Rome, GA; March 16, 2009. – After plunging to ten-year lows that wiped out half the notional value in the stock market from the highs of February 2007 (when the Dow Jones average topped 14,000), Wall Street staged a four-day rally this past week, climbing out of the 6500 trough to close above 7100. Already Establishment politicians and pundits are proclaiming that recovery is here and now it’s safe to go back in the market. We don’t wish to rain on the parade, but the SNC Board of Governors warns our fellow Southerners not to put any, well, stock in these pronouncements. For last week also saw other disturbing developments that forestall any realistic hope of an imminent recovery.

Early in the week the Congress passed a stop-gap, omnibus spending bill to finish out Federal funding for Fiscal Year 2009. This $410 billion extravaganza comes on the heels of President Obama’s $787 billion stimulus bill. And that astronomical spending is piled on top of regular appropriations for Fiscal Year 2009 (under President Bush), which have pushed the Federal deficit to a reported one and a half trillion dollars (that’s trillion with a ‘t’). And we haven’t even gotten to Federal spending for the upcoming fiscal year. President Obama’s proposed FY 2010 budget and a wildly profligate Congress threaten to add another trillion dollars or more to the staggering deficit and burden of Federal debt.

Much of this spending is going to bail out the same folks whose greed and criminal irresponsibility got us into this crisis in the first place. Testifying before Congress, Federal Reserve Chairman Bernanke and Treasury Secretary Geithner warned that even more bailouts for the banks and too-big-too-fail corporations will be necessary. True to their word, the Treasury pumped another $30 billion into the corpse of insurance giant AIG after having already given it $130 billion in bailouts, and after AIG posted the greatest corporate loss on record, $60 billion in the first quarter of 2009.

In its Remonstrance and Petition for a Redress of Grievances on monetary policy passed at the First Congress in December 2008, the SNC warned our fellow Southerners of this insanely reckless spending on bottomless bailouts, fueled by phony money that is created by the Federal Reserve out of nothing and backed by nothing. The resolution states in part,

The present crisis threatens a catastrophe more encompassing and ruinous than the Great Depression, yet the only “cure” we are offered is more of the disease itself: massive inflation, huge bailouts, and astronomical government spending. These will only prolong and deepen the crisis and destroy the dollar, and with it, the South’s remaining wealth. (See full Remonstrance at here).

We renew the warning to our fellow Southerners to beware the dangers cited herein and in our Remonstrance of December 6, 2008. We also urge you to take the necessary steps to protect yourself from the predatory, criminal elites of government and finance by putting as much of your wealth as possible in hard, tangible assets, and striving to practice the hallowed Southern traditions of self-sufficiency. We further invite you to join us in the SNC to work for the well-being, prosperity, and liberty of the Southern States and people.

For more information contact Jonathan Ingram, SNC media and public relations director: jonathaningram@southernnationalcongress.org