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Archive for the ‘US banking system’ Category

Turns out over 50 billion of the 173 Billion give to AIG has been paid to at least 2 dozen American and FOREIGN financial institutions.

The U.S. Federal Reserve has refused to publicize a list of AIG’s derivative counterparties and what they have been paid since the bailout, riling the U.S. Senate Banking Committee.

http://news.yahoo.com/s/nm/20090308/bs_nm/us_aig

Our tax doll,ars have been used to prop up the world, why not the bankers who sold US out? Unfortunately it doesn’t matter if you’re happy or outraged. You bounce a 5$ check and pay a 36$ fee, late one day and you pay a late fee while your interest rate goes up, savings goes under 10$ you pay a fee. Can’t play beat the bank by writting a check anymore because of electronic deposit, they can take what they want because of direct deposit and they know you better than you know yourself from your spending history.
When these banks told corporations to go to China and build, when NAFTA sent our auto and textile work south they forgot that all those good paying jobs were needed so that Americans could pay their bills. Oops! So now we bail out the Banks with no jobs, no savings, no retirement, no home and a national debt of 10 trillion. Nothing for Nothing leaves nothing so it will be interesting to see what gets propped up. I think they’ll get what they gave but I can’t use those words.

Could several similtaneous large bank and/or market failures precipitate a cascade of disasters that would exceed the power of the government to deal with?

I personally dont think so. if you look at alot of the united states right now the economy is prospering. there are major banks and firms who got too big and are buckling. but in the end i see nothing but good. if things continue the way they are now we will walk the thin line, but continue to grow. remember, we may think we are in a craphole position, but, we are allot better off then almost all the world.

but remember, it can all change in just a few hours……

Could several similtaneous failures precipitate a cascade of bank and market disasters that not even federal intervention could help?

What we are experiencing is an "economic adjustment" because of the large bad debt write-off from the banks which was caused by the excessive loaning of money during a low interest period to people who should have never been given loans. Also, the price inflation in gasoline and other commodities that are shipped and products made from oil is causing some people to default on mortgages because they don’t have the income to pay all of their bills or they get laid off. If enough of the population loses faith in the stock market and they sell off their stocks, then the prices will fall and the market could crash. However, the economic value of these companies still remains and people who hang onto their stocks or buy during the down-turn will probably come out on top. So, the market will not crash totally like it did in the Great Depression because there are better checks and balances in place like SEC regs and auditing standards that did not exist at that time. The economy will seek to find it’s own equalibrium that no government intervention can prevent. A downturn may be just an adjustment to the conditions that should have prevailed all along given the amount of resources the country is wasting on the war. So, we just have to ride the storm out.

the invasion upon Iraq was unconstitutional. Now there is further resentment because the US banking system was not monitored, became corrupt and caused the economic disaster under his regime.

Are they delusional in blaming him or should they place the blame elsewhere?

What is delusional is reading about nutjobs blaming everyone else but the guy(s) in charge. That surely must be the height of extremist, irrational thinking.

That has been the pattern of behaviour throughout Bush’s term in office. – Blame the liberals, blame the socialists, blame the poor, blame other countries, – for the economy, suffocating civil liberty, for the illegal wars, for government and corporate fraud, inability to finish audits, and for the disdain and utter disbelief by other nations who cannot believe the amount of ignorant hatred that spews forth from the mouths of Americans.

Why not blame the guy in charge? The guy who signed and implemented over 200 executive orders which made America what it is today: A ________ (deleted expletive describing the back passage as a place of residence)

part of the US Government? Or a private banking system?

I know the answer. Wondering how many of you do. If you do not maybe you should look into the situation.
Scary indeed.
Conspiracy Brother- Yeah executive order 11110 was signed into law by Kennedy. He wanted to use silver to back our Dollars. He died. A coincidence? Maybe.

On May 23, 1933, Congressman, Louis T. McFadden,
brought formal charges against the Board of Governors of the Federal Reserve Bank system, The Comptroller of the Currency and the Secretary of United States Treasury for numerous criminal acts, including but not limited to, conspiracy, fraud, unlawful conversion, and treason. The petition for Articles of Impeachment was thereafter referred to the Judiciary Committee and has yet to be acted on.

——————————————————————————–

Congressman McFadden’s Speech
On the Federal Reserve Corporation

Quotations from several speeches made on the Floor of the House of Representatives by the Honorable Louis T. McFadden of Pennsylvania. Mr. McFadden, due to his having served as Chairman of the Banking and Currency Committee for more than 10 years, was the best posted man on these matters in America and was in a position to speak with authority of the vast ramifications of this gigantic private credit monopoly. As Representative of a State which was among the first to declare its freedom from foreign money tyrants it is fitting that Pennsylvania, the cradle of liberty, be again given the credit for producing a son that was not afraid to hurl defiance in the face of the money-bund. Whereas Mr. McFadden was elected to the high office on both the Democratic and Republican tickets, there can be no accusation of partisanship lodged against him. Because these speeches are set out in full in the Congressional Record, they carry weight that no amount of condemnation on the part of private individuals could hope to carry.

The Federal Reserve – A Corrupt Institution

"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.

"Some people who think that the Federal Reserve Banks United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lender. In that dark crew of financial pirates there are those who would cut a man’s throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.

"These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky’s passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a large fund of American dollars at Trotsky’s disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun breaking up of American homes and the dispersal of American children. "Mr. Chairman, there should be no partisanship in matters concerning banking and currency affairs in this Country, and I do not speak with any.

"In 1912 the National Monetary Association, under the chairmanship of the late Senator Nelson W. Aldrich, made a report and presented a vicious bill called the National Reserve Association bill. This bill is usually spoken of as the Aldrich bill. Senator Aldrich did not write the Aldrich bill. He was the tool, if not the accomplice, of the European bankers who for nearly twenty years had been scheming to set up a central bank in this Country and who in 1912 has spent and were continuing to spend vast sums of money to accomplish their purpose.

"We were opposed to the Aldrich plan for a central bank. The men who rule the Democratic Party then promised the people that if they were returned to power there would be no central bank established here while they held the reigns of government. Thirteen months later that promise was broken, and the Wilson administration, under the tutelage of those sinister Wall Street figures who stood behind Colonel House, established here in our free Country the worm-eaten monarchical institution of the "King’s Bank" to control us from the top downward, and from the cradle to the grave.

"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 sought to save us.

President Jackson’s Time

"One of the greatest battles for the preservation of this Republic was fought out here in Jackson’s time; when the second Bank of the United States, founded on the same false principles of those which are here exemplified in the Fed was hurled out of existence. After that, in 1837, the Country was warned against the dangers that might ensue if the predatory interests after being cast out should come back in disguise and unite themselves to the Executive and through him acquire control of the Government. That is what the predatory interests did when they came back in the livery of hypocrisy and under false pretenses obtained the passage of the Fed.

"The danger that the Country was warned against came upon us and is shown in the long train of horrors attendant upon the affairs of the traitorous and dishonest Fed. Look around you when you leave this Chamber and you will see evidences of it in all sides. This is an era of misery and for the conditions that caused that misery, the Fed are fully liable. This is an era of financed crime and in the financing of crime the Fed does not play the part of a disinterested spectator.

"It has been said that the draughtsman who was employed to write the text of the Aldrich bill because that had been drawn up by lawyers, by acceptance bankers of European origin in New York. It was a copy, in general a translation of the statues of the Reichsbank and other European central banks. One-half million dollars was spent on the part of the propaganda organized by these bankers for the purpose of misleading public opinion and giving Congress the impression that there was an overwhelming popular demand for it and the kind of currency that goes with it, namely, an asset currency based on human debts and obligations. Dr. H. Parker Willis had been employed by Wall Street and propagandists, and when the Aldrich measure failed- he obtained employment with Carter Glass, to assist in drawing the banking bill for the Wilson administration. He appropriated the text of the Aldrich bill. There is no secret about it. The test of the Federal Reserve Act was tainted from the first.

"A few days before the bill came to a vote, Senator Henry Cabot Lodge, of Massachusetts, wrote to Senator John W. Weeks as follows:

New York City,
December 17, 1913

"’My Dear Senator Weeks:

"’Throughout my public life I have supported all measures designed to take the Government out of the banking business. This bill puts the Government into the banking business as never before in our history. "’The powers vested in the Federal Reserve Board seen to me highly dangerous especially where there is political control of the Board. I should be sorry to hold stock in a bank subject to such dominations. The bill as it stands seems to me to open the way to a vast inflation of the currency. "’I had hoped to support this bill, but I cannot vote for it cause it seems to me to contain features and to rest upon principles in the highest degree menacing to our prosperity, to stability in business, and to the general welfare of the people of the United States.

Very Truly Yours,
Henry Cabot Lodge.’"

"In eighteen years that have passed since Senator Lodge wrote that letter of warning all of his predictions have come true. The Government is in the banking business as never before. Against its will it has been made the backer of horse thieves and card sharps, bootlegger’s smugglers, speculators, and swindlers in all parts of the world. Through the Fed the riffraff of every country is operating on the public credit of the United States Government.

The Great Depression

"Meanwhile and on account of it, we ourselves are in the midst of the greatest depression we have ever known. From the Atlantic to the Pacific, our Country has been ravaged and laid waste by the evil practices of the Fed and the interests which control them. At no time in our history, has the general welfare of the people been at a lower level or the minds of the people so full of despair.

"Recently in one of our States, 60,000 dwelling houses and farms were brought under the hammer in a single day. 71,000 houses and farms in Oakland County, Michigan, were sold and their erstwhile owners dispossessed. The people who have thus been driven out are the wastage of the Fed. They are the victims of the Fed. Their children are the new slaves of the auction blocks in the revival of the institution of human slavery.

The Scheme Of The Fed

"In 1913, before the Senate Banking and Currency Committee, Mr. Alexander Lassen made the following statement: "The whole scheme of the Fed with its commercial paper is an impractical, cumbersome machinery- is simply a cover to secure the privilege of issuing money, and to evade payment of as much tax upon circulation as possible and then control the issue and maintain, instead of reducing interest rates. It will prove to the advantage of the few and the detriment of the people. It will mean continued shortage of actual money and further extension of credits, for when there is a shortage of money people have to borrow to their cost.’ "A few days before the Fed passed, Senator Root denounced the Fed as an outrage on our liberties. He predicted: ‘Long before we wake up from our dream of prosperity through an inflated currency, our gold- which alone could have kept us from catastrophe- will have vanished and no rate of interest will tempt it to return.’

"If ever a prophecy came true, that one did.

"The Fed became law the day before Christmas Eve, in the year 1913, and shortly afterwards, the German International bankers, Kuhn, Loeb and Co. sent one of their partners here to run it.

"The Fed Note is essentially unsound. It is the worst currency and the most dangerous that this Country has ever known. When the proponents of the act saw that the Democratic doctrine would not permit them to let the proposed banks issue the new currency as bank notes, they should have stopped at that. They should not have foisted that kind of currency, namely, an asset currency, on the United States Government. They should not have made the Government [liable on the private] debts of individuals and corporations, and, least of all, on the private debts of foreigners. "As Kemerer says: ‘The Fed Notes, therefore, in form, have some of the qualities of Government paper money, but in substance, are almost a pure asset currency possessing a Government guarantee against which contingency the Government has made no provision whatever.’

"Hon. L.J.Hill, a former member of the House, said, and truly: "They are obligations of the Government for which the United States received nothing and for the payment of which at any time, it assumes the responsibility: looking to the Fed to recoup itself.’

"If this United States is to redeem the Fed Notes, when the General Public finds it costs to deliver this paper to the Fed, and if the Government has made no provisions for redeeming them, the first element of unsoundness is not far to seek.

"Before the Banking and Currency Committee, when the bill was under discussion Mr. Crozier of Cincinnati said: ‘The imperial power of elasticity of the public currency is wielded exclusively by the central corporations owned by the banks. This is a life and death power over all local banks and all business. It can be used to create or destroy prosperity, to ward off or cause stringencies and panics. By making money artificially scarce, interest rates throughout the Country can be arbitrarily raised and the bank tax on all business and cost of living increased for the profit of the banks owning these regional central banks, and without the slightest benefit to the people. The 12 Corporations together cover y and monopolize and use for private gain- every dollar of the public currency and all public revenue of the United States. Not a dollar can be put into circulation among the people by their Government, without the consent of and on terms fixed by these 12 private money trusts.’

"In defiance of this and all other warnings, the proponents of the Fed created the 12 private credit corporations and gave them an absolute monopoly of the currency of these United States- not of the Fed Notes alone- but of all other currency! The Fed Act providing ways and means by which the gold and general currency in the hands of the American people could be obtained by the Fed in exchange for Fed Notes- which are not money- but mere promises to pay.

"Since the evil day when this was done, the initial monopoly has been extended by vicious amendments to the Fed and by the unlawful and treasonable practices of the Fed.

With the government buying up our banking system, and entire industries, forcing us deep deep into debt, a debt we will never be able to pay off, does it seem like socialism is their ultimate goal?
It looks like we are only hours away from all of this. Of becoming the USSA. Im not surprised but I bet alot of people did not see this coming.
Our investments are gone. We are losing our 401ks and retirement investments. All the money we have saved all or our lives, gone. We will have to depend on the government. This is a plan, a plot to move our country into a Socialist country. I believe the military should take over and enforce the constitution until a new civilian government is formed. Our government has betrayed us. It really has not sunk in with most people just how bad of a mess we are in.
And when the large companies go under we will be uninsured and they will socialize health care. I can’t believe this is happening in my lifetime. The fall of the United States.

Try communism. I used to think socialism until I heard more about it.

The government wants to silence those speaking against them.

The government wants to put limits on how much income someone can earn.

The government wants to "nationalize" our banking, healthcare and education industries.

The government wants to (soon) own your house.

The government wants to (soon) take your guns away.

What do you call that?

Has general management skills, loan recovery and other experience – but does not know about US taxation systems and law and other pertinent knowledge (what more is required?)

Usually in USA, commercial banking executives perform the following jobs, which does not include taxation !!
solicit new business and individual account relationships and calls on existing customers
develop new high profile commercial and consumer clients,
expands and increases existing high profile client’s business relationship,identify and sell various products appropriate for a given client,build and maintain a portfolio of high profile ,customers up to and including the most complex accounts,participate and promotes community involvement efforts
Please log on to any standard job portals and try !

It appears to me that the Central Banks have set up something like a super state with all of the big economies included as allies to each other (the central bankers are allies, the politicians aren’t always).

Do you think the Central Banks will allow the US to fall or do you think they will help out their buddy who works as the importer in the massive system that they have set up for the world economy?

I may of course be wrong about this, but that is why I asked the question, what is your opinion on all of this?

You will get a lot of interesting information in these sources:

What Has Government Done to Our Money by Murray Rothbard (free .pdf here : http://mises.org/money.asp )

The Case Against the Fed by Murray Rothbard (free .pdf here mises.org/books/fed.pdf )

The Creature from Jekyll Island: A Second Look at the Federal Reserve by Edward G. Griffin

These are a few of many books that show what the Federal Reserve really is, why it was created, what it does, why central banking and fractional reserve banking is not good for We The People.

The US is being blamed for a world wide economic problem .

A lot of people who are "allies" or were soft allies or who were well known enemies have one thing in common – they blame the US for world wide economic woe’s

Will the US be able to ever regain the confidence of off shore markets or be able to attract foreign investment again ?

Will people world wide now start asking their investment banker – "Is this going to be invested in the US because I don’t trust them with my money ?

Will governments (democratic) now lose support for investing or seen to be investing in the US ?

How will Paulson and his crew and future US governments overcome what is now forming An anti US feeling a common thought that Americans can’t be trusts with money

Especially in light that the US banking system now rates 40th on the list of "soundness" beaten out by Canada Australia and Norway – who are in the top 5

The US is being blamed because it CAUSED the problem, bud.

Will the US be able to ever regain the confidence of off shore markets or be able to attract foreign investment again ?

Maybe- it’s going to take a while.

Will people world wide now start asking their investment banker – "Is this going to be invested in the US because I don’t trust them with my money ?

Likely.

Will governments (democratic) now lose support for investing or seen to be investing in the US ?

Governments don’t "invest" in the US – they loan you money.

How will Paulson and his crew and future US governments overcome what is now forming An anti US feeling a common thought that Americans can’t be trusts with money

Paulson’s resigning when Bush leaves – tell you anything?

Especially in light that the US banking system now rates 40th on the list of "soundness" beaten out by Canada Australia and Norway – who are in the top 5

Canada, Sweden, Luxembourg, Australia – it didn’t name the 5th.

http://www.factcheck.org/askfactcheck/who_owns_the_federal_reserve_bank.html

Not only that, but JFK passed Executive Order 11110 on June 4th, 1963 that was designed to put new currency, backed by silver, into curculation. Soon after his assassination this money was removed from curculation.

How and why does the Fed have so much power? According to the section 8 of the Constitution congress is the only entity that has the right to do this.

Biggest crime ever committed on the American people was the Federal Reserve Act. If you look into it’s inception, it was sold to the people as a way to remove the "New York Establishment’s" control over our monetary system. In fact, it did the opposite. The Fed is not audited by Congress, nor does Congress have any say-so over the Fed’s policies. How could they if they don’t even know what they are doing? Some estimates say that the money supply has been inflated from $10 trillion to over $14 trillion in just the last 2 years alone. This devalues the savings of every American. Inflation is a silent tax on the poor and middle class.

Monetary Policy and the State of the Economy
by Ron Paul

Statement at Hearing of the House Financial Services Committee, February 15, 2007

Transparency in monetary policy is a goal we should all support. I’ve often wondered why Congress so willingly has given up its prerogative over monetary policy. Astonishingly, Congress in essence has ceded total control over the value of our money to a secretive central bank.

Congress created the Federal Reserve, yet it had no constitutional authority to do so. We forget that those powers not explicitly granted to Congress by the Constitution are inherently denied to Congress – and thus the authority to establish a central bank never was given. Of course Jefferson and Hamilton had that debate early on, a debate seemingly settled in 1913.

But transparency and oversight are something else, and they’re worth considering. Congress, although not by law, essentially has given up all its oversight responsibility over the Federal Reserve. There are no true audits, and Congress knows nothing of the conversations, plans, and actions taken in concert with other central banks. We get less and less information regarding the money supply each year, especially now that M3 is no longer reported.

The role the Fed plays in the President’s secretive Working Group on Financial Markets goes unnoticed by members of Congress. The Federal Reserve shows no willingness to inform Congress voluntarily about how often the Working Group meets, what actions it takes that affect the financial markets, or why it takes those actions.

But these actions, directed by the Federal Reserve, alter the purchasing power of our money. And that purchasing power is always reduced. The dollar today is worth only four cents compared to the dollar in 1913, when the Federal Reserve started. This has profound consequences for our economy and our political stability. All paper currencies are vulnerable to collapse, and history is replete with examples of great suffering caused by such collapses, especially to a nation’s poor and middle class. This leads to political turmoil.

Even before a currency collapse occurs, the damage done by a fiat system is significant. Our monetary system insidiously transfers wealth from the poor and middle class to the privileged rich. Wages never keep up with the profits of Wall Street and the banks, thus sowing the seeds of class discontent. When economic trouble hits, free markets and free trade often are blamed, while the harmful effects of a fiat monetary system are ignored. We deceive ourselves that all is well with the economy, and ignore the fundamental flaws that are a source of growing discontent among those who have not shared in the abundance of recent years.

Few understand that our consumption and apparent wealth is dependent on a current account deficit of $800 billion per year. This deficit shows that much of our prosperity is based on borrowing rather than a true increase in production. Statistics show year after year that our productive manufacturing jobs continue to go overseas. This phenomenon is not seen as a consequence of the international fiat monetary system, where the United States government benefits as the issuer of the world’s reserve currency.

Government officials consistently claim that inflation is in check at barely 2%, but middle class Americans know that their purchasing power – especially when it comes to housing, energy, medical care, and school tuition – is shrinking much faster than 2% each year.

Even if prices were held in check, in spite of our monetary inflation, concentrating on CPI distracts from the real issue. We must address the important consequences of Fed manipulation of interest rates. When interest rates are artificially low, below market rates, insidious mal-investment and excessive indebtedness inevitably bring about the economic downturn that everyone dreads.

We look at GDP numbers to reassure ourselves that all is well, yet a growing number of Americans still do not enjoy the higher standard of living that monetary inflation brings to the privileged few. Those few have access to the newly created money first, before its value is diluted.

For example: Before the breakdown of the Bretton Woods system, CEO income was about 30 times the average worker’s pay. Today, it’s closer to 500 times. It’s hard to explain this simply by market forces and increases in productivity. One Wall Street firm last year gave out bonuses totaling $16.5 billion. There’s little evidence that this represents free market capitalism.

In 2006 dollars, the minimum wage was $9.50 before the 1971 breakdown of Bretton Woods. Today that dollar is worth $5.15. Congress congratulates itself for raising the minimum wage by mandate, but in reality it has lowered the minimum wage by allowing the Fed to devalue the dollar. We must consider how the growing inequalities created by our monetary system will lead to social discord.

GDP purportedly is now growing at 3.5%, and everyone seems pleased. What we fail to understand is how much government entitlement spending contributes to the increase in the GDP. Rebuilding infrastructure destroyed by hurricanes, which simply gets us back to even, is considered part of GDP growth. Wall Street profits and salaries, pumped up by the Fed’s increase in money, also contribute to GDP statistical growth. Just buying military weapons that contribute nothing to the well being of our citizens, sending money down a rat hole, contributes to GDP growth! Simple price increases caused by Fed monetary inflation contribute to nominal GDP growth. None of these factors represent any kind of real increases in economic output. So we should not carelessly cite misleading GDP figures which don’t truly reflect what is happening in the economy. Bogus GDP figures explain in part why so many people are feeling squeezed despite our supposedly booming economy.

But since our fiat dollar system is not going away anytime soon, it would benefit Congress and the American people to bring more transparency to how and why Fed monetary policy functions.

For starters, the Federal Reserve should:

Begin publishing the M3 statistics again. Let us see the numbers that most accurately reveal how much new money the Fed is pumping into the world economy.
Tell us exactly what the President’s Working Group on Financial Markets does and why.
Explain how interest rates are set. Conservatives profess to support free markets, without wage and price controls. Yet the most important price of all, the price of money as determined by interest rates, is set arbitrarily in secret by the Fed rather than by markets! Why is this policy written in stone? Why is there no congressional input at least?
Change legal tender laws to allow constitutional legal tender (commodity money) to compete domestically with the dollar.
How can a policy of steadily debasing our currency be defended morally, knowing what harm it causes to those who still believe in saving money and assuming responsibility for themselves in their retirement years? Is it any wonder we are a nation of debtors rather than savers?

We need more transparency in how the Federal Reserve carries out monetary policy, and we need it soon.

February 17, 2007

Dr. Ron Paul is a Republican member of Congress from Texas.