The Obamacare financing flimflam
The fact that the Obama administration illegally used funds not appropriated by Congress to prop up Obamacare should be a big story, but somehow the diligent media have somehow been able to make sure the public doesn't see it. Essentially, the Obama administration stole money from low-income housing funds at Fannie and Freddie to prop up Obamacare after a judge told them to stop diverting funds illegally at HHS.
From the linked article:
Federal court litigation provides evidence the Obama administration illegally diverted taxpayer funds that had not been appropriated by Congress in an unconstitutional scheme to keep Obamacare from imploding.
In 2016, a U.S. District judge caught the Obama administration's Health and Human Services Department acting unconstitutionally and therefore put an end to the illegal diversion of taxpayer funds, but the Obama administration didn't stop there.
The Obama administration instead turned to the nation's two government-sponsored mortgage giants – the Federal National Mortgage Association, commonly known as "Fannie Mae," and the Federal Home Loan Mortgage Corporation, commonly known as "Freddie Mac" – to invent a new diversion of funds in a desperate attempt to keep Obamacare from collapsing.
Now we know why the Obama administration unilaterally changed rules on Fannie Mae funds in 2012. They basically screwed private-sector bondholders and shareholders to create a slush fund for left-wing groups allied with the administration. These funds do not go through Congress. They are treated as off-balance sheet entities, where the amount that comes to the government is treated as a net reduction in expenses instead of an increase in revenue. In other words, it allows Congress and the president to pretend they are controlling spending.
From an article at National Review:
The two hemorrhaged money for a couple years after the bailout, but as the economy and the housing market improved, Fannie and Freddie returned to profitability. It soon appeared that their booming profits might allow the government to recoup its investment and extricate itself from the mortgage business altogether. However, the government showed no interest in such a path. In 2012, the U.S. Treasury quietly changed its contract with the two GSEs and changed the financial position of the other shareholders. Instead of being content with the 10 percent dividend it assigned itself, along with the bulk of any profits from a future stock sale, Treasury takes the entire net worth of Fannie and Freddie each quarter. At the end of 2013, this amounted to a total of $185.2 billion since the peremptory imposition of this policy. That's roughly $2 billion shy of making up for taxpayers' entire investment.
This isn't the first time that the Obama administration screwed the private sector to benefit itself and its special interest groups.
In the G.M. bankruptcy the Obama administration gave preferential treatment to unions over more secured bondholders and other unsecured creditors. They clearly violated bankruptcy law. From the start the Obama administration believed they were above the law.
A large number of fines that Justice and other agencies collect end up getting redistributed to special interest groups. Excess funds that go to the government after paying the aggrieved parties should go back to reduce the deficit but they don't.
The number of slush funds and lack of transparency is appalling. Here is a good report from a House oversight committee. I know we can all remember the media covering this report.
... Agencies Retention or Redistribution of Fines for Special Funds. ... Settlement and Approved Consumer Groups[.] ... Agencies do not use a standardized method of accounting for those funds collected and retained. .... The DOJ's use of funds collected as fines and penalties has drawn interest from other.
Throughout Obama's eight years, his administration showed great disdain for the private sector, taxpayers, and the rule of law, yet not once did the media and Democrats call for an independent prosecutor or investigator to look into anything. They violated the law on Fannie and Freddie and G.M., intentionally bankrupted for-profit colleges, tried to destroy private prison companies, intentionally bankrupted coal companies, and rewarded political cronies like Solyndra – and the media saw no scandals. As most of the country was stagnant, Washington, D.C. did well, and that is all Democrats and the media seem to care about. There were many scandals during Obama's eight years but Democrats, Justice, and the federal agencies involved all stymied the investigations. The media participated in blocking the investigations by repeating the Democrat talking points that they were partisan witch hunts. After all, it was their chosen one who was president. The media now pretend that Obama's eight years were scandal-free.
But now, one month into Trump's term, without any indication at all that laws have been broken, Democrats and the media are shouting to the hills for an investigation. Someone who knows that Trump may have talked to someone from Russia. What a scandal.
The actual situation is that Democrats, the media, and people like McCain, Graham, and Collins can't afford to have a president like Trump, who wants to do what the founding fathers would have cheered. Reduce the power and the purse of the government and give it back to the people where it belongs. They would have preferred Hillary, who would have continued to expand the power and money that went to the government.
The media truly can't stand a White House that will invite media outlets from around the United States, including very small outlets. The powerful media outlets believe that only they should be able to tell the people what to think and control what they see. The founding fathers would have cheered the internet, where literally thousands can hold the powerful to account instead of just a few.
The bias is truly hard to spot.
We should also remember that Obama and Democrats intentionally took funds from Medicare to fund Obama Care. Then they pretended that this diverted money helped Medicare.