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Originally posted by spikey
reply to post by mblahnikluver
Didn't read all the information from your link - but i read enough...bloody hell.
So THAT'S who the illuminati actually is then...i'd been wondering for some time who and what they really were.
You're right, that is some pretty eye opening reading.
The one thing...the single thing that i cannot understand about the whole treacherous estate, is this:
With all the powerful people, that knew and fought against the 'bad guys', such as President Andrew Jackson, and all the others that knew exactly or mostly, what was going on...why the hell were these 'bad guys' permitted to live and bring their plans for world domination to fruition?
They themselves had absolutely no problem with assassinating or coercing those that got in their way, why didn't the 'good guys' return the favour?
I mean...ok, they were rich and powerful, but then so were the good guys...s of state, royalty, rich and powerful in their own rights...why wasn't there a covert plan or even overt plan to simply wipe out the whole lot of them?
It should have been easy enough to accomplish during the 19th century..why didn't they just get rid, and the world today would probably be a much fairer and much safer world for all of us.
If they had no problem with murder and blackmail, why the hell didn't someone do it back to them?
Originally posted by Lebowski achiever
reply to post by mblahnikluver
I have to say that this site is very unfortunate. Being Jewish is not about race but about faith. The Rothchilds are Jewish but that has nothing to with where they originally came from and is irrelevant to the history of how they acquired their wealth. This site is a racist's wet dream tbh and undermines the core of truth in this story.
I'm from Australia but have always wondered why the Federal Reserve is a private organisation. The name implies otherwise.
SECRETS OF THE FEDERAL RESERVE
the Federal Reserve System is not Federal; it has no reserves; and it is not a system at all, but rather, a criminal syndicate....
...The "monetary reform" plan prepared at Jekyll Island was to be presented to Congress as the completed work of the National Monetary Commission. It was imperative that the real authors of the bill remain hidden. So great was popular resentment against bankers since the Panic of 1907 that no Congressman would dare to vote for a bill bearing the Wall Street taint, no matter who had contributed to his campaign expenses....
The main problem, as Paul Warburg informed his colleagues, was to avoid the name "Central Bank". For that reason, he had decided upon the designation of "Federal Reserve System". This would deceive the people into thinking it was not a central bank. However, the Jekyll Island plan would be a central bank plan, fulfilling the main functions of a central bank; it would be owned by private individuals who would profit from ownership of shares. As a bank of issue, it would control the nation’s money and credit.
In the chapter on Jekyll Island in his biography of Aldrich, Stephenson writes of the conference: "How was the Reserve Bank to be controlled? It must be controlled by Congress. The government was to be represented in the board of directors, it was to have full knowledge of all the Bank’s, affairs, but a majority of the directors were to be chosen, directly or indirectly, by the banks of the association."6
Thus the proposed Federal Reserve Bank was to be "controlled by Congress" and answerable to the government, but the majority of the directors were to be chosen, "directly or indirectly" by the banks of the association. In the final refinement of Warburg’s plan, the Federal Reserve Board of Governors would be appointed by the President of the United States, but the real work of the Board would be controlled by a Federal Advisory Council, meeting with the Governors. The Council would be chosen by the directors of the twelve Federal Reserve Banks, and would remain unknown to the public....
The next consideration was to conceal the fact that the proposed "Federal Reserve System" would be dominated by the masters of the New York money market....
Paul Warburg advanced at Jekyll Island the primary deception which would prevent the citizens from recognizing that his plan set up a central bank. This was the regional reserve system. He proposed a system of four (later twelve) branch reserve banks located in different sections of the country. Few people outside the banking world would realize that the existing concentration of the nation’s money and credit structure in New York made the proposal of a regional reserve system a delusion...
....Senator Nelson Aldrich had insisted that the officials should be appointive, not elected, and that Congress should have no role in their selection...
Warburg responded that the administrators of the proposed central banks should be subject to executive approval by the President. This patent removal of the system from Congressional control meant that the Federal Reserve proposal was unconstitutional from its inception, because the Federal Reserve System was to be a bank of issue. Article 1, Sec. 8, Par. 5 of the Constitution expressly charges Congress with "the power to coin money and regulate the value thereof.". Warburg’s plan would deprive Congress of its sovereignty, and the systems of checks and balances of power set up by Thomas Jefferson in the Constitution would now be destroyed. Administrators of the proposed system would control the nation’s money and credit, and would themselves be approved by the executive department of the government......
Google Video Link |
It is false hope to think anything will change because it will not. TPTB are smart and look out 10 -20-100 years in the future. We have been formed into a nice little flock. It is sad to say the least.
"In the Little Rascals day-care-abuse case in North Carolina, one mother told reporters that it took 10 months before her child was able to "reveal" the molestation. No one at the time considered the idea that the child might have been remarkably courageous to persist in telling the truth for so long." Carol Tavris www.religioustolerance.org...
Dumbing Down America
Dewey's philosophy had evolved from Hegelian idealism to socialist materialism, and the purpose of the school was to show how education could be changed to produce little socialists and collectivists instead of little capitalists and individualists. It was expected that these little socialists, when they became voting adults, would dutifully change the American economic system into a socialist one.
In order to do so he analyzed the traditional curriculum that sustained the capitalist, individualistic system and found what he believed was the sustaining linchpin -- that is, the key element that held the entire system together: high literacy. To Dewey, the greatest obstacle to socialism was the private mind that seeks knowledge in order to exercise its own private judgment and intellectual authority. High literacy gave the individual the means to seek knowledge independently. It gave individuals the means to stand on their own two feet and think for themselves. This was detrimental to the "social spirit" needed to bring about a collectivist society. Dewey wrote in Democracy and Education, published in 1916:
When knowledge is regarded as originating and developing within an individual, the ties which bind the mental life of one to that of his fellows are ignored and denied.
When the social quaility of individualized mental operations is denied, it becomes a problem to find connections which will unite an individual with his fellows. Moral individualism is set up by the conscious separation of different centers of life. It has its roots in the notion that the consciousness of each person is wholly private, a self-inclosed continent. intrinsically independent of the ideas, wishes, purposes of everybody else.
And he wrote in School and Society in 1899:
The tragic weakness of the present school is that it endeavors to prepare future members of the social order in a medium in which the conditions of the social spirit are eminently wanting ...
The mere absorbing of facts and truths is so exclusively individual an affair that it tends very naturally to pass into selfishness. There is no obvious social motive for the acquirement of merely learning, there is no clear social gain in success threat.
It seems incredible that a man of Dewey's intelligence could state that the sort of traditional education that produced our founding fathers and the wonderful inventors of the 19th century lacked "social spirit" when it was these very individuals who created the freest, happiest, and most prosperous nation in all of human history.... And so, high literacy had to go. Dewey wrote in 1896, after the Laboratory School had been in operation for nine months:
It is one of the great mistakes of education to make reading and writing constitute the bulk of the school work the first two years. The true way is to teach them incidentally as the outgrowth of the social activites at this time. Thus language is not primarily the expression of thought, but the means of social communication ... If language is abstracted from social activity, and made an end in itself, it will not give its whole value as a means of development ... It is not claimed that by the method suggested, the child will learn to read as much, nor perhaps as readily in a given period as by the usual method.....
"For 10 years, William Schmidt, a statistics professor at Michigan State University, has looked at how U.S. students stack up against students in other countries in math and science. "In fourth-grade, we start out pretty well, near the top of the distribution among countries; by eighth-grade, we're around average, and by 12th-grade, we're at the bottom of the heap, outperforming only two countries, Cyprus and South Africa."
Source
You say the UN has no teeth, and I agree with you. But you have to admit that they are trying to give it teeth. When their slogan is "A stronger UN for a better world" they are clearly trying to make the UN stronger.
...This is our "Matrix" for sure and too many are comfortable in their slave pods. I feel certain that most people making up the 15 - 18% actual unemployed are not comfortable....
...the 1971 Swann v. Charlotte-Mecklenburg Board of Education ruling, the Supreme Court upheld the constitutionality of busing to end school segregation... In the 1970s and 1980s, under federal court supervision, many school districts implemented mandatory busing plans within their district. en.wikipedia.org...
Originally posted by Hemisphere
reply to post by GlennCanady
This is our "Matrix" for sure and too many are comfortable in their slave pods. I feel certain that most people making up the 15 - 18% actual unemployed are not comfortable. They would be open to this line of thinking but..... and here's the biggest part of this, they are engulfed by the endless details and time wastes of surviving within this system for one more month, week or day.
The actual wealth that has been stolen is "time". If you don't have time you are unarmed. If you are unemployed and insolvent you have no time, you are unarmed. The rest of us are rendered harmless by staying on the hamster wheel of personal solvency. We are kept busy, our time is filled.
Time is the one commodity that we can't buy. There is no two gallon jar of time in Costco. No time, no threat. Thus it matters not whether we see the cartoon or hear Ron Paul or the good judge. And.... by seeing this on the Fox network, we might be further convinced that the network is even remotely onboard with this.
Originally posted by crimvelvet
The elite have done all they can to render us as helpless as possible. High drug use is one method.
Originally posted by SeekerofTruth101
Writing letters, peaceful protests, etc, are relatively harmless, but would only create awareness, nothing biting.
Revolutions would only hurt and harm lives on every side.
But it would take courage to down tools, and say enough is enough to slavery, to get back your time and life.
Writing letters, peaceful protests, etc, are relatively harmless, but would only create awareness, nothing biting.
Revolutions would only hurt and harm lives on every side.
But it would take courage to down tools, and say enough is enough to slavery, to get back your time and life.
...Mr. President, you have been so correct in resisting attempts to balance the budget by increasing taxes. The tax load on the average American family is already at counterproductive levels with the underground economy having now grown to an estimated $500 billion per year, costing about $100 billion in lost Federal tax revenues per year.
The size of the underground economy is understandable when one considers that median family income taxes have increased from $9 in 1948 to $2,218 in 1983, or by 246 times. This is runaway taxation at its worst...
Small businesses threatened with 1099 tax form tyranny provision in health care bill
.. A small section hidden away in the 2,409-page [Obamacare] bill requires all businesses to send 1099 tax forms to every company or individual from which they purchased more than $600 in services and goods throughout the tax year, beginning on January 1, 2012.
As you'll see below, this new law threatens to cause a wave of paperwork chaos across the entire U.S. economy, stifling the operations of small businesses and driving more jobs overseas.
Here's why...
if you're a small business owner, you will be required to issue a 1099 to every business from which you purchased more than $600 worth of goods or services.
Can you imagine having to track and tally every single business purchase you make throughout the year and send 1099 forms to all of them? How about having to collect names and taxpayer identification numbers from every vendor or payee that you dealt with? Can you imagine how long it would take on the phone with Wal-Mart customer service to try to obtain the company's tax ID? Multiply this by the other five hundred companies you do business with, and you start to get an idea of the new burden this is going to place on small businesses across America....
www.naturalnews.com...
TPTB advertise the first two scenarios because they have had the solutions to those worked out. Refined down through the ages. They promote pacifism, Gandhi, MLK, Jesus and so on. You can beat the living hell out of pacifists adn they have. They also had John Lennon sing openly about "Revolution" and such. Dealing with armed resistance is their stock and trade. You can go with this, you can with that, they got you either way. The great circle jerk of life.
FIJA seeks to require that juries be informed of their nullification rights. Informed jury amendments have been filed as an initiative in seven states and legislation has been introduced in the Alaska state legislature.
...the right of juries to judge both the law and the facts -- to nullify the law if it chose -- became part of British constitutional law.
It ultimately became part of American constitutional law as well, but you'd never know it listening to jury instructions today almost anywhere in the country....
Now a remarkable coalition has sprung up to challenge this secrecy as undemocratic, unconstitutional and dangerous. Though organized by libertarian activists, the Fully Informed Jury Amendment movement includes liberals and conservatives...
...many groups in this country feel the government has overstepped its power in some way and that there must be protection for the natural rights of American citizens. They are defending not only the right to protest or carry a gun or not wear seatbelts but challenging the right of the government to decide such matters without the mediating effect of a jury's judgement of fairness in a particular case.
In the many discussions across several states, questions have arisen concerning exactly how the "Tenth Amendment Resolution" will help....
The principal motivation came from the myriad of federal mandates which have been placed and are planned to be placed on the states. State legislatures feel they have little choice but to implement these mostly-unfunded mandates and pass the cost for implementation to the state taxpayers. For most state legislators, this is a very frustrating dilemma.
The Tenth Amendment assures that we, the people of the United States of America and each sovereign state in the Union of States, now have, and have always had, rights the federal government may not usurp. Article IV, Section 4 says, "The United States shall guarantee to every state in this Union a republican form of government.....", and the Ninth Amendment states that..."The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people".
We have, through apathy and lack of will, allowed federal legislators and bureaucrats to assert their will over us and commandeer our funds for their own use.... most of it today outside the authority granted to them by the Constitution.
When a state passes this resolution proclaiming its sovereignty, that state may then claim exemption to most federal mandates under the Tenth Amendment of the U.S. Constitution....
by Colorado State Senator Charles Duke
www.sweetliberty.org...
While 18 of the 50 United States offer their citizens an opportunity to recall their elected officials, it is a fact that in our nation’s history, no federal legislator has yet been recalled.
It has not been for lack of interest. Rather, the process has languished in part due to debates on whether or not legal authority exists for recall of U.S. Senators and Congressmen; and, in the case of Idaho, interference by a state court prevented recall of a federal legislator....
After reviewing the body of law and opinion concerning recall, it is apparent that if recall of federal legislators is to succeed, it will likely only be after an intense battle in the federal court system as to the degree to which the courts will go to allow the literal meaning of the Tenth Amendment to be in force and effect.
As this author reads this language, it appears clear that " the States ‘ and " the people " living with in them, should be recognized to have the right of recall.
But in order to implement a strategy that will enable recall petitions to result in actual removal of errant Senators and Congressmen, considerable legal and political obstacles will present themselves and can only be overcome by understanding the lengths to which those opposed to recall can be expected to go...
Eighteen states have recall provisions. Alaska, Arizona, California, Colorado, Georgia, Idaho, Kansas, Louisiana, Michigan, Minnesota, Montana, Nevada, New Jersey, North Dakota, Oregon, Rhode Island, Washington, and Wisconsin all have recall of some kind available to their voters. Only seven of these states require any grounds.
www.uscitizensassociation.com...
Point taken but how will they ever see why this is happening and know that it's not just a passing trend ? It was my contention to rattle some cages that these people have carefully built around themselves to insulate them from the truth . It has been said that we all build our own prisons . They can't hide from this one coming up .
“I know of no severe depression, in any country or any time, that was not accompanied by a sharp decline in the stock of money, and equally of no sharp decline in the stock of money that was not accompanied by a severe depression.” www.themoneymasters.com...
If the readers examine the St. Louis Federal Reserve graph of the M1 money supply (http//research.stlouisfed.org/fred2/series/M1), they will note that whenever the Fed maintains a restrictive monetary policy (flat M1 growth rate) the economy enters a recession. The evidence is particularly striking for the 2008 recession. From 2003 to the fourth quarter of 2008, the Fed restricted the growth of M1; the result was the 2008 recession.
The Fed knows fully well that they created the recession as demonstrated by their subsequent loosening of M1 growth.
Milton Freedman and Anna Schwartz were correct in their assessments of money. www.thefreemanonline.org...
Today I am signing into law H.R. 5334, the "Housing and Community Development Act of 1992." This bill establishes a sound regulatory structure for Government-sponsored enterprises (GSEs), combats money laundering, provides essential regulatory relief to financial institutions, authorizes several key Administration housing initiatives,...The regulatory burden that the Congress has placed on our banking system has reached a staggering level that prevents banks from providing the credit that is necessary to assure economic growth. By reducing the regulatory burden, this bill will assist banks, borrowers, and the economy as a whole....
My Administration worked diligently to craft a compromise housing bill that would target assistance where it is needed most, expand homeownership opportunities, ensure fiscal integrity, and empower recipients of Federal housing assistance....
George Bush
The White House,
October 28, 1992.
Note: H.R. 5334, approved October 28, was assigned Public Law No. 102 - 550. This statement was released by the Office of the Press Secretary on October 29. www.presidency.ucsb.edu...
...In the Commodity Futures Modernization Act in the year 2000, they specifically exempted credit default swaps from being treated as gaming under any state laws. And they had to do that, because they were afraid that they were going to be regulated by... state gaming agencies.
www.democracynow.org...
...Cassano [former head of the AIG derivatives unit] sells $500 billion of CDS protection with at least $64 billion of that tied in the subprime mortgage market....
...These instruments were unregulated. They were designated outside the regulation of—they couldn’t be regulated as futures commodities or as gaming, so there were no rules about this. So you could sell as much CDS protection as you wanted, but you didn’t have to actually post any capital when you did it....
Goldman Sachs, it turns out, was Cassano’s largest customer
...Goldman Sachs actually had bought $20 billion worth of those guarantees, so that when we bailed out AIG, we were effectively bailing out Goldman Sachs, because AIG owed Goldman Sachs $20 billion.
And that’s significant, because who was the Treasury Secretary who engineered this bailout? It was Hank Paulson, who was the former head of Goldman Sachs....
www.democracynow.org...
CDS premium revenue is not restricted to those who might have actual losses or real assets to protect. You can bet as much as you want and create as many CDS as you want....
www.realtytrac.com...
Nearly 50 percent leave Obama mortgage-aid program [meaning they end up in foreclosure]
Obama mortgage-aid effort is struggling to stem the rising number of foreclosures in US finance.yahoo.com...
Senior investors, who are typically financial institutions, own the AAA tranches that are insured against default by AIG, and they WANT to foreclose on the Middle Class so that insurance payments kick in. Conversely, the junior tranche investors want workouts with homeowners because their investment is not insured.
“To ensure that the mortgage servicer pushes default instead of workout, the servicer is paid double (50 basis points versus 25 basis points) by the MBS to service a loan in default. Why do you think your servicer tells you that you must be in default before it will consider a mortgage modification, a practice known as invited default?
“Simply put,” says Parker, “the government bailout of AIG has actually encouraged foreclosures because the taxpayers continue to fill AIG’s coffers with enough cash to pay out insurance on defaulted home loans.”
www.realtytrac.com...
The McFadden Act of 1927 or Amendment to the National Banking Laws and the Federal Reserve Act (P.L. 69-639, 44 STAT. 1224): Prohibited interstate banking.
Clinton's Law: Negating above:
Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (P.L. 103-328, 108 STAT. 2338).
Permits bank holding companies to acquire banks in any state one year Beginning June 1, 1997, allows interstate mergers.
The Glass-Steagall Act or Banking Act of 1933 (P.L. 73-66, 48 STAT. 162): Separated commercial banking from investment banking, establishing them as separate lines of commerce.
Bank Holding Company Act of 1956 (P.L. 84-511, 70 STAT. 133): Prohibited bank holding companies headquartered in one state from acquiring a bank in another state.
Clinton's Law: Negating both of the above laws:
Gramm-Leach-Bliley Act of 1999 (P.L. 106-102, 113 STAT 1338)
(pdf version from Government Printing Office.)
Repeals last vestiges of the Glass Steagall Act of 1933. Modifies portions of the Bank Holding Company Act to allow affiliations between banks and insurance underwriters. Law creates a new financial holding company authorized to engage in: underwriting and selling insurance and securities, conducting both commercial and merchant banking, investing in and developing real estate and other "complimentary activities."
Allows national banks to underwrite municipal bonds.
Amends the Community Reinvestment Act to require that financial holding companies can not be formed before their insured depository institutions receive and maintain a satisfactory CRA rating.
Makes significant changes in the operation of the Federal Home Loan Bank System, easing membership requirements and loosening restrictions on the use of FHLB funds.
MORE:
Federal Deposit Insurance Corporation Improvement Act of 1991 (P.L. 102-242, 105 STAT. 2236).
Also known as FDICIA. FDICIA greatly increased the powers and authority of the FDIC. Major provisions recapitalized the Bank Insurance Fund and allowed the FDIC to strengthen the fund by borrowing from the Treasury.
The act mandated a least-cost resolution method and prompt resolution approach to problem and failing banks and ordered the creation of a risk-based deposit insurance assessment scheme. Brokered deposits and the solicitation of deposits were restricted, as were the non-bank activities of insured state banks. FDICIA created new supervisory and regulatory examination standards and put forth new capital requirements for banks. It also expanded prohibitions against insider activities and created new Truth in Savings provisions.
TRANSLATION: Allowed big banks to gobble up smaller banks more easily.
Housing and Community Development Act of 1992 (P.L. 102-550, 106 STAT. 3672).
RTC Completion Act (P.L. 103-204, 107 STAT. 2369):
implement provisions designed to improve the agency's record in providing business opportunities to minorities and women.. Expands the existing affordable housing programs of the RTC and the FDIC by broadening the potential affordable housing stock of the two agencies.
Increases the statute of limitations on RTC civil lawsuits. In cases in which the statute of limitations has expired, claims can be revived for fraud and intentional misconduct resulting in unjust enrichment or substantial loss to the thrift.
Originally posted by crimvelvet
reply to post by SimonPeter
Point taken but how will they ever see why this is happening and know that it's not just a passing trend ? It was my contention to rattle some cages that these people have carefully built around themselves to insulate them from the truth . It has been said that we all build our own prisons . They can't hide from this one coming up .
I have been trying to wake people up for about five years. First about the takeover of the food supply - (I just got a big YAWN), and later about the Federal Reserve.
With the FED at least there is some interest. Many people are still P.O. about the Big Bank Bailouts and the foreclosures that have wiped out the value of their property. Hit them hard in the purse and people FINALLY start to wake-up.
Here is some useful tidbits on the whole Bailout/Foreclosure scam.
YEAH I research that too
First of all the whole blasted thing was a set-up by the bankers to scam the tax payers - so what else is new?
Remember the bankers control the economy by controlling money. As Milton Friedman said:
“I know of no severe depression, in any country or any time, that was not accompanied by a sharp decline in the stock of money, and equally of no sharp decline in the stock of money that was not accompanied by a severe depression.” www.themoneymasters.com...
Eustace Mullins goes even further in his Secrets of the Federal Reserve and gives some blow by blow accounts of how the bankers manipulated the system to periodically "shear the sheep"
Commenter Byron states on 21 January 2010:
If the readers examine the St. Louis Federal Reserve graph of the M1 money supply (http//research.stlouisfed.org/fred2/series/M1), they will note that whenever the Fed maintains a restrictive monetary policy (flat M1 growth rate) the economy enters a recession. The evidence is particularly striking for the 2008 recession. From 2003 to the fourth quarter of 2008, the Fed restricted the growth of M1; the result was the 2008 recession.
The Fed knows fully well that they created the recession as demonstrated by their subsequent loosening of M1 growth.
Milton Freedman and Anna Schwartz were correct in their assessments of money. www.thefreemanonline.org...
So there is plenty of evidence that the banks created this recession on purpose.
There were three other major parts to the scheme with Obama adding a fourth to allow the maximum amount of profit.
1. The First part were a series of laws put through by Clinton's Administration that allowed interstate banking, mergers, the takeover of smaller banks and a major consolidation of the banking industry. It also allowed banks to expand into the insurance and real estate industry. I list some of them at the bottom.
2. Second was John Kerry's (D-MA) introduction of legislation that resulted in the "Housing and Community Development Act of 1992" It was signed into law by G.W. Bush.
Today I am signing into law H.R. 5334, the "Housing and Community Development Act of 1992." This bill establishes a sound regulatory structure for Government-sponsored enterprises (GSEs), combats money laundering, provides essential regulatory relief to financial institutions, authorizes several key Administration housing initiatives,...The regulatory burden that the Congress has placed on our banking system has reached a staggering level that prevents banks from providing the credit that is necessary to assure economic growth. By reducing the regulatory burden, this bill will assist banks, borrowers, and the economy as a whole....
My Administration worked diligently to craft a compromise housing bill that would target assistance where it is needed most, expand homeownership opportunities, ensure fiscal integrity, and empower recipients of Federal housing assistance....
George Bush
The White House,
October 28, 1992.
Note: H.R. 5334, approved October 28, was assigned Public Law No. 102 - 550. This statement was released by the Office of the Press Secretary on October 29. www.presidency.ucsb.edu...
The third part was again a law, or rather the LACK of a law.
...In the Commodity Futures Modernization Act in the year 2000, they specifically exempted credit default swaps from being treated as gaming under any state laws. And they had to do that, because they were afraid that they were going to be regulated by... state gaming agencies.
www.democracynow.org...
(The above article is very well worth the read.) As is The Big Takeover: How Wall Street Insiders are Using the Bailout to Stage a Revolution: The global economic crisis isn't about money - it's about power. by Matt Taibbi www.commondreams.org...
When the bankers contracted the money supply in 2008, they burst the housing bubble and started a recession. People started defaulting on their mortgages and the people who used credit default swaps to bet the mortgages WOULD default came looking for their money. AIG didn't have the money so the US government bailed them out.
The American tax payer of course got screwed twice or more. Once by losing the house and a second time by covering the bets that the mortgage would default. It would of course have been cheaper for the government (and the tax payer) to refinance the loans at an amount and interest rate the people could afford. Or better yet to tell AIG and the banks TOUGH LUCK DON"T GAMBLE!
Why didn't they?
...Cassano [former head of the AIG derivatives unit] sells $500 billion of CDS protection with at least $64 billion of that tied in the subprime mortgage market....
...These instruments were unregulated. They were designated outside the regulation of—they couldn’t be regulated as futures commodities or as gaming, so there were no rules about this. So you could sell as much CDS protection as you wanted, but you didn’t have to actually post any capital when you did it....
Goldman Sachs, it turns out, was Cassano’s largest customer
...Goldman Sachs actually had bought $20 billion worth of those guarantees, so that when we bailed out AIG, we were effectively bailing out Goldman Sachs, because AIG owed Goldman Sachs $20 billion.
And that’s significant, because who was the Treasury Secretary who engineered this bailout? It was Hank Paulson, who was the former head of Goldman Sachs....
www.democracynow.org...
This of course was the key to the whole scam. The credit default swaps (CDS) were used to guarantee mortgage-backed securities. Since most people will go hungry to make sure their mortgage is paid, these were considered a "sure bet" There was no reserve requirement with CDS because there's no government regulation so the "bets" were not backed by sufficient money.
CDS premium revenue is not restricted to those who might have actual losses or real assets to protect. You can bet as much as you want and create as many CDS as you want....
www.realtytrac.com...
In other words there maybe more than one CDS on a mortgage and therefore it is much more profitable to collect the multiple payoffs than to refinance the mortgage.
And then we come to Obama's contribution to the plan.
Nearly 50 percent leave Obama mortgage-aid program [meaning they end up in foreclosure]
Obama mortgage-aid effort is struggling to stem the rising number of foreclosures in US finance.yahoo.com...
Senior investors, who are typically financial institutions, own the AAA tranches that are insured against default by AIG, and they WANT to foreclose on the Middle Class so that insurance payments kick in. Conversely, the junior tranche investors want workouts with homeowners because their investment is not insured.
“To ensure that the mortgage servicer pushes default instead of workout, the servicer is paid double (50 basis points versus 25 basis points) by the MBS to service a loan in default. Why do you think your servicer tells you that you must be in default before it will consider a mortgage modification, a practice known as invited default?
“Simply put,” says Parker, “the government bailout of AIG has actually encouraged foreclosures because the taxpayers continue to fill AIG’s coffers with enough cash to pay out insurance on defaulted home loans.”
www.realtytrac.com...
The Obama "loan modification" pushes people into default by setting up a reduced payment plan. The bank then drags out the loan modification process by losing paperwork etc etc for about a year and then tells the home owner they do not qualify and hands them a bill for several thousand dollars due within one month. If you are lucky enough to scrap together the money the bank then is unable to give you the exact amount because you are liable for their Lawyers fees which are of course always change every time you try to get a straight answer. If you do not have a pit bull of a lawyer to represent you, you lose the property.
The worse part are all the recent laws that modified the banking system and removed the safeguards that had been put in place. This shows that Congress helped the bankers set the American people up for a gigantic rip off. They are was just as guilty as the bankers.
A list of important banking laws can be found here: www.fdic.gov...
For example:
The McFadden Act of 1927 or Amendment to the National Banking Laws and the Federal Reserve Act (P.L. 69-639, 44 STAT. 1224): Prohibited interstate banking.
Clinton's Law: Negating above:
Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (P.L. 103-328, 108 STAT. 2338).
Permits bank holding companies to acquire banks in any state one year Beginning June 1, 1997, allows interstate mergers.
The Glass-Steagall Act or Banking Act of 1933 (P.L. 73-66, 48 STAT. 162): Separated commercial banking from investment banking, establishing them as separate lines of commerce.
Bank Holding Company Act of 1956 (P.L. 84-511, 70 STAT. 133): Prohibited bank holding companies headquartered in one state from acquiring a bank in another state.
Clinton's Law: Negating both of the above laws:
Gramm-Leach-Bliley Act of 1999 (P.L. 106-102, 113 STAT 1338)
(pdf version from Government Printing Office.)
Repeals last vestiges of the Glass Steagall Act of 1933. Modifies portions of the Bank Holding Company Act to allow affiliations between banks and insurance underwriters. Law creates a new financial holding company authorized to engage in: underwriting and selling insurance and securities, conducting both commercial and merchant banking, investing in and developing real estate and other "complimentary activities."
Allows national banks to underwrite municipal bonds.
Amends the Community Reinvestment Act to require that financial holding companies can not be formed before their insured depository institutions receive and maintain a satisfactory CRA rating.
Makes significant changes in the operation of the Federal Home Loan Bank System, easing membership requirements and loosening restrictions on the use of FHLB funds.
MORE:
Federal Deposit Insurance Corporation Improvement Act of 1991 (P.L. 102-242, 105 STAT. 2236).
Also known as FDICIA. FDICIA greatly increased the powers and authority of the FDIC. Major provisions recapitalized the Bank Insurance Fund and allowed the FDIC to strengthen the fund by borrowing from the Treasury.
The act mandated a least-cost resolution method and prompt resolution approach to problem and failing banks and ordered the creation of a risk-based deposit insurance assessment scheme. Brokered deposits and the solicitation of deposits were restricted, as were the non-bank activities of insured state banks. FDICIA created new supervisory and regulatory examination standards and put forth new capital requirements for banks. It also expanded prohibitions against insider activities and created new Truth in Savings provisions.
TRANSLATION: Allowed big banks to gobble up smaller banks more easily.
Housing and Community Development Act of 1992 (P.L. 102-550, 106 STAT. 3672).
RTC Completion Act (P.L. 103-204, 107 STAT. 2369):
implement provisions designed to improve the agency's record in providing business opportunities to minorities and women.. Expands the existing affordable housing programs of the RTC and the FDIC by broadening the potential affordable housing stock of the two agencies.
Increases the statute of limitations on RTC civil lawsuits. In cases in which the statute of limitations has expired, claims can be revived for fraud and intentional misconduct resulting in unjust enrichment or substantial loss to the thrift.
Originally posted by Phenomium
Charles Lindhberg, spoke out and revealed the The bankers manifesto of 1892 and we know what happened to him. His child was kidnapped and grusomely murdered.