More on AIG Cover-up and U.S. Deficit

By Greg Hunter’s USAWatchdog.com 

This was a huge week folks.  The two big stories I wrote about were the AIG bailout and cover-up and the U.S. deficit.  I have a couple of really good stories to pass along that will give you some more perspective on both. 

First, there is a lot more to the AIG story that will come out in the future.  The Huffington Post ran a story called “Is Bernanke Hiding a Smoking Gun?”  It’s about how the Fed Chief was behind the bailout of AIG even though his staff recommended not to rescue the insurance giant.  Ryan Grim wrote, A Republican senator said Tuesday that documents showing Federal Reserve Board Chairman Ben Bernanke covered up the fact that his staff recommended he not bailout AIG are being kept from the public. And a House Republican charged that a whistle blower had alerted Congress to specific documents provide “troubling details” of Bernanke’s role in the AIG bailout.

Sen. Jim Bunning (R-Ky.), a Bernanke critic, said on CNBC that he has seen documents showing that Bernanke overruled such a recommendation. If that’s the case, it raises questions about whether bailing out AIG was actually necessary, and what Bernanke’s motives were.”   (more from the Huffington Post)

The other story I wanted you to read is by the former Comptroller General of the United States.  David Walker was the nation’s top accountant for 10 years.  He has been warning of problems with America’s massive budget deficits for years.  Earlier this week, I told you the new debt ceiling  will equal roughly the entire Gross Domestic Product of the U.S.   The budget deficit is now a whopping $14.3 trillion in red ink!   (click here  for the latest story on the new $1.9 trillion increase)   Walker says this is nothing but very bad news.  Walker’s piece is called “The Scary Budget Numbers”   and it is a very good and horrifying  read.

Comments
  1. Brad Thrasher

    Re: David Walker

    I’m an immigrant. Among the things that has always impressed me about the USA and the American People is their generosity. Search all of history and you will not find a more generous empire than the American Empire.

    In “The Scary Budget Numbers” Walker points out that we can’t afford guns and butter.

    For how long will the USA shoulder the sole burden of keeping the sea lanes safe for trade? How long will the Americans die in the Middle East and now Central Eurasia so that Europe, Japan, India and China have access to oil and gas?

    We can eliminate our dual budget and trade deficits immediately merely by imposing a tariff proportionate to the cost we bear of ensuring the safe passage of the goods and materials we import.

    In other words, quit asking Americans to go without their butter, stop the slide into insolvency and start forcing the world pay its share for its defense.

    The world needs America far more than America needs the rest of the world or its Empire. Our corporations need the Empire. The American People don’t.

  2. JJ

    Can both the conservatives and liberals be wrong on this?

    • Greg

      JJ,
      Yes and it is the fault of both parties for letting it get this out of control..
      Greg

  3. Dan

    (b) A person (debtor = corporate United States) gives value (new reorganization
    plan to pay) for rights (defenses against foreclosure) as security (promise not to
    foreclose now) for satisfaction (partial performance) of a preexisting claim
    (international bankers’ right to foreclose on the United States).
    (b) A person (creditor = international bankers) gives value (approval of a new
    reorganization plan for extension of time to pay) for rights (to foreclosure
    later) as security (promise not to foreclose now) for satisfaction (new payment plan)
    of a preexisting claim (terms of loan agreement = national debt).

    (a) A person (United States) gives value (certificated security = birth
    certificate = U.S. citizenship) for rights (to use U.S. citizen as surety) if he
    (United States) gets those rights (to use U.S. citizen as surety) in return for his
    (United States) commitment to extend (public) credit (and benefits) (to the U.S.
    citizen).
    (a) A person (U.S. citizen) gives value (pledge to United States) for rights (to
    operate in commerce in United States) if he (U.S. citizen) gets those rights (to
    operate in commerce in United States) in return for his (U.S. citizen) commitment
    to extend (public) credit (to be a surety) (to United States).

  4. George

    Why are we paying Hundreds of BILLIONS a year to keep troops in South Korea, the UK, Germany and Japan? If South Korea and Japan want security from Communist North Korea and China; let them pay for it instead of the American tax payer. Why should I pay so they can have a better economy?

    • Brad Thrasher

      We shouldn’t pay George. The world should be paying us for protection. If they won’t pony up willingly we should slap a tariff on every good and service we import equal to the cost of our maintaining safe passage of shipping. An alternative to a tariff is a VAT on imported goods and services.

  5. Eideard

    And we ended with a profit.

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