Aperçu #12:  Common Sense ‘Freedom of Enterprise,’  so  confronting hostile Progressives, socialists, Fascists,
    • To expand liberty and so stimulate the economy, unruly  “Housing Acts,” AD 1934-2010 and onward, so not in Pursuance of the Constitution, must be struck down and made null and void.
  Such Progressive, socialist, Fascist concepts are beyond constitutional scope, where governance cannot go.

Once Upon Another Time:
     • A lender would contract a House loan.      A ‘qualified mortgage’ secured it.      Bond sales financed it.      A recompensive ‘foreclosure option’ deterred default.     That, and a ‘good faith repayment plan’ assured secondary market salability.
  • A successful buyer would pay the seller, fulfill the conditions of the mortgage, then gain in fee ownership.       And then continue to achieve pure equity growth via property improvements & asset price appreciation.       That’s the way of the marketplace.

       Ludwig von Mises AD 1881-1972, Economist
    “Socialists fail to grasp the sovereignty of the consumers in the market economy”.    “The market process is a daily repeated plebiscite,      And it ejects inevitably from the ranks of profitable people,        those who do not employ their property according    “To the orders given by the public”

  Milton Friedman AD 1912-2006 American Economist,
& Professor at the University of Chicago.
Served on the President’s Economic Policy Advisory Board AD 1981-89,
appeared in the 10 part series ‘Free to Choose’ on PBS    {also on YouTube}
Author of: ‘Free to Choose’ the series companion book
Author of: “Capitalism and Freedom”
 Friedman wrote: “The most important single central fact about a free market is:
 “That no exchange takes place unless both parties benefit“.

By AD 1929, good House loans had been easily gotten by qualifiers: such offered alternatives as secured “5-year balloon mortgages” with a 50% “loan to value  ratio,” or “fully amortized 12-year mortgages”.         To meet a prevalent necessity to refinance, best loans were made available @ 5%, competing with long term federal bond yields of 3.46%.       “Black Tuesday’s” financial shock abruptly changed orderliness, reify risks, unsettled housing, and began the vicissitudes of the Great Depression.

    Such that by AD 1933:  US unemployment datum was up @ 25% & other macroeconomic data were down: house prices 30% wages 42%, market prices 10% yearly, world trade 65%, and GDP 53%: dropping to $55 billion from $103 billion.           In AD 2010 equivalent dollars: that’s a GDP of  $738 billion down from $1.4 trillion, or the sum of a recent year’s budget shortfall.

  Ronald Reagan, 40th President of the United States
   “The nine most terrifying words in the English language are”:
   “I’m from the government and I’m here to help”.

 G–solvers were there to help:        

      • The Federal Reserve Board {FRB}, shrank the money supply 33%
      • Congress raised taxes & tariffs, so to cure the Inflationary Boom
Economy of AD 1921-1929.
      • The “New Deal” agencies: {FHA} & {FSLC}, wrote lender insurance
& rules AD 1934.
      • And then “New Deal” agencies: {AAA}, would support farm prices and the {NRA} would regulate wages & prices.
      • As so with “New Deal” helpfulness, recovery remained intermittently reluctant for over ten years.
      •  That until the added logistics of WW II upped the economy.
     • Thereof, the AD 1938 Great Depression unemployment rate of 19.0% fell to the AD 1944 wartime unemployment rate of 1.2%.

   Milton Friedman AD 1912-2006 American Economist,
  “Far from the depression being a failure of the free-enterprise system,
  “It was a tragic failure of government”.  

So temerariously, G–solvers  had pronged helpful projects into housing markets:
     • (1) Commonplace public housing,
     • (2) affordable subsidized housing, and
     • (3) 30-year monthly mortgage repayment plans.
     •  That to accommodate those of low incomes.
     • (4) lower 7-year adjustable rate mortgages {ARMs} which have a potential to balloon;
    • (5)  mortgages of “Sub-prime” standards of income & assets.
That to accommodate those of poor credit scores.
    • (6) low or no documentation loans, Aka “liar loans”: find the
       house, pick an income that satisfies it’s required
      “loan to value ratio,” and “sign here”.
     • (7) And 30-year interest only payment plans.       That to accommodate those of payment & paperwork fidelity difficulties
     • (8) land & housing rules to create “fire sales” for insider bargainers to deal.

     • “Sub-primes“ & liar loans were merged with High-grade mortgage backed securities [MBS}, so to be dangerously parceled as “Tranches,” and mercilessly sold in the secondary market to large investors worldwide.     That soon to be pervasive toxic weightiness, portended a developing ‘financial bubble’.     So, the revealment of spurious values, slowly turned a hurting “hot potato,” into the agonizingly anticipated ”
AD 2007-2009 financial upheaval”.
 That moment of acknowledgment: it’s worthless paper!   

      • Ergo, a sharp fall in asset values; a liquidity & solvency crisis, tumultuous recession.
      • Thereof, a disruption of the usual smooth recycling of funds drastically affected those already equity inflated & overbuilt housing markets.       Thus, the anticipated normal high demand & robust sales quickly disappeared.
      • Reactively: a progressive “housing recession,” spread about American localities,  less widespread of that of AD 1929-1939
     • However, AD 2007-2009 were Entitlement Times {ET} of even more tough regulations, monetary manipulations, bailouts, and the  proliferation of  G–solver Progressive entities.
And the prime movers of it all:
“politically afflicted” {GLCs}
       Freddie Mac (FHLMC)
  & Fannie Mae  (FNMA)
      • “All that intrusiveness & subsidizing for nothing:”
          America still felt The Great Recession.        

           Thomas Jefferson, 3rd United States President
  “The policy of the American government is
           to leave their citizens free,
            “Neither restraining
nor aiding them in their pursuits“

  And So, Way Down and Very Dirty:           

     •  (FHLMC) & (FNMA), had diabolically dwelt in, deviously exploited; and  ultimately had been subjugated by their own infected  [MBSs} bubble.
    • Thereof, “An exposé of corrupted goofs,” plunging cash reserves, high inventories & standstill resales, precipitated bankruptcy.
    • And bailouts, aka $224 billion of federally bought out losses; takeovers, and “foreclosures” followed, in failed attempts to “put it back together again”.
   • Thereby, the yet broken but unlawfully active (FHLMC) & (FNMA), must be:
    (1) released from the control of the dedicated Federal Housing Finance Agency (FHFA),
    (2) rechartered as one truly private enterprise: a mission statement that would enable honest competitiveness in the secondary mortgage markets,
    (3) meticulously reorganized to satisfy all remaining self-inflicted burdens & to sever overlapping governmental impositions.
    (4) openly audited to facilitate a negotiated unconditional sale at free market prices.  

George Washington, first President of the United States,
                      “Government is not reason;
it is not eloquent;
it is force”
     ‘Like fire,
 it is a dangerous servant
and a fearful master‘

   So, G–solvers exercised unconstitutional powers:
 • Thence, some $700 billion of borrowings,  had been forcibly loaned to ill-advised Bankers.
That so banks could provide the  “fractional reserve equity” regulators had so ordered.
And so national “Big Banks {BBs} would be advantageously readied to increase market share & not ever fail”.
 That via H.R. 1424, Sec I, AD 2008, aka the ruling class’s “money tree” for special needs.
Alike the allotting of $182 billion to insider AIG.
“The failed get bailed, the hailed get nailed”.

      • Elsewhere, some nine trillion dollars, had come out of nowhere to be loaned “worldwide to investment banks & central banks”.
That so the weakest of statist managed banks could successfully suppress and then preclude money flight.
That done via the {FRB}, which has been on call to “digitally print fiat money,” spontaneously & endlessly.
       • The {FRB’s} easing of monetary policy to about ‘zero interest’ rates, buying low value assets at near full price, and buying new federal debt, has been intended to boost asset prices enough to restore solvency and to improve the economy.
      • So awaiting ominously, has been a currency devaluation & inflation scheme, for when “zero interest” normalizes.
      • And plans to convert individual retirement funds to federal debt when {FRB} ends the buying of debt instruments.
      • And more borrowings just came to be for politically directed payoffs of $831 billion to select public sector Unions & business cronies who needed bailout support {BS}.
      • That done via the Recovery Act AD 2009, but “Gangster Governance” {GG}: Congress & the Presidency in the same hands, doing whatever it wants, whenever it wants, disavowing Constitution, Oath, and Constituency.
     • “All that borrowing & spreading money about, for nothing” must not be considered governance at all.     And must be so brought to law”             

  Milton Friedman AD 1912-2006 American Economist
         “In the end the effects are precisely the opposite
of the objectives of the reformers
and generally do not even achieve the objectives
of the special interests.
          Yet the activity is so firmly established
and so many vested interests are connected with it,
that repeal of the initial legislation is nearly inconceivable.
          Instead, new government legislation is called for
to cope with the problems
“Produced by the earlier legislation and a new cycle begins”. 

 Frédéric Bastiat AD 1801-1850  author:  “The Law”  &  “The Economics of Freedom”
Bastiat wrote: “Socialism, like the ancient ideas from which it springs,
confuses the distinction between government and society.
 Bastiat wrote: “Everyone wants to live at the expense of the state.
 They forget that the state lives at the expense of everyone.”
 Bastiat wrote: “Now, legal plunder can be committed in an infinite number of ways.
Thus we have an infinite number of plans for organizing it:
 tariffs, protection, benefits, subsidies, encouragements, progressive taxation,
  public schools, guaranteed jobs,  guaranteed profits, minimum wages,
 a right to relief, a right to the tools of labor, free credit, and so on, and so on.”
Bastiat wrote: “Government is the great fiction, through which everybody endeavors to live at the expense of everybody else.”

• Socialism clearly cannot be refined,
reformed, nor made better;
it is evilness throughout,
founded on the destruction of individual human rights
and the using of other people’s money to bribe for votes. 

     • “DC Government is Progressive lies, pretending everybody can live at the expense of everybody else,”  or just off the evil rich.
     •  the debate is now how hight the minimum wage goes, but no longer about the Supreme Court decision finding it unconstitutional.
    •  the debate is who takes care of you: family, doctors, drugs, or government dictates.
    •  the debate is which political leaders have character or virtue, or obey to oath.
    •  the debate is which of the Bill f Rights won’t matter, now that the 2nd amendment has been demeaned by government policy and Act of Congress.

Thomas Jefferson, 3rd United States President
Jefferson wrote to J. Correa de Serra, AD 1820
    “Nothing is so important as that America shall
separate herself from the systems of Europe,
and establish one of her own. Our circumstances,
our pursuits, our interests, are distinct.
The principles of our policy should be so also.
    All entanglements with that quarter of the globe
   should be avoided,
if we mean that peace and justice
shall be the polar stars of the American societies”.

      James Monroe {5th} President of the United States
        “The best form of government is
that which is most likely
to prevent the greatest sum of evil.”

               Ludwig von Mises AD 1881-1972, Economist
    • “Socialism means full government control
of every sphere of the individuals life”.
    • “Socialism is not an alternative to capitalism;
         “It is an alternative to any system under which
men can live as human beings“.
    • “Every socialist is a disguised dictator”
    • “Socialism would result in complete chaos and
• “The disintegration of social cooperation
under the division of labor”

     • History is replete with stories of wealth
being confiscated by war,
pilferage, enslavement, indenture, despotism.
•  America had become the first on earth to promote free enterprises & free markets that give services to others, to so build wealth.
• That is our legacy of liberty & freedoms in action.

• That secret has been intellectually known
      since the failed socialistic experiment of
the “egalitarian Mayflower Compact of AD 1620″.
These early American immigrants were honorable people
of faith who realistically recanted a failed idea.

                 Plato, 424 BC-348 BC:
laid the footnotes to European Philosophy & Science,
founded the Academy in Athens.
            “Ignorance, the root and stem of all evil.

• That colony’s severe death causing famine of AD 1623
    ended the imposed Communal farming.
Surviving colonists were speculatively given
ownership of one acre of land.
Responsively, thriving free enterprises began.
   Thereof, corn became currency
for a so developing trade of abundance.
   Individual Freedom had reversed
the collectivists three seasons of deadly failure.

                   Edmund Burke (AD 1729-1797)
“Renown Irish Political Philosopher
           and Supporter of the American Revolutionaries”
“The only thing necessary for the triumph of evil
is for good men to do nothing”

      • So, “We the People,” the posterity of the founding fathers,” must courageously believe in ourselves, unite in freedom, and return to our beginnings of endowed individual liberty, and the pursuit of property.      {AvC}. 

     John Adams {2nd} President of the United States
{1st} Vice-President of the United States
                ‘Liberty cannot be preserved without
general knowledge among the people’.  

    James Monroe {5th} President of the United States
remembered for the Missouri Compromise (AD 1820)
    & the Monroe Doctrine (AD 1823)
      “It is only when the people become ignorant and corrupt
          when they degenerate into a populace,
            that they are incapable of exercising their sovereign“

           Ludwig von Mises AD 1881-1972, Economist
        “Government is essentially the negation of liberty”
        “Liberty is always freedom from the government”.

              Claudius 10 BC- 54 AD   Roman Leader
          “No one is free who doesn’t lord over himself”.

     Thucydides ( ca. 460-395 BC ) Athenian General
     Greek Historian of the Peloponnesian War
    “The secret of happiness is freedom”.
         “The secret of freedom is courage”.

          John F. Kennedy, 35th United States President
    “Let every nation know, whether it wishes us well or ill,
         that we shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe, to assure the survival and the success of liberty”.      

“Power to we the people”.

So say it again:

       “We the people … to secure the Blessings of Liberty to ourselves and our Posterity do ordain and establish this Constitution for the United  States of America…”      

It’s our heritage,
and America’s Ethos:

     • So “free Americans have voluntarily embraced ‘free markets’ to pursue the blessings of  ‘free enterprise’ opportunities.
by:
    [1]  taking risks,
   [2]  committing to hard work and perseverance,
   [3]  developing associations,
   [4]  cultivating possibilities,
   [5]  captivating dreams,
   [6] effecting exceptionalism.
   [7]  reaching frissons of success.

      • That has been America’s saga of economic growth and prosperity.
      • “Thereof, each of such doers, needs be given a helping hand when sought, encouraged, and esteemed”.      “Life so is good”.

Aperçu #12:  Copyright  ©  2010  by jimlewisruns
All Rights Reserved
Twitter.com/jimlewisruns 

           Dr. Benjamin Franklin AD 1706-1790
             “The First American,
           Franklin said: “energy and persistence conquers all things”                        Franklin said:  “A republic, if you can keep it.” 

       Marquis de Lafayette  AD 1757-1834
Major-General, George Washington‘s aide-de-camp, & negotiator of vital France aid & arms,  Hero,
  “Humanity has won its battle. Liberty now has a country.”

            • So, “We the People” of America must boldly go where Americans have gone before, to return, strugglingly, to a ‘land founded on liberty,’ so ordained and established by the ‘founding  brothers’ in the year of our Lord, AD 1789,
              • Yes: “We the People” of America must boldly rid America of a century of tyranny and constitutional abuses,
 and thereof, incompetent progressive days of rule must be fittingly numbered.

.                       

Aperçu #12 jimlewisrun.com          www.facebook.com/jimlewis     www.linkedin.com                               Twitter.com/jimlewisruns