“The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
No where within the Constitution is the executive branch allowed to grant bailouts to private industries; bailouts which comes with restrictive provisions to restrict pay, raises, etc. to the corporate executives; which controls who runs the corporation/industry. The initial argument to this statement would be that Congress granted the bailouts in the 110th Congress, which is true to the tune of 700 billion dollars. This would arguably be allowed by the 10th Amendment by the people allowing this action via their representation in the legislative branch. However, the Treasury then turned around issuing extra securities to borrow money from the economy, then loaning the money to the Federal Reserve in special deposits so that the Federal Reserve readdresses these funds to make bailout purchases of many types of securities. This changed the total bailout from the $700 billion that Congress appropriated for the auto business in 2008 to $1.2 trillion. This doesn’t even include the Federal Reserve mid-October of 2008 promise of $540 billion to bail out money market funds, which the Federal Reserve could not cover by the sale of other assets. With the current administration’s bailout processes for mortgage, bank/credit and automotive corporations/industries, this has resulted in additional monetary increases and more Treasury borrowing. Now we have a massive bailout financed both by Treasury borrowing (in order to avoid inflation) and a Federal Reserve increase of the monetary base (which promotes future inflation anyway). All of the current administration’s bailout “aid” has resulted in a budget deficit in January, 2009 of 455 billion dollars to 12.104 trillion dollars today and growing thru interest alone. All because the executive branch, beginning in 2008 and ongoing today, has usurped the powers granted to the legislative branch only (to borrow money on the credit of the United States, to coin Money, regulate the value thereof, etc.) in the name of their Progressive/Socialist movement designed for the future of our republic. And all because our legislative branch did not hold the executive branch accountable for their usurpation of the powers granted by our Constitution. There have been too many events in our country’s history since the early 1900’s where our U.S. Constitution has been violated by the executive branch in the name of the slowly evolving Progressive movement where We, the People have not held our government accountable. We, the People MUST take all peaceful actions granted to us by the U.S. Constitution to preserve our republic and hold the three branches of government (on all levels from local to federal) accountable to their actions or inactions. Otherwise, we will have a government structure and function which does not represent the republic granted to us by the U.S. Constitution and by the Laws of Nature (God’s Law).