Earlier this month, Harvard Ph.D. Jerome Corsi of InfoWars (@jerome_corsi) and a CPA “who worked for two years for a major U.S. accounting firm as an outside auditor for Freddie Mac,” confirmed a 2012 scheme hatched by the Obama administration to funnel hundreds of billions in dividends from Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac to prop up the failing Obamacare program – by paying subsidies to insurers to remain in the system.
If you need to catch up on it, read the InfoWars article above or watch this 18 minute video:
The conclusion reached by Corsi and others is that this was probably illegal.
In fact, House Republicans actually sued the Obama Administration in 2014 over the fact that the subsidies to insurers weren’t appropriated by congress and won, which the Obama administration appealed. As Zerohedge and the Atlanta Journal Constitution pointed out last week, the Trump administration has until May 22nd to decide whether or not to pursue the appeal:
In 2014, House Republicans sued the Obama administration over the constitutionality of the cost-sharing reduction payments, which had not been appropriated by Congress. The lawmakers won the lawsuit, and the Obama administration appealed it. Late last year, with a new administration on the other end of the suit, the House sought to pause the proceedings — with a deadline for a status update in late May. –AJC
And a ZeroHedge analysis:
Of course, any decision to remove those subsidies would likely result in yet another massive round of premium hikes and further withdrawals from the already crippled exchanges where an astounding number of counties across the country have already been cut to just 1 health insurance provider. And, as we’ve pointed out before, higher rates = lower participation = deterioration of risk pool = higher rates….and the cycle just repeats until it eventually collapses. –ZeroHedge
Meanwhile, President Trump has made several Tweets since the Ryancare debacle in congress:
ObamaCare will explode and we will all get together and piece together a great healthcare plan for THE PEOPLE. Do not worry!
— Donald J. Trump (@realDonaldTrump) March 25, 2017
The Democrats will make a deal with me on healthcare as soon as ObamaCare folds – not long. Do not worry, we are in very good shape!
— Donald J. Trump (@realDonaldTrump) March 28, 2017
But wait, could it happen even sooner? Former Blackrock portfolio manager Ed Dowd may be on to something…
By not long…do you literally mean weeks as you order the stop of the illegal Fannie/Freddy dividend sweep into Treasury thus ensuring ????? https://t.co/VEQ4bkgduG
— Ed (@DowdEdward) March 28, 2017
— Ed (@DowdEdward) March 26, 2017
Simple question: what if Trump’s Treasury simply stopped the illegal dividend sweep NOW? It is the end of the 1st quarter, after all…
Not only would it force the MSM to cover Obama’s 2012 scheme to siphon funds from Fannie and Freddie, the stage would be set for far more sensible healthcare solutions from lawmakers who aren’t simply shilling for the industry.