noworldsystem.com


Gold Runs Out In Germany

Gold Runs Out In Germany

Allan Hall
London Evening Standard
October 12, 2008

Risk-averse Germans are turning to gold in troubled times – but there’s none left.

German gold dealers say demand has skyrocketed this past week to 10 times normal so no more orders can be taken for the foreseeable future.

“The demand exceeds our capacities by a great deal,” said Heiko Ganss, head of precious metal company Pro Aurum.

“The requests cannot be satisfied right now,” a dealer from the Düsseldorf WGZ Bank confirmed.

“Demand for gold as a conservative investment has risen dramatically,” said stephan Henkel. “right now the demand is about 10 times as high as in normal times.”

Gold deliveries now take between four and six weeks.

The US mint said on Monday it had exhausted some of its supply of bullion coins and was struggling to meet demand for gold, silver and platinum.

South Africa’s Rand Refinery, producer of the world’s most popular gold bullion coin, the Krugerrand, temporarily ran out of the coins in August.

 

Londoners Queue-Up on Sidewalk to Buy Gold in Rush for Money Haven

Bloomberg
October 9, 2008

Londoners stood in line outside the largest gold coin and bar retailer in the city’s West End shopping district, clogging the lobby and trading among themselves as they sought a safe haven for their money.

“People want something tangible, something they can hold on to, something the banks can’t give them,” said Chris Burrow, the owner of ATS Bullion, the gold dealer in the Strand that traces its roots back to the 17th century. “There’s no time to breathe. We’re rushed off our feet. Staff are exhausted.”

As U.K. stocks tumbled to a five-year low, paced by financial-services companies, gold advanced. Since Lehman Brothers Holdings Inc.’s Sept. 15 filing for bankruptcy protection, exacerbating the worldwide credit crisis, gold for immediate delivery has jumped 19 percent.

“Investors are rushing to safe havens and physical gold seems to be the favorite one,” said Frederic Panizzutti, a senior vice president at MKS Finance, one of Switzerland’s four bullion refiners.

British government action to prop up the banking industry has failed to reassure investors. The U.K. on Oct. 8 promised 50 billion pounds ($86 billion) of capital to banks, the same day the Bank of England cut its benchmark interest rate by half a percentage point. Last month, the government brokered a takeover of HBOS Plc, Britain’s largest mortgage lender, and seized control of Bradford & Bingley’s mortgage division.

Read Full Article Here

 

Austria Witnesses New Gold Rush

BBC
October 12, 2008

The financial crisis is prompting people to look for safer forms of investment than stocks and shares.

The interest in gold coins is so great that many of the world’s major mints are struggling to keep up with demand, including the Austrian Mint, which produces the Vienna Philharmonic – one of the best-selling bullion coins worldwide.

Sales of Vienna Philharmonic gold coins have gone up by more than 230% since last year.

Kerry Tattersall, the director of marketing at the mint, says production has gone into overdrive.

“We are running at present something like three shifts on all of the machines, on the presses, producing both gold and the silver bullion coins.

Read Full Article Here

 

Central banks all but stop lending gold

Javier Blas
Financial Times
October 8, 2008

Central banks have all but stopped lending gold to commercial and investment banks and other participants in the precious metals market, in a move that on Tuesday sent the cost of borrowing bullion for one-month to more than twenty times its usual level.

The one-month gold lease rate rocketed to 2.649 per cent, its highest level since May 2001 and significantly above its five-year average of 0.12 per cent, according to data from the London Bullion Market Association.

Gold lease rates for two, three, and six months and for a year also jumped to levels not seen in the last seven years.

Traders said the jump reflects the fact that central banks — mostly European — have almost completely stopped lending gold in the last few days and are not rolling forward old leases after maturity. This is because of fears that some borrowers might not repay their bullion loans if they are engulfed by the financial crisis.

“A number of central banks have been cutting back on their gold lending,” said Tom Kendall, a precious metals strategist at Mitsubishi in London.

John Reade, a commodities strategist at UBS, added that there had been a lot of talk about some central banks being unwilling to lend their gold because of a redoubled focus on the risk of borrowers not returning it.

Read Full Article Here

Bullion Shortage and Spot Prices Tell Two Different Gold Stories
http://seekingalpha.com/article/99680-..ces-tell-two-different-gold-stories

Blatant Banker Manipulation Of Gold Prices
http://www.prisonplanet.com/blatant-banker-manipulation-of-gold-prices.html

No Mass Mania for Gold Yet – Less than 1% of Public in Western World Have Invested in Gold
http://news.goldseek.com/GoldSeek/1224161100.php

Spot Gold Price Is Now Meaningless
http://www.istockanalyst.com/article/viewarticle%2Barticleid_2713209.html

Gold expected to rally above $1000 in Q1 2009
http://network.nationalpost.com/np/b..o-rally-above-1000-in-q1-2009.aspx

What the Pros Say: All that Glitters is Gold
http://www.cnbc.com/id/27095525

Kiener: Gold Prices To Double On Paper Market Default
http://www.prisonplanet.com/kiener-..o-double-on-paper-market-default.html

 



Potential Bailout Cost is $5 Trillion or $43K Per Household

Potential Cost For Bailout is $5 Trillion or $43K Per Household

Steve Watson
Infowars.net
October 15, 2008

The total potential cost of the financial bailout to the U.S. taxpayer is already rapidly approaching $5 trillion, over seven times as much as the meaningless $700 billion bailout bill figure.

Analysts have previously marked out the $5 trillion figure as the actual cost, now those predictions are becoming demonstratively accurate.

Meanwhile, Hank Paulson has defended government intervention, stating “There’s no doubt that the way to get the maximum bang for the taxpayers here was to invest in banks.”

Based on this Reuters summary and the sources linked within the table, here is a breakdown of the bailout’s cost to taxpayers so far.

Bailout Type
Cost To Taxpayers
$300 billion
$250billion
$25 billion
$150 billion
$700 billion+
$29 billion
$200 billion
$85 billion (+ extra request of $35 billion)
$300 billion
$4 billion
$87 billion
$200 billion+
$50 billion
$144 billion
POSSIBLE TOTAL $2.56 trillion+
NUMBER OF HOUSEHOLDS PER
U.S. CENSUS
105,480,101
POSSIBLE COST PER HOUSEHOLD
$24,26

In addition, the U.S. government has said it will temporarily guarantee $1.5 trillion (£856 billion) in new senior debt issued by banks, as well as insure $500 billion (£285 billion) in deposits in non-interest accounts, mainly used by businesses.

These figures take the potential cost to $4.559 trillion+ – or $43, 221 per household.

Furthermore, when you account for the fact that the credit default swap market is around $62 trillion, and that derivatives worldwide are worth between between $1 and $2 quadrillion, the numbers start to become meaningless.

 

Fed To Offer Unlimited Dollars
Bloomberg
October 13, 2008

The U.S. Federal Reserve led an unprecedented push by central banks to flood financial markets with dollars, backing up government efforts to restore confidence in the banking system.

The ECB, the Bank of England and the Swiss central bank will offer unlimited dollar funds in auctions with maturities of seven days, 28 days and 84 days at a fixed interest rate, the Washington-based Fed said today. The Bank of Japan may introduce “similar measures.’’ The dollar declined and some money-market rates fell.

Policy makers from the Group of Seven nations pledged at the weekend to take “all necessary steps’’ to stem a market panic after the MSCI World stock index plunged 20 percent last week. Central banks last week cut interest rates in tandem for the first time since 2001, the U.S. plans to buy $700 billion in distressed assets from banks and in Europe, the U.K. is leading a push to keep lenders afloat with taxpayers’ money.

“By providing unlimited dollar funds they are acting on the back of the G-7 plan to ensure the system is fully liquidized,’’ said Lena Komileva, an economist at Tullet Prebon Plc in London. “We’re going to see even more liquidity provided and more aggressive rate cuts are coming.’’

Read Full Article Here

Banks borrow record $437.5 billion per day from Fed
http://www.reuters.com/article/newsOne/idUSTRE49F97920081017

Millionaire Hedge Fund Trader Thanks Idiot Traders
http://www.guardian.co.uk/business/2008/oct/18/banking-useconomy

Treasury Black Out Key Parts Of Bailout Contracts
http://www.huffingtonpost.com/..136030.html

Wall Street banks in $70bn staff payout
http://www.guardian.co.uk/business/2008/oct/17/executivesalaries-banking

Homeless Numbers Alarming
http://www.usatoday.com/news/nation/2008-10-21-homeless_N.htm

House prices ‘to plummet by 35%’ – the biggest ever fall in Britain
http://www.dailymail.co.uk/news/..–biggest-fall-Britain.html

Royal Bank Of Scotland Nationalized
http://business.timesonline.co…g_and_finance/article4932250.ece

Switzerland Pumps Billions Into Bank System
http://biz.yahoo.com/ap/081016/eu_switzerland_banks.html?printer=1

UBS Gets Bailout From Swiss National Bank
http://www.chicagotribune.com..7,0,4057853.story

Dow Jones Bloodbath Mirroring 1929 Rout
http://www.prisonplanet.com/dow-jones-bloodbath-mirroring-1929-rout.html

Two More Banks Closed By Regulators
http://money…00397x1211373371x1200675175

U.S. Stocks Plunge Most Since Crash of `87 on Recession Concern
http://www.bloomberg.com/apps/news?pid..er=home

Roubini Sees Worst Recession in 40 Years, Rally’s End
http://www.bloomberg.com/apps/news?..efer=home

JPMorgan Responsible for the Destruction of U.S. Financial System
http://www.marketoracle.co.uk/Article6826.html

World May Be Lucky to Get Worst Recession Since 1983
http://www.bloomberg.com..OAeSWBCY&refer=home

Stocks On Track For Worst Year Since 1937
http://www.chron.com/disp/story.mpl/nation/6050283.html

Former Fed chief says U.S. now in recession
http://www.reuters.com/article/newsOne/idUSTRE49D2QB20081014

U.S. Economy Collapse News Archive

 



John McCain: I’ve Always Aspired To Be Dictator

John McCain: I’ve Always Aspired To Be Dictator

http://www.youtube.com/watch?v=rvqAYW3AV0g

 

McCain Proposes $1 Trillion Bailout Bypassing Congress

http://www.youtube.com/watch?v=SesiK5CpcII

$1.4 Billion In McCain Tax Cuts For ‘Mainstream Media’
http://wonkroom.thinkprogress.org/2008/10/03/msm-mccain-billions/

McCain’s Last Hope Is Osama Bin Laden
http://www.prisonplanet.com/mccains-last-hope-is-osama-bin-laden.html

Pro-McCain Group Offering Cash For Frats To Demonstrate At VP Debate
http://www.huffingtonpost.com/2008.._n_130827.html

 



Chuck Norris: “Ron Paul Is The Only Guy I Trust”

Chuck Norris: “Ron Paul Is The Only Guy I Trust”

http://www.youtube.com/watch?v=e8w_29EJbrY

http://www.youtube.com/watch?v=CXLSZvKaxxY

 



Ron Paul: You’re Going To Guarantee A Depression

Ron Paul: You’re Going To Guarantee A Depression

http://www.youtube.com/watch?v=wK2QjMydQpU

Ron Paul: Buying bad debt is the wrong solution

http://www.youtube.com/watch?v=b_QpkQwOlwI

CNN Misquotes Ron Paul On Bailout Bill
http://www.prisonplanet.com/cnn-misquotes-ron-paul-on-bailout-bill.html

 



Congress Threatened With Martial Law If Bailout Not Passed

Congress Threatened With Martial Law If Bailout Was Not Passed

http://www.youtube.com/watch?v=HaG9d_4zij8

http://www.youtube.com/watch?v=egXhZMaY26w

 



Top contributors to Obama and McCain are big banks

Top contributors to Obama and McCain are big banks

 



Hollywood, TV and NASCAR in Bailout Bill

Hollywood Could Get Cut Of Bailout

LA Times
October 1, 2008

Hollywood would get a little unexpected boost from the proposed $700-billion bailout of the nation’s financial system.

The bill wending its way through Congress would provide tax breaks worth more than $470 million over the next decade for movie and TV producers that shoot in the U.S.

Read Full Article Here

 

Bailout Bill Includes Tax Break For NASCAR

Miami Herald
October 2, 2008

A tax break for NASCAR racetracks and other motor-sports facilities is among the “sweeteners” tucked inside a 450-page financial-services bailout bill to make the package more palatable to lawmakers.

Read Full Article Here

 

Rum, Wooden Arrows, and the Pork Barrel Bailout

George Washington’s Blog
October 2, 2008

The shock-doctrine peddlers are saying the world will end if the bailout isn’t passed. So you’d think that Congress would focus a little on fixing the financial crisis.

Instead, the Senate bailout bill includes issues of vital national importance such as :

Extension of economic development credit to American Samoa (p. 279)
Rum excise tax to Puerto Rico and the Virgin Islands (p. 279)
Motorsports racing track facility (p. 290)
Wool modifications (p. 295)
Children and wooden arrows (p. 300)

The list goes on and on . . .

It also includes plenty of unfunded mandates.

Indeed, it seems like pork barrel politics as usual in Washington.

Bailout bill is 451 pages long
http://news.yahoo.com/s/a..cnWOA64ch9GkocOsJ0lJv24cA

 



Army will have weapons and tanks when policing U.S. streets

NorthCom Denies Troops To Be Used For Crowd Control
But admits that Army will have access to weapons and tanks during homeland patrols

Paul Joseph Watson
Prison Planet
October 2, 2008

Following the alarming admission that active duty U.S. Army would be on call to deal with “civil unrest” inside the United States from October 1st, the US Northern Command (USNORTHCOM) has publicly denied that troops will engage in law enforcement duties, but concedes that forces will be armed with both non-lethal and lethal weapons as well as having access to tanks.

As we highlighted last week, a September 8 Army Times report stated that active duty troops from the 3rd Infantry Division’s 1st Brigade Combat Team returning from Iraq would be on call as a “federal response force for natural or manmade emergencies and disasters, including terrorist attacks,” for a period of 12 months from October 1st.

The purpose of the unit’s patrols, according to the article, includes helping “with civil unrest and crowd control or to deal with potentially horrific scenarios such as massive poisoning and chaos in response to a chemical, biological, radiological, nuclear or high-yield explosive, or CBRNE, attack.”

However, a NorthCom official, presumably responding to reports featured on this website and others, publicly denies that troops will be used to police Americans.

“This response force will not be called upon to help with law enforcement, civil disturbance or crowd control, but will be used to support lead agencies involved in saving lives, relieving suffering and meeting the needs of communities affected by weapons of mass destruction attacks, accidents or even natural disasters,” Army Col. Michael Boatner, USNORTHCOM future operations division chief, told Homeland Security Today.

We also learn that the troops will be under the operational control of USNORTHCOM’s Joint Force Land Component Command under US Army North, headquartered in San Antonio, Texas. The operational headquarters of the response force is at Fort Monroe, Virginia.

The original Army Times report also stated that the use of non-lethal weapons against Americans would be a possibility, but a retraction has now been issued stating that the forces would not use nonlethal weaponry domestically.

Read Full Article Here

 

Use of military in quelling domestic unrest a scary sign

Amy Goodman
Seattle PI
October 2, 2008

A little-noticed story surfaced a couple of weeks ago in the Army Times newspaper about the 3rd Infantry Division’s 1st Brigade Combat Team. “Beginning Oct. 1 for 12 months,” reported Army Times staff writer Gina Cavallaro, “the 1st BCT will be under the day-to-day control of U.S. Army North, the Army service component of Northern Command, as an on-call federal response force for natural or manmade emergencies and disasters, including terrorist attacks.” Disturbingly, she writes that “they may be called upon to help with civil unrest and crowd control” as well.

The force will be called the chemical, biological, radiological, nuclear or high-yield explosive Consequence Management Response Force. Its acronym, CCMRF, is pronounced “sea-smurf.” These “sea-smurfs,” Cavallaro reports, have “spent 35 of the last 60 months in Iraq patrolling in full battle rattle,” in a combat zone, and now will spend their 20-month “dwell time” — time troops are required to spend to “reset and regenerate after a deployment” — armed and ready to hit the U.S. streets.

The Army Times piece includes a correction stating that the forces would not use nonlethal weaponry domestically. I called Air Force Lt. Col. Jamie Goodpaster, a public affairs officer for Northern Command. She told me that the overall mission was humanitarian, to save lives and help communities recover from catastrophic events. Nevertheless, the military forces would have weapons on-site, “containerized,” she said — that is, stored in containers — including both lethal and so-called nonlethal weapons. They would have mostly wheeled vehicles, but would also, she said, have access to tanks. She said that use of weapons would be made at a higher level, perhaps at the secretary of defense level.

Talk of trouble on U.S. streets is omnipresent now, with the juxtaposition of Wall Street and Main Street. The financial crisis we face remains obscure to most people; titans of business and government officials assure us that the financial system is “on the brink,” that a massive bailout is necessary, immediately, to prevent a disaster. Conservative and progressive members of Congress, at the insistence of constituents, blocked the initial plan. If the economy does collapse, if people can’t go down to the bank to withdraw their savings, or get cash from an ATM, there may be serious “civil unrest,” and the “sea-smurfs” may be called upon sooner than we imagine to assist with “crowd control.”

The political and financial establishments seem completely galled that people would actually oppose their massive bailout, which rewards financiers for gambling. Normal people worry about paying their bills, buying groceries and gas, and paying rent or a mortgage in increasingly uncertain times. No one ever offers to bail them out. Wall Street’s house of cards has collapsed, and the rich bankers are getting little sympathy from working people.

Read Full Article Here

U.S. Army conducting training exercises in cities, towns
http://www.elliscountypress.com/news/132/ARTICLE/2575/2008-09-30.html

Troops Patrol U.S. Streets Searching For “Civil Unrest”
http://noworldsystem.com/2008/09/26/t..eets-searching-for-civil-unrest/

 



Congress Approval Just 10%

Congress Approval Just 10%

London Guardian
October 1, 2008

The controversy over the failure of the Bush administration’s unpopular financial bail-out is infecting every aspect of government and the presidential election campaign.

Eminent reputations lie in ruins; the august institutions of Congress, the treasury, the Federal Reserve tremble; the presidency itself is shaken. In America’s year of living dangerously, few will emerge unscathed.

The consensus view, if there is one in so divided a nation, is that the US has suffered a calamitous, across-the-board failure of leadership. The bankruptcy is political as well as economic. This conclusion is widely held among both supporters and opponents of the bail-out.

“Monday’s crash and burn of the Paulson plan on Capitol Hill reveals a Washington elite that has earned every bit of the disdain that Americans have for it. This crowd can’t even make sausage,” snarled a Wall Street Journal editorial yesterday. Black Monday’s shambles marked a “historic abdication”.

Republicans and Democrats in the House of Representatives were excoriated for political cowardice, childish disputatiousness, and a selfish desire to get re-elected next month at any cost. It’s clear, whatever they do next, the public simply does not trust them to do it right.

“A political establishment held in higher regard may have been able to hold together some kind of coalition of the willing,” wrote Joel Achenbach in the Washington Post. “But distrust of the nation’s leaders, from the leaders of Congress to the president, foreclosed that possibility.”

This was not mere rhetoric. Congress’s public approval rating was down to 18% before the crisis hit. By some estimates, it is now 10% and falling. Washington has seen a “throw the bums out” mood before, notably Newt Gingrich’s 1994 anti-government “Republican revolution”. But this is something else. Like some others, Gingrich is calling for the resignation of Hank Paulson, the treasury secretary, for presiding over a train wreck and then failing to persuade people why $700bn was needed to get back on the rails.

Other heads enthusiastically recommended for the chopping block include Democratic house speaker, Nancy Pelosi, for being “too partisan” and the Republican house minority leader, John Boehner, for not being partisan enough.

An unhappy Boehner said before the vote that the bail-out was a “crap sandwich” that he and colleagues were obliged to eat. As it turned out, 133 Republicans and 95 Democrats found it too much to swallow.

Many members of Congress found themselves caught between party leadership and angry constituents and sought to explain themselves.

“We are now in the golden age of thieves. And where I come from we put thieves in jail, we don’t bail them out,” said Pete Visclosky, an Indiana Democrat who voted ’no’.

The signal failure, as critics see it, of President George Bush to show a lead out of the morass has provoked a new crop of political obituaries.

“No longer a lame duck, he’s a dead duck,” said Democratic strategist Paul Begala.

Congress takes a break for Jewish holiday
http://www.newsnet14.com/2008..-a-break-for-jewish-holiday/

 



McCain’s Role In Keating 5 Scandal Censored on Fox News

Fox host tells guest mentioning McCain role in Keating Five scandal to ’pipe down’

Nick Juliano
Raw Story
September 25, 2008

http://www.youtube.com/watch?v=hzX4CwMbtls

http://www.youtube.com/watch?v=HAzDEbVFcg8

’Cut his mike,’ producer suggests

The Keating Five scandal, and John McCain’s role in it, has received relatively little mention in presidential campaign coverage, and at least one Fox News host seems dedicated to keeping it that way.

Appearing Thursday morning on Fox & Friends, radio host Mike Papantonio tried to remind viewers about McCain’s intervention with federal regulators on behalf of real estate mogul Charles Keating, who was trying to avoid regulations of a savings and loan he owned during the S&L crisis of the 1980s.

F&F’s Steve Doocy told Papantonio to “pipe down,” called him “rude” and demanded he “cut it out.” A show producer could be overheard saying “cut his mike.”

As Papantonio tries one last time to explain the details of the Keating Five scandal, Doocy again cuts him off.

“This is not the History Channel,” he says.

Papantonio’s apparent crime was interrupting fellow guest Michael Reagan, the conservative radio host, who was arguing that it would be unfair to judge McCain based on his actions 20 years ago.

“It has everything to do with what’s happening today,” Papantonio said before being told to pipe down.

Regardless of whether Papantonio was being rude, preserving an orderly debate certainly could not have been Doocy’s goal in silencing the guest. Not two minutes before his admonition that Papantonio was “being rude,” Doocy repeatedly interrupted his guest to deliver talking points that might as well have been written by the McCain campaign.

At least three times Doocy interrupted Papantonio as he argued that McCain’s political gambit to “suspend” his campaign and delay Friday’s debate was more a response to his flagging poll numbers than an attempt to fix the economic crisis. Doocy wasn’t buying it.

“If Barack Obama wants to do so much for the economy, why doesn’t he go to his day job and work in the US senate?” he asked Reagan, cutting off Papantonio’s argument.

 

McCain Links Iraq to 9/11 Two Months After Attack

http://www.youtube.com/watch?v=HDMU-JfYouU

 

McCain: Chavez is in the Middle East

http://www.youtube.com/watch?v=TMVonhkN0yQ

If At First You Don’t Succeed, Suspend Your Campaign
http://talkingpointsmemo.com/archives/220826.php

McCains Defaulted On Home Taxes For Last Four Years
http://www.huffingtonpost.com/2008/06/28/mccains-failed-to-pay-tax_n_109785.html

 



Banks gave more money to house members who voted yes on bailout

House members who voted ‘yes’ on bailout received 54% more from banks-securities firms
Dems voting ’Yes’ received twice as much as Dems voting ’No’

MAPLight.org
September 30, 2008

Members of the U.S. House of Representatives today voted against a $700 billion financial system bailout. MAPLight.org has found that, over the past five years, banks and securities firms gave an average of $231,877 in campaign contributions to each Representative voting in favor of the bailout, compared with an average of $150,982 to each Representative voting against the bailout54 percent more money given to those who voted Yes. 205 Representatives voted Yes and 228 voted No, with 1 Not Voting.

House Democrats split their votes on this bill, 140 voting Yes and 95 voting No. Democrats voting Yes received an average of $212,700 each, about twice as much as those voting No, $107,993.

House Republicans also split their votes on this bill, 65 voting Yes and 133 voting No (and 1 not voting). Republicans voting Yes received an average of $273,181 each, 50% more than those voting No, $181,688.

“Profit-driven companies wouldn’t be making campaign contributions if it didn’t buy them influence or access,” said Daniel Newman, MAPLight.org’s executive director. “Votes in Congress align with the river of money that flows through our political system.”

Read Full Article Here

The 50 Richest Members of Congress
http:/..ide-to-Congress_2008/guide/28506-1.html

 



Protest on Wall Street, what the media won’t cover

ACTION ALERT: Call Congress and Senate, say NO to a Wall Street bailout:
1-800-828-0498 (congress)
1-800-417-7666 (senate)

Protest on Wall Street, what the media won’t cover

Hubpages
September 29, 2008

Protests took place on Wall St. to protest the bail out plan – and the mainstream news media didn’t even mention it

Hundreds of protestors demonstrated agains the proposed $700 Billion bail out plan for the finance and banking industry, yet the national news media in America didn’t even report it! Why not? It seems strange that this barely generated a gander from the big news outlets like ABC, CNN, CBS, NBC etc. all of whom have a presence in New York City. Despite having such a large protest event occurring in their backyard, the major news media chose not to tell the American people about it. I had to stumble upon this on the internet to find out about it. That’s really indicative of the pathetic state of affairs in the U.S. media today.

Anyway, in case you haven’t seen it, I have collected a bunch of video from the protests on Wall Street (Sept. 25) and posted them below. Have a look at what the news media DIDN’T show you! Warning: some of the protest videos contain profanity.

http://www.youtube.com/watch?v=XreAnHG8xu4

http://www.youtube.com/watch?v=EEWvegDAtkQ

http://www.youtube.com/watch?v=2j0C42-F-Xs

http://www.youtube.com/watch?v=fQteKIXEUuU

 



Huge European Banks Fail

Huge European Banks Fail

Steve Watson
Infowars.net
September 29, 2008

With major European banks now failing, calls have increased for an entire restructuring of the financial system under a centralized EU supervisory body.

With Belgian-Dutch group Fortis becoming the first major European bank to buckle, British mortgage lender Bradford & Bingley also being nationalized, as well as several other banks failing in Iceland, Denmark and Germany, economists have warned that more are teetering on the brink and only a radical centralization of power in Europe can stave off financial ruin.

Earlier this month, German economist Daniel Gros warned in a report for the Centre for European Policy Studies (CEPS) that several European banks have become so large that their governments would no longer be able to save them. Should they fail no rescue would be possible because the economy of the home nations are smaller than the banks that reside within them.

Now, in an interview with Dutch newspaper Volkskrant, Gros warns that European giants like Deutsche Bank, Barclays and UBS (Switzerland) are dangerously close to folding.

The Deutsche Bank has 2, 000 billion euros of open credit, one fifth of the german economy, while Barclays has 1, 640 billion euros of open credit, more than the entire UK economy.

Gros has proposed that European Parliament balance the books of the affected banks and that a new system of financial supervision is created with a 12 member body to overlook the European financial market.

In October the European Commission will propose new rules governing how much banks must keep in reserves, and set rules on how regulators should act if a bank is in danger of collapse.

Top EU officials, including economy commissioner Joaquin Almunia, have stated that the EU should have greater powers to regulate and intervene in the operations of financial institutions across Europe.

“The latest events in financial markets have made it clear that the current model of regulation and supervision needs to be revamped,” Almunia has said.

Banking Crash Hits Europe
http://www.telegraph.co.uk..ng-crash-hits-Europe-as-ECB-loses-traction.html

 



U.S. Banking Collapse Was Like Controlled Demolition on 9/11

U.S. Banking Collapse Was Like Controlled Demolition on 9/11

http://www.youtube.com/watch?v=sS65bA4kKVE

 



Bailout Bill Fails But May Revive And Pass Anyways

Bailout Bill Fails But May Revive And Pass Anyways

Bloomberg
September 30, 2008

The U.S. Senate will try to salvage a $700 billion financial-rescue package after the measure was defeated in the House of Representatives. The lawmakers won’t have a lot of room to negotiate.

While the legislation will need to be tweaked enough to win over reluctant House Republicans, the lawmakers will risk losing votes from Democrats if they veer too far from the delicate compromise that congressional leaders hammered out with the U.S. Treasury.

“They’re not going to totally revamp the bill,’’ said Pete Davis, president of Davis Capital Investment Ideas in Washington, who spoke to House and Senate leaders yesterday. “They’ll make some minor changes and pass it. This is all about political cover.’’

Read Full Article Here

 

Kudlow Schooled: ‘You’ve Become A Socialist – Your Version Of Socialism Is To Bail Out The Rich’

 

Paulson: King Paulson or Convict Paulson

Recent News:

Bank of America to close credit cards for approximately 60% of customers? (by Oct 1)
http://mparent7777-1.livejournal.com/1933222.html

House Clears $25 Billion For Carmakers
http://www.ft.com/cms/s/0/83bfe68c-8a8f-11dd-a76a-0000779fd18c.html

Home builders will ask for $90 billion bailout
http://money.cnn.com/2008/09..ion=2008092608

I’ve watched the economy for 30 years. Now I’m truly scared
http://www.guardian.co…/globaleconomy.creditcrunch

Treasury explains how it came up with $700 billion: We just wanted ‘a really large number.’
http://thinkprogress.org/2008/09/24/treasury-large-number/

Stocks rallied a day after failed $700B wallstreet bailout
http://money.cnn.com/2008..?postversion=2008093009

US will lose superpower status, claims German minister
http://www.telegraph.co.uk/finance/..-superpower-status-crows-Germany.html

$1 Quadrillion of Unregulated Debt At Core of Coming Derivatives Crisis
http://www.americanfreepress.net/html/coming_derivatives_crisis_150.html

China Banks Told To Stop Lending To U.S. Banks
http://www.reuters.com..PEK16693720080925

Refusing Dollar as “World Currency” Inevitable
http://capital.trendaz.com/index.shtml?show=news&newsid=1304435〈=EN

U.S. Heading for Slump, With or Without Bailout
http://www.bloomberg.com/apps/news..efer=home

Putin Promises $50Bln For Banks
http://www.themoscowtimes.com/article/1010/42/371301.htm

Dexia bank gets multi-nation $9.2B bailout
http://biz.yahoo.com/ap/080930/eu_belgium_dexia.html

Home Prices in 20 U.S. Cities Declined 16.3% in July
http://www.bloomberg.com/apps/news?.d=aEyKpTpk90C0&refer=us

Rothschilds and the Bank of England Own The Federal Reserve (JP Morgan, Rockefeller, Lehman Brothers, Warburg)
http://newsfromthewest.blogspot.com/2008/05/who-owns-federal-reserve.html

Chavez says U.S. can’t fix financial crisis
http://www.reuters.com/article/marketsNews/idUSLQ4692420080926

The Hanky Panky Banking Bailout Bill
Rep. Kaptur responds to Bush’s address on failed bailout bill
RBS will get ‘billions’ in US bail-out of economy
Jobless Claims Pushed To 7-Year High
Dow Drops 777 Points
680% Inflation?
Nasdaq tanks, down 6%
California Home Prices Drop Record 41% Amid Defaults
Rumors Trigger Bank Run In Hong Kong
New Home Sales Plunged 11.5% to 17-Year Low
Wachovia Stock Sinks On WaMu News

U.S. Economy Collapse News Archive

 



Ron Paul: Greenspan, Bernanke Should Be Criminally Charged

Ron Paul: Greenspan, Bernanke Should Be Criminally Charged

Paul Joseph Watson
Prison Planet
September 26, 2008

Congressman Ron Paul says that the bailout bill is likely to pass, heralding a 10-year plus economic depression for America and the potential for martial law should civil unrest arise as the financial meltdown worsens.

Speaking on The Alex Jones Show, Paul said of the bailout, “They want dictatorship, they want to pass all the penalties and suffering on to the average person on Main Street,” adding, “We will have a depression or recession, it’s locked in place due to previous Federal Reserve actions.”

“When they say that if we don’t do exactly as they say and turn over more of our money and more of our liberties and exempt themselves from any court in the whole nation, they’re trying to intimidate us and lead us into doing the wrong thing,” said Paul.

The Congressman added that serious problems would arise if nothing was done to address the problem, but that more serious consequences would follow should the bailout be passed.

Paul warned that the only question was whether the meltdown would last one year or ten years and how much liberty would be lost in that time frame.

“It looks like from I see in Congress, that they’re opting for a decade plus of depression rather than saying let’s correct our ways, let’s balance the budget, let’s bring our troops home,” said Paul, adding that the same course of printing money would continue – prolonging the agony and preventing a necessary correction.

Asked if civil unrest was a possibility in the midst of an economic depression, referencing a recent Army Times report concerning the use of active duty military being brought back from Iraq for “Homeland patrols” and “crowd control,” Paul questioned, “Are we going to have martial law or are we going to have more freedoms? The more problems that we have, the more likely it is that we’re going to have martial law, so I do think they anticipate and they plan for these things.”

Asked if criminal investigations and prosecutions of individuals on Wall Street should commence, Paul agreed but said that the main target of criminal inquiry should be the Federal Reserve board itself because, “That’s where the fraud is.”

“They want to be lawless, they don’t want to be held accountable,” he added.

Paul said that grand juries should be convened to take on prosecutions rather than the FBI becoming involved, stating, “We have proper authority with that and experience with it and the Enron case is a good example.”

The Congressman said that Greenspan and Bernanke should be criminally charged but that such an effort would be largely symbolic. “Morally speaking, they’re the culprits,” said Paul.

Asked what his solution to the crisis would be, Paul said, “I think the most important thing to do is to send the message that we’re going to quit living beyond our means and the president can set the standard for that and he has the most control under the Constitution on foreign policy – he can say no more wars, we’re done with the wars, we’re not going to take on the Russians, we’re not going to take on people in Venezuela, we’re going to start talking to the Cubans and bring our troops home and save hundreds of billions of dollars – that would send a powerful message that the dollar would respond to and oil prices would come down.”

Paul said that Americans had to accept a new idea of government that harked back to what the founders envisaged and that the welfare state would have to unravel along with aspirations of building a geopolitical empire.

“In the meantime the policy ought to be – shrink the size of government, decrease regulation, work towards sound money, remove the authority of the Fed to create money out of thin air and get tax reduction,” stated the Congressman. Paul added that eliminating the income tax would mean everybody becoming a lot richer and more money would be ploughed into the economy.

“It will not solve the problem, it just delays the inevitable,” said Paul of the bailout, adding that he expects the bill to pass in a move that would, “Defy the American people.”

“I think they get to the point where they think they’re like God and can control everything and they don’t realize that the market really is more powerful than all the bankers and all the politicians….Ultimately the underground economy is the real economy and I think they could over step themselves and hopefully we could come out with a better world afterwards,” concluded the Congressman.

 

Ron Paul Grills Bernanke on Wallstreet Bailout

http://www.youtube.com/watch?v=dv6rQ0U01Yc

 

Paul: ‘I could never support somebody who thinks that it’s funny to say bomb bomb bomb Iran.’

Think Progress

September 18, 2008

On MSNBC today, Rep. Ron Paul (R-TX) explained to host Norah O’Donnell that he refused former Sen. Phil Gramm’s entreaties for him to endorse Sen. John McCain (R-AZ) because he disagrees with him “on all the major issues,” especially foreign policy. “I mean I could never support somebody who thinks that it’s funny to say ‘bomb bomb bomb Iran,’” said Paul. “That, to me, is not somebody that I could endorse ever.” Watch it:

http://www.youtube.com/watch?v=mOb3cC2FVIg

 



WaMu: The Biggest Bank Collapse In U.S. History

WaMu: The Biggest Bank Collapse In U.S. History

TOP News
September 26, 2008

In what is being termed as the biggest bank collapse in US history, J.P.Morgan Chase & Co. will acquire massive branch network and troubled assets from Washington Mutual Inc. for $1.9 billion, as per a deal arranged by federal regulators. Under the deal – the latest stunning development in the ongoing credit crisis – J P Morgan Chase will acquire all the banking operations of Washington Mutual, including $307 billion in assets and $188 billion in deposits.

Washington Mutual had been one of the most hard-hit banks during the financial crisis after it bet big, like many of its competitors, on the strength of the housing market – only to see its fortunes sour as housing prices fell. Many analysts were speculating that the endgame for the embattled savings and loan was imminent, particularly after ratings agency downgrades this week, and a freefall in the company’s stock.

As a result of the Washington Mutual acquisition, the New York City-based J P Morgan Chase – after its mid-March acquisition of investment bank, Bear Stearns – will now boast some 5,400 branches in 23 states. “We think it is a great thing for our company,” said Jamie Dimon, J P Morgan Chase Chairman and CEO, in a conference call with investors late Thursday night.

Federal regulators who helped in finalizing the deal said the transition for Washington Mutual customers would be “seamless.” In a statement, FDIC Chairman, Sheila Bair, said: “There will be no interruption in services and bank customers should expect business as usual come Friday morning.”

The acquisition might prompt criticism from J P Morgan Chase rivals about preferential treatment by the government. For instance, no government assistance was extended to Bank of America Corp. in its recently announced purchase of Merrill Lynch. However, in the case of Washington Mutual acquisition, there were presumably other bidders who, in comparison to J P Morgan Chase, offered better deal for the deposits and branches.

The fall of Washington Mutual is the latest turn in a dizzying fortnight that has seen the bankruptcy of Lehman Brothers, the acquisition of Merrill Lynch by Bank of America (BAC, Fortune 500) and the near collapse of insurance giant AIG (AIG, Fortune 500). In fact, Washington Mutual has set a ‘record’ of sorts – it is the 13th bank to fail so far this year, and earns the title of the country’s ‘largest bank failure’ by assets on record, surpassing Continental Illinois’ $40 billion in assets when it failed in May of 1984.

Washington Mutual Is The 13th Bank To Fall This Year
http://www.fdic.gov/bank/individual/failed/banklist.html

 



Paulson’s former firm to be among largest beneficiaries of bailout

Paulson’s former firm to be among largest beneficiaries of bailout

John Bryne
Raw Story
September 23, 2008

It certainly pays to be Treasury Secretary if your former firm is a brokerage house, a new study says.

Goldman Sachs Group — formerly run by Treasury Secretary Henry Paulson, and Morgan Stanley, stand to be among the biggest beneficiaries of a $700 billion US bailout.

“Its benefits, in its current form, will be largely limited to investment banks and other banks that have aggressively written down the value of their holdings and have already recognized the attendant capital impairment,” Jeffrey Rosenberg, Bank of America’s head of credit strategy research, wrote in a report obtained by Bloomberg News yesterday.

Paulson was the head of Goldman Sach’s investment banking division from 1990 to 1994. He later became chairman and chief executive officer of Goldman, and left his post to join the Bush Administration.

According to the study, the bailout benefits Paulson’s former firm more because banks haven’t had to write down as many troubled mortage assets under accounting rules. This means that participating in the program would cause them to actually lose capital, as opposed to investment banks, which stand to gain.

Paulson $700 billion program is designed to remove “bad assets” from the US financial markets to prevent credit for businesses from drying up, which would send the economy into a further tailspin. Many businesses rely on credit to fund their daily operations.

Lawmakers are debating the plan today.

“While Goldman and Morgan Stanley, both based in New York, were yesterday granted permission to transform themselves into bank holding companies, the companies so far have operated mostly under investment-bank accounting rules, logging almost $21 billion of asset writedowns and credit losses,” Bloomberg News notes.

Goldman made sizable profits in 2007 from the subprime mortgage sector. It, along with Morgan Stanley, has fared better than investment houses Merrill Lynch, Lehman Brothers and Bear Stearns, because it has held a more conservative capital base.

Paulson has admirers: during his Goldman tenure the firm donated 680,000 acres of land in Chile, and he has personally given away $100 million of his fortune to charitable groups.

According to estimates conducted by Open Secrets, Paulson is the richest cabinet member of the Bush Administration.

Conflict Of Interest? Report Says Goldman Sachs ‘Among Biggest Beneficiaries’ Of Paulson’s Bailout
http://thinkprogress.org/2008/09/22/paulson-goldman-bailout/

 



White House Admits It Drew Up Bailout Months Ago

White House Admits It Drew Up Bailout Months Ago

George Washington’s Blog
September 24, 2008

No one could have seen this coming, right?

Well, actually, the White House has admitted that they drew up the bail out plan months ago:

[White House Deputy Press Secretary Tony] Fratto insisted that the plan was not slapped together and had been drawn up as a contingency over previous months and weeks by administration officials. He acknowledged lawmakers were getting only days to peruse it, but he said this should be enough.

But the government did nothing real to prevent the financial meltdown. Instead, it let the meltdown happen, and now is trying to ram through terrible and counter-productive legislation drafted previously by using fear tactics.

Does this sound familiar? It should.

 



Bailout: Not $700 Billion, More Like $5 Trillion

Bailout: Not $700 Billion, More Like $5 Trillion

Bei Hu
Bloomberg
September 24, 2008

Treasury Secretary Henry Paulson’s $700 billion plan to buy devalued assets from financial companies is “a joke” because it doesn’t go far enough to calm markets, said Kenichi Ohmae, president of Business Breakthrough Inc.

Ohmae, nicknamed “Mr. Strategy” during his 23 years as a McKinsey & Co. partner, called for a $5 trillion “international facility” to be made available to financial institutions. The system could be modeled on one used by Sweden during its banking crisis in the early 1990s, he said.

“This is a liquidity crisis,” Ohmae said at an investor forum hosted by CLSA Asia-Pacific Markets, the regional broking arm of Credit Agricole SA, in Hong Kong yesterday. “The liquidity has to be so big that people won’t get panicky.”

Paulson’s proposal to remove hard-to-sell assets clogging the financial system marks the broadest intervention since at least the Great Depression. Asian stocks fell today, following U.S. shares lower as investors questioned whether the effort is enough to prevent a recession.

The plan came after the collapse of 158-year-old Lehman Brothers Holdings Inc. and the government takeover of insurer American International Group Inc. caused financial markets to seize up last week. The calamity was the culmination of a year during which the U.S. housing market slump left banks and securities firms with more than $520 billion of asset writedowns and credit losses.

Read Full Article Here

 

NO To The Paulson-Bernanke Derivatives Scam Bailout

Webster G. Tarpley
September 24, 2008

WASHINGTON DC – The grand theft bailout now being rammed through Congress by Treasury Secretary Paulson, Federal Reserve Chairman Bernanke, and other officials of the Bush regime with the help of accomplices Pelosi, Majority Leader Harry Reid, and other parliamentarians is a monstrosity for the ages, combining every hideous feature of monetarism, elitism, oligarchism, and sheer feckless incompetence. It is to all intents and purposes a national suicide note of the United States of America, a contract with the devil that absolutely guarantees irrevocable national decline. For any person of goodwill there can be only one impulse at the present moment, and that is to stop this bailout — to block it, to sabotage it, to bottle it up, to load it with killer amendments, and to do everything legally possible to stop this insane design from going through.

IF MCCAIN VOTES AGAINST THE BAILOUT, HE WILL WIN THE PRESIDENCY

In political terms, McCain is now running well to the left of Obama on this issue, with a much stronger populist profile. McCain has attacked the outrageous greed and corruption of Wall Street. Obama does not dare attack Wall Street, since these are his masters. Obama, sounding like Milton Friedman, only attacks Washington. Obama has said that he will support whatever Paulson demands. That is not a surprise, since Paulson represents Goldman Sachs, and Obama is a wholly owned property of Goldman Sachs, which is his single biggest source of campaign contributions. Obama is a creature of Brzezinski, Soros, and Rockefeller, and without them he has no existence; Obama is an abject Wall Street puppet, an agent of finance capital. This week, both senators will have to decide how they vote on the odious derivatives bailout. Obama will surely vote in favor of it, since this is what Wall Street demands. If McCain votes against it, he will most probably propel himself into the White House on the model of Give ‘Em Hell Harry in 1948. Filthy corrupt Democrats like Schumer are already attacking McCain as the new Huey Long. Huey Long, the Louisiana populist of the 1930s, had many positive features, and we could certainly use a good dose of Huey Long in this country to counteract the elitism, oligarchism, condescension, and arrogant snobbery of foundation operatives like Obama. The bailout is already very unpopular 72% of all voters are opposed to it and it will become more and more hated when it becomes clear that it is also a failure. McCain’s course is clear. Will he have the brains and guts to cross Obama’s T on this vital issue?

PAULSON OF GOLDMAN SACHS, WOULD-BE FINANCE DICTATOR

Paulson is a ruthless and brutal eco-freak usurer who learned his trade at the Goldman Sachs stock-jobbing operation. He is now the leading member of the committee of public safety which rules in Washington, and which includes Gates, Rice, and Mullen. He now demands the astronomical sum of 700 billion dollars for the bailout of mortgage-backed derivatives, collateralized debt obligations, credit default swaps, and other poisonous derivatives. Make no mistake — this is not a bailout of homeowners who are threatened with foreclosure; it is a bailout of the lunatic house of cards which desperate bankers have built on these mortgages using derivatives. The entire crisis is not a crisis of subprime mortgages, it is a crisis of the derivatives bubble which was launched by Wendy Gramm of the Commodities Futures Trading Commission and Greenspan of the Fed with the connivance of Robert Rubin of Goldman Sachs and Citibank, and others in the Clinton administration, some 15 years ago.

These derivatives now amount to a total worldwide notional value that can be estimated between 1 quadrillion and two quadrillion US dollars. This sum is so large that it dwarfs the total value of the entire planet earth and all those who live here. Compared to the cancerous, bloated, and fictitious mass of derivatives which is at the root of this crisis, the $700 billion demanded by politicians, large as this may seem, is nothing but a drop in the bucket. And a drop in the bailout bucket is what it will be. The mass of world derivatives between $1 and $2 quadrillion represents an insatiable black hole which is capable of putting an end, not just to civilization, but the human life itself. The moral choice could not be clearer: humanity will either destroy the derivatives bubble in our time, or the derivatives bubble will surely destroy humanity. Those are the stakes in the current exercise.

Paulson and Bernanke, both lawyers for the Wall Street jackals, lampreys, vultures and hyenas, argue that the public interest demands a bailout of their cronies at Goldman Sachs, Morgan Stanley, J.P. Morgan Chase, Citibank, Bank of America, Wachovia, and the other large money center institutions. Before the American public antes up $700 billion just for openers in the game of genocidal poker which run by the infernal croupiers Paulson and Bernanke, we would be very well advised to examine the veracity of this premise.

Read Full Article Here

 

They Want Mama To Make it All Better! – Congresswoman Marcy Kaptur

http://www.youtube.com/watch?v=ANGsBNMY1_c

 

Rep Defazio On The Bailout Package

http://www.youtube.com/watch?v=ANGsBNMY1_c

Recent News:

Bernanke Admits Bailout is NOT Aimed at Helping Taxpayers
http://georgewashington2.bl..ke-admits-bailout-is-not-aimed-at.html

Real Estate Bigwig Zell Sees 2009 Recession
http://www.cnbc.com/id/26858394

Bailout Is Financial Equivalent Of The Patriot Act
http://www.iht.com/articles/2008/09/23/business/sorkin.php?pass=true

America Versus the Financial Elite
http://georgewashington2.blogspot.com/2008/09/america-versus-financial-elite.html

Fed Acted Like a Liquidity Drug Dealer: Economist
http://www.cnbc.com/id/26848829

’Punish’ those responsible for financial crisis: Sarkozy
http://afp.google.com/article/ALeqM5iQvXaV8mO0SRtfD9FEWqf4Vyrzrg

FBI ‘Probe’ Into Mortgage Giants
http://uk.news.yahoo.com/skynews/20080924/twl-fbi-probe-into-mortgage-giants-3fd0ae9.html

Iran Leader Says American Empire Near Collapse
http://ap.google.com/article/ALeqM5iRcJGft_Pr8uMaY1Bz9ieBSwBNTgD93CMVM80

US Fed throws $30 billion into foreign credit markets
http://afp.google.com/article/ALeqM5itOHJbNrxCHKetPtXIPIbY3TalIQ

China Paper Calls For A New Financial Order Without U.S.
http://www.reuters.com/article/ousiv/idUSPEK4365020080917?sp=true

Top Economist Mishkin: Worse Than the Depression
http://www.cnbc.com/id/26850473

Lehman’s Bankruptcy and the Hidden $138 Billion Bailout of JP Morgan
http://www.cnbc.com/id/26850473

Eveillard Says Gold May Surge as Investors Seek ‘Insurance’
http://www.bloomberg.com/apps/news?pid=20601213&sid=a8L00oInO1YM&refer=home

Wachovia, JPMorgan, Wells Fargo tumble
http://www.reuters.com/article/email/idUSN2231756020080922

Goldman, Morgan Stanley Bring Down Curtain on an Era
Goldman Sachs to be regulated by Fed
Fury at U.S. Lehman Brothers’ staff who could net £1.4bn in bonuses as UK employees face bleak future
Europeans on left and right ridicule U.S. money meltdown
Paulson On Verge Of Historic New Powers
Fed To Supervise Goldman And Morgan

U.S. Economy Collapse News Archive

 



Ron Paul: This Bailout Won’t Be the Last

Ron Paul: This Bailout Won’t Be the Last

http://www.youtube.com/watch?v=sZwPkTmqfpg

 

Ron Paul on CNN w/ John Roberts

http://www.youtube.com/watch?v=1sfUKZOHtRs

 

Ron Paul Blasts “Secret Government” Running Economy

http://www.youtube.com/watch?v=d73KlhUq1W8

 



Bush Administration Seeks “Dictatorial Power”

Bush Administration Seeks “Dictatorial Power”

GETA
September 21, 2008

The Bush administration sought unchecked power from Congress to buy $700 billion in bad mortgage investments from financial companies in what would be an unprecedented government intrusion into the markets.

“He’s asking for a huge amount of power,” said Nouriel Roubini, an economist at New York University. “He’s saying, `Trust me, I’m going to do it right if you give me absolute control.’ This is not a monarchy.”

Paulson is seeking an expansion of federal influence over markets that hasn’t been seen since the Great Depression, said Charles Geisst, author of “100 Years of Wall Street” and a finance professor at Manhattan College in New York.

“This is going to be a big package because it’s a big problem,” Bush said following a meeting with Colombian President Alvaro Uribe at the White House. “We need to get this done quickly, and the cleaner the better.”

Democratic presidential nominee Barack Obama said in a radio address that he “fully supports” Paulson and Fed Chairman Ben S. Bernanke’s efforts to stabilize the financial system. The plan, however, should benefit both main street and Wall Street, he said.

Republican Presidential nominee John McCain “looks forward” to reviewing the proposal while focusing at least in part on “minimizing the burden on the taxpayer,” said Jill Hazelbaker, communications director for the McCain campaign.

The Bush administration seeks “dictatorial power unreviewable by the third branch of government, the courts, to try to resolve the crisis,” said Frank Razzano, a former assistant chief trial attorney at the Securities and Exchange Commission now at Pepper Hamilton LLP in Washington. “We are taking a huge leap of faith.”

Read Full Article Here

 



China Blames Wallstreet Meltdown On Fed Overissuance Of Currency

China Blames Wall Street Meltdown On Fed Overissuance Of Currency

Paul Joseph Watson & Yihan Dai
Prison Planet
September 19, 2008

China’s state media today reports on the real reason behind the Wall Street meltdown and a subject that the mainstream US media dare not mention – the Federal Reserve’s overissuance of currency – which the Chinese say is part of a wider agenda to justify increased control over the global economy.

The Bush administration today announced a plan to use hundreds of billions of dollars of taxpayer money to buy up up bad mortgages and other debts. The process of injecting more fiat money into an already over-inflated system had the desired effect – the Dow Jones shot up 450 points – but the dollar, following a brief jump, began to plummet.

According to numerous Chinese state media news sources today, the Federal Reserve’s continued zeal for propping up the market by injecting illusory liquidity is part of an agenda to gain trust and grease the skids for increased government intervention in financial markets.

China Finance , China News and Chaobao Financial News, all state owned media outlets, slammed the Fed for taking action that will only make long term economic conditions worse and devalue the dollar by “creating money that does not exist which leads to the inflation of liquidity,” a policy contrary to China’s position as a holder of vast reserves of US dollars.

The analyst quoted by Chaobao Financial News highlighted “that when there is market failure, the paramount purpose of government intervention should be saving the market for the benefit of the people: Relief, Recovery and then Reform,” and that “Protecting the rights of people who are suffering in the housing market and as a result of high oil prices should be treated as a priority.”

The analyst added that by concentrating on saving just a few large financial companies, the Fed is creating wider financial chaos while arousing anger and suspicion by “only protecting and encouraging large companies’ wrong doing.”

CEIBS Professor of Economics and Finance Xu Xiaonian told a conference yesterday that “The fundamental source of Wall Street’s meltdown is caused by Federal Reserve overissuing currency.” He cautioned that the US government has already exceeded its scope in terms of intervention compared with their usual policy.

Similar sentiments were echoed by economist Zuo Xiaolie, who said that the amount of money injected into the market will have little real impact, but that such measures are a “Narrow minded way that the Federal Reserve uses to diversify the pressure of currency adjustment to other countries, which leads to the devaluation of the dollar, causing imbalance in the global economy.”

“The amount of money that has been put into the market can not fundamentally save the market,” said Xiaolie, adding that the move was merely part of an agenda to “regain the trust and justify future further intervention in the economy.”

On Wednesday, China’s official People’s Daily newspaper, the voice of the ruling Communist party, said that the US had unleashed economic “weapons of mass destruction” and set off a “financial tsunami” by allowing Wall Street lenders to trade in subprime debts and unstable financial derivatives, according to a Press TV report.

China has previously threatened to liquidate its vast holding of US treasuries, amounting to $1.33 trillion, if Washington imposes trade sanctions to force a yuan revaluation. The Communist power has also repeatedly expressed its anger at the Fed’s indifference to the weakening dollar. If China were to dump the dollar it would likely set in motion a chain of events that would lead to a collapse of the greenback.

We know we are in trouble when the Chinese Communist Party sound like bastions of sound money policy and fiscal conservatism in comparison to the Bush administration and the Federal Reserve, who in creating more money out of thin air continue to bail out their friends on Wall Street while the economic future of hundreds of millions of American citizens is sold down the river.

China accuses U.S. of financial Weapons of Mass Destruction
http://www.presstv.ir/detail.aspx?id=69805&sectionid=351020404

 



The 12th Bank Collapse This Year

The 12th Bank Collapse This Year

CNN

September 20, 2008

Ameribank Inc. was shut down on Friday by the Office of the Thrift Supervision, making it the 12th bank this year to go under.

The Northfork, West Virginia bank had total assets of $115 million and total deposits of $102 million, according to a statement on the Federal Deposit Insurance Corporation Web site.

The FDIC was named receiver and announced that it entered into purchase and assumption agreements with Pioneer Community Bank, Inc., Iaeger, West Virginia, and the Citizens Savings Bank, Martins Ferry, Ohio, to take over all of Ameribank’s deposits.

Ameribank has five branches located in West Virginia and three branches located in Ohio. Branches in West Virginia will reopen on Monday and Ohio branches will reopen on Saturday.

All customer accounts were automatically transferred to the two new banks and the full amount of their deposits will automatically be insured, the FDIC said.

Customers of the banks can still access their money over the weekend by writing checks or using ATM or debit cards, according to the statement by the FDIC.

Read Full Article Here

Ross: 1,000 More Banks Will Fail
http://www.cnbc.com/id/26710362

UK: More Banks Will Fail
http://209.85.173.104/search?q..1&gl=us

List of Failed Banks
http://www.fdic.gov/bank/individual/failed/banklist.html

 



U.S. Taxpayers Paying To Bail Out Foreign Banks

U.S. Taxpayers Paying To Bail Out Foreign Banks

George Washington’s Blog
September 21, 2008

We all know that the Fed is trying to stick the American taxpayers with trillions of dollars in debt (direct or through inflation) to bail out the Wall Street robber barons.

But did you know that they are also trying to get you to bail out foreign gamblers?

An article in the Telegraph states:

“The Fed has also just offered another $125bn of liquidity to banks outside the US that are desperate for dollars and can’t access America’s frozen credit markets”

Another” $125 billion? How much has the Fed already given to foreign banks?

Why are American taxpayers who are already drowning in debt due to U.S. gamblers also being asked to also bail out foreign speculators?

This isn’t a pro-America anti-everyone-else post. If I lived in England, or Canada or Japan, I would resent being asked to bail out America, too.

 

Central Banks Offer Extra Funds to Calm Money Markets

Bloomberg
September 18, 2008

The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the aftermath of the 1929 Wall Street crash.

The Fed increased the amount of dollars that the European Central Bank, the Bank of Japan and other counterparts can offer from $67 billion “to address the continued elevated pressures in U.S. dollar short-term funding markets.’’ The Bank of England, the Bank of Canada and the Swiss National Bank also participated. Several of them lent funds in their own currencies as well with the Fed adding a record $105 billion in temporary reserves.

Policy makers have struggled to revive confidence in markets this week as investors stockpiled money on concern more financial institutions would fail after the bankruptcy of Lehman Brothers Holdings Inc. and the U.S. government bailout of American International Group Inc. The cost to hedge against losses on U.S. government debt climbed to a record yesterday.

“There’s a complete lack of faith in the markets,’’ said Jim O’Neill, chief economist at Goldman Sachs Group Inc. in London. “There’s a lot of cash hoarding and people losing trust in banks, so the central banks are acting to relieve that. This might not be the last time they have to act.’

Paulson: Foreign banks can use U.S. rescue plan
http://news.yahoo.com/s/nm/20080921/bs_nm/financial_bailout_paulson_dc

Bailout Eligibility Expanded to Foreign Institutions
http://calculatedrisk.blogspot.com/..oreign.html

 



Socialist Dictatorship: Taxpayers to Pay $700B Bailout

U.S. Treasury Proposes $700B Bailout Plan For Wallstreet

Reuters
September 20, 2008

The Bush administration proposed a $700-billion taxpayer-funded plan on Saturday to buy up toxic mortgage-related securities in an urgent effort to calm financial markets and attack the nation’s housing crisis.

Under the program, the U.S. Treasury Department would buy, or commit to buy, “mortgage-related assets from any financial institution having its headquarters in the United States,” said a copy of the Treasury Department’s draft legislation obtained by Reuters.

The department could hire asset managers to handle the securities, which could include residential or commercial mortgages and related instruments that were originated or issued on or before September 17, 2008, the draft said.

Congressional committees were to be briefed on Saturday on the legislation, which could be considered by the U.S. House of Representatives and Senate as early as next week.

The plan also calls for raising the federal government’s borrowing authority to $11.315 trillion. The debt limit is currently $10.615 trillion.

The government is moving aggressively to soak up billions of dollars of hard-to-sell mortgage-backed securities and related assets that have been choking world capital markets since the bursting of a historic U.S. home price bubble.

 

We Have DAYS To Stop the $700 Billion Stick-Up (and Fascist Power Grab)

George Washington’s Blog
September 21, 2008

Congress hopes to pass the $700 Billion bailout bill by Friday, according to an article in Bloomberg.

In case you haven’t heard, the bill would not only stick up American taxpayers for an additional $700 billion, but would literally give Paulson and the government fascist powers.

Don’t believe me?

Well, as the Bloomberg article notes: “The bill would bar courts from reviewing actions taken under its authority.”

Bloomberg includes the following quotes by people who understand the significance of the bill:

It sounds like Paulson is asking to be a financial dictator, for a limited period of time,” said historian John Steele Gordon . . . .

***

The Bush administration seeks “dictatorial power unreviewable by the third branch of government, the courts, to try to resolve the crisis,” said Frank Razzano, a former assistant chief trial attorney at the Securities and Exchange Commission now at Pepper Hamilton LLP in Washington. “We are taking a huge leap of faith.”

This power grab is so serious that investigative reporter Larisa Alexandrovna calls it “the final stages of the coup“.

We have days to stop this bill. March on Congress. Educate and motivate everyone around you. Do everything you can to prevent this disaster before it is too late.

 

Krugman: ’Look, this is really scary. This is really bad, This could be 1931’

http://www.youtube.com/watch?v=FKMy8pf9qY8

 

Keiser: US dollar “backed by bananas”

http://www.youtube.com/watch?v=Vhf9KwSUQYw

Recent News:

7 percent of U.S. voters back bailouts
http://www.bizjournals.com/phoenix/stories/2008/09/15/daily63.html

Bush Compares Financial Crisis To 9/11
http://thinkprogress.org/2008/09/19/bush-economy-terrorist/

Nobel Prize Winning Economist: Crisis As Bad As Great Depression Or Worse
http://www.prisonplanet.com/nobel-p..epression-or-worse.html

The Market is Now Pricing In the Genuine Possibility that the US will Default on Its Debt
http://georgewashington2.blogspot..-pricing-in-genuine.html

Fury at $2.5bn Lehman bonus
http://business.timesonline..nd_finance/article4795072.ece

Almost Armageddon: Markets Were 500 Trades From Meltdown
http://www.nypost.com..armageddon_130110.htm

Bailout plan is vast patronage under cover of martial law
http://www.gata.org/node/6647

Dodd: US financial system near meltdown
http://www.presstv.ir/detail.aspx?id=70011&sectionid=3510203

Reid Says `No One Knows What to Do’ to Solve Crisis
http://www.bloomberg.com/..VWYw&refer=home

U.S. to Sell $100 Billion in Bills to Fund Fed Moves
http://www.bloomberg.com/apps/news?pid=20601087&sid=aQ58hpS0fRH8&refer=home

‘Tent Cities’ Spring Up In The US
http://uk.news.yahoo.com/sk..es-spring-up-in-the-us-3fd0ae9.html

Central Banks Offer Extra Funds to Calm Money Markets
http://www.bloomberg.com/apps/news?pid=20601068&sid=aW2z_iiBnF2E&refer=home

U.S. Turning Into U.S.S.R.A
http://www.presstv.ir/detail.aspx?id=69774&sectionid=3510203

Worst Crisis Since ’30s, With No End Yet in Sight
http://finance.yahoo.com/banking-..-No-End-Yet-in-Sight

Federal bailout of U.S. auto industry
http://www.cyclelicio.us/2008/09/federal-bailout-of-us-auto-industry.html

The Fed Runs out of Money
http://ftalphaville.ft.com/blog/2008/09/17/16019/the-feds-run-out-of-money/

No bank is safe in this alarming atmosphere
http://business.theage.com..phere-20080917-4inu.html

Dollar Might Get Crushed
Hundreds of Lehman investors protest in Hong Kong

U.S. Economy Collapse News Archive