Conspiracy or Coincidence

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Who's Who of the Elite, Y2K, Council of theAmericas, Quebec City, Summit of theAmericas, The Skulls, Quebec City, Summit ofthe Americas, Antichrist, President LyndonBaines Johnson, Logical Physics, America'sSecret Establishment, Best Enemy MoneyCan Buy, The Federal Reserve Conspiracy,Trilaterals Over America, The FranklinCover-Up, Trance Formation of America,

conspiracy, Defrauding America, On theHorns of the Beast, Texas in the Morning, TheMoney Masters, Cover-Up in Oklahoma,C.I.A. and MKULTRA Project Monarch,C.I.A. and Biological Testing, C.I.A. and DrugTesting, The Ezekien Mission, Future

Our goal is to enlighten the world about the evil done by the Elitein the past,

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Books button on the left.

We now reveal the truth about

"Globalization"and

Secret Societies Exposed by RIE

Plus

The Elite Serial Killers of Lincoln, JFK, RFK & MLK

"So do not be afraid of them.There is nothing concealed that will not be disclosed,

or hidden that will not be made known.

What I tell you in the dark,

speak in the daylight;

what is whispered in your ear,

proclaim from the roofs."

St. Matthew, 10-26 & 27

This is not a conspiracy theory site. This site contains only conspiracy facts.

The Elite Dont Dare Let Us Tell thePeople

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We know whos really behind the Shadow Government, theNew World Order, or the Global Union.


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Theyre all one and the same.We not only know which secret organizations are in control,we now know the names of the two men at the very top.

The Elite Dont Dare Let Us Tell the People unleashes alarming new evidence of theElites monumental crimes against humanity. Noted author Robert Gaylon Ross,Sr., unravels the darkest secrets of the secret societies, documenting the hideousthreat posed to mankind by Freemasonry, the Bohemian Grove, and the Order ofSkull & Bones. Also unmasked: elitist groups such as the Bilderbergs, the Councilon Foreign Relations and the Trilateral Commission.

Financially, grave dangers now confront us. The Elite project to de-industrialize theUnited States gathers steam. Shocking statistics document the devastation done toAmerican workers. Millions have already been thrown out of work, and those stillemployed are under-employed. With documented facts the author pulls the curtainsback, unveiling the secretive manipulations of the international bankers and theirCentral Banks. Is our economic system now in dire jeopardy? Are the Elite aboutto plunge the U.S.A. into a financial catastrophe? Obviously what started inmid-2008 is absolute proof. We are now in a depression, which, if not broughtunder control soon, could make the 1929 depression look like a cake-walk. Here arethe answers you need to assure your economic survival and even prosper in the

dangerous days ahead. Forewarned is forearmed.

Why do bloodshed and wars continue to plague America and the world? Is warjust a racket? Are wars caused by oil and financial greed? What role do Zionistambitions have in fomenting global conflict? Whos really in charge?, Ross asks.Will these cunning men achieve their totalitarian goals and tighten their grip on ourdaily lives? This 408 page, 8.5 x 11 soft cover, book very clearly answers thesemost important questions. Robert Gaylon Ross, Sr., leads the way in The Elite

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AssassinationsFor those who want the real truth about the assassinations of Abraham Lincoln,President John Fitzgerald Kennedy, Senator/Attorney General Robert FrancisKennedy and Reverend Martin Luther King, Jr., we now provide all of the answers

in our latest book,

The Elite Serial Killers of Lincoln, JFK, RFK & MLK

This book not only tells who did the shooting, but why they were killed, whoplanned these terrible acts, and who wrote the checks to pay off the killers.Warning! This one will shock you.

Economic Crisis The 2008 U.S. economic crisis became apparent by most people during thesummer of 2008, but it started several years earlier. There is a lot of similarity between

this crisis and the Savings & Loan crisis during the early 1980s. Over 1,000 executives

of the S & L industry were convicted of federal crimes and sent to prison. During the late

1970s and early 1980s the Elite bribed Congress and the White House so that they

would agree to deregulate the financial industry. The Elite promised that competition

between financial institutions would cause a natural self-regulation within the industry,

and that the Federal Reserve System would keep a tight reign on all activities. Right!

Control frauds are financial superpreditors that cause vastly larger losses than

blue-collar thieves. They cause catastrophic business failures. Control fraud can

occur in waves that imperil the general economy. The (1980s) savings and loan (S &

L) debacle was one such wave.

The Office of Management and Budget (OMB) wanted the (Federal Home Loan)

Bank Board to reduce its examiners and supervisors. President Reagan appointed Vice

President (G. H. W.) Bush to head his financial deregulation task force. Bushrecommended that financial regulators rely more on computer analysis of industry

financial statements and cut both the frequency of examinations and the number of

examiners. Martin Lowy (1991, 36) says that(Richard) Pratt(Chairman of the Federal

Home Loan Bank Board) fought with the Administration for new examiners and was

denied them.

Source: Pages 1 & 33, The Best Way to Rob a Bank Is to Own One, by William

K. Black

Federal Reserve SystemWhen we ask most people what branch of the Federal government that the


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Federal Reserve System (FED) is in, most will say, It must be in the TreasuryDepartment. Amazing! The FED is not a Federal agency, there is no reserve, and its

owned 100% by the member banks of the FED. Most of the money that the FED creates

is done so by simple computer entry in the FEDs general ledger. Federal Reserve Notes

are fiat currency, with the words "this note is legal tender for all debts, public andprivate" printed on each bill. When the FED creates paper money it simply contacts the

U.S. Bureau of Engraving and Printing and notifies this Bureau how many of each valuebills that they want printed. Each bill printed costs the FED about four cents to print,

regardless of whether its a $1.00 bill or a $100.00 bill.

After months of hearings, debates, votes and amendments, the proposed

legislation, with 30 sections, was enacted as the Federal Reserve Act (also called the

Glass-Owen Bill). The House, on December 22, 1913, agreed to the conference report

on the Federal Reserve Act by a vote of 298 yeas to 60 nays with 76 not voting. The

Senate, on December 23, 1913, agreed to it by a vote of 43 yeas to 25 nays with 27 not

voting. The record shows that there were no Democrats voting "nay" in the Senate andonly two in the House. (See v. 51 Cong. Record, pages 1464, 1487-88). Source:

Wikipedia

So, 76 members of the House of Representatives, and 27 members of the Senatedid not vote for the Federal Reserve Act, because they had left early for the Christmas

holidays. Its just a coincidence that the votes were taken just before Christmas. Right!

In addition, because this should have been an Amendment to the U.S.

Constitution, at least 3/4th, or 75% of the states must have ratified the amendment beforeit could become a legal law of the U.S. In 1913, there were 48 states, so 36 states must

have ratified this Amendment. Also, the FED has never been audited since it was

founded, and it pays no income tax on the profits that it makes from issuing money, at

interest.

Article 1, Section 8 of the U.S. Constitution states: Congress has the power to

coin Money, regulate the Value thereof, This Article has never been repealed nor

amended, so it is still in effect. It does not state that Congress can transfer this power to

any other organization, particularly a private corporation. Everyone is afraid to test theFederal Reserve Act before the U.S. Supreme Court, because if the Constitution were to

be literally interpreted, the FED would be unlawful.

Congressman Ron Paul argues that:

"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 Americanstandard of living via an inflationary monetary policy."

Many others in the past have expressed similar opinions as Congressman Ron


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Paul, such as:

The few who can understand the system (the international banking system) will be so

interested in its profits, or so dependent on its favors, that there will be no opposition

from that class, while on the other hand, the great body of the people are mentally

incapable of comprehending the tremendous advantage that derives from the system,

will bear its burdens without complaint, and perhaps without even suspecting that thesystem is inimical to their interest. Source: Rothschild Brothers of London

The modern banking system manufactures money out of nothing. The process is

perhaps the most astonishing piece of slight of hand ever invented. Banking was

conceived in iniquity, and born in sin. Bankers own the earth. Take it away from them,

but leave them the power to create money, and with the flick of a pen, they will create

enough money to buy it back again. Take this great power away from them, and all

great fortunes like mine will disappear. And, they ought to disappear, for then this

would be a better and happier world to live in. But if you want to continue to be theslaves of the bankers, and pay the cost of your own slavery, then let bankers continue

to create money, and control credit. Source: Sir John Stamp (former governor of the

Bank of England)

Give me the power to coin and issue money and I care not who makes the laws!

Source: Meyer Amschel Rothschild, the founder of the House of Rothschild

The modern theory of the perpetuation of debt has drenched the earth with blood,

and crushes its inhabitants under burdens ever accumulating. If the Americanpeople ever allow private banks to control the issue of their currency, first by

inflation, then by deflation, the banks. . . will deprive the people of all property untiltheir children wake-up homeless on the continent their fathers conquered. . . the

issuing power should be taken from the banks, and restored to the people, to whom it

properly belongs. (emphasis added) Source: Thomas Jefferson

If ye love wealth greater than liberty, the tranquility of servitude greater than the

animating contest for freedom, go home from us in peace. We seek not your counsel,

nor your arms. Crouch down, and lick the hand that feeds you. May your chains set

lightly upon you; and may posterity forget that ye were our countrymen. Source:

Samuel Adams

History records that the moneychangers have used every form of abuse, intrigue,

deceit, and violent plans possible to maintain their control over governments by

controlling money, and its issuance. (emphasis added) Source: James Madison

I see in the near future a crisis approaching that unnerves me, and causes me to

tremble for the safety of our country. Corporations have been enthroned, an era ofcorruption will follow, and the money power of the country will endeavor to prolong its

reign by working upon the prejudices of the people, until the wealth is aggregated in a


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few hands, and the republic is destroyed. The Government should create, issue, and

circulate all the currency, and credits needed to satisfy the spending power of the

Government, and the buying power of consumers. By the adoption of these principals,

the taxpayers will be saving immense sums of interest. Money will cease to be master,

and become the servant of humanity. Source: Abraham Lincoln

If Congress has the right under the Constitution to issue paper money, it was giventhem to use themselves, not to be delegated to individuals or corporations. Source:

Andrew Jackson

The Elite have just about destroyed the economies for almost every nation in the

world through their greed and ignorance. They have created sophisticated financial

instruments, such as credit default swaps, and other forms of derivatives, that most

people do not understand, and which are now a major cause of the worlds financial

problems. They are allowed to use sophisticated and confusing terms that allow them to

remain outside of the law in their dealings, such as off-balance-sheet, naked short sales,pro forma financial statements, credit default swaps, derivatives, etc. The average

citizen using these tactics would be charged with violations of the fraud laws.

Wikipedia defines derivatives as -financial contracts, or financial instruments,

whose values are derived from the value of something else (known as the underlying).

The underlying on which a derivative is based can be an asset (e.g., commodities,

equities (stocks), residential mortgages, commercial real estate, loans, bonds), an

index (e.g., interest rates, exchange rates, stock market indices, consumer price index

(CPI, or other items (e.g., weather conditions, or other derivatives). Credit derivativesare based on loans, bonds or other forms of credit.

The main types of derivatives are: forwards (which if traded on an exchange

are known as futures); options; and swaps.

Derivatives can be used to mitigate the risk of economic loss arising from

changes in the value of the underlying. This activity is known as hedging. Alternatively,

derivatives can be used by investors to increase the profit arising if the value of the

underlying moves in the direction they expect. This activity is known as speculation.

The Invisible One Quadrillion Dollar Equation

Asymmetric Leverage and Systemic Risk

According to various distinguished sources including the Bank for

International Settlements (BIS) in Basel, Switzerland -- the central bankers' bank -- the

amount of outstanding derivatives worldwide as of December 2007 crossed USD 1.144

Quadrillion, ie, USD 1,144 Trillion. The main categories of the USD 1.144 Quadrillionderivatives market were the following:

1. Listed credit derivatives stood at USD 548 trillion;


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.99 2.2

Top 6 Banks - total $4.91 tril. $168.39 tril. Average

34.3

Source: The 2007 annual reports of these six banks.

So, these six banks exposure to derivatives are leveraged an average rate of 34.3times their total assets. Should one, or more, or all of these banks fail, who covers these

exposures? Under any reasonable definition, these six banks are totally bankrupt.

Washingtonblog.com, on May 18, 2012, reported that the global derivative market was

$1.4 quadrillion, or 20 times larger than the Global Economy.

Credit Default Swaps

Wikipedia defines Credit Default Swaps (CDS) as - a credit derivative contract

between two counterparties. The buyer makes periodic payments (premium leg) to theseller, and in return receives a payoff (protection or default leg) if an underlying

financial instrument defaults. CDS contracts have been incorrectly compared with

insurance, because the buyer pays a premium and, in return, receives a sum of money

if a specified event occurs. However, there are a number of differences between CDS

and insurance; the buyer of a CDS does not need to own the underlying security; in

fact the buyer does not even have to suffer a loss from the default event.

Matthias Chang, author of Future Fastforward, Brainwashed for War

Programmed to Kill, and The Shadow Money Lenders, in one of his newsletters to hisfriends, estimates that the face amount of CDS were as follows:

Year Trillion $

2001 - $.9189

2002 - 2.2

2003 - 3.8

2004 - 8.4

2005 - 17.4

2006 - 34.4

2007 - 62.2

June 2008 - 54.6

As of 7/1/2012, the CME Group reports that the total volume of Interest Rate Swapswas $532.7 billion, the Open Interest amount was $311.8 billion, and that the total

volume of Credit Default Swaps cleared was $128.5 billion and the Open Interest

amount was $38.8 billion. Source: www.cmegroup.com/trading/cds/files/cds-buyside.pdf


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When a major financial institution, such as Merrill Lynch, Lehman Brothers andothers, go belly up, what happens to their Credit Default Swaps and Derivatives?

Wikipedia defines Ponzi Scheme as -A Ponzi scheme is a fraudulent investment

operation that pays returns to investors from their own money or money paid by

subsequent investors rather than from any actual profit earned. The Ponzi scheme

usually offers returns that other investments cannot guarantee in order to entice newinvestors, in the form of short-term returns that are either abnormally high or

unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises

and pays requires an ever-increasing flow of money from investors in order to keep the

scheme going.

The system is destined to collapse because the earnings, if any, are less than the

payments. Usually, the scheme is interrupted by legal authorities before it collapses,

because a Ponzi scheme is suspected or because the promoter is selling unregistered

securities. As more investors become involved, the likelihood of the scheme coming tothe attention of authorities increases.

Source:http://en.wikipedia.org/wiki/Ponzi_scheme

Bernard Lawrence Bernie Madoff is the most current example of a major

Ponzi scheme, in which he scammed his clients and friends for over $50 billion. Federal

prosecutors estimated client losses, which included fabricated gains, of almost $65billion. U.S. District Judge Denny Chin scheduled a June 16, 2009, sentencing for

Madoff, but also ordered him immediately jailed pending the sentencing.Derivatives and Credit Default Swaps are completely unregulated by any state or

federal agency!

If the financial institutions average exposure to derivatives and credit default

swaps are on the order of magnitude of over 35 times their total assets, then Derivatives

and Credit Default Swaps are a massive Ponzi scheme perpetrated by these financial

companies. Therefore, it should not be very difficult to charged the executives of these

companies with fraud, put them on trial, and if found guilty, fine them very heavily and

send them to prison for the rest of their lives. They have caused very severe hardshipsfor most of the citizens of the entire world. Shame on them.

Latest Major Bankruptcy News (as of 9 July 2008 at 4:00 am)

2007 06 13 IndyMac Sued Over Investor Claims It Hid Loan Losses

2008 06 30 IndyMac to Trim Operations, Not Shut Down, Perry Says

2008 07 01 IndyMac Chief Financial Officer A. Scott Keys Resigns

2008 07 07 IndyMac Cuts Half its Staff as Mortgage Losses Mount

2008 07 08 IndyMac Falls After Regulators Say It Isnt `Well Capitalized


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2008 07 10 Roskilde Bank Receives Liquidity From Danish Central Bank

2008 07 11 Danske Bank ikke interesseret i Roskilde Bank

2008 07 11 Danish Central Bank Bails Out Roskilde Bank

2008 07 11 Roskilde Drops in Denmark After Central Bank Bailout

2008 07 11 IndyMac Bancorp Is Seized By Federal Regulators

2008 07 11 IndyMac Seized by U.S. Regulators Amid Cash Crunch

2008 07 25 My Experience at Indy Mac: Fraud, Corruption, Criminality

2008 07 26 Sinking IndyMac sought funding lifelines

2008 08 15 McCains Son Sat on Troubled Banks Board

2008 08 20 FDIC Releases Details on IndyMac Loan Mods; Questions Remain

2008 08 20 California mulls probing senator over IndyMac crash

2008 09 05 Regulators Shutter Silver State Bank

2008 09 19 Ameribank of West Virginia closed by regulators

2008 09 25 WaMu Seized by U.S., Assets Sold to JPMorgan in Record Failure

2008 09 25 WaMus 42-Story Seattle Headquarters Acquired in JPMorgan Deal

Source: http://www.creditwritedowns.com/2008/07/bankrupt-global-financial-

institutions.html

Additional bankruptcies since 9 July 2008:

2008 09 14 Merrill Lynch announced that it had agreed to be purchased by Bank

of America

2008 09 14 Lehman Brothers announced that it would file for liquidation

That is why, in late September 2008, Treasury Secretary Henry Merritt "Hank"

Paulson, Jr. and VP Dick Cheney went screaming to Congress for a bailout of $700

billion for the banks. They refused to give the details, but said that if Congress did not

give the banks this $700 billion the worlds economy would go into total meltdown.

Congress quickly added $150 billion in pork to the bill and passed it on for the President

to sign. No conditions, no restrictions, no transparency, no accountability, and no

financial plan just let them have it. And, the American voters did not seemed to be

concerned about all this, because they re-elected almost all of Congress back into office

in November 2008. Is this a great country, or what?

Paulson was Staff Assistant to the Assistant Secretary of Defense at The

Pentagon from 1970 to 1972. He then worked for the administration of U.S. President


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Richard Nixon, serving as assistant to John Ehrlichman from 1972 to 1973, during the

events of the Watergate scandal for which Ehrlichman was convicted, and sentenced to

prison.

He joined Goldman Sachs in 1974, working in the firm's Chicago office under

James P. Gorter. He became a partner in 1982. From 1983 until 1988, Paulson led the

Investment Banking group for the Midwest Region, and became managing partner ofthe Chicago office in 1988. From 1990 to November 1994, he was co-head of

Investment Banking, then, Chief Operating Officer from December 1994 to June 1998;

eventually succeeding Jon Corzine (now Governor of New Jersey) as its chief

executive. His compensation package, according to reports, was US $37 million in

2005, and US $16.4 million projected for 2006. His net worth has been estimated at

over US $700 million.

Source: http://en.wikipedia.org/wiki/Henry_Paulson_Jr.

While the world economic leaders scramble for solutions, the average citizens

must deal with a deep recession, and possibly a very deep depression for the next 18 to48 months.

How to Fix It

1. Inasmuch as credit default swaps and derivatives are unregulated,

uncontrolled, and are a Ponzi scheme, the Congress must pass laws completely

outlawing such instruments.2. All financial institution executives who participated in the creation and

marketing of derivatives and credit default swaps should be investigated, charged with

the crime of fraud, and if found guilty, fined to the limits of the law and sent to prison for

the rest of their lives.

3. Similar to the process that the Food & Drug Administration (FDA) regulates

the creation of new drugs, the U.S. Congress should approve the creation of any new

financial instruments, such as derivatives and the like. Congress must perform very

careful oversight of this new process.

Pro forma Financial Statements

Answers.com defines pro forma as -A Latin term meaning "for the sake of

form". In the investing world, it describes a method of calculating financial results in

order to emphasize either current or projected figures. Investors should heed caution

when reading a company's pro-forma financial statements, as the figures may not

comply with generally accepted accounting principles (GAAP). In some cases, the

pro-forma figures may differ greatly from those derived from GAAP.

About.comEconomicsPro defines pro forma as proforma describes a

presentation of data, typically financial statements, where the data reflect the world on


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borrow the shares from someone who owns them with the promise that the investor will

return them later. The investor immediately sells the borrowed shares at the current

market price. If the price of the shares drops, he/she "covers the short position" by

buying back the shares, and his/her broker returns them to the lender. The profit is the

difference between the price at which the stock was sold and the cost to buy it back,

minus commissions and expenses for borrowing the stock. But if the price of the shares

increase, the potential losses are unlimited. The company's shares may go up and up,but at some point the investor has to replace the 100 shares he/she sold. In that case,

the losses can mount without limit until the short position is covered. For this reason,

short selling is a very risky technique. For a while, SEC rules only allowed investors to

sell short only on an uptick or a zero-plus tick, to prevent "pool operators" from

driving down a stock price through heavy short-selling, then buying the shares for a

large profit. This rule was eliminated in July 2007.

Naked Short Selling Wikipedia defines Naked Short Selling as - Naked short selling, or naked

shorting, is a type of financial Speculation. It is the practice of selling a stock short,

without first borrowing the shares or ensuring that the shares can be borrowed as is

done in a conventional short sale. When the seller does not obtain the shares within the

required time frame, the result is known as a "fail to deliver". The transaction

generally remains open until the shares are acquired by the seller or the seller's broker,

allowing the trade to be settled. Naked short selling can be used to manipulate the

price of securities by driving their price down, and its use in this way is illegal.

Speculators are notoriously guilty of using short selling to drive down the values

of stocks, bonds, commodities and currencies, so that they can realize huge profits from

such actions by buying back these items (which they never owned in the first place) once

these investments reach rock bottom. Often a group of investors will secretly ban

together and drive the value of stocks, bonds, commodities and currencies to rock

bottom for their profit, similar to a pack of wolves going after a young deer.

Currency Speculation

Currency speculation, or hedging, has destroyed the economies of many entire

nations for profit. On average, over $2 trillion in currency exchanges occur each

business day.

Dr. Mahathir Bin Mohamad, the former Prime Minister of Malaysia, who wrote

on September 26 Because of the extraordinary greed of American financiers and

businessmen, they invent all kinds of ways to make huge sums of money. We cannot

forget how in 1997-98 American hedge funds destroyed the economies of poor

countries by manipulating their national currencies. The Prime Minister is recognized


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as an authority on the role of hedge funds in financial crises, given his experience

managing the Asian currency crisis as it engulfed his nation in September eleven years

ago. He is particularly critical of the role of George Soros

Source: http://sternfinance.blogspot.com/2008/10/role-of-hedge-funds-

in-financial-crises.html

The 3/3/2009, edition ofThe Financial Times newspaper reported:

The South Korean won on Tuesday rebounded from the weakest level in 11

years, helped by suspected intervention by the foreign exchange authorities. The won

has lost about 18 per cent of its value against the dollar this year to become the worst-

performing major currency in Asia amid growing concerns about the countrys

debt-financing ability. The Korean currency fell as much as 1.5 per cent on Tuesday

morning as the stock market fell below the 1,000 mark. But it rebounded 1.2 per cent to

close at 1,552.40 per dollar, ending a three-day losing streak. Traders say Won 1,600

appears to be the dollars short-term peak. Traders said the government repeated its

intervention after the finance minister warned against currency speculation.

[Authorities] are resolutely watching the foreign exchange market, finance minister,

Yoon Jeung-hyun, told reporters. [The dollar/won] will not continue to go in one

direction forever.

Hedge Funds

InvestorWords.com defines hedge funds as -A fund, usually used by wealthyindividuals and institutions, which are allowed to use aggressive strategies that are

unavailable to mutual funds, including selling short, leverage, program trading, swaps,

arbitrage, and derivatives. Hedge funds are exempt from many of the rules and

regulations governing other mutual funds, which allows them to accomplish aggressive

investing goals. They are restricted by law to no more than 100 investors per fund, and

as a result most hedge funds set extremely high minimum investment amounts, ranging

anywhere from $250,000 to over $1 million. As with traditional mutual funds, investors

in hedge funds pay a management fee; however, hedge funds also collect a percentage

of the profits (usually 20%).

A major player in the hedge fund market is George Soros. Market Follyreported that:

Soros Fund Management is run by George Soros. Soros is famous for his stellar

returns with partner Jim Rogers when they ran their Quantum fund. Now, he has

carried his investment style over to his own firm, Soros Fund Management. Whether it

be equities, bonds, currencies, debt, or commodities, Soros is more of a global macro

player, seeking investments in whatever market they can gain an edge. So, keep in mindthat these equity positions only represent a portion of the fund's overall holdings. They

are not required to disclose holdings outside of equities, notes, and stock options.


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Source: http://www.marketfolly.com/2009/02/george-soros-hedge-fund-soros-fund.html

George Soros has been accused by several nations, such as Malaysia, Thailand,

Indonesia, and Mexico, of having crashed their economies by speculating in their

currencies by short selling practices. Several hedge funds could form a cabal and

destroy the economies of just about any nation around the world, solely for profits.

How to Fix It

Nobody except the Elite are allowed to sell something that they do not own. In

the real world, anyone doing so would be committing fraud. Therefore, all short selling

ofany kind, should be outlawed completely by Congress, and without reservations. No

person, or organization should be allowed to sell anything that they do not legally own aclear title to.

Financial Oversight

The Federal Reserve System (FED) was given the right to create money andcredit within the United States by the Federal Reserve Act of 1913. The stated

justification for doing so was that the Fed would stabilize the financial markets.

The FEDs stated Monetary Policy is - The goals of monetary policy are spelled

out in the Federal Reserve Act, which specifies that the Board of Governors and the

Federal Open Market Committee should seek to promote effectively the goals of

maximum employment, stable prices, and moderate long-term interest rates.

Most people have apparently forgotten the Savings & Loan debacle of the 1980s,

when over 1,000 crooks were convicted of fraud as a result of the deregulation of the S& L Industry. That was about 25 years ago and the stripes have not changed on the

skunks. By padding the Congressmens pockets by lobbyist, our financial industry was

again deregulated, leading to the 2007 financial crisis, which just about took down the

economies of every nation in the world. The FED should have stopped this in the very

beginning, but it ignored its responsibility. During the 1st

quarter of 2009, lobbyistexpenses lobbying Congress and all federal agencies were $27,571,656, with $285,851

contributed to the House Financial Services Committee members. Source: Wall Street

Journal, 6/3/2009.

Hyperinflation

Get ready for hyperinflation. The worlds central banks have pumped many trillions of

dollars into the world economy, trying to cure the financial crisis. The June 10, 2009

edition of the Wall Street Journal reports:

The Federal Reserve apparently can't account for $9 trillion in off-balance

sheet transactions. When (May 12, 2009) Rep. Alan Grayson (D-Orlando) asked


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Inspector General Elizabeth Coleman of the Federal Reserve some very basic

questions about where the trillions of dollars that have come from the Fed's expanded

balance sheet, the IG didn't know.

Source: http://moneynews.newsmax.com/financenews/feds_lost_nine_trillion/2009/05

/12/213463.html

How to Fix It

Federal Reserve System

The U.S. recession (possibly depression) of 2007 2009, (and counting) veryclearly proves that the FED has grossly failed in its oversight functions, yet again. The

FED is beyond criminal law, so the only way to resolve this problem is to take very

drastic actions against the FED.

Ellen Hodgson Brown, an attorney from Newhall, California, has devised anexcellent solution to this problem Nationalize the FED.

After the FED has been nationalized, and in order to prevent the Elite from

gaining access to our money system again in the future, the U. S. Constitution must beamended as follows:

Congress has sole authority to coin money, print paper money, create

electronic money, and credit and to determine the value thereof. Congress does not

have the right to transfer this ability to create money and credit on to any otherpublic or private entity, such as an individual, group, company, or corporation,whatsoever.

Nationalize the Federal Reserve System

By

Ellen Hodgson Brown

The biggest trade secret of the banking business is that banks create themoney they lend out of thin air. The process by which banks create money is so

simple, wrote economist John Kenneth Galbraith, that the mind is repelled. Banks

simply write credit into an account in exchange for the borrowers promise to repay.

In the case of the federal government, the bank that monetizes its promise to repay is

the privately-owned Federal Reserve; and today the Fed is taking that monetizing

power to such dangerous lengths that the currency could be hyperinflated into

oblivion.

Implications and Possibilities

When you understand this sleight of hand, the way out of the governments debt


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trap appears equally simple: Congress could just nationalize the Federal Reserve and

print Federal Reserve Notes itself. This government-issued money could then be either

spent or lent into the economy to get the wheels of production rolling again.

But isnt the Federal Reserve already a federal agency? That commonly held

misconception was dispelled when the Fed refused to comply with the Bloomberg

demand under the FOIA. Most of the documents, said the Fed, are held by the NewYork Federal Reserve; and the New York Fed is not subject to the FOIA because it is

not a federal agency.

It is not a federal agency but it should be, because we the people are picking up

the tab. The Fed and the banks are creating $8 trillion out of thin air, nearly doubling

the money supply; and that means the value of our dollars is being diluted by nearly

50%. If it is our money, we should get the interest, have the right to full accountability,

and have control over where the money goes. Instead of pouring money into a massive

black hole on the derivatives books of bankrupt banks, Congress could and should beusing the national credit card to bolster manufacturing, housing and infrastructure

development, either by making low-interest credit readily available to qualified

borrowers or by a direct infusion of government-issued dollars into the economy.

The objection to the government printing dollars and simply spending them on

public projects has always been that it would be inflationary, but that alternative would

actually be less inflationary than letting the privately-owned Federal Reserve print

dollars and swap them for U.S. debt, as is being done now. This is because Treasury

debt, once created, is never paid off. The U.S. federal debt hasnt been paid off sincethe days of Andrew Jackson. Instead, U.S. government securities wind up circulating in

the economy along with the dollars that were printed to buy them. These securities

represent a claim against U.S. goods and services just as dollars do. Indeed, that is

why the governments securities are so highly valued: they are just as good as dollars.

They can be cashed in at any time for their dollar equivalent or deposited and

borrowed against for an equivalent sum in loans, and they can be swapped for the

riskier toxic collateral that is tying up the banks capital, preventing the banks from

making new loans. Federal securities are particularly valuable to banks, because theycan become the reserves for generating many times their face value in new loans. If

the government were to print dollars directly, the bonds would be taken out of the

picture. There would be debt-free, permanent money in circulation, money not subject

to perpetual servicing with interest by the taxpayers.

Once the FED has been nationalized it should be referred to as the New FED.

The New FED should loan money, at a small interest rate, such as 1-2%, to

states, counties and municipalities for the construction and maintenance of publicinfrastructures. It could also loan money to these entities so that they can retire their

bonds that were issued at higher rates of interest. The indirect impact on U.S. citizens

would then be to have their local taxes lowered.


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The New FED should loan money, at interest, to national and community banksand credit unions, on the condition that these financial institutions, by law, must not

charge interest rates of more than 4% above the rate that they pay as they borrow from

the New FED. This would automatically reduce the cost of money to the public,

because any bank that wanted to compete in the lending business would have to meet or

beat the rates of the banks that borrow from the New Fed, in order to stay in business.

National Debt

After Nationalizing the FED, Congress should simply cancel all U.S. debt owned

by the New FED. All debt owned by anyone else, or any other nation should simply be

monetized replace all outstanding U.S. Treasury bonds, notes and bills with cash (new

Greenbacks).

Ellen Hodson Brown addresses this subject on pages 302-303 of her book, Web

of Debt:

For the Federal Reserve to monetize the governments debt with newly-

issued dollars is actually nothing new. When no one else buys U.S. securities, the Fed

routinely steps in and buys them with money created for the occasion. What is new, and

what has analysts alarmed, is that the whole process is now occurring behind a heavy

curtain of secrecy. Richard Daughty, an entertaining commentator who writes in The

Daily Reckoningas the Mogambu Guru, commented in April 2006:

There was... a flurry of excitement last week when there was

a rumor that the Federal Reserve had printed up, suddenly, $2

trillion in cash. My initial reaction was, of course, "Hahahaha!"

and my reasoning is thus: why would they go through the hassle?

They can make electronic money with the wave of a finger, so why

go through the messy rigamarole of dealing with ink and paper

and all the problems of transporting it and counting it and storing

it and blah blah blah?

But... this whole "two trillion in cash" scenario has some,um, merit, especially if you are thinking that foreigners dumping

American securities. . . would instantly be reflected in instantaneous

losses in bonds and meteoric rises in interest rates and the entire

global economic machine would melt down. Bummer.

So maybe this could explain the "two trill in cash" plan: With this amount of

cash, see, the American government can pretty much buy all the government securities

that any foreigners want to sell, but

the inflationary effects of creating so much money won't be felt inprices for awhile! Hahaha! They think this is clever!"

It might be clever, if it really were the American government buying back its


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own securities; but it isn't. It is the private Federal Reserve and private banks. If

dollars are to be printed wholesale and federal securities

are to be redeemed with them, why not let Congress do the job itself and

avoid a massive unnecessary debt to financial middlemen? Arguably,

as we'll see later, if the government were to buy back its own bonds

and take them out of circulation, it could not only escape a massive

federal debt but could do this without producing inflation. Governmentsecurities are already traded around the world just as if they were money.

They would just be turned into cash, leaving the overall money supply

unchanged. When the Federal Reserve buys up government bonds with

newly-issued money, on the other hand, the bonds aren't taken out of

circulation. Instead, they become the basis for generating many times

their value in new loans; and that result is highly inflationary.

Web of Debt, Page 47-49, states:

The Bankers' Paper Money Comes in

Through the Back Door

While the Founding Fathers were pledging their faith in gold and

silver as the only "sound" money, those metals were quickly proving

inadequate to fund the new country's expanding economy. The national

war debt had reached $42 million, with no silver or gold coins available

to pay it off. The debt might have been avoided if the government had

funded the war with Continental scrip that was stamped "legal tender,"making it "money" in itself; but the revolutionary government and the

States had issued much of their paper money as promissory notes pay-

able after the war. The notes represented debt, and the debt had now

come due. The bearers expected to get their gold, and the gold was not

to be had. There was also an insufficient supply of money for conducting

trade. Tightening the money supply by limiting it to coins had quickly

precipitated another depression. In 1786, a farmers' rebellion broke out

in Massachusetts, led by Daniel Shays. Farmers brandishing pitchforkscomplained of going heavily into debt when paper money was plentiful. When it was no

longer available and debts had to be repaid in the

much scarcer "hard" coin of the British bankers, some farmers lost their

farms. The rebellion was defused, but visions of anarchy solidified the

sense of an urgent need for both a strong central government and an

expandable money supply.

The solution of Treasury Secretary Hamilton was to "monetize" the

national debt (emphasis added); by turning it into a source of money for the country.He

proposed that a national bank be authorized to print up banknotes and


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swap them for the government's bonds. The government would pay

regular interest on the debt, using import duties and money from the

sale of public land. Opponents said that acknowledging the government's debt at face

value would unfairly reward the speculators who had

bought up the country's I.O.U.s for a pittance from the soldiers, farmers

and small businessmen who had actually earned them; but Hamilton

argued that the speculators had earned this windfall for their "faith inthe country." He thought the government needed to enlist the support

of the speculators, or they would do to the new country's money what

they had done to the Continental. Vernon Parrington, a historian

writing in the 1920s, said:

In developing his policies as Secretary of the Treasury, [Hamilton]

applied his favorite principle, that government and property must

join in a close working alliance. It was notorious that during theRevolution men of wealth had forced down the continental currency for

speculative purposes; was it not as certain that they would support

an issue in which they were interested? The private resources of

wealthy citizens would thus become an asset of government, for the

bank would link "the interest of the State in an intimate connection

with those of the rich individuals belonging to it."

Hamilton thought that the way to keep wealthy speculators from

destroying the new national bank was to give them a financial stake in it.His proposal would do this and dispose of the government's crippling

debts at the same time, by allowing creditors to trade their government

bonds or I.O.U.s for stock in the new bank.

But Hamilton's plan had other strategic advantages, and it won the

day. Besides neatly disposing of a crippling federal debt and winning

over the "men of wealth," it secured the loyalty of the individual States by

making their debts too exchangeable for stock in the new Bank. The move

was controversial; but by stabilizing the States' shaky finances, Hamilton

got the States on board, thwarting the plans of the pro-British faction

that hoped to split them up and establish a Northern Confederacy.

[To monetize means to convert government debt from securities evidencing

debt (bills, bonds and notes) into currency that can be used to purchase goods

and services.]

Matthew Rognlie offers the following:

Wednesday, June 17, 2009

"Monetizing" the debt: a clarification in terms


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The buzz in some circles is that we'll have to "monetize" the federal debt,

printing money to satisfy our obligations. I want to put aside for a moment the question

of whether this will actually happen and clarify some vocabulary, because

monetization is not the right term for the majority of the reduction in our debt burden

that would result from an inflationary monetary policy.

When debt is monetized, it's converted into currency. The Federal Reservecreates $100 billion in new monetary base, uses it to buy Treasuries, and thus reduces

the amount of government debt held by the public. There's another way, however, that

printing money can ease the debt burden, and it's almost certainly more significant.

Aside from a small percentage (~10%) issued in inflation-protected securities

called TIPS, most of our national debt is held in nominal bonds, which pay a fixed

dollar amount that doesn't depend on inflation. If the price level unexpectedly

increases by 100%, therefore, our real debt will be cut in halfadjusting for inflation,

our bonds will be worth half what they once were, and be half as difficult to pay back.

Why will this have a larger effect than printing money? Subtracting excess

reserveswhich are kept out of the broader money supply by the Fed's current policy

of paying interest on reserves, and will be unwound as the economy begins to

recoverthe monetary base in the US is a little less than $1 trillion. Accordingly, if we

doubled the monetary base, we would be able to monetize a $1 trillion of debt. This is

no small amount, but it only makes a dent in the federal debt held by the public,

currently a little over $7 trillion. If left out in the economy, however, the new monetary

base would cause prices to double, cutting the debt held in nominal bonds in half. Thearithmetic here is simple: $3.5 billion is a lot more than $1 trillion, and the main effect

is from inflating away the value of our debt, not from monetization specifically.

Many times, commentators who understand these issues perfectly well

nevertheless use "monetization" as a catch-all for the total effect of inflationary

monetary policy on our debt. I don't think this is wise. Confusion about monetary

economics is already overwhelming, and when it's not difficult to use more precise

vocabulary, we should make the extra effort.

Source: http://makeanysense.blogspot.com/2009/06/monetizing-

debt-clarification-in-terms.html

So, if monetizing the federal debt will not change the M3 money supply, because

both cash and treasury notes are included in the calculation of M3, then there should be

no inflationary effect. Therefore, the massive burden of the federal debt should

immediately be monetized.

Banking in the United States The Federal Deposit Insurance Commission (FDIC) was chartered to protect thedepositors in U.S. banks, up to $100,000 per person, per bank. After the September


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2008-financial crisis the limit on each account was raised to $250,000, until January2010, in order to try to stop runs on the banks. Sub-prime lending, credit default swaps,

derivatives and other very poor banking practices caused almost all U.S. banks values to

crash. On March 6, 2009, Citigroups stock had dropped to $0.97 per share, from a

high of $55.20 per share on May 30, 2007. JP Morgan Chases stock fell from $48.45

on July 1, 2007, to $15.90 on March 9, 2009. Bank of America fell from $20.70 in

2006, to $2.53 per share in March 2009.

Due to these meteoric declines of the banks, Congress passed the first Troubled

Asset Relief Program (TARP), with an infusion of the first $350 billion, out of a total of

$700 billion. The largest banks receiving Asset Guarantees TARP funds were: Citigroup

- $50.306 bil.; Bank of America - $45.118 bil.; JP Morgan Chase - $25 bil.; and Wells

Fargo - $25 bil. Congress failed to include in the TARP provisions for accountability

and transparency, so who knows where this money went.

The massive exposure to credit default swaps and other derivatives have literallymade the very largest banks insolvent, but they refuse to go into bankruptcy. In Japan

they are referred to as Zombie banks. The only way to clean up the credit default swaps

and derivatives dark cloud is to punish these banks and other financial institutions by

Nationalizing all National banks, insurance companies and other financial institutions that

have Credit Default Swaps (CDS) and derivative exposures in excess of their net worth.

Then these CDS and derivatives must be wound down and forever made illegal.

Banking with the U.S. Government

By

Ellen Hodgson Brown

The superior safety and security that investors feel when they stash their

savings with the U.S. government could be achieved by nationalizing bankrupt banks.

This is not a radical idea. Rather than being bailed out with taxpayer money, insolvent

banks are actually supposed to be put into receivership under the FDIC (a government

agency). It then has the option of taking the banks stock (effectively nationalizing it) in

return for getting the bank back on its feet. This was done, for example, withContinental Illinois, the nations fourth largest bank, when it went bankrupt in the

1990s.

In a number of capitalist countries, including Switzerland and India,

publicly-owned banks operate right alongside privately-owned banks. Studies in India

comparing public and private banks have found that Indian public banks not only are

more secure, but they give superior customer service. In European countries, working

for the government is considered more prestigious than working for the private sector,

and government employees have better training. Interestingly, the first banks owned

publicly in democratic communities were established in the American colonies. It may

be time to return to our roots and restore the U.S. banking system to public ownership


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again.

The top 19 U.S. banks were required to submit to a stress test of their ability to

serve as viable banks. The results were posted May 7, 2009. The results of the stress

test as reported in the May 9, 2009, edition ofFinancial Times, were:

Banks with adequate capital were: JPMorgan, Goldman Sachs, Metlife, Bank of

NY Melon, Capital One, American Express, US Bancorp, State Street and BB&T.

Banks needing extra capital: Citigroup $5.5 bil., Bank of America $33.9 bil.,

Wells Fargo $13.7 bil., GMAC $11.5 bil., Morgan Stanley $1.8 bil., PNC Financial

Services $0.6 bil., Regions Financial $2.5 bil., Sun Trust $2.2 bil., Fifth Third Bancorp

$1.1 bil., and Keycorp $1.8 bil.

How to Fix It

Since 97% of the Money Supply is created as commercial loans, rather thancontinuing to bail out these troubled banks, Congress should nationalize all National

banks, and restructure all other banks and credit unions so that they can no longer createmoney and credit, by raising their reserve limits from 10% to 100%. Banks wanting to

not be nationalized should be given the opportunity to convert to local, or state banks.

After doing so, these banks and credit unions should only be allowed to loan funds that

are 100% backed by deposits, or bank capital, or capital borrowed from the New FED.Any bank with total derivatives and credit default swaps in excess of their net worth

should be included in this nationalization.

U.S. Federal Income Tax Eliminated

Ellen Hodgson Brown, a brilliant attorney/economist, has proved beyond ashadow of a doubt, that nationalizing the Federal Reserve System could completely

eliminate the need for a federal income tax:

What impact would those alterations have on the federal

income tax burden? To explore the possibilities, we'll use U.S. data for

FY 2005 (the fiscal year ending September 2005), the last year for whichM3 (which is the M2 money supply + large time deposits, institutional money-market

funds, short-term repurchase agreements, along with other larger liquid assets) was

reported:

Total individual income taxes in FY 2005 came to $927 billion.

Taxpayers paid $352 billion in interest that year on the federal debt.

If the debt had been paid off, this interest could have been cut from

the national budget, reducing the tax burden by that sum.'

Total assets in the form of bank credit for all U.S. commercial

banks in FY 2005 were reported at $7.4 trillion. Assuming an


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average collective interest rate on bank loans of about 5 percent,

approximately 370 billion dollars were thus paid in interest that year.

If roughly half this sum had gone to a newly-formed national banking

system -- for loans made at the federal funds rate to private lending

institutions, interest on credit card debt, loans to small businesses,

and so forth-- the government could have earned around $185 billion

in interest in FY 2005.

Adding these two adjustments together, the public tax bill might

have been reduced by around($352+185) $537 billion in FY 2005. Deducting this

sum from $927 billion leaves $390 billion. This is the approximate sum

the government would have had to generate in new Greenbacks to

eliminate federal income taxes altogether in FY 2005.

What would adding $390 billion do to the money supply and

consumer prices? In 2005, M3 was $9.7 trillion. Adding $390 billionwould have expanded M3 by only 4 percent -- Milton Friedman's

modest target rate, and far less than the money supply actually grew in

2006. That was the year the Fed quit reporting M3, but the figures have

been calculated privately by other sources. Economist John Williams

has a website called "Shadow Government Statistics," which exposes

and analyzes the flaws in current U.S. government data and reporting.

He states that in July 2006, the annual growth in M3 was over 9 percent.

Weve seen that this growth must have come from fiat money created as loans

by the Federal Reserve and the banks. Thus if new debt-free Greenbacks had been

issued by the Treasury instead, inflation of the money supply could actually have been

reduced from 9 percent to a modest 4 percent without cutting government programs

or adding to a burgeoning federal debt.

Horn of Plenty: Avoiding Inflation

by Increasing Supply and Demand Together

New Greenbacks in the sum of $390 billion dollars would have

been enough to eliminate income taxes, but according to Keynes, the

government could have issued quite a bit more than that without

dangerously inflating prices. He said that if the funds were used to put

the unemployed to work making new goods and services, new currency

could safely be added up to the point of full employment without

creating price inflation. The gross domestic product (GDP) would just

increase by the value of the newly-made goods and services, keepingsupply and demand in balance.

How much is the U.S. workforce under-employed today? In the


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first half of 2006, the official unemployment rate was 4.6 percent; but

critics said the figure was low, because it included only people applying

for unemployment benefits. It did not include those who were no

longer eligible for benefits, those who had given up, or those whose

skills and education were under-utilized - people working part-time

who wanted to work full-time, engineers working as taxi drivers,

computer programmers working as store clerks, and so forth. Accordingto Williams' "Shadow Government Statistics" website, the real U.S.

unemployment figure in early 2006 was a full 12 percent.

The reported GDP in 2005 was $12.5 trillion. If Williams'

unemployment figure is correct, $12.5 trillion represented only 88 percent

of the country's productive capacity in 2005. Extrapolating upwards,

100 percent productive capacity would have generated a GDP of $14.2

trillion, or $1.7 trillion more than was actually produced in 2005. That

means another $1.7 trillion in new Greenbacks could have been spent into the

economy for productive purposes in 2005 without creating significant price

inflation.

What could you do with $1.7 trillion ($1,700 billion)? According

to a United Nations report, in 1995 a mere $80 billion added to existing

resources would have been enough to cut world poverty and hunger in

half, achieve universal primary education and gender equality, reduce

under-five mortality by two-thirds and maternal mortality by three-quarters, reverse the spread of HIV/AIDS, and halve the proportion

of people without access to safe water world-wide.

Source: Pages 422-423,Web of Debt, byEllen Hodgson Brown

Ellen Brown developed her research skills as an attorney practicing civil

litigation in Los Angeles. In Web of Debt, her latest book, she turns those skills to an

analysis of the Federal Reserve and the money trust. She shows how this private

cartel has usurped the power to create money from the people themselves, and how we

the people can get it back. Her earlier books focused on the pharmaceutical cartel that

gets its power from the money trust. Her eleven books include Forbidden Medicine,

Natures Pharmacy (co-authored with Dr. Lynne Walker), and The Key to Ultimate

Health (co-authored with Dr. Richard Hansen). Her websites are www.webofdebt.com

and www.ellenbrown.com.

So, adding to Ellen Browns suggestions, the IRS Approved Annual Budget for

2008, was $11.4 billion, and the interest on the national debt in 2008, was $451+ billion.

So, if the Income Tax were to be eliminated then the Internal Revenue Service should beeliminated as well. Then, if the IRS was abolished, we nationalized the FED and wemonetized our debt, this would result in a reduction in our federal budget of $11.2 + 451,

or $462.2 billion, leaving an annual budget surplus of $462.2 390 = $72.2 billion. This


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means that instead of needing to add $390 billion in Greenbacks, we would have a netfederal budget surplus. If we have honest, caring and patriotic elected officials in office,

who are mostly from Independent Party members, then there is no need for the Federal

Government to ever go into debt again.

Onerous Lending Practices

Lending institutions, such as banks, credit unions, mortgage companies, etc., have

established a pattern of gouging the public for the use of their money, which in most

cases is created out of thin air.

Loan Amortizations In the old days when someone loaned another personmoney at interest, at the end of the loan period the borrower paid back the original

amount plus an agreed upon amount of interest. Today the Elite have devised loan

amortization schedules that severely gouge the borrowers.

A Typical Loan Amortization Schedule

Loan based on 80% of the appraised value of the asset being mortgaged

Loan Amount: $100,000, Interest Rate: 6.25%, Period: 5 years

Paymentsof$615.72 per monthly for 360 months

The accumulated interest halfway through the loan, or after 180 payments:

$82,638.96

Equity at mid-point, or after 180 payments: $71,809.36

Total interest paid during the 5-years of the loan: $121,656.04

The first payment is 84.59% interest.

The 51st payment is still 80.02% interest.

The 180th payment (or half way through the loan) is still 60.95% interest.

Payments dont reach 50% interest until the 228th payment (after 63.3% of thenumber of payments have been made.)

Other Loan Practices

Loan practices vary between states, so you should contact your State AttorneyGenerals Office to determine the allowable rates in your state.

State of Texas -A commercial loan is a loan made primarily for use in the

operation of a business, or for purposes of investment, agriculture or similar ventures.Commercial loans are authorized by Chapter 306 of the Texas Finance Code. They are

currently subject to a commercial usury ceiling of 18 percent annual interest, which


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may float with inflation to 24 percent. Loans exceeding $250,000 may charge up to28

percent interest.

Consumer loans are those made to individuals for personal use and various

kinds of purchases. Limits on these loans vary. The law that governs the financing of

motor vehicle sales, for example, allows an effective annual interest of up to 27

percent. Pawn shop loans can have maximum interest rates of240 percent annually.Source: http://www.oag.state.tx.us/agency/weeklyag

/weekly_columns_view.php?id=175

Credit Cards

Credit cards are issued by many retail companies, most banks, and most credit

unions as a convenient way to obtain small loans for purchasing just about anything

food, merchandise, services, etc.

According to R. K. Hammer, banks will rake in nearly $22 billion in penalty

fees this year(2009). But card issuers arent just punishing consumers who pay late or

not at all. Even people who have never missed a payment are getting hit with higher

rates and fees. While interest rates have been falling in general, the average interest

rate on credit cards has climbed to 14%.

Source: http://moneyfeatures.blogs.money.cnn.com/2009/04/13/credit-card-fee-

frenzy/

Banks are notorious for their present-day (2009) credit card practices, such as:

As you make payments, they credit the lowest interest rates first.

Interchange fees typically $2.00 per $100 charged ($42 billion charged

nationwide in 2007)

Credit Card Processor fees (paid by the Merchants):

Gateway fee - $5.00 - 15.00

Statement fee $5.00 - 10.00

Monthly Minimum fee - $15.00 - 25.00

Per Transaction fee - $0.20 0.30

Address Verification fee - $0.05 - 0.10

Average Discount Rate 2.14 - 2.27%

Credit Card rates :

Purchases 10.00 34.99%


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Cash Advances 10.00 - 34.99%

Balance Transfer fees 2 - 4% of amount transferred

Credit Card fees (paid by holder of credit card)

Late Payment Fees $32.65 average

Overdraft line of credit - $15 25 per year, plus 15 18% interest onoverdraft amount

Courtesy overdraft protection - - $20 30 per year

Bounced check fee - $40.00 60.00 for each overdraft (if you are

overdrawn of 4-5 checks the fee would be 4-5 times $40 - $60 for each overdraft)

The FED Chairman, Ben Shalom Bernanke, has promised to make major

changes in credit card practices 18 months from now! (May 2009). This gives thecredit card issuers plenty of time to gouge the credit card holders until these changes

take place. When asked by members of the Senate Finance Committee why he could not

make these changes now, he simply sat silent in his smug way and did not answer.

How to Fix It

Real Consumers Bill of Rights

Congress must pass a Consumers Bill of Rights law, which should include at

least the following recommendations:

1. All collateral loans must be based on a minimum of 90% of the appraised

value of the asset being financed, with the buyer paying for the appraisal. If the lending

institution doubts the appraised value offered, then the institution should pay for a second

appraisal.

2. All loan payments must include 50% for the principal and 50% for the

interest

2. The maximum interest charged by any lending agency on any type of loan,

including credit cards, must be no more than the yield on the 30-year Treasury bonds,current at that date, plus 4%.

3. Credit card fees to be no more than:

Late Payment Fees $10.00

Overdraft line of credit - $10.00 per year, plus 9% interest on overdraft

amountCourtesy overdraft protection - - $10.00 per year

Bounced check fee - $10.00 for each overdraft


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4. Payments should be applied to the lowest interest rates first.

If the lending institutions dont like these new regulations, then they should

withdraw from offering credit cards. Everyone would probably be better off if credit

cards were eliminated all altogether.

Stocks, Bonds and Commodities

The Securities Exchange Commission (SEC) has the obligation to oversee theStocks, Bonds and Commodities markets. The New York Stock Exchange (NYSE),

National Association of Securities Dealers Automated Quotations (NASDAQ), the

American Stock Exchange (AMEX), and others in the U.S. report the status of the

companies listed on their exchanges. The Dow Jones Industrial Average (DJ) is the most

popular means for reporting the computed value of the stock prices of 30 of the largest

and most widely held public companies in the United States.

One would think that with all of this open reporting, that it would be verydifficult for anyone or any company to scam the markets, due to all of this (so called)

transparency. NOT TRUE! There are hidden groups who regularly manipulate the

markets and they do it LEGALLY.

The Plunge Protection Team (PPT) President Ronald Reagan signed

Executive Order 12631 in 1988, which created The Working Group on Financial

Markets (WGFM), or the PPT. This team is made up of the President, Secretary of the

Treasury, Chairman of the Federal Reserve System, the Chairman of the Securities &

Exchange Commission, and the Chairman of the Futures Trading Commission. Itsstated purpose is to enhance the integrity, efficiency, orderliness, and competitiveness

of our Nations financial Markets and maintain investor confidence. In plain English,

taxpayer money is being used to make the markets look healthier than they are.

Source: page 310, Web of Debt, by Ellen Hodgson Brown

We are not allowed to know what they do, when they do it, what they invest in,

or for what reasons absolutely no transparency. Also, who else knows what they do,

so that they can sell or buy the stocks, bonds, commodities or currencies being bought orsold by the PPT? Is this legal insider trading?

Primary Dealers Club (PDC) - Michael Bolser, member of the Gold Anti-TrustAction Committee, stated:

It may sound odd, but the FED occasionally gives money (permanent repos)

to its primary dealers (a list of about thirty financial houses, Merrill Lynch, Morgan

Stanley, etc). They never have to pay this free money back; thus the primary dealers

will pretty much do whatever the FED asks if they want to stay in the primary dealersclub. Source: page 310, Web of Debt, by Ellen Hodgson Brown

Exchange Stabilization Fund (ESF) The ESF was authorized by Congress to


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keep sharp swings in the dollars exchange rate from upsetting financial markets.

Market analyst Jim Sinclair writes:

Dont think of an investment type, or even as a hedge fund. The ESF has no

office, traders, or trading desk. It does not exist at all, aside from a fund of money and

accountants to keep records. It seems that orders come from the U.S. Secretary of the

Treasury, or his designate (which could be a partner of one of the internationalinvestment banks he comes from), to intervene in markets. Have you ever wondered

how these firms seem to be trading for their own accounts on the side of the

governments interest? Have you ever wondered how these firms always seem to be

profitable in their trading accounts, and how they wield such enormous positions?

Not only are they executing ESF orders, but in all probability, they are coat-tailing

trades while pretending there is a Chinese Wall between ESF orders and their own

trading accounts? Source: page 313, Web of Debt, by Ellen Hodgson Brown

Counterparty Risk Management Policy Group (CRMPG) is a private

fraternity of big New York banks and investment houses. Counterparties are parties

to a contract, normally having a conflict of interest. The CRMPGs dealings were

exposed in an article reprinted on the GATA website in September 2006, which was

supported by references to the website of the Federal Reserve and the CRMPG. The

author, who went by the name of Joe Stocks, maintained that the CRMPG was set up to

manipulate markets, and that it was all being done with the approval of the U.S.

government.

Source: page 314, Web of Debt, by Ellen Hodgson Brown

So, there you have it. Most of what you believed about the sanctity of the U.S.

financial markets is just not true. The Elite keep the public ignorant and confused by

using smoke and mirrors. The PPT, PDC, ESF and CRMPG are just four of the groups

involved in this grand deception. Certainly there are more behind the curtains.

How to Fix It

Congress must enact laws eliminating these behind-the-curtain organizationsand require total transparency of all financial markets. The general public will not regain

trust in these markets until it is all flushed out and these practices eliminated.

The Glass-Steagall Act

The Glass-Steagall Act of 1933 established the Federal Deposit Insurance Corporation

(FDIC) in the United States and included banking reforms, some of which were

designed to control speculation. Some provisions such as Regulation Q, which allowed

the Federal Reserve to regulate interest rates in savings accounts, were repealed by theDepository Institutions Deregulation and Monetary Control Act of 1980. Provisions

that prohibit a bank holding company from owning other financial companies were

repealed on November 12, 1999, by the Gramm-Leach-Bliley Act.


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Two separate United States laws are known as the Glass-Steagall Act.

Both bills were sponsored by Democratic Senator Carter Glass of Lynchburg, Virginia,

a former Secretary of the Treasury, and Democratic Congressman Henry B. Steagall of

Alabama, Chairman of the House Committee on Banking and Currency.

The first Glass-Steagall Act was passed in February, 1932 in an effort to stop deflation

and expanded the Federal Reserve's ability to offer rediscounts on more types of assetsand issue government bonds as well as commercial paper. The second Glass-Steagall

Act was passed in 1933 in reaction to the collapse of a large portion of the American

commercial banking system in early 1933.

The first Glass-Steagall Act was the first time that currency (non-specie, paper

currency etc.) was permitted to be allocated for the Federal Reserve System.

The second Glass-Steagall Act, passed on 16 June 1933, and officially named the

Banking Act of 1933, introduced the separation of bank types according to theirbusiness (commercial and investment banking), and it founded the Federal Deposit

Insurance Corporation for insuring bank deposits. Literature in economics usually

refers to this simply as the Glass-Steagall Act, since it had a stronger impact on U.S.

banking regulation.

The argument for preserving Glass-Steagall (as written in 1987):

1. Conflicts of interest characterize the granting of credit -- lending -- and the use of

credit -- investing -- by the same entity, which led to abuses that originally producedthe Act.

2. Depository institutions possess enormous financial power, by virtue of their control

of other peoples money; its extent must be limited to ensure soundness and

competition in the market for funds, whether loans or investments.

3. Securities activities can be risky, leading to enormous losses. Such losses could

threaten the integrity of deposits. In turn, the Government insures deposits and could

be required to pay large sums if depository institutions were to collapse as the result ofsecurities losses.

4. Depository institutions are supposed to be managed to limit risk. Their managers

thus may not be conditioned to operate prudently in more speculative securities

businesses. An example is the crash of real estate investment trusts sponsored by bank

holding companies (in the 1970s and 1980s).

Source: http://en.wikipedia.org/wiki/Glass-Steagall_Act

How to Fix ItThe largest financial institutions in the U.S. are referred to as Too Big to Fail. They

achieved this label as a direct result of their efforts to bribe Congress to repealing the


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Glass-Steagall Act.

The Too Big to Fail policy is the idea that in economic regulation the largest and most

interconnected businesses are "too big to [let] fail." This means that it might

encourage recklessness since the government would pick up the pieces in the event it

was about to go out of business. The phrase has also been more broadly applied to

refer to a government's policy to bail out any corporation. It raises the issue of moralhazard in business operations.

The term is back to central stage since the start of the financial meltdown. The most

important US company referred to as too big to fail is American International Group

(AIG).

Some critics see the policy as wrong and counterproductive. They think big banks

should be left to fail if their risk management was not effective.

Source: http://en.wikipedia.org/wiki/Too_Big_to_Fail_policy

Too Big to Fail

By PETER S. GOODMAN

Published: July 20, 2008

IN the narrative that has governed American commercial life for the last quarter-

century, saving companies from their own mistakes was not supposed to be part of the

governments job description. Economic policy makers in the United States tookswaggering pride in the cutthroat but lucrative form of capitalism that was supposedly

indigenous to their frontier nation.

RESCUE Christopher Cox, the S.E.C. chairman, left, and Ben Bernanke, the Fed

chairman, center, hear Treasury Secretary Henry Paulson tell senators he wants

authority to help save Fannie Mae and Freddie Mac.

Through this uniquely American lens, saving businesses from collapse was the sort of

thing that happened on other shores, where sentimental commitments to social welfaretrumped sharp-edged competition. Weak-kneed European and Asian leaders were too

frightened to endure the animal instincts of a real market, the story went. So they

intervened time and again, using government largess to lift inefficient firms to safety,

sparing jobs and limiting pain but keeping their economies from reaching full

potential.

Congress must reinstate the Glass-Steagall Act, and make it much more powerful. All

financial institutions must then be broken up into very carefully defined areas of

operation, and should never again be allowed to mix these activities, which are a directconflict of interest.


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Jobs

Almost everyone in elected office in Washington talks about creating jobs while they are

running for election, or re-election. However, once in office they open up their back

pockets to special interest groups, who are doing their best to eliminate all manufacturing

jobs in the U.S., most of which are exported to China and India. They do this by

ignoring the millions of undocumented workers within our borders; by allowing Eliteowned and controlled corporations to ship our manufacturing jobs to the lowest pay and

benefits nations around the world, and those with the least environmental controls over

the manufacturing processes; and by issuing Visas to foreigners who would work for

much lower pay and benefits than U.S. workers are receiving.

So, if there are more and more people searching for fewer and fewer jobs, then the law

of supply and demand takes over, resulting in lower wages and benefits for all.

As of March 2009, the U.S. unemployment total was 139,833,000, with a rate of 9.0%out of work. The Los Angeles Times, on April 3, 2009 reported:

The official U.S. unemployment rate is bad enough, but another government measure

of the ranks of jobless is far worse -- well into double digits.

The Labor Departments broadest measure of unemployment reached a stunning 15.6%

in March, seasonally adjusted. That was up from 14.8% in February and 9.1% in

March 2008.

The official rate rose to 8.5% last month from 8.1% in February.

The official rate includes people who have been actively looking for work.

The governments broadest measure of the jobless encompasses those who are trying to

find a work as well as two other groups:

--- Marginally attached workers, defined as people who currently "are neither working

nor looking for work but indicate that they want and are available for a job and have

looked for work sometime in the recent past." This group includes "discouraged

workers," people the government says "have given a job-market-related reason for not

looking currently for a job."

--- Persons employed part time for economic reasons, which include people who "want

and are available for full-time work but have had to settle for a part-time schedule."

So if the economy feels worse to you than an 8.5% jobless rate would suggest, it isnt

your imagination.

Source: http://latimesblogs.latimes.com/money_co/2009/04/unemployment-rate-.htmlThe U.S. State Department annually issues a large number of visas for a variety of

reasons. Several of these Visas involve temporary or permanent workers in the public


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sector of the U.S. economy. During the economic crisis of 2007, and continuing, theseVisas have continued to be issued, in spite of the devastating unemployment figures that

are reported. Its as if the State Department was completely unaware of reality, and their

lack of concern for the U.S. pu