My fellow citizens, I wish to implore you; do not be distracted by the most recent “scandal” being paraded in front of you during the past week. It is just a “smoke and mirrors” tactic to keep your attention focused on something other than what’s really going on.
The $165 million in AIG retention bonuses is such a small amount of money compared to the trillions doled out in the form of bailouts and stimulus. It pales in comparison to the $3.8 billion in bonuses Bear Sterns paid out to its executives at the end of 2008. It means very little when compared to the millions in anticipated retention bonuses to be shelled out (at taxpayers expense) to federally funded Freddie Mac and Fannie Mae executives who are largely responsible for the housing market collapse. It means nothing!!
The feigned self-righteous indignation being leveled at AIG and its bonus recipients is a ploy to keep you distracted. It’s just an act for your benefit. The government is playing a shell game and many Americans are losing track of the ball. Don’t fall for it!
In reference to the AIG bonuses, President Obama stated on Monday, “Under these circumstances, it’s hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat?”
There’s a mob mentality building which is willing, once again, to allow the federal government to violate the constitution in the name of fairness. Cooler heads must prevail. We must look beyond what the government and the mainstream media are telling us. We must avoid becoming sheep, easily led astray, and educate ourselves. We must stand up and say enough is enough!
As I said before, the real scandal is not the AIG bonuses. Here’s why:
First, the AIG bonuses were protected in the $787 billion stimulus bill that Nancy Pelosi and Harry Reid pushed through congress in February. Remember? The stimulus bill was crucial to our nation’s survival…it was an emergency…it had to be passed immediately without anyone having the chance to read it. Within twenty-four hours of the house and senate versions being merged and tweaked it was passed by congress (thanks to three turn coat RINOs). Four days later, the president signed it into law.
Hmm…do you think if congress and the American people would have had those four days to review what was actually in the final bill, it would have been blocked until the AIG bonuses and a lot of other unnecessary pet projects were eliminated? Of course! That’s why no one was given the necessary time to read it first.
According to Newsmax.com, it was Democrat Senator Christopher Dodd "...who inserted language — known as the Dodd amendment — in the $787 billion stimulus bill that allowed all bonuses awarded before February 11, 2009, to be paid to AIG executives. That very amendment, which is now law, is now the chief hurdle to government officials who want to recover that money.
The amendment was meant to restrict executive pay for bailed-out banks, but it also included the exception for 'contractually obligated bonuses agreed on or before Feb. 11, 2009.'"
So what's the problem? These executives had a contract and their bonuses were part of that contract. I think the law is pretty cut and dry...unless you wan to score politcal points by inflaming an uniformed electorate.
Second, the real scandal is not the AIG bonuses; it’s the fact that the federal government used AIG as a clearing house to funnel billions in bailout dollars to foreign and domestic entities, so that they wouldn’t have to make an accounting to the American taxpayers.
Of AIG's $173 billion bailout monies $44 billion went to American entities while $62 billion went to overseas entities. Some of these recipients and their amounts received were:
- $13 billion to Goldman Sachs
- $7 billion to Merrill Lynch
- $5 billion to Bank of America
- $13 billion to banks in the United Kingdom
- $17 billion to banks in Germany
- $19 billion to banks in France
- $5 billion to banks in Switzerland
Wow...as an American taxpayer...what concerns you more; the fulfilling of $165 million in legally binding contracts that were protected by a law passed in February or $106 billion of taxpayer dollars being funneled to foreign and domestic entities in secret?
Third, on Wednesday, while the administration and the mainstream media were ramping up their rhetoric to whip the American taxpayers into a frenzy over the AIG bonuses, the Fed ramped up its printing of more dollars to the astronomical amount of one trillion greenbacks. Why? So that the Fed can start buying up its own Treasury Bonds and mortgage debt.
According to Bloomberg.com, "Fed policy makers said yesterday they plan to buy up to $300 billion of U.S. government bonds and step up purchases of mortgage bonds, expanding the central bank’s balance sheet by as much as $1.15 trillion. The extra supply of dollars threatens to overwhelm investors just as the budget deficit swells."
What's more important, $165 million in contractually obligated bonuses which were protect by congress and the Obama administration to begin with or the destruction of the U.S. dollar?
Finally, in an effort to correct their own incompetence, the Los Angeles Times reported that, "...the House of Representatives on Thursday passed a bill to recoup the lion's share of the $165 million in bonuses paid to executives of American International Group Inc...
...The House tax measure, hurriedly drawn up on the orders of the Democratic leadership, imposes a 90% levy on those who were paid executive bonuses if their families earned more than $250,000 annually and if their firms, such as AIG, received more than $5 billion in federal bailout funds. It passed by more than a two-thirds majority, 328 to 93."
In a desperate attempt to prove their for the little guy, the House of Representatives took no thought of trampling on the Contitution and using the U.S. Tax Code to target a specific group of people. Doesn't this scare anyone? Doesn't this cause an alarm to go off in your head? If they can try and do this to a small group of people they deem as evil capitalists and the bane of society, what will they try next? Guns? Freedom of Religion? Freedom of Speech? These are all rights that they have talked about limiting. Will they?
Many Americans were angry with President Bush for what they perceived as his administration’s trampling on constitutional rights in the name of protecting the American people from further terrorist attacks. Well, by the looks of it, we better hang on to our hats because, it appears, the actions of the current administration are going to be far worse in the name of fairness.



