Thursday, May 21, 2009

GMAC to Get a Fresh Bailout

The Wall Street Journal reports today that the Treasury Department is poised to inject more than $7 billion into GMAC, the first installment of a new government aid package that could reach $14 billion, according to people familiar with the matter.

"As a result of the move, the government within months could end up owning both GMAC and General Motors (Government (Obama) Motors. The GM plan being devised by President Obama's auto task force calls for the government to emerge with a majority stake."

"The GMAC funding is an illustration of how rapidly the government effort to rescue the U.S. auto industry is escalating in cost and scope. What began as an emergency batch of loans to GM, Chrysler and GMAC in December -- totaling just over $20 billion -- now looks likely to balloon well beyond $50 billion and could approach $100 billion by the end of the year." Unbelievable. The auto industry is fast absorbing financial resources that the Treasury had previously directed to the banking sector.

These measures will NOT work. Period! They will bankrupt this nation. No, these measures of bailout after bailout have already bankrupted this nation. Our total national debt (federal, state, municipal, and consumer) has made us a servitude nation to the rest of the world, especially China. Proverbs 22:7 states, "The rich rule over the poor, and the borrower is servant to the lender." In other words, the nation who has the gold makes the rules. Folks, America does not have any gold. We have sold off our birthright, and we don't even realize it.

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