National Debt Raised In Housing Bill $800 Billion

Author:  Rob K. Blake        Published: July 28, 2008

The National Debt was raised $800 Billion this weekend in the new Housing Bill H.R. 3221. The National Debt ceiling can go as high as $10.6 Trillion or roughly 75% of the US Gross Domestic Product.

All this just to bail out Fannie Mae and Freddie Mac?

I won’t repeat my disdain for this bill about to become law, you can read my article, Housing Bill With GSE Bailout Goes To House Today.

However I will say, I’m getting a lot of agreement from some heavyweights like Catherine Austin Fits, former Assistant Secretary of Housing under George Bush Sr., who said in a letter to the editor of the Wall Street Journal:

Ladies and Gentlemen:

Thank you for Paul A. Gigot’s excellent editorial “The Fannie Mae Gang.” Creating a private company free to use federal credit to buy Congress and drain communities, pension funds and global investors is a bad idea indeed. However, it is not as bad an idea as bailing it out after it has finished making such a mess.

Sincerely Yours,

Catherine Austin Fitts
Solari, Inc.
Former Assistant Secretary of Housing, Bush I
Hickory Valley, Tennessee

National Debt Up $800 Billion

With Fannie and Freddie owning and insuring more than $5 Trillion in mortgage of which over $800 Billion are some form of less than prime credit loans, this National Debt ceiling has not seen it’s last increase I’m afraid.

The other bad thing about raising the National Debt is the weakening of the dollar. Foreign investors know if we are going borrow more, we are going to continue the Fed’s policy of weakening the dollar so we can pay them back with less valuable currency.

This country is headed for a financial fall and every time we could do something substantive, we settle for something easy.

Good Luck!

Author: Rob K. Blake