Will Grigg?s Liberty Minute

July 14, 2008

To the surprise of nobody who has followed the meltdown of our financial system, the federal government has stepped in to rescue Fannie Mae and Freddie Mac, the two government-sponsored enterprises that either own or guarantee more than half of all American mortgage loans.

Fannie and Freddie were instrumental in the creation of the Federal Reserve?s housing and mortgage bubble. By 2003 it became clear that the people running Fannie and Freddie had boosted profits through corrupt accounting methods ? a much bigger version of the same racket that led to convictions in the Enron scandal.

Together Fannie and Freddie have liabilities totaling roughly five trillion dollars. If they collapse outright, they may take the world financial system down with them. Bailing them out will mean a huge increase in consumer inflation -- as a prelude to the inevitable collapse.

Either way, Americans must gird ourselves for another government assault on our standard of living.

Let us take back the liberty wherewith Christ has made us free.