Welcome to Call to Decision
Subject: Fwd: Freddie, Fannie, Fascism: Where was Congress?
Date: Tue, 16 Sep 2008 07:07:02 -0400
To: dumbdown00@yahoo.com
Joan, as usual, hits the nail square on the head. Yes, where
was Congress?
Excerpt follows, but read through to the end. Excerpt contains
very important information for most Americans who know nothing about
the Federal Reserve. I recall when I was on the local school
board's curriculum committee in the seventies I suggested our social
studies curriculum cover the Federal Reserve. The social
studies teacher agreed with me 100% and wanted to do so, but the
change agent superintendent managed to see that that never happened.
That's why Americans don't have the foggiest idea about the
following:
"The situation we are confronted with did not happen in the
last few years, but began in 1913 when a group of cunningly
deceitful legislators passed the Federal Reserve Act on December 24
at 11:45 p.m., after those who were opposed went home for Christmas.
The entire financial system of the U.S. was transferred from
Congress to a private corporation that is NOT accountable to
Congress. They create and destroy the business cycle by various
means: raising and lowering interest rates. The government of the
United States is in bondage to a group of individuals who own the
Federal Reserve. The reason why the American people cannot forgive
themselves the interest on our debt is because we do not owe it to
ourselves we owe it to the Federal Reserve! Every single time since
then that the Federal Reserve Act was amended, over 195 times, the
Federal Reserve gathered more power over various aspects of our
economy. However, they are in the final throes of stripping America
of any remaining vestiges of sovereignty as has been laid out in the
Treasury “Blueprint for a Modernized Financial Regulatory
System.”"
Also read The Creature from Jekyll Island, by Edward Griffin. Brilliant.
www.amazon.com/Creature-Jekyll-Island-Edward-Griffin/dp/0912986409 -
274k -
No wonder the powers that be didn't allow Ron Paul to have a fair
chance during the debates and throughout the primary period? He
was the only one who would discuss this issue. The rest of the
candidates laughed at him.
THE FINAL
DESTRUCTION OF THE MIDDLE CLASS
By Joan Veon
September
15, 2008
NewsWithViews.com
The Graet
2008 Transfer of Wealth
Americans
are confronted with what appears to be the worse economic situation
since the Great Depression. What will history say about the U.S.
credit crisis turned global financial crisis? At every turn investors
are faced with new problems, new crises, and less than desirable
solutions which include debt, deflation and a transfer of wealth.
With
regard to debt, the American taxpayer has been made the lender of last
resort for international bank Bear Stearns and now the two
Government-sponsored Enterprises-GSEs, Fannie Mae and Freddie Mac. On
top of the $29B for Bear Stearns, Fannie and Freddie’s debt of $5.4T
has been effectively transferred to the balance sheet of the USA. This
is equal to the entire publicly traded debt of the U.S. which is also
the same as the total of America’s mortgage-related assets. In
addition to personal debt, every American now has a financial
responsibility for Bear Stearns and Fannie and Freddie.
We, the
people, have saved the foreign investors such as China which owns
$376B, Japan which owns $228B, South Korea which owns $65B, Taiwan
which owns $55B, and Australia which owns $33B, from losing faith in
America. It is the stockholders, both common and preferred, that have
been given the raw end of the deal. While large financial institutions
such as JP Morgan, which owns $1.2B of Freddie and Fannie stock, said
a complete loss would only erase one or two months of profits,
contrast this to smaller banks such as the Central Virginia Bank in
Richmond which has $20M in shares of Freddie and Fannie. That type of
loss will put them in the same kind of trouble as Lehman Brothers, not
enough capitalization. There are 15 other banks that hold 10% or more
of their capital in shares of Freddie and Fannie.
The
Federal Accounting Standards Board is requiring more stringent
standards for banks and savings and loans to maintain a certain amount
of capital to protect against insolvency. Those rules are in the
process of being changed to conform to international rules issued by
the Bank for International Settlements in Basel, Switzerland which
Congress has voted on. These rules which were only to pertain to
international banks are now being applied to national banks.
Furthermore
those in retirement who thought their money was safe—invested in the
highest ranked bonds in the country are going to lose their dividends.
Depending on the price they invested, they could have principal losses
of up to 80 or 90% of their investment. Ouch.
The
credit crunch began a year ago when the various investment banks both
here and abroad stopped buying each others paper, a very uncommon
practice between them. As a result of no liquidity for mortgage paper
caused by their decision, we have the most serious slowdown in real
estate in decades. The decision to not buy mortgage paper includes the
sub-prime loans made to home buyers that had no down payment. To
relate, I recently met a young Latino who is worried about her home.
Five years ago she bought a $370,000 townhouse with $14,000 down. Her
interest rate varies causing her monthly payment to jump from $2700
per month to $3500. She cleans houses for a living.
Freddie
and Fannie decided they could make more money by buying subprime
mortgage paper. Today there is an eleven month inventory of unsold
homes. Higher interest rates as a result of the hidden clauses on
floating interest rates have put many people in jeopardy of
foreclosure. All of these problems have given the Federal Reserve the
opportunity to seize total control of powers they did not oversee in
order to protect our economy. Perhaps we should ask where the desire
to put poor people into homes came from? It was part of the Bush
Administration’s policy to conform to the United Nations’
Millennium Development Goals unveiled in the year 2000.
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Exacerbating
the credit crunch have been the historically high oil prices which
have caused pain at the gas pumps and a weak dollar which has made
imports more expensive. To counter high oil prices, Americans have
drastically reduced how many miles they drive and a number of buying
habits. In light of a tight job market and job losses in housing and
the automotive industries, we are confronted with higher energy costs
to heat and cool our homes, increased costs for food, and the
inability to refinance mortgages. Basically the economy is now in
deflation. When people stop spending, it moves from deflation to
stagflation—no matter how cheap an item becomes, people can’t
afford to buy. All this without knowing what the real fall out will be
from the bailout of Freddie and Fannie.
The
situation we are confronted with did not happen in the last few years,
but began in 1913 when a group of cunningly deceitful legislators
passed the Federal Reserve Act on December 24 at 11:45 p.m., after
those who were opposed went home for Christmas. The entire financial
system of the U.S. was transferred from Congress to a private
corporation that is NOT accountable to Congress. They create and
destroy the business cycle by various means: raising and lowering
interest rates. The government of the United States is in bondage to a
group of individuals who own the Federal Reserve. The reason why the
American people cannot forgive themselves the interest on our debt is
because we do not owe it to ourselves we owe it to the Federal
Reserve! Every single time since then that the Federal Reserve Act was
amended, over 195 times, the Federal Reserve gathered more power over
various aspects of our economy. However, they are in the final throes
of stripping America of any remaining vestiges of sovereignty as has
been laid out in the Treasury “Blueprint for a Modernized Financial
Regulatory System.”
The
Blueprint was written under the watchful eye of one of America’s
most successful international bankers, former Goldman Sachs CEO Hank
Paulson, who is now our illustrious Treasury Secretary. Is this not a
case of the fox in the chicken coup? Long time investment sage Marty
Whitman commented on his actions, “Paulson thinks he is in Russia
and is not giving any value to stockholders. It is outrageous that the
Treasury Secretary is not giving any consideration to the
shareholders.”
The
Blueprint calls for key components of our financial system, not
currently under Federal Reserve control, to be transferred to them. In
order to do this, a number of changes will be necessary which Congress
will have to approve. First, it recommends changing the banking
charter to include all financial institutions, thus effectively
transferring control over “national banks, federal savings
associations, and federal [and state] credit union charters.” For
your information, Washington Mutual is a savings and loan while Lehman
Brothers is and Bear Stearns was an international bank. The Fed is to
be given authority over the U.S. Payment and Settlement System thereby
controlling the settlement process for securities. It will be given
the role of Market Stability Regulator and it will have total control
over the market. The Blueprint provides for the entire mortgage system
of the U.S. to be federalized and to be under the control of the
Mortgage Origination Commission. The Federal Reserve will be part of
the Commission. Additionally the Federal Reserve will be given a say
in the insurance industry which will be federalized and a new Office
of Insurance Oversight will oversee its activities. The Federal
Reserve will have a place on the Insurance Oversight commission.
By the
time Congress votes on the Blueprint, there will be so many reasons
for them to transfer the last vestiges of our financial sovereignty to
the Federal Reserve that they will not even have to read the prepared
legislation. So far, we have the bailout of Freddie and Fannie by
giving Treasury a blank check to act; the Federal Reserve worked all
weekend to find a buyer to Lehman, another international bank, their
next project might be to rescue Washington Mutual, a savings and loan,
and the Fed has been given initial powers to act as the Market
Stability Regulator. The only component that is missing is the demise
of an insurance company, AIG anyone?
For the
record, at the heart of the Blueprint is changing our
financial/banking and securities regulatory system from a national
system to an international system to bring America into the world
governmental system that functions above the nation-states. I have
maintained that in order to get Congress to go along, we would have to
have a huge problem which would allow Congress to be convinced that
they need to act, however, the truth of the matter is they no longer
have the power they once had because the majority has been transferred
to the Federal Reserve.
History
will determine how the final stage was set but I believe it started in
2000 with the Crash of the Nasdaq. Who would have ever thought that a
stock would drop 90% in value? About $7T vanished from the balance
sheets of investors. But we did not have to worry, as a result of
9/11, the Federal Reserve started to reduce interest rates to 45 year
lows to get Americans to support the economy by buying the dream home.
We bit the bait. It was the Roaring 20s all over again. At one point
in the housing boom, one out of four jobs was created by the housing
industry. No one asked if they could afford the debt, they only asked
if they could afford the payment: a big difference. They did not ask
the right questions about their mortgage because the mortgage industry
was not required to disclose to them, when it should have. At one time
the mortgage industry was run on honesty and integrity, but that
changed too and people have been caught in a terrible snare.
The
Bailout of Freddie and Fannie provide us with the latest excitement in
the diabolical saga of the raping, robbing, and pillaging of America.
Interestingly enough it took place 13 months after the beginning of
the credit crunch. Lastly, I have maintained since the beginning of
the credit crunch last August that it was planned and managed
destruction in order to accomplish the final transfer of America’s
financial sovereignty. All of the above only confirms my original
suspicion. Sadly, only the strong will survive, only those who did not
use their house as a checking account will survive, only those who
turn to the Creator of the Universe, the Lord God who created heaven
and earth, and His Son, Jesus, will survive in the midst of the Great
2008 Transfer of Wealth.
© 2008
Joan Veon - All Rights Reserved
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Joan Veon
is a businesswoman and international reporter, who has covered over
100 Global meetings around the world since 1994. Please visit her
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