I was listening to Ktalk 1150am a couple of days ago and felt compelled to call into The Nancy Skinner Show as she was asking the people what we would do about Chrysler being held hostage by JP Morgan Chase on a loan taken out in 2007 by the U.S. automaker. I understood this to be a very intricate issue of great importance. Yet did not feel it's full impact was being relayed nor the scheduled protests mentioned being enough to bring about the awareness needed. As this was my first time calling a talk radio host I was not prepared to summarize everything in one sentence. Having me disconnected as it was taking me too long to break it all down and in the rush was not as coherent as I would have liked. Before disconnecting she had requested that I e-mail the info it was taking so long to spill out, stating that I was off topic of the show and she would really like to stick to it. By the way Nancy, no hard feelings there are definitely not enough hours in the day. So below is the response that I sent to show her just how relevant the point I was making actually was. Enjoy!
The main point I was attempting to reach was that I do agree with shutting down your Chase accounts (Nancy Skinner). However I don't think it should stop there. We are at a time very similar to that of the pre - Great Depression era. Where some of the largest shifts in power of the financial sector had taken place. I'm sure we agree in the mistake made in passing The Gramm-Leach-Bliley Act. It was this bold and calculated deregulation that fostered the current financial crisis that we are in. My suggestion for us all at this point is to look at how all of these bailouts correlate to eachother. I understand this point was a tad too broad for the topic of your show that day. However it is definitely more relevant than most of us would choose to think. There is also cause for great concern, if consumers do not use the sole power they have as consumers we all will all fall victim to bureaucratic vices. I also understand that may be a whole lot to fathom from a mere caller so below I have included quotes from what one would say are more credible sources warning of these perils.
Before I do so I would like to mention that JP Morgan & Chase have no allegiance to the American public or any American business, including Chrysler. Naturally it makes more sense to them to attempt to retrieve 100% of their money versus the 33 cents on the dollar the Obama administration had requested they take. If they have credit default swaps in place then it is incumbent to ask ourselves why are they not more willing to help save the 300,000 jobs that will be lost as a result of Chrysler filing bankruptcy and forced to liquidate? If I were a board member in association with Chase I would not like to accept pennies on the dollar either after I just had to press for a $25 billion bailout for ourselves, due to our own financial hardship. Which is why we have to ask and inquire more into the underlying issues. I can guarantee you that the bailouts were all carefully orchestrated plans to force the hand of governments and tax-payers to pay money they would never agree to pay under any other circumstances.
I would not be the first to point out how all this works & ties together. However I may be the first in this context, so bear with me. Their is an economic war on the people taking place as we speak and although many have seen documentaries pointing this out such as Zeitgeist, it doesn't really seem like any of us had done any follow up research on our own to see how that information relates to our current economic equation. In order to fully understand what has been going on the past couple of years really requires time, patience, and a refresher course on economic political history. Merely accepting the official roles and official statements of these dealings are unacceptable as any purveyor of the last century would see the history repeating itself. Not just in the sense that we are leading to a depression but more so the circumstances behind it.
Even with deregulation there are still over-site entities to serve as watch dogs over these banking institutions, namely the Federal Reserve Bank and the FDIC. Just so we are both clear on how they operate. The Board of Governors is the part of the Federal Reserve System that is responsible for supervising the private banks. The Board also plays a major role in the supervision and regulation of the U.S. banking system. It has supervisory responsibilities for state-chartered banks that are members of the Federal Reserve System, bank holding companies (companies that control banks), the foreign activities of member banks, the U.S. activities of foreign banks, the Edge Act and agreement corporations (limited-purpose institutions that engage in a foreign banking business). The Board under delegated authority through the Federal Reserve Banks, supervise approximately 900 state member banks and 5,000 bank holding companies. Other federal agencies also serve as the primary federal supervisors of commercial banks; the Office of the Comptroller of the Currency supervises national banks.
Some regulations issued by the Board apply to the entire banking industry, whereas others apply only to member banks, that is state banks that have chosen to join the Federal Reserve System and national banks, which by law must be members of the System. The Board also issues regulations to carry out major federal laws governing consumer credit protection , such as the Truth in Lending, Equal Credit Opportunity, and Home Mortgage Disclosure Acts. Many of these consumer protection regulations apply to various lenders outside the banking industry as well as to banks.
The FDIC has the authority to regulate and supervise state non-member banks; it extended federal oversight to all commercial banks for the first time, and prohibited banks from paying interest on checking accounts. President Franklin D. Roosevelt was personally opposed to insurance because he thought it would protect irresponsible bankers, but yielded when he saw Congressional support was overwhelming. The Federal Deposit Insurance Act of 1950 gave the FDIC the authority to lend to any insured bank in danger of closing if the operation of the bank is essential to the local community, and authorized the FDIC to examine national and state member banks for their insurance risk. Funny how state non-member banks don't seem to asking for bailouts....Hmmm!
As an independent institution, the Federal Reserve System has the authority to act on its own without prior approval from Congress or the President. Each reserve bank is organized much like a private corporation so that it can provide the necessary revenue to cover operational expenses and implement the demands of the board. Member banks are privately owned banks that must buy a certain amount of stock in the Reserve Bank within its region to be a member of the Federal Reserve System. This stock "may not be sold, traded, or pledged as security for a loan" and all member banks receive a 6% annual dividend. The dividends paid by the Federal Reserve Banks to member banks are considered partial compensation for the lack of interest paid on the required reserves.
The board of directors of each Federal Reserve Bank District also have regulatory and supervisory responsibilities. For example, a member bank (private bank) is not permitted to give out too many loans to people who cannot pay them back. This is because too many defaults on loans will lead to a bank run. As a result of the current economic and financial crisis, over 30 U.S. banks have become insolvent and have been taken over by the FDIC since 2008. Combined, these banks held over $55 billion in deposits, and the takeovers cost the federal government an estimated $17 billion?
There has been considerable debate over a lack of transparency as to what is discussed in Federal Open Market Committee meetings. Since the FOMC sets monetary policy, which affects the entire U.S. economy, many people feel myself included that it is important to know what the FOMC is doing. They consult with both the U.S. Treasury and the Fed about funding the budget deficit and implementing monetary policy. Between them, these dealers purchase the vast majority of the U.S. Treasury Securities sold at auction, and resell them to the public Arguably, this group's members are the most influential and powerful non-governmental institutions in world financial markets.
The primary dealers form a worldwide network that distributes new U.S. government debt. For example, Daiwa Securities and Mizuho Securities distribute the debt to Japanese buyers. BNP Paribas, Barclays, Deutsche Bank, and RBS Greenwich Capital (a division of the Royal Bank of Scotland) distribute the debt to European buyers. Goldman Sachs, and Citigroup account for many American buyers. Nevertheless, most of these firms compete internationally and in all major financial centers.
The 19th century economy of the United States was characterized by occasional bank panics, with corresponding economic downturns and unemployment. Sound familiar? Although deposit security measures were adopted over time at the state level, the federal government chose to establish the Federal Reserve System in 1913. This combined state-federal system failed to prevent a bank panic in 1933. The panic saw 4,004 banks closed, with an average of $900,000 in deposits. Under the Federal Reserves supervision, these banks were merged into stronger banks. Sound familiar? This at the time was the largest money grab in history as established international bankers that not only caused the panic but were also board members, founders and stockholders of the Federal Reserve Bank and purchased these banks for pennies on the dollar! Nothing happens without the knowledge or the okay of the federal reserve and their policies.
We should do away with the Federal Reserve which is not an actual department of government and pay our taxes directly to the Dept of treasury. As these taxes simply pay only for the interest we accumulate from the borrowed money the Federal Reserves loans to us. The entire private member banking system is making money hand over fist by their mastery of market manipulation. Critics argue that the Fed lacks accountability and transparency, and that there is a culture of secrecy within the Reserve. They criticized the Federal Reserve System’s expansionary monetary policy in the 1920s, arguing that the policy allowed misallocations of capital resources and supported a massive stock price bubble.
The Fed produces the money through the U.S. Mint at interest before we touch it. The member banks issue the money and extend credit through the economy. These same member banks produce bank runs by intentionally loaning money to the not-so-credit worthy. Not only creating inflation but the devaluation of major corporations, creating opportunities for well-off bond holders of these member banks to literally steal these business for what? Pennies on the dollar! What corporations are not purchased are forced into bankruptcy and assets liquidated to repay the debt they owe the same member banks that caused the market shift to begin with. For example five notable changes have occurred in 2008. Countrywide Securities Corporation was a member of the Fed removed on July 15 due to its acquisition by Bank of America, who is also a member of the Fed. Lehman Brothers Inc. an original stockholder of the Fed was removed on September 22 due to bankruptcy. Bear Stearns & Co. Inc. was removed from the list on October 1 due to its acquisition by J.P. Morgan Chase. On February 11, 2009, Merrill Lynch Government Securities Inc. was removed from the list due to its acquisition by Bank of America. These were huge power grabs.
In times of market instability consumers cut spending, banks tighten on credit lending, stock prices plummet, trade slows, foreclosures & repossessions rise as people can not sustain simultaneous inflation with job cuts and pay cuts. Businesses fold or lose considerable value as they also can not sustain simultaneous inflation with drastic drops in consumer spending, rising insurance costs and the inability to borrow money to cover payroll. Forcing mass lay-offs, reduction of locations and the banks make their money anyway it goes, either through payment or liquidation combined with credit default insurance. In most cases it is better for people to default than to pay as the payments made before the default are unrecoupable and and the banks still reap the value of the liquidation. Essentially doubling the money they normally would've collected. Hence the reason and benefit of the housing bubble created throughout the last couple of years. It's simply astonishing the amount of influence the banking system has over our lives.
Needless to say the inflation that will be taking place in the face of all this will have a staggering affect on the economy and tax payer as a whole. Lenders lose because they will be repaid with dollars that aren't worth as much. Causing them to increase interest rates to off set losses. Price inflation makes workers worse off if their incomes don’t rise as rapidly as prices. Pensioners living on a fixed income are worse off if their savings do not increase more rapidly than prices. Savers lose because the dollar they save today will not buy as much when they are ready to spend it. Businesses and people will find it harder to plan and therefore may decrease investment in future projects. Owners of financial assets suffer. Interest rate-sensitive industries, like mortgage companies, suffer as monetary inflation drives up long-term interest rates and Federal Reserve tightening raises short-term rates. Since one of the stated goals of monetary policy is maximum employment, the unemployment rate is a sign of the success or lack thereof of the Federal Reserve System.
Which brings me to the bailouts. JP Morgan and Chase are stockholders of the Federal Reserve. Every national bank including Bank of America and Wells Fargo are member banks and by default stockholders as well the receive an annual 6% payout from the Fed and required to pay 3% of their earnings to fund the Fed. Now keep in mind that the money in circulation is loaned to us at interest before we touch it. Through deregulation the banking system over extended itself credit wise, intentionally lessening the value of sky rocketing home prices, stocks and other lending institutions, merging with those of value to them and dissolving the competition of lenders not affiliated in the network. Right there in that last sentence I named 3 major industries affected by their abuse of market manipulation. Not including the auto sales affected, major retail chains affected and huge state/national deficits created.
As state and federal funding lessens our social, health care and education programs are the first affected. It's just an ongoing ripple effect that continues to worsen in a non-stop downward spiral. These bankers have been legally embezzling the profits their companies produce through bonuses, fixing the books to assume debt on the left-over profits and are using the tax-payer to pay for them to do it again. Giving them as individuals additional financial power to foster immense wealth in short periods of time.
The funds used in the bailout will allow them to purchase considerable amounts without using their own money. When you really look at it, it's brilliant. If it weren't so cunning and damaging to our society it would be intellect to be praised. Hence the mentality of the bonus structure having to keep the greatest minds around. Mainstream media and public look at these people as buffoons who didn't know what they were doing, not worthy of any praise. And they're not, however the power grab of the Great Depression pales in comparison to this one. Which would force the respect of any intellectual in the know.
Holding stock in a Federal Reserve bank is not however, like owning publicly traded stock. The stock cannot be sold or traded. Member banks receive a fixed, 6 percent dividend annually on their stock, and they do not directly control the applicable Federal Reserve bank as a result of owning this stock. They do, however, elect six of the nine members of Reserve banks’ boards of directors! Thus potentially giving them that power anyway. Every national bank in any State shall, upon commencing business or within ninety days after admission into the Union of the State in which it is located, become a member bank of the Federal Reserve System by subscribing and paying for stock in the Federal Reserve bank of its district in accordance with the provisions of this chapter and shall thereupon be an insured bank under the Federal Deposit Insurance Act.
Once again keep in mind that our money is loaned to us at debt and the only way we can re-pay that debt is to produce more money, which produces more debt and more debt and more debt! The major banks that received bailout funds will receive a 6% annual return on all the profit produced by money distributed through the Federal Reserve. The Fed supplied the bail out funds, which must be re-paid by the tax-payer, essentially tacked on to the already existing deficit. In addition to receiving the bailout money and the normal revenues accumulated in business, these banks will also receive a 6% annual pay out on the profits produced by the Fed on all the money generated to pay for the bailouts.
So in reality they are even making money on borrowing money, whereas everyone else is forced to the opposite. We can only borrow money that we pay back in interest. However by not only borrowing but repaying the debt they stand to make money! They single handily have the power to bankrupt our entire nation. So they are holding the whole United States of America and virtually the world at hostage, not just Chrysler. They have the complete potential to not only influence the market or economy but the power to influence policy as well with these capabilities. Which is simple yet too complex to break down in one sentence. In which I was attempting to do for your show. I realize it wasn't presented too fluently. You would be surprised at how many of these institutions are also corporate members of the Council of Foreign Relations as well.
I urge you to look in these matters and help spread the word for people to do the same. Britain's who have the same monetary system and banks controlling their lives, took to the streets in protest of these banks at the G20 Summit last week (4/3/09). I have a detailed article on the subject you can find on my web-site entitled, "What Happened at the G20 Summit?" The only way we as a people will be able to bring these bankers down to our level in a non-violent manner would be to utilize our powers as consumers and citizens to form a non-violent protest promoting that people stop paying on any credit debt they possess immediately. Good luck to these banks foreclosing on millions of houses, repossessing millions of cars and suing everyone in court! The likelihood of a protest of this magnitude must become a reality to get some kind of grip on our lives and national foreign policy. It's necessary to battle the widespread corruption in our politics and also necessary to stabilize our economy.
The Fed holds at least $515 billion of the national debt. The fact that our Treasury itself is in debt to the Fed The $46.7 billion in Treasury liabilities shows that the Treasury Department does not use private banks but rather uses the Fed directly. The Federal Reserves job is to protect the credit rights of consumers, to manage the nation's money supply stable prices, including prevention of either inflation or deflation. To maintain the stability of the financial system and contain systemic risk in financial markets. I ask you have they done any of that? To strengthen U.S. standing in the world economy, I ask you have they done that? It is much easier to give money to yourself than it would be for you to take money from yourself. Hence the reason you see banking institutions not having any problems in receiving their own bailout but you will definitely see a problem in relation to future help for any other types of organizations that are not directly affiliated with the Council of Foreign Relations, or the Federal Reserve.
My argument would be that the Federal Reserve is an unnecessary and middleman, counterproductive interference in the economy and if not completely done away with it needs to at least be revamped. The natural laws of supply and demand can regulate interest rates on their own. Bank of America raising rates, eliminating customers, tightening credit after receiving a $45 billion bailout? What's wrong with this picture? That's exactly the position Chrysler is in right now.
Some critics state that the Federal Reserve System is unconstitutional because Congress is empowered by the Constitution to coin money, and is not empowered to print money. One reason why I may agree with you in needing to keep the Fed would be that in times of surplus they do contribute billions of dollars to the Treasury, however I'm sure they are other ways of compensating for such. On a good note Ben Bernanke agreed that the Fed had made the Great Depression worse, saying in a 2002 speech:
"I would like to say to Milton [Friedman] and Anna [J. Schwartz]: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."
Oops looks like we done it again huh Ben?
Milton Friedman (1912-2006), a prominent figure within the Chicago School , argued that the Federal Reserve System made the Great Depression worse by contracting the money supply at the very moment that markets needed liquidity. Since its entire existence was predicated on its mission to prevent events like the Great Depression, it had failed in what the 1913 bill had tried to achieve.
"I am the most unhappy man. I have unwittingly ruined my country. A great industrial nation is now controlled by a system of credit. We are no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men." Pres. Woodrow Wilson-1919 (six years after signing the Federal Reserve Act)
Peter Jaworski (The Journal, Queen's University, March 15, 2002—Issue 37, Volume 129) Friedman said well before any bailouts that ideally he would "prefer to abolish the federal reserve system altogether" rather than try to reform it, because it was a flawed system in the first place. He also said he would like to "abolish the Federal Reserve and replace it with a computer."
"The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy." -Congressman Ron Paul -
Dennis Kucinicich, addressing Congress during the January 2009 session stated, "The Federal Reserve is no more federal than Federal Express....If we could take that (money-issuing) power back and place the Federal Reserve under Treasury, we start to be in a position of being able to control monetary policy on behalf of the United States people."
"The financial system has been turned over to the Federal Reserve Board. That Board administers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money." (R). Charles Lindbergh
Congressman Louis McFadden, Chairman of the House Committee on Banking and Currency from 1920–31, accused the Federal Reserve of deliberately causing the Great Depression. In several speeches made shortly after he lost the chairmanship of the committee, McFadden claimed that the Federal Reserve was run by Wall Street banks and their affiliated European banking houses. On June 10, 1932, McFadden said: In 1933, he introduced House Resolution No. 158, Articles of impeachment for the Secretary of the Treasury, two assistant Secretaries of the Treasury, the Board of Governors of the Federal Reserve, and the officers and directors of its twelve regional banks. There were two attempts on McFadden's life, a failed shooting and an apparent poisoning that made him "violently ill" after attending a political banquet in Washington. In 1936, McFadden attended a banquet in New York, and died shortly after, what could possibly be a third and successful attempt of assassination.
"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. The Federal Reserve Board, a Government board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt. These twelve private credit monopolies were deceitfully and disloyally foisted upon this country by the bankers who came here from Europe and repaid us for our hospitality by undermining our American institutions...The people have a valid claim against the Federal Reserve Board and the Federal Reserve banks." - (R) Louis McFadden
"The real truth of the matter is that a financial element in the large centers has owned the government since the days of Andrew Jackson." Pres. Franklin D. Roosevelt-1933
"If you want to remain slaves of the bankers and pay for the costs of your own slavery let them continue to create money and control the nation's credit." Sir Josiah Stamp- (1880-1941)
"A world banking system was being set up here...A super state controlled by international bankers...Acting together to enslave the world for their own pleasure. the fed has usurped the government." Congressman Louis McFadden-1913 (After passage of Federal Reserve Act)
"Under the Federal Reserve Act panics are scientifically created. The present panic is the first scientifically created one, worked out as we figure a mathematical equation." Congressman Charles Lindbergh-1921
"It was a carefully contrived occurrence international bankers sought to bring about a condition of despair so that they may emerge the rulers of us all." Congressman Louis McFadden-1929 (Right before the Great Depression)
"Give me control of a nation's money supply, and I care not who makes it's laws." Mayer Amschel Rothschild- (1744-1812)
I thank you for your time in reading this correspondence and I humbly beg of you to YouTube JFK's warning on the Illuminati and secret societies recorded just weeks before his death in his state of the union speech.
Here's one quote I forgot to include for Nancy:
For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as "internationalists" and of conspiring with others around the world to build a more integrated global political and economic structure — one world, if you will. If that's the charge, I stand guilty, and I am proud of it.
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