WASHINGTON, D.C. – Treasury Secretary Steven Mnuchin confirmed Infowars.com reporting was correct in an interview with Maria Bartiromo televised by Fox Business on Monday morning, May 1, 2017.
In response to a direct question, Mnuchin acknowledged it was true President Obama did engineer the “Net Worth Sweep” (NWS) in August 2012 to divert funds from the two Government Sponsored Entities (GSEs) to pay for Obamacare, after Congress refused to fund the low-income insurance subsidies critical to keep afloat the Affordable Care Act (ACA).
“There is a Twitter conversation going on, and it has been going on for some time, about how President Obama needed money for Obamacare and he took from Fannie and Freddie. Is that true?” Bartiromo asked Mnuchin.
“It is true,” Mnuchin replied.
“They [the Obama administration] used the profits of Fannie and Freddie to pay for other parts of the government while they kept taxpayers at risk,” Mnuchin answered.
On March 13, 2017, Infowars.com reported a careful analysis of the Treasury Department’s balance sheet for Fiscal Year 2013 documenting how the Obama administration diverted into Obamacare billions of dollars that Treasury confiscated from Freddie and Fannie earnings.
On Aug. 17, 2012, the Obama administration finalized the amendment of the Treasury Department’s Senior Preferred Stock Agreements with Fannie and Freddie that deprived private and institutional investors of their legally due dividend payments.
This enabled the Obama Treasury Department to confiscate billions of dollars in Fannie and Freddie earnings, in what is known as the “Net Worth Sweep,” or NWS.
The point is Congress never funded any taxpayer funds to pay the low-income insurance subsidies that are at the heart of making the ACA work.
What is at issue is Section 1402 of the ACA – a section written to provide federal subsidies to insurance companies for insurance purchased on state insurance exchanges to cover the difference between the capped maximum a low-income purchaser could be expected to pay and the amount the insurance cost.
Without funds provided by Congress to pay the low-income insurance subsidies under 1402, Obamacare collapses almost immediately.
On May 12, 2016, U.S. District Judge Rosemary Collyer, in the case U.S. House of Representatives v. Burwell, ruled against Health and Human Services Secretary Sylvia Matthews Burwell.
Judge Collyer decided HHS Secretary Burwell had no constitutional authority to divert funds Congress appropriated to one section of the ACA to fund Obamacare subsidy payments to insurers under another section of the ACA, Section 1402 – the clause defining the insurer subsidies – when Congress specifically declined to appropriate any funds to Section 1402 for paying the insurance subsidy.
“Paying out Section 1402 reimbursements without an appropriation thus violates the Constitution,” Judge Collyer concluded.
“Congress authorized reduced cost sharing but did not appropriate monies for it, in the Fiscal Year 2014 budget or since,” she stressed.
The Obama administration appealed the District Court decision in U.S. House of Representatives v. Burwell to the U.S. Circuit Court of Appeals, deciding on its own authority that federal funds could continue to be diverted from other budgetary purposes to continue paying the insurance subsidies as long as the case was under appeal.
Infowars.com has reported that all the Trump administration needs to do to end Obamacare almost immediately is to drop the Circuit Court appeal in Burwell, whit the result the District Court decision would become established law.
By dropping the appeal, the Trump administration would rule out any further diversion of federal funds to pay the ACA insurance subsidies, with the result Obama care would implode.