The US Constitution forbids the US government from practicing activities unless those activities are explicitly permitted by the Constitution.  The Constitution does not empower the government to run a bank, much less a bank that competes with private sector banks.

Obama has created a bank which is part of the US government.  This was done under the guise of eliminating checks.  This is completely contrary to the letter and intent of the Constitution.  From EconomicPolicyJournal.com

Here we go, government debit cards.

The Treasury has today launched a pilot program to offer taxpayers a new account card option where there tax refunds can be deposited. The card, however, will do much more than act as a depoistory for tax refunds. It will provide ready tracking access by the government to those who use the card, who may in the past have avoided the banking system.

“This pilot program will provide low- and moderate-income Americans with a low-cost option for faster delivery of their federal tax refund,” said Deputy Secretary of the Treasury Neal Wolin. “This innovative card can be used for everyday financial transactions, such as receiving wages by direct deposit, withdrawing cash, making purchases, paying bills and building savings safely and conveniently, giving users more control over their financial futures.”
The Treasury will mail letters next week to 600,000 low- and moderate-income individuals nationwide. The letters will invite these taxpayers to consider activating a MyAccountCard Visa® Prepaid Debit Card in time to have their 2010 federal tax refund direct deposited to the card.

The Visa ® branded MyAccountCard will be issued by Bonneville Bank, acting as Treasury’s financial agent.

This card was an exploitation of an earlier effort by the federal government to eliminate paper checks called Go Direct.  Go Direct put federal benefits into a withdraw-only account, which is effectively a form of cash payment.  The MyAccountCard is substantially different from the Go Direct program.  The MyAccountCard program accepts payments and other cash transfers into the account, which puts the government in direct competition with banks for checking accounts.

By itself, this is insidious.  What makes it more than insidious is the “in your face” way Obama is violating the Constitution.  It is as if he no longer cares about consequences for his actions.  He firmly believes he is above the Constitution.

I added item #34 to The Big List tab above.

Stumble it!