Smart people have been saying all along that the banking crisis could be easily solved. All the United States needs to do is create and capitalize a bunch of new banks, with clean balance sheets. Six new banks, each with 100 billion dollars of taxpayer money could leverage these pristine assets at a ratio of 6:1 - meaning each of these banks could have 600 billion dollars to begin lending tomorrow.
Smartish people say nationalize the insolvent banks, clean out their balance sheets, recapitalize them, and sell them.
But Treasury Secretary Tim Geithner, chooses to do none of this, because to do so would necessitate the dissolution of management, stockholders, and Boards of Directors. His former employer, Goldman Sachs, paid $6 million dollars into Obama Campaign coffers... against today.
So, Geithner has concocted a way to keep these insolvent banks intact, at the expense of prudent banking practice. What Geithner's Plan II intends, it to launder these toxic assets through the taxpayer filter. This video explains how that will happen.
Tuesday, March 31, 2009
Bailouts to date
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Column Archive SPECIAL REPORT Issue #1: America's Money Crisis
Economy rescue: Adding up the dollars
The government is engaged in an unprecedented - and expensive - effort to rescue the economy. Here are all the elements of the bailouts.
1$200 billion set aside in September 2008; $200 billion additional in February 2009
2At least $20 billion
3Estimated budget impact for 2009 is $120 billion
4Making Home Affordable foreclosure prevention program will get $50 billion from Treasury, $20 billion from GSEs and $5 billion from HUD.
5Includes $70 billion from TARP
6Bridge loan allocation to be reduced to not less than $25 billion once government takes stakes in life insurance units
Sources: Federal Reserve, Treasury, FDIC, CBO
Note: Figures as of March 30, 2009
2At least $20 billion
3Estimated budget impact for 2009 is $120 billion
4Making Home Affordable foreclosure prevention program will get $50 billion from Treasury, $20 billion from GSEs and $5 billion from HUD.
5Includes $70 billion from TARP
6Bridge loan allocation to be reduced to not less than $25 billion once government takes stakes in life insurance units
Sources: Federal Reserve, Treasury, FDIC, CBO
Note: Figures as of March 30, 2009
http://money.cnn.com/news/specials/storysupplement/bailout_scorecard/index.html
Friday, March 27, 2009
Monday, March 23, 2009
Saturday, March 14, 2009
The Kennedy Speech that got him killed.
It has been less than 50 years, but this speech given by J.F.K. challenged the shadow bankers. There is evidence Kennedy saw this secret society as the United States Federal Reserve.
KENNEDY TRIED TO CHANGE IT
In 1963, President John Kennedy wanted an end to the Federal Reserve System, which had a strangle-hold on the United States and virtually the world. By a simple stroke of the pen, President Kennedy dismissed the Federal Resene System and ordered the U.S. governmcnt to restore its Constitutional-mandate of controlling the money. President Kennedy was dead three weeks later. When President Lyndon Johnson took office, he immediately rescinded Kennedy's order and the Federal Resene won another round.
Representative Charles A. Lindberg, Sr., the father of the famous aviator, was a member of thc Banking and Currency Committee. He opposed the Federal Reserve Act and gave a speech on January 20, 1915. "The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money, and in the interest of the stockholders and those allied with them." Representative Louis T. McFadden, chairman of the Housing Banking and Currency Committee, stated on June 10,1932, "Some people think the Federal Reserve Banks are United States Government institutions. They are not Government institutions. They are privatc credit monopolies that prey upon the people of the United States for the benefit of themselves and their foreign and domestic swindlers; and rich and predatory money lenders."
FOREIGN BANKERS OWN MAJORITY OF FEDERAL RESERVE
More that half the shareholdings in the Federal Reserve Bank arc controlled by large New York City banks, including National City Bank, National Bank of Commerce, First National Bank, Chase National Bank, and Marine National Bank. When Rockefeller's National City Bank merged with J.P. Morgan's First National Bank in 1955, the Rockefeller group owned 22 percent of the shares of the Federal Reserve Bank of New York, which in turn holds the majority of shares in the Federal Reserve System - 53 percent. But who really owns what? Here arc the top controllers of the Federal Reserve Bank
1. Rothchild banks of London and Berlin.
2. Lazard Brothers Banks of Paris.
3. Israel Moses Seif Banks of Italy.
4. Warburg Bank of Hamburg and Amsterdam.
5. Lehman Brothers Bank of New York.
6. Kuhn, Loeb bank of New York.
7. Chase Manhattan Bank of New York, which controls all of the other 11 Federal Rwerve Banks.
8. Goldman, Sachs Bank of New York.
This ownership combination has been challenged by the Federal Reserve Bank, but a study of Standards and Poors will verify the ownerships. This means that the controlling interest of our national monetary system is foreign. In 1797, John Adams wrote to Thomas Jefferson, "All the perplexities, confusion and distress in America arise, not from defects of the Constitution or Confederation; not from any want of honor or virtue, as much as downright ignorance of the nature of coin, credit and circulation." In simple terms, the United States Government borrows money from the Federal Reserve Bank with interest. Here is how it works: The Government wants $1 billion. The Federal Reserve prints $1 billion - based upon no hard asset - and lends it to the Government at a high interest rate. The bank did not have the original money, it created it and made a bookkeeping entry - like you writing yourself a check without funds and cashing it. The Federal Reserve controls the flow of money, making it tight and creating unemployment or printing more than actually exists and creates inflation. It is, in wessence, a paper corporation, which controls the entire economic well-being of the nation.
CONCLUSION
No Congress, no President has been strong enough to stand up to the foreign-controlled Federal Reserve Bank. Yet there is a catch - one that President Kennedy recognized before he was slain - the original deal in 1913 creating the Federal Reserve Bank had a simple backout clause. The investors loaned the United States Government $1 billion. And the backout clause allows the United States to buy out the system for that $1 billion. If the Federal Reserve Bank were demolished and the Congress of the United States took control of the currency, as required in the Constitution, the National Debt would virtually end overnight, and the need for more taxes and even the income tax, itself. Thomas Jefferson was concise in his early warning to the American nation, "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."
In his farewell address to the nation, President Dwight Eisenhower warned of the danger.Tuesday, March 10, 2009
AIG - The Kingpin
The latest buzzword in finance is no longer "too big to fail": it's "systemic risk". The same could be said about holding a gun to someone else s head. AIG, already the recipient of $130 billion taxpayer dollars, leaked this document to ABC News (a favourite of the dems) just four days before asking Treasury for another $30 billion dollars.
Aig Systemic 090309
Aig Systemic 090309
Tuesday, March 03, 2009
If you are not a Keynesian - then you're for Uncle Milton
Economist Milton F. Friedman talks with Phil Donahue about the necessity for capitalism and greed in society.
Monday, March 02, 2009
Paul Harvey Dies - aged 90
As a kid growing up we listened to the radio a lot. Sure, we had TV, but some stories were best told on the radio. There was a guy called Paul Harvey who told stories. They were always interesting because at the last would be some trick ending. He always prompted the punch line with the words: "and now for the rest of the story..." With a deep voice and an ingenious use of pauses - during which the radio would hum while we hung on the edge of our seats, he provided what I later came to recognise as art.
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