worse, it’s a gift to foreign oil.”

House GOP leaders have begun behind-the-scenes negotiations on another short-term stopgap spending measure to keep the government operating beyond March 18.

A Senate aide close to the House GOP leadership said the measure would likely be similar to the two-week continuing resolution that cut $4 billion, which passed earlier this month.

House Republican leaders may take some of the $6.2 billion in cuts Senate Democrats included in the alternative package they put on the floor this week. The aide said it would be difficult for Democrats to vote against a short-term continuing resolution that includes the cuts they’ve proposed.

Democratic leaders, however, will insist on passing a long-term continuing resolution so they can concentrate on other legislative priorities, such as energy legislation and their jobs agenda.

Democrats also worry that passing a short-term government funding measure will force them to have to accept an additional round of cuts when it expires.

“I don’t like this death by a thousand cuts but I also don’t want a government shutdown,” Mikulski said last week.

House Speaker John Boehner (R-Ohio) issued a statement after the Senate votes, saying the public is “demanding that Washington rein in out-of-control federal spending” and criticizing the Democratic plan.

“It’s time for Washington Democrats to present a serious plan to cut spending,” he said. “In the meantime, Republicans will continue to keep our pledge to focus on the American people’s priorities: cutting spending and creating jobs.”

Josiah Ryan and Bob Cusack contributed to this article.

The Hill. This story was first posted at 3:29 p.m. and most recently updated at 4:37 p.m.