“The conclusion then, is, that neither the representatives of a nation, nor the whole nation itself assembled, can validly engage debts beyond what they may pay in their own time.”
– Thomas Jefferson to James Madison, 1789. ME 7:457, Papers 15:398n
The Small Business Administration has consistently been one associated with fraud and scandal. Ronald Reagan promised to abolish both the unconstitutional federal Department of Education and the equally unconstitutional SBA. He did neither and, as usual, Congress didn’t have the backbone to buck the special interests buying their favors.
The SBA has what they call a “microloan” program that provides very small loans for start-ups, newly established companies or for small businesses that are growing. Eligible borrowers can get up to $35,000 – the average loan amount is roughly $10,500. There’s no question that the SBA’s microloan program is key in bankrolling capital to women either starting their own business or adding capital to a growing one. Translated, this means lots of votes from women who the U.S. Senate hears loud and clear – to the tune of $78 million dollars they restored to the 2006 budget for SBA with big bucks going into microloan funding. Tremendous pressure is now being put on the House to pony up or it will cost them votes from women.
Constitutionally speaking, it doesn’t matter what programs are in place under the SBA because this agency is unconstitutional. The word unconstitutional isn’t just some word I use that has no meaning. Article 1, Section 8 of the U.S. Constitution – the supreme law of the land – strictly defines what areas Congress can and cannot legislate. If you haven’t read “Not Yours To Give” – a very famous speech by Davy Crockett – I hope you will take the time to do so because it will help you to understand why I take the firm stand I do on the issue of constitutionality.
There is always a lot of chatter about “reducing the size of government,” but we all know that only applies to eliminating someone else’s pet projects getting funded. Either you believe the Constitution is the supreme law of the land or you believe in lawlessness. When a nation whose people will no longer stand up for the law, principles and what’s right – because of money – that nation has lost its soul.
Don’t people realize what they are doing when they accept unconstitutional grants, loans and money from the federal government? Since there is no money in the people’s treasury, every penny unconstitutionally appropriated is added to the national debt through borrowing by Congress. That $35,000 SBA microloan has to be borrowed from the privately owned “Federal” Reserve Banking System.
As of April 18, 2005, the debt from out-of-control spending by Congress via borrowing to spend on unconstitutional programs like the microloan is nearly $8 trillion! You, I and our children end up paying an astronomical amount of interest on this bookkeeping exchange, which bumps that $35,000 illegally given microloan to a far higher amount. Let me give you an example:
Congressional Record, House, Sept. 29, 1941, page 7582, comments by Congressman Wright Patman regarding what he called “an idiotic system” (the Federal Reserve):
Now take the Panama Canal bonds. They amounted to a little less than $50 million – $49.5 million. By the time they are paid, the government will have paid $75 million in interest on bonds of less than $50 million. So, the government is paying out $135 million to obtain the use of $50 million.
So, you see, that “microloan” from the SBA – besides being against the law to begin with – multiplies many times over in debt to you, your children and grandchildren. Is it really worth it?
As I wrote in my April 15, 2005, column, unless one understands the debauched fiat currency system we are forced to use – how Congress literally steals the fruits of your labor and where the money actually goes – then one cannot understand how taking money from the government will destroy this economy once and for all. Sadly for America, too many people don’t want to know they are part of the problem. Instead, they simply blame the “other party” for all the woes of the land. A fatal mistake.
The point of no return is looming when the first wave of baby boomers retire in 2008. There is no money to fund any of the programs that will require trillions of dollars. The American people have allowed Congress to bankrupt this nation and put them, their children, my daughter and your children into a lifetime of financial bondage to the international banking cartel because they have their hands out for all these unconstitutional programs. America is drowning in unpayable debt and debt is not prosperity.
“When the people find they can vote themselves money, that will herald the end of the Republic.”
– Ben Franklin
Think about it.