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FIAT EMPIRE – Why the Federal Reserve Violates the U.S. Constitution

FIAT EMPIRE – Why the Federal Reserve Violates the U.S. Constitution

http://video.google.com/videoplay?docid=5232639329002339531&hl=en

 



9/11 Truth confronts former Terrorism Analyst Jonathan Schanzer

Philly 9/11 Truth Questions former Treasury Department Terrorism Finance Expert Jonathan Schanzer about 9/11 Financiers

http://video.google.com/videoplay?docid=-922490136441119678&hl=en

 



Big Banks Trying to Avoid Global Economic Crash

Big Banks Trying to Avoid Global Economic Crash

Cryptongon
October 13, 2007

How these banks are going to juggle so much filthy, festering, hemorrhaging debt is a mystery to me. Maybe governments will eventually wind up eating it, like with Northern Rock in the UK. Maybe hyperinflation will make paying these debts down much easier. Maybe… Hmm. How much opium is Afghanistan producing???

This is an astonishing article. These firms are admitting that the thing is about to go off the rails. They need to cling together and absorb the fallout from this subprime thing, or it’s game over.

Via: Wall Street Journal:

In a far-reaching response to the global credit crisis, Citigroup Inc. and other big banks are discussing a plan to pool together and financially back as much as $100 billion in shaky mortgage securities and other investments.

The banks met three weeks ago in Washington at the Treasury Department, which convened the talks and is playing a central advisory role, people familiar with the situation said. The meeting was hosted by Treasury’s undersecretary for domestic finance, Robert Steel, a former Goldman Sachs Group Inc. official and the top domestic finance adviser to Treasury Secretary Henry Paulson. The Federal Reserve has been kept informed but has left the active role to the Treasury.

The new fund is designed to stave off what Citigroup and others see as a threat to the financial markets world-wide: the danger that dozens of huge bank-affiliated funds will be forced to unload billions of dollars in mortgage-backed securities and other assets, driving down their prices in a fire sale. That could force big write-offs by banks, brokerages and hedge funds that own similar investments and would have to mark them down to the new, lower market prices.

The ultimate fear: If banks need to write down more assets or are forced to take assets onto their books, that could set off a broader credit crunch and hurt the economy. It could make it tough for homeowners and businesses to get loans. Efforts so far by central banks to alleviate the credit crunch that has been roiling markets since the summer haven’t fully calmed investors, leading to the extraordinary move to bring together the banks.

In recent weeks, investors have grown concerned about the size of bank-affiliated funds that have invested huge sums in securities tied to shaky U.S. subprime mortgages and other assets. Citigroup, the world’s biggest bank by market value, has drawn special scrutiny because it is the largest player in this market.

Citigroup has nearly $100 billion in seven affiliated structured investment vehicles, or SIVs. Globally, SIVs had $400 billion in assets as of Aug. 28, according to Moody’s.

Such vehicles are formally independent of the banks that create them. They issue their own short-term debt, usually at relatively low interest rates reflecting their high credit rating. The vehicles use the money to buy higher-yielding longer-term assets such as securities tied to mortgages or receivables from midsize businesses seeking to raise cash.

Many SIVs had trouble rolling over their short-term debt in August because of concerns about the quality of their assets. That contributed to the broader seizing up of credit markets.

The Financial Services Authority, the United Kingdom’s markets regulator, has suggested that U.K. banks consider participating in the plan, a person familiar with the situation said. HSBC Holdings PLC, the largest U.K. bank, has an affiliate SIV called Cullinan Finance Ltd. with $35 billion in senior debt. An HSBC representative wasn’t immediately available to comment.

If the banks agree, the plan could be announced as early as Monday, people familiar with the matter said. Citigroup announces third-quarter earnings Monday. The tentative name for the fund is Master-Liquidity Enhancement Conduit, or M-LEC.

 



Treasury claims power to seize Gold and Silver

Treasury claims power to seize gold and silver — and everything else

Chris Powell
Goldseek.com
October 7, 2007

Dear Friend of GATA and Gold:

Because of recent inquiries to GATA about the possibility of an attempt by the U.S. Government to confiscate privately held gold and silver bullion and coins and shares in companies mining the precious metals, we’re republishing here the correspondence between GATA and the U.S. Treasury Department on the subject in 2005.

The Treasury Department was surprisingly candid in that correspondence, asserting the U.S. Government’s authority, in declared emergencies, to confiscate precious metals and to restrict ownership of mining shares — and to confiscate and restrict every other financial asset as well. So perhaps precious metals investors shouldn’t feel too paranoid.

Confiscation has never seemed to GATA to be a serious or imminent threat. While the U.S. Government in 1933 did demand the exchange of circulating government-issued coins for paper money (proceeding to devalue the paper money after the gold was surrendered), that gold then was a huge part of the country’s money supply, and amid the national economic collapse at that time the government could make a plausible complaint against “hoarding.” There are no such circumstances today, gold no longer being in general circulation as currency. (Yes, we’re working on that.)

But of course lately the arrogance and imperiousness of the U.S. government have far exceeded even the paranoia of precous metals investors. Certainly capital controls may be imposed in the United States in the next currency crisis, and it’s not far from capital controls to even more brutal interventions in the economy.

GATA’s correspondence with the Treasury Department on the subject of confiscation is appended, along with the preface that appeared with the correspondence when it first was published.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.