REAL WORLD EVENT DISCUSSIONS

SAY NO to US Dollar Destruction (economics part V)

POSTED BY: PARTICIPANT
UPDATED: Friday, September 4, 2009 12:22
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Tuesday, September 23, 2008 5:31 AM

PARTICIPANT


Quote:


PART I
http://www.fireflyfans.net/mthread.asp?b=18&t=34184
PART II
http://www.fireflyfans.net/mthread.asp?b=18&t=34664
PART III
http://www.fireflyfans.net/mthread.asp?b=18&t=34859
PART IV
http://www.fireflyfans.net/mthread.asp?b=18&t=34935



At the start they didn't want to rescue AIG, they wanted them to fail like Lehman but something changed. IHT news agency reported a few days ago Fannie, spent millions and millions on lobbying US politicians so they get get an unlimited bailout from the US tax payers. CNN reports it will cost us all 700 BILLION or perhaps even over a TRILLION (one thousand billion) Fox news reports the United States as a country may have its credit rating downgraded (I assume they also do this to third world nations who can't pay back their loans) BBC news reports other banks across the globe risk imploding because of the corruption. Japan which will also suffer fallout if a global recession occurs with nobody buying Toyotas or SonyPlaystations is very concerned, Japanese agreed with the Federal Reserve on a dollar-yen swap agreement worth up to $60 billion and left the door open for more help. Prepare for mega gas prices, oil rocketed to its biggest one-day dollar gain in history

CALL YOUR CONGRESSMAN

Currency traders worried that the huge price tag of the bailout could weaken the U.S Dollar and this kind of insanity can make our currency like the value of toilet paper
dollar also fell against the British pound, the Euro and Japanese yen.

WRITE, TELL YOUR SENATOR WHATS WRONG

7 days ago Merrill Lynch was swallowed by Bank of America after striking a $50 billion takeover deal and Lehman Brothers - an institution that had survived the 1929 stock market crash but not the crash of 2008, it barely survives on life support and declared it had filed for bankruptcy. 2008-2010 will be tough, so expect higher taxes or expect terrible unemployment numbers or expect major cuts in military contracts especially if combined with a quick withdrawal of US troops and military contractors from Iraq and Afghanistan. jobless claims Gold prices jumped 11 per cent on Wednesday, its strongest one-day gain since 1980 went up by 10,000 from 445,000 to 455,000 claims.

Say NO to the destruction of the US currency !!

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Tuesday, September 23, 2008 6:35 AM

SIGNYM

I believe in solving problems, not sharing them.


Still, this is CHUMP CHANGE compared to the THREE TRILLION DOLLARS that "we" spent on Iraq and about on-par with our $720B trade deficit.

If Bush hadn't run the budget into the ground, if we had been more mindful of our imports (of oil as well as goods) the dollar would have been able to withstand the bailout.

Yes, I've called my Congresswomen (all three of them) against the bailout, but personally I'm betting against the dollar because it's not JUST the bailout, it's eight years of f*ckups that need to be undone.
---------------------------------
Any idea, no matter how much you may agree with it, can be radicalized and employed as an excuse for violence. There is no such thing as a righteous or untouchable philosophy, and when you start thinking that there is, you have become an extremist.- Finn Mac Cumhal

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Tuesday, September 23, 2008 7:28 AM

FREMDFIRMA


Speaking of which - I wonder if it's ever occured to folk that given the fucking pittance we pay our troops, and the fact that they're deployed overseas...

Particularly Gaurd/Reserves.

That takes a big bite out of us economically all by itself, as they are not working their civilian jobs, nor spending disposable income here, paying sales tax/excise tax, etc.

In effect, while deployed these folk are pretty far removed from our economy, and that has an effect as well, something that's been on my mind for quite a while now.

We really do need to get em outta there and quit pissin money down a hole for no real result but making everybody hate us - just take our damn lumps and go home.

And fuck foreign aid while we're at it, we got our own bills to pay, yanno ?

-Frem

It cannot be said enough, those who do not learn from history, are doomed to endlessly repeat it

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Tuesday, September 23, 2008 7:08 PM

JAYNEZTOWN

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Tuesday, September 23, 2008 8:35 PM

OUT2THEBLACK


Quote:

Originally posted by participant:
Quote:


PART I
http://www.fireflyfans.net/mthread.asp?b=18&t=34184
PART II
http://www.fireflyfans.net/mthread.asp?b=18&t=34664
PART III
http://www.fireflyfans.net/mthread.asp?b=18&t=34859
PART IV
http://www.fireflyfans.net/mthread.asp?b=18&t=34935





CALL YOUR CONGRESSMAN

Currency traders worried that the huge price tag of the bailout could weaken the U.S Dollar and this kind of insanity can make our currency like the value of toilet paper
dollar also fell against the British pound, the Euro and Japanese yen.

WRITE, TELL YOUR SENATOR WHATS WRONG

Say NO to the destruction of the US currency !!




Well , it's okay to say YES to the Destruction of the FEDERAL RESERVE Notes , and DEMAND replacement of this
FIAT CURRENCY with Lawful Money !

DO demand that your elected reps NOT maintain the Status Quo...DEMAND that the Present Crisis be seen as THE MANDATE for REFORM...

DEMAND the REFORM of CONgress , FIRST !

NO CORPORATE WELFARE , NO 'TREASURY' CZAR !

Contact ALL YOUR FRIENDS and ask that they add their Voices to Restore Economic
and Governmental Accountablity and Responsibility !

Do Not FALL FOR THE CAPITALISTS' 'SHOCK DOCTRINE'...Information is POWER !

http://www.alternet.org/blogs/workplace/99885/now_is_the_time_to_resis
t_wall_street%27s_shock_doctrine
/

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Tuesday, September 23, 2008 8:58 PM

OUT2THEBLACK


In short , tell your CONgressional Rape/presentatives that WE ARE FED UP !

http://www.fedupusa.org

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Wednesday, September 24, 2008 1:18 AM

GINOBIFFARONI

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Wednesday, September 24, 2008 4:00 AM

SIGNYM

I believe in solving problems, not sharing them.


One good reason NOT to hand over the $$$

FBI probing bailout firms
Quote:

The FBI is investigating Fannie Mae, Freddie Mac, Lehman Brothers and AIG -- and their executives -- as part of a broad look into possible mortgage fraud, sources said. An FBI spokesman said 26 firms are currently under investigation as part of the bureau's mortgage fraud inquiry, CNNMoney reports.


---------------------------------
There was a REASON my tagline was "Let's party like it's 1929. Y'all might wanna wonder how I knew.

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Wednesday, September 24, 2008 4:22 AM

WULFENSTAR

http://youtu.be/VUnGTXRxGHg


Why is it that Corporate C.E.O's who do more damage than the randomn serial killer, usually get off scott-free?

And didn't Jefferson, at one point, drag out a convicted traitor and execute him on the front lawn of the White House?



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Wednesday, September 24, 2008 4:58 AM

ERIC


Coming to an email spam box near you:

Quote:

Originally posted by Hank Paulson:
Quote:


Dear American:

I need to ask you to support an urgent secret business relationship with a transfer of funds of great magnitude.

I am Ministry of the Treasury of the Republic of America. My country has had crisis that has caused the need for large transfer of funds of 800 billion dollars US. If you would assist me in this transfer, it would be most profitable to you.

I am working with Mr. Phil Gram, lobbyist for UBS, who will be my replacement as Ministry of the Treasury in January. As a Senator, you may know him as the leader of the American banking deregulation movement in the 1990s. This transactin is 100% safe.

This is a matter of great urgency. We need a blank check. We need the funds as quickly as possible. We cannot directly transfer these funds in the names of our close friends because we are constantly under surveillance. My family lawyer advised me that I should look for a reliable and trustworthy person who will act as a next of kin so the funds can be transferred.

Please reply with all of your bank account, IRA and college fund account numbers and those of your children and grandchildren to wallstreetbailout@treasury.gov so that we may transfer your commission for this transaction. After I receive that information, I will respond with detailed information about safeguards that will be used to protect the funds.

Yours Faithfully Minister of Treasury Paulson




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Wednesday, September 24, 2008 7:52 AM

SIGNYM

I believe in solving problems, not sharing them.


ERIC: BWAHAHAHAHAHAHAHAHA!!!!!!!

OUCH!!!!!!!!!

Too funny! Too true!

--------------------
From the Fiancial Times, London
Insight: Reserve judgment on the dollar
By John Plender
Quote:

Published: September 23 2008 16:34 | Last updated: September 23 2008 16:34

A combination of negative real interest rates and an exploding budget deficit as the US government takes on the “bad” assets of the banking system looks awful for the dollar. If the worst has yet to happen, it is because the crisis-driven homing instinct of Americans has led to substantial repatriation of overseas investments.

There is nonetheless a groundswell of comment about the viability of a reserve currency attached to a broken financial system, a persistent current account deficit and a fiscal nightmare. With the euro taking a growing chunk of official reserves, and panic in the air, is dollar hegemony at an end? In the extreme circumstances now prevailing, nothing can be ruled out. But if sterling’s history is any guide, it is risky to forecast the instant demise of a reserve currency. For while the US outgrew the UK economy from the 1870s, it took two world wars, a botched return to the gold standard and a subsequent devaluation, before the dollar definitively replaced sterling in 1945.

There are good reasons for the protracted lag, not least the incumbency advantage stemming from network effects. Because everyone now uses the dollar it offers a degree of liquidity and acceptability that others cannot match until such time as the US makes so great a hash of policy that these benefits are outweighed by costs. Maybe the latest financial crisis will do the trick, but I doubt it.

The first reason, forcefully advanced by Adam Posen of the Peterson Institute for International Economics, is that the dollar’s status is not purely about economics. For many countries security considerations are paramount. It seems inconceivable that Japan, Korea, Taiwan or Saudi Arabia would wish to junk the dollar given their current security relationships with the US.

How far China sees its huge dollar reserves as a potential foreign policy weapon is unclear. What is clear is that the economic cost of using the weapon would be high and with reserves piling up at an annual rate of $500bn it is becoming ever higher.

Charles Dumas of Lombard Street Research estimates that China makes 1-2 per cent on its (largely) dollar reserves. It then loses up to 10 per cent on the exchange rate and suffers a Chinese inflation rate of 6 per cent for a total real return in renminbi of about minus 15 per cent. That is a loss of $270bn a year, or a stunning 7-8 per cent of gross domestic product.

How long this can continue is moot. Yet interdependence on this scale means that selling dollar reserves would be an economic catastrophe. Diversifying new flows would make more sense and would not finish the dollar.

To return to the analogy with sterling, the euro is not the only candidate to displace the dollar. Those who like to extrapolate China’s current growth rate could argue that the shift of power to Asia will ultimately turn the renminbi into a reserve currency. In the very long term there may be something in this, but I am suspicious of mechanistic extrapolations. And, would an undemocratic developing country command sufficient confidence for its currency to achieve such status?

The euro is another matter. Inside and outside Europe it has been a notable success and it has taken a growing share of foreign exchange reserves at the dollar’s expense. Yet those who expect the euro to dethrone the dollar before long are taking much about the integrity of monetary union for granted. This is because the pressures of adjustment to internal divergence as the euro soars will be exceptionally difficult to handle.

The north-south divide in the eurozone in terms of relative unit labour costs requires a huge effort by the south, and Italy in particular, to address a serious loss of competitiveness. Countries such as Spain are also struggling with cyclical problems arising from the divergence in real interest rates in Europe. Before assuming the euro will topple the dollar, you have to be utterly confident that these problems will be well managed. I am not




---------------------------------
Let's party like its 1929.

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Wednesday, September 24, 2008 7:25 PM

JAYNEZTOWN


'Say No' to the Greater Depression

http://blog.pennlive.com/leftcoast/2008/09/the_next_great_depression.h
tml


Quote:

Over the last fourteen days, the failure of financial giants Lehman Brothers, AIG, Fannie Mae and Freddie Mae has rocked global financial markets. Former Federal Reserve Chairman Alan Greenspan has described the situation as "a once in a century economic event." Whispers are being heard from abroad that America is facing financial Armageddon, that American-style Capitalism is dead.

Is the American economic way of life hovering on the cusp of systemic ruin?

Secretary of Treasury Henry Paulson and Federal Reserve Chairman Ben Bernanke are pushing for an immediate financial bailout package that will cost taxpayers over 700 billion dollars. Sweeping new powers will be granted the U.S. Treasury and the Federal Reserve. Their proposal? The Federal government will buy-up all the bad real estate loans that are dragging down the nations financial institutions, thus allowing these companies to once again issue loans to fiscally sound businesses and individuals.

They are gambling that when money begins to again flow from lenders to responsible individuals and businesses, the economy will begin to heal, eventually returning to something resembling a healthy state.

Well, that's the theory.

Can this draconian step end the market turmoil? According to Paulson, "It has to."

What is happening? Why must taxpayers bail out failed financial institutions?

The answer to these questions can be found in the wreckage of the stock market crash of 1929 and the economic depression that followed.

During the last weeks of October 1929, the New York stock market plunged to record low levels. Unimaginable quantities of wealth were lost. The crash was pointed to by many as the cause of The Great Depression.

The "Crash of 29" was the result of multiple economic pressures, foremost being promiscuous stock market speculation. Also, years of easy credit had led to over-expansion by companies and a significant increase of personal debt. In addition, financial debt from World War I put a serious strain on the world economy. European countries were struggling to pay on the massive debts their governments owed to American lenders. These debts contributed to a serious drag on the national economies of England, France, and especially Germany.

In his hugely influential book entitled A Monetary History of the United States, Nobel prize-winning economist Milton Friedman writes that the severity of the economic downturn known as The Great Depression was acerbated by a huge contraction of the money supply. Friedman believed that The Great Depression was caused not by the Crash of 1929, but by the inadequate governmental response that followed. He argued that in the absence of market liquidity, the solution is for the Federal government to support existing financial institutions with massive injections of money until equilibrium returns to the marketplace.

In Friedman's view, if the Fed had provided emergency lending to key banks in 1929, smaller banks would not have failed and the money supply would not have fallen as far and as fast as it did, devastating an already floundering American economy. The Great Depression that lasted almost a decade would have instead been a severe recession, lasting only a few years.

Friedman's economic theories were popular with Margaret Thatcher and Ronald Reagan. Current Federal Reserve System chairman Ben Bernanke spent much of his academic career studying Milton Friedman's economic writings, and is a fervent believer in his theories.

Over the next six weeks, Friedman's theories will be put to the test. Will they save us from financial disaster?

To succeed, the Paulson/Bernanke bailout plan must overcome several significant hurdles.

After stabilizing the banking system by purchasing all the "toxic" sub-prime mortgages and removing them from the books of financial institutions, there will remain a massive surplus of housing on the market. Until that surplus is whittled away, housing values will remain depressed, as will the fortunes of related industries like construction and building supplies.

With tighter mortgage requirements, there will be less people able to qualify for loans to buy the available homes. Potential home buyers might choose to remain on the sidelines, waiting for the market to hit bottom. Sluggish home sales are likely to continue to drag on the economy unless the Paulson/Bernanke plan is able to quickly get people buying houses again.

While we wait for the housing surplus to disappear, the national economy will continue to cool. More people will be laid-off. State and city governments will begin belt-tightening. Confidence in the future is likely to remain elusive, discouraging consumers from making big purchases and businesses from expanding. The longer the economy cools, the deeper the slowdown.

Finally, just like during the run-up to the Great Depression, other major world economies are struggling. Today, international financial institutions that were heavily invested in AIG, Fannie May and Freddie May, are trying to add up their losses. Leading banks in Europe, Russia, China, and across Asia are furiously struggling to ascertain how many sub-prime loans are in their portfolios. England and Spain are wrestling with the economic impact of their own housing bubbles.

Financial turmoil in the economies of foreign nations will impact Wall Street. And if our American economic malaise continues to spread worldwide, putting the brakes on the economies of other nations and trading areas, there is no economic engine---China's included---that is likely to rescue us from an economic slowdown.

How deep and how long will be the slowdown? Hold on to your hat; the answers will begin to reveal themselves this week. And whether you live in Harrisburg Pennsylvania, or Berkeley California, your life will be changed.


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Wednesday, September 24, 2008 9:56 PM

OUT2THEBLACK


The $164 Million Dollar Question :

http://abcnews.go.com/Business/Economy/story?id=5876413

Paulson at Goldman , Sachs...

What are these kleptocrats doing in charge ?

Oh , right...Robbing us again !

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Wednesday, September 24, 2008 11:08 PM

OUT2THEBLACK


Wasn't Bush heard to say that " the country's top economic experts " advise that this bailout must go forward , and like , immediately ?

There are LOTS of dissenters , as it turns out :


We believe Congress may be on the verge of making what could become one of the greatest policy mistakes of modern times, passing bailout legislation that could aggravate, rather than alleviate, the nation's massive debt crisis.
With this in mind, we are submitting our white paper on this urgent topic to members of Congress and banking regulators, and I wanted to make sure you have a copy right now.

FOR IMMEDIATE RELEASE:

September 24, 2008

Proposed $700 Billion Bailout
Is Too Little, Too Late to End Debt Crisis;
Too Much, Too Soon for U.S. Bond Markets

Weiss Research Submits Policy
Recommendations to Congress Today

JUPITER, FL, September 24, 2008 — The proposal before Congress for a $700 billion financial industry bailout will not only fail to end the massive U.S. debt crisis but could actually aggravate the crisis by driving up interest rates, according to a white paper submitted to Congress and banking regulators today by Weiss Research, Inc. Therefore, Weiss recommends limiting and reducing the bailout as much as possible, while bolstering existing safety nets for consumers.
Based on recently released FDIC and Federal Reserve data, Weiss Research finds that:

1. 1,479 U.S. banks and 158 U.S. thrifts are at risk of failure, with total assets of $3.6 trillion, or 36 times the assets of banks on the FDIC's list of troubled institutions.
2. Among those with $5 billion or more in assets, 61 banks and 25 thrifts are heavily exposed to nonperforming mortgages.
3. The bailouts announced and proposed to date, although expected to cost over $1 trillion, are too small to rescue most institutions at risk, let alone address multiple problems with U.S. interest-bearing debts outstanding of $51 trillion and derivatives held by U.S. banks of $180 trillion.
Martin D. Weiss, president of Weiss Research, comments: "There should be no illusion that the $700 billion estimate proposed by the Administration will be enough to end the crisis. Nor should there be any false hopes that the market for U.S. government securities can absorb the additional burden of a $700 billion bailout without putting major upward pressure on U.S. interest rates, aggravating the very debt crisis that the government is seeking to alleviate." Among its policy recommendations, Weiss urges Congress to:
1. Severely limit the government's authority to buy bad private-sector debts by requiring it to pay strictly fair market value, including a substantial discount that reflects their poor liquidity.
2. Disclose to the public that there are significant risks in the financial system that the government is not able to address.
3. Focus more resources on strengthening existing safety nets, including FDIC insurance of bank deposits, SIPC coverage of brokerage accounts and state guarantee associations that cover insurance policies.
"Rather than focusing on the protection of imprudent institutions and speculators," concludes Weiss, "Congress should do more to protect prudent individuals and savers."
Regardless of what Congress decides, Weiss recommends that individuals continue to invest and save prudently, seeking the safest havens for their money, such as safe banks and U.S. Treasury bills or equivalent.
The Weiss Research white paper, "Proposed $700 Billion Bailout Is Too Little, Too Late to End the Debt Crisis; Too Much, Too Soon for the U.S. Bond Market," is available at http://www.moneyandmarkets.com/files/documents/Final-Bailout-White-Pap
er.pdf
. In addition, as a public service for consumers seeking advice on how and where to find safer institutions, Weiss Research provides a free 1-hour informational video on the Internet, entitled "The X List," at www.MoneyandMarkets.com.

Here's another :

I DISSENT

An Essay Against A Government Bailout

September 23, 2008

By: Kenneth D. Peterson, Jr.

I will not go softly! There is a terrible, horrible crisis looming we are now told. But the Government will save us if only we will allow the most extravagant intervention into private affairs that this country has ever contemplated. The politicians and the media blare breathless sound bites about fear of collapse, fear of the future, fear of real estate, fear of failure. Have we forgotten that FDR said the only thing we need to fear is fear itself? Have we forgotten that six years ago when there was a similar full court press by the political and media elite to exploit our fears the reality in Iraq did not live up to the hype?

The political classes of both parties said that in the face of this unimaginable crisis they would take the weekend – imagine that, a whole weekend! – to create a Solution. The Solution must now be implemented immediately before we can even fully understand what it is. This is a classic “rush to judgment” so that we may not notice that the Solution aims to destroy the fundamental ideals of individual freedom, accountability and responsibility that our nation’s Constitution was meant to defend.

I dissent and ask that you communicate your own dissent.

Our financial situation has two issues: Liquidity and Solvency. If a bank lends money to someone and the person defaults and the collateral is not worth the outstanding loan we can call this a “bad loan.” Who should suffer the loss? Should we make the renter who lives next door absorb the loss? Should we make the shareholders of a bank that made good loans suffer the loss? This seems ridiculous! To suggest, as do our earnest politicians, that all the citizens of the United States should suffer the loss is literally nonsense. The one who must suffer the loss is the one who made the loan. Anything else is organized theft. If the bank did not inquire as to whether the borrower could repay the loan, or if it did not require an adequate equity cushion, then it must be responsible for such “stupid loans”. The same goes for those who bought those loans and thereby became the lender. The result of enough such loans should be insolvency. Moreover, a lender that leverages itself 30 to 1 and then pleads for a bailout when values fall 4% does not define a national emergency and should not be taken seriously.

I dissent.

On the liquidity side, let us first be clear that there is lots of liquidity. Money Market Funds alone have more than $3 TRILLION in them. This is a lot of money sitting at low interest rates waiting to be invested in something that will return more. Cash deposits at banks adds more. Thus, there is no fundamental problem with the amount of money around. The political elite apparently feel this money should be allocated to a better purpose. I agree from experience that lack of liquidity can have bad consequences for those who are solvent.

The lack of liquidity problem can be solved with patient money. But this is hard to come by in an atmosphere of fear. When one cannot tell whether any particular hardship is caused by illiquidity or insolvency the resulting uncertainty demands a high price for patience. Are we to imagine, however, that the people in the Treasury or Congress are somehow smarter or wiser than the people at Bank of America, Morgan Stanley or Berkshire Hathaway in differentiating the two? The real difference I see is that the political elite can force millions of innocent citizens to underwrite Government’s power trip while private parties must persuade us to freely part with our money. This is coercion, not liberty.

I dissent.

If those in Government really are smarter they would perform a greater service to the nation by starting a fund where they place their net worth at risk, along with the President, the Fed Chairman, Senators Obama, McCain, Biden and Clinton, Speaker Pelosi, Chairman Rangel and the other leaders of Congress. They can accept co-investors who trust their investment judgment and then make loans to those solvent financial institutions needing liquidity. If they can correctly differentiate between the insolvent and the illiquid they will make a lot of money, and they should. If they cannot, they will lose their equity, as they should, but at least non-investor citizens would not have been forced to bail out deadbeats and our Constitution would not be shredded!

I love the ideals America has stood for, like life, liberty and the pursuit of happiness. I am proud that our Constitution makes us different from the EU, China, Mexico or Russia. I am not ready to sell out under panic pressure from our politicians for an “easy”, but wrong, Solution.

I dissent and invite you to join me.

“Rage, rage against the dying of the light.”

--------------------------------------------------------------------------------------------------

" Experts See a Need for Punitive Action in Bailout "

http://www.nytimes.com/2008/09/23/business/23skeptics.html?bl&ex=12224
01600&en=174c1ae60216e342&ei=5087%0A


' Some are suspicious of Mr. Paulson’s characterizations, finding in his warnings and demands for extraordinary powers a parallel with the way the Bush administration gained authority for the war in Iraq. Then, the White House suggested that mushroom clouds could accompany Congress’s failure to act. This time, it is financial Armageddon supposedly on the doorstep.'

“This is scare tactics to try to do something that’s in the private but not the public interest,” said Allan Meltzer, a former economic adviser to President Reagan, and an expert on monetary policy at the Carnegie Mellon Tepper School of Business. “It’s terrible.”

**************************************************************************************************

Ron Paul said ,

" The claim that the market caused all
this is so staggeringly foolish that only politicians and
the media could pretend to believe it. But that has become
the conventional wisdom, with the desired result that those
responsible for the credit bubble and its predictable
consequences- predictable, that is, to those who understand
sound, Austrian economics - are being let off the hook. The
Federal Reserve System is actually positioning itself as the
savior, rather than the culprit, in this mess! "

http://www.republicmagazine.com/magazines/Republic-Magazine4.pdf

http://endthefed.us
http://www.breakthematrix.com


&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&

SHARE the VIDEO LINK that EXPOSES the FEDERAL RESERVE as a PRIVATE BANK , in their own words :
http://meetthefed.com












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Thursday, September 25, 2008 12:56 AM

OUT2THEBLACK


Federal Reserve leads bloodless economic assault, effectively
suspending Constitution. Average Americans become
slave to trillions of dollars of Wall Street Debt

By Joan Veon
The Women's International Group, Inc.
9-22-8

" World history is spotted with stories of political conquests: Attila the Hun, Genghis Khan, the Pharaohs, Alexander the Great, and Roman Caesars, each who seized physical control of a country, its economy and assets. History holds no story of a take over based solely on a country's assets, until now. The modern day Attila's, Genghis Khan's, Pharaoh's, and Caesar's are the men who own and control the Central Banks of the world. America's Central Bank is the Federal Reserve, which controls our monetary system, is not part of our governmental system, and, although its name would imply, it has no reserves.

The 13th month of America's credit crisis may hold its own in history as a country whose economic power and bulk of wealth overnight become the assets of the Federal Reserve. This may well be the finest coup d'état.

For more than a week the news media has been a buzz, clamoring for the need to change our regulatory system. The passage, by Congress, of "The Treasury Blueprint for a Modernized Financial Regulatory System," will hand over to the Federal Reserve the last vestiges of our financial sovereignty: savings and loans; state chartered banks; thrifts and credit unions; the entire mortgage and insurance systems, as well as oversight of the Payment and Settlement System of Wall Street. In addition, the Feds would gain overseer rights to all of America's financial markets. (To read "The Treasury Blueprint for a Modernized Financial Regulatory Structure", go to http://www.ustreas.gov).

Most Americans can't fathom what is really happening. How could something like this happen in America? How did people who lived through the 1929 Crash and Great Depression manage when everything they knew changed overnight? The answer is: they were not in debt the way Americans are today. Multi-generations lived together, all working to pay off the mortgage. Additionally, a great many families lived on farms where they could raise their own food. Today, we are dependent on large banks for our mortgage and debt and big grocery stores for our food rather than our own farm.

We know from various historians that when the stock market crashed in 1929, the Federal Reserve was at fault because they did not put liquidity into the system but took it out, thus exacerbating the Crash and causing the Great Depression. In response, on the day he was sworn in, newly elected President Franklin D. Roosevelt took control of all private ownership of gold when he closed the banks down. He also instituted a number of socialistic measures to put Americans to work with infrastructure projects. Today, the Federal Reserve is putting billions of newly printed dollars into the American and global financial system which will increase the interest on the debt that Americans owe to the Federal Reserve. We have no idea, at this time, what that will do to our purchasing power, but you can be sure that it will drop. In fact, the value of the dollar could drop so low that we will have to merge our currency with Canada, Mexico, and the other countries of this hemisphere, or even forego the proposed Amero for the Special Drawing Right-SDR, a basket of five currencies: the dollar, the Swiss Franc, the British pound sterling, the euro and the yen. The SDR is the currency used by the IMF/World Bank and adopted several years ago by the Bank for International Settlements when they changed from the gold franc to the SDR.

I am grateful to geopolitical expert Terry Hayfield, who introduced me to the writings of Harvard economist Joseph Schumpeter. Schumpeter came up with the idea of creative destruction as a way of saving capitalism, or should we say, transferring the value of capitalism from many to a few powerful insiders? Since capitalism is an ism, like Marxism, socialism, or fascism, you need to prop it up by destroying in order to "save". Our economy has been propped up by debt: mortgages, credit cards, home equity loans, lines of credit, auto loans, tuition loans, medical loans, Treasury bills, notes and bonds, Fannie Mae and Freddie Mac, commercial loans, business loans, etc. We must also keep in mind that for every loan, interest or a usury, is being collected. We are a debtor nation.

Creative Destruction is the key component, as seen in most of this past weeks headlines. The Financial Times screamed: "CREDIT PANIC HITS HISTORIC LEVELS"; "FAR REACHING CHANGES LOOM IN US"; "PUSH FOR CRISIS BREAKTHROUGH"; and "GLOBAL MARKETS ROAR IN APPROVAL, US Rescue Plan Sparks Record Rises for Equities". The Washington Post reiterated: "STOCKS PLUMMET AS LENDING FREEZES UP, Lawmakers Left on the Sidelines as Fed, Treasury Take Swift Action"; "US PROPOSES $500B BAILOUT, Bush's Shifting Ideology," and "PRESIDENT SEEKS HISTORICALLY BROAD MARKET INTERVENTION". This mornings,(Sunday) The Washington Post headlines read: "WASHINGTON READIES SEA CHANGE FOR WALL STREET, Cultural and Structural Shifts Rise Out of Risk-Taking Titans' Hard Fall" and "RESCUE PLAN GROWS TO $700B, Similar Measurers Urged Overseas".

If you listened to the commentators on CNBC business news, what you heard from time to time from the mouth of Erin Burnett is "creative destruction" and "Schumperterism". The following is a dialogue from September 15 with Larry Cudlow, Mark Haines and Erin Burnett:

Mark Haines: "Is this another example of creative destruction for the failure of government?"
Larry Cudlow: "Lots of mistakes but the role of creative destruction and Schumperter play a role here."
Erin: "We have a philosophy of ­a veil of uncertainty and Schumpertism."

As I have written before, our entire economy and all of our assets are in the process of being transferred to the Federal Reserve, who now appears to be running the United States of America. We have had a bloodless coup by a very, very powerful group of ruthless men who not only control the United States of America but in unity, control the world in conjunction with all of the other central banks. Furthermore, they have united to intervene in global markets. Their apex: the Bank for International Settlements, (BIS), located in Basle, Switzerland. During this past week, as they acted in concert with liquidity to the tune of $600B, opening up their discount windows for 24 hour loans to any banking institution in trouble, it may be fair to say a world or global central bank was birthed.

For America, it began in 1913 when those who opposed a central bank went home for Christmas. In 1913, on December 24th, at 11:45 p.m., after their colleagues left to go home for the holidays, greedy politicians pushing for a central bank garnered enough votes to pass it. What is a central bank? The idea began originally in Sweden who decided that they would set up a private corporation to lend monies to the government at interest. The government would pay interest on the principal borrowed forever. Interest in perpetuity! Can you imagine interest being paid to you forever? This is usury par excellent and is known as bondage. This brilliant idea was adopted by Holland which transported it to England, and little by little around the world. While America had its own central bank which was formed at the time of our Independence, it was closed by Andrew Jackson and never renewed until 1913.

Ever since the Federal Reserve Act was passed, Congress voted over 195 times to give the Federal Reserve more power. In essence, Congress has voted away all their authority and power to protect us. If they don't vote for the emergency package, i.e. Resolution Trust and Blueprint, the market will crash. If they do vote for it, the American people are reduced to serfs and slaves in the New World Order which will be run by the real financial center of the world, the City of London. Either way they will be blamed. Basically they should be tried and hanged for treason along with every president and Congress before them down to 1913."


Thanks for that , Joan...

Won't you please tell us more about how you really feel ?

http://www.breakthematrix.com/BreakTheMatrix/America-Reduced-To-Third-
World-Status



Naomi Klein's 'Shock Doctrine' Film , about the employment of 'Creative Destruction' :



"...know what is happening to you , and WHY ."




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Thursday, September 25, 2008 2:28 AM

JAYNEZTOWN


Democrats Unsure and Skeptical on these Huge Costs

and

700 Billion might Ignite a Republican Civil War

http://opinion.latimes.com/opinionla/2008/09/republicans-joh.html

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Thursday, September 25, 2008 3:30 AM

JAYNEZTOWN


G7 vows to help US fight global financial crisis

http://afp.google.com/article/ALeqM5jiDTmPGBiKv5k3o-0lIM07UXWY5A

Quote:

The Group of Seven industrialized nations pledged Monday to help the United States address a global credit crisis, saying they will "take whatever actions may be necessary."

G7 finance officials welcomed recent US measures to counter the worst credit crisis since the 1930s Great Depression, including a US Treasury proposal to spend 700 billion dollars to buy toxic mortgage-related assets from financial institutions unveiled over the weekend.

"We strongly welcome the extraordinary actions taken by the United States to enhance the stability of financial markets and address credit concerns, especially through its plan to implement a program to remove illiquid assets that are destabilizing financial institutions," the G7 finance ministers and central bank governors said in a statement.


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Thursday, September 25, 2008 3:38 AM

SIGNYM

I believe in solving problems, not sharing them.


So I listened to the GWB last nite, and what I heard is the same crap that got us into Iraq:

BE AFRAID!!!!!!!!!!!

BE VERY AFRAID!!!!!!!!!!!!!


SO now he's gonna stampede the entire population into running off an cliff... again. Because his very wealthy friends are shittin' their pants, we're supposed to trsut the engineers of this debacle to FIX it????



I'm afraid, alright. But not the way GWB intended.

---------------------------------
Let's party like its 1929.

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Thursday, September 25, 2008 4:47 PM

OUT2THEBLACK


Meanwhile , JP Morgan Chase acquires WaMu in FDIC 'fire sale' :

http://news.yahoo.com/s/ap/washington_mutual_future

Largest-ever 'bank failure' in US history...More are on the way...


" The Federal Deposit Insurance Corp. seized WaMu on Thursday, and then sold the thrift's banking assets to JPMorgan Chase & Co. for $1.9 billion."

" Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history. Its $307 billion in assets eclipse the $40 billion of Continental Illinois National Bank, which failed in 1984, and the $32 billion of IndyMac, which the government seized in July."

Okay , $307 BILLION in WaMu Assets for only a $1.9 Billion payment...Good Deal !

...For JP Morgan Chase .

Anything about that not smell quite right ?

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Thursday, September 25, 2008 6:30 PM

OUT2THEBLACK


" Now, the house itself is on fire but the cause and the proposed solution are always the same. The cause is always investment bank greed. The proposed solution is always more taxpayer money to bail out more investment banks. This is not a solution. This is societal blackmail.

Today’s extraordinary banking crisis was not unexpected, as private bankers claim and we believe.

The butler didn’t do it, the bankers did: It is bankers such as Henry Paulson, former CEO of investment bank Goldman Sachs, who are responsible for America’s disintegrating and imploding economy. Since 1913 America has allowed private bankers to control the issuance of America’s money and now, in the very midst of the problems they themselves created, the bankers through Paulson’s plan are seeking unsupervised control over America’s economy complete with immunity from any future criminal prosecution.

Investment bankers need to be thrown out: The answer to America’s problems is clear. Thomas Jefferson said it two hundred years ago. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

Let’s do what has to be done, America, or do you still want to blame Muslim terrorists and illegal immigrants for America’s problems; or maybe you are still hoping that somehow maybe somehow Paulson’s proposed trillion dollar government bailout of the rich and well-connected will somehow trickle down to you and save you and your family from being tossed out onto the streets when your house is foreclosed on by the banks he is going to save.

When this is all over, and someday it will be, it is my hope that we will have learned the lessons that we have now forgotten. That bankers, like vicious dogs, must always be kept on short leashes for the public safety and public good (neutering should also be a requirement); and, that gold and silver, not credit and debt, are the only foundation of sound money.

Conclusion: Even greater financial disaster will result from Paulson’s taxpayer bailout of his wealthy Wall Street friends. "

http://www.dailytimes.com.pk/default.asp?page=2008%5C09%5C26%5Cstory_2
6-9-2008_pg5_50

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Thursday, September 25, 2008 9:02 PM

JAYNEZTOWN


It's time to organize a rally or a Washington protest but I fear things are moving way too fast for the people to catch up
Vote against the 700 Billion Corrupt Bailouts





700 Billion fraud can make the US Dollar collapse!!

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Thursday, September 25, 2008 9:19 PM

OUT2THEBLACK


Contact your CONgressional Rape/presentatives , and let them know , that You are against the Bailouts !

END THE FED !

http://endthefed.us

http://endthefed.blogspot.com

INSIST on LAWFUL MONEY for the United States !

USE 700 Billion to BUY GOLD to back a NEW U.S. 'LIBERTY DOLLAR' !

GOLD Never NEEDS no Steenking 'Bailout' !

'BAD PAPER' Inevitably DOES...

Paulson ADMITS planning for the BAILOUT of this industry , MONTHS in advance :

"We have proposed a program to remove troubled assets from the system -- a program we analyzed internally for months, and had hoped would never be necessary," Paulson said. "Under our proposal, we would use market mechanisms available to small banks, credit unions and thrifts across the country."

http://www.reuters.com/article/ousiv/idUSTRE48N6V120080924




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Friday, September 26, 2008 8:31 PM

JAYNEZTOWN


WaMu just got taken out

Washington Mutual's Historic Collapse To Strengthen JPMorgan's Earnings
http://www.istockanalyst.com/article/viewarticle+articleid_2654068.htm
l






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Friday, September 26, 2008 9:18 PM

OUT2THEBLACK


Quote:

Originally posted by JaynezTown:
WaMu just got taken out

Washington Mutual's Historic Collapse To Strengthen JPMorgan's Earnings
http://www.istockanalyst.com/article/viewarticle+articleid_2654068.htm
l








Yep...I posted this somewhere , possibly a different thread...Thanks for the new Links and VIDS !

Something rotten going on out there , and it stinks...

FDIC 'seized' an enterprise and handed it over to another for 'purchase'...

Lessee , 300 Billion in Assets for 1.9 Billion...

Works out to less than 1.6 Cents on the 'Dollar'...

Does that seem right to you ?

Lindsey Williams predicted EXACTLY this scenario , quite some time ago...

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Friday, September 26, 2008 9:23 PM

OUT2THEBLACK


September 26, 2008
Federal District Court Obstructs Lawsuits
Challenging Authority for Bailouts

Judiciary Scuttles Motions Demanding U.S.
Produce Evidence of Constitutional Authority

Late last week, WTP Chairman and constitutional activist Robert Schulz filed a federal lawsuit in United States District Court in Albany seeking to halt the execution of the emergency bailout of Wall Street insurance giant American Insurance Group, AIG. On Wednesday, Schulz filed a second federal lawsuit seeking to block the larger Wall Street bank bailout currently being negotiated through the U.S. Congress.

Yesterday, while ignoring the dissimilar legal issues raised in the two lawsuits, the U.S. District Court issued an Order combining the two cases into a single case and denying the applications for injunctive relief requested. The Court, in effect, ducked a judicial (and very public) hearing to examine the critical legal question at the heart of the bailouts: What Constitutional authority exists for the U.S. Government or Federal Reserve to use public (taxpayer) funds for definitively private purposes?

Again, what legal authority allows the U.S. Government to directly purchase the distressed assets and contracts of privately owned Wall Street firms for the express purpose of mitigating their private investment risks and losses?


Together, the lawsuits assert that the commitment of public funds and credit for the direct benefit of privately owned banks is an ultra vires act by the United States Government and Federal Reserve, i.e., beyond the limited legal authority granted by the Constitution. Both lawsuits had asked for a "show cause" hearing demanding that the Government defendants produce evidence of their alleged legal authority to commit public funds for such purposes, as well as emergency and permanent injunctions halting the bailout efforts.

Specifically, the second lawsuit charges that Congress lacks any Constitutional authority to grant the Executive any legal authority to directly participate in commerce as a buyer or seller of private property (as opposed to "regulating" commerce) and that Congress also lacks any authority to utilize public (taxpayer) funds for definitively private, i.e., non-public purposes. The first lawsuit charges the Government has no authority to use public funds to guarantee a loan between the privately held insurance firm AIG and the privately held Federal Reserve Bank.

Despite Schulz's extensive federal litigation experience, the Court's Order (erroneously) claims that the lawsuits fail to provide any "citation to authority or an explanation of this court's jurisdiction, except conclusory statements of the law…"

One unnamed practicing attorney also with several decades of federal litigation experience agreed that the District Court's basis for denying the injunction hearings was contrived to provide cover to block any public, judicial examination of the highly controversial constitutional questions raised by the bailouts adding, "If the Court had dared sign that request, all those cameras now in Washington would immediately be up here in New York."

Schulz plans to file an emergency appeal to the U.S Court of Appeals for the Second Circuit in Manhattan on Monday, challenging the lower Court's improper dismissal of the requests for Temporary and Permanent injunctions.

http://www.wethepeoplefoundation.org/Update/Update2008-09-26.htm



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Sunday, September 28, 2008 10:51 PM

JAYNEZTOWN


US lawmakers braces for pivotal vote on Wall Street bailout
http://afp.google.com/article/ALeqM5guETf75DLeOOytsduEb9-4Jp10Sg

some think a
Total financial meltdown now possible




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Sunday, December 7, 2008 2:29 AM

JAYNEZTOWN


"UN Warns Of US Dollar Collapse In 2009"
Quote:


UN team warns of hard landing for dollar
By Harvey Morris in New York
Published: December 1 2008 08:48
http://palmtreeofdeborah.blogspot.com/2008/12/un-warns-of-us-dollar-co
llapse-in-2009.html

The current strength of the dollar is temporary and the US currency risks a hard landing in 2009, according to a team of United Nations economists who foresaw a year ago that a US downturn would bring the global economy to a near standstill.

In their annual report on the world economy published on Monday, the economists said the dollar’s sharp rebound this autumn had been driven mainly by a flight to the safety of the international reserve currency as the financial crisis spread beyond the US.

The overall trend remained a downward one, however, reflecting perceptions that the US debt position was approaching unsustainable levels. An accelerated fall of the dollar could bring new turmoil to financial markets.

“Investors might renew their flight to safety, though this time away from dollar-denominated assets, thereby forcing the US economy into a hard landing and pulling the global economy into a deeper recession,” the report said.

...The UN team said that, as the financial crisis spread beyond the US, there had been a massive shift of global financial assets into US Treasury bills, driving their yields almost to zero and pushing the dollar sharply higher. At the same time, however, the US’s external debt had risen to new heights that could provoke a dollar collapse...






Automobile Bailouts


Congress agrees to bail-out of Ford, GM and Chrysler

Lawmakers on Capitol Hill this weekend agreed to a short-term bail-out of America’s three biggest carmakers to prevent an imminent collapse of the ailing industry.

http://www.telegraph.co.uk/finance

Quote:

The White House and Democrats in Congress are this weekend working on details of the package to provide about $15bn (£10bn) in loans to General Motors, Ford and Chrysler. The legislation is being crafted for the beleaguered industry, which has called for a government bailout as the global recession has led to plunging sales of cars.

House Speaker Nancy Pelosi said the House of Representatives would consider legislation next week to provide “short-term and limited assistance” to the industry, which will undergo “major restructuring.”

She said: “Congress will insist that any legislation include rigorous and ongoing oversight to guarantee that taxpayers are protected and that resources are directed to ensure the long-term viability and competitiveness.”

The short-term lifeline comes as the heads of the Detroit car manufacturers have this week faced two days of intense questioning by assorted politicians on Capitol Hill as they call on Congress for $34bn of loans to help them survive a severe economic downturn.

Although a rescue package is likely to be considerably smaller than this figure, politicians have recognised that the collapse of any one of the Big Three would have profound implications for an already damaged American economy.

The agreement to put together a bailout package came just hours after the government reported that employers slashed 533,000 jobs in November – representing the worst single month’s job loss in 34 years. The three carmakers together employ nearly 250,000 workers, and more than 730,000 others produce materials and parts for cars.

The focus of the short-term bridging loan is likely to be GM and Chrysler, which are most in need of immediate assistance. GM had said it needed $4bn before the end of this month, while Chrysler, which is understood to have hired Jones Day for restructuring and bankruptcy work, had wanted $7bn immediately. The Senate is scheduled to be in session next week.

A key breakthrough on the long-stalled bailout proposals is understood to have come when Ms Pelosi bowed to President George Bush’s demand that the aid come from a fund set aside for the production of environmentally friendlier cars. She, along with environmentalists, had instead wanted the administration to take money from the $700bn fund the government set aside for the financial industry.

Ms Pelosi said the billions of dollars that had been set aside to modernise plants to develop the green cars would be repaid “within a matter of weeks.”

Although the details of the legislation are still being thrashed out, it is understood that this could include the creation of a trustee or group of industry overseers to make sure the bailout funds were used by car manufacturers for their intended purpose. The funds are designed to last until March.




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Monday, December 8, 2008 11:44 AM

OUT2THEBLACK


...Let’s examine how America has, and is being killed. In the main by two methods: (1) Currency destruction, and (2) Weakening the populace.
The currency destruction is inseparably linked to the second method.

Before FDR, people used to plan for their retirement, save in sound dollars, own a home, or in a hundred ways, plan for old age. Americans were strong, intelligent, hard working, and knew that if they didn’t plan for retirement and old age, they might die early. Did it work? Of course! Naturally, the weak and stupid didn’t plan for their old age, and guess what? They died early, which is as it should have been. Just like stupid animals, they couldn’t survive if they didn’t act and plan properly. An animal has to find a place to live, build a nest, store food, and the like. People had to pay their debts, pay off their home, save money, and PLAN. If they did, all was OK. If they didn’t, they died early. The human strain was kept strong by this method, just like in the animal kingdom.

What stopped this necessity to plan and save? Social Security, for one. Government would take care of the oldsters, and remove their duty and necessity to care and plan for themselves. Government would force a deduction from their paychecks, put it away for them, and then when they retired, all would be well. This, of course, weakened the populace. They no longer had to plan, save, sacrifice, and work hard for their old age. The weak no longer failed and died. They lived, and continued to live, when they should have, by all logical means, been dead and buried. By staying alive, they became and become a burden on the rest of the populace and families. Does this sound coarse, mean, crude, and ungodly? Maybe it does to you, but it is so logical. The Social Security scheme, like all other government “plans” and bureaucracies, have ruined the value of the dollar. Forced, compulsory, Social Security, like all other government entitlements, has become a disaster. There are far more retirees than workers, and the original 1% deduction, now is close to 20%, still not enough, thereby weakening all of us. As if that weren’t bad enough, government continues to lie about inflation, which it causes, so the welfare checks are far less than they should be; thereby screwing the supposedly well cared for recipients. No one can live on a Social Security check today, even though we have all been forced to pay through our noses to support it. The entire American citizenry has been made weaker, made unable to care for itself, and at the same time been stolen from in a wholesale manner. Government then, is killing its citizens and itself at the same time.



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Tuesday, December 9, 2008 10:59 PM

OUT2THEBLACK


Aught Nine is not looking so good :

'...London-based GFC Economics is making a frightening prediction: By spring 2009, the United States could be facing more than 1 million layoffs every successive month.

Expenses related to corporate debt, and muddy credit markets consumed by fear, are driving a fast-approaching "hard landing," claims a Sunday report in UK's Guardian.

"Corporate bond yields have rocketed since the credit crisis began as investors flee risky assets in search of safe havens such as US Treasuries. That effectively means many firms are being forced to pay eye-watering interest rates to borrow funds," the paper reported.

"November's jobs figures were so much worse than analysts had expected that the Dow Jones share index actually rallied by 259 points, more than 3 per cent, as investors bet that Washington would have to launch a major new rescue package for the economy even before President-elect Barack Obama takes over the White House in January." '

http://rawstory.com/news/2008/Coming_soon_to_U.S._1_million_1207.html

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Tuesday, December 9, 2008 11:39 PM

OUT2THEBLACK


http://online.wsj.com/article/SB122888021757894023.html?mod=googlenews
_wsj



From a WSJ Story , quoted in an online blog :


" The Federal Reserve is considering issuing its own debt for the first time, a move that would give the central bank additional flexibility as it tries to stabilize rocky financial markets.

Government debt issuance is largely the province of the Treasury Department, and the Fed already can print as much money as it wants. But as the credit crisis drags on and the economy suffers from recession, Fed officials are looking broadly for new financial tools.

Fed officials have approached Congress about the concept, which could include issuing bills or some other form of debt, according to people familiar with the matter.

It isn't known whether these preliminary discussions will result in a formal proposal or Fed action. One hurdle: The Federal Reserve Act doesn't explicitly permit the Fed to issue notes beyond currency.

Just exploring the idea underscores many challenges the ongoing problems are creating for the Fed, as well as the lengths to which the central bank is going to come up with new ideas."


http://jessescrossroadscafe.blogspot.com/2008/12/is-fed-taking-first-s
teps-to-default-or.html


Jesse adds his own terrific commentary :

" This makes little sense unless the Fed wishes to be able to set different rates for their debt, and make it a different class, and whore out our currency, the Federal Reserve notes, without impacting the sovereign Treasury debt itself, leaving the door open for the issuance of a New Dollar.

What an image. The NY Fed as a GSE, the new and improved Fannie and Freddie. Zimbabwe Ben can simply print a new class of Federal Reserve Notes with no backing from Treasuries. BenBucks. Federal Reserve Thingies.

Perhaps we're missing something, but this looks like a step in anticipation of an eventual partial default or devaluation of US debt and the dollar.

You know what they say: When the going gets tough, the debt holders get screwed.

We are going to have to tie Andrew Jackson down in his grave. "







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Wednesday, December 10, 2008 3:40 AM

DREAMTROVE


The problem is far worse than anyone thinks. The associated debt that the govt. has taken on by absorbing the mortgage guaranteers and through the federal reserve system exacerbates the situation to a point where now the amount of debt that would be created because of the devaluation to pay of the actual debt is now in the neighborhood of a quadrillion dollars. I assume that the outcome of this is that the dollar is doomed, and like Russia, we will start trading another currency soon.

I've been suggesting the RMB for a while. The currency of stability is generally whereever the industry is happening.

Nice flag.

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Wednesday, December 10, 2008 4:44 PM

OUT2THEBLACK


Quote:

Originally posted by dreamtrove:
The problem is far worse than anyone thinks. The associated debt that the govt. has taken on by absorbing the mortgage guaranteers and through the federal reserve system exacerbates the situation to a point where now the amount of debt that would be created because of the devaluation to pay of the actual debt is now in the neighborhood of a quadrillion dollars. I assume that the outcome of this is that the dollar is doomed, and like Russia, we will start trading another currency soon.


Nice flag.



" It's worse than you know..."

" It usually is..."


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Wednesday, December 10, 2008 5:18 PM

OUT2THEBLACK


Remember , for a good part of America's history , every dollar in your pocket was a dollar backed by gold . So it's not so crazy to ask yourself... if America has 8,180 tons — nearly 261.7 million ounces — of gold in reserve...how many dollars does that buy ?

The answer will shock you .

When dollars became unhinged from gold , the printing presses at the Fed cranked up . By 1980 , for every ounce of gold in America , the financial system carried $6,966 in cash . That's $1.8 trillion total . But get this — by the end of 2005 , the total real money supply shot to over $10 trillion .

That's $38,349 in circulation for every ounce of gold in reserve !

Of course , it's even higher now. The printing presses are still cranking , well into 2008 . Only now, it's much harder for you to know how fat the actual money supply has gotten .

See , by March 23, 2006...the number had gotten so embarrassing...the Fed actually "retired" a number, "M3" , which was the most broad-reaching measure of how much cash floats around in the system .

Yep...Instead of fixing the problem , the politicians just stopped talking about it . Is that any surprise ?

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Wednesday, December 10, 2008 6:00 PM

OUT2THEBLACK


Trading in Renminbi may be a good thing for the short-term...

Its longer-term prospects depend upon many factors...

One great potential-positive is a possible Alliance of the Russians with the Chinese for the purpose of moving away from the US Dollar as a world 'reserve' currency...

Meanwhile , here's an interesting story about the move of the Mexican Peso away from backing in precious metal :

'...John Maynard Keynes: "Lenin was certainly right, there is no more positive, or subtle means of destroying the existing basis of society than to debauch the currency. By a continuing process of inflation, governments can confiscate secretly and unobserved an important part of the wealth of the citizens. The process engages all the hidden forces of economics on the side of destruction, and does it in a manner that not one man in a million can diagnose" (Economic Consequences of the Peace)

From 1572 (perhaps even earlier) and up to 1914, the silver content of the Mexican Peso (which during the Spanish Colonial era was known as the "Piece of Eight Reales") was held to a remarkably stable standard: 24.44 grams of pure silver. (At some times during the early Colonial period it was minted with a slightly higher content; during one period of twenty years, with a very slightly lower silver content.)

For 342 years, the Mint at Mexico City produced the world's most stable currency. Only the Byzantine Empire holds a superior record.

In 1910, a "Régime Change" was ordered by William Howard Taft, 27th President of the United States 1909-1913, and consequently a revolution broke out in Mexico on November 20, 1910.

In 1918 the revolutionary president of Mexico, Carranza, minted a new Peso. The Peso's silver content was reduced from 24.44 grams, where it had been for 342 years, to 14.5 grams.

In 1925, with U.S. coaching, a Mexican Central Bank was formed and named Banco de México. This organization was granted the monopoly of issuing banknotes; up to that time each private bank issued its own banknotes under its own name and responsibility and redeemable in precious metal at sight to the bearer.

As a final consequence of the creation of the Central Bank, the Mexican nation gave up real silver money. Through a series of accommodations to political circumstances we have arrived today at a simulated Peso, which circulates together with junk metallic coins and banking computer digits.

In cultural and human terms the use of simulated money has cost Mexico the disintegration of the institutions which have given shape to our nationality. The cultural and human stature of each Mexican has been severely reduced; we have all with no exceptions fallen into an endless race for survival. Simulated money is a merciless master who grants neither peace nor tranquility, and who imperiously and ceaselessly orders: "Work! Work! Work!" One hundred million Mexicans are submissive slaves of the system of simulated money.

Faced with a history of destruction of our culture, of our institutions and of the human dimensions of Mexicans, not to mention the impoverishment which has resulted from the devaluation of our currency, all attributable to the simulated Peso, the Central Bank remains supremely unconcerned; however, the consequences of abandoning real money in favor of simulated money are inevitable, not only for Mexico, but for the rest of the world as well, which is suffering the same destructive process.'

http://www.321gold.com/editorials/price/price110706.html

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Saturday, December 13, 2008 8:52 PM

OUT2THEBLACK




Important NEW VIDEO :



All Good Folk should oughta watch...

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Sunday, December 14, 2008 1:12 AM

FREMDFIRMA


You know, it doesn't matter what one uses for currency so long as it's value is agreed upon by both sides.

That's a point made by Roger Sherman, and in a sideways kind of way by Hoyles Law as well.

Precious metals are of course the most common, but someone earlier today reminded me of a book series where the economic situation connected with some folks flaming of the "gold standard"...

The original Dragonlance Chronicles.

Gold was virtually worthless, and coinage was steel, cause of it's value in making weapons.

You know, for that fact alone, that their currency was based on such a thing would certainly indicate a world I wouldn't wanna live in, talk about might makes right, yeesh.

I think WHAT you use for currency sends a message too, for good or ill, and today is good, very good...

I just got paid in cornbread for doing a tuneup and oil change on a sweet old lady's beat up station wagon - six full pans of it.
*munchmunch*

You can't eat paper, well, you could, but it wouldn't be half as tasty now, would it ?

-Frem

It cannot be said enough, those who do not learn from history, are doomed to endlessly repeat it

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Sunday, December 14, 2008 8:18 PM

OUT2THEBLACK


Quote:

Originally posted by Fremdfirma:
You know, it doesn't matter what one uses for currency so long as it's value is agreed upon by both sides.




That's where the Federal Reserve has it over us...

You and I didn't agree to be part of their scheme...But , that doesn't ever get in THEIR way , now , does it ?

It's an "adhesion contract" that they stick to US , and we don't get a choice in the matter...Using one of their Notes ( debt instruments ) implies 'consent'.

That's why the Founders specified that we had to use COIN of precious Metals...Not 'fractional reserve' banking , usurious interest , and 'derivatives' schemes...It's still the case that no State in the Union may make any Thing but Gold and Silver COIN a Tender in payment of a debt .

Hard to get 'wrong way up' with metallic exchange...That's when a buck's a buck , and 'paper losses' would be the exception , rather than the order of the day...


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Sunday, December 14, 2008 10:24 PM

FREMDFIRMA


There's that, but cornbread tastes a hell of a lot better, and in this case, cut out the middleman, and the time/effort to go find and purchase some.


I've also noted a lot of a geek types using blank CDR's for currency as well.

It's all in what you value, I guess.

-F

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Monday, December 15, 2008 2:03 AM

GINOBIFFARONI



Banks hit worldwide by US fraud
Bernard Madoff in 1999 - AP Photo/The New York Times, Ruby Washington
Mr Madoff is the former chairman of the Nasdaq stock exchange

Some of the world's biggest banks have revealed that they are victims of a US hedge fund which lost $50bn (£33bn).

Bernard Madoff has been charged with fraud in what is being described as one of the biggest-ever such cases.

Among the banks which have been affected are Britain's RBS, Spain's Santander and France's BNP Paribas.

One of the City's best-known fund managers has criticised US financial regulators for failing to detect the alleged fraud.

'Financial scandal'

Nicola Horlick, boss of Bramdean investments, said US regulators had "fallen down on the job".

Mrs Horlick told the BBC: "I think now it is very difficult for people to invest in things that are meant to be regulated in America, because they haven fallen down in the job."


FROM THE TODAY PROGRAMME

More from Today programme

"This is the biggest financial scandal, probably in the history of the markets - $50bn is a huge amount of money," she said.

Among those financial institutions which have so far announced investments with Bernard Madoff:

* The Royal Bank of Scotland said on Monday it could potentially lose about £400m from the alleged fraud, if all its investments had to be written off
* Spain's largest bank, Santander, which also owns the UK High Street banks Abbey, Alliance & Leicester and Bradford & Bingley, said one of its funds had $3.1bn invested in the firm run by Bernard Madoff
* France's BNP Paribas estimated its exposure to be more than $460m
* The French bank, Natixis, a subsidiary of Caisse d'Epargne and Banque Populaire, said it could potentially lose up to 450m euros (£402m; $605m)
* One of the world's biggest investment groups, Man, said it had invested about $360m through its RMF institutional fund of funds business, representing 0.5% of its total funds
* Japanese bank Nomura said its exposure was relatively small, at about 27.5bn yen (£201m), and added: "We regard this as non-material, considering our capital base."

'Systemic failures'

Mrs Horlick said 9% of Bramdean's funds were invested with Mr Madoff, but she said even if the money was written off, the fund involved would be down just 4%.


The collapse of Madoff is likely to accelerate the disappearance of hedge funds
Robert Peston

Read Robert Peston's blog

"I just want to make it clear to investors that even after this, they they would have done extremely well, relative to anything else they could have invested in," she said.

In a statement, Bramdean said: "It is astonishing that this apparent fraud seems to have been continuing for so long, possibly for decades, while investors have continued to invest more money into the Madoff funds in good faith.
Nicola Horlick
Nicola Horlick has heavily criticised the performance of financial regulators

"The allegations made appear to point to a systemic failure of the regulatory and securities markets regime in the US."

Correspondents say the case is likely to fuel uncertainty about the entire hedge fund industry.

US prosecutors say Mr Madoff, a former head of the Nasdaq stock market, masterminded a fraud of massive proportions through his hedge fund and investment advisory business.

Mr Madoff is alleged to have used money from new investors to pay off existing investors in the fund.

A federal judge has appointed a receiver to oversee Mr Madoff firm's assets and customer accounts, while the 70-year-old banker has been released on $10m bail.

High returns promised

Mr Madoff founded Bernard L Madoff Investment Securities in 1960, but also ran a separate hedge fund business.

According to the US Attorney's criminal complaint filed in court, Mr Madoff told at least three employees on Wednesday that the hedge fund business - which served up to 25 clients and had $17.1bn under management - was a fraud and had been insolvent for years.

He said he was "finished", that he had "absolutely nothing" and "it's all just one big lie", and that it was "basically, a giant Ponzi scheme", the complaint said.

Under a Ponzi scheme, which is similar to pyramid schemes, investors are promised very high returns on their investment, while in reality, early investors are paid with money collected from later investors.

If found guilty, US prosecutors say he could face up to 20 years in prison and a fine of up to $5m.

http://news.bbc.co.uk/2/hi/business/7783236.stm




Lets party like its 1939

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Wednesday, December 17, 2008 2:28 PM

JAYNEZTOWN


Socialist Nation?

ZERO INTEREST RATES

US is running out of options
http://economictimes.indiatimes.com/Opinion/US_is_running_out_of_optio
ns/articleshow/3854952.cms

The US Federal Reserve surprised markets on Tuesday with a larger-than-expected cut in its Fed rate (indicative overnight inter-bank rate) bringing it down to virtually zero. At the conclusion of the Fed Open Markets Committee meeting, the US central bank said it would target a rate between zero and 0.25%. It also pledged to “use all available tools to promote the resumption of sustainable growth and to preserve price stability”. If only the Fed had shown as much zeal in tracking and curbing banking sector excesses when they took place right under its nose, the world economy might not have come to this sorry pass. Alas, that is all in the past! Right now the first priority is to get the US economy — the 800-pound gorilla in the room — moving. Unfortunately, the outlook is not too bright.



Dollar is ravaged as Fed goes to zero interest rates
2:31 PM, December 17, 2008
http://latimesblogs.latimes.com/money_co/2008/12/the-dollar-has.html
The dollar has been thrown to the wolves by the Federal Reserve’s decision Tuesday to slash its benchmark short-term interest rate to as low as zero.

Do Fed policymakers care about the greenback's fate? For now, they obviously don’t.

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Thursday, December 18, 2008 4:02 AM

JAYNEZTOWN


The dollar hit a 2 1/2-month low against the euro and was close to 13-year low versus the yen

http://www.foxbusiness.com/story/markets/market-overview/forex-dollar-
stays-weak-hits---mth-low-vs-euro
/

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Monday, December 22, 2008 3:55 PM

JAYNEZTOWN


Inhofe: Washington "out of control'' on bailout
http://www.tulsaworld.com/news/article.aspx?subjectid=298&articleid=20
081212_298_0_WASHIN24533

By Jim Myers World Washington Bureau
Published: 12/12/2008 3:46 PM
Last Modified: 12/12/2008 6:40 PM

WASHINGTON – U.S. Sen. Jim Inhofe said Friday a White House suggestion that part of the $700 billion Wall Street bailout now will go to automakers means Washington might be "completely out of control.''

"I've been a U.S. senator for some time, and I have never seen anything like this,'' the Oklahoma Republican said.

Inhofe was responding to a statement by White House press secretary Dana Perino that the administration might use part of so-called TARP money to prevent a collapse of troubled automakers.

"A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time,'' Perino said.

Her comments came one day after negotiations in the Senate over the auto bailout fell apart and a House bill did not get the 60 votes needed in the Senate to overcome a Republican filibuster.

Inhofe opposed the House bill.

"As the Bush administration changes course once again, it is becoming clear to me that Washington, D.C. might be completely out of control,'' he said.

"How have we come to a point that Congress—the institution that represents the will of the American people—has handed over so much money and authority to the Treasury secretary that, if the democratic process fails to achieve a certain desired outcome, the outcome is simply ignored?''

Inhofe, who also voted against the financial bailout, recalled the stated purpose of $700 billion bailout was to rescue the country from a catastrophic
breakdown of the financial system.

"Now we’re told that the money might be used to bailout the auto companies because legislating their multi-billion dollar gift from the U.S. taxpayer might come with conditions that were too inconvenient for interested parties,'' he said.

Democrats were encouraged by the White House's new stance.

"We have said all along that the Treasury already has the authority and resources to protect millions of Americans who work in our nation’s struggling auto industry,'' said Senate Majority Leader Harry Reid, D-Nev.

"With the stroke of a pen, Secretary (Henry) Paulson can reverse what stubborn Republicans did last night – recklessly turning their backs on American families whose livelihoods depend on a healthy Detroit and risking further peril to our economy.''

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Monday, December 22, 2008 7:20 PM

DREAMTROVE


Quote:




I agree, but I'm somewhat hesitant to put the future of economy in the RMB, not just because it is controlled by a communist hierarchy, but because that communist hierarchy is a complicit participant in the NWO global financial system of perpetual debt slavery.

You understand the problem well. While none of this was news to me, I find that it's surprising what some of the people on this forum know and understand and a shame that we drown in petty bickering rather than move forward with new ideas.

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Monday, December 22, 2008 8:42 PM

OUT2THEBLACK


Thanks for sayin'...

And Ditto , what you said...

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Monday, December 22, 2008 8:48 PM

OUT2THEBLACK


Quote:

Originally posted by JaynezTown:
Socialist Nation?

ZERO INTEREST RATES

US is running out of options
http://economictimes.indiatimes.com/Opinion/US_is_running_out_of_optio
ns/articleshow/3854952.cms

The US Federal Reserve surprised markets on Tuesday with a larger-than-expected cut in its Fed rate (indicative overnight inter-bank rate) bringing it down to virtually zero...

...If only the Fed had shown as much zeal in tracking and curbing banking sector excesses when they took place right under its nose, the world economy might not have come to this sorry pass. Alas, that is all in the past! Right now the first priority is to get the US economy — the 800-pound gorilla in the room — moving.

Unfortunately, the outlook is not too bright.





Nor are the " Money Managers "...

They actually know exactly what they're doing...BUT , They are NOT working for US...

They've set off an ECON-Bomb for the controlled demolition of the United States economic infrastructure...

The objective : 'Creative' Destruction...

They mean to wreck us , so they can 'remake' us...

So far , it's working...Not enough Folk have caught on...

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Tuesday, December 23, 2008 8:24 AM

OUT2THEBLACK


New Warnings of Economic Riots and Civil Unrest

Chelsea Schilling -- WorldNetDaily

http://www.wnd.com/index.php?fa=PAGE.view&pageId=83977


' "...Pentagon resources and U.S. troops may be used if needed to quell protests and bank runs during an economic crisis, the U.S. Army War College's Strategic Institute reported.

"Widespread civil violence inside the United States would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security," the War College study states...

Last month, trends forecaster Gerald Celente told Fox News that America will morph into the first "undeveloped" nation of the world by 2012. He said there will be a tax revolution marked by "food riots, squatter rebellion, tax revolts and job marches."

Incidents of economic collapse, terrorism and disruption of legal order could require deployment of forces within the U.S., it said." '

CELENTE VIDEO available for viewing at the Link above...

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Tuesday, December 23, 2008 10:25 PM

OUT2THEBLACK


It's been coming for a while , but Folk should feel the need to oppose this :


BANKRUPTED STATES = CON-CON & NEWSTATE CONSTITUTION


By Nancy Levant
December 24, 2008
NewsWithViews.com

The strategically planned and forthcoming Constitutional Convention, which will address “a balanced budget,” is quite a cover story.
Therefore, let us consider the truth behind this elaborate usurpation scheme.

As the country is failing in every direction – from the former individual in America to each and every individual state in the country, the total economic crash of EVERYTHING – and all converging at the very same time and as we speak – is, let us say, extraordinarily convenient.

Add this convenience to the fact that on March 27, 1969, President Richard Nixon divided the country into 10 regions via the Government Reorganization Act. Then with Nixon’s Executive Order 11647, the nation was divided up into 10 administrative regions on February 14, 1972 (Federal Register February 12, 1972, Vol. 37, No. 30), which also established the Federal Regional Council for the newly designed 10 regions. Now, why did former President Richard Nixon redefine the United States? He did so because the United Nations passed a resolution that the United States must reorganize into 10 regions.

Can you name your regional directors? Who are these councils, and where are their office buildings? Actually, you don’t know because they were not “elected,” nor are they mentioned on your tell-a-visions. Your regional councilmen are “appointees.” Can you tell me who appointed them to regional power? Bet you can’t. And the reorganizing of our former nation, achieved more than 25 years ago, and of which you know nothing, certainly suggests that “government” as we knew it changed a long time ago. With all this information now in hands, ask yourselves what would happen in the event of a really big, national “crisis?” What powers do your states hold, or for that matter, your counties or local governments hold – especially since they are all bankrupt AND have regional managers.

Add this to your plate: now that you know your nation has been redrawn and redistributed, what if I told you that a new constitution was written at the same time the country was divided into 10 regions? Ever heard of the Proposed Constitution for the Newstates of America?

In 1964, the Ford Foundation funded an outfit called the Center for the Study of Democratic Institutions to write a new constitution for our nation. After 40 drafts, a staff of 100+ people, and at a cost of 2.5 million dollars a year, a decade later (1974) the Proposed Constitution for the Newstates of America was finished. Mind you – a ten year, $25,000,000.00 project…let us therefore assume that the funding foundation(s) were very serious about this investment. And two years later in 1976, Mr. Nelson Rockefeller, who at that time was the president of the Senate, introduced HCR 28, which called for an unlimited Constitutional Convention – the perfect tool whereby to dissolve our current constitution and implant the handily written new constitution – and all without congressional oversight or public knowledge.

Didn’t go well for Nelson in 1976, but guess what? A new Constitutional Convention is right around our corners again – with 32 states requesting the Con-Con, and with only 34 required for it’s convening – and with most American states now totally, conveniently, bankrupt. Look at it this way: the Feds can not possibly bail out 50 states because they’ve already given all our money away – right? And we can’t pay taxes anyway because we have no jobs. Gosh…what can the Feds possibly do to rectify this horrible situation?

Dialectically speaking, they’ve had their answer of choice in the wings for decades. It’s called dissolving state, county, and local powers for centralized power. Gosh…it’s the United Nations mandate for one world government and regionalization of the United States – as commanded in the 1960’s. Do tell, folks…do tell.



The current economic “crisis” is the tool, the highly planned and patient tool, to set up the global governing bureaucracy for real and for certain with the second convening of the Constitutional Convention in the wings. The big wigs tried it before in 1976, and they are trying again, but this time having manufactured national bankruptcy as public fear-based appeasement.



I suggest you read your forthcoming constitution, which is also your forthcoming nightmare. Here is just a taste of your global privileges from your Constitution for the Newstates of America:

Article 1-A Sec.1 - "Freedom of expression shall not be abridged except in declared emergency."

Article 1A Sec.8 - "The practice of religion shall be privileged."

Article 1B Sec. 8 - "Bearing of arms shall be confined to the police, members of the armed forces, and those licensed under law."

© 2008 Nancy Levant - All Rights Reserved

Research:

http://www.governamerica.com/
http://www.sweetliberty.org/index.shtml


http://www.newswithviews.com/Levant/nancy116.htm

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Tuesday, December 23, 2008 11:06 PM

OUT2THEBLACK


http://blogs.wsj.com/washwire/2008/12/15/states-brace-for-wide-budget-
gaps
/

“...It is not a pretty picture, and it warns of worse times ahead,” said Scott Pattison, executive director of the National Association of State Budget Officers. The figures, based on preliminary 2008 data and projected 2009 data from enacted state budgets, were included in the Fiscal Survey of States, put out by Pattison’s organization and the National Governors Association.

States are asking the federal government for billions in aid as part of an economic stimulus package Congress is expected to take up in January. States may ask for between $60 billion to $100 billion to partly offset combined 2009 and 2010 shortfalls that could be as much as $190 billion, said Raymond Scheppach, executive director of the National Governors Association. One way to do that, he suggested, would be to increase the federal share of Medicaid, the joint state-federal health program for the poor."


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Tuesday, December 23, 2008 11:21 PM

OUT2THEBLACK


A CONSTITUTION FOR THE NEWSTATES OF AMERICA,

from the book, THE EMERGING CONSTITUTION by Rexford G. Tugwell, published 1974 (Harper & Row: $20.00) illustrates with chilling clarity
the final objective of regional governance conspirators.

The goal is a corporate state concentrating economic, political and social powers in the hands of a ruling elite.

"A Constitution for the Newstates of America", is the fortieth version of this revolutionary document prepared by a team of social experimenters at the CENTER FOR THE STUDY OF DEMOCRATIC INSTITUTIONS, Fund for the Republic (Ford Foundation), Post Office Box 4068, Santa Barbara, California 93103.

The Center, its first objective accomplished, has appointed socialist-oriented University of Denver Chancellor Maurice B. Mitchell as its new head and may merge with the Aspen Institute for Humanistic Studies, a Colorado-based world government policy promotion agency.

Aspen Institute Chairman is Robert O. Anderson, chief executive officer, Atlantic Richfield Company; member, Committee for Economic Development (laid ground work for regional government), and advisory board member, Institute for International Education. Anderson is the principal figure in campaign aimed at seizing control of the National Rifle Association.

http://www.sweetliberty.org/issues/concon/newstates.htm

Know what is HAPPENING TO YOU , and WHY :



SHOCK DOCTRINE

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Thursday, August 27, 2009 12:47 PM

OUT2THEBLACK


http://globalresearch.ca/index.php?context=va&aid=14922

Financial Parasites Have Killed the American Economy

A Review of Economist Michael Hudson

by Washington's Blog

.
Global Research, August 27, 2009
Washington's Blog - 2009-08-26


Michael Hudson is a highly-regarded economist. He is a Distinguished Research Professor at the University of Missouri, Kansas City, who has advised the U.S., Canadian, Mexican and Latvian governments as well as the United Nations Institute for Training and Research. He is a former Wall Street economist at Chase Manhattan Bank who also helped establish the world’s first sovereign debt fund.


Hudson has frequently described Wall Street as "parasitic". For example, in a 2003 interview, Hudson said:

The problem with parasites is not merely that they siphon off the food and nourishment of their host, crippling its reproductive power, but that they take over the host's brain as well. The parasite tricks the host into thinking that it is feeding itself.

Something like this is happening today as the financial sector is devouring the industrial sector. Finance capital pretends that its growth is that of industrial capital formation. That is why the financial bubble is called "wealth creation," as if it were what progressive economic reformers envisioned a century ago. They condemned rent and monopoly profit, but never dreamed that the financiers would end up devouring landlord and industrialist alike. Emperors of Finance have trumped Barons of Property and Captains of Industry.

More recently, Hudson said:

You can think of the financial sector as being wrapped around the real economy, almost like a parasite, and that's why it's been called parasitic for so long. The financial sector extracts interest from the economy, the property sector extracts economic rent, as do monopolies. Now the key thing about parasites, is that it's not simply that they extract nourishment from the host. The parasite takes over the host's brain, to make it think it's part of the economy, to make it think it's part of the host's own body, and, in fact, that's it almost like a child of the host, to be protected. And that's what the financial sector has done today.

You have Obama coming out and saying, "We have to save the banks in order to save the real economy". The fact is, you can't serve both the parasite and the host.

And see this.


Today, I heard the podcast of an interview by KPFA radio host Bonnie Faulkner in which Hudson went even further. Specifically, he said:

*
The giant financial institutions have already killed their host - the real American economy

*
Since they realize that the American economy is dead, they are trying to suck as much blood out of America as possible while the corpse is still warm

*
Because the American economy is dead, their plan is to soon jump to another host. They will ship all of their money overseas



Washington's Blog is a frequent contributor to Global Research. Global Research Articles by Washington's Blog

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