Welcome to the USSA!
Back in July, I noted that the FedGov's intervention on behalf of the government-sponsored entities Freddie Mac and Fannie Mae marked the end of the American experiment.
Take a couple minutes now to read that entry and its links as a recap.
Next, go to this Treasury Department link and note the level of FedGov debt - more than $9.668 trillion USD as of this morning.
Then read this link from the UK's Financial Times and this link from the International Herald-Tribune as an update.
UPDATED 8 SEPT 08 0036 edt: Read these updated accounts in FT and the Wall Street Journal as well.
Net-net: Having failed in their jobs, the Federal regulators tasked with oversight of Fannie Mae and Freddie Mac have now assumed management of these entities, adding trillions of dollars to the national debt.
Now go to your copy of the US Constitution and look through both Article I and Article II to see where the Congress and the Executive Branch, respectively, have the power to take any of the steps that have been taken.
You won't find any authority whatsoever.
The United States Constitution is dead.
Your elected officials and their designates now simply act as they see fit, without reference to the foundations of the late American Republic.
Welcome to the United Socialist States of America.
Even more importantly, could someone explain to me how the promises of the already-insolvent US Government are supposed to reassure the foreign and domestic holders of Fannie Mae and Freddie Mac debt?
Why won't the net-net of this action be to create more doubt about the US dollar and further increase the existing global reluctance to purchase more of the FedGov debt needed to fund our imperial obligations?
We are hosed.