In the comedy of errors that we call “the bailout,” the House of Representatives thumbed their collective noses to the White House and to the party leadership of Congress. In a vote that was far from down party lines, the House voted 228 to 205 against the $700B Wall Street bailout package, with 95 Democrats joining 133 Republicans putting an end to over a weeks worth of effort in Washington, DC. Now Congress will wait three days before coming back together to try once again.

I believe that neither the country nor the government is ready for a large omnibus bailout program as the one currently proposed. Trying to provide credit to struggling companies, taking over “toxic” mortgages, adding restrictions to Wall Street companies, increasing the powers of the Secretary of the Treasure, and so on in one large bill is enough to scare 228 Representatives from attaching their name to it. Some fear losing a close election. Others face a conflict of ideology. Others still cannot do so in good faith. So let’s address one of the more pressing issues that is hampering the economy as a whole.

It might sound like I am repeating myself, but the $150B stimulus package that was provided to us earlier this year was a waste of taxpayers dollars. Yes, it gave us a few hundred dollars to spend and keep our GDP positive for the quarter, but it didn’t address the real issue. As I indicated, the money should have been spent on restructuring many of the harmful ARMs held by people who were struggling to make their payments. Now, we would need at least $200B to achieve a similar level of impact on the economy. By replacing someone’s ARM with a fixed rate loan, the person will know what his or her monthly payments are and would not be faced with ever increasing payments during the life of the loan. That would lead to a reduction in the number of foreclosures per month. By reducing the number of foreclosures, banks have fewer homes to sell for a loss.

These two points means that funds and investments made by financial institutions based upon these mortgages are more likely to retain their value, bringing some sort of reliability and stability to the money lenders. Additionally, with fewer homes being foreclosed upon, the housing market values will remain at a constant level since homes are not being sold below cost. It also means that the supply of available homes on the market decreases, leading to increased demand. Increased demand leads to higher home values, which means added equity. So, with more people retaining their homes, making their monthly payments, and being able to access equity as needed since the houses are retaining their value, the financial markets will be more stable, reducing the number of institutions requiring federal aid. End result - tax revenue which provides a return on investment by the government.

Yes, this is overly simplified, but it has a more practical application that spending billions on Wall Street without addressing one of the most important cause of the current financial crisis. Yes there will be the need for the Fed to inject some case into the system to keep available credit flowing, but put the money where it needs to go. Create a piece of legislation that focuses in on the ARMs directly without all this nonsense about CEO golden parachutes, funds being redirected to ACRON, and the rest of this nonsense. It is time for Congress to put on their business hats and invest the money wisely in a way where it will provide a return on investment. Do this, and a majority of the House and Senate will vote in favor of the bill.

Related articles:
Republican Ranting - “Analysis of the House Voting Down Yesterday’s Bailout Bill”
Ed Gruberman - “$1,200,000,000,000″
Tom Rants - “How broke is it?”
The Spitting Vessel - “Betting Billions on a Bailout Bullet”
The Fireside Post - “Pelosi Blew This Deal”
Open Congress - “Pelosi Speech on the Bailout”
MLoger - “The Bailout May Not Be Enough”
Matt-Speak - “Dear Congress, Please Take Note…”
A Disgruntled Republican - “Congress Should Pass the Palson Plan”
The BoBo Files - “Bailout Voted Down! What Comes Next?”
CNN - “Bailout plan rejected - supporters scramble” 
Worldly Economic Thoughts - “Why the U.S. needs a Bailout”

In a strange twist in this very unusual election, Senator John McCain came out today and announced he was suspending his campaign and heading back to Washington to work with Congress to complete the economic package to bailout the financial sector to bring stability back to the market. The following is a portion of his statement:

Tomorrow morning, I will suspend my campaign and return to Washington after speaking at the Clinton Global Initiative. I have spoken to Senator Obama and informed him of my decision and have asked him to join me.

I am calling on the President to convene a meeting with the leadership from both houses of Congress, including Senator Obama and myself. It is time for both parties to come together to solve this problem.

We must meet as Americans, not as Democrats or Republicans, and we must meet until this crisis is resolved. I am directing my campaign to work with the Obama campaign and the commission on presidential debates to delay Friday night’s debate until we have taken action to address this crisis.

I am confident that before the markets open on Monday we can achieve consensus on legislation that will stabilize our financial markets, protect taxpayers and homeowners, and earn the confidence of the American people. All we must do to achieve this is temporarily set politics aside, and I am committed to doing so.

In accordance with his suspension he is pulling all of his campaign ads, canceling rally and donor events, as well as canceling television appearances. He has also called for the Friday night debate on foreign policy to be postponed if the bailout package is not finalized before the weekend. Doing a brief search, I have not found any examples of a nominee suspending their campaign after their convention, so this is new ground for many. Following the announcement by McCain, both McCain and Obama released a joint statement on the issue of the economy:

The American people are facing a moment of economic crisis. No matter how this began, we all have a responsibility to work through it and restore confidence in our economy. The jobs, savings, and prosperity of the American people are at stake.

Now is a time to come together - Democrats and Republicans - in a spirit of cooperation for the sake of the American people. The plan that has been submitted to Congress by the Bush Administration is flawed, but the effort to protect the American economy must not fail.

This is a time to rise above politics for the good of the country. We cannot risk an economic catastrophe. Now is our chance to come together to prove that Washington is once again capable of leading this country.

It is good to show ’solidarity’ on a topic like this, taking a non-partisan unified approach to try to focus our attention and resources to solve a problem that keeps on growing at an escalated rate. However, unity goes only as far as both individuals agree on the path. McCain wants to suspend the Friday debate if the package is not completed, while Obama wants to go ahead with the debates as scheduled. Who is right?

If McCain stands by his word and he chooses not to show up for the debate, you will have Obama standing on stage with a moderator. Will Obama look like a stooge because he is there by himself with no one to debate with while McCain has his sleeves rolled up working with the rest of his fellow Congressmen? Will McCain look like he is ducking out of a debate because he doesn’t want to be upstaged by Obama? I can’t say for sure, but depending on how this all unfolds, one person is going to score major political points and most likely secure the election by their actions if this unfolds.

My recommendation regarding the debate on Friday is this: change the debate from a foreign policy discussion to and economic one, and turn it into a roundtable rather than your typical debate. Having both candidates sitting down, discussing the points of the original package and the changes made, explaining why they think each point is good or bad will be more beneficial to the voting public than anything else. In addition, by providing more information through this format, it can reassure the general public regarding how the package will work and that the government could potentially recoup all of their investment as the market improves, meaning the $700 Billion won’t remain on the debt for long. However, I doubt either candidate would agree to this change.

One thing that McCain has already accomplished with his announcement today is to get the President to agree to and call for both McCain and Obama to come to Washington to discuss the issue. Since it is most likely that the next President will still be dealing with this issue in January, it makes perfect sense that both candidates be involved in a leadership capacity to discuss with the President and the Fed all the aspects of the problems facing the financial sector and the bailout package. Both Obama’s and McCain’s position on the issue are similar enough so that there shouldn’t be much disagreement on how they want to see the package addresses the issues causing the financial crisis.

This is a big gamble for McCain. While his campaign is structured around “Country First,” this action is as much patriotic as it is political. McCain knows that there is a potential for a big political windfall from this action, but there is also great risk. If McCain is viewed as being influential in getting the bill signed, he will win. If he is viewed as being a distraction, he will lose. If the package is signed and the markets begin to improve, he will win. If the market continues to slip, he will lose. If the package is successful and McCain continues on his merry way, he will win. If he overly politicizes his hand in the package, he will lose. Either way this election unfolds, today will be viewed as a case study in political science classes for decades to come.

Related articles:
The Fireside Post - “Obama Responds to McCain Campaign Suspension”
Disillusioned Words - “John McCain Just Lost My Vote”
The BoBo Files - “McCain Suspends His Campaign?”
The Washington Post - “Obama and McCain Issue Joint Statement on the Economy”
Bloomberg - “McCain Suspends Campaign; Obama Presses for Debate”
CNN - “CNN confirms: McCain, Obama to meet with Bush about bailout”
Drudge Report - “McCain Suspends Campaign to Focus on Economy; Wants Debate Delay”

Up, up up your premium
up up up your premium
up up up your premium
up up up your premium

Scribble away and balance the books
Scribble away and balance the books

It’s fun to charter an accountant
And sail the wide accountancy
To fin, explore, the funds offshore
And skirt the shoals of bankruptcy

It can be manly in insurance
We’ll up your premium semi-annually
It’s all tax-deductible
We’re fairly incorruptible
Sailing on the wide accountancy

Sail away!

- “Accountancy Shanty” by Monty Python

If you have ever seen the Monty Python movies, then you would recognize the lyrics above. The battle between the old business and the new corporation leads to many hijinks including filing cabinet cannons and sword fights with umbrellas and briefcases. The silliness of it all can only be matched by the collapse of many of our large financial companies and institutions over the past few weeks. Well, it would be silly if it wasn’t so serious.

What was set off by the subprime mortgage meltdown in 2007, compliments of an overactive housing market fueled by adjustable rate mortgages (ARMs), has led to many large financial holding institutions to sell themselves off to outside investors, break their company up into parts, declare bankruptcy, or worse of all, being taken over by the government. Though it isn’t the first time the government has taken over businesses to help stabilize a business sector, it is the first time that the involvement has reached the scale that we are experiencing today. Forecasts show that, by the time all is said and done, the government will spend well over $1 Trillion; or basically socializing the large capital financial sector.

In many ways, the government has been involved for years. Freddie Mac and Fannie Mae, for example, are “quasi-government entities” since they were government-sponsored entities (GSE). These GSEs are created by the government in order to ensure that there is credit available in the financial and farming industries, that in return lowers the cost of borrowing so companies can do business. In other ways, primarily through regulation, the government controls how loans and transactions can be made between businesses to prevent abuse and fraud.

However, there was no active involvement over the lending process to review what types of loans were being provided to high-risk borrowers that were being unfairly targeted by lenders. With the government keeping interest rates artificially low to sustain the economy while promoting home ownership and “the American Dream,” the housing market boomed during the midyears of this decade to a point where the market became oversaturated. Since publicly traded companies require forward-looking growth in order to sustain their market value, some financial institutions were willing to create loans that had higher risk in order to sustain activity. These loans were bundled and resold on the market by other institutions willing to assume the risks for higher returns. As the dominoes of foreclosures began to fall, so did the housing prices, resulting in an oversupply of houses on the market without buyers.

Companies were left with exposure to the fallout from the subprime crisis, resulting in margin calls by the market, loss of access to new capital, and falling revenue streams. This negative pressure has brought us to where we are today. Congress and the White House are currently working on a new $700 Billion bailout package to help failing financial firms that have a significant impact on the larger financial market. This package includes buying up “toxic assets” that should have never been created to begin with through the Troubled Asset Relief Program. Some key points in the proposal include:

• $50 Billion provided to insure money market and mutual fund programs
• Fannie Mae and Freddie Mac will continue to buy mortgage-backed securities
• Purchasing troubled liquid assets off of firms that cannot support them

The package is being met with resistance, as some feel additional items should be added, including capping the retirement packages of CEOs of the failing financial systems, increasing oversight of the bailout program, and how the government and taxpayers should benefit from the improvement of the financial condition of the companies that benefit from the governments action. Others fear that the bailout package is being rushed unnecessarily, leaving the possibility of more problems being created rather than helping the situation. This has also spread over into the current Presidential race. While both Obama and McCain spar against each other about the details of their plans “if they were President,” the both agree that there should be increased oversight in the bailout program and some level of consumer protection be implemented to prevent future abuse by the financial sector.

While much of this might sound Greek to you (and I admit it, some of it is even over my head), you can feel assured about one thing. You are seeing the birth of a new economic model. The old guards of the market are fading off into the sunset while new “hybrid” systems take over. Investment banks will merge or transform into traditional banks, expanding their access to capital to spread out their risk potential. Foreign investors will gain a greater access to our economic machine, holding controlling assets long enough to make a profit and to sell the stakes back to us. You will probably see non-banking institutions entering the market as well, such as retail and technology companies with large financial assets willing to take on some risk for a large possible payoff in the future. Also, as the economy recovers, the government will be able to spin off the assets they’ve purchased, hopefully at a profit.

So while things look bad now, they will improve in time. We have many examples in the past from where we can draw hope. Is this the time to invest in stocks as a private investor? If you are in a financially secure position, then now could be a good time to pick up stocks that have been pulled through the ringers as the DOW swings 1000 points in just a few days. For others, I would wait until things calm down, just so you don’t put your financial security at risk. Until then, everyone should make sure that their savings are held in FDIC insured banks, and that you do your own research to make sure your banking institution is weathering the storm. While we are in a financial “meltdown,” most banks are actually doing quite well. So do your homework and practice a little patience.

Related articles:
A Disgruntled Republican - “What Caused the Economic Crisis”
Globe Street - “Feds Unveil Troubled Asset Relief Program”
Miami Herald - “Democrats in Congress add restrictions to $700 billion bailout bill”
Bloomberg - “McCain, Obama Call for More Oversight, Limits on Executive Pay”
Reuters - “Obama, McCain battle over financial crisis”
Seattle Post-Intelligencer - “McCain should have stood by his words”
Associated Press - “Congress, Bush team agree on some bailout terms”

In honor of Constitution Day and Citizenship Day, marking the ratification of the U.S. Constitution on September 17th, 1787, please take a moment to read the document that establishes our current form of government.

Preamble

We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.

Article I

Section 1. All legislative powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.

Section 2. The House of Representatives shall be composed of members chosen every second year by the people of the several states, and the electors in each state shall have the qualifications requisite for electors of the most numerous branch of the state legislature.

No person shall be a Representative who shall not have attained to the age of twenty five years, and been seven years a citizen of the United States, and who shall not, when elected, be an inhabitant of that state in which he shall be chosen.

Representatives and direct taxes shall be apportioned among the several states which may be included within this union, according to their respective numbers, which shall be determined by adding to the whole number of free persons, including those bound to service for a term of years, and excluding Indians not taxed, three fifths of all other Persons. The actual Enumeration shall be made within three years after the first meeting of the Congress of the United States, and within every subsequent term of ten years, in such manner as they shall by law direct. The number of Representatives shall not exceed one for every thirty thousand, but each state shall have at least one Representative; and until such enumeration shall be made, the state of New Hampshire shall be entitled to chuse three, Massachusetts eight, Rhode Island and Providence Plantations one, Connecticut five, New York six, New Jersey four, Pennsylvania eight, Delaware one, Maryland six, Virginia ten, North Carolina five, South Carolina five, and Georgia three.

When vacancies happen in the Representation from any state, the executive authority thereof shall issue writs of election to fill such vacancies.

The House of Representatives shall choose their speaker and other officers; and shall have the sole power of impeachment.

Section 3. The Senate of the United States shall be composed of two Senators from each state, chosen by the legislature thereof, for six years; and each Senator shall have one vote.

Immediately after they shall be assembled in consequence of the first election, they shall be divided as equally as may be into three classes. The seats of the Senators of the first class shall be vacated at the expiration of the second year, of the second class at the expiration of the fourth year, and the third class at the expiration of the sixth year, so that one third may be chosen every second year; and if vacancies happen by resignation, or otherwise, during the recess of the legislature of any state, the executive thereof may make temporary appointments until the next meeting of the legislature, which shall then fill such vacancies.

No person shall be a Senator who shall not have attained to the age of thirty years, and been nine years a citizen of the United States and who shall not, when elected, be an inhabitant of that state for which he shall be chosen.

The Vice President of the United States shall be President of the Senate, but shall have no vote, unless they be equally divided.

The Senate shall choose their other officers, and also a President pro tempore, in the absence of the Vice President, or when he shall exercise the office of President of the United States.

The Senate shall have the sole power to try all impeachments. When sitting for that purpose, they shall be on oath or affirmation. When the President of the United States is tried, the Chief Justice shall preside: And no person shall be convicted without the concurrence of two thirds of the members present.

Judgment in cases of impeachment shall not extend further than to removal from office, and disqualification to hold and enjoy any office of honor, trust or profit under the United States: but the party convicted shall nevertheless be liable and subject to indictment, trial, judgment and punishment, according to law.

Section 4. The times, places and manner of holding elections for Senators and Representatives, shall be prescribed in each state by the legislature thereof; but the Congress may at any time by law make or alter such regulations, except as to the places of choosing Senators.

The Congress shall assemble at least once in every year, and such meeting shall be on the first Monday in December, unless they shall by law appoint a different day.

Section 5. Each House shall be the judge of the elections, returns and qualifications of its own members, and a majority of each shall constitute a quorum to do business; but a smaller number may adjourn from day to day, and may be authorized to compel the attendance of absent members, in such manner, and under such penalties as each House may provide.

Each House may determine the rules of its proceedings, punish its members for disorderly behavior, and, with the concurrence of two thirds, expel a member.

Each House shall keep a journal of its proceedings, and from time to time publish the same, excepting such parts as may in their judgment require secrecy; and the yeas and nays of the members of either House on any question shall, at the desire of one fifth of those present, be entered on the journal.

Neither House, during the session of Congress, shall, without the consent of the other, adjourn for more than three days, nor to any other place than that in which the two Houses shall be sitting.

Section 6. The Senators and Representatives shall receive a compensation for their services, to be ascertained by law, and paid out of the treasury of the United States. They shall in all cases, except treason, felony and breach of the peace, be privileged from arrest during their attendance at the session of their respective Houses, and in going to and returning from the same; and for any speech or debate in either House, they shall not be questioned in any other place.

No Senator or Representative shall, during the time for which he was elected, be appointed to any civil office under the authority of the United States, which shall have been created, or the emoluments whereof shall have been increased during such time: and no person holding any office under the United States, shall be a member of either House during his continuance in office.

Section 7. All bills for raising revenue shall originate in the House of Representatives; but the Senate may propose or concur with amendments as on other Bills.

Every bill which shall have passed the House of Representatives and the Senate, shall, before it become a law, be presented to the President of the United States; if he approve he shall sign it, but if not he shall return it, with his objections to that House in which it shall have originated, who shall enter the objections at large on their journal, and proceed to reconsider it. If after such reconsideration two thirds of that House shall agree to pass the bill, it shall be sent, together with the objections, to the other House, by which it shall likewise be reconsidered, and if approved by two thirds of that House, it shall become a law. But in all such cases the votes of both Houses shall be determined by yeas and nays, and the names of the persons voting for and against the bill shall be entered on the journal of each House respectively. If any bill shall not be returned by the President within ten days (Sundays excepted) after it shall have been presented to him, the same shall be a law, in like manner as if he had signed it, unless the Congress by their adjournment prevent its return, in which case it shall not be a law.

Every order, resolution, or vote to which the concurrence of the Senate and House of Representatives may be necessary (except on a question of adjournment) shall be presented to the President of the United States; and before the same shall take effect, shall be approved by him, or being disapproved by him, shall be repassed by two thirds of the Senate and House of Representatives, according to the rules and limitations prescribed in the case of a bill.

Section 8. The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States;

To borrow money on the credit of the United States;

To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;

To establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies throughout the United States;

To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;

To provide for the punishment of counterfeiting the securities and current coin of the United States;

To establish post offices and post roads;

To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries;

To constitute tribunals inferior to the Supreme Court;

To define and punish piracies and felonies committed on the high seas, and offenses against the law of nations;

To declare war, grant letters of marque and reprisal, and make rules concerning captures on land and water;

To raise and support armies, but no appropriation of money to that use shall be for a longer term than two years;

To provide and maintain a navy;

To make rules for the government and regulation of the land and naval forces;

To provide for calling forth the militia to execute the laws of the union, suppress insurrections and repel invasions;

To provide for organizing, arming, and disciplining, the militia, and for governing such part of them as may be employed in the service of the United States, reserving to the states respectively, the appointment of the officers, and the authority of training the militia according to the discipline prescribed by Congress;

To exercise exclusive legislation in all cases whatsoever, over such District (not exceeding ten miles square) as may, by cession of particular states, and the acceptance of Congress, become the seat of the government of the United States, and to exercise like authority over all places purchased by the consent of the legislature of the state in which the same shall be, for the erection of forts, magazines, arsenals, dockyards, and other needful buildings;–And

To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof.

Section 9. The migration or importation of such persons as any of the states now existing shall think proper to admit, shall not be prohibited by the Congress prior to the year one thousand eight hundred and eight, but a tax or duty may be imposed on such importation, not exceeding ten dollars for each person.

The privilege of the writ of habeas corpus shall not be suspended, unless when in cases of rebellion or invasion the public safety may require it.

No bill of attainder or ex post facto Law shall be passed.

No capitation, or other direct, tax shall be laid, unless in proportion to the census or enumeration herein before directed to be taken.

No tax or duty shall be laid on articles exported from any state.

No preference shall be given by any regulation of commerce or revenue to the ports of one state over those of another: nor shall vessels bound to, or from, one state, be obliged to enter, clear or pay duties in another.

No money shall be drawn from the treasury, but in consequence of appropriations made by law; and a regular statement and account of receipts and expenditures of all public money shall be published from time to time.

No title of nobility shall be granted by the United States: and no person holding any office of profit or trust under them, shall, without the consent of the Congress, accept of any present, emolument, office, or title, of any kind whatever, from any king, prince, or foreign state.

Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.

No state shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing it’s inspection laws: and the net produce of all duties and imposts, laid by any state on imports or exports, shall be for the use of the treasury of the United States; and all such laws shall be subject to the revision and control of the Congress.

No state shall, without the consent of Congress, lay any duty of tonnage, keep troops, or ships of war in time of peace, enter into any agreement or compact with another state, or with a foreign power, or engage in war, unless actually invaded, or in such imminent danger as will not admit of delay.

Article II

Section 1. The executive power shall be vested in a President of the United States of America. He shall hold his office during the term of four years, and, together with the Vice President, chosen for the same term, be elected, as follows:

Each state shall appoint, in such manner as the Legislature thereof may direct, a number of electors, equal to the whole number of Senators and Representatives to which the State may be entitled in the Congress: but no Senator or Representative, or person holding an office of trust or profit under the United States, shall be appointed an elector.

The electors shall meet in their respective states, and vote by ballot for two persons, of whom one at least shall not be an inhabitant of the same state with themselves. And they shall make a list of all the persons voted for, and of the number of votes for each; which list they shall sign and certify, and transmit sealed to the seat of the government of the United States, directed to the President of the Senate. The President of the Senate shall, in the presence of the Senate and House of Representatives, open all the certificates, and the votes shall then be counted. The person having the greatest number of votes shall be the President, if such number be a majority of the whole number of electors appointed; and if there be more than one who have such majority, and have an equal number of votes, then the House of Representatives shall immediately choose by ballot one of them for President; and if no person have a majority, then from the five highest on the list the said House shall in like manner choose the President. But in choosing the President, the votes shall be taken by States, the representation from each state having one vote; A quorum for this purpose shall consist of a member or members from two thirds of the states, and a majority of all the states shall be necessary to a choice. In every case, after the choice of the President, the person having the greatest number of votes of the electors shall be the Vice President. But if there should remain two or more who have equal votes, the Senate shall choose from them by ballot the Vice President.

The Congress may determine the time of choosing the electors, and the day on which they shall give their votes; which day shall be the same throughout the United States.

No person except a natural born citizen, or a citizen of the United States, at the time of the adoption of this Constitution, shall be eligible to the office of President; neither shall any person be eligible to that office who shall not have attained to the age of thirty five years, and been fourteen Years a resident within the United States.

In case of the removal of the President from office, or of his death, resignation, or inability to discharge the powers and duties of the said office, the same shall devolve on the Vice President, and the Congress may by law provide for the case of removal, death, resignation or inability, both of the President and Vice President, declaring what officer shall then act as President, and such officer shall act accordingly, until the disability be removed, or a President shall be elected.

The President shall, at stated times, receive for his services, a compensation, which shall neither be increased nor diminished during the period for which he shall have been elected, and he shall not receive within that period any other emolument from the United States, or any of them.

Before he enter on the execution of his office, he shall take the following oath or affirmation:–”I do solemnly swear (or affirm) that I will faithfully execute the office of President of the United States, and will to the best of my ability, preserve, protect and defend the Constitution of the United States.”

Section 2. The President shall be commander in chief of the Army and Navy of the United States, and of the militia of the several states, when called into the actual service of the United States; he may require the opinion, in writing, of the principal officer in each of the executive departments, upon any subject relating to the duties of their respective offices, and he shall have power to grant reprieves and pardons for offenses against the United States, except in cases of impeachment.

He shall have power, by and with the advice and consent of the Senate, to make treaties, provided two thirds of the Senators present concur; and he shall nominate, and by and with the advice and consent of the Senate, shall appoint ambassadors, other public ministers and consuls, judges of the Supreme Court, and all other officers of the United States, whose appointments are not herein otherwise provided for, and which shall be established by law: but the Congress may by law vest the appointment of such inferior officers, as they think proper, in the President alone, in the courts of law, or in the heads of departments.

The President shall have power to fill up all vacancies that may happen during the recess of the Senate, by granting commissions which shall expire at the end of their next session.

Section 3. He shall from time to time give to the Congress information of the state of the union, and recommend to their consideration such measures as he shall judge necessary and expedient; he may, on extraordinary occasions, convene both Houses, or either of them, and in case of disagreement between them, with respect to the time of adjournment, he may adjourn them to such time as he shall think proper; he shall receive ambassadors and other public ministers; he shall take care that the laws be faithfully executed, and shall commission all the officers of the United States.

Section 4. The President, Vice President and all civil officers of the United States, shall be removed from office on impeachment for, and conviction of, treason, bribery, or other high crimes and misdemeanors.

Article III

Section 1. The judicial power of the United States, shall be vested in one Supreme Court, and in such inferior courts as the Congress may from time to time ordain and establish. The judges, both of the supreme and inferior courts, shall hold their offices during good behaviour, and shall, at stated times, receive for their services, a compensation, which shall not be diminished during their continuance in office.

Section 2. The judicial power shall extend to all cases, in law and equity, arising under this Constitution, the laws of the United States, and treaties made, or which shall be made, under their authority;–to all cases affecting ambassadors, other public ministers and consuls;–to all cases of admiralty and maritime jurisdiction;–to controversies to which the United States shall be a party;–to controversies between two or more states;–between a state and citizens of another state;–between citizens of different states;–between citizens of the same state claiming lands under grants of different states, and between a state, or the citizens thereof, and foreign states, citizens or subjects.

In all cases affecting ambassadors, other public ministers and consuls, and those in which a state shall be party, the Supreme Court shall have original jurisdiction. In all the other cases before mentioned, the Supreme Court shall have appellate jurisdiction, both as to law and fact, with such exceptions, and under such regulations as the Congress shall make.

The trial of all crimes, except in cases of impeachment, shall be by jury; and such trial shall be held in the state where the said crimes shall have been committed; but when not committed within any state, the trial shall be at such place or places as the Congress may by law have directed.

Section 3. Treason against the United States, shall consist only in levying war against them, or in adhering to their enemies, giving them aid and comfort. No person shall be convicted of treason unless on the testimony of two witnesses to the same overt act, or on confession in open court.

The Congress shall have power to declare the punishment of treason, but no attainder of treason shall work corruption of blood, or forfeiture except during the life of the person attainted.

Article IV

Section 1. Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state. And the Congress may by general laws prescribe the manner in which such acts, records, and proceedings shall be proved, and the effect thereof.

Section 2. The citizens of each state shall be entitled to all privileges and immunities of citizens in the several states.

A person charged in any state with treason, felony, or other crime, who shall flee from justice, and be found in another state, shall on demand of the executive authority of the state from which he fled, be delivered up, to be removed to the state having jurisdiction of the crime.

No person held to service or labor in one state, under the laws thereof, escaping into another, shall, in consequence of any law or regulation therein, be discharged from such service or labor, but shall be delivered up on claim of the party to whom such service or labor may be due.

Section 3. New states may be admitted by the Congress into this union; but no new states shall be formed or erected within the jurisdiction of any other state; nor any state be formed by the junction of two or more states, or parts of states, without the consent of the legislatures of the states concerned as well as of the Congress.

The Congress shall have power to dispose of and make all needful rules and regulations respecting the territory or other property belonging to the United States; and nothing in this Constitution shall be so construed as to prejudice any claims of the United States, or of any particular state.

Section 4. The United States shall guarantee to every state in this union a republican form of government, and shall protect each of them against invasion; and on application of the legislature, or of the executive (when the legislature cannot be convened) against domestic violence.

Article V

The Congress, whenever two thirds of both houses shall deem it necessary, shall propose amendments to this Constitution, or, on the application of the legislatures of two thirds of the several states, shall call a convention for proposing amendments, which, in either case, shall be valid to all intents and purposes, as part of this Constitution, when ratified by the legislatures of three fourths of the several states, or by conventions in three fourths thereof, as the one or the other mode of ratification may be proposed by the Congress; provided that no amendment which may be made prior to the year one thousand eight hundred and eight shall in any manner affect the first and fourth clauses in the ninth section of the first article; and that no state, without its consent, shall be deprived of its equal suffrage in the Senate.

Article VI

All debts contracted and engagements entered into, before the adoption of this Constitution, shall be as valid against the United States under this Constitution, as under the Confederation.

This Constitution, and the laws of the United States which shall be made in pursuance thereof; and all treaties made, or which shall be made, under the authority of the United States, shall be the supreme law of the land; and the judges in every state shall be bound thereby, anything in the Constitution or laws of any State to the contrary notwithstanding.

The Senators and Representatives before mentioned, and the members of the several state legislatures, and all executive and judicial officers, both of the United States and of the several states, shall be bound by oath or affirmation, to support this Constitution; but no religious test shall ever be required as a qualification to any office or public trust under the United States.

Article VII

The ratification of the conventions of nine states, shall be sufficient for the establishment of this Constitution between the states so ratifying the same.

Done in convention by the unanimous consent of the states present the seventeenth day of September in the year of our Lord one thousand seven hundred and eighty seven and of the independence of the United States of America the twelfth.

In witness whereof We have hereunto subscribed our Names,

G. Washington-Presidt. and deputy from Virginia

New Hampshire: John Langdon, Nicholas Gilman

Massachusetts: Nathaniel Gorham, Rufus King

Connecticut: Wm: Saml. Johnson, Roger Sherman

New York: Alexander Hamilton

New Jersey: Wil: Livingston, David Brearly, Wm. Paterson, Jona: Dayton

Pennsylvania: B. Franklin, Thomas Mifflin, Robt. Morris, Geo. Clymer, Thos. FitzSimons, Jared Ingersoll, James Wilson, Gouv Morris

Delaware: Geo: Read, Gunning Bedford jun, John Dickinson, Richard Bassett, Jaco: Broom

Maryland: James McHenry, Dan of St Thos. Jenifer, Danl Carroll

Virginia: John Blair–, James Madison Jr.

North Carolina: Wm. Blount, Richd. Dobbs Spaight, Hu Williamson

South Carolina: J. Rutledge, Charles Cotesworth Pinckney, Charles Pinckney, Pierce Butler

Georgia: William Few, Abr Baldwin

The Amendments 

Amendment I - Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.

Amendment II - A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed.

Amendment III - No soldier shall, in time of peace be quartered in any house, without the consent of the owner, nor in time of war, but in a manner to be prescribed by law.

Amendment IV - The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

Amendment V - No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a grand jury, except in cases arising in the land or naval forces, or in the militia, when in actual service in time of war or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

Amendment VI - In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the state and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the assistance of counsel for his defense.

Amendment VII - In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise reexamined in any court of the United States, than according to the rules of the common law.

Amendment VIII - Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

Amendment IX - The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.

Amendment X - The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.

Amendment XI - The judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by citizens of another state, or by citizens or subjects of any foreign state.

Amendment XII - The electors shall meet in their respective states and vote by ballot for President and Vice-President, one of whom, at least, shall not be an inhabitant of the same state with themselves; they shall name in their ballots the person voted for as President, and in distinct ballots the person voted for as Vice-President, and they shall make distinct lists of all persons voted for as President, and of all persons voted for as Vice-President, and of the number of votes for each, which lists they shall sign and certify, and transmit sealed to the seat of the government of the United States, directed to the President of the Senate;–The President of the Senate shall, in the presence of the Senate and House of Representatives, open all the certificates and the votes shall then be counted;–the person having the greatest number of votes for President, shall be the President, if such number be a majority of the whole number of electors appointed; and if no person have such majority, then from the persons having the highest numbers not exceeding three on the list of those voted for as President, the House of Representatives shall choose immediately, by ballot, the President. But in choosing the President, the votes shall be taken by states, the representation from each state having one vote; a quorum for this purpose shall consist of a member or members from two-thirds of the states, and a majority of all the states shall be necessary to a choice. And if the House of Representatives shall not choose a President whenever the right of choice shall devolve upon them, before the fourth day of March next following, then the Vice-President shall act as President, as in the case of the death or other constitutional disability of the President. The person having the greatest number of votes as Vice-President, shall be the Vice-President, if such number be a majority of the whole number of electors appointed, and if no person have a majority, then from the two highest numbers on the list, the Senate shall choose the Vice-President; a quorum for the purpose shall consist of two-thirds of the whole number of Senators, and a majority of the whole number shall be necessary to a choice. But no person constitutionally ineligible to the office of President shall be eligible to that of Vice-President of the United States.

Amendment XIII - Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.

Section 2. Congress shall have power to enforce this article by appropriate legislation.

Amendment XIV - Section 1. All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the state wherein they reside. No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any state deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.

Section 2. Representatives shall be apportioned among the several states according to their respective numbers, counting the whole number of persons in each state, excluding Indians not taxed. But when the right to vote at any election for the choice of electors for President and Vice President of the United States, Representatives in Congress, the executive and judicial officers of a state, or the members of the legislature thereof, is denied to any of the male inhabitants of such state, being twenty-one years of age, and citizens of the United States, or in any way abridged, except for participation in rebellion, or other crime, the basis of representation therein shall be reduced in the proportion which the number of such male citizens shall bear to the whole number of male citizens twenty-one years of age in such state.

Section 3. No person shall be a Senator or Representative in Congress, or elector of President and Vice President, or hold any office, civil or military, under the United States, or under any state, who, having previously taken an oath, as a member of Congress, or as an officer of the United States, or as a member of any state legislature, or as an executive or judicial officer of any state, to support the Constitution of the United States, shall have engaged in insurrection or rebellion against the same, or given aid or comfort to the enemies thereof. But Congress may by a vote of two-thirds of each House, remove such disability.

Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any state shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

Section 5. The Congress shall have power to enforce, by appropriate legislation, the provisions of this article.

Amendment XV - Section 1. The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any state on account of race, color, or previous condition of servitude.

Section 2. The Congress shall have power to enforce this article by appropriate legislation.

Amendment XVI - The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration.

Amendment XVII - The Senate of the United States shall be composed of two Senators from each state, elected by the people thereof, for six years; and each Senator shall have one vote. The electors in each state shall have the qualifications requisite for electors of the most numerous branch of the state legislatures.

When vacancies happen in the representation of any state in the Senate, the executive authority of such state shall issue writs of election to fill such vacancies: Provided, that the legislature of any state may empower the executive thereof to make temporary appointments until the people fill the vacancies by election as the legislature may direct.

This amendment shall not be so construed as to affect the election or term of any Senator chosen before it becomes valid as part of the Constitution.

Amendment XVIII - Section 1. After one year from the ratification of this article the manufacture, sale, or transportation of intoxicating liquors within, the importation thereof into, or the exportation thereof from the United States and all territory subject to the jurisdiction thereof for beverage purposes is hereby prohibited.

Section 2. The Congress and the several states shall have concurrent power to enforce this article by appropriate legislation.

Section 3. This article shall be inoperative unless it shall have been ratified as an amendment to the Constitution by the legislatures of the several states, as provided in the Constitution, within seven years from the date of the submission hereof to the states by the Congress.

Amendment XIX - The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any state on account of sex.

Congress shall have power to enforce this article by appropriate legislation.

Amendment XX - Section 1. The terms of the President and Vice President shall end at noon on the 20th day of January, and the terms of Senators and Representatives at noon on the 3d day of January, of the years in which such terms would have ended if this article had not been ratified; and the terms of their successors shall then begin.

Section 2. The Congress shall assemble at least once in every year, and such meeting shall begin at noon on the 3d day of January, unless they shall by law appoint a different day.

Section 3. If, at the time fixed for the beginning of the term of the President, the President elect shall have died, the Vice President elect shall become President. If a President shall not have been chosen before the time fixed for the beginning of his term, or if the President elect shall have failed to qualify, then the Vice President elect shall act as President until a President shall have qualified; and the Congress may by law provide for the case wherein neither a President elect nor a Vice President elect shall have qualified, declaring who shall then act as President, or the manner in which one who is to act shall be selected, and such person shall act accordingly until a President or Vice President shall have qualified.

Section 4. The Congress may by law provide for the case of the death of any of the persons from whom the House of Representatives may choose a President whenever the right of choice shall have devolved upon them, and for the case of the death of any of the persons from whom the Senate may choose a Vice President whenever the right of choice shall have devolved upon them.

Section 5. Sections 1 and 2 shall take effect on the 15th day of October following the ratification of this article.

Section 6. This article shall be inoperative unless it shall have been ratified as an amendment to the Constitution by the legislatures of three-fourths of the several states within seven years from the date of its submission.

Amendment XXI - Section 1. The eighteenth article of amendment to the Constitution of the United States is hereby repealed.

Section 2. The transportation or importation into any state, territory, or possession of the United States for delivery or use therein of intoxicating liquors, in violation of the laws thereof, is hereby prohibited.

Section 3. This article shall be inoperative unless it shall have been ratified as an amendment to the Constitution by conventions in the several states, as provided in the Constitution, within seven years from the date of the submission hereof to the states by the Congress.

Amendment XXII - Section 1. No person shall be elected to the office of the President more than twice, and no person who has held the office of President, or acted as President, for more than two years of a term to which some other person was elected President shall be elected to the office of the President more than once. But this article shall not apply to any person holding the office of President when this article was proposed by the Congress, and shall not prevent any person who may be holding the office of President, or acting as President, during the term within which this article becomes operative from holding the office of President or acting as President during the remainder of such term.

Section 2. This article shall be inoperative unless it shall have been ratified as an amendment to the Constitution by the legislatures of three-fourths of the several states within seven years from the date of its submission to the states by the Congress.

Amendment XXIII - Section 1. The District constituting the seat of government of the United States shall appoint in such manner as the Congress may direct:

A number of electors of President and Vice President equal to the whole number of Senators and Representatives in Congress to which the District would be entitled if it were a state, but in no event more than the least populous state; they shall be in addition to those appointed by the states, but they shall be considered, for the purposes of the election of President and Vice President, to be electors appointed by a state; and they shall meet in the District and perform such duties as provided by the twelfth article of amendment.

Section 2. The Congress shall have power to enforce this article by appropriate legislation.

Amendment XXIV - Section 1. The right of citizens of the United States to vote in any primary or other election for President or Vice President, for electors for President or Vice President, or for Senator or Representative in Congress, shall not be denied or abridged by the United States or any state by reason of failure to pay any poll tax or other tax.

Section 2. The Congress shall have power to enforce this article by appropriate legislation.

Amendment XXV - Section 1. In case of the removal of the President from office or of his death or resignation, the Vice President shall become President.

Section 2. Whenever there is a vacancy in the office of the Vice President, the President shall nominate a Vice President who shall take office upon confirmation by a majority vote of both Houses of Congress.

Section 3. Whenever the President transmits to the President pro tempore of the Senate and the Speaker of the House of Representatives his written declaration that he is unable to discharge the powers and duties of his office, and until he transmits to them a written declaration to the contrary, such powers and duties shall be discharged by the Vice President as Acting President.

Section 4. Whenever the Vice President and a majority of either the principal officers of the executive departments or of such other body as Congress may by law provide, transmit to the President pro tempore of the Senate and the Speaker of the House of Representatives their written declaration that the President is unable to discharge the powers and duties of his office, the Vice President shall immediately assume the powers and duties of the office as Acting President.

Thereafter, when the President transmits to the President pro tempore of the Senate and the Speaker of the House of Representatives his written declaration that no inability exists, he shall resume the powers and duties of his office unless the Vice President and a majority of either the principal officers of the executive department or of such other body as Congress may by law provide, transmit within four days to the President pro tempore of the Senate and the Speaker of the House of Representatives their written declaration that the President is unable to discharge the powers and duties of his office. Thereupon Congress shall decide the issue, assembling within forty-eight hours for that purpose if not in session. If the Congress, within twenty-one days after receipt of the latter written declaration, or, if Congress is not in session, within twenty-one days after Congress is required to assemble, determines by two-thirds vote of both Houses that the President is unable to discharge the powers and duties of his office, the Vice President shall continue to discharge the same as Acting President; otherwise, the President shall resume the powers and duties of his office.

Amendment XXVI - Section 1. The right of citizens of the United States, who are 18 years of age or older, to vote, shall not be denied or abridged by the United States or any state on account of age.

Section 2. The Congress shall have the power to enforce this article by appropriate legislation.

Amendment XXVII - No law, varying the compensation for the services of the Senators and Representatives, shall take effect, until an election of Representatives shall have intervened.

Today, U.S. auto manufacturer General Motors unveiled the official production model of their long-awaited Chevy Volt; a new generation electric car that runs off of a bank of batteries rather than an internal combustion/hybrid engine. In this design, the lithium-ion battery system will power the vehicle for 40 miles, and a flex-fuel powered generator will power to the batteries for an additional 320 miles. It will take 10 hours to fully charge the battery system, and the flex-fuel motor will achieve 50 miles per gallon (using a 12-gallon fuel tank) if the batteries are fully discharged, or 150 mpg with the batteries fully charged.

This is a big step for the U.S. auto manufacturers. GM had an earlier model that was all electric, though it was made in only a small supply and was not very efficient. The goal is to eventually create an all-electric car that does not require the consumption of oil; a sentiment shared by many including Barack Obama and John McCain. So what is required to achieve this?

Batteries - If we are taking a non-hydrogen/chemical fuel cell approach, we need to develop a batter that is capable of holding a large charge without being too heavy. The current lithium-ion battery is the most practical model at the time, but we are still limited by size and storage capacity. Additionally, lithium-ion batteries are expensive and not environmentally friendly to recycle. One possible alternative is a super-capacitor rather than a traditional battery. EEStor is developing such a capacitor that can be charged in a matter of minutes while providing a higher storage capacity for just a few hundred pounds.

Power supply - Simply creating electrical cars will not take us off the need of oil. While we don’t use oil to provide most of our power supply, it is used in some locations, and with the increase in electrical demand will result in the need for increased electrical supply. While we can continue to consume oil and natural gas for power generation, nuclear power is the optimal technology currently available that can meet the demand. The concern with nuclear power is stability and waste. For all the concern regarding nuclear safety, the world has actually had a great run with nuclear power with only a handful of incidents, and only one being catastrophic. Future plants can be constructed in unpopulated areas to minimize and potential risk of exposure if there is a plant failure. Additionally, new reactors known as “Pebble Bed Reactors” are more stable and compact due to the way the fuel is formed and supplied into the reaction chamber. Graphite spheres encase small amounts of uranium. Due to this design, the risk for ‘meltdown’ is minimized greatly.

These two items are the major roadblocks to bringing about a new age in U.S. automobiles. But let us not deceive ourselves. If we are able to bring about the new capacitors for the electric cars and we build new nuclear power plants, we are still going to need a lot of oil. Why? There will still be traditional internal combustion engine cars on the road that will require gasoline. People cannot practically just go out and buy a new vehicle; especially if the initial models being released are cost prohibited to the consumers. We experimented with tax breaks for people buying hybrid cars, and we might have to do the same with electrical cars. We don’t yet know what the market price for the Chevy Volt will be, but it might be an indicator of how expensive the next generation cars will be and if the government (that being, the taxpayers) will need to subsidize the first few thousand car buyers.

Related articles:
Physorg - “Safe Nuclear Power and Green Hydrogen Fuel”
EEStor Batteries - Official Website
Wired - “Next-Gen Car Batteries Promise Longer Life, More Power”
USA Today - “Chevy Volt concept offers 150 mpg, but the plug-in hybrid needs a new technology”
CNN Money - “GM debuts the Chevy Volt”