WASHINGTON, D.C. – Next week, on Friday, March 31, President Trump has a unique opportunity to do the right thing to benefit the middle class throughout America, for this generation as well as for future generations.
Next Friday, the Treasury Department is scheduled to make the next Net Worth Sweep, from the two government-backed mortgage giants Fannie Mae and Freddie Mac.
All President Trump must do is instruct Treasury Secretary Steven Mnuchen to inform Federal Housing Agency Director Mel Watt that the Net Worth Sweep is finished.
If Fannie Mae and Freddie Mac do not make their sweep payment to the Treasury on March 31, the two mortgage giants can begin rebuilding their capital base which protects taxpayers from ever having to bail them out in case of an economic downturn.
In the same executive order that President Trump signs to end the Net Worth Sweep on March 31, he can also remove the “executive privilege” President Obama placed on some 11,000 documents the Obama administration fought desperately in the courts to keep the American people from seeing.
As Infowars.com has reported, the Obama administration confiscated all earnings from these two Government Sponsored Entities (GSEs) in an unlawful and unconstitutional criminal scheme that has stripped Fannie and Freddie of the capital needed to continue operating safely, while depriving all private and institutional investors of the dividends due to them as stockholder owners.
In what now amounts to the largest theft of corporate dividends in U.S. corporate history, the Obama administration Treasury Department has confiscated over $260 billion from Fannie and Freddie since August 2012.
Why did Obama steal $260 billion from Fannie and Freddie?
First, in 2012, Obamacare was at risk going bankrupt after Congress refused to appropriate funds to pay the required subsidies to insurance companies to provide the low-income health insurance upon which Obamacare depended.
This left the Obama administration scrambling to find a spare $130 billion somewhere in the federal budget that could be diverted to pay the insurance subsidies for that purpose, even though it was illegal and unconstitutional for the Obama administration to do so.
Second, as Infowars.com reported from leaked documents from Sec. Geithner’s Treasury Department, the Obama administration was prepared to “wind down” Freddie and Fannie, knowing that taking all earnings from the two mortgage giants inevitably would leave the GSEs without sufficient capital to operate.
This effectively would have ended the middle-lass American Dream of home ownership because without Fannie and Freddie, no U.S. underwriter has been willing to offer the 30-year fixed-rate mortgage that millions of first-time home-buyers need to be able to both make the required down payment and afford the subsequent required monthly mortgage payments.
The leaked Treasury Department documents reveal that Sec. Geithner had planned that after Fannie and Freddie were closed, the mortgage market would be turned over to Wall Street and big banks – two of the Democratic Party’s largest sources of campaign contributions.
The result of the Obama plan would be to transform middle-class America from a nation of home owners to a “well-housed” nation of renters, on the model of major cities throughout the European Union.