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Congressional Candidate: Gov't Bailout Illegal

Rosalind Helderman

Republican Congressional candidate Peter James said yesterday that he would spend the day as a process server, handing out legal filings to the White House, the Department of Treasury and congressional offices.

James, an avowed libertarian challenging Democrat Donna F. Edwards in Maryland's 4th Congressional District, agreed to help a group called We the People serve papers in a lawsuit challenging the not-yet-passed $700 billion Wall Street bailout plan as unconstitutional.

James has been warning for months about the possibility that massive debt could bring down the American financial system, as he and Edwards ran against one another in a June special election to replace longtime incumbent Rep. Albert R. Wynn. Edwards won that contest for the Prince George's and Montgomery district, with more than 80 percent of the vote.

James believes the financial market crisis proves his point.

"This is basically what I've been saying," James said. "We've got this enormous overhanging of debt."

Will 4th district voters reward James for his early warnings on the economy? Well, maybe. But they might be more skeptical about the rest of his hands-off attitude toward government. To keep his interactions with government and financial institutions low, James has no driver's license and pays no taxes. He encourages the creation of local currencies and opposes the bail-out because he believes that it is illegal for Congress to take any action not specifically outlined in the Constitution.

Edwards, who has been in office since June, has voiced some reservations about the Bush Administration bailout proposal, noting the need to rescue Main Street and not just Wall Street and urging Congress not to move so quickly that the plan is flawed.

By Rosalind Helderman  |  September 25, 2008; 7:52 AM ET
Categories:  2008 Elections , Rosalind Helderman  
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It seems like Iraq all over again. Don't think just vote or you are directly responsible for this failure. And of course let's not forget unpatriotic.

What we need is a government quarterback that is independent, impartial, and objective, to get our US Government through this mess.

Secretary Paulson is questionable on any of these criteria. He is perhaps a wonderful person, from what I can tell, but his 2006 thanks annual salary and good bye gift from Goldman Sac at near $170,000,000 certainly adds question marks to his objectivity.

Secreatry Paulson is not only perhaps representing Wall St to Congress, he is Wall Street.

Posted by: Richard Miller | September 25, 2008 9:33 AM | Report abuse

Finally someone with the ability has the courage to question and put the brakes on on this. Thank you Mr. James.

Posted by: BulletBill | September 25, 2008 10:12 AM | Report abuse the housing market, I believe a bailout will not help in the housing market alone. We need to also "bail out" the oil companies that have also driven the economy to its brink. Oil has almost become a monopoly against its own. The housing market wouldn't be in the shape its in if it weren't for the price of oil and how much it has risen within the last five years....

Posted by: Anonymous | September 25, 2008 11:00 AM | Report abuse

So much for the hands off,market approach. The bush(s)' administration economic core operatingsystem is just not working/ How can that guy keep a straight face. I hope history puts the blame for this meltdown and thievery squarely where it belongs; On The Bush name. McCain is in so far over his head, I almost feel sorry for him. It's times like these, we need the brightest(non-patrisan) minds available to fix the screwed up mess Reganomics have left us with. Remember, there has been a Bush in the whitehouse for 90% of our debt. How much debt do we now have?

Posted by: James Patterson | September 25, 2008 12:07 PM | Report abuse

The proposed $700 billion bailout will go down in history as the first and only time the average American people had the chance to make America work for them. If the democratic congress and the american people don't take advantage of this once in a life time moment. They will surely regret it and they will surely remain poor and unspoken for. If this is such the emergency as Bush makes it out to be, then it has got to be the opportunity of a lifetime for the average American to finally use their voice to help the middle class and the poor reap as they have never reaped before the financial stability that the rich has been reaping for so long. It is now time to propose to Bush, proposals that would eleminate half of all earnings on investments to go directly to the middle class and the poor. This is the only opening to the middle class and the poor to take part in wall street that they will ever see again. This is the only time that congress will have to make a real change in the way the Average american is treated here in the United States. The rich believe that low income and poor must exist to keep America functioning. I believe that all American sallaries should be doubled what it is now and we will still continue to work and america will continue to function. I believe there should not be homeless people in America and we should have free universal healthcare. I believe all schools should be our top priority and they are equipted that all student can achieve their highest potentials. I believe it is time to act now while we have them by the horns.

Posted by: Wisdom | September 25, 2008 12:20 PM | Report abuse

the campaign staff were surprised and unaware that there is a concept called scrutiny or judicial reviews of the constitutionality of the final law enacted.

Posted by: reader | September 25, 2008 12:31 PM | Report abuse

"Yes, I voted for the $700 billion Bush bailout, before I voted against it." I can just hear some future candidate for President uttering these words.
Sterling Greenwood
Aspen Free Press

Posted by: AspenFreePress | September 25, 2008 12:32 PM | Report abuse

This Bailout will only help the Rich. People will continue to lose their homes, jobs etc. Banks will be doing better that will be it. Congress will not listen to Americans. Alot of people would have to go to DC and yell. The people are not that organized. Also we are too busy trying to work to keep food on the table at least. Besides most people don't have the time or the money for the gas to go to DC. Just the way Congress likes it! The Rush for this bill is Congress is going on vacation for the rest of the year. How many Americans can say that in September?

Posted by: Anonymous | September 25, 2008 12:39 PM | Report abuse

There is no possible way that this will help the American people. This is only a Wall Street coup d'etat. What this means for the average American is that your average cost of living will skyrocket as the dollar crumbles under an enormous national debt brought on by the shortcomings and shortsightedness of a paper Congress led by a seemingly corrupt, elitist, and unethical Bush administration. The blame is not to be placed entirely here though, as it is the lenders and indeed many of the borrowers themselves that created this situation. If you move from your home so that you can buy a bigger home, that is great... if you can afford it. If you have to lie on your loan forms about your income so that you can live in a home that is above and beyond your means, then there is absolutely no reason that you should be bailed out of a debt caused by your own inability to manage your money. Same to be said for lenders, if you cannot be more scrupulous when it comes to who you lend to, then your company deserves to fail, as it was set up to do so from the very beginning. Finally.. I will NOT pay multi-million dollar corporate CEO's MY hard earned tax dollars so they can keep their grossly inflated salaries, while ME and MY BROTHERS AND SISTERS (The American People) pay off their huge debts. Some.. (key word) some institutions do actually need the assistence, and some people do as well, however, this "do it now or everything is your fault" crap that we are being fed is nothing more than good ole' fashioned fear-mongering, which we should all know is a favorite tactic of the Bush administration. The bottom line for you and me if this goes through? Expect higher prices on EVERYTHING, and expect your wages not to reflect this. Prepare for another Great Depression my friends, for it is in the makings and not long till realization.

Posted by: GovtReformNeeded | September 25, 2008 12:39 PM | Report abuse

Yeah, and they've got WMD too. Bush first helped the military industrial complex take the population's wealth and now he is trying to help the banking industry take the rest of it.

Perhaps this bailout, like rising gas prices that are causing us to move more aggressively towards renewable clean fuels, will also wake up the Citizens and the outcome of the election will be changed.

What the banking industry did was, literally, a crime and what they are trying to do now is, literally, a crime against the United States.

What the government by the people and for the people is missing is that the banks are not in a position to demand or dictate terms as they come begging. They are weakened and we are the United States Government. We get to specify the terms and if they don't like them, they can go somewhere else.

If the Fed continues to not play nice, we can point out that it exists illegally and start printing Treasury notes at any moment and begin distributing them to a massive number of banks that would sign up over night. We can finance the auto and construction industries that the banks are now squeezing. We can then begin to use the interest to pay down the national debt.

We are the United States of America and it is really infuriating to see our Senators grappling at the banking industry's feet. These guys need to stand up for their country.

Posted by: Web Smith | September 25, 2008 12:59 PM | Report abuse

This entire process is disgusting and typical of the Bush administration.
Bush and Paulson want this done quickly so they can award more 'no-bid' (Haliburton/KBR style) contracts for all the various services required to hold these 'toxic' instruments. You can bet this will be completed before they leave office,(and why McCain and Obama so want to be part of the 'process') and like the last manufactured disaster, contracts will be awarded on the basis of political connections and not competency.
There is real property behind every mortgage. We should be LOANING money to these financial services companies BASED ON WHAT THEY REQUIRE TO RETURN TO FUNCTIONALITY and require interest and equity warrants for these loans. We should require the loans to be paid off and return the collateral at that time. It does not matter what the paper is 'worth'. Thats's not the issue at all. It's a smoke screen just like help for home owners. Taxpayers do not need to be bailed out of their ill considered mortgages. If they default, let the feds foreclose and sell the properties, maybe make them into low income housing.
But taxpayers do need protection from politicians who are really only looking for cover so they can survive the next election. Bush tried last night but only fools were fooled.
Let us not forget the administration's rush after 9/11 that brought us the Patriot At and Iraq.
Next election, vote against EVERY INCUMBENT. Enough is enough.

Posted by: awenshok'08 | September 25, 2008 1:12 PM | Report abuse

These are Corporate entities and are NOT eligible for Federal bailouts. Let them file a Chapter 11 and DIVEST these companies. They are NOT PEOPLE!
* Investigate all no money down Hedge Fund & PUTCALL winners and prosecute. Confiscate their excess goods, windfalls & properties.
* Publish all Information - NO SECRETS!
* Restrict All Corporate Officers & Board of Directors from entering any company as a Corporate Officer or getting a US Gov Job. Ask for their windfalls/buyouts to $AVE AMERICA.
* Stop the revolving door between Corporations & Government (6 degree separation from the Elite Agenda). No SECRET Meetings with top pyramid structures for the elite.
* Fire Secretary Paulson and replace him with a non-partison INTELLIGENT Economics|AUDITOR CLEANER who has ETHICS.
* Enforce Standards & LAWS so this NEVER happens again with Other People's Money.
* Nationalize the FED and start selling off their properties: Paintings, bullet proof cars, JETS, multi-homes,
* Use the Power of the PURSE to Stop Executive power if No Accountability.
* Offer all those with defaulted mortgages a 1% 40 or 50 yr loan. A WIN/WIN for everyone.
* PROVIDE THE $7BILL to the AIG Retirement & Savings people FIRST before any CORPORATION.

Trickle down economics NEVER works. THIS Administration NEVER HOLDS Anyone Accountable, nor do they INVESTIGATE their OWN. This is only a tactic to get the $AMERO in place and enforce socialistic Corporate|GOVernment policies for their intended NWO agenda. SPEAK OUT!

Posted by: corPARAnoid | September 25, 2008 1:20 PM | Report abuse

I'm not a libertarian, but the bailout is the swan song of Wall Street fat cats, who seek to retire from the predatory capitalism of the past decade. When Bill Clinton eased banking restrictions in California, he dished out $8-billion dollars for "community reinvestment loans.” Was the money ever repaid: no, it just evaporated. Undoing regulations sets a precedent, as does "comping" real estate. With the influx of cheap capital, properties already overvalued at $125,000 soar to $525,000. This buys a modest home. When the “creative financing” schemes fell through, as is their wont whenever 30-million Mexican nationals buy inflated properties and default, it left banks around the world in the lurch (see global economy). Never mind that the aforementioned demographic is the new face of the Democratic Party; Congress cannot quantify the mortgages, which morphed into some very “creative” financial instruments. It’s a $90-billion bailout at best. Hillary Clinton knew who’d get the loan giveaways; she had to buy votes. So, why should hardworking Americans perpetuate the housing bubble? Why write the bubble boys a blank check? Why pony up a trillion-dollars, as a cost of doing business? Because it’s a scam! And, this is the exit strategy. Where is that $8-bilion dollars? Why tie the entire economy to whatever bubble these people create? The bubble is the problem; let it burst. Let those 18-million cracks pass the hat:

Posted by: Peggy McGilligan | September 25, 2008 2:15 PM | Report abuse

This bailout is only a bandaid. Next week, next month they'll come crawling back asking for more. This is insane. Go to for real answers to the problem. Mr. Denniger knows what is going on and has solutions. Are they painful? Yes. But not as painful and useless as this STUPID bailout. Call congress NOW!This has to stop. Tell your children you tried to do something to prevent the collapse of this country.
R. Berry

Posted by: R. Berry | September 25, 2008 2:17 PM | Report abuse

The SELLER always wants to RUSH things to the buyer. The government can always print more money, but what they want is to "LAUNDER" the give away to make it "legal". It's all about duping the citizens, in no NEW way, other than in MAGNITUDE. That's because there's no limit to GREED and dishonesty. Corrupt politicians will use "the Bible", "God", "Heaven", "Hell", "Security", "Economics", "Health", ANYTHING in order to sell "snake oil" for a profit. Just ask yourself a question: WHERE's all the money that WAS THERE to begin with?? Hint: check their pockets.

Posted by: El Mugroso | September 25, 2008 2:35 PM | Report abuse

Is this the shot that is heard around the world for the modern times? Will it wake anyone or will we need to wait until either China sends there Trojan Ships to us or worse yet demand some Air strips in the USA for a few loans?

Wake Up People

Posted by: Dave | September 25, 2008 2:45 PM | Report abuse

Reduce all executive pay salaries to minimum wage and take the rest to pay for this mess. See how they like living on $6.50 an hour. Somebody else should have to give to correct this problem than the people that are already stretched thinner than possible. If the executives of this country think this is such a big problem, let them pay to fix it.

Posted by: Redford Lindsey | September 25, 2008 2:47 PM | Report abuse

What about those of us who don't earn enough to afford a house, let alone a house + a mortgage? We are the same people who don't have 401k accounts and never trade stocks. WE are America. WE will be the ones with torches and pitchforks.

The bankers can't keep saddling the poor with bank debt via inflationary money "pumping." Easy money is what got us into this mess. More easy money is just going to make it that much worse... just delayed for the moment.

We should eliminate the credit scoring system immediately. Banks without credit should not be determining who gets to borrow money - its America's money now. Zero interest loans for everybody!

Posted by: Drumz | September 25, 2008 2:49 PM | Report abuse

Glad to hear someone is working for the people. Also, have you heard of this:

Could it be these bankruptcies are being triggered (not the only cause, but triggered) by a government regulation that could easily be changed?

Also, if the government buys these assets--they belong to the taxpayers. What if we issued shares to all the taxpayers for all the assets purchased? Taxpayers are paying for it so they should receive the assets.

Posted by: js | September 25, 2008 3:40 PM | Report abuse

"James has no driver's license and pays no taxes."

I have met Mr. James. Contrary to what you want the public to believe, he is not some kind of kook. Mr. James uses public transportation to get around. He doesn't earn enough to pay income taxes, although if he becomes our congressman, he'll earn enough to start paying income taxes. He does pay sales tax and property tax, by the way.

So what's the problem?

Posted by: Mohave | September 25, 2008 4:29 PM | Report abuse

While I thank Roz for covering the bailout restraining order lawsuits(AIG and $700B bailout), I hope to correct a few of her statements.

I believe Ms. Helderman is miss characterizing “my hands off attitude towards government”. While I do believe liberty is an ideal to work towards. Liberty without the rule of law is anarchy. I am more of a Constitutional Constructionist than an “avowed libertarian”. I believe the Constitution protects our natural rights by limiting government. Article 1 section 8 enumerates what powers Congress is granted by the people. Granting a monopoly to issue our money to private banks is not one of those powers.

If Ms. Helderman would take a moment to read the 10th Amendment, “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” she might also come to the conclusion that our founding fathers did indeed intend that the Constitution delegate only a limited set of powers to the Unites States, and hence Congress being one of the three branches defined. Reserving all other power to the States or the people.

One of the great powers granted Congress is the power to create money and set its value. Congress has unlawfully given away this power to the privately owned Federal Reserve Banks. If you Google and watch “Money as Debt” you will understand this issue.

I have been warning that this private monopoly has created so much debt as a result of it operation, It was about to crash as it did in 1930.

Also, no one in the press is informing the public that there is over $600 trillion of derivatives in the market and it is the failure of these derivatives that is causing the current crisis and not the relatively $500 billion of sub prime debt. Remember this sub prime debt has real wealth(houses) as collateral backing the debt. Derivatives on the other hand have absolution nothing backing them.

It is these worthless derivatives and not the mortgage loans the bailout is attempting to transfer to the taxpayer.

Posted by: Peter James | September 25, 2008 9:19 PM | Report abuse

In regards' to: Republican Congressional candidate Peter James said yesterday that he would spend the day as a process server, handing out legal filings to the White House, the Department of Treasury and congressional offices.

James, an avowed libertarian challenging Democrat Donna F. Edwards in Maryland's 4th Congressional District, agreed to help a group called We the People serve papers in a lawsuit challenging the not-yet-passed $700 billion Wall Street bailout plan as unconstitutional.

United States legal procedure requires that each party in a case should be notified if actions are taken against them in a court of law. Process serving is an important aspect of the Due Process of Law.
Process serving laws and rules of civil procedure are different from state to state.
You can visit the State Rules of Civil Procedure section on ServeNow at the link below:

Posted by: reader c.e. | September 26, 2008 1:40 PM | Report abuse

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