Thursday, September 25, 2008

Bailouts: the wound that will keep on hemorrhaging


Devvy Kidd

Go To Original

"No one knows what to do. We are in new territory here. This is a different game. We're not here playing soccer, basketball or football, this is a new game and we're going to have to figure out how to do it." Sen. Harry Reid [D-NV], September 17, 2008

It is exactly that level of ignorance in the U.S. Congress for decades that has brought America to the brink of financial ruin. William Greider, author of Secrets of the Temple, said the same thing during his testimony, House Banking Committee, October 7, 1993:

"Otherwise confident and intelligent people including members of Congress - defer to the Fed's wisdom mainly because they do not understand it....The only players who are left out of this conversation are the American people and, to a large extent their elected representatives. Instead, they are provided a frustrating stream of evasive euphemisms and opaque jargon and platitudinous generalities and, sometimes, even downright deception. As more than one Federal Reserve governor confided to me, it would be very difficult - perhaps impossible - for the Fed to have an honest discussion of monetary policy with Congress or the public because the level of ignorance is so profound."

Clearly, we have made huge strides in educating our fellow Americans about fiat currency and sound monetary policy, but without real newspapers in this country, most Americans don't know the truth. It's also crystal clear that members of Congress, with few exceptions, are clue less. I think it's safe to say that many of those who do know, don't have the courage to go up against the most powerful money cartels in the world; the rest are simply crooks who profit from a corrupted monetary system. Over the decades, Congress has been perfectly willing to forfeit their authority, violate their oath of office and the supreme law of the land as Robert Reich, former Secretary of Labor under Bill Clinton, pointed out in USA TODAY, January 7, 1999:

"The dirty little secret is that both houses of Congress have become irrevelant...In case you hadn't noticed, America's domestic policy is being run by Alan Greenspan and the Federal Reserve Board...Congress is out of the loop. Every so often, some senators or House members politely ask Greenspan to visit and talk about the economy. He obliges by riding up to the Hill and muttering convoluted sentences that no two people interpret in quite the same way. Then he goes back down to the Fed and runs the country."

Not long after the unconstitutional Federal Reserve Act was passed and our country was turned over to a cabal of the rich and privileged, there were congressmen who railed against this massive fraud and swindle. Louis McFadden was one of the champions of exposing what happened by the passage of that act. On May 23, 1933, McFadden launched an indictment against the robbers called banker barons:

"Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.

"This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it....

"The Federal Reserve Bank destroyed our old and characteristic way of doing business. It discriminated against our 1-name commercial paper, the finest in the world, and it set up the antiquated 2-name paper, which is the present curse of this Country and which wrecked every country which has ever given it scope; it fastened down upon the Country the very tyranny from which the framers of the Constitution sough to save us....

"As Agents of the foreign central banks the Fed try by every means in their power to reduce our favorable balance of trade. They act for their foreign principal and they accept fees from foreigners for acting against the best interests of these United States."

In my last column, I warned we the people would be forced to sacrifice the fruits of our labors to foreign banks -- just as Congressman McFadden said in his indictment. I told you so:

September 24, 2008: Fed plows $30 BILLION into money markets overseas. "WASHINGTON — The Federal Reserve, in coordinated action with foreign central banks, plowed $30 billion into money markets overseas Wednesday, part of an ongoing effort to fight a global credit crisis...The Group of Seven countries said they welcomed the extraordinary steps by the United States to stem the crisis, including a plan for the Treasury Department to buy $700 billion in bad mortgages and other toxic assets held by banks and other financial institutions. Those dodgy debts are at the heart of the crisis. Besides the United States, the Group of Seven is made up of Japan, Germany, France, Britain, Italy and Canada."

Of course, this "news" item never mentions the core issue of the problem, only more Band Aids and rape of the people's pocket books. As masters of word smith and propaganda, the privately owned FED cartel of bankers publishes numerous booklets to legitimize their existence.

This nifty, full color publication was put out by the Federal Reserve of Boston in August, 1990. This marvelous example of clever wording actually gives the reader some glimpse into the plan which turned into the greatest swindle in the history of the world, pg 30: "They made it clear they wanted the Aldrich plan, with one central bank generally controlled by bankers and generally independent of government regulation." However, unless someone has read one of the most authoritative and fully documented works, Creature from Jekyll Island, and The Coming Battle, they won't understand the dry words on these pages and how they conceal a monstrous plan to loot and plunder the people's treasury.

This is one of my favorites from the Graduate School of Business, Indiana University for the St. Louis Fed. What this sterling little work doesn't tell the reader is the real truth behind the Aldrich Plan "covered" on pages 4-6. While many believe Wilson later regretted his signature on the bottom line of the legislation creating this monster, according to John Milton Cooper, professor of history at the University of Wisconsin, author of several books on Woodrow Wilson, in an email to columnist, Andrew Leonard, "I can tell you categorically that this is not a statement of regret for having created the Federal Reserve. Wilson never had any regrets for having done that. It was an accomplishment in which he took great pride."

Why would Wilson regret it? He wasn't stupid. Wilson knew what he was doing. He was a player. In an effort to inculcate the propaganda of the Fed and the wonder of fiat currency into the minds of all Americans, the Federal Reserve also distributes comic books for kids; see selection here.

Of course, like today, the passage of the Federal Reserve Act was one of greed. Some things never change:

"Mr. President, I deeply feel my recent affiliation with the big business interests of the country, and I appreciate the complete reform of the Republican Senators, who have had for years the opportunity of giving this country relief against big business and have never done it, and who have not only been affiliated with big business, but have been receiving campaign funds ad libitum from those very interests." Sen. Robert L. Owen, Congressional Record - Senate, December 23, 1913, page 1472

Owen's mea culpa was short lived as we see on page 1473: "Senator Robert L. Owen, chairman of the Senate Committee on Banking and Currency, last night confirmed a report that he is to be a large stockholder in a national bank now being organized in St. Louis." The senator from Mississippi, Bristow continues, "In closing I desire to say that this bill contains a concentration of power that has never been lodged in any Federal officer since the Government was established. It puts in the hands of the Secretary of Treasury and his subordinate officer, the Comptroller of the Currency, a power over the banking and currency affairs of this Nation greater than has ever been held by any man in the history of any civilized nation over the banking and currency of that nation."

This latest bail out will take the treachery to the final end with 32 words:

"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

"In short, the so-called "mother of all bailouts," which will transfer $700 billion taxpayer dollars to purchase the distressed assets of several failed financial institutions, will be conducted in a manner unchallengeable by courts and ungovernable by the People's duly sworn representatives. All decision-making power will be consolidated into the Executive Branch - who, we remind you, will have the incentive to act upon this privilege as quickly as possible, before they leave office. The measure will run up the budget deficit by a significant amount, with no guarantee of recouping the outlay, and no fundamental means of holding those who fail to do so accountable."[1]

Many years ago, another brave member of Congress had this to say:

"Now, take the Panama Canal bonds. They amounted to a little less than $50,000,000 - $49,500,000. By the time they are paid the government will have paid $75,000,000 in interest in bonds of less than $50,000,000. So the government is paying out $125,000,000 to obtain the use of $49,500,000. That is the way it has worked all along...

"Now, I believe the system should be changed. The Constitution of the United States does not give the banks the power to create money. The Constitution says that Congress shall have the power to create money, but now under our system we will sell bonds to commercial banks and obtain credit from those banks. We do not receive money for the bonds...

"I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress to sit idly by and permit such an idiotic system to continue. I have talked to the Secretary of the Treasury and members of the Federal Reserve Board and other people who are supposed to know about the money system of our country. They know this can be done easily and conveniently, and it will save money; but their one reply is, "It will have a bad psychological effect." Well, I do not think it would have a bad psychological effect to save the people 50 per cent of their national debt. I do not think it would have a bad psychological effect to save the people over a billion dollars a year in interest. I do not think it would. It certainly would have a bad effect on the people who are collecting interest on the Government's money." Congressman Wright Patman, Congressional Record, September 29, 1941, pgs 7582, 7583

The fools in Congress handed over the Panama Canal to a banana republic with the communist Chinese running the show. While the labor and sweat of the American people was simply thrown aside, we the people were left with more debt.[2]

Congressman Ron Paul has been writing against this evil monetary system for more than 30 years:

"The taxes cannot be raised much more, so they can go out and borrow money....So then, they go and spend the money, and, lo and behold, there is not enough money to borrow and not enough tax money to go around, so they have to have one more vehicle, and that is the Federal Reserve, and with a computer they can turn a switch and create a billion or $10 billion in a single day and that debases the currency. It diminishes the value of the money and alters interest rates and causes so much mischief, that, if people are concerned about the economy or their standard of living or rising costs of living, this is the source of the problem." Congressional Record, April 28, 1997, page H-1902, Federal Reserve Has Monopoly Over Money and Credit in the U.S.

Dr. Paul is still desperately trying to make his colleagues in Congress understand that these hastily slapped together so they can recess bail outs will simply kill a free market system. Yes, the taxes will be raised until we are beggars in our own land because the beast demands to be fed for all the debt now being rammed down our throats. If enough of our enemies don't buy our paper, where will the "money" come from to pay the interest for all these hot checks?

The American people demanded change in 2006; about 30 seats out of 535 in Congress changed. Two years later, no change, only more disasters. The House of Nitwits and their counterparts in the U.S. Senate are about to push America into the abyss for good. What do you think will happen if virtually the same Congress is sent back to Washington in January, 2009? Obama and McCain are clue less and besides, they're just puppets who dance when their strings are pulled by the destroyers who run the shadow government:

“The interesting thing is that they (the financial institutions) don't come to the Congress, I mean the Federal Reserve buys them out, they own it. We as tax payers now own Fannie Mae and Freddie Mac and know one knows how much that will cost. They don't come to the Congress, we don't have appropriations, it's done by secret government, private individuals behind the scenes maneuvering and manipulating and trying to patch things up."[3]

Remember the completely ignored facts brought out in Carolyn Lochheads's column, September 12, 2004: Speeches Ignore Impending U.S. Debt Disaster?[4] The numbers were beyond staggering then. Add a few trillion more onto the bonfire with all these bail outs, foreign and domestic, and what you are looking is the equivalent of a thermonuclear bomb waiting to go off.

When you're talking four years ago that the only way to combat a $72 TRILLION dollar fiscal "gap" is to raise the income tax by a whopping 2/3rds FOREVER, people had better get very, very afraid.

This past weekend, I watched financial guru, Dave Ramsey, discuss people staying in the market and not worry about their 401(k)'s and pension funds because they're parked in companies like McDonalds and other conglomerates. Like they can never go out of business. Does ENRON come to mind? As the 7th largest corporation at the time with a $60 BILLION dollar capitalization, they went down the drain. While I was pleased to read there is a settlement in the ENRON lawsuits, when that behemoth collapsed, thousands were wiped out, lost their homes and couldn't find jobs because the company cooked the books. In the recap of the settlement, some of the money goes to pension plans.

What if ENRON had no assets when it collapsed?

In recent columns I have reminded people about the bail out for Chrysler - a 'one time' kiss from Congress back in 1981. Not so fast:

"Aug. 22 (Bloomberg) -- General Motors Corp., Ford Motor Co., Chrysler LLC and U.S. auto-parts makers are seeking $50 billion in government-backed loans, double their initial request, to develop and build more fuel-efficient vehicles..." Next year is going to be a make-or-break year in terms of survival,'' said Mirko Mikelic, senior portfolio manager at Fifth Third Asset Management in Grand Rapids, Michigan, which oversees $22 billion in assets, including GM and Ford bonds. "Any help like these government loans would be a huge boost.''

I'm thinking to myself, just where is this "money" for these unconstitutional loans going to materialize from? As I write this column, the people's treasury is now overdrawn just under $9.8 TRILLION dollars, but Congress is going to write more hot checks for BILLIONS of "dollars"? Can you see a pattern here of no end in sight for bail outs?

You betcha Bernanke wants to shove this gargantuan package of toxic debt down our throats because the resistance from the American people has shocked the money elites who will benefit. Bush and Bernanke want to get Congress to sign on the bottom line before they take off this Friday for vacation the rest of the year. Oh, yeah. They'll also be out campaigning. All of the House is up for reelection and one third of the unlawfully seated U.S. Senate. We're also supposed to believe these ignorant members who make up the U.S. Congress are going to "fix" the problem with a 'wham-bam-thank-you-mam' 2,300 page solution that most of them haven't read or even understand before they leave town?

The final thrust is already underway: a global system:

"The big central banks should put in place a standing network of currency swaps, collateral policies and account arrangements that would make it easier to mobilize liquidity across borders quickly in a crisis."[5] Timothy Geithner is president and CEO of the NY Federal Reserve and, of course, a member of the Bilderberger group who control our lives without mercy.

Even Comrade Obama agrees as he said in a speech at the University of Miami, September 23, 2008: Taxpayers should share in the stability of the market and that "we" have to have a global solution and work with the G-20 (?) to work things out. As for what McCain is thinking, one has to assume he can think; short, horrifying video. Neither Obama nor McCain plan to be in Washington, DC, for the final vote on this massive theft. The reason is obvious: So their vote can't be held against them as we head into very hard times and an insolvent government. Real leadership qualities, but then again, McCain has gone on record saying that while these bail outs are odious, they're necessary. Yes, just like a beheading to treat a migraine.

A global monetary system would finally finish off our sovereignty and for all intents and purposes our republic will be dead as we the people get fitted for our chains, little better than oxen to the yoke. Ron Paul voiced the feelings of many in his September 24, 2008 bulletin:

"Whenever a Great Bipartisan Consensus is announced, and a compliant media assures everyone that the wondrous actions of our wise leaders are being taken for our own good, you can know with absolute certainty that disaster is about to strike. The events of the past week are no exception.

"The bailout package that is about to be rammed down Congress' throat is not just economically foolish. It is downright sinister. It makes a mockery of our Constitution, which our leaders should never again bother pretending is still in effect....That describes the current bailout package to a T. And we're being told it's unavoidable.

"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!

"The issue boils down to this: do we care about freedom? Do we care about responsibility and accountability? Do we care that our government and media have been bought and paid for? Do we care that average Americans are about to be looted in order to subsidize the fattest of cats on Wall Street and in government? Do we care?

"When the chips are down, will we stand up and fight, even if it means standing up against every stripe of fashionable opinion in politics and the media? Times like these have a way of telling us what kind of a people we are, and what kind of country we shall be."

The Internet is awash with columns and articles about this final take over of our republic by the money interests. I have put together a compilation of them in one file should you wish to read them in your "spare time." It is a short chronicle of history as it unfolds; a tragedy whose consequences will plague this nation for many years to come. If Congress hasn't taken a final vote by the time you read this, get on the phone and tell them NO! For part one click below.


1 - Dirty Little Secret of the Bail Out
2 - Transfer of Power
3 - Shadow Government
4 - Speeches Ignore Debt Disaster
5 - The big fleecing

Educational Links

1 - The indictment of the Federal Reserve Congressman Louis McFadden
2 - 1923 Congressional Record; begin read in right column, "And, Why?"

No comments: