Friday, December 26, 2008

Sen. Inhofe: Paulson Made Martial Law Threats

Business and Media | At the time of the votes on the $700-billion bailout bill, which finally passed Oct. 4, there were dire warnings of calamity if the bill failed. Rep. Brad Sherman, D-Calif., said martial law would have to be enacted to keep public order if it didn’t pass. Rep. Jo Bonner, R-Ala. said the aftermath would be comparable to the scenes in New Orleans after Hurricane Katrina.

Sen. James Inhofe, R-Okla., revealed on “The Pat Campbell Show” on 1170 KFAQ, a talk radio station in Tulsa, Okla., where some of these ideas in Congress may have originated. He divulged details of a conference call with Treasury Secretary Henry Paulson from mid-September, which may be behind why some members of Congress were warning of catastrophe.

“We had a conference call early on,” Inhofe said on Nov. 18. “It was on a Friday I think – a week and half before the vote on Oct. 1. So it would have been the middle … what was it – the 19th of September, we had a conference call. In this conference call – and I guess there’s no reason for me not to repeat what he said, but he said – he painted this picture you just described. He said, ‘This is serious. This is the most serious thing that we faced.’”

According to Inhofe, Paulson said this would be far worse than the Great Depression - a time when unemployment was at 24.9 percent and U.S. gross domestic product (GDP) suffered steep declines.

“He said, ‘This is going to be far worse than the Great Depression in the ’30s,’” Inhofe said. “And all these things – he was very descriptive of exactly what would happen if, if we didn’t buy out these toxic assets which he abandoned the day after he got the money.”

However, nearly a month and a half later, Paulson changed course on his bailout plan. Instead of buying up troubled assets as he originally proposed, the former head of the investment bank Goldman Sachs (NYSE:GS) announced on Nov. 12 the Treasury would instead on injecting capital directly into banks, upsetting some lawmakers in Congress. Paulson had to defend this decision before the House Financial Services Committee on Nov. 18.

Inhofe also appeared on CNN’s Nov. 18 “Lou Dobbs Tonight” and said even as senior member of the U.S. Senate he just found out only $60 billion of the initial $350 billion amount remains. He also said he feared the amount of power Paulson has to do with the $410 billion remaining.

“I have introduced a bill and it’s called Senate Bill 3683,” Inhofe said. “And, it would freeze any further spending. And if you look at what’s just left now and the $350 billion that would come up, I’m very much disturbed because there is a process to enter into that, to access that $350 billion. That means if we’re not here in session, then it’ll be done unilaterally by the Treasury Department.”

“When in the history of America has one unelected person had the control of a massive amount of money like this – total control to do with whatever he wishes?” Inhofe asked.

5 comments:

Anonymous said...

I just could not depart your site prior to suggesting that I actually
loved the standard info a person provide for your guests?
Is going to be again incessantly to check up on new posts

Feel free to surf to my page; Juegos

Anonymous said...

I am genuinely glad to glance at this weblog posts which carries plenty of useful facts, thanks for
providing such information.

Take a look at my homepage bancuri cu duban

Anonymous said...

Write more, thats all I have to say. Literally, it seems as though you relied on the
video to make your point. You obviously know what youre talking about,
why waste your intelligence on just posting videos to
your weblog when you could be giving us something enlightening to read?


Feel free to visit my site - Juegos Online Gratis

Anonymous said...

It's the best time to make some plans for the future and it is time to be happy. I've read this
post and if I could I wish to suggest you some interesting
things or tips. Maybe you can write next articles referring
to this article. I desire to read even more things about it!


Feel free to visit my page :: jocuri online cu masini

Anonymous said...

Your method of describing the whole thing in this paragraph is truly good,
every one be able to simply understand it, Thanks a lot.


My web page ... Juegos Online Gratis

What It Means To Live In Netanyahu's America

al-jazeera  |   A handful of powerful businessmen pushed New York City Mayor Eric Adams to use police to crack down on pro-Palestinian stu...