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Tuesday, February 10, 2009

$550 Billion Disappeared in "Electronic Run On the Banks"

Congressman Kanjorski is the Chairman of the Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises. The original C-SPAN broadcast that took place on Thursday, January 27, 2009. Congressman Kanjorski explains how 550 billion dollars were drained from money market accounts in the United States during September 2008 in one hour.

This explains how close the US came to total collapse Sept 18, 2008. A Decrease in equity postions of the banks because other assets are going sour by the moment continues. He said as of Jan 27, 2009 we are not any better off that we were 3 months ago. Congressman Kanjorski is in a position to know what is really going on and now we do. These facts are just now comming out.

On C-Span, Rep. Paul Kanjorski (D-PA) explained how the Federal Reserve told members of Congress about an electronic run on the banks "to the tune of $550 billion dollars" within "an hour or two" Sept 18, 2008. According to Kanjorski, on September 18, 2008 the Fed tried to "stem the tide" by pumping money into the financial system but it didn't work and decided instead to announce an immediate increase in deposit insurance to $250,000 per account to stop the panic. Said Kanjorski: "If they had not done that, their estimation is that by 2 p.m. that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our
economic system and our political system as we know it."

The US economy if in a free fall and will collapse. Martial law will be the law of the land.

Actual 32 Min C-span Interview with Rep Kanjorski explaining what has really happened!

The crisis started many years ago with problems stemming from aggressive lending practices in the subprime mortgage market caused by US govenment liberal regulations and has spread to infect many other forms of credit, leading to a crisis that has subsumed three Wall Street investment banks and one of the world's largest insurers.

Acorn and Obama conceived this manufactured crisis. Many years ago with the destruction of the US economy in mind.

A money market account is a type of savings account offered by banks and credit unions just like regular savings accounts. The difference is that they usually pay higher interest, have higher minimum balance requirements (sometimes $1000-$­2500), and only allow three to six withdrawals per month. Another difference is that, similar to a checking account, many money market accounts will let you write up to three checks each month.

Mutual Fund Structure

True money market funds are not savings accounts but mutual funds. Instead of a bank loaning out your deposit and paying you part of the interest they earn, a money market fund actually uses your money to buy into a large pool of very short-term bonds. Depending on the type of money market fund, this pool of investments may include government bonds, corporate bonds, or municipal bonds.

Unlike most stock and bond mutual funds whose share price fluctuates, money market funds attempt to maintain a stable share price (also known as net asset value) of $1.00 per share. By keeping a stable share price of $1.00, investors get the sense that they can take out tomorrow what they put in today, with virtually no risk.

Money markets however, are not without risk. Since they ultimately represent a pool of assets owned by multiple investors, they are subject to a number of factors that could drive their share price below $1.00, creating a loss.

The largest factor that would likely contribute to a money market fund “breaking the dollar” barrier would be if enough of the assets in the underlying investment pool declined in value or became worthless. In other words, if the companies whose bonds the money market fund owns gets into financial trouble, those bonds will decline in value or become worthless. That in turn, causes each investor’s proportionate piece of the money market fund to also decline in value.

Another factor that might contribute to a loss in value is a rush on redemptions by the people invested in the money market fund. Since the majority of the money in a money market fund is invested in short-term bonds that mature at some point in the future, it’d create a major problem if a large number of investors wanted their money all at once.

Large simultaneous withdrawals could force a money market fund to sell some of its prior to their maturity date, which can also lead to a decline in the value. This can occur even in money market funds that only invest in U.S. Treasury securities, since the U.S. Treasury only backs securities held until maturity.

Remember, a money market fund is a mutual fund that is subject to loss because of conditions in the investment market, just like any other stock or bond mutual fund.

The US Government has now insured these mutual funds up to $250,00.00 because of the run on the electronic banks. This is only a band aid and will keep the collapse from happening for a few weeks only.

My advice. Have a weapon handy. Know how to use it. Store food supplies etc for 3 months. Listen to my talk radio show: Wed Feb 11 at 4PM Est for information about the comming economic collapse and what it could mean to me or you!

Manufactured Crisis Timeline

_ March 16. Bear Stearns Cos. is bought by JPMorgan Chase & Co. in a deal orchestrated by and backed up by the government following a sharp decline in shares and a collapse in confidence in the company.

_ July 11. Federal regulators seize IndyMac Bank after it succumbs to the pressures of tighter credit, tumbling home prices and rising foreclosures. IndyMac is the largest thrift ever to fail in the U.S. (A Senator from New york caused this bank to fail)

_ Sept. 7. In a bid to stabilize the nation's troubled housing market, the government seizes control of Fannie Mae and Freddie Mac, two publicly traded companies that together hold or guarantee about half the nation's mortgage loans.

_ Sept. 10. Lehman Brothers puts itself up for sale after reporting a $4 billion loss and says it will spin off its troubled commercial real estate assets.

_ Sept. 14. In a weekend of furious negotiations, U.S. regulators make it clear there will be no government bailout for Lehman Brothers. Fearful of fallout from a Lehman failure, Merrill Lynch & Co. arranges a hasty deal to be bought by Bank of America Corp.

_ Sept. 15. Lehman Brothers declares bankruptcy, the largest ever in the United States. Investor concerns turn next to American International Group Inc., a giant insurance company, after a plunge in that company's stock and downgrades to its debt by credit ratings agencies who say the slumping housing market could further undermine its finances.

_ Sept. 16. The U.S. government announces an $85 billion emergency loan to rescue AIG, saying a disorderly failure of the company could further disrupt already delicate financial markets and the economy.

_ Sept. 17. The Securities and Exchange Commission bans some aggressive forms of short-selling.

_ Sept. 18. The Federal Reserve and central banks in Europe and Asia pump up to $180 billion into money markets in a bid to free up a lending freeze between banks. Markets rally on hopes for a broader government rescue package. That night, Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke ask Congress for authority to rescue banks by buying bad assets from them.

_Sept. 19. Following a series of ad hoc measures, the U.S. government announces a broad rescue plan for the financial system, including a program to buy hundreds of billions of dollars of bad mortgages and other forms of toxic debt that have been weighing down U.S. financial companies. The Fed and Treasury Dept. shore up money market funds, which had also come under siege during the crisis, and the SEC temporarily bans short-selling — a way of betting that a stock will fall — against shares in 799 financial stocks.


Here are just a few of the Executive Orders associated with FEMA that would and will suspend the Constitution and the Bill of Rights. They just need the stroke of “any” Presidential pen… this should terrify you!
“Directive 51” probably overrides all this anyway.

EXECUTIVE ORDER 10990 allows the government to take over all modes
of transportation and control of highways and seaports.
EXECUTIVE ORDER 10995 allows the government to seize and control the
communication media.
EXECUTIVE ORDER 10997 allows the government to take over all
electrical power, gas, petroleum, fuels and minerals.
EXECUTIVE ORDER 10998 allows the government to take over all
food resources and farms.
EXECUTIVE ORDER 11000 allows the government to mobilize civilians
into work brigades under government supervision.
EXECUTIVE ORDER 11001 allows the government to take over all health,
education and welfare functions.
EXECUTIVE ORDER 11002 designates the Postmaster General to operate a
national registration of all persons.
EXECUTIVE ORDER 11003 allows the government to take over all airports
and aircraft, including commercial aircraft.
EXECUTIVE ORDER 11004 allows the Housing and Finance Authority to
relocate communities, build new housing with public funds, designate areas
to be abandoned, and establish new locations for populations.
EXECUTIVE ORDER 11005 allows the government to take over railroads,
inland waterways and public storage facilities.
EXECUTIVE ORDER 11051 specifies the responsibility of the Office of
Emergency Planning and gives authorization to put all Executive Orders
into effect in times of increased international tensions and economic or
financial crisis or about anything.
EXECUTIVE ORDER 11310 grants authority to the Department of Justice
to enforce the plans set out in Executive Orders, to institute industrial
support, to establish judicial and legislative liaison, to control all aliens, to
operate penal and correctional institutions, and to advise and assist the
EXECUTIVE ORDER 11049 assigns emergency preparedness function to
federal departments and agencies, consolidating 21 operative Executive
Orders issued over a fifteen year period.
EXECUTIVE ORDER 11921 allows the Federal Emergency
Preparedness Agency to develop plans to establish control over
the mechanisms of production and distribution of energy
sources, wages, salaries, credit and the flow of money in U.S.
financial institutions in any undefined national emergency. It also provides
that when a state of emergency is declared by the President, Congress
cannot review the action for six months, by LAW… but no doubt that could
be cancelled for “national security”.

So be peaceable, mind your own business, smile, don’t look into a combatant’s eyes, look at their belt, do not even suggest being confrontational, and realize that the world is changing. This is someone's idea of what to do if confronted by FEMA troops.

The best method for the average person to make it through is to be anonymous as much as possible. That means not exciting your controllers, having enough food and water and minding your own business. This is also someone's idea of how to survive. Considering the odds against a civilian and the FEMA military power I tend to agree. I do believe in protecting one's self as much as possible from thugs.

FEMA's enormous powers can be triggered easily. In any form of
domestic or foreign problem, perceived and not always actual, emergency powers can be enacted. “Any President” of the United States now has broad powers to declare martial law, which activates FEMA's extraordinary and terrifying powers, massive troops and equipment with a desire to carry out their mission. Just a very small example is the firing on U.S. citizens we saw in Katrina and the many ‘practice’ drills around the country for Controlling civil unrest.

Operation Trojan Horse is a program designed to learn the identity of potential opponents to Martial Law and includes gun owners and, right this minute, cell phones and computers are monitored. They know what your email says. Some programs lure potential protesters into public forums conducted by a "hero" of the people, like public figures who advocate survival training. They “allow” them to speak out, so they can record all who attend or listen. The lists of names gathered at such meetings and rallies are computerized and then targeted for the emergency. That means you will likely go to the Camps! It’s a tactic refined by other developing dictatorships. These men are totally sincere and are bold in their assertions, but the end result is that their actions cost many lives. We’re in a game difficult to win since the time to act was “years” ago and where, please, were you? We have what we have so deal with it and learn to survive.

There will be a government planned (or perhaps just allowed) executed event to trigger the FEMA and Homeland Security teams’ control of America, and it will happen very soon.

You will then be faced with the most important situation that will determine if you and your family will live or die. Basically it’s stored (and well hidden) foods and a water source.

Have warm clothes and hygiene basics. There will be a quite a few months or longer of transition where FOOD will be nearly impossible to get.

What I am advising, since electric and gas will likely be unavailable at times, is to buy as many hundreds of dollars of canned foods and other sealed things as possible from the items listed below. Buy all you can - scrape up the money, cash CD’s, borrow, or beg but get the money and do it now or your family will likely starve to death during the transition period. It will last
many months or longer. Your money will soon be worthless so don’t be concerned about the cost.

General suggestions: Canned chili is good as is baked beans. Beans are protein so will keep you alive if you add a little rice. Get several quart jars and sprouter lids and about 30 pounds of sprout seed/peas per person at minimum. They are packed with nutrients up to the 7th day, when the value decreases. You need the nutrients they provide. Buy many pounds each of alfalfa, radish, red clover, broccoli and mung seeds and especially lentils. If in cold
weather, keep the jars inside your coat next to your body. Sprouts are among the very best foods on earth. Survive, damn it! Buy lots of dried fruits, many big bags or boxes of dry milk, and lots and lots of nuts. Get 50 pounds of rolled oats per person (soak in water/w dry milk and honey and nuts), add molasses or honey, and you’ll have a great meal, but put in a teaspoon of oil. Buy some sugar and anything that doesn’t require cooking. If you can, get enough for a year or longer. Get a very good natural multiple vitamin for each person. If water is short in your area, buy a basement full of 5 gallon plastic cans and, if water is available, get a good gravity filter (British Berkefeld is best but there are several like it). Google ‘Gravity Fed Water Filters’. They make ‘any’ water good to drink.

We are apparently now in the final countdown towards the greatest warring meltdown in history. Yet few appear to be aware of what lies ahead. We are about to witness the end of the America that we were blessed with, and enter a WORLDWIDE age of tribulation and chaos that no one has experienced in living memory and never in history to such a massive scale. All this happened while we were buying big houses, getting the best car, watching TV, being sports fans, believing those in charge were taking care of us like babies and thinking the ‘vote’ really meant something. We are simply getting exactly what we allowed to happen yet still few believe we are going down the rabbit hole. Few have really cared but we will learn the hard lesson that there is no free lunch as we clearly believe.

It’s time to “DIG IN” a serious recommendation that is uncommon in American life which is to live together in small groups to share and take care of each other. Get over the silly American isolationism and needing your “space” mentality since things will shortly happen far beyond your experience and you’ll want/need supportive people to watch your back and share stored resources. I’m talking about combined living but not the buy some land and building small homes and be self sufficient and off the grid thing. This is both time consuming and very expensive and you don’t have time for that nonsense. That life is exciting and fun but the controlling troops will not share that opinion but will view your “survival compound” and YOU as rebels or budding Militia and you guess the rest. In my experience I’ve seen families and friends move into the same house, sharing all they had, providing comfort and support and managed much better than those going alone. It’s time to do these things. It’s also time to insure your long-term food supply and water source and if you live in northern areas be sure you have serious cold weather gear, sleeping bags, etc. as it’s very probable heat resources will be cut. Use your brain and imagine yourself in a distressing and frightening situation and ask if you are ready to go it alone. Think very carefully what you’ll really need and don’t be enticed by the many survival sites to buy things you’ll not use. Believe me, when this horror goes down you’ll be thankful to be squeezed in with others and have all the things you need. Prepare to be in for quite a while so learn tolerance of others and operate on consensus. This has been a bit longer coming than first indicated but be assured… the lion is at the door. He looks and talks like micky mouse.

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