Uncle Sam In Your Pocket

No, even more so.

Remember that nifty "Foreclosure prevention and relief" law that was sponsored by Sen. Chistopher Dodd, written by Bank of America and Countrywide Credit, and signed into law by the president recently?

Remember how it carried a mandatory -- yet rather tangential -- provision for federal government monitoring of all automatic payment transactions? You probably thought, "hmm."

And maybe then you thought, "why'd they do that?" And then, "well, they must know what they're doin'."

But some of us thought, "OK, what are the pickpockets (with the full force of the federal government) up to now?" And some others of us posted it on our blogs.

Well, now The U.S. Department of Education -- that's a federal agency -- is notifying those of us with outstanding student loans, thusly:

There is a bit of clarification on the Loan Statement, but not much. It reads, in part, "These payment streams may include (but are not limited to) Federal and/or State tax refunds, Social Security Benefits, and/or Federal travel reimbursements."

Since they're already hitting my Federal income tax refunds, and have been for two years, I can't imagine why they feel the need to remind me, unless something has changed. Something, for example, in the "but are not limited to" category. Something that was probably changed by Mr. "VIP Mortgage Client" Dodd's recently enacted "foreclosure prevention" law.

I hope we're not moving closer and closer to the day when you don't have to pay a bill, it's all done by Uncle Sam's monitoring of your "payment streams," and all you have to do is show up for work.

This is troublesome and it’s really very simple. Tax receipts are falling off a cliff. Our entire economic model of credit, call the last 25 years a supercycle of credit has burst. We are headed for the Great Depression part II.

The USA got two major market shocks in March and June. March was from the Housing market and the second was from spiking oil. Both are government failures whom legislated or faciliated the problem like the FED.

American consumers cannot avoid all culpability, we drank in some of the party but that was the tiny minority, NOT the majority of us, the responsible. And our little credit party was nothing compared to the $2 T skimmed from the top of Housing, Trillions in globalization since Bush I, Clinton and Bush II and hundreds of billions spent on absolute nothingness.

So it is wrong to go after the Middle Class. This is what has happened historically for 600 years, Europe is a model to see what occurs. The Middle Class are always the most visible for taxation when an economic model goes real south. The poor get entitlements and the rich escape.

The $1 B transfer from DoD to IRS is not a coincidence. It is to send agents to your home. If you owe taxes, you will get little notice to cough up immediately or you will have an armed agent escort you out on your dumper. Not all money is for armed agents, the IRS needs many more deskmen as well for those whom can restructure.

The Middle Class deserves better. The US government can do what is hard and clean it’s own House first, but that is not going to occur. We get fleeced, the economy collapses and then We the People take our government back. Good luck to you all and God bless! It will be OK, just not fun for the next decade or so...

With a title like that, definitely.

Remember the 2006 Commercial Credit Act, with the clause that creditors can now nail your bank account on student loan defaults, without ever having to PROVE that you still owe anything? Even if you paid it off? It’s being abused

Sounds like Uncle Sam now just wants a piece of the action...and on multiple fronts.

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