Right things can POTUS do on his own

January 25th, 2019 at 7:34:29 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 898
Posts: 10665
The key thing that I remember about this decision was that congress refused to enact the bill, and the Clinton administration took executive action.

What power does Trump have in three weeks? Can he do something like this.


Quote: 1996 Bill Clinton - Mexican Bailout
In 1993. the economic outlook for Mexico was rosy. NAFTA was recently approved by the U.S. Congress and about to take effect. Mexico's economy was rebounding from the "lost decade" of the 1980s caused by the collapse of oil prices, and open trade with the United States was expected to entice foreign investors to take advantage of Mexico's privileged access to the U.S. market. In addition, the Mexican government had recently implemented a series of financial reforms including a restructuring of their foreign debt. Yet, there were thorns to deal with.

Mexico's deficit had ballooned to more than $20 billion or seven percent of GDP. This led some observers to worry that the peso was becoming overvalued. To maintain the peso's value, Mexico's central bank, Banco de México used an exchange rate to peg the peso to the U.S. dollar through short-term public debt instruments in U.S. dollars and the foreign exchange market.

This caused the peso to appreciate, but speculators began to recognize that the peso was artificially over-valued and sent their capital out of Mexico. Eventually, the plan failed and the central bank's foreign exchange reserves dwindled until it completely ran out of the U.S. dollar in December 1994. On December 22nd, the Mexican government allowed the peso to float and it spiraled downward losing 50% in four months.

President Bill Clinton saw this crisis as a matter of national security. In his 1995, State of the Union Address, Clinton linked the stabilization of Mexico to the security of American jobs, American exports and America's borders. And, with this mindset, President Bill Clinton called a meeting with his newly confirmed Treasury Secretary Robert Rubin, Alan Greenspan the Federal Reserve Chairman, and Under Secretary for the Treasury Larry Summers to discuss an American response. Motivated in large part by fear of a potential surge in illegal immigration, Clinton sought Congressional approval for $50 million bailout of Mexico. Clinton's plan was to use the International Monetary Fund (IMF) to administer the bail out with $20 billion coming from the United States, and the rest from IMF and a consortium of Latin American Nations and Canada. In 1995, President Bill Clinton used his State of the Union address to urge Congress to take action. He emphasized, that it was not a bailout, but rather the "right thing for America". And, in his address he directly linked it to national security, stating that "our security still depends upon our continued world leadership for peace and freedom and democracy". If America wanted to secure it's borders, "then we must pass the stabilization program".

"Much of what the American people are thinking about tonight is what we've already talked about. A lot of people think that the security concerns of America today are entirely internal to our borders. They relate to the security of our jobs and our homes and our incomes and our children, our streets, our health, and protecting those borders. Now that the cold war has passed, it's tempting to believe that all the security issues, with the possible exception of trade, reside here at home. But it's not so. Our security still depends upon our continued world leadership for peace and freedom and democracy. We still can't be strong at home unless we're strong abroad.

The financial crisis in Mexico is a case in point. I know it's not popular to say it tonight, but we have to act, not for the Mexican people but for the sake of the millions of Americans whose livelihoods are tied to Mexico's wellbeing. If we want to secure American jobs, preserve American exports, safeguard America's borders, then we must pass the stabilization program and help to put Mexico back on track.

Now let me repeat: It's not a loan. It's not foreign aid. It's not a bailout. We will be given a guarantee like cosigning a note, with good collateral that will cover our risks. This legislation is the right thing for America. That's why the bipartisan leadership has supported it. And I hope you in Congress will pass it quickly. It is in our interest, and we can explain it to the American people because we're going to do it in the right way."

Congress refused to enact the Mexican Stabilization Act, and the Clinton administration took executive action to authorize the Treasury Department to issue a loan through the Exchange Stabilization Fund. Republican leaders were up in arms viewing this in the words of Pat Buchanan, a "daylight robbery of the nation's wealth". Republicans argued that this arrangement, along with the greater vision of a global economy under NAFTA would lead to unacceptable trade deficits for America and a loss of U.S. jobs.

This was a huge risk for Clinton, and if failed it could doom his presidency. But, within 2 years Mexico was able to pay off the loan along with $500 million in interest. For the moment, it looked as though President Clinton had taken the right action and saved the day. Unfortunately for Mexico, the damage was only done and they would see many more years of financial stress. In 1995, Mexico's real wages fell by 25-35% and unemployment climbed to 7.4%. It took another 6 years before the nation's poverty level returned to normal.

http://www.presidency.ucsb.edu/ws/index.php?pid=51634
https://www.frbatlanta.org/-/media/Documents/filelegacydocs/Jwhi811.pdf
https://en.wikipedia.org/wiki/Mexican_peso_crisis
http://www.history.com/this-day-in-history/clinton-authorizes-loan-to-mexico

Posted 30th January 2017 by Dennis Wagner
January 26th, 2019 at 3:23:14 AM permalink
odiousgambit
Member since: Oct 28, 2012
Threads: 99
Posts: 2468
I've heard it said that the people who wrote the Constitution of the US, who of course did not want to have a king, for some odd reason gave too much potential power to the President. Couldn't find anything online about that in a quick search.

It's easy to find online how presidential power has evolved though. Presidents increased the power of that office by just finding out that they could do something, and would not be opposed, and the power then grows by precedence. Obama was sure going for it, and now Trump is empowered by all he did. And Clinton, as you show. It largely started with Andrew Jackson, it seems.

I have been a lukewarm supporter of Trump, first because I constantly remind myself we could have had Hillary. Secondly, I find myself reacting to the way he has been treated in the mainstream press, which seems to be where Scott Adams is coming from too. However, I was really afraid he was going to fund his wall by declaring emergency powers - I think now he has been talked out of that. It would have been a huge mistake, the next Obama we will get one day ... just yet another increase in presidential power, yet another step towards that 'monarchical presidency'
Mustard:You like Kipling, Miss Scarlet? Sure, I'll eat anything [from movie]
January 26th, 2019 at 3:59:26 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 898
Posts: 10665
Once again the operative word in the 1995 action is "bypass". The President doing something that Congress had voted down. I don't know how often that happens.


By ANDREW GLASS
With the Mexican peso in free fall and the Latin American nation headed toward insolvency, President Bill Clinton on this day in 1995 bypassed stiff congressional opposition to authorize a $20 billion loan to Mexico.

In funding the loan, the U.S. Treasury triggered currency swaps and loan guarantees worth $20 billion. In addition, the International Monetary Fund signed an 18-month standby credit accord with the Mexican government valued at $18 billion. The Bank for International Settlements offered a $10 billion line of credit while the Bank of Canada threw short-term swaps valued at $1 billion into the pot.


Clinton acted after the administration failed to get the Republican-controlled Congress to pass a $50 billion Mexican Stabilization Act. Without seeking congressional approval, the president authorized Treasury Secretary Robert Rubin to tap the department’s exchange stabilization fund. Some lawmakers accused Clinton of abusing his authority.

It marked the first time the fund had been used to help stabilize a foreign currency. Clinton defended his decision by arguing that had the peso been allowed to collapse, Mexico’s economy would have crashed with major adverse consequences for the U.S. economy.

“Some said we should not get involved, that the money would never be repaid, that Mexico should fend for itself,” Clinton said in 1997. “They were wrong. Today, the American people can be proud that we did the right thing by Mexico and the right thing for the United States, and the right thing to protect global prosperity.”
https://www.politico.com/story/2013/01/clinton-bypasses-congressional-opposition-to-authorize-20b-mexico-loan-jan-31-1995-086948



Xchange rate peso to USD
Thu, Dec 1, 94 3.4400 - Ernesto Zedillo (born 1951) became President on December 1, 1994
Fri, Dec 2, 94 3.4390
Mon, Dec 5, 94 3.4410
Tue, Dec 6, 94 3.4470
Wed, Dec 7, 94 3.4520
Thu, Dec 8, 94 3.4500
Fri, Dec 9, 94 3.4540
Mon, Dec 12, 94 3.4500
Tue, Dec 13, 94 3.4570
Wed, Dec 14, 94 3.4540
Thu, Dec 15, 94 3.4610
Fri, Dec 16, 94 3.4630
Mon, Dec 19, 94 3.4662
Tue, Dec 20, 94 3.9500
Wed, Dec 21, 94 3.9970
Thu, Dec 22, 94 4.8500
Fri, Dec 23, 94 4.7000
Mon, Dec 26, 94 0.0000
Tue, Dec 27, 94 5.7500
Wed, Dec 28, 94 5.3500
Thu, Dec 29, 94 5.0000
Fri, Dec 30, 94 5.0000
Mon, Jan 2, 95 0.0000
Tue, Jan 3, 95 5.5000
Wed, Jan 4, 95 5.5500
Thu, Jan 5, 95 5.4500
Fri, Jan 6, 95 5.5000
Mon, Jan 9, 95 5.4000
Tue, Jan 10, 95 5.8000
Wed, Jan 11, 95 5.7500
Thu, Jan 12, 95 5.6500
Fri, Jan 13, 95 5.3500
Mon, Jan 16, 95 0.0000
Tue, Jan 17, 95 5.2700
Wed, Jan 18, 95 5.2900
Thu, Jan 19, 95 5.6800
Fri, Jan 20, 95 5.7000
Mon, Jan 23, 95 5.7600
Tue, Jan 24, 95 5.8000 - President Clinton State of Union address (If we want to safeguard America's borders, then we must pass the stabilization program).
Wed, Jan 25, 95 5.7000
Thu, Jan 26, 95 5.6600
Fri, Jan 27, 95 5.6800
Mon, Jan 30, 95 6.5000
Tue, Jan 31, 95 5.8200 - President authorizes loan unilaterally without congressional approval
Wed, Feb 1, 95 5.5100
Thu, Feb 2, 95 5.4700
Fri, Feb 3, 95 5.3600
Mon, Feb 6, 95 5.3800
Tue, Feb 7, 95 5.3500
Wed, Feb 8, 95 5.3700
Thu, Feb 9, 95 5.5500
Fri, Feb 10, 95 5.6500
Mon, Feb 13, 95 5.6000
Tue, Feb 14, 95 5.7700
Wed, Feb 15, 95 6.0300
Thu, Feb 16, 95 6.0900
Fri, Feb 17, 95 5.8200
Mon, Feb 20, 95 0.0000
Tue, Feb 21, 95 5.4400
Wed, Feb 22, 95 5.9300
Thu, Feb 23, 95 5.6900
Fri, Feb 24, 95 5.8400
Mon, Feb 27, 95 6.0600
Tue, Feb 28, 95 5.9700
Wed, Mar 1, 95 5.9600
Thu, Mar 2, 95 5.9700
Fri, Mar 3, 95 6.0600
Mon, Mar 6, 95 6.6000
Tue, Mar 7, 95 6.9000
Wed, Mar 8, 95 6.8200
Thu, Mar 9, 95 7.6000
January 26th, 2019 at 6:16:33 AM permalink
odiousgambit
Member since: Oct 28, 2012
Threads: 99
Posts: 2468
Quote:
Congress refused to enact the Mexican Stabilization Act, and the Clinton administration took executive action to authorize the Treasury Department to issue a loan through the Exchange Stabilization Fund
So why doesn't Trump use this as precedence for doing whatever he wants?
Mustard:You like Kipling, Miss Scarlet? Sure, I'll eat anything [from movie]
January 26th, 2019 at 6:54:40 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 898
Posts: 10665
Quote: odiousgambit
So why doesn't Trump use this as precedence for doing whatever he wants?


That is basically my question.

Both President's claim they are trying to "safeguard America's borders" with their Acts.

In 1995 SOU address President Clinton appealed to Congress to pass the Act to authorize the money. A few days later Congress said NO, but Clinton did it anyway a week later. It wouldn't have mattered if he vetoed the decision because there were enough Republicans in the House that they could probably have over-rode his veto.

Remember in 1995 Democrats had controlled the House for 29 of the previous 31 congresses. But the Republicans won the historic 1994 election.

I do not know if the courts weighed in on the matter.


It would be funny if DJT quotes Bill Clinton's comments made in 1995: "We are a nation of immigrants. But we are also a nation of laws. It is wrong and ultimately self-defeating for a nation of immigrants to permit the kind of abuse of our immigration laws we have seen in recent years, and we must do more to stop it."

Quote: Bill Clinton State of Union 24 January 1995

If we want to secure American jobs, preserve American exports, safeguard America's borders, then we must pass the stabilization program and help to put Mexico back on track.

Now let me repeat: It's not a loan. It's not foreign aid. It's not a bailout. We will be given a guarantee like cosigning a note, with good collateral that will cover our risks. This legislation is the right thing for America. That's why the bipartisan leadership has supported it. And I hope you in Congress will pass it quickly. It is in our interest, and we can explain it to the American people because we're going to do it in the right way.

All Americans, not only in the states most heavily affected, but in every place in this country, are rightly disturbed by the large numbers of illegal aliens entering our country. The jobs they hold might otherwise be held by citizens or legal immigrants. The public service they use impose burdens on our taxpayers. That's why our administration has moved aggressively to secure our borders more by hiring a record number of new border guards, by deporting twice as many criminal aliens as ever before, by cracking down on illegal hiring, by barring welfare benefits to illegal aliens.

In the budget I will present to you we will try to do more to speed the deportation of illegal aliens who are arrested for crimes, to better identify illegal aliens in the workplace as recommended by the commission headed by former Congresswoman Barbara Jordan.
----

We are a nation of immigrants. But we are also a nation of laws. It is wrong and ultimately self-defeating for a nation of immigrants to permit the kind of abuse of our immigration laws we have seen in recent years, and we must do more to stop it.