IMF Marxists Tax and Seize Personal Funds in Cyprus – Crickets Ensue

By: Terresa Monroe-Hamilton – The NoisyRoom

Very few things give me nightmares… Yesterday’s event in Cyprus was one of them and the media is conspicuously silent. What do you get when you combine worldwide Marxist elitists, bankers and the media? A worldwide depression and a new dark age. The IMF is using Greece as a proving ground for the rest of us. It is a fascist Petri dish. They just implemented an across the board tax on all bank accounts over a holiday with no warning and no recourse. 9.9% if you have over 100,000 Euros in the bank, 6.75% is you have less than that. This is money being seized by the IMF, the European Union and the government of Greece to attempt to cover some of their debt. It is theft and it could have been a lot worse. The IMF had proposed a 40% haircut on all accounts. This is how it went down:

Banks first cooperated with the EU by sealing off the amount of the proposed levy—a 6.75 percent tax on deposits under €100,000 and 9.9 percent on those above —making it impossible for depositors to access their full amount. The only means bank customers have left is the ability to draw from the rest of their funds via ATM machines this weekend. Many depositors made their way to the machines on Saturday to drain their accounts. But the few banks that opened on Saturdays did so only briefly, and no international transfers will be able to go through until Tuesday, with Monday being the holiday. Cyprus’ Parliament is expected to meet Sunday to pass the required legislation., or after the deed was done. The deal also needs the approval of several Eurozone parliaments; at the time of writing it was unclear how fast they can act and what will happen to bank deposits in the meantime.

What’s happening in Cyprus should send a chill over the entire world.

Politicians working with complicit big banks need no rule of law; no parliament debates to close in on the bank accounts of average people.

The Daily Mail:

Cash machines EMPTIED across Cyprus and 60,000 British savers face losing MILLIONS after £8.7bn EU bailout imposes tax of up to 10% on all bank accounts

• Lines formed at ATMs as people scrambled to pull their money out
• Word spread that rescue package included a one-off levy on deposits
• Restrictions stopping people emptying accounts or moving money abroad
• Up to 3,000 British service personnel are based on the bankrupt island
• President Nicos Anastasiades agreed to raid with European finance chiefs
• Said country in ‘state of emergency’ and not acting would be ‘catastrophic’
• But expats accused the island of ‘plain theft’ as violent protests sparked
• Britons have about £1.7b of deposits on island and could lose up to £170m
• Parliamentary official: Vote scheduled for today pushed back to tomorrow
• G. Osborne: This is what happens if you don’t show you can pay your way

Never let an emergency go to waste, eh? Cyprus’ President claims he had no choice. I don’t believe him. He made a deal with the devil, saved himself and gave up his own people. Very reminiscent of Nazi Germany. It’s fascist deja vu all over again. By the way, they did this before it was approved of by the legislature. Think it can’t happen in America? One day you could wake up and be staring down the same seizures and soon. And Martial law and jackbooted thugs will not be far behind, trust me.

Over a number of years, the Marxist elitists in Europe and the United States (make no mistake, Obama and the head of the IMF are BFFs) have put in place draconian financial policies, regulations and bailouts that have cost Trillions – in fact, more money than actually exists on the planet by no small measure. This is not money out of thin air, these are taxes. Taxes taken while promising growth and recovery that has never materialized, never will materialize and was never meant to materialize. This is a step in a global reset of all markets and a planetary redistribution of wealth that would have made Marx blush and stammer. Remember, the US is a huge contributor to the IMF. You don’t actually think that Obama didn’t know about this and had input, right?

What happened yesterday in Cyprus was a test for the rest of us. What’s more, what was implemented will not solve the problem. What it will do is perhaps start worldwide bank runs and create chaos and riots, a la Cloward and Piven. The global Socialists are making their move and beginning to bring an iron fist down on individuals, their freedoms and their money. This has the potential to make the crash of 2008 look like Spring break. The Marxists are not limiting themselves to bank accounts; they are now going after retirement accounts, gold and whatever else they can grab as the whole scam starts to implode. The run on the Cypriotic banks and ATMs yesterday was just a taste of what is heading our way. The Deutsche Bank global head of FX strategy, Bilal Hafeez, was correct – only Jesus can save the EU now. However, I think He is more likely to speed their demise with all the money changing in His temple occurring and all.

From SHTFplan.com:

Restrictions have been imposed to stop people emptying their accounts or moving their money out the country after the Cypriot government announced that up to ten per cent of deposits will be seized and used to bailout the island’s crisis-hit banking system.

The deal with other Eurozone finance ministers is the first time that ordinary citizens’ deposits have been directly raided in this way.

…

One furious expat said: ‘This is plain theft. I’d love to hear someone explain to me why it isn’t.’

…

Under the deal, all bank deposits over €100,000 will be hit with a levy of 9.9 per cent. Those with smaller savings will pay 6.75 per cent.

…

The move sparked panic and violent protests yesterday as crowds desperately tried to withdraw their money at cash machines.

…

‘Why would you risk putting your money in Greek, Spanish or Portuguese banks after this?’

British expats were stunned by the news, with many left high and dry by the restrictions on accounts.

Cash machines had been working, but many ran out of notes because of the panic withdrawals.

…

But financial experts said the raid – designed to stop Cyprus crashing out of the euro, potentially destroying the currency – would send shock waves through the Eurozone.

If savers in other troubled nations fear their accounts might be next, they could withdraw their money and spark a catastrophic run on the banks.

Source: Daily Mail

In case you weren’t aware, Cyprus is hub of offshore accounts. One of the biggest hurt by this move were Russian mobsters. But before you justify that, remember, people all over the world had their funds there. It all depends on how you define taxation:

As Market Ticker’s Karl Denninger notes, “Like hell that’s a tax. That’s direct confiscation of the funds of people who did nothing wrong!”

People need to wake up and fast because this train is coming to each of us and soon. There is no safe haven on the planet for money or investments now. The New World Order has arrived and it is hungry. A planetary government of elites who have colluded to strip the wealth from nations has descended to rip the fabric of civility apart and we are all on the menu.

I can’t put it any better than Mac Salvo:

It should now be obvious. There is no recovery. There never was.

No matter where you live, your government is likely preparing measures to deal with the coming financial and economic collapse. This means they are going to be coming for anything of value that they can get their hands on.

If you have the majority of your net worth allocated in bank accounts, money market funds, retirement plans, stock markets or the host of other ‘safe’ assets recommended by your financial adviser, then you are playing Russian roulette.

And in this version there’s a bullet in every chamber.

When they come, they will take everything they can.

You didn’t think all that ammo, arms, food and medicine was for a rainy day, did you? Well, if so, it is pouring. Our Marxist leaders have made preps for themselves, the rest of us be damned and we have just let them do it. Shame on us.

I’ll close with the prescience of Nigel Farage. Pity no one listened to him on this:

Video: Nigel Farage - European Parliament - The Fight for Freedom and Democracy

Related:

In 1941, The Federal Reserve Wrote A Letter Explaining Why The Cyprus Bailout Was Such A Terrible Idea

UPDATED: Heed the warning of Cyprus: “Deepen your preparation and keep it to yourself”

(Bank) Holiday In Cyprus

Pimco’s El-Erian: Cyprus Bank Tax May Blow Up Europe

Fed’s Fisher: Too-Big-to-Fail Banks Should Be Broken Up

Judge Napolitano Discusses If Cyprus Bank Bailout With Seized Depositors Funds Could Happen in US

JP Morgan/Chase having a slight problem. All Accounts show Zero balance 3/19/13

Technorati Tags: IMF,Marxists,global elites,complient media,media corruption,MSM,Greece,banksters,collapse,dark ages,worldwide depression,economics,EU,European Parliament,Nigel Farage,smoke and mirrors,liars,eurozone,Sarkowzy,NWO,New Economic World Order,Cypress,Chase Bank,JP Morgan Chase

Former FDIC Chair Bair: Bank Bailout Was ‘Overkill’

Moneynews:

The billions of taxpayer dollars spent to bailout big banks was largely unnecessary, according to Sheila Bair, former Federal Deposit Insurance Corp. chairwoman.

In an excerpt from her new book “Bull by the Horns: Fighting to Save Main Street From Wall Street and Wall Street From Itself,” which was published by Fortune, Bair writes “with the exception of Citi, the commercial banks' capital levels seemed to be adequate.”

“Without government aid some of them might have had to forgo bonuses and take losses for several quarters, but still, it seemed to me that they were strong enough to bumble through,” she writes.

That the U.S. government showered Wall Street with cash during the financial crisis as people were losing their homes and jobs continues to be a hot button issue. Many Americans blame the banks for the crisis and argue that Washington could have and should have done more for the people and less for those who created the problem.

Bair seems to agree and this is not a new position for her.

Last October, the San Francisco Chronicle reported that Bair spoke at the National Asian American Coalition conference about her disappointment that so little appears to have been done for the millions of homeowners still in distress.

“I wish I could say things have gotten better, but I don't see that they have. The loan programs are not doing what they need to. Part of the problem is a not very well-functioning mortgage services industry. The resources are not there. The training is not there. The commitment is not there,” the Chronicle quoted her as saying.

Consistent with that sentiment, Bair writes in the book, “We used up resources and political capital that could have been spent on other programs to help more Main Street Americans.”

She admits that there was a lot less information available when the bailout decision was made and that that uncertainty played a factor in how the situation was handled.

Still, she writes, “In retrospect the mammoth assistance to those big institutions seemed like overkill. I never saw a good analysis to back it up.”

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Technorati Tags: FDIC,financial crisis,bank bailout,watch the other hand,finances,economics,Romney-Ryan,Mitt Romney in 2012. QE3,depression,student loans

Customer Deposits Are Property of the Bank: Close Your Account NOW

By Susanne Posel - heintelhub.com - August 24, 2012 – h/t to MJ

In June of 2012, Eric Bloom, former chief executive, and Charles Mosely, head trader of Sentinel Management Group (SMG) were indicted for stealing $500 million in customer secured funds.

Both Mosely and Bloom were accused of “exposing” customer segregated funds “to a portfolio of highly risky derivatives.”

These customer funds were used to “back up personal investments” which were part of “collateral for a loan from Bank of New York Mellon” (BNYM).

This loan derived from stolen customer monies was “used to purchase millions of dollars worth of high-risk, illiquid securities, including collateralized debt obligations, or CDOs, for a trading portfolio that benefited Sentinel’s officers, including Mosley, Bloom and certain Bloom family members.”

Fast forward to August 9th of 2012, and the 7th Circuit Court of Appeals (CCA) rules that BNYM can be moved to first in line of creditors over the customers that had their funds stolen by SMG.

When a banking customer deposits their money into their bank account, the Federal Deposit Insurance Corporation (FDIC) and Securities Investor Protection Corporation (SPIC) are in place to protect the customer from fraud or theft.

The ruling from the CCA means that these regulatory systems will not insure customer funds, investments, depositors and retirees who hold accounts in banks.

In fact, the banking institution is now legally allowed to use those customer funds deposited as collateral, payment on debts for loans made, or free use on the stock market to purchase investments as the bank sees fit.

Fred Grede, SMG trustee, explained that brokers are no longer required to keep customer money separate from their own. “It does not bode well for the protection of customer funds.”

Since the ruling gives banks the right to co-mingle customer funds with their own, no crime can be committed for the use of customer deposited monies.

According to Walker Todd , former lawyer for the Federal Reserve Bank of New York and Cleveland:

“Basically, there is a new 7th Circuit opinion saying that there is no reason to impose a constructive trust on a lender’s takings of customers’ funds from client commodity firms that were used (inappropriately) to secure the firms’ borrowings, as long as the lender can say that it did not know WITH CERTAINTY that customers’ funds were being repledged. Negligence and misappropriation (vs. knowing criminal intent) are now a sufficient excuse for letting the lender keep the money and go to the head of the line for distributions in bankruptcies of the client commodity firms.”

When a customer deposits money into a bank, the bank essentially issues a promise to have those funds available when the customer returns to withdraw the deposited amount.

When the same customer withdraws funds from their account (whether checking or savings) the customer assumes that the bank has enough funds to cover their withdrawal; including the presumption that their monies are separate from the bank’s assets.

Now, those funds are up for grabs by the bank at their discretion without explanation to the customer – nor is the bank obligated to recoup the customer should they “lose” those funds due to bad loans, bankruptcy or stock market loss.

In Texas, Pamela Cobb, manager of Bank of America (BoA), stole an estimated $2 million from customer funds for personal use. Cobb had been taking customer segregated funds since 2002.

Customers have complained of fraudulent charges placed on their accounts that BoA cannot explain. When the customer brings these charges to the in-house fraud department, they are given the run-around until they acquiesce.

Other customers have had their private possessions stolen right out of their safety deposit box held at BoA. The safety deposit box was drilled into and the contents shipped to the BoA corporate holding center in South Carolina.

In 1992 to 2003, Citibank called their theft of customer funds “account sweeping” wherein they stole more than $14 million from customers nationally.

Using computerized credit card processes to remove positive and negative balances from customers, the scheme included double payments or funds paid out on returned purchases that were then attributed back to the customer.

At Chase bank, an anonymous employee opened an account under a customer name (targeting an Alzheimer’s sufferer), complete with a personal debit card.

An estimated $300 per day was withdrawn on the fraudulent account. When family representing the victim alerted Chase, they brushed them off with an internal investigation claim – even as the family sought legal action.

Banking fraud against the elderly has risen of late, since banks realize they can steal massive amounts of cash from their aging customers with little to no repercussions.

The recent ruling on SMG has given the banking industry the legal backing they have been lacking when stealing from their customers.

Our financial institutions have been planning for a financial collapse wherein the US government will not offer assistance.

The resolution plans required by the Federal Reserve Bank, described schemes to have the major domestic banks remain afloat by selling off assets, finding alternative sources of funding, reducing risky measures that make a quick buck. These strategies were to be perfected with “no assumption of extraordinary support from the public sector.”

The mega-banks, through Wall Street, are also acquiring firearms, ammunition and control over private mercenary corporations like DynCorp and ‘Blackwater” as authorized by the Department of Defense (DoD) directive 3025.18 .

DynCorp is a military-based private mercenary contractor that provides (among other services) intelligence training and support, international security, contingency plans and operations. Ninety-six percent of their funding is based on annual revenues from the US federal government.

The international branch of DynCorp has operated as a “police force” even assisting local law enforcement during Hurricane Katrina.

Named as investors for the amassing of gun and ammunition manufacturers are Citibank, BoA, Barclays and Deutsche Bank who are pouring money into Cerebus and Veritas Equity who have taken over private corporations involved in the controlling riot situations.

The Federal Reserve Bank, one of the heads of banking cartels, has their own police force which operates as a protective security for the Fed against the American public.

As part of the Federal Reserve Act signed in 1913, the designation of a Federal Law Enforcement – special police officers that are exclusively regulated by authority of the Fed (whether in uniform or plain clothes.

These specialized police officers (who train with Special Response Teams) can work in tandem with local law enforcement or US federal agencies. These officers are heavily armed with semi-automatic pistols, sub machine guns and assault rifles as well as body armor.

Of recent, when withdrawing cash from an ATM, the daily allotted amount has decreased with some banks, thereby forcing the customer to go into the branch and extract the difference with a teller.

At this point, according to anonymous informants, the customer is taken into a backroom to be questioned as to why they want the cash, what they are purchasing with the cash, why they are not choosing to use a debit card or another form of digital trade to make the purchase. These questions are not only intrusive, they are illegal.

Some anonymous sources have said that banking representatives who conduct the integrations are directed to keep a record of customer responses on an online application that will be sent to the FBI in conjunction with Patriot Act mandates on tracking banking activity.

Customer funds are no longer secure, no longer backed by the FDIC or other insurance corporations, and banks are legally allowed to co-mingled customer money with other funds of the bank. The only safe place for your money is with you.

Now is the time to close your bank account.

Susanne Posel is the Chief Editor of Occupy Corporatism Our alternative news site is dedicated to reporting the news as it actually happens; not as it is spun by the corporate-funded mainstream media. You can find us on our Facebook page.

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Technorati Tags: DOD,Banks,Big Brother,banksters,money,BoA,New Economic World Order,global elites,NWO,Blackwater,DynCorp,FDIC,Deutsche Bank,Barclays,Cerebus,Veritas Equity,savings,your savings,Citibank,Federal Reserve,private army,SMG,preparedness,BNYM,the FED,banking cartels,International bankers,investors money,survival

GLOBAL ELITES THROWN OUT OF ICELAND: Iceland Dismantles Corrupt Gov’t Then Arrests All Rothschild Bankers

Freedumbnation:

Since the 1900′s the vast majority of the American population has dreamed about saying “NO” to the Unconstitutional, corrupt, Rothschild/Rockefeller banking criminals, but no one has dared to do so. Why? If just half of our Nation, and the “1%”, who pay the majority of the taxes, just said NO MORE! Our Gov’t would literally change over night. Why is it so hard, for some people to understand, that by simply NOT giving your money, to large Corporations, who then send jobs, Intellectual Property, etc. offshore and promote anti-Constitutional rights… You will accomplish more, than if you used violence. In other words… RESEARCH WHERE YOU ARE SENDING EVERY SINGLE PENNY!!! Is that so hard? The truth of the matter is… No one, except the Icelanders, have to been the only culture on the planet to carry out this successfully. Not only have they been successful, at overthrowing the corrupt Gov’t, they’ve drafted a Constitution, that will stop this from happening ever again. That’s not the best part… The best part, is that they have arrested ALL Rothschild/Rockefeller banking puppets, responsible for the Country’s economic Chaos and meltdown.

Last week 9 people were arrested in London and Reykjavik for their possible responsibility for Iceland’s financial collapse in 2008, a deep crisis which developed into an unprecedented public reaction that is changing the country’s direction.

It has been a revolution without weapons in Iceland, the country that hosts the world’s oldest democracy (since 930), and whose citizens have managed to effect change by going on demonstrations and banging pots and pans. Why have the rest of the Western countries not even heard about it?

Pressure from Icelandic citizens’ has managed not only to bring down a government, but also begin the drafting of a new constitution (in process) and is seeking to put in jail those bankers responsible for the financial crisis in the country. As the saying goes, if you ask for things politely it is much easier to get them.

This quiet revolutionary process has its origins in 2008 when the Icelandic government decided to nationalize the three largest banks, Landsbanki, Kaupthing and Glitnir, whose clients were mainly British, and North and South American.

After the State took over, the official currency (krona) plummeted and the stock market suspended its activity after a 76% collapse. Iceland was becoming bankrupt and to save the situation, the International Monetary Fund (IMF) injected U.S. $ 2,100 million and the Nordic countries helped with another 2,500 million.

Great little victories of ordinary people While banks and local and foreign authorities were desperately seeking economic solutions, the Icelandic people took to the streets and their persistent daily demonstrations outside parliament in Reykjavik prompted the resignation of the conservative Prime Minister Geir H. Haarde and his entire government. Citizens demanded, in addition, to convene early elections, and they succeeded. In April a coalition government was elected, formed by the Social Democratic Alliance and the Left Green Movement, headed by a new Prime Minister, Jóhanna Sigurðardóttir.

Throughout 2009 the Icelandic economy continued to be in a precarious situation (at the end of the year the GDP had dropped by 7%) but, despite this, the Parliament proposed to repay the debt to Britain and the Netherlands with a payment of 3,500 million Euros, a sum to be paid every month by Icelandic families for 15 years at 5.5% interest.

The move sparked anger again in the Icelanders, who returned to the streets demanding that, at least, that decision was put to a referendum. Another big small victory for the street protests: in March 2010 that vote was held and an overwhelming 93% of the population refused to repay the debt, at least with those conditions.

This forced the creditors to rethink the deal and improve it, offering 3% interest and payment over 37 years. Not even that was enough. The current president, on seeing that Parliament approved the agreement by a narrow margin, decided last month not to approve it and to call on the Icelandic people to vote in a referendum so that they would have the last word.

The bankers are fleeing in fear returning to the tense situation in 2010, while the Icelanders were refusing to pay a debt incurred by financial sharks without consultation, the coalition government had launched an investigation to determine legal responsibilities for the fatal economic crisis and had already arrested several bankers and top executives closely linked to high risk operations.

Interpol, meanwhile, had issued an international arrest warrant against Sigurdur Einarsson, former president of one of the banks. This situation led scared bankers and executives to leave the country en masse.

In this context of crisis, an assembly was elected to draft a new constitution that would reflect the lessons learned and replace the current one, inspired by the Danish constitution.

To do this, instead of calling experts and politicians, Iceland decided to appeal directly to the people, after all they have sovereign power over the law. More than 500 Icelanders presented themselves as candidates to participate in this exercise in direct democracy and write a new constitution. 25 of them, without party affiliations, including lawyers, students, journalists, farmers and trade union representatives were elected.

Among other developments, this constitution will call for the protection, like no other, of freedom of information and expression in the so-called Icelandic Modern Media Initiative, in a bill that aims to make the country a safe haven for investigative journalism and freedom of information, where sources, journalists and Internet providers that host news reporting are protected.

The people, for once, will decide the future of the country while bankers and politicians witness the transformation of a nation from the sidelines.

The Bilderberg Group’s Connection To Everything In The World – Updated

Technorati Tags: Rothchilds,Rockefeller,Bilderbergers,Bilderberger Group,gloabal elites,stand together,stand-up America,wake-up America,Iceland,ruling elites,banksters,International Bankers,Interpol

Exclusive: U.S. lets China bypass Wall Street for Treasury orders

(Reuters) - China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters.

The relationship means the People's Bank of China buys U.S. debt using a different method than any other central bank in the world.

The other central banks, including the Bank of Japan, which has a large appetite for Treasuries, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. Those dealers then bid on their behalf at Treasury auctions.

China, which holds $1.17 trillion in U.S. Treasuries, still buys some Treasuries through primary dealers, but since June 2011, that route hasn't been necessary.

The documents viewed by Reuters show the U.S. Treasury Department has given the People's Bank of China a direct computer link to its auction system, which the Chinese first used to buy two-year notes in late June 2011.

China can now participate in auctions without placing bids through primary dealers. If it wants to sell, however, it still has to go through the market.

The change was not announced publicly or in any message to primary dealers.

"Direct bidding is open to a wide range of investors, but as a matter of general policy we do not comment on individual bidders," said Matt Anderson, a Treasury Department spokesman.

While there is been no prohibition on foreign government entities bidding directly, the Treasury's accommodation of China is unique.

The Treasury's sales of U.S. debt to China have become part of a politically charged public debate about China's role as the largest exporter to the United States and also the country's largest creditor.

The privilege may help China obtain U.S. debt for a better price by keeping Wall Street's knowledge of its orders to a minimum.

Primary dealers are not allowed to charge customers money to bid on their behalf at Treasury auctions, so China isn't saving money by cutting out commission fees.

Instead, China is preserving the value of specific information about its bidding habits. By bidding directly, China prevents Wall Street banks from trying to exploit its huge presence in a given auction by driving up the price.

It is one of several courtesies provided to a buyer in a class by itself in terms of purchasing power. Although the Japanese, for example, own about $1.1 trillion of Treasuries, their purchasing has been less centralized. Buying by Japan is scattered among institutions, including pension funds, large Japanese banks and the Bank of Japan, without a single entity dominating.

Granting China a direct bidding link is not the first time Treasury has gone to great lengths to keep its largest client happy.

In 2009, when Treasury officials found China was using special deals with primary dealers to conceal its U.S. debt purchases, the Treasury changed a rule to outlaw those deals, Reuters reported last June. But at the same time it relaxed a reporting requirement to make the Chinese more comfortable with the amended rule.

Another feature of the U.S.-China business relationship is discretion: The Treasury tried to keep its motivation for the 2009 rule change under wraps, Reuters reported.

Documents dealing with China's new status as a direct bidder again demonstrate the Treasury's desire for secrecy -- in terms of Wall Street and its new direct bidding customer.

To safeguard against hackers, Treasury officials upgraded the system that allows China to access the bidding process.

Then they discussed ways to deflect questions from Wall Street traders that would arise once the auction results began revealing the undeniable presence of a foreign direct bidder.

"Most hold the view that foreign accounts only submit 'indirect bids' through primary dealers. This will likely cause significant chatter on the street and many questions will likely come our way," wrote one government official in an email viewed by Reuters.

In the email, the official suggested providing basic, general answers to questions about who can bid in Treasury actions.

"For questions more extensive or probing in nature, I think it prudent to direct them to the or Treasury public relations area," the official wrote.

The granting to China of direct bidder status may be controversial because some government officials are concerned that China has gained too much leverage over the United States through its large Treasury holdings.

For example, economist Brad Setser, who is a member of the National Economic Council and has also served on the National Security Council, has argued China's large Treasury holdings pose a national security threat.

Writing for the Council on Foreign Relations in 2009, Setser posited that China's massive U.S. debt holdings gave it power over U.S. policy via the threat of a swift, large sale of U.S. debt that could send the market into turmoil and drive up interest rates.

But Treasury officials have long maintained that U.S. debt sales to China are kept separate from politics in a business relationship that benefits both countries. The Chinese use Treasuries to house the dollars they receive from selling goods to the United States, while the U.S. government is happy to see such strong demand for its debt because it keeps interest rates low.

A spokesman for the Chinese embassy in Washington did not respond to calls and emails seeking comment.

The United States has, however, displayed increasing anxiety about China as a cybersecurity threat. The change Treasury officials made to their direct bidding system before allowing access to China was to limit access to the system to a specially designed private network connection controlled by the Treasury.

China is among the most sensitive topics for bankers and government officials who court the country as a financial client because of its size and importance, and none would agree to comment on the record for this story.

A former debt management official at the Treasury who did not want to be identified said that as China's experience in the U.S. Treasury market has deepened over time, Chinese officials may have felt more comfortable taking the reins in the management of their holdings.

Their request to bid directly, in his view, came from a confidence that their money managers could buy U.S. debt more efficiently on their own than through Wall Street banks, which can often drive up the price of Treasuries at an auction if they know how much large clients are willing to pay. Such a practice that is not specifically illegal, though most traders would deem it unethical.

Evidence of China's growing sophistication as a money manager in the U.S. markets is clear in its expansion of operations in New York. Its money management arm, the State Administration for Foreign Exchange (commonly called SAFE), has an office in Midtown Manhattan and a seasoned chief investment officer -- former Pacific Investment Management Co derivatives head Changhong Zhu -- in Beijing.

A woman who answered the phone at SAFE's New York office said no one in the office was authorized to talk to the media.

(Editing by Martin Howell and Steve Orlofsky)

Related:

WHY IS CHINA OUR NATION’S NATIONAL BANK

Technorati Tags: banking,CFR,CHINA,globalists,national debt,New Economic World Order,Obamaland,radicals in the White House,Timothy Geithner,Treasuries,Treasury Department,U.S. economy,U.S. policy,U.S. Treasury Bonds,Wall Street,watch the other hand

American Freedom – Chinese Style?

A Chinese Group Plans To Construct A 200 Acre 

A Chinese group known as "Sino-Michigan Properties LLC" has bought up 200 acres of land near the town of Milan, Michigan.  Their plan is to construct a "China City" with artificial lakes, a Chinese cultural center and hundreds of housing units for Chinese citizens.  Essentially, it would be a little slice of communist China dropped right into the heartland of America.  This "China City" would be located about 40 minutes from both Detroit and Toledo, and it would be marketed to Chinese business people that want to start businesses in the United States.  Unfortunately, this is not just an isolated incident.  In fact, Chinese companies have been buying up land and businesses all over the country in recent years.  There has even been talk of establishing "special economic zones" inside the United States modeled after the Chinese city of Shenzhen.  It was inevitable that the Chinese were going to do something with the trillions of dollars that they have made flooding our shores with cheap products.  Now they are rapidly buying up pieces of America, and many of our politicians are welcoming them with open arms.

The town of Milan, Michigan is a small farming community of only about 6,000 people, but big changes are coming their way.  The following is from a recent Dayton Daily News article about this new project....

A group of mainland Chinese known as Sino-Michigan Properties LLC paid $1.9 million for 200 acres of farmland on Milan city limits in purchases this year and in 2011, according to local officials and property records.

Unfortunately, the goal does not appear to be to integrate this new "city" into the existing community in and around Milan.

Rather, it appears that all of the new housing will be sold to people coming over from China.  According to the Milan News Leader newspaper, the new housing units "would be marketed to Chinese business people who want to start companies in the United States".

In essence, we would be looking at a new Chinese city right in the middle of Michigan.

Doug Smith, senior vice president for business and community development for the Michigan Economic Development Corp., recently said the following about what the Chinese group plans to do....

"It’s a group that wants to build a China city, starting with housing over there in Milan"

Milan is not far from the University of Michigan in Ann Arbor, which is a very popular destination for Chinese students.  Apparently that is one reason why Milan was chosen.

This new project would be a Chinese community built by Chinese and specifically designed for Chinese.

But isn't this supposed to be America?

Fortunately, the project does not have final approval yet.  It still must be approved by the two townships outside of Milan where the land is located.

For some reason, the Chinese seem to be particularly interested in this area of the country.

For example, a different Chinese investment group has been busy buying up chunks of real estate over in nearby Toledo, Ohio.  The following is from an article in the Toledo Blade on May 26th, 2011....

Dashing Pacific Group Ltd., which has already purchased the nearby Docks restaurant complex for $2.15 million, put its $3.8 million offer to buy the southern 69 acres at the Marina District in East Toledo back on the table for approval by Toledo City Council. Additionally, Dashing Pacific Chairman Yuan Xiaohong, in a letter signed in Hangzhou, said the firm wants a two-year option to buy the decommissioned Toledo Edison power plant property on the site.

So should we be alarmed that the Chinese are buying up pieces of America?

Well, if they simply wanted to enjoy living in America and wanted to integrate into the wider community that would be one thing.

But it is another thing altogether to start dropping slices of communist China inside of U.S. territory.

In a previous article entitled "China Wants To Construct A 50 Square Mile Self-Sustaining City South Of Boise, Idaho", I discussed a potential deal that Sinomach (a company controlled by the Chinese government) was exploring with the government of Idaho.  The following is a description of that potential project from an article in the Idaho Statesman....

A Chinese national company is interested in developing a 10,000- to 30,000-acre technology zone for industry, retail centers and homes south of the Boise Airport.

There was talk that this "technology zone" would be modeled after the "special economic zones" that have been developed in China.  The city of Shenzhen is perhaps the most famous example of this.

Fortunately that deal appears to have stalled, but other mammoth deals have been moving forward in other parts of the country.

For example, the Chinese have been very busy gobbling up oil and gas fields.  The following is a quote from a local Texas news source about a deal that a company owned by the Chinese government did with Chesapeake Energy down in Texas....

State-owned Chinese energy giant CNOOC is buying a multibillion-dollar stake in 600,000 acres of South Texas oil and gas fields, potentially testing the political waters for further expansion into U.S. energy reserves.

With the announcement Monday that it would pay up to $2.2 billion for a one-third stake in Chesapeake Energy assets, CNOOC lays claim to a share of properties that eventually could produce up to half a million barrels a day of oil equivalent.

You can read more about that particular deal right here.

So is it really a good idea to be allowing the Chinese to buy up our precious energy resources?

The answer to that question is obvious.

Sadly, the examples noted above are not isolated incidents.  The truth is that the Chinese have been snapping up real estate and business assets all over America as a recent Forbes article explained....

According to a recent report in the New York Times, investors from China are “snapping up luxury apartments” and are planning to spend hundreds of millions of dollars on commercial and residential projects like Atlantic Yards in Brooklyn. Chinese companies also have signed major leases at the Empire State Building and at 1 World Trade Center, the report said.

So get ready - the Chinese are buying up U.S. land and they are moving in whether you like it or not.

So what will the long-term consequences be of allowing a communist superpower to buy up large sections of America?

That is a very good question.

Fed clears China's first US bank takeover

Yahoo ^ |Wednesday, May 09, 2012 6:33:39 PM · by GeorgeWashingtonsGhost · 18 replies

The United States on Wednesday opened its banking market to ICBC, China's biggest bank, for the first time clearing a takeover of a US bank by a Chinese state-controlled company. Just days after high-level US-China economic talks in Beijing, the Federal Reserve approved an application from Industrial and Commercial Bank of China to buy a majority stake in the US subsidiary of Bank of East Asia. The transaction will make ICBC the first Chinese state-controlled bank to acquire retail bank branches in the United States. ICBC has been the most aggressive of China's "big four" banks in expanding overseas. According...

 China & the Other Central Banks Are Buying Gold-Ranting Andy Hoffman--09.May.2012

The Financial Survival Network ^ | 05/09/2012 | Kerry Lutz  -  Listen to the Interview Here - http://financialsurvivalnetwork.com/2012/05/the-people-have-spoken/

www.FinancialSurvivalNetwork.com presents: "Ranting" Andy Hoffman gives us the update on the latest precious metals slam down; the reasons to own gold and silver couldn't be stronger. If the prices stay down this low, don't be surprised to witness a major flood of buying. We're also getting into the Indian Wedding Season, which will result in increased demand along with massive sovereign central bank purchases. This is worse than 2008, and banks are blowing up all over Europe. Spain has just bailed out its third largest bank. Who's going to bail out Spain? Greece is planning to reneg on its debt....

World Affairs Brief

Both Republican and Democratic administrations have been supplying the Chinese with high technology weapons systems for years, knowing that they, in turn, are supplying other enemies (Iran, Iraq, Pakistan, North Korea) as well. Both Russia and China continue to protest against any US anti-ballistic missile system, even though such systems are purely defensive. It doesn't take a genius to understand that ABM systems only threaten someone who intends to launch ballistic missiles someday.

"The US supplying Chinese with US high tech weapons systems?”

Note: He went into personal details not shown here, of experiences when as a person holding security classification, in U.S. weapons development, how they were ordered to allow Chinese military officers go over the details of secret projects they were working on !!

 Shocking News: China Sells Energy Pills Made From Baby Flesh

Customs officials in South Korea have uncovered a horrifying reality coming from China. Since last August, the Koreans have confiscated over 17,000 "energy pills" that were made from the dried flesh of babies. The rest of the nauseating details can be found HERE.

China is exporting pills made from dried and pulverized human baby flesh. [They are hyped as a medicinal cure-all.] DailyMail 2012 May 7 (Cached)
http://www.dailymail.co.uk/news/article-2140702/South-Korea-customs-officials-thousands-pills-filled-powdered-human-baby-flesh.html#ixzz1uDZvdZaW

 Soy-Crop Bust Spurs China to Drain U.S. Bins: Commodities

 China Has Hacked Our Electric Power Grid: Read About It In Screwed!
By DICK MORRIS  -  Published on DickMorris.com on May 10, 2012

In our new book Screwed!, we report that almost unnoticed and with no threat of retaliation, China has likely hacked into the United States electric grid, potentially giving it the ability to paralyze our economy and our nation by tapping a few keys on a computer. (This is an ad by Dick Morris for his book… but the book is well worth reading.  He covers a lot of important topics in great detail that others are ignoring!)

Writing in the Wall Street Journal, Bush's anti-terrorism coordinator Richard Clarke reports that "in 2009, the control systems for the U.S. electric power grid [were] hacked and secret openings created so that the attacker could get back in with ease.  One expert noted that the hackers "left behind software that could be used to cause disruptions or even shut down the system."

While we cannot confirm that it was China that did the hacking, it is the only country with the technical expertise in hacking to have accomplished it.

What were the hackers after?  Clarke notes that "there is no money to steal on the electrical grid, nor is there any intelligence value that would justify cyber espionage.  The only point to penetrating the grid's controls is to counter American military superiority by threatening to damage the underpinning of the U.S. economy.  Chinese military strategists have written about how in this way a nation like China could gain an equal footing with the militarily superior United States."

Anti-terror watchdogs have long been aware of the danger of an electromagnetic pulse triggered by the explosion of a nuclear device in the atmosphere over the United States.  But by acquiring the ability to enter our grid anytime it wishes and disable it, China has likely acquired the ability to accomplish the same result without exploding a bomb.

Not only has Beijing likely hacked into our grid but, according to authors Brett M. Decker and William C. Triplett II in their excellent book Bowing to Beijing, China has even hacked into the Pentagon computer network "including the one serving [then] Defense Secretary Robert Gates." 

James Lewis, director of the technology and policy program at the Washington think tank Center for Strategic and International Studies called the Chinese hacking "an espionage Pearl Harbor."  Lewis told 60 minutes that China had downloaded vast amounts of information from every major U.S. agency saying that we have lost more information than is stored in the entire Library of Congress through Chinese hacking.

What is the U.S. doing about it? Nothing.  The modern day story of appeasement is not Obama's kowtowing to Muslim extremists as much as his total failure to confront China.

The president and Secretary of State Clinton fret over alienating China for fear that they will stop lending us money.  Romney, who understands these things better than either Obama or Clinton, emphasizes China's vulnerability. "We sell then $50 billion.  They sell us $400 billion.  They want a trade war?  Bring it on!"

The Chinese lend us money because they have to.  They buy dollars to make our currency artificially expensive and theirs' commensurately cheap.  With their currency manipulation, our products are 40% more costly in their markets and theirs' are 40% cheaper in our stores, fueling the imbalance of trade.  Once they own the dollars, what are they going to do with them?  The only safe thing is to buy U.S. Treasury notes, hence they "lend" us money.  If they stopped buying dollars and acquiring an unfair trade advantage over us, we wouldn't need them to keep lending us money, our economy would be thriving.

We cannot sit by complacently and let China rob us blind, hacking our technology, our military secrets, and our power grid.  We need a president who will stand up for America.

To grasp the appalling extent of Chinese hacking and espionage against the U.S. commercial and military sectors, read about it in Screwed!, on sale now!

Technorati Tags: China,Chinese,US bank takeover,watch the other hand,electric power grid,Screwed,i nvasion,Michigan,the Fed,banking

Pathological Politics – Predatory Partners and Persecuting Patriots

By: Terresa Monroe-Hamilton - the NoisyRoom

In the notorious tradition of Nixon’s Enemies List, Obama is now openly persecuting patriots at every opportunity. He tries to shame them, taint them, marginalize them and if all that doesn’t work, he sends goons after them and either imprisons them or threatens them with imprisonment. He’s using every agency at his disposal, with a special emphasis on the EPA, FDA, IRS, SEC, ATF and Fish and Wildlife authorities. And he has hired a whole governmental ‘army’ to enforce his dictates and go after his enemies. Welcome to the American Stasi.

We have watched how Obama smears those who would dare to donate to Mitt Romney’s campaign. That should make us want to donate even more, not back down and cower in fear. We all know that Obama is determined to be reelected legally or illegally – he doesn’t care. He just wants to hold on to his power, so he can finish what he started – destroying America with his pathological politics of corruption, greed and evil. If the elections don’t suffice, he’ll invent an emergency to ensure his death grip on the throat of America.

Look at how Gibson Guitars has been treated. They have been raided multiple times, but they can’t defend themselves because in the last three years, this administration won’t say what crime they are charging them with. They are destroying a good and honest company that creates jobs and does business production here in America. Their crime – successful capitalism. Something Obama will not tolerate.

Then there are farmers. The EPA is clamping down on the Amish and others who don’t follow every regulation in an effort to put them out of business and it is working. I hear the stealthy, sly footsteps of Cass Sunstein. Soon, very soon, the government will control all our farmland and food. Then if you step out of line, they’ll just starve you to death. Farming on your own property will be illegal. It’s coming – bet on it. Right now they are seizing farmer’s bank accounts. The FDA is now using the terrorist based “Bank Secrecy Act” as justification to invade, investigate and even confiscate the bank accounts of Americans in the agricultural business.

From The Examiner:

The Bank Secrecy Act that came out of the events of 9/11, which has been expanded during the decade long war on terror, is now being used to criminally attack farmers who choose not to use banks as their sole or primary source for monetary transactions. This is especially relevant after the credit crisis of 2008, where many American[s] began withdrawing money from banks after bank solvency came into question.

This banking law, which allows for the unwarranted confiscation and seizure of funds based solely on perceived impropriety, is one of many new policies created under the Bush and Obama administrations to control the public, and the flow of money in the United States. Beginning in 2013, new capital controls are set to be implemented which will make it extremely difficult to move dollars in and out of the country, and more recently, the Obama administration diverted funds from other departments to hire thousands of IRS agents for the new healthcare system that will also commence in 2013.

Ted Nugent on Regulations

Glenn Beck – We Are All Criminals Now

Now, we turn to Ted Nugent, who has been all over the news as of late. Evidently Obama has had Ted Nugent in his sights for at least two years and probably much longer. Nugent was charged with breaking a law – of which the judge hadn’t even heard – while hunting black bear in Alaska. But you can bet the Feds did and they brought charges hoping to snare Nugent. But that didn’t work out as they intended – Nugent accepted that he ‘unknowingly’ broke the law and the sentence carried the same weight as jaywalking, a misdemeanor offense. They tried to snag him in California and accused him of baiting a deer. A total falsehood and you’d have to be a moron to do it since he was airing the episode on TV. They stormed three of his friends’ homes and then searched a room not covered by the search warrant. They found a set of brass knuckles and told Nugent’s friend they would drop the felony charge if he would help them ‘get’ Nugent. Fortunately Ted has very good friends. But they took all kinds of stuff from their homes.

Now, they have made Nugent slaughter his pigs in Michigan – labeling them as feral. Since when is livestock you keep in a pen ‘feral?’ Obviously they either don’t know or more likely, don’t care what the definition is. They were the wrong color and thus deemed ‘feral’ and Nugent was forced to slaughter them. It’s tempting to draw conclusions about motives related to winning points with the Dearbornistan locals, given that the “reason” for slaughtering the pigs is clearly a pretext; one wonders to oneself, could squeezing pig farmers be calibrated to curry favor with a Muslim community?

He’s also been persecuted for his Oryx in Texas as well. They are harassing him about raising these animals when he brought them back from the brink of extinction. A three legged little one was born and he is not being allowed to put it out of its misery. It will die a slow and painful death. How is that compassion? If he puts it down, it’s a felony.

Someone high up would not allow Nugent to attend a SEAL’s funeral when it was the hero’s final wish. His concerts have been cancelled in several cases as well. The Feds interviewed him over comments he made at an NRA conference recently. He was cleared, but I guess free speech is no longer very ‘free’ in this country. Nugent is a good man – a patriotic man. That’s a lot more than you can say about Obama and his thugs.

This isn’t just about Ted Nugent folks – it’s about each and every one of us. They are coming after the bloggers, the patriots, small businesses, you name it. There is no way we can avoid violating one of these bogus laws. It’s only a matter of time. Obama doesn’t care about the Constitution – it means nothing to him. They are coming and we had better stand together, or we will all hang separately as patriots. The way Nugent is being treated is absolutely disgraceful.

From Kim Strassel at the Wall Street Journal:

He’s targeted insurers, oil firms and Wall Street—letting it be known that those who oppose his policies might face political or legislative retribution. He lectured the Supreme Court for giving companies more free speech and (falsely) accused the Chamber of Commerce of using foreign money to bankroll U.S. elections. The White House even ginned up an executive order (yet to be released) to require companies to list political donations as a condition of bidding for government contracts. Companies could bid but lose out for donating to Republicans. Or they could quit donating to the GOP—Mr. Obama’s real aim.

We all know of Obama’s Enemies List, but do you know who his predatory partners are? Along with Communists and radicals, he has a special fondness for the Muslim Brotherhood. In fact, he has opened the front door of the White House and has told them to make themselves at home. These are the evil asshats who support and fund Hamas. These are Islamic terrorists of the ilk that carried out 9-11 and Obama embraces them while persecuting American patriots.

Rumors of War III

Obama is not even subtle about it. They have removed all references to radical Islam in federal publications. They allow Shariah Law to be carried out on American soil. Obama’s best friend is the Prime Minister of Turkey who gives him advice on his daughters. You see, it doesn’t matter whether Obama is a Muslim or not, his father was. Obama has Islamic street cred. It even gives him a basis for using Taqiyya against Americans. Obama is actively and aggressively promoting Islam around the planet and especially here at home. The only thing that matches his love of Islam, is his hatred of Israel.

If one is known by who his friends and enemies are, then Obama’s predatory partners and the patriots he persecutes are screaming volumes at us. It’s clear that his campaign of pathological politics and communism is on a set of tracks that leads somewhere we dare not go.

Unreported! Wachovia Wells Fargo Launders Venezuelan, Mexican Drug Money

Gulag Bound  - Cross-Posted at the NoisyRoom

David Janda reports and relates from DaveJanda.com and Operation Freedom.

Janda also presents critically important information from American sovereignty patriot, Michael Shaw of Freedom Advocates, on the war on America in your neighborhood, Agenda 21.

Operation Freedom

Every Sunday from 3-5 P.M., WAAM Talk 1600 turns on the bright lights and fires up its own Operating Room. Dr. Dave Janda, an orthopedic surgeon and health care policy analyst, hosts a two hour interactive “dissection” of current events that are impacting every person, family and business in our community and country. Dave brings to the operating table information the main stream media either ignores or is afraid to bring to light.

Every week Dave will bring featured guests to WAAM’s Operating Room that have a background in health care, economics, finance, and geo-politics discussing current events. The goal of every show… when the listener “leaves the operating room” they are better off and on the road to a better life.

February 19, 2012

Topics discussed: Agenda 21, sustainable development, smart growth, ICLEI, the erosion of unalienable rights including property, Wildlands Network, Rural Council, the global elite, debt enslavement,fear, default,market crash, destruction of the dollar, hyperinflation, Wachovia Bank, Wells Fargo Bank, Money laundering for the drug trade, Winston Churchill First Hour Guest: Michael Shaw – President, Freedom Advocates (www.freedomadvocates.org) Second Hour Guest: Robert Davi – famed actor, director,singer and political activist (www.davisingssinatra.com)

Download:

• FULL SHOW
• Michael Shaw
• Robert Davi
• Janda on The Drug Smuggling Banks

The Bank of (Democratic Party) America

Well, isn't this rich? And I do mean rich. President Obama, man of the people, will deliver his presidential nomination acceptance speech at the Bank of America Stadium in Charlotte, N.C. -- so that Democratic Party fundraisers can reward big donors with skyboxes and other lavish perks.

As usual, the White House and its allies are trying to camouflage naked partisan money-grubbing in populist garb.

"I think this would be a great opportunity to have tens of thousands of North Carolinians and others outside of the state to see and participate in the convention process," one North Carolina Democratic Party flack told the Charlotte Observer.

But it's the heavyweight contributors, not the hoi polloi, to whom convention organizers are catering as they struggle to raise some $37 million to cover the coronation celebration's costs. The self-proclaimed Party of the 99 Percent is reportedly busy creating special-access VIP packages for the 1 percent -- under the illusion of throwing open its doors to the masses. DNC officials refuse to disclose fundraising updates until after the convention, even as they champion their own "openness and accessibility."

And no doubt, Obama will use his stadium-size pulpit to "stand up" to the very same "fat cats" who'll be watching him while sipping Courvoisier in their DNC-appointed luxury seats.

Such is the audacity of progressive cognitive dissonance.

Despite the DNC's vaunted promise to ban business donations and first lady Michelle Obama's faux-folksy public relations campaign for a "people's convention," Bank of America (headquartered in North Carolina and Charlotte's largest corporate presence) will be front and center at the festivities. No surprise. The Democrats and Bank of America have maintained a long, lucrative relationship as reciprocal bailout buddies.

During the 2010 midterm elections, former DNC chairman and ex-Virginia Gov. Tim Kaine secured a $15 million revolving line of credit at B of A and then finagled another $17 million loan from the taxpayer-bailed-out bank. According to Federal Election Commission records, B of A accepted as collateral the DNC's donor mailing list. Yep, its donor mailing list for $32 million in loans. As investigative reporter Richard Pollock asked at the time: "What message does a largely unsecured $32 million credit line for the Democratic Party send to thousands of cash-starved small businesses across the nation who can't secure any credit even with tangible assets?"

Message: crony business as usual.

Bank of America is to sweetheart loans and Democratic Party payoffs as Paula Deen is to sugar and bacon grease:

-- The massively troubled bank raked in a middle-of-the-night, taxpayer-funded $45 billion banking bailout in 2008 and an estimated $931 billion in secret federal emergency loans.

-- In 2008, BofA's political action committee gave its biggest contributions to Barack Obama totaling $421,000.

-- After purchasing junk mortgage company Countrywide, BofA agreed to pay $50 million in restitution payments for Countrywide subprime loan fraudster and Democratic fat cat Angelo Mozilo and one of his underlings.

-- B of A forked over payoffs to self-declared bank terrorist outfit NACA (the taxpayer-subsidized Neighborhood Assistance Corporation of America).

-- B of A also capitulated to a Jesse Jackson shakedown. And it forked over at least $2 million to the ACORN Housing Corporation -- which has had a long history of fraud and abuse that goes back decades.

-- The financial giant teamed up with the open-borders lobby (including newly appointed Domestic Policy Council chief Cecilia Munoz's former employer, the National Council of La Raza) to offer illegal alien home loans.

No word yet on whether Obama's Greek columns from the 2008 convention will make a return appearance this fall. But if they do, they may yet be emblazoned with a new red-white-and-blue Bank of Democratic Party America logo.

Optics be damned. The coffers must be filled.

Michelle Malkin is the author of "Culture of Corruption: Obama and his Team of Tax Cheats, Crooks & Cronies" (Regnery 2010). Her e-mail address is malkinblog@gmail.com. -  Source:  TownHall - Townhall.com ^ | Wednesday, January 18, 2012 7:01:43 AM

Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts

This gives a new meaning to " gov’t. corruption"!!!!

No wonder they didn't want to be Audited..

Audit of the Federal Reserve Reveals $16 Trillion in Secret Bailouts - unelected.org - Click: The Silver Bear Cafe

The first ever GAO (Government Accountability Office) audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill (HR1207), so that a complete audit would not be carried out. Ben Bernanke(pictured to the right), Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve’s nearly 100 year history were posted on Senator Sander’s webpage earlier this morning.

What was revealed in the audit was startling:

$16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious - the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.

To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is "only" $14.5 trillion. The budget that is being debated so heavily in Congress and the Senate is "only" $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world.

In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion.

"This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else." - Bernie Sanders (I-VT)

When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.

Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and super-corporations like Halloween candy. If the Federal Reserve and the bankers who control it believe that they can continue to devalue the savings of Americans and continue to destroy the US economy, they will have to face the realization that their trillion dollar printing presses will eventually plunder the world economy.

The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places

View the 266-page GAO audit of the Federal Reserve(July 21st, 2011): http://www.scribd.com/doc/60553686/GAO-Fed-Investigation

Source: http://www.gao.gov/products/GAO-11-696
FULL PDF on GAO server: http://www.gao.gov/new.items/d11696.pdf
Senator Sander’s Article: http://sanders.senate.gov/newsroom/news/?id=9e2a4ea8-6e73-4be2-a753-62060dcbb3c3

Source: unelected.org  - Click: The Silver Bear Cafe

(The Motto of the Silver Bear Cafe is: "Serving up a heaping helping of the Truth, with a generous side of Common Sense")

Have You Heard About The 16 Trillion Dollar Bailout The Federal Reserve Handed To The Too Big To Fail Banks?

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What you are about to read should absolutely astound you. During the last financial crisis, the Federal Reserve secretly conducted the biggest bailout in the history of the world, and the Fed fought in court for several years to keep it a secret.

Do you remember the TARP bailout? The American people were absolutely outraged that the federal government spent 700 billion dollars bailing out the "too big to fail" banks. Well, that bailout was pocket change compared to what the Federal Reserve did. As you will see documented below, the Federal Reserve actually handed more than 16 trillion dollars in nearly interest-free money to the "too big to fail" banks between 2007 and 2010. So have you heard about this on the nightly news? Probably not. Lately Bloomberg has been reporting on some of this, but even they are not giving people the whole picture. The American people need to be told about this 16 trillion dollar bailout, because it is a perfect example of why the Federal Reserve needs to be shut down. The Federal Reserve has been actively picking "winners" and "losers" in the financial system, and it turns out that the "friends" of the Fed always get bailed out and always end up among the "winners". This is not how a free market system is supposed to work.

According to the limited GAO audit of the Federal Reserve that was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the grand total of all the secret bailouts conducted by the Federal Reserve during the last financial crisis comes to a whopping $16.1 trillion.

That is an astonishing amount of money.

Keep in mind that the GDP of the United States for the entire year of 2010 was only 14.58 trillion dollars.

The total U.S. national debt is only a bit above 15 trillion dollars right now.

So 16 trillion dollars is an almost inconceivable amount of money.

But some other dollar figures have been thrown around lately regarding these secret Federal Reserve bailouts. Let's take a look at them and see what they mean.

$1.2 Trillion

A recent Bloomberg article made the following statement....

The $1.2 trillion peak on Dec. 5, 2008 -- the combined outstanding balance under the seven programs tallied by Bloomberg -- was almost three times the size of the U.S. federal budget deficit that year and more than the total earnings of all federally insured banks in the U.S. for the decade through 2010, according to data compiled by Bloomberg.

The $1.2 trillion figure represents the peak outstanding balance on these loans, not the total amount of all the loans. On December 5, 2008 the "too big to fail" banks owed this much money to the Federal Reserve. Many of them could not pay these short-term loans back right away and had to keep rolling them over time after time. Each time a short-term loan got rolled over that represented a new loan.

$7.7 Trillion

Bloomberg is reporting that the Federal Reserve had made a total of $7.77 trillion in financial commitments to the big banks by the end of March 2009....

Add up guarantees and lending limits, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year.

But as mentioned above, a one-time limited GAO audit of the Federal Reserve that was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act covered an even broader time period and revealed even more bailout loans.

According to the GAO audit, $16.1 trillion in secret loans were made by the Federal Reserve between December 1, 2007 and July 21, 2010. The following list of firms and the amount of money that they received was taken directly from page 131 of the GAO audit report....

Citigroup - $2.513 trillion
Morgan Stanley - $2.041 trillion
Merrill Lynch - $1.949 trillion
Bank of America - $1.344 trillion
Barclays PLC - $868 billion
Bear Sterns - $853 billion
Goldman Sachs - $814 billion
Royal Bank of Scotland - $541 billion
JP Morgan Chase - $391 billion
Deutsche Bank - $354 billion
UBS - $287 billion
Credit Suisse - $262 billion
Lehman Brothers - $183 billion
Bank of Scotland - $181 billion
BNP Paribas - $175 billion
Wells Fargo - $159 billion
Dexia - $159 billion
Wachovia - $142 billion
Dresdner Bank - $135 billion
Societe Generale - $124 billion
"All Other Borrowers" - $2.639 trillion

This report was made available to all the members of Congress, but most of them have been totally silent about it. One of the only members of Congress that has said something has been U.S. Senator Bernie Sanders.

The following is an excerpt from a statement about this audit that was taken from the official website of Senator Sanders....

"As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world"

So where is everyone else?

Why aren't leading Republicans and leading Democrats crying bloody murder over this report?

This scandal should have been front page news for months when it was revealed.

But it wasn't.

And Guess what?

Not only did the Federal Reserve give 16.1 trillion dollars in nearly interest-free loans to the "too big to fail" banks, the Fed also paid them over 600 million dollars to help run the emergency lending program. According to the GAO, the Federal Reserve shelled out an astounding $659.4 million in "fees" to the very financial institutions which caused the financial crisis in the first place.

In addition, it turns out that trillions of dollars of this bailout money actually went overseas. According to the GAO audit, approximately $3.08 trillion went to foreign banks in Europe and in Asia.

So why were our dollars being used to bail out foreign banks while tens of millions of American families were deeply suffering?

That is a very good question.

Also, it is important to remember that many of these bailout loans were made at below market interest rates, and this enabled many of these financial institutions to rake in huge profits.

According to a recent Bloomberg article, the big banks brought in an estimated $13 billion by taking advantage of the Fed’s below-market rates....

While the Fed’s last-resort lending programs generally charge above-market interest rates to deter routine borrowing, that practice sometimes flipped during the crisis. On Oct. 20, 2008, for example, the central bank agreed to make $113.3 billion of 28-day loans through its Term Auction Facility at a rate of 1.1 percent, according to a press release at the time.

The rate was less than a third of the 3.8 percent that banks were charging each other to make one-month loans on that day. Bank of America and Wachovia Corp. each got $15 billion of the 1.1 percent TAF loans, followed by Royal Bank of Scotland’s RBS Citizens NA unit with $10 billion, Fed data show.

So once the financial crisis was over, were adjustments made to the financial system to make sure that this type of thing would never happen again?

Of course not.

Today, the "too big to fail" banks are larger than ever. The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.

So now they are more "too big to fail" than ever.

But this is what happens when we allow unelected central bank bureaucrats to run our financial system.

Most Americans do not realize this, but the truth is that the Federal Reserve is not part of the government. In fact, it is about as "federal" as Federal Express is. The Federal Reserve has admitted that they are a privately owned institution in court many times, and you can see video of a Federal Reserve employee admitting that the Federal Reserve is privately owned right here.

The Federal Reserve is an out of control monster that is throwing around trillions of dollars whenever it wants to. Nobody should be allowed to do this. Nobody should be allowed to give bailouts to banks and corporations without the express permission of the U.S. Congress and the president of the United States.

This is a point that I made in my article yesterday. The Federal Reserve decided this week that it is going to provide "liquidity support" to Europe. If the American people do not like this move, that is just too bad. We do not get a say in the matter.

Are you starting to understand why I keep pushing the idea that it is time to shut down the Federal Reserve?

Please share this information about the secret 16 trillion dollar Federal Reserve bailout with your family and your friends.

If we can get enough people to wake up, perhaps there is still time to change the direction that this country is headed.

From the Economic Collapse Blog

Video: The Fed Grants $7.77 Trillion in Secret Bank Loan - Now Do You Understand Occupy Wall Street?

Kucinich bill seeks to end the Federal Reserve:

Kucinich bill seeks to end the Federal Reserve!
http://www.godlikeproductions.com/forum1/message1718844/pg1
Kucinich bill seeks to end the Federal Reserve
http://www.rawstory.com/rs/2011/12/01/kucinich-bill-seeks-to-end-the-federal-reserve/

Related:

WHAT THE HELL? The U.S. Secretly loaned 7.7 TRILLION To Banks Without Interest. Then Borrowed Back WITH Interest
http://www.godlikeproductions.com/forum1/message1718942/pg1

America's Next TARP Model
http://www.thedailyshow.com/watch/thu-december-1-2011/america-s-next-tarp-model

A Bloomberg report reveals that the U.S. government loaned banks $7.7 trillion in secret bailout funds at no interest and then borrowed the money back at interest.
Bloomberg reports 7.7 trillion in loans to big banks and Wall Street
http://reading-sage.blogspot.com/2011/11/bloomberg-reports-77-trillion-in-loans.html?m=1pg1

h/t to Jean Stoner