From bigxc@prairienet.orgThu Feb 16 05:59:08 1995
Date: Tue, 14 Feb 95 14:11:14 CST
From: Brian Redman <bigxc@prairienet.org>
To: Multiple recipients of list <conspire@prairienet.org>
Subject: Conspiracy Nation -- Vol. 3 Num. 96


              Conspiracy Nation -- Vol. 3  Num. 96
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                    ("Quid coniuratio est?")
 
 
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[From The Congressional Record -- House, H1215, Feb. 6, 1995]
 
THE SPEAKER PRO TEMPORE (Mr. Nussle):
Under the Speaker's announced policy of January 4, 1995, the 
gentleman from Kentucky [Mr. Bunning] is recognized during 
morning business for 5 minutes.
 
MR. BUNNING:
Mr. Speaker, article I of the U.S. Constitution vests the power 
of the purse in the Congress. Unfortunately, the President of the 
United States has taken it upon himself to do an end run around 
the Constitution, the Congress, and the American people to bail 
out Mexico.
 
Mr. Clinton has pushed the barriers past the breaking point. He 
is basing his power grab on a twisted reading of his authority 
under the Gold Reserve Act of 1934. That is the law which 
established the Exchange Stabilization Fund that Mr. Clinton has 
raided to save Mexico.
 
The Exchange Stabilization Fund was not meant for the kind of 
shenanigans that Mr. Clinton is trying to pull. It was designed 
to ensure that we would have an orderly and stable system of 
exchange rates.
 
In other words, the Gold Reserve Act gives the President 
authority to stabilize the U.S. dollar and protect its value. It 
does not give the President the authority to prop up the currency 
of Mexico.
 
It seems that Mr. Clinton needs to take a refresher course in 
constitutional law. Only Congress has the authority to 
appropriate money.
 
Apparently, the chairman of the Federal Reserve, Alan Greenspan, 
doesn't think too much of Mr. Clinton's bailout scheme either.
 
The Washington Times reported on February 1 that the Exchange 
Stabilization Fund, the IMF and the BIS do not have the resources 
to deal with Mexico's problems. He went on to say that the 
bailout should be addressed by the political leaders of the 
country because of its broad implications.
 
Mr. Greenspan is not alone in thinking that this financing scheme 
is a multi-billion dollar disaster waiting to happen.
 
The Heritage Foundation had warned that this bailout was a bad 
deal as early as January 25. A study by Heritage warned,
 
  The proposed loan guarantees may bail out Mexico this year, 
  but they will not prevent another crisis unless the Mexican 
  Government corrects the fundamental structural problems that 
  caused the peso's collapse.
 
 
Our financial partners in Europe seem to understand the problem. 
When it came to a vote at the International Monetary Fund, 
Germany, Britain, Denmark, the Netherlands, Belgium, and 
Switzerland all abstained from voting rather than support Mr. 
Clinton's plan.
 
I applaud my colleague, Mr. Taylor of Mississippi, for pushing 
the envelope on this issue by introducing a privileged resolution 
that will put the House on record as to where we stand on this 
bailout.
 
His resolution will put us on track to determine whether the 
President has acted outside the scope of his authority.
 
We have all sworn to defend the Constitution of the United 
States. If the President is wrongly seizing power from the 
legislative branch, it is our duty to stop him.
 
Mr. Taylor's privileged resolution is just the thing to start the 
inquiry into what I believe may be the power grab of our time. 
Congress, not the President or the Courts, is charged with the 
power to spend the money.
 
 +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +  +
 
[Copies of The Congressional Record are normally available for 
viewing at your local library.]
 
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Aperi os tuum muto, et causis omnium filiorum qui pertranseunt.
Aperi os tuum, decerne quod justum est, et judica inopem et 
  pauperem.                    -- Liber Proverbiorum  XXXI: 8-9 

 Brian Francis Redman    bigxc@prairienet.org    "The Big C"
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    Coming to you from Illinois -- "The Land of Skolnick"        
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