The Democrats of the House of Representatives recently passed a bill which would give the President and the Federal Reserve Board members that he appoints the authority to take over and/or liquidate any financial company deemed “in danger of default,” so long as failure of the company may cause “adverse effects” to the economy or to the welfare of minorities. The language of the bill is actually that vague.
The process of acquiring a company goes something like this:
Step 1: The Secretary or Chairman of the Federal Reserve Board requests a vote by the Board (all of these people are appointed by the President) on whether or not the default of a financial company poses some risk to the economic “conditions or stability” of the United States, or to the economic “conditions or stability” of minorities.
Step 2: The Secretary of the Federal Reserve (who originally requested the vote) takes the recommendations and goes to deliberate with the President (who appointed all these people to begin with). Together, the President and Secretary make a determination as to whether the financial company is “in danger of default” and whether this default would have “adverse effects on financial stability or economic conditions in the United States.” Together, they determine what to do about the company.
Step 3: At this point the Secretary appoints a “Corporation” which takes financial control of the company, eliminates its management, and liquidates it, as seen with GM. This Corporation expires after a year, but there is no bar against the Secretary appointing a new one, extending the time frame of its control indefinitely.
All of this information can be found in sections 1603 and 1604 of H.R. 4173 at the Library of Congress Database.
With the language as to what constitutes a “danger of default” and what constitutes “adverse affects” left so vague and entirely at the discretion of the President and his appointees, under this bill, the President could hypothetical engineer the liquidation of any company which does not adhere to some set of policies. This leaves absolute control of the policies of financial institutions in the hands of the President. Control of all financial lending institutions means control over anyone who would ever want to take out a loan, which is pretty much everyone.
“What’s that? Your business doesn’t engage in affirmative action hiring? Well, we’re just going to have a conversation with your lenders, who might be in danger of default. Might you want to reconsider your hiring practices?”
“Oh? Your media station is going to criticize our administration? Well, let’s see what your lenders and investors have to say about that.”
“Well, we’ve decided that the voting record of your demographic poses a threat to the State, so financial institutions aren’t going to be letting you take out mortgages anymore.”
Signing of this bill into law would truly mean a total government takeover of our nation’s economy, and by proxy, our lives. Absolute control of everyone would be in the hands of the President. This would be Fascism.