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NO To The Paulson-Bernanke Derivatives Scam Bailout
Webster G. Tarpley
Wednesday, September 24th 2008
WASHINGTON DC – The grand theft bailout now being rammed through Congress by Treasury Secretary Paulson, Federal Reserve Chairman Bernanke, and other officials of the Bush regime with the help of accomplices Pelosi, Majority Leader Harry Reid, and other parliamentarians is a monstrosity for the ages, combining every hideous feature of monetarism, elitism, oligarchism, and sheer feckless incompetence. It is to all intents and purposes a national suicide note of the United States of America, a contract with the devil that absolutely guarantees irrevocable national decline. For any person of goodwill there can be only one impulse at the present moment, and that is to stop this bailout — to block it, to sabotage it, to bottle it up, to load it with killer amendments, and to do everything legally possible to stop this insane design from going through.
IF MCCAIN VOTES AGAINST THE BAILOUT, HE WILL WIN THE PRESIDENCY
In political terms, McCain is now running well to the left of Obama on this issue, with a much stronger populist profile. McCain has attacked the outrageous greed and corruption of Wall Street. Obama does not dare attack Wall Street, since these are his masters. Obama, sounding like Milton Friedman, only attacks Washington. Obama has said that he will support whatever Paulson demands. That is not a surprise, since Paulson represents Goldman Sachs, and Obama is a wholly owned property of Goldman Sachs, which is his single biggest source of campaign contributions. Obama is a creature of Brzezinski, Soros, and Rockefeller, and without them he has no existence; Obama is an abject Wall Street puppet, an agent of finance capital. This week, both senators will have to decide how they vote on the odious derivatives bailout. Obama will surely vote in favor of it, since this is what Wall Street demands. If McCain votes against it, he will most probably propel himself into the White House on the model of Give ‘Em Hell Harry in 1948. Filthy corrupt Democrats like Schumer are already attacking McCain as the new Huey Long. Huey Long, the Louisiana populist of the 1930s, had many positive features, and we could certainly use a good dose of Huey Long in this country to counteract the elitism, oligarchism, condescension, and arrogant snobbery of foundation operatives like Obama. The bailout is already very unpopular 72% of all voters are opposed to it and it will become more and more hated when it becomes clear that it is also a failure. McCain’s course is clear. Will he have the brains and guts to cross Obama’s T on this vital issue?
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PAULSON OF GOLDMAN SACHS, WOULD-BE FINANCE DICTATOR
Paulson is a ruthless and brutal eco-freak usurer who learned his trade at the Goldman Sachs stock-jobbing operation. He is now the leading member of the committee of public safety which rules in Washington, and which includes Gates, Rice, and Mullen. He now demands the astronomical sum of 700 billion dollars for the bailout of mortgage-backed derivatives, collateralized debt obligations, credit default swaps, and other poisonous derivatives. Make no mistake — this is not a bailout of homeowners who are threatened with foreclosure; it is a bailout of the lunatic house of cards which desperate bankers have built on these mortgages using derivatives. The entire crisis is not a crisis of subprime mortgages, it is a crisis of the derivatives bubble which was launched by Wendy Gramm of the Commodities Futures Trading Commission and Greenspan of the Fed with the connivance of Robert Rubin of Goldman Sachs and Citibank, and others in the Clinton administration, some 15 years ago.
These derivatives now amount to a total worldwide notional value that can be estimated between 1 quadrillion and two quadrillion US dollars. This sum is so large that it dwarfs the total value of the entire planet earth and all those who live here. Compared to the cancerous, bloated, and fictitious mass of derivatives which is at the root of this crisis, the $700 billion demanded by politicians, large as this may seem, is nothing but a drop in the bucket. And a drop in the bailout bucket is what it will be. The mass of world derivatives between $1 and $2 quadrillion represents an insatiable black hole which is capable of putting an end, not just to civilization, but the human life itself. The moral choice could not be clearer: humanity will either destroy the derivatives bubble in our time, or the derivatives bubble will surely destroy humanity. Those are the stakes in the current exercise.
Paulson and Bernanke, both lawyers for the Wall Street jackals, lampreys, vultures and hyenas, argue that the public interest demands a bailout of their cronies at Goldman Sachs, Morgan Stanley, J.P. Morgan Chase, Citibank, Bank of America, Wachovia, and the other large money center institutions. Before the American public antes up $700 billion just for openers in the game of genocidal poker which run by the infernal croupiers Paulson and Bernanke, we would be very well advised to examine the veracity of this premise.
COMMERCIAL BANKS ARE INDISPENSABLE
It is of course true that the healthy functioning of the United States economy requires a viable and flexible system of commercial banks. No one should doubt the necessity of commercial banks.
Andrew Jackson was clinically insane on this point, and he still has not a few followers around today. But it ought to be clear that without the services of a well developed commercial banking system, it is impossible to organize business activities as essential as payments, deposits, checking, payrolls, and the discounting of short-term commercial paper, bills of exchange, bills of lading, and all the credit instruments that are intimately connected with real productive activity. Without a functioning commercial banking system, the economic heart of the United States would stop beating, as it briefly did at the end of the Hoover administration in March of 1933. Without commercial banks, no wheel of a factory or railroad can turn, and no commodities can move to show up in supermarkets.
JPM, CITI, BoA ARE DERIVATIVES MONSTERS, NOT COMMERCIAL BANKS
But when we look at institutions like J.P. Morgan Chase, Citibank, and Bank of America, we become aware that these large money center institutions have become detached from any conceivable connection to the world of production, wages, transportation, and all other useful and productive activities. These institutions are not commercial banks any more in any meaningful sense of the term. Ten years ago, in the midst of the Asian financial crisis and the aftermath of the Russian GKO state bankruptcy collapse, the boss of JP Morgan Chase went on television to announce that his bank was specialized in the “risk business.” The risk business meant that JP Morgan Chase, had simply given up on the traditional activity of commercial banks, which was primarily to provide loans to corporations for productive investment in plant and equipment that would also create well-paid industrial jobs. J.P. Morgan Chase decided long ago that that activity was nowhere near profitable enough to be continued.
Instead, J.P. Morgan Chase devoted itself more and more to the issuance, sale, and purchase of derivatives. As early as 1992, the best definition of J.P. Morgan Chase was that it was no longer a commercial bank but rather a derivatives monster. In 2002, the J.P. Morgan Chase derivatives monster came very close to imploding, collapsing in on itself like the hopeless black hole that it still remains to the present day. According to the most recent report of the Comptroller of the Curreny of the US Treasury dated September 30, 2007, JP Morgan Chase today has between $90 trillion and $100 trillion of derivatives. In reality this is a very low-ball estimate, and the real derivatives exposure is some multiple of this figure perhaps $300 or $400 trillion, especially now that Bear Stearns, a smaller black hole of derivatives has been absorbed. But even a mere $90 trillion is already six times the US GDP (currently estimated between $14 and $15 trillion).
DERIVATIVES ARE FINANCIAL AIDS
The question of the derivatives is once again the central issue of the crisis. Most people may not even know what derivatives are, although by now many have some idea that they are dangerous and toxic. French President Jacques Chirac once defined derivatives as financial aids, and he was right. A share of stock supposedly represents part ownership in a corporation. A corporate bond is a debt instrument issued by a corporation, with some claim to a part of the assets in case of bankruptcy liquidation. That means that the stocks and bonds are paper, but paper that is at only one remove from the real world of production, consumption, employment, and wages. The derivative is something radically different.
A derivative represents paper based on paper, no longer a stock or bond, but a future, option, or index that is based on some stock, bond, or other form of paper. Derivatives are therefore at least one step further removed from the world of tangible physical commodity production of useful items which humanity requires in order to survive and to conduct civilization as we know it. In addition to the options, futures, and indices, we have all the possible permutations and combinations of the above, with new variations that are almost infinite. Even to catalogue these would take a book. In addition to these exchange traded derivatives, there is a much larger class of derivative which does not appear on the Chicago Board Options Exchange or analogous institutions in all the money centers of the world. The second and larger class represents the counterparty derivatives, including such things as collateralized debt obligations, mortgage backed securities, structured notes, credit default swaps, and the myriad of other derivative products.
These derivatives were originally supposed to be used as a hedge against risk, but before too long they began to represent the biggest single source of risk and the entire lunatic edifice would finance. By now, to repeat this point yet again, the total world derivatives of in excess of one quadrillion dollars — that is to say, 1000 billion dollars, and may be already approaching the neighborhood of $1.5 quadrillion or even more. One of the inherent problems of derivatives is that nobody knows this exact figure, since derivatives are not reportable in many countries and tend to escape regulation by the proper financial authorities.
DERIVATIVES ARE USELESS AND A THREAT TO CIVILIZATION
You cannot eat derivatives. You cannot live in a derivative. You cannot wear derivatives as clothing, nor can you drive a derivative work. You cannot sail in them or fly in them. They cannot be used as tools of any useful trade. They are not computers, not machine tools, not pharmaceutical equipment, not agricultural implements.
Derivatives are therefore totally outside the realm of capital goods production needs, no matter how these may be defined.
FOR RECOVERY, WIPE OUT, SHRED, DELETE ALL DERIVATIVES
J.P. Morgan Chase, therefore, performs no useful or productive social function, and there is absolutely no reason in the world why the people of the United States should want to bail out this pernicious and socially destructive institution. It has probably been several decades since J.P. Morgan Chase created a single modern productive job. J.P. Morgan Chase’s strategic commitment in favor of the derivatives bubble means essentially that we can easily dispense with most of the functions of this self-styled “bank,” really a casino. Instead of being bailed out, J.P. Morgan Chase ought therefore to be seized by the Federal Deposit Insurance Corporation, and put through chapter 11 bankruptcy. In the course of that bankruptcy reorganization, the entire derivatives book of J.P. Morgan Chase must be deleted, shredded, used as a Yule log, or employed to stoke a festive bonfire of the derivatives. The world did much better when there were no derivatives, and will get along just fine without them.
Derivatives were of very dubious legality in general and were illegal in some of their specific forms until the mid-1990s.
INSTRUMENTS MEANS DERIVATIVES
According to Paulson’s pact with the devil published in the New York Times on September 20, 2008, the Secretary of the Treasury is supposed to be empowered by Congress to spend $700 billion on mortgage related securities, obligations, and instruments. That last word instruments is the favorite euphemism of television commentators and journalists who want to propose a derivatives bailout without using this word, which has now become to some degree unmentionable and taboo, presumably because of its highly negative connotations left over from the crises of more than a decade ago. Accordingly, one very good killer amendment that ought to be added to this pact with the devil should state that not one penny of taxpayer money should ever be used to finance the purchase of derivatives, no matter how they may be euphemistically referred to.
WHY BUY MORTGAGE BACKED SECURITIES THAT HAVE NO PRICE BID?
Paulson wants to buy up derivatives. But at what price? Derivatives have no intrinsic value. Like the rasbucknik in the old L’il Abner comic strip, derivatives have negative value, since somebody has to be paid to cart them away. Counterparty derivatives currently have no price, since there is no market where they are trading, and nobody would want to buy them if there were such a market. Collateralized debt obligations were selling at 5 cents on the dollar a few weeks ago, but that was well before the current crisis broke in its full fury. So how will Paulson know how much to pay for the derivatives he wants to purchase? Will he use the discredited Black-Sholes model, which led to the bankruptcy of the Long Term Capital Management hedge fund ten years ago? Given all this, the only price which can be assigned to the mass of derivatives is not their notional value, but rather a big fat ZERO. Anything else is stealing from the government.
“INVESTMENT BANKS” DRIVE UP THE PUMP PRICE OF GASOLINE
Let us now leave behind the category of the commercial banks and move on to institutions like Goldman Sachs and Morgan Stanley, the stock jobbing operations or counting houses that like to call themselves investment banks these days, even though they do not have the status of a commercial bank and are not members of the Federal Reserve. Why should any public money at all be used to prolong the noxious lives of these sociopathic and pernicious institutions? A short examination of what these so-called investment banks do will reveal that there is no public interest in keeping these creatures alive, and that, once again, touch better off without them.
Investment banks used to assist corporations and floating issues of stocks or bonds on the financial markets. Investment banks were supposed to function as the advisers of industrial corporations and other corporations as they sought to raise capital needed for new plant, equipment, and jobs. But today, these functions have virtually disappeared. The investment banks do a certain amount of work in initial public offerings for IPOs of new securities, but these are almost always of a financially speculative nature. The main thing is that investment banks now place bets on certain classes of assets in the hope of turning a purely speculative profit for themselves. Goldman Sachs and Morgan Stanley maintain trading desks and engage in purely speculative trading of assets which they themselves own, and most of the time these assets represent derivatives of one kind or another. In recent times, the most important asset class which Goldman Sachs and Morgan Stanley have been trading is probably future indices on commodities, especially oil. Goldman Sachs and Morgan Stanley between them have in the past year by various estimates accounted for about half of the speculative activity in the commodities markets of London, New York, and other money centers which brought about the doubling of the per barrel price of oil between July 2007 and July 2008, increasing the cost of gasoline to almost five dollars per gallon.
GOLDMAN SACHS, MORGAN STANLEY CREATE I.C.E. TO FLAY AMERICANS
In a very real sense, American motorists filling their gas tanks at the pump at exorbitant prices have been involuntarily subsidizing the speculative derivatives activity of Goldman Sachs and Morgan Stanley. How bitterly ironic that the same American motorists should now be taxed in order to permit their tormentors to live on and to continue to mercilessly loot them. Goldman Sachs and Morgan Stanley found that even the very weak regulatory regime maintained here in the United States under the auspices of the Commodity Futures Trading Commission was too onerous for them because it slightly constrained their rapacious quest for speculative profits at the expense of the American people. These two investment banks therefore created a new speculative commodity exchange, the ICE or Intercontinental Exchange located in London, with a regulatory regime is virtually nonexistent. The ICE or Intercontinental Exchange in London is where about half of the world futures contracts in oil have been trading in recent months.
Goldman Sachs and Morgan Stanley, like their now-defunct brethren Bear Stearns, Lehman Brothers, and Merrill Lynch, have also made many speculative investments in the area of mortgage backed securities based on predatory subprime mortgages. The adjustable rate mortgages that underlie these derivatives should have been declared illegal long ago. But now let us imagine what will happen if a hapless victim of these predatory lending practices is forced into foreclosure in the current world economic great depression.
Goldman Sachs will send the bailiff to your door to throw you, your family, and your belongings out on the street, even though you have been taxed to permit Goldman Sachs to continue its sociopathic existence. You will in effect be robbed out of one pocket even as you are being pushed out the door and made homeless by the same institution which has been the beneficiary of your forced charity.
Surely any politician daring to come forward to suggest the public bailout of Goldman Sachs so that it can continue to enforce foreclosures against the American citizens who are paying the bill for the financial excesses of this bandit institution ought to be tarred and feathered and run out of town on a rail. Yet this is exactly what Pelosi, Reid, Dodd, and Frank are proposing to force through the U.S. Congress in the coming week. This represents a new low in public morality.
With Fannie Mae and Freddie Mac, the situation is slightly different, but the same criteria ought to apply. Fanny and Freddie worked very well during the three decades after the formation of Fannie Mae in 1938 as an agency of the federal government — a hillbilly cousin of the US treasury, as it used to be called.
Things began to go wrong in 1968 when Fannie Mae was privatized, under the pernicious influence of the doctrines of the monetarist Milton Friedman of the infamous Chicago school of pseudo-economics and obscurantism. Fanny and Freddie have now been placed under the control of conservators, but they ought to be nationalized as part of a permanent state sector of the US economy, and operated as the public utility that they were intended to be. The salaries of their officials ought to be determined by the government-wide GSA schedule. Fannie and Freddie have guaranteed mortgages, and ought to continue to do so. But they have no obligation to guarantee mortgage backed securities or any other form of newfangled derivatives which were never mentioned in their charter.
Accordingly, Fannie and Freddie thought to strip away the mortgage backed securities that have been used to package or bundle the mortgages that they now hold. The mortgages represent a valuable asset for the future, under conditions of economic recovery which we intend to organize. But that extra layer of derivatives paper represents a useless additional tax on the public treasury, which the US government has no obligation to maintain. In short, it is time to separate the socially useful core of actual mortgages representing residential and commercial properties from the harmful and speculative overlay of the mortgage-backed security. By this kind of financial engineering, speculators can receive condign punishment, even as the public treasury is believed of an extra layer useless payment which would only reward speculative crimes.
If anyone should inquire as to the ultimate philosophical causes of the current George Bush world economic depression, the answer is simple: this depression is a direct result of the influence of Milton Friedman and the Chicago school, who are themselves to kind of come down American version of the Viennese school of Friedrich von Hayek. Ludwig von Mises, and other charlatans masquerading as economists. The common denominator of the Chicago school is the Vienna school which is represented by the right-wing anarchist thesis that government is always bad and the private sector, especially speculators, are always good. This absurd thesis is now being consigned to the dustbin of history. Friedman and von Hayek, if they were alive today, would doubtless demand the full fury of the free market the unleashed against the American people. This would lead, not to a recovery, but merely to death on a large scale.
The implications of the Chicago school and the Vienna school under current circumstances are nothing short of genocidal, and even the financiers are hastily dumping the discredited doctrines of Friedman and from Hayek as they rush to get their hands into the public till through bigger and better bailouts in an endless series. There is nothing anywhere in the world left today that might resemble a free market, only an endless list of cartels, trusts, monopolies, oligopolies, duopolies, and other conspiracies in restraint of trade. In fact, there has been nothing even vaguely resembling a free market in most of the world in the past several centuries. What is collapsing today in September 2008 is the delusion that such a thing as a free market might exist in the modern world.
The same negative judgment applies to the lunatic doctrines of Joseph Schumpeter, who preached the madness of creative destruction as a way out of the world economic depression of the 1930s.
Schumpeter’s doctrines today are nothing less than a public menace, and persons who demand a deflationary crash of the world economy by preaching the Andrew Mellon formula of liquidating labor, liquidating stocks, liquidating bonds, liquidating real estate, etc., are to be put in a padded cell. This is even worse than Herbert Hoover. It was tried in 1932-33, and it turned out to be a bottomless pit already then, so it does not need to be tried again.
BACK TO THE NEW DEAL: RESTORE THE GLASS-STEAGAL FIREWALL
Scribblers like Friedman and von Hayek were paid by finance oligarchs to wage a relentless war against that heritage of the Franklin D. Roosevelt New Deal, the set of policies which allowed humanity to survive the Great Depression of the 1930s. The current crisis would not have been possible in the present form if the institutional safeguards enacted during the New Deal had been left in place, as they should have been. These safeguards represent permanent features of civilization, and they need to be restored. The best example is the repeal of the Glass-Steagall Act under the Clinton administration in 1999. The Glass-Steagall Act was a classic piece of New Deal legislation which established that being a commercial bank and being a stockbroker are mutually exclusive activities that could not be legally combined in the same company.
Commercial banking was one thing, and stock brokerage was something completely separate. Naturally, the greedy financiers and their spokesmen clamored for the repeal of Glass-Steagall, and they finally got their wish. Now less than 10 years later all of the Wall Street banks, seemingly without notable exceptions, are bankrupt and insolvent institutions that cannot not survive without a massive infusion of taxpayer money. We need to restore Glass- Steagal, which will mean among other things that Goldman Sachs and Morgan Stanley will not be eligible to become bank holding companies after all. If you don’t like your tax bill next year, you should thank Newt Gingrich and others who made it their business to destroy and roll back the achievements of the New Deal in the name of the despicable ideology of monetarism as preached by Friedman and von Hayek. Newt, by the way, is now calling for an immediate deflationary crash to find out what the real prices of housing might be. This is like doing experiments on your own flesh, and Newt should go to the funny farm.
BACK TO THE NEW DEAL: RESTORE THE UPTICK RULE
Another example is the uptick rule. This New Deal measure meant that it was illegal to sell a stock short if it were continuously in decline. The speculator had to wait until there was an uptick, meaning a trade in which the stock in question increased in price; only then could a short sale be carried out. Another piece of bitter irony inherent in the present crisis is that this uptick rule was abolished by the feckless and incompetent Chairman Cox of the Securities and Exchange Commission at the beginning of last summer, just in time for the explosion of the world credit crisis which has led to the current world economic depression. Incredibly enough, Chairman Cox of the SEC has been unable to pull himself together long enough to permanently re-impose the uptick rule.
Instead, he has drawn up a list of 799 financial institutions and banks whose stock will now be illegal to sell short for at least 10 days, although one suspects that this prohibition will be prolonged indefinitely. This crackpot expedient reveals the true nature of the current monetarist regime. Shorting and destroying General Motors, which actually produces something useful, is fine, but no shorting of JP Morgan Chase, which is a public menace that produces nothing but toxic paper. The long-term roots of the current crisis go back to August 15, 1971, when Nixon, Kissinger, Arthur Burns and George Shultz wantonly destroyed the Bretton Woods system of fixed currency parities, ushering in the new world of financial risk which is now collapsing around us.
NATIONALIZE THE FEDERAL RESERVE AS A BUREAU OF THE TREASURY
The present crisis ought to provide the death warrant for the failed Federal Reserve System. When the Fed was created back under Woodrow Wilson, its Rockefeller and Morgan sponsors promised that the Fed would protect us against all future financial panics. The Fed failed once in 1929-1933, and now it is failing again for a second time. The Fed is worthless as a firewall against depression. We must therefore seize the Fed, audit it, nationalize it, and operate it in the future as a bureau of the US Treasury. From now on, we must go back to the Constitution, meaning that the size of the money supply and short-term interest rates will have to be determined by public laws of the United States, passed by the House and the Senate and signed by the president. Using this method, we can mandate new initial credit issues of $1 to $2 trillion to be used exclusively as low interest (.5% to 1%) and long-term (30 to 40 year maturities) credit for productive purposes only manufacturing, farming, mining, commerce, energy production, infrastructure, and the other things we need. We should stop having the Fed lend money to Citibank at 2% and then having the Treasury borrow that same money back for 4% to 5% in the form of Treasury paper. Nationalize the Fed, and let the Treasury finance itself, cutting out the parasitical middlemen like JP Morgan Chase, Goldman, Citibank, and the rest. The taxpayers will be the big winners.
HOOVER’S RECONSTRUCTION FINANCE CORPORATION WAS A FAILURE
The Paulson-Bernanke $700 billion is roughly comparable (factoring in about 2000% inflation from 1932 to 2008) to the Herbert Hoover Reconstruction Finance Corporation, which started with $2 billion real 1932 dollars, but failed because it tried to prop up insolvent banks and shore up collapsing financial values. Under FDR, the RFC was put under Jesse Jones, who used it to create real plant and equipment with great success. Under Jones, the RFC contributed decisively to US economic recovery by building up the Metals Reserve Company, the Rubber Reserve Company, the Defense Plant Corporation, the Defense Supplies Corporation, the War Damage Corporation, the U.S. Commercial Company, the Rubber Development Corporation, and the Petroleum Reserve Corporation. In other words, the RFC under Jones rebuilt the industrial infrastructure which we have been using down to the present day. Most of these investments represented added physical commodity production. Today, this could be repeated to produce infrastructure and energy plants for civilian use.
CLEARING THE DECKS FOR WORLD ECONOMIC RECOVERY
It is time to forget about paper and the price of paper, and to concentrate on production securing the tangible physical commodities and hard commodity production which are necessary for human life and civilization. It is impossible to prop up financial values in a panic, and it is foolish to try. To secure a decent future, we must now enact the following measures. Any of these points, all of which seek to defend the general welfare and the public interest, can and should be used as killer amendments to be attached to the current bailout monstrosity as a means of bringing it down.
Stop all foreclosures on homes, farms, businesses, factories, mines, transport systems, for a period of at least five years or for the duration of the present world economic depression, whichever takes longer. If you throw a family out of their home or shut down a family farm, taxicab company, trucking firm, ferry, airline, railroad, or factory of any kind because of debt, you will be on your way to Leavenworth. All politicians now say that we have to keep families in their homes. Excellent! A uniform federal law with real teeth is the way to do it.
Seize bankrupt banks and financial institutions. Put them through Chapter XI bankruptcy, and cancel the hopelessly unpayable parts of their debts, starting with their derivatives book.
Wipe out all derivatives, whether exchange traded or counterparty, without compensation. They have always been illegal. They are now a threat to all of our lives. Not one penny of public money must go to buy derivatives.
Securities transfer tax or Tobin tax on all financial transactions, including stocks, bonds, foreign exchange, etc. This is a sales tax on finance oligarchs who need to start paying their fair share. This will take the life out of the booze for many speculators.
Stop oil, food and commodity speculation with comprehensive re- regulation including position limits, 50 to 100% margin requirements depending on market conditions, and by distinguishing between legitimate hedgers and predatory speculators.
No tax increases on households. Surtax for foundations like the Ford, Rockefeller, Carnegie, Annenberg, and Gates Foundations, who use their funds not for charity but for subversion and divide and conquer social engineering to divide and weaken the American people in defense of the financier interest.
Restore business confidence and credit with new credit issue through the nationalized Federal Reserve, operating under the legal auspices of the US Treasury. Use credit as a public utility. Provide cheap, long-term credit for productive purposes only, not parasitical speculation or financial services.
Institute an absolute guarantee for Social Security, Medicare, Medicaid, Head Start, WIC, food stamps, unemployment insurance, and the other remaining elements of the social safety net. No “entitlement reform” under any circumstances. Austerity for bankers, not people. Use the proceeds from the Securities Transfer Tax to replenish the Social Security Trust Fund and preserve the other vital programs through the end of the twenty-first century.
Using New Deal methods, it is possible to stop a depression cold in a single day. We did it before, and we can do it again. Only 28% of the American people now support the monstrous derivatives bailout, with 37% opposed and 35% unsure, according to Rasmussen on Sept. 22. This is an issue powerful enough to crystallize the current party re-alignment in the same way that slavery in the territories did in 1860, or the last depression did in 1932. Within a month, the current empty husks of the gutted Democratic and Republican Parties could collapse, and be replaced by the pro-Wall Street Bailout Party led by Obama and his phalanx of rich elitists and Malthusian fanatics from both parties, and the pro-middle class and pro-worker Anti-Bailout Party with support from right-wing Republicans, libertarians, and working class Democrats. Who will have the brains and guts need to assert leadership over the Anti- Bailout Party? Will it be McCain? Or Hillary Clinton? Or someone else? We will soon find out.
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September 24th, 2008 at 11:11 am
i HOPE these criminals get there’s in the end crooks lookin for 700 bil and no oversight buy the courts so they dont get cought with there hands in the 700 bil money jar .
September 24th, 2008 at 11:51 am
yes! Let us do nationalize the FED. That would show them! Hahaha
September 24th, 2008 at 11:53 am
new video on martial law, chemtrails, etc
http://ca.youtube.com/watch?v=X4rD6muiCd4
September 24th, 2008 at 12:51 pm
Did Americans ever pay off the Savings and Loan debt?
I believe most Americans pay Federal taxes because a gun is pointed at them if they don’t.
If so does this “bailout” become the largest armed robbery in history?
Probably not. Any economic historians out there?
September 24th, 2008 at 1:18 pm
They are going to get away with it because of stupid lazy scared s---less lilylivered americans who continue letting the slave masters use, abuse, torture and kill them without blowing a fuse and rounding up the entire washington vultures and machine gunning or beheading them all taliban style. It’s all over, we are all going to be paying for this blatant third world kelptocracy.
Captalism at this junction in America is much much worse than communism.Anyone doubting that should check out China.The reds everyone like to use as punching bag of being commies. Russians would not take this kind of abuse too. Given that Putin atleast chased and jailed the worst of the oligarchs . with a lot who high tailed to Isreal and London taking with them commie hard earned money as their. We are freaking doooooooooooomed! Every american must remember this, GW BUSH is and will remain a curse to the USA until our ammagedon.These people need to be buried.
September 24th, 2008 at 1:22 pm
These derivatives now amount to a total worldwide notional value that can be estimated between 1 quadrillion and two quadrillion US dollars. This sum is so large that it dwarfs the total value of the entire planet earth and all those who live here.
This is the real problem. A paltry sum of just 700 billion dollars won’t fix it. The banksters, in their insatiable greed, have artificially inflated the nominal value so much that there is not nearly enough real value in the world to counterweight it.
Now the only thing that can be done to keep prices artificially inflated is to reduce the value of money by flushing the market with copious amounts of dollars. Can you say hyperinflation…
September 24th, 2008 at 2:13 pm
Good article. Now where is my torch and pitchfork.
September 24th, 2008 at 2:34 pm
new world order is here.
may i remind you all that pearl harbour was allowed to happen by the US government, to get the US in the second world war.
this is a known fact in the world, US were forewarned prior, but let the attack go ahead. just like 911.
the US created this financial mess, helped it get bad, allowed it to happen.
why ?
to continue the enslavement of the US people. send all the money to the elite people at the top.
when will USA wake up ?
when will you practice the right to bear arms ?
when will you overthrow your corrupt government ?
you are fed information by your supposed free media. this is worse the nazi propaganda the garbage you people believe.
wake up, take action, revolt against an unjust goverment.
today, not tomorrow, not next year, TODAY
September 24th, 2008 at 3:20 pm
You seem to be advocating voting for McCain whilst casting democrats (Clinton, Obama) as the bad guys. errmm, isnt this kind of silly, hasnt McCain opportununistically changed his position by 180degrees after seeing which way the wind is blowing?
Realistically the only person to vote for is Nader whether he has a chance or not, anything else is just a waste of a vote and validation of a corrupt and outdated elite.
September 24th, 2008 at 3:21 pm
At the very last email the congress and senate. Let them know how unhappy this makes you.
Check out who is on the finance committee – gee another Rockefeller (john d. the 4th of course).
Keep up the phone calls and th emails and send others like me@glennbeck.com and your favorite talk show hosts.
They sure don’t seem to want to send us the “taxpayers” any federal reserve notes to pay off our mortgages even though this would ignite our economy.
Just think of all the baby boomers that would retire abd creat jobs for the younger kids who need them.
You are having an affect.
September 24th, 2008 at 4:29 pm
It’s useless. If the people really did have any power in their own government, not only would that thing have never left the table it was created on, but the fed wouldn’t exist as it does today. Preserve the people, not the institutions that continue to enslave it. Let them burn for their folly. They do no less for us.
September 24th, 2008 at 4:41 pm
This is all a con job! The powers that be have been deliberately destroying the US dollar so they can bring in the amero! It is time to abolish the fed, and for Congress to take back the check book from the foreign bankers. Maybe bush will scare Congress into passing the bailout like he did with the patriot act! In the end we the Citizens will lose!
September 24th, 2008 at 4:48 pm
Though I find this piece a source of education regarding derivatives,
you’re conclusions and recommendations are WAY out of sync with
what MANY of us have now been taught very well by Dr. Paul.
Ignoring contracts by fiat decree is one…. nationalizing the FED and
allowing ANY HUMAN OR GROUP OF HUMANS, especially the “treasury”
to arbitrarily FIX a value to the monetary system…. without tying it
DIRECTLY to a commodity (such as gold) is to repeat the mistake of
“trusting” government once again.
No tax INCREASES on households? How about NO taxes on LABOR…PERIOD!
I don’t know how many people (including Alex Jones et al) have actually READ
this entire piece…. but it’s NOT cut from the same cloth that most patriots now
believe in.
Thank God for Ron Paul…. so we can sort out the wheat from the
chaff.
Goldenequity
September 24th, 2008 at 4:53 pm
Though I find this piece a source of education regarding derivatives,
you’re conclusions and recommendations are WAY out of sync with
what MANY of us have now been taught very well by Dr. Paul.
Ignoring contracts by fiat decree is one…. nationalizing the FED and
allowing ANY HUMAN OR GROUP OF HUMANS, especially the “treasury”
to arbitrarily FIX a value to the monetary system…. without tying it
DIRECTLY to a commodity (such as gold) is to repeat the mistake of
“trusting” government once again.
No tax INCREASES on households? How about NO taxes on LABOR…PERIOD!
Guaranteed WELFARE, social security, food stamps? HUH?
I don’t know how many people (including Alex Jones et al) have actually READ
this entire piece…. but it’s NOT cut from the same cloth that most patriots now
believe in.
Thank God for Ron Paul…. so we can sort out the wheat from the
chaff.
Goldenequity
September 24th, 2008 at 4:56 pm
No one is talking about the winners. There is so much in profits on one side they cannot come up with a figure.
These derivatives must be killed.
Then let us find out who the “lucky” winners are.
Then make a settlement or,
bring a rope.
September 24th, 2008 at 5:37 pm
Jon Stewart of the Daily Show was particularly incensed by Treasury Secretary Henry Paulson’s coy reluctance to accept taxpayers’ money unless his decisions on how to spend it are made “non-reviewable.”
“Before we hand this Munster-esque unelected official 700 BILLION no-strings-attached-dollars,” Stewart remarked, “there is one thing you should know –this financial guru never saw it coming.”
“I’ve got great confidence in our financial market,” Paulson stated last March. “Our Markets are resilient, are flexible. Our Institutions, our Banks, and Investment Banks, are strong.”
Stewart turned next to “Daily Show” analyst John Oliver, saying, “After Katrina, after Iraq… I didn’t think there was another area that these guys could screw up.”
“It wasn’t easy,” Oliver replied, “It was like finding a vein on a failure junkie.”
“Is this economic crisis, then, sort of the turd icing on this administration’s s---cake?” Stewart wondered.
“You’re saying the president here won’t be satisfied until American children are eating roadkill?” suggested Stewart.
“Until they’re fighting over roadkill,” Oliver emphasized. “Until roadkill is the prize for the strongest.”
September 24th, 2008 at 6:23 pm
“You keep saying you’ve got something for me.
something you call love, but confess.
You’ve been a messin’ where you shouldn’t have been a messin’
and now someone else is gettin’ all your best.
These boots are made for walking, and that’s just what they’ll do
one of these days these boots are gonna walk all over you.
You keep lying, when you oughta be truthin’
and you keep losin’ when you oughta not bet.
You keep samin’ when you oughta be a changin’.
Now what’s right is right, but you ain’t been right yet.
These boots are made for walking, and that’s just what they’ll do
one of these days these boots are gonna walk all over you.
You keep playin’ where you shouldn’t be a playin
and you keep thinkin’ that you´ll never get burnt.
Ha!
I just found me a brand new box of matches yeah
and what he knows you ain’t HAD time to learn.
These boots are made for walking, and that’s just what they’ll do
one of these days these boots are gonna walk all over you.
Are you ready boots? Start walkin’!”
-Nancy Sinatra
September 24th, 2008 at 7:58 pm
There are many things about this proposal that enrage me, not the least of which is the price tag, the fact that Paulson would be the Dictator in charge of these funds and that the administration wants no oversight. However, when I learned that these Republicans have had this legislation in draft form for several months tells me they intended for this to be this year’s October Surprise. Now I wonder what they’ll come up with to supplant this!
September 24th, 2008 at 8:46 pm
Clearly, Alex Jones’ intrepid attitude toward this grammatically-challenged Webster Tarpley is well advised. To agree with most all of the recommendations that would be inherent in a “von Mises economic model” surrounding real commodity & productive value, and then in the same article call it a ridiculous, passe-by-centuries ideal that would cause “death on a large scale” gives me a head cramp. For I see that to forsake a return to a precious commodity-based free market, continuing in favor of this criminal-centric, blank signed-cheque artificial fiat dysfunction, is today “total death.”
The gathering Dr. Paul R3volution must see the stormy end of these convoluted, criminal dreamworld, fascist Fabian Socialist shenanigans, replacing it in favor of reality-based economics. But the white-collar tapeworms will do all they can to steal whatever value they can still see, & run away with, to hide & die in comfort hard-earned by others, knowing the jig is up, & that this is their last kick at the public feeding trough. Reminds me of the immediately post-Katrina looting of New Orleans in recent memory.
Alas, my only question is “What will you & I do for our kid’s children before 2012?” While the feckless locusts may swarm & persist in furtive mindless panic, the shepherds deliberate & plan the morning’s ruthless burning action from the high up mountain nearby.
September 24th, 2008 at 9:04 pm
It is time to wake up and realize that this is what we get when we allow the jews to take over all aspects of our lives, especially our financial system. These talmudic vampires really think that they can commit treason against the United States of America by destroying her financially and then ask the stupid Goyim to pony up 700 BILLION dollars on top of the 1 TRILLION dollars we paid for the wars for Israel, and that not only will we give it to them, we will let them bail out all of their zionist friends that caused this mess!?
Wake up people and take your country back from these people by following these simple steps.
1. Boycott all jews in all professions.
2. Vote for all non incumbents on the ballot.
3. Tell everyone how the “Federal” (zionist) reserve works.
4. Write to your representative and tell them that their unwavering support for all things jewish is over and that if they continue to vote in favor of jews that you will replace them.
Stop taking bending over and taking it from your zionist masters and fight back.
Do you really want your ancestors to have every aspect of their lives run by jews?
DO SOMETHING!
September 24th, 2008 at 9:33 pm
This is an EXCELLENT article. Who is this author?
goldenequity, I love Ron Paul, and I voted for him, but you have to understand that simply “getting rid of corruption” or “putting money back on the gold standard” is not going to SOLVE the CURRENT CRISIS.
The things Paul talks about would have PREVENTED the current crisis, but I don’t think he forecast this nor does he understand the nature of the synarchist banking cartel behind it. He talks about the Fed of course, but does he understand that the Fed is simply the US branch of a WORLDWIDE banking cartel?
This is a WORLDWIDE problem. Let’s make that clear. We are in a fight to save not simply the USA, but the WORLD which is intimately attached to this whole monetarist system.
Correct me if I am wrong, but I don’t think I have ever heard Paul talk about the monetarist system as the CAUSE of this. He says its the Fed. He is right. But the Fed is just a PART of the MONETARIST banking cabal.
Paul is great, he has been a great messenger in this, but he is not an economic genius and he did not forecast these events.
As far as Social security and government programs. Sorry but that is almost INSIGNIFICANT compared to the decisions we have to make to bring our industry and economy back from the dead. Yes, Paul does not agree with those things; but believe me, worrying about social programs are the LAST of our concerns right now.
Also, you misunderstand when the author talks about nationalizing the Fed. This would be FANTASTIC. It would be the culminations of everything Ron Paul has wanted to do!!!
I think you are misunderstanding him. He wants to ABOLISH the Fed in essence.
He wants to put it under the arm of the US TREASURY where it belongs!
Then the government can issue CREDIT to restart our destroyed industry, put people back to work and rebuild our industry which as been destroyed.
Hoover’s idea was to print “paper” to solve the crisis. FDR’s idea was to “print” INFRASTRUCTURE!!! The difference is night and day.
Infrastructure IS economy. Paper is NOTHING.
Imagine if the government issues low interest rate loans for industry to exploit building THINGS. Not only will we start building our economy back up, but the government (NOT THE FED!!!) will have a SURPLUS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
You might not like the social programs and stuff, but that is like a couple of sprinkles on the economic recovery cake. The social programs can be debated, but those things are the LEAST of our worries!
We MUST put the government into bankruptcy reorganization. We have NO OTHER FREAKING CHOICE!!!
We MUST wipe out the derivatives and other worthless paper on the books. We have NO OTHER CHOICE.
We MUST create a reconstruction corporation to build back our infrastructure. We have NO OTHER CHOICE.
We need to build our economy back. I don’t think people understand just how bad it is right now.
ITS TOO LATE TO “FIX” THE PROBLEM WITH PREVENTIVE MEASURES. Sorry, but preventive measures are YEARS TOO LATE.
Without active New Deal types of measures, we are simply DONE. FINISHED. Without these measures we will have either ANARCHY or FASCISM. Pick one.
Some of you might want anarchy. Well, good luck with that.
In the meantime, the rest of us who actually care about BILLIONS of people starving in the third world, preventing WWIII and preventing a new DARK AGE will try to put our government into bankruptcy reorganization to it can create CREDIT for the PEOPLE of the country.
Medicare, Social security? Look, being a lifelong Democrat (until I voted for Paul) I am for those things, but I will gladly trade them in to avoid a fascist COUP.
Those are nit-picky issues compared to what this country is standing up against at the moment.
God help us if they act as a “wedge” to split our country for the benefit of the Fascists.
September 24th, 2008 at 9:41 pm
This is an EXCELLENT article. Who is this author?
goldenequity, I love Ron Paul, and I voted for him, but you have to understand that simply “getting rid of corruption” or “putting money back on the gold standard” is not going to SOLVE the CURRENT CRISIS.
The things Paul talks about would have PREVENTED the current crisis, but I don’t think he forecast this nor does he understand the nature of the synarchist banking cartel behind it. He talks about the Fed of course, but does he understand that the Fed is simply the US branch of a WORLDWIDE banking cartel?
This is a WORLDWIDE problem. Let’s make that clear. We are in a fight to save not simply the USA, but the WORLD which is intimately attached to this whole monetarist system.
Correct me if I am wrong, but I don’t think I have ever heard Paul talk about the monetarist system as the CAUSE of this. He says its the Fed. He is right. But the Fed is just a PART of the MONETARIST banking cabal.
Paul is great, he has been a great messenger in this, but he is not an economic genius and he did not forecast these events.
As far as Social security and government programs. Sorry but that is almost INSIGNIFICANT compared to the decisions we have to make to bring our industry and economy back from the dead. Yes, Paul does not agree with those things; but believe me, worrying about social programs are the LAST of our concerns right now.
Also, you misunderstand when the author talks about nationalizing the Fed. This would be FANTASTIC. It would be the culmination of everything Ron Paul has wanted!!!
I think you are misunderstanding him. He wants to ABOLISH the Fed in essence.
He wants to put it under the arm of the US TREASURY where it belongs!
Then the government can issue CREDIT to restart our destroyed industry, put people back to work and rebuild our industry which as been destroyed.
Hoover’s idea was to print “paper” to solve the crisis. FDR’s idea was to “print” INFRASTRUCTURE!!! The difference is night and day.
Infrastructure IS economy. Paper is NOTHING.
Imagine if the government issues low interest rate loans for industry to exploit building THINGS. Not only will we start building our economy back up, but the government (NOT THE FED!!!) will have a SURPLUS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
You might not like the social programs and stuff, but that is like a couple of sprinkles on the economic recovery cake. The social programs can be debated, but those things are the LEAST of our worries!
We MUST put the government into bankruptcy reorganization. We have NO OTHER FREAKING CHOICE!!!
We MUST wipe out the derivatives and other worthless paper on the books. We have NO OTHER CHOICE.
We MUST create a reconstruction corporation to build back our infrastructure. We have NO OTHER CHOICE.
We need to build our economy back. I don’t think people understand just how bad it is right now.
ITS TOO LATE TO “FIX” THE PROBLEM WITH PREVENTIVE MEASURES. Sorry, but preventive measures are YEARS TOO LATE.
Without active New Deal types of measures, we are simply DONE. FINISHED. Without these measures we will have either ANARCHY or FASCISM. Pick one.
Some of you might want anarchy. Well, good luck with that.
In the meantime, the rest of us who actually care about BILLIONS of people starving in the third world, preventing WWIII and preventing a new DARK AGE will try to put our government into bankruptcy reorganization so it can create CREDIT for the PEOPLE of the country.
Medicare, Social security? Look, being a lifelong Democrat (until I voted for Paul) I am for those things, but I will gladly trade them in to avoid a fascist COUP.
Those are nit-picky issues compared to what this country is standing up against at the moment.
God help us if they act as a “wedge” to split our country for the benefit of the Fascists.
http://www.larouchepac.com/
The man above is one of the few economists who actually forecast (in no uncertain terms) an economic New Dark Age. While others were “concerned” or “worried” he was telling people we are headed for a New Dark Age. While others were talking about how this happened and how it should have been prevented he created an ECONOMIC RECOVERY PLAN. While others were talking of a corrupt system he already INTRODUCED LEGISLATION TO CONGRESS.
September 24th, 2008 at 10:48 pm
Maryann,
You’re the one that needs to wake up. Do you have any idea how ignorant you sound? Blaming the Jews? It’s just amazing that after Hitler and the Holocoust anyone would dare begin such mindless dribble. Here’s a little tip, Think before you say such hateful things, people will actually respect you for it….
September 24th, 2008 at 10:58 pm
LaRouche/Tarpley stance on welfare ism I couldn’t go along with.
It is stealing and transfering wealth by force via tax and once again
empowers the state….. whether socialism or facism …. it’s TOO MUCH
power to the state…..
fine… cancel/seize the derivatives… put the black hole back where it came from.
But the capital and means of production….. REMAIN in the private sector.
Local Banks will rise up and do the commercial lending AND KEEP THE PAPER in
the local bank…… not repackage and ship off in bundles oversees…. no more
disguising toxic loans as AAA bonds and handing them off…. whoever makes the
loan….. totes the note….. they’ll be a hell of a lot more careful WHO they loan to.
Return more government and financing BACK to the local/state level….. it worked
wonderful for decades and decades….. so did personal responsibility and local charity.
Sorry no Tarpley/LaRouche for me….. thanks for all your efforts exposing the globalists..
it’s not without gratitude for all you’ve done and given your lives for….
you are patriots and I would join with you in any foxhole!
cheers, goldenequity
September 25th, 2008 at 12:35 am
Strange the yanks wont stump up 700 billion dollars to save a whole economy. The UK govt has stumped up 160 billion dollars and counting to prop up just one bank, Northern Rock.
Bush is clueless. Either he is overstating the economic problems. Or his 700 billion rescue package will be woefully inadequate.
My opinion? He’s wrong on both counts. The economy – thanks to banks playing derivatives – is much worse than even Bush portrays. And 700 billion will be like pissing in the wind.
September 25th, 2008 at 12:45 am
Just got here via a thread on the UK housepricecrash.co.uk site.
Here in the UK, the only political party that is awake to the current economic propblems is the BNP – hence the high level support for the party on housepricecrash.co.uk and other sites in the UK.
America too must take a stand against the Demopublicans NWO – get an independent Nationalist candidate elected and your problems will be solved.
And to kj above, why is it that when anyone criticises Zionists, idiots like you leap to their defence citing the Holocaust? The zionists cannot continue to murder Palestinians and make obscene profits around the world. Bleating “Holocaust” to silence their critics no longer works.
September 25th, 2008 at 1:21 am
I sent the link to Barack Obama’s “Fight the Smears” website. Curious as to see if his camp will even respond…probably not.
September 25th, 2008 at 3:58 am
Until someone other than Ron Paul, who has been marginalized by the other presidential candidates and the mainstream media, points a finger at the Federal Reserve Bank as the underlying culprit for the 95% devaluing of the US dollar from when it was created until today, nothing will change.
John F. Kennedy passed an Executive Order allowing the United States government to start printing money based on Silver standard. Six months later he was dead. Of course he wanted to dismantle the CIA at the same time. He had a number of deadly enemies with some very good reasons to kill him.
Go to my website where there are many articles and videos on these issues and many other crucial issues including a fascist takeover this country by the Bush family. http://Www.911insidejob.net
September 25th, 2008 at 12:25 pm
Our country should follow this plan. It is patriotic. The United States of America will once again be the leader of the free world, but only if we do something about it. Let’s use this article and it’ s lucent wisdom to rebuild America…….stronger……..faster……….better…! To hell with Obama……..he is a worthless, cheese eating, muslim traitor….we should turn Iran into a sea of glass!!!!!!!!!!!!!!!!! shalom
September 26th, 2008 at 7:30 pm
ahhh ~ the Treasury ~ the Public Trust Fund Account, We can’t Trust them anymore
.
TSP\SEC Fund is being looted:
.
The Largest Retirement Savings Plan in the U.S.A. with 1.8 million FEDERAL EMPLOYEE contributiors. treated as a ‘trust’ fund, exempt from taxation ( Tax Reform Act of 1986 Section 1147 Title 26 U.S.Code 7701 ( j ). THRIFT SAVINGS PLAN ( TSP ) G Fund ( gov securities investment fund ).
.
9-110.330 Charging RICO Counts — 1996 HIPAA Violation — 1998 U.S. Attorney General and DHHS Office of Inspector General and FBI ~ MISPRISON of FELONY — T18CFR371CRIME
(3) FELONY CONVICTION RELATING TO HEALTH CARE FRAUD.–Any individual or entity that has been convicted for AN OFFENSE WHICH OCCURRED AFTER THE DATE OF THE ENACTMENT of the Health Insurance Portability and Accountability Act of 1996 [36], under Federal or State law, in Connection With the Delivery of a Health Care Item or SERVICE [ T42CFR417.1 Adverse Determination \ Denial of COVERD Claims \ Anti-dumping Violation ] or With Respect to any Act or Omission in a Health Care Program … (1) operated by or financed in whole or in part by any Federal, State, or local government agency [ 1998 VOLENTARY DICLOUSURE Program ~ RICO ], of a criminal offense consisting of a felony relating to fraud, theft, embezzlement, breach of fiduciary responsibility, or other financial misconduct.
.
OPM FEHB Consumer Protection ~ NONE
.
Subject: Defrauding the US Government
Date: 5/31/2004 9:49:17 AM Eastern Daylight Time
From: LawISAmootIssue
Reply To:
To: public.info@ots.treas.gov, oadmin@bpd.treas.gov, opda@bpd.treas.gov, chcounsel@bpd.treas.gov, procurement@bpd.treas.gov, commoffc@bpd.treas.gov
CC: LawISAmootIssue
oadmin@bpd.treas.gov,chcounsel@bpd.treas.gov law – frauds – and scams……
RESPONSES TO E-MAIL:
Thank you for visiting the Department’s “Contact Us” page. On behalf of the Attorney General, the Department of Justice would like to thank you for your many e-mail messages on law enforcement issues and activities and other matters of special interest to many groups across the nation. The Attorney General appreciates the fact that so many citizens have taken the time to express their views and thoughts on these important matters.
.
1996 HIPAA Violation – 1998 U.S. Attorney General and DHHS OIG ~ Volentary Disclousure Program: illegal denial of Covered T42CFR409.33 PostHospital Extended care Claims RICO
.
Subj: RE: US Attornies conceal Hospital HMO Insurance fraud
Date: 9/22/2005 1:47:54 PM Eastern Daylight Time
From: NewCase.ATR@usdoj.gov
To: LawISAmootIssue@aol.com
Sent from the Internet (Details)
Dear Ms. Kimball:
Thank you for contacting the Antitrust Division of the U.S. Department of Justice. Upon review of your email, we have determined that your complaint does not fall under the purview of the Division.
Thank you for your interest in the enforcement of federal antitrust laws, and we wish you the best in resolving your concerns.
Sincerely,
New Case Unit
Antitrust Division
.
( TSP ) G Fund ( gov SECurities investment fund ).
.
Subj: SEC Division of Enforcement Confirmation Reply
Date: 3/22/2006 9:23:48 AM Eastern Standard Time
From: enforcement@sec.gov
To: LawISAmootIssue@aol.com
Sent from the Internet (Details)
Dear Sir or Madam:
Thank you for your recent e-mail to the group electronic mailbox of the Division of Enforcement at the United States Securities and Exchange Commission in Washington, D.C. We appreciate your taking the time to write to us. This automated response confirms that the Division of Enforcement has received your e-mail. You can rest assured that an attorney in the Office of Internet Enforcement will review your e-mail promptly.
.
Subj: Out of Office AutoReply: MICHIGAN Felony HMO Hospital Insurance Fraud
Date: 1/1/2007 11:30:51 PM Eastern Standard Time
From: DOJ.PRAO@usdoj.gov
To: Kstbylite1@aol.com
Sent from the Internet (Details)
The office is closed and will re-open on Wednesday, January 3 at 9:00 a.m. If you are a Department of Justice attorney and have a question about professional responsibility during regular business hours, please contact PRAO via telephone at 202/514-0458. If you have an emergency inquiry or if the telephone lines are unavailable, you can call the Command Center at 202/514-5000 and a PRAO attorney will be contacted.
.
1996 HIPAA Violation – 1998 U.S. Attorney General and DHHS OIG ~ Volentary Disclousure Program: illegal denial of Covered T42CFR409.33 PostHospital Extended care Claims RICO
.
(1) the Number of Accounts
1. Federal Hospital Insurance (HI) Trust Fund Account
2. Health Care Fraud and Abuse Control Account
3. Federal Employee Retirement Trust Fund Account et al
4. MICHIGAN / OHIO General Trust Fund Account et al …..
.
2007 — H.R. 3199 – USA PATRIOT Conference Report (Sensenbrenner – Judiciary) (Subject to a Rule) (Sec. 4) Requires the ATTORNEY GENERAL, on an ANNUAL BASIS [ ILLEGAL IMMUNITY ], to submit to the House and Senate Judiciary Committees a report containing: (1) the Number of Accounts from which the Department of Justice (DOJ) has received VOLENTARY DISCLOUSURES [ 1998 DHHS OIG T42CFR417.1 misprison of felony T18CFR24Crimes ] of customer communications or records under provisions authorizing disclosure of the contents of electronic communications in Emergencies [ Federal Hospital Insurance Services ] INVOLVING IMMEDIATE DANGER OF DEATH OR SERIOUS PHYSICAL INJURY [ T42CFR417.1 DHHS Employee adverse determination: Anti-dumping Violations ]; and (2) a summary of the basis for voluntary disclosures to DOJ where the pertinent investigation was CLOSED WITHOUT the filing of CRIMINAL CHARGES ( 42CFR438.704 misprison of felony T18CFR286CRIMES: ALLOWING ~ OIG & U.S. Attorneys to conduct Federal HMO Hospital Insurance & HCFA State Medicaid kickback fraud, against American Citizens – COLOR of LAW ~ RICO: illegal kickback conversions – Anti-Dumping Violations Public Fraud ) Contact – THOMAS (Library of Congress)
.
Preditory Practice \ Criminal Misconduct
.
DHHS OIG News Release 21 Oct 1998
VOLENTARY DISCLOUSURE of Health Care Fraud
For Immediate Release Contact: ……………Judy Holtz (202) 619-0893
Wednesday, October 21,1998 ……………….Ben St.John (202) 619-1028
The ( DHHS OIG ) Department of Health and Human Services’s Office of Inspector General ( OIG ) today unveiled an expanded and simplified PROGRAM For ( Federal ) Health Care Providers to ‘Volentarily Report’ ( internal control / self-audit T42CFR417 adverse determination, grievance procedure: misprison of a felony / anti-dumping violation ) Fraudulent Conduct Affecting [ Entitled Individuals ] HCFA Medicare/Medicaid, and other ( OPM FEHBP,TRICARE,CHAMPVA ) Federal health care programs. The [ Federal ( OPM FEHBP T5CFR890.105 denial of covered claims: anti-dumping violation \felony ) HMO Contract ] Provider will have the option of doing ‘SELF-audit’ [ DHHS misprison of a felony T42CFR417 Anti-dumping violation ] in conformance ‘with OIG’.
.
1999 RULES & REGULATIONS Part IV DHHS OIG 42 CFR Part 1001 . Federal Health care Programs: [ OPM FEHBP,TRICARE,CHAMPVA,HCFA Medicaid\Medicare ]. Fraud & Abuse Anti Kickback Statutes Sect 1128B(b) of the Social Security Act provides criminal penalties for individuals [ DHHS employees ] or entities [ Federal HMO employees ] that knowingly & willfully [ DHHS & Federal HMO Employee T42CFR417.1 grievance procedure \ Anti-dumping Violation ] offer [ illegal medicaid application ], pay, solicit [ illegal medicaid application ], or recieve renumeration to induce [ Hospital DHHS ' discharge procedures': inducing forfiture T42CFR417 of Existing OPM FEHBP Hospital Insurance T42CFR409.33 to force criminal HCFA State Medicaid T42CFR409.33 kickback conversions ] the referral of business reimbursable under a Federal Health Care Program ( including Medicare & HCFA Medicaid ). Section 2 of the Medicare and Medicaid Patient & Program Protection Act of 1987 ( MMPPPA )
.
Subj: FBI Tip
Date: 10/4/2007 1:31:25 P.M. Central Daylight Time
From: fbitips1@leo.gov
To: JustmyOpnion@aol.com
Sent from the Internet (Details)
Dear Ms. Kimball,
THIS IS NOT AN AUTOMATED RESPONSE
Thank you for your submission to the FBI Internet Tip Line. After evaluating your information it is determined that you should contact you’re a private attorney of your choice.
.
1996 HIPAA Violation – 1998 U.S. Attorney General and DHHS OIG ~ Volentary Disclousure Program: illegal denial of Covered T42CFR409.33 PostHospital Extended care Claims RICO ~ continues ……..2008 RICO
.
Presidentially Appointed Inspectors General
Health and Human Services, Department of
The Honorable Daniel Levinson, Inspector General
Main Phone Number: (202) 619-3148
Mailing Address: 330 Independence Avenue, S.W.; Washington, D.C. 20201
Hotline Number: (800) HHS-TIPS; email: HHSTips@oig.hhs.gov
.
RICO 42CFR438.704 ~
.
[Federal Register: January 24, 2008 (Volume 73, Number 16)]
[Notices] [Page 4248-4249] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr24ja08-92]
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Office of Inspector General
Solicitation of Information and Recommendations for Revising the
Compliance PROGRAM guidance for Nursing Facilities [ T42CFR409.33 ]
AGENCY: Office of Inspector General (OIG), HHS.
ACTION: Notice.
SUMMARY:
This Federal Register notice seeks the input and
recommendations of interested parties as OIG revises the compliance
PROGRAM guidance (CPG) for Nursing Facilities, Especially those serving Medicare, Medicaid, and other [ OPM FEHBP, CHAMPVA,TRICARE ] Federal health care program [ ENTITLED Individual's ] Beneficiaries.
The nursing home industry has experienced a number of changes since OIG FIRST PUBLISHED a CPG in this area (65 FR 14289; March 16, 2000 ).<~~ RICO
Additionally, the subsequent years of enforcement and compliance activity in the Nursing Home Industry [ and the Judiciary Committee ] has ALLOWED OIG to address more fully the various risk areas in Nursing Home [ T42CFR409.33 ] compliance.
SUPPLEMENTARY INFORMATION:
The development of CPGs is a major
initiative of OIG in its effort to engage the private health care
industry in addressing and combating fraud and abuse. OVER THE PAST
SEVERAL YEARS, OIG has developed and issued CPGs directed at various segments of the health care industry. These guidances are DESIGNED [ T42CFR417.1 to coordinate Federal, State and Local Law Enforcement activities ~ 1998 CLINTON ADMINISTRATION Health Care Fraud and Abuse Control Program ~ RICO ~ VOLENTARY DISCLOUSURE 1996 HIPAA Violation ] to provide CLEAR DIRECTION and assistance to SPECIFIC sections of the health care industry that are interested in addressing compliance with Federal Health Care Program [ T42CFR409.33 ] requirements.
The CPGs set forth OIG’s suggestions on how ‘PROVIDERS CAN’ most
effectively establish ‘Internal Controls’ [ SELF-Audit T18CFR286CRIME ] and implement monitoring procedures [ T42CFR417.1 grievance procedures - misPrison of felony - anti-dumping violations ] to identify, correct, and prevent potentially Fraudulent Conduct.
OIG would appreciate specific comments, recommendations, and suggestions on risk areas for the nursing home industry, such as the submission of [ T42CFR417.1 Adverse Determinations ] FALSE CLAIMS, as well as QUALITY of CARE concerns, KICKBACKS, and accurate reporting of data to [ HCFA forced Medicaid conversions \ fraud by fright ] Medicare and Medicaid. Detailed justifications and empirical data supporting any suggestions would be appreciated.
Dated: January 16, 2008.
Daniel R. Levinson,
Inspector General.
[FR Doc. E8-1213 Filed 1-23-08; 8:45 am]
BILLING CODE ~~ 4150-04-P …. the Department of Health and Human Services (DHHS), the FBI and the Department of Justice.
.
9-110.800 Violent Crimes in Aid of Racketeering Activity (18 U.S.C. § 1959) Section 1959
.
2000 Nursing Facilities [ T42CFR409.33 ] ‘Internal Controls’ \ Adverse Determination \ Anti-dumping Violation ~ illegal agreement to induce forfiture and force illegal kickback conversions into other federal programs T18CFR371CRIME.
.
Subj: Fwd: ATTN: Marsha Albert/MS Griev -Reply T42CFR417.1
Date: 4/26/00 1:29:47 PM Eastern Daylight Time
From: MALBERT1@hapcorp.org (Marsha Albert) – Federal HMO Region 5 HCFA
To: Kstbylite1@aol.com
Denise, I’m sorry I did not respond to you earlier, however, if you can
please let Ms. Kimball know that this is not a grievance from any member
of the family. Actually, the Insurance Bureau of MIchigan [ OFIS ] wanted to find out if there were any QUALITY ISSUES involved [ ENTITLED Individual \ Retired OPM FEHB killed during the commission of a felony T42CFR417.1 grievance procedures \ denial of T42CFR409.33 Post-Hospital Care \ adverse determination T18CFR24crimes HIPAA ], while the mother, Alexandrea Rupert was at NIghtengale Nursing Home. WE ARE INVESTIGATING [ internal control \ Self-Audit HIPAA Violations ] the portion of the case with Our Quality Management Department. They will respond to ME [ Federal HMO Employee ] once their investigation is complete. ~ Criminal Misconduct ~ Federal HMO with DHHS OIG ~ internal control ~ illegal agreement to induce forfiture and conceal felony fraud against entitled individuals ~ Violation of Civil and Criminal Law.
.
1999 OPM FEHBP – Federal HMO Hospital Service Contract Provider – ABOVE THE LAW
Health Alliance Plan Detroit ( Region 5 HCFA ) MI HAP PROVIDERS offers 2,596 personal care physicians (PCP) and 4,901 specialists. HAP’s delivery system includes 45 hospitals ( inducing forfiture: T42sec417 ~ 1998 DHHS OIG VOLENTARY DISCLOUSURE Program: misprison of a felony: DHHS Employee Hospital discharge procedures: T42CFR417.1 Grievance Procedure, adverse determination: illegal denial of Existing OPM Hospital Insurance Services -administrative Fraud by Fright – anti-dumping violation ) in southeast Michigan and the Flint area, including 23 major hospital networks ( robbing the Elderly of 401k’s and savings accounts to Force Medicaid kickback Conversions -eligibility / Poor ), 65 urgent care centers and 765 ancillary providers: Hospital Affiliate Nursing Homes [ illegally Billing OPM FEHB for criminally Denied T42CFR409.33 COVERED Post-hospital Extended Care Claims CITE: 5CFR890.105, to force illegal HCFA State OFIS Medicaid kickback conversions ),mental health facilities, optical providers, laboratories, durable medical equipment providers,ambulance services and ~> Pharmacy Chains. [ Medicare Drug Bill - illegal solisitation ]
.
Crime Victims Rights ~ NONE ~ Title 9-110.100 Racketeer Influenced and Corrupt Organizations (RICO) On October 15, 1970, the Organized Crime Control Act of 1970 became law.
.
2003 Federal Budget Committee ~ Refinanced $130 Billion Dollars in ‘Volentary Discloused’ Health Care Fraud and Abuse AGAINST Entitled Federal Beneficiaries ~ Claiming it as increased costs of care for Retiring Babyboomers ‘ ~ RICO
.
Subj: Re: Health Alliance ( Hospital ) Insurance Fraud – DHHS T42CFR417.1 adverse determination Anti-dumping violation
Date: 2/21/2003 5:07:41 PM Eastern Standard Time
From: senator@stabenow.senate.gov (Senator Debbie Stabenow) D-MI
To: kstbylite1@aol.com
February 21, 2003
Thank you . . .
. . for contacting me about [ OPM FEHBP Hospital ] insurance & [ HCFA State OFIS Medicaid kickback ] fraud committed by [ Federal HMO ] Health Alliance Plan. I appreciate that you have taken the time to communicate your views and concerns with me. ( T18CFR1518 Obstruction of justice ). I understand your concern about this issue. Should related legislation ( medicare drug plan – November 2003 ) come before the U.S. Senate for a vote, I will keep your views in mind,
and share your thoughts on this issue with my colleagues who serve on the
Health, Education, Labor and Pensions Committee.
Thank you again for contacting me. Please feel free to contact me
whenever I can be of assistance to you or your family.
Sincerely,
Debbie Stabenow D-MI
United States Senator ~ Federal Budget Committee
.
Homeland Security and Governmental Affairs
Subj: Re: Your Concerns ~ OPM FEHBP Anti-Dumping \ Anti-Kickback ~ 1996 HIPPA RICO Violations
Date: 3/26/2007 1:16:37 PM Central Standard Time
From: senator_levin@levin.senate.gov
To: JustmyOpnion@aol.com
Sent from the Internet (Details)
Dear Mrs. Kimball:
Thank you for sharing your thoughts with me regarding HMO [ Hospital ] dumping. I will certainly keep your thoughts in mind should this issue come before the Senate.
Best wishes.
Sincerely,
Carl Levin D-MI
.
Domestic Terrorism ~ 1998 Volentary Disclousure Program ~ fraud resulting in death TARGETING T42CFR417.1 fraud by fright, Elderly Hospitalized American Citizens with Federal HMO Policies.
.
DHHS OIG has been conducting felony Hospital Insurance Fraud against Entitled Individual’s [ American Citizens ] with Federal HMO Policies. This Hospital Insurance Fraud robs Federal and State Trust fund accounts as well as their victims 401k’s and savings accounts, and results in death of the illegally denied Covered Federal Beneficiary and forces their Spouce into poverty
.
CRIMINAL PENALTIES FOR ACTS INVOLVING FEDERAL HEALTH CARE PROGRAMS SEC. 1128B. [42 U.S.C. 1320a-7b]
.
Office of Inspector General [ OIG ] an Independent Entity within the
Department of Justice ~ RICO
Mission Statement:
To Enforce the Law [ T18CFR24Crimes ~ 1996 HIPAA Violations ] and defend the interests of the United States According To The Law; to ensure public safety [ Public Health ] against threats foreign and Domestic [ 1998 DHHS OIG ~ RICO ~ Fraud & Abuse T42CFR417.1 VOLENTARY DISCLOUSURE Program: illegal denial of covered T42CFR409.33 post hospital extended care claims - Anti-dumping Violation, resulting in death ]; to provide Federal leadership in preventing and controlling crime; to seek just punishment for those [ color of law ] guilty of unlawful behavior; to administer and enforce the Nation’s immigration laws fairly and effectively; and to ensure fair and impartial administration of justice [ Rule of Law ] for All Americans.
.
Immunity = Above the Law ~ RICO ~ Cloture Motion; Foreign Intelligence Surveillance Act of 1978 – Vote Agreed to (80-15, 5 Not Voting) The Senate voted to take up this bill that would REWRITE electronic surveillance LAWS and GIVE legal IMMUNITY to telecommunication companies that provided intelligence-gatherers with customer information.
Sen. Carl Levin D-Michigan voted YES ~ Homeland Security & Gov Affairs
Sen. Debbie Stabenow D-Michigan voted YES ~ Federal Budget Committee
.
Sincerely,
All ENTITLED Federal Employee Health Beneficiaries & the General Public who are being criminally denied DHHS T42CFR417.1 Existing ( Federal \ State \ Private ) HMO Health Insurance Coverage, illegally billed for HMO denied covered claims and forced into HCFA State Medicaid Programs for the POOR. Title18CFR1001Crime. Kimberly Kimball MICHIGAN
November 11th, 2008 at 4:01 pm
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