Concerned Humanity . Net
|“Permit me to issue and control
the money of a nation, and I
care not who makes its laws.”
Mayer Amschel Rothschild (Bauer)
(1743-1812), Patriarch of the
Rothschild International Banking Dynasty
The Rothschild family,
Mayer Amschel Rothschild in the centre,
surrounded by his male descendants
Lionel de Rothschild being introduced to the British House of Commons on
26 July 1858 by Lord John Russell and Mr. Abel Smith; artist: Barraud, 1872.
“I believe that banking institutions are more
dangerous to our liberties than standing armies.
Already they have raised up a monied aristocracy
that has set the government at defiance.
The issuing power should be taken from the banks and
restored to the people, to whom it properly belongs…
“If the American people ever allow private banks to
control the issue of currency, first by inflation, then by
deflation, the banks and corporations that will grow up
around them will deprive the people of all property
until their children wake up homeless on
the continent their fathers conquered.”
|“[The task is to] covertly lower the
standard of living, the whole social
structure, of America so that we can
be merged with all other nations.”
Ford Foundation President
(1953-1956) H. Rowan Gaither, Jr.,
as stated to Congressional
Investigator Norman Dodd
“The standard of living
of the average American
has to decline.”
Paul Adolf Volcker,
Former Federal Reserve
“‘Adolf’ [Paul Adolf Volcker] is the
single human alive most responsible for
inflation in the world today… He is there
to look after Rockefeller & Chase
HARRY SHULTZ LETTER,
Xebex, Box 134,
Princeton, N.J. 08540”
Source: “Goldwater Sees Elitist Sentiments
Threatening Liberties”, by U.S. Senator
Barry M. Goldwater, 1979
“The standard of living of the
average American has to decline.”
Paul Adolf Volcker, Former Chairman of the Federal Reserve
(1979-1987), past President of the Federal Reserve Bank of
New York, Member, Council on Foreign Relations and Trilateral Commission, Chairman of the investment banking firm, J.
Rothschild, Wolfensohn and Co. (2000-2004), Director of the United Nations Association of the United States of America, and Chairman
of the Board of Trustees of the Group of Thirty (since 2006)
“‘Adolf’ [Paul Adolf Volcker] is the single human alive most responsible for inflation in the world today… He is there to look after Rockefeller & Chase Manhattan interests…” ~HARRY SHULTZ LETTER, Xebex, Box 134, Princeton, NJ 08540 (From “Goldwater Sees Elitist Sentiments Threatening Liberties”, by U.S. Senator Barry M. Goldwater (1979),
“Inflation is not caused by businessmen or working men.
It is caused by increasing the money supply.
Check dictionary definition. ”
~ Sen. Barry M. Goldwater
“The surest way to overthrow
an existing social order is to
debauch the currency.” (Lenin)
[Source: H.C. Wallish, Council
on Foreign Relations (CFR)]
Vladimir Lenin, Father
of the Russian Revolution
of 1917, funded, in part, by
the Federal Reserve, which
was guided into existence
by Paul Warburg and friends in 1913
“We shall have World
Government, whether or
not you like it… by
conquest or consent.”
James Paul Warburg,
and member of the
Council on Foreign Relations (CFR),
before the United States Senate
on February 17, 1950
THE ABC’S OF THE FED
The Federal Reserve System may be one of the most fascinating long term deceptions of 20th century American history. Perhaps now as we approach the 21st century, it’s time to let the cat out of the bag.
We the people control it, right?
No, in fact, it is legally controlled by a handful of major banks which in turn are controlled by a handful of major stockholders. The presidential appointments, the Congressional hearings etc. are all a joke.
Here’s another interesting little known fact about this group that controls the U.S. currency: There has been no public audit of the organization since it was founded in 1913 though requests for such have been numerous.
From what I understand, the Fed was created so that JP Morgan could get the money back it lost on loans to the UK in the early part of this century. Ever since then, Fed policy has neatly dovetailed with the interests of the banks which control it. Bottom line: they can’t lose.
If you look into this, you are in for a shock when you learn how new money is created in this country, who benefits from its creation, and who gets stuck with all the liabilities. (Hint to the last point: it isn’t the banks.)
If you control the currency, you pretty much control the country so this stuff matters – a lot.
The depth at which this information has been buried is remarkable. It also represents an outstanding example of censorship through declaration.Anyone who even raises the subject is a crack pot (or, to use contemporary language a conspiracy theorist.)
There’s a good, quick intro to the subject here:
Many of the people who follow this have a strong interest in gold and a faith in it as an economic stabilizer. Before you dismiss such people, study the manipulation of the gold market in recent years (apparently by the U.S. Treasury and a handful of big banks). Also, it’s still a fact that gold is the *only* material that is accepted to settle debts in and between every country on earth. It’s accepted in Djakarta as readily as in Detroit, and on Wall Street as readily as in a roadless village in India.
Paper is convenient, but when the s*** hits the fan (in Germany in the 1920s, in Vietnam when the U.S. pulled out, and recently in Asia when currencies collapsed domino style), those with gold ate. Those with paper had… paper.
From Brasscheck email@example.com 2-11-2000
“When a government is dependent upon bankers
for money, they and not the leaders of the
government control the situation, since
the hand that gives is above the hand that takes…
Money has no motherland; financiers are
without patriotism and without decency;
their sole object is gain.”
Napoleon Bonaparte, 1815
HOW MUCH DO YOU KNOW ABOUT THE FEDERAL RESERVE?!
(ANSWER TRUE OR FALSE)
1. The Federal Reserve System is an Agency of the Federal Government?
2. The Fed has the exclusive authority to print and issue all U.S. currency?
3. Interest on money loaned by the Fed to its member banks is used to reduce the Federal Draft?
4. The Fed is restricted to an amount of currency it can print by a specified amount of gold held as reserves?
5. The books of the Fed are audited on an annual basis and are of public record?
6. The Fed is responsible for loan losses such as the banking debacle of the late 1980’s?
7. Although the President appoints the chairman of the Federal Reserve Board, the Chairman acts independently?
8. The Fed sets interest rates?
9. The Fed confines its monetary activities strictly to the U.S.?
10. Americans can benefit from an understanding of how the Fed works?
ANSWERS TO: TEST YOUR FED I.Q.
1. False. The Federal Reserve System was created by the Federal Reserve Act, and passed by both houses of Congress just prior to Christmas recess on December 22, 1913. Section 5 of the Act calls for a member bank to buy and hold stock in a district Federal Reserve Bank equal to 6% of its capital and surplus. For example, as of 1983, ten major New York City banks owned approximately 66% of the outstanding stock in the Federal Reserve Bank of New York. That Bank in turn owns a portion of the stock in the Federal Reserve Bank of the U.S. together with the eleven regional member banks. A review of the major stockholders of the ten New York city banks clearly shows that a few families related by blood, marriage or business interests control those 10 New York city banks, which in turn, hold the controlling stock in the Federal Reserve Bank of New York. In addition, approximately 38% of the stock of the Federal Reserve Bank of New York (as of 1983) was held by banks that are subsidiaries of foreign banks, namely the House of Rothschild which controls the Bank of England. The fact that the Federal Reserve System is controlled by private interests is one of the best kept secrets in American history.
2. False. Article 1, Sec. 8 of the U.S. Constitution provides that “The Congress shall have power to borrow money on the credit of the United States…and to coin money, regulate the value thereof, and of foreign coin, and fix the Standard of Weights and Measures.” According to the National Recovery Act (NRA) decision in the 1930’s, Congress can not delegate the power to coin money to the Federal Reserve System. However, during the great depression and during Franklin D. Roosevelt’s first term as President, the U.S. went off the gold standard and gold and silver Treasury Certificates were gradually replaced by Federal Reserve Notes Which are “coined” by the Fed in violation of the Constitution.
3. False. Prior to 1933, the Federal Reserve Act required that a portion of the earnings of the Federal Reserve Banks go to the government, but the banks never complied. The Banking Act of 1933 legislated that all earnings of the Federal Reserve Banks go to the banks themselves. The assets of the Federal Reserve Banks increased from $143 million dollars in 1913 to $45 billion dollars in 1949, which enriched all of the shareholders of the banks. There is no evidence that the law or the method of accounting of earnings has changed since 1949.
4. False. The Fed has no restriction on the amount of money it can create since the U.S. went off the gold standard in the 1930’s. As Congressman Wright Patman said in 1964, The dollar represents a one dollar debt to the Federal Reserve System. The Federal Reserve Banks create money out of thin air to buy Government Bonds from the U.S. Treasury…and has created out of nothing a ….debt which the American people are obliged to pay with interest. In 1958 the U.S. owned $700 million ounces of gold. Today the nations bullion reserves have dwindled to a mere 281,000,000 ounces ($100 billion dollars) which is minuscule in relationship to the amount of paper currency in circulation and the amount of Treasury debt. The goal of the Fed is to make gold irrelevant as a measure of monetary value so it can continue to print an unlimited amount of paper currency.
5. False. Despite numerous attempts by Congressman Wright Patman and others who have called for an audit of the books of the Federal Reserve System, no audit has been made available to the public since the System was founded in 1913. On March 1, 1982, the Arizona State Legislature, as well as a number of other states passed a resolution calling for the abolishment of the Federal Reserve System. All efforts to expose and change the System have been thwarted.
6. False. Easy, Fed monetary policy in the late 1970’s led to double digit inflation and a prime rate that eventually reached 21.5% in 1981. This caused the collapse of the Savings and Loan Industry. Congress, accommodating the banking lobby, passed the Garn-St Germain Act to bail out the Savings and Loans. Stimulated by a rush of new money created by the Fed, attractive real estate tax laws, and the authority to directly invest in real estate deals, the Savings and Loans quickly created a speculative bubble of overvalued real estate. By 1990 the massive amount of bad real estate loans caused a banking crisis. The Resolution Trust Corp. was formed to market foreclosed real estate, and the biggest write down of real estate assets since the Great Depression began. Thus, in a period of 12 years, the Fed was obliged to bail out both the Savings and Loan and the banking industries as a direct result of its own monetary policy. Incredibly, the losses were absorbed, not by the Fed, but by the taxpayers and the shareholders of the local institutions that collapsed. Millions of Americans went bankrupt in the early 1990’s and to this day don’t understand what happened.
7. False. The history of the Federal Reserve System in the U.S. is a study of money and power and its ability to determine world events. A small group of elitists, their successors and assigns have been able to influence public opinion through control of the media, elect or discharge Presidents and politicians, make wars and cause economic booms and busts. Neither the President of the U.S., nor the Chairman of The Federal Reserve Board act independently. They both hold office at the discretion of those who control the Federal Reserve System and those wealthy elitists who are intent on establishing a New World order. Alan Greenspan said in 1966, The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit.
Greenspan’s view changed dramatically after he became a director of J.P. Morgan and Co. and later the Fed Chairman.
8. False. The markets and the demand for money ultimately determine interest rates. The fed sets in the Discount Rate (the rate at which member banks borrow from the Fed) and the Fed Funds Rate. (the rate which banks charge each other on overnight funds) Both of these rates are short-term interest rates. At present the Fed is increasing these rates while at the same time maintaining that inflation is only 2.6% and not a problem. Low rates and an increase in the money supply have fueled a “speculative bubble” in the stock market. Additional increases in rates could slow the economy and cause a market crash. The Fed has found itself again in a dilemma which it created.
9. False. The fed has acted directly as bank of last resort. Normally, loans to other countries would be made by the International Monetary Fund, the Bank of International Settlements or other entities which are primarily funded by the Fed. In the case of Mexico, however, the Fed made a loan directly to that country after the President by-passed Congress and issued an Executive Order. Reliable sources indicate that the Fed has recently delivered approximately $40 billion newly printed $100 bills to Russian banks which are controlled by the Russian Mafia. Since 1940 the U.S. dollar has lost 94% of its value. The prolific printing of our currency, the mounting $5.3 trillion in Federal Debt and the widening trade deficit could soon result in the crash of the U.S. dollar and disastrous ramifications for Americans.
10. True. 66% of the Gross Domestic Product (GDP) in the U.S. is consumer spending, and the spending habits of the American people are greatly influenced by the cost of money. Understanding an overview of how the Fed works and anticipating a major shift in monetary policy can be extremely critical for a business person as well as an investor. The bottom line question is: Whose interest does the Federal Reserve serve? The bankers or the people? Now you know the answer to that question.
SOURCE: Secrets of the Federal Reserve by Eustace Mullins. http://www.rense.com/politics6/fedres.htm, submitted by Byron Weeks.
SECRETS OF THE FEDERAL RESERVE By Eustace Mullins
[One document] SECRETS OF THE FEDERAL RESERVE By Eustace Mullins
Chapter One Jekyll Island
Chapter Two The Aldrich Plan
Chapter Three The Federal Reserve Act
Chapter Four The Federal Advisory Council
Chapter Five The House of Rothschild
Chapter Six The London Connection
Chapter Seven The Hitler Connection
Chapter Eight World War One
Chapter Nine The Agricultural Depression
Chapter Ten The Money Creators
Chapter Eleven Lord Montagu Norman
Chapter Twelve The Great Depression
Chapter Thirteen The 1930’s
Chapter Fourteen Congressional Expose
Questions and Answers
Other books and articles by Eustace Mullins:
[May 8, 2004] A Recent Visit with Eustace Mullins—James Dyer
[Interview 2003] by James Dyer
[Interview 2003] by Tom Valentine
The $5 Trillion Cold War Hoax by Eustace Mullins
The Rockefeller Syndicate by Eustace Mullins
The Secret History Of The Atomic Bomb by Eustace C. Mullins
Phony Wars for Phony Peace and the Ministry of Fear by Eustace Mullins
Murder by Injection – Eustice Mullins 25mb.MP3 [Whale Archive: Murder by Injection – Eustice Mullins 25mb.MP3
The Curse Of Canaan: A Demonology Of History by Eustace Mullins
Murder By Injection: The Story Of The Medical Conspiracy Against America by Eustace Mullins
Rape Of Justice America’s Tribunals Exposed by Eustace Mullins
Secrets Of The Federal Reserve by Eustace Mullins
The World Order Our Secret Ruler by Eustace Mullins
Education for Slavery by Eustace Mullins
The Rape of Justice by Eustace Mullins
My Life in Christ,
This Difficult Individual Ezra Pound
126 Madison Place
Staunton, Va. 24401
Rare and revealing 1990’s audio recording of a presentation made by G. Edward Griffin,
author of The Creature from Jekyll Island: A Second Look at the Federal Reserve.
Click here to Get RealPlayer – Free
A Short Road to Chaos And Destruction: An Expose of the Federal Reserve Banking System,
The One World Monetary Cabal by Gunther Russbacher: http://rumormillnews.com/fedres.htm
Chart of who owns the Federal Reserve: Federal Reserve Directors:
A Study of Corporate and Banking Influence (see organizational chart):
The Federal Reserve is PRIVATELY OWNED:
America’s Constitutional Dictatorship (First published in July 1996 by the North Bridge News.):
Editorial Review of “Masters of the Universe: The Secret Birth of the Federal Reserve”
(Conspiracy, The Secret History, Vol. 1), VHS (2000): Was there a takeover of the
United States by international bankers? In this program you will visit the scene of a
crime so perfect that, for thirty years, no one knew it had even taken place. Join us
as we investigate the birth of a criminal conspiracy to rob each and every bank vault
in America, all at the same time. This is the true, behind the scenes story of the birth
of the United States Federal Reserve.
Rep. Ron Paul (R-TX) introduces bill to abolish Federal Reserve:
PROJECT HAMMER RELOADED
Part 1 of 2: http://www.nexusmagazine.com/articles/projecthammer1.html
Riches looted by the Nazis and Japanese during WWII and recovered by the United States OSS and CIA have been used to finance secret government projects over the decades and save major banks from insolvency.
Part 2 of 2: http://www.nexusmagazine.com/articles/projecthammer2.html
A web of intrigue connects a diverse collective of players who have conducted and benefited from secret collateral trading programmes which also have covert funding purposes.
“The real truth of the matter is,
as you and I know, that a
financial element in the
large centers has owned the government ever since the
days of Andrew Jackson.”
The Rise of The Fourth Reich,
Jim Marrs, p 257.
Former U.S. War
“The ruling class has
the schools and press
under its thumb.
This enables it to
sway the emotions
of the masses.”
“The real rulers in
invisible and exercise
their power from
behind the scenes.”
U.S. Supreme Court
Justice Felix Frankfurter
Frankfurter played convenient covert
courier for messages passed between
Illuminati Council on Foreign Relations
and Federal Reserve Bank mastermind
Col. Edward Mandell House in
Massachusetts and President Franklin D.
Roosevelt in Washington, D.C.
|A few years after Woodrow Wilson signed the Federal Reserve Act, he wrote:
“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world, no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”
Woodrow Wilson (1856-1924)
|After passage of the National Banking Act of 1863, Lincoln wrote:
“The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies, all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the Bankers in the rear. Of the two, the one at my rear is my greatest foe… Corporations have been enthroned and an era of corruption in high places will follow, and the money powers of the country will endeavor to prolong its reign by working upon the prejudices of the people until the wealth is aggregated in the hands of a few, and the Republic is destroyed.“
Abraham Lincoln (1809-1865)
Bailout Betrayal – The
Death Of Democracy
By William Cox
|On October 3, 2008, the American people were betrayed by those whom they had elected to represent them. The members of Congress who voted for the Wall Street “bailout” violated their oath of office to “support and defend the Constitution” … “that I will bear true faith and allegiance to the same” … “and that I will well and faithfully discharge the duties of the office on which I am about to enter: …”
Without holding any meaningful hearings or public discussions and listening only to those most responsible for the economic disaster, Federal Reserve Board Chairman Ben Bernanke and Treasury Secretary Henry Paulson, Congress abdicated its responsibility to the American people.
Locking out most members from all discussions, the congressional “leadership” emerged from their backrooms with legislation that grants Secretary Paulson the ability to spend at least $700 billion to “take such actions as [he] deems necessary” … ” to promote financial market stability.”
Entrusting tremendous political and financial power (and a ton of borrowed money that taxpayers will have to repay with interest) into Paulson’s sole discretion, members of Congress must have been aware that, prior to his cabinet appointment in 2006, Paulson worked for 32 years at Goldman Sachs, one of the Wall Street firms that stands to benefit greatly from his “actions.”
Paulson, who cashed out his Goldman stock valued at $575 million to become the Secretary of Treasury (without having to pay any taxes on the sale), earned more than $53 million in pocket change during just his last two years at Goldman Sachs for innovations such as a new line of “Mortgage Backed Securities.” Gambling more than a trillion dollars on risky subprime second mortgages, Paulson cleverly converted them into AAA-rated “secure” investments by purchasing guarantees from the American International Group.
AIG, coincidentally, was just “bailed out” two weeks ago by Secretary Paulson for $85 billion (of borrowed money that taxpayers will have to repay with interest), averting a devastating loss by Goldman Sachs, who was holding more than $20 billion in otherwise worthless second mortgages.
Is it surprising that Lloyd Blankfein, Goldman’s current CEO, was present with Paulson when the decision was made to bailout AIG?
The bailout’s $700 billion price tag is only an arbitrary guess by Paulson and is most likely just the first installment of many more to come. Other economists, with more successful track records, believe the total will be much greater, perhaps $5 trillion, as concealed losses are uncovered and foreign companies dump their toxic investment waste into their American offices.
In passing the “Emergency Economic Stabilization Act of 2008,” Congress ignored the “great concern” expressed by almost two hundred of the nation’s leading economists who pleaded with Congress “not to rush, to hold appropriate hearings, and to carefully consider the right course of action,…” In addition to its ambiguity and long-term effects, the economists believed the bailout plan to be “a subsidy to investors at taxpayers’ expense” and to be “desperately short-sighted.” Ultimately, more than 400 top economists, including two Nobel Prize winners, voiced opposition to the bailout.
The economists were not alone in being ignored by the politicians. It is widely reported that calls and emails to Congress from constituents were running as high as 300 to one against the bailout. Mike Whitney reports one analyst saying that “the calls to Congress are 50 percent ‘No’ and 50 percent ‘Hell, No’.” The percentages adjusted as the stock market tumbled, but public opposition to the bailout remains strong.
An AP poll only identified 30 percent of the public in favor of the bailout, and a CNN Money opinion poll found 77 percent of the people believing the bailout would benefit those most responsible for the economic downturn.
The Latin adage, Cui bono, asks “to whose death are you going?” Law enforcement investigators quickly learn that the guilty party can usually be found among those who stand to gain from a murder or other crime.
There is no doubt the bailout will most benefit some of the richest and highest paid individuals in the American economy. But, why did the politicians betray the wishes of those who elected them in favor of the criminals who committed the fraud? Perhaps the answer can be found in another Latin phrase, quid pro quo, meaning “what for what; something for something.”
Individuals working for Wall Street finance, insurance and real estate companies and the companies’ political action committees have contributed more than $47 million to the campaigns of Senator Obama (three of top five sources) and Senator McCain (top five sources), both of whom voted for the bailout.
More to the point, Wall Street has contributed more than $1.1 billion dollars to congressional candidates since 2002. Nine of the top ten House recipients of Wall Street largesse, who each received an average of $1.5 million, are on the financial oversight and taxation committees.
Even more telling, the bipartisan Congressional “leaders” most responsible for pushing the bailout through Congress, Senators Dodd and Gregg and Representatives Frank and Blunt have taken almost $20 million from Wall Street sources during the last 20 years. Dodd recently received $6 million in contributions during his presidential primary campaign, and Frank has collected $720,000 this year.
Other key players also have been well compensated this year: Congressman Kanjorski received $755,000 and Congressman Bachus banked $704,000.
The ordinary, hard-working voters, who were opposed to the bailout, and their children and grandchildren, will be the ones who will ultimately have to repay, with compound interest, the money that will have to be borrowed to give away to Wall Street bankers.
The bailout was “sweetened” in the Senate by another $110 billion in tax relief and renewable energy incentives to get enough House votes for passage; however, only the temporary one-year slowdown of the Alternative Minimum Tax offered any succor to the middle-class workers affected by it.
The bailout raises the debt ceiling to $11.3 trillion, or about $37,524 for each man, woman and child in the United States. How is this burden ever going to be repaid? Workers already know their wages are falling, their jobs are at risk, their health care, food and fuel costs are skyrocketing, and they are being kicked out of their apartments and homes because they can’t pay the rents and mortgages.
Didn’t each member of Congress have a sworn duty to rescue the millions of Americans suffering from the reckless gambling of Wall Street moguls, rather than to reward an obscene excess of greed?
At least six million homeowners will probably default on their mortgages this year and next, and millions more will have their equity wiped out by declining property values. More than 770,000 homes have been seized by lenders since 2007, and 91,000 families were just kicked out of their homes in August.
These American homeowners were betrayed by their elected representatives!
The only provision in the bailout legislation to remotely “benefit” homeowners whose homes are being foreclosed upon only “encourages” mortgage service companies to modify mortgages. Paulson is required to “maximize assistance for homeowners … and minimize foreclosures”; however, he also has to ensure that the government doesn’t incur any additional costs. Thus, there’s little or no hope of any meaningful benefit to distressed homeowners resulting from the bailout.
The legislation could have required the government to directly purchase the defaulting mortgages and to adjust them to the reduced value of the property, as was done in the Great Depression. Instead, Paulson is authorized to purchase the complex derivatives (Wall Street’s gambling debts) piled on top of the original mortgages. The difference is whether homeowners or Wall Street receives the benefit of the bailout.
More than 4,476 Americans filed for bankruptcy every day during August, the highest number since changes in the law in 2005 made it much more difficult, and even impossible in many cases, to obtain debt relief. More than a million, increasingly elderly, people will petition for bankruptcy this year.
These destitute Americans were betrayed by their elected representatives!
Under the current law, bankruptcy judges do not have the power to modify mortgages of a petitioner’s primary residence, irrespective of how the mortgages have been sliced, diced and repackaged. The bailout could have provided judges with the authority, in appropriate cases, to adjust the amount secured by the mortgage to the value of the property and to adjust the interest rate to a reasonable percentage.
New claims for unemployment benefits rose to 493,000 last week, the highest level in seven years. The economy has already lost 605,000 jobs thus far this year, and it dumped 159,000 payroll jobs just during September, the greatest drop in five years.
These unemployed Americans were betrayed by their elected representatives!
Although the House of Representatives passed an economic stimulus bill that would fund job creation and extent jobless benefits for long-term unemployed workers on September 26th, the Senate failed to pass its own stimulus bill on the same day. President Bush has promised to veto the legislation if passed.
The bailout legislation could have provided for an extension of jobless benefits, but it didn’t.
More than 750,000 and as many as a million Americans are homeless today, and the numbers are increasing dramatically. The National Coalition for the Homeless reports that homelessness is growing because of foreclosures, loss of jobs, and the rising price of fuel and food.
These homeless Americans were betrayed by their elected representatives!
Homeless sites are appearing all across the country as people with no place to stay are pitching tents and huddling together for support and protection. Their plight did not receive any consideration by the Congressional leadership that rammed the bailout through Congress.
The most recent report by the Department of Agriculture found that in 2006, 35.5 million Americans lived in households with insecure food supplies and the numbers were increasing. At risk children numbered more than 12.6 million, and African Americans and Hispanic Americans suffered at higher rates than the national average.
In 2006, 9.6 million Americans had to frequently skip meals or eat too little, and often had to go without food for a whole day. Today, as members of Congress voted to reward the richest and most greedy members of our society, they ignored those without the most basic necessity for survival. This morning, they rewarded the most powerful and best-fed members of our society, and gave no thought to the helpless children who will go to bed hungry tonight.
Food banks who serve as the last resort for the hungry are running out of food. They are having to reduce rations and to dip into emergency supplies of staple items. There are reports of a 40 percent increase in requests for food assistance and a 30 percent drop in supplies.
These hungry Americans were betrayed by their elected representatives!
The bailout could have increased the amount of federal assistance for food banks in the Emergency Food Assistance Program, but it didn’t.
The real estate bubble that has been driving the United States economy has now popped, and there is no replacement engine to transport America’s consumer society down the highway to happiness. Americans are facing the mother of all depressions; it will be hard and it will last a long time. What are all of these homeless, hopeless, and hungry people going to do?
Many have already exercised their First Amendment right to petition their government for the redress of grievances. A majority of the members of Congress, the two presidential candidates, and the President paid no attention to the economic experts and the thousands and thousands of voters who protested the bailout and who begged them to rescue the people rather than the rich and powerful.
The people can always take to the streets in protest, and they probably will do so in growing numbers as the economic circumstances become more harsh.
The U.S. government is already planning for the eventuality – not with the helping hand of supplemental legislation to help with mortgages, jobs, shelter or food, but with the mailed fist of military suppression. The Army Times reports the current deployment within the United States “homeland” of an “on-call federal response force for natural or manmade emergencies or disasters, including terrorist attacks.” The Army acknowledges that the Northern Command may call upon the 3rd Infantry Division’s 1st Brigade Combat Team to help with “civil unrest and crowd control.”
With almost a trillion dollars picked from their pockets to reimburse reckless Wall Street gamblers, many Americans righteously feel betrayed tonight. A majority will elect a new president one month from tomorrow, and most will wait to see who it will be, and what if anything he can or will do to alleviate their suffering.
There are others, undoubtedly, who agree with the Supreme Court’s recent decision that the Second Amendment right to bear arms is individually held, and who believe that the use of their personal weapons is justified to overthrow a government that betrays them and which destroys their very means of existence. The right of legitimate self defense is recognized by every criminal law in America.
Perhaps democracy in the United States is not dead; if not, it’s on its deathbed. Resuscitation in the form of responsible representation is possible, but time is growing short.
William John Cox is a retired supervising prosecutor for the State Bar of California. As a police officer he wrote the Policy Manual of the Los Angeles Police Department and the Role of the Police in America for a national advisory commission. Acting as a public interest, pro bono lawyer, he filed a class action lawsuit in 1979 on behalf of every citizen of the United States petitioning the Supreme Court to order the other two branches of the federal government to conduct a National Policy Referendum; he investigated and successfully sued a group of radical right-wing organizations in 1981 that denied the Holocaust; and he arranged in 1991 for publication of the suppressed Dead Sea Scrolls.
His 2004 book, You’re Not Stupid! Get the Truth: A Brief on the Bush Presidency is reviewed athttp://www.yourenotstupid.com, and he is currently working on a fact-based fictional political philosophy. His writings are collected at http://www.thevoters.org, and he can be contacted at firstname.lastname@example.org.
Former Attorney General
and Governor of New
York, Eliot L. Spitzer
Eliot’s Mess and the $200 Billion Bailout
The $200 billion bail-out for predator banks and Spitzer charges are intimately linked By Greg Palast
Reporting for Air America Radio’s Clout Listen to Palast on Clout at www.GregPalast.com
Fri, 14 Mar 2008
Greg Palast <email@example.com>
While New York Governor Eliot Spitzer was paying an ‘escort’ $4,300 in a hotel room in Washington, just down the road, George Bush’s new Federal Reserve Board Chairman, Ben Bernanke, was secretly handing over $200 billion in a tryst with mortgage bank industry speculators.
Both acts were wanton, wicked and lewd. But there’s a BIG difference. The Governor was using his own checkbook. Bush’s man Bernanke was using ours.
This week, Bernanke’s Fed, for the first time in its history, loaned a selected coterie of banks one-fifth of a trillion dollars to guarantee these banks’ mortgage-backed junk bonds. The deluge of public loot was an eye-popping windfall to the very banking predators who have brought two million families to the brink of foreclosure.
Up until Wednesday, there was one single, lonely politician who stood in the way of this creepy little assignation at the bankers’ bordello: Eliot Spitzer.
Who are they kidding? Spitzer’s lynching and the bankers’ enriching are intimately tied.
How? Follow the money.
The press has swallowed Wall Street’s line that millions of US families are about to lose their homes because they bought homes they couldn’t afford or took loans too big for their wallets. Ba-LON-ey. That’s blaming the victim.
Here’s what happened. Since the Bush regime came to power, a new species of loan became the norm, the ‘sub-prime’ mortgage and it’s variants including loans with teeny “introductory” interest rates. From out of nowhere, a company called ‘Countrywide’ became America’s top mortgage lender, accounting for one in five home loans, a large chuck of these ‘sub-prime.’
Here’s how it worked: The Grinning Family, with US average household income, gets a $200,000 mortgage at 4% for two years. Their $955 a month payment is 25% of their income. No problem. Their banker promises them a new mortgage, again at the cheap rate, in two years. But in two years, the promise ain’t worth a can of spam and the Grinnings are told to scram – because their house is now worth less than the mortgage. Now, the mortgage hits 9% or $1,609 plus fees to recover the “discount” they had for two years. Suddenly, payments equal 42% to 50% of pre-tax income. Grinnings move into their Toyota.
Now, what kind of American is ‘sub-prime.’ Guess. No peeking. Here’s a hint: 73% of HIGH INCOME Black and Hispanic borrowers were given sub-prime loans versus 17% of similar-income Whites. Dark-skinned borrowers aren’t stupid – they had no choice. They were ‘steered’ as it’s called in the mortgage sharking business.
‘Steering,’ sub-prime loans with usurious kickers, fake inducements to over-borrow, called ‘fraudulent conveyance’ or ‘predatory lending’ under US law, were almost completely forbidden in the olden days (Clinton Administration and earlier) by federal regulators and state laws as nothing more than fancy loan-sharking.
But when the Bush regime took over, Countrywide and its banking brethren were told to party hardy – it was OK now to steer’m, fake’m, charge’m and take’m.
But there was this annoying party-pooper. The Attorney General of New York, Eliot Spitzer, who sued these guys to a fare-thee-well. Or tried to.
Instead of regulating the banks that had run amok, Bush’s regulators went on the warpath against Spitzer and states attempting to stop predatory practices. Making an unprecedented use of the legal power of “federal pre-emption,” Bush-bots ordered the states to NOT enforce their consumer protection laws.
Indeed, the feds actually filed a lawsuit to block Spitzer’s investigation of ugly racial mortgage steering. Bush’s banking buddies were especially steamed that Spitzer hammered bank practices across the nation using New York State laws.
Spitzer not only took on Countrywide, he took on their predatory enablers in the investment banking community. Behind Countrywide was the Mother Shark, its funder and now owner, Bank of America. Others joined the sharkfest: Goldman Sachs, Merrill Lynch and Citigroup’s Citibank made mortgage usury their major profit centers. They did this through a bit of financial legerdemain called “securitization.”
What that means is that they took a bunch of junk mortgages, like the Grinnings, loans about to go down the toilet and re-packaged them into “tranches” of bonds which were stamped “AAA” – top grade – by bond rating agencies. These gold-painted turds were sold as sparkling safe investments to US school district pension funds and town governments in Finland (really).
When the housing bubble burst and the paint flaked off, investors were left with the poop and the bankers were left with bonuses. Countrywide’s top man, Angelo Mozilo, will ‘earn’ a $77 million buy-out bonus this year on top of the $656 million – over half a billion dollars – he pulled in from 1998 through 2007.
But there were rumblings that the party would soon be over. Angry regulators, burned investors and the weight of millions of homes about to be boarded up were causing the sharks to sink. Countrywide’s stock was down 50%, and Citigroup was off 38%, not pleasing to the Gulf sheiks who now control its biggest share blocks.
Then, on Wednesday of this week, the unthinkable happened. Carlyle Capital went bankrupt. Who? That’s Carlyle as in Carlyle Group. James Baker, Senior Counsel. Notable partners, former and past: George Bush, the Bin Laden family and more dictators, potentates, pirates and presidents than you can count.
The Fed had to act. Bernanke opened the vault and dumped $200 billion on the poor little suffering bankers. They got the public treasure – and got to keep the Grinning’s house. There was no ‘quid’ of a foreclosure moratorium for the ‘pro quo’ of public bail-out. Not one family was saved – but not one banker was left behind.
Every mortgage sharking operation shot up in value. Mozilo’s Countrywide stock rose 17% in one day. The Citi sheiks saw their company’s stock rise $10 billion in an afternoon.
And that very same day the bail-out was decided – what a coinkydink! – the man called, ‘The Sheriff of Wall Street’ was cuffed. Spitzer was silenced.
Do I believe the banks called Justice and said, “Take him down today!” Naw, that’s not how the system works. But the big players knew that unless Spitzer was taken out, he would create enough ruckus to spoil the party. Headlines in the financial press – one was “Wall Street Declares War on Spitzer” – made clear to Bush’s enforcers at Justice who their number one target should be. And it wasn’t Bin Laden.
It was the night of February 13 when Spitzer made the bone-headed choice to order take-out in his Washington Hotel room. He had just finished signing these words for the Washington Post about predatory loans:
“Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which he federal government was turning a blind eye.”
Bush, said Spitzer right in the headline, was the “Predator Lenders’ Partner in Crime.” The President, said Spitzer, was a fugitive from justice. And Spitzer was in Washington to launch a campaign to take on the Bush regime and the biggest financial powers on the planet.
Spitzer wrote, “When history tells the story of the subprime lending crisis and recounts its devastating effects on the lives of so many innocent homeowners the Bush administration will not be judged favorably.”
But now, the Administration can rest assured that this love story – of Bush and his bankers – will not be told by history at all – now that the Sheriff of Wall Street has fallen on his own gun.
A note on “Prosecutorial Indiscretion.”
Back in the day when I was an investigator of racketeers for government, the federal prosecutor I was assisting was deciding whether to launch a case based on his negotiations for airtime with 60 Minutes. I’m not allowed to tell you the prosecutor’s name, but I want to mention he was recently seen shouting, “Florida is Rudi country! Florida is Rudi country!”
Not all crimes lead to federal bust or even public exposure. It’s up to something called “prosecutorial discretion.”
Funny thing, this ‘discretion.’ For example, Senator David Vitter, Republican of Louisiana, paid Washington DC prostitutes to put him diapers (ewww!), yet the Senator was not exposed by the US prosecutors busting the pimp-ring that pampered him.
Naming and shaming and ruining Spitzer – rarely done in these cases – was made at the ‘discretion’ of Bush’s Justice Department. Or maybe we should say, ‘indiscretion.’
Greg Palast, former investigator of financial fraud, is the author of the New York Times bestsellers Armed Madhouseand The Best Democracy Money Can Buy.
Armed Madhouse by Greg Palast
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Cartoon of Andrew Jackson fighting the Monster Bank
“If the people only understood the rank injustice of our money
and banking system, there would be a revolution before morning.”