On Thursday, September 11, 2008, with the DJIA at 11,433.71 and John McCain leading Obama in the polls, an unprecedented amount of cash is electronically withdrawn from money market accounts, perhaps as much as $550 billion over a period of a few hours. (Some state the transactions occurred on September 18.) The unprecedented electronic run on the banks leads the Treasury Department to place a temporarily halt on withdrawals. Some speculate the withdrawals are part of an organized, orchestrated plan of economic terrorism to disrupt the American and world economy and lower the value of many banks and investment firms, making it easier for others to swoop down and purchase them at reduced prices, while also creating confusion, fear, and uncertainties to help elect Obama and make it easier to expand the role of government in socialist directions. The intentional run on the money market accounts has barely been publicized and, if it has been investigated, the results of the investigation have not been disclosed. Billionaire George Soros is among the buyers of the suddenly de-valued businesses. (While many investors are losing money, Soros makes an astounding $2.4 billion in 2008, much of it by betting on a rise in the price of oil and a collapse of the housing market. While most are losing 40 per cent of their 401(k) and IRA investments, Soros’ $17 billion Quantum Endowment Fund earns 32 per cent. His successes lead some to wonder if Soros was able to manipulate events for his purposes, as he had successfully done in the past with currency manipulations in Europe. For tax purposes, the Quantum Fund—like most Soros enterprises—is based outside the United States.) [1152, 1177, 1183, 1201, 1215, 1238, 1389, 1390]

Above source: http://www.colony14.net/id41.html

Rep. Paul Kanjorski (PA) on CSPAN

http://www.youtube.com/watch?v=pD8viQ_DhS4 (Transcipt below)

Jan 27, 2009  CSPAN

On Thursday Sept 11, 2008 at roughly 11 AM The Federal Reserve noticed a tremendous draw down of money market accounts in the USA to the tune of $550 Billion dollars in a matter of an hour or two. This is Rep. Paul Kanjorski’s (PA) account of this event to the CSPAN audience.

“…Here’s the facts, we don’t even talk about these things. On Thursday about 11:00 in the morning the Federal Reserve noticed the tremendous drawdown of money market accounts in the United States to the tune of $550 billion dollars….were being drawn out in matter of an hour or two. The Treasury opened up it’s window to help. They pumped a hundred and five billion dollars into the system and quickly realized they could not stem the tide. We were having an electronic run on the banks.”   “They decided to close the operation, closed down the money accounts and announce a guarantee of $250,000 per account so there wouldn’t be further panic out there. That’s what actually happened.”   If they had not done that, their estimations was that by 2:00 that afternoon five and a half trillion dollars would have been drawn out of the money market system of the United States…would have collapsed the entire economy of the United States and within 24 hours the world economy would have collapsed.   “Now we talked at that time what would have happened if that had happened? It would have been the end of our economic system and our political system as we know it and that’s why when they made the point, “we’ve got to act and do things quickly,” we did.”   “Now Secretary Paulson said let’s buy out the sub-prime mortgages. That’s when he came to Congress but he said, “give us latitude and large authority to do many things (as we decide necessary) and give us $700 billion dollars to do that.””   “Shortly after we enacted our bill with though very broad powers. The UK came out and said “NO”, “We don’t have enough money to buy toxic assets.” “We’re instead giving our money to banks so their equity grows and their not bankrupt. And so it…er…the UK started that process and that’s true. It was much cheaper to put more money in banks as equity investments than to start buying their bad assets because it became early determined that we’d have to spend 3 or 4 trillion dollars of taxpayer’s money to buy these bad assets. And we didn’t have…er…we only had 700 billion dollars.”   “So Paulson made a complete switch, went in and started putting money into buying securities and re-investing  in the banks of the United States.”   “Why? Because if you don’t have a banking system you don’t have an economy and although we did that it wasn’t enough money and as fast as we did that the economy has been falling and the reason last week  we’re really not better off today than we were three months ago. Because we’ve had a decrease in the equity positions of banks. Because other assets are going sour by the moment.”   “Now we’ve gotta make some decisions. Do we pour more money in? To what extent? That money might go in? I, myself think we ought to take the time and analyze where we are, have the people understand.”   “When you listen to the lady who just got off the telephone she is near panic and she doesn’t think her government is acting properly or acting in her behalf.”   “I think it’s important  that we start informing that lady as to what really were the facts, what happened and get input from her. Maybe she has a better idea. You know we’re not any geniuses in economics or finances anyway. We’re Representatives of the people. We ought to take our time but let the people know this is a very difficult struggle.”   “Somebody threw is iin the middle of the Atlantic Ocean without a life raft and we’re trying to determine which is the closest shore and if there is any chance in the world to swim that far.”   “We don’t know…”   <CSPAN video ends>

NOTE: Here is what a noted economist has to say about Rep. Kanjorski’s account:   “Folks, the government is operating in full panic mode.” Robert Wenzel - Editor & Publisher http://www.rw@economicpolicyjournal.com   “…If Bernanke stops printing, we're back in crash mode, if he continues printing at 20% rates, it's fierce inflation. Think about it, all the crooked adults are gone from the scene.The key Goldman Sachs players, Robert Rubin and Henry Paulson are gone. News came just yesterday that Goldman Sachs President and Co-Chief Operating Officer Jon Winkelried will retire effective March 31.”   “They are all crawling under rocks. They know what's coming. They have left as Treasury Secretary, a kid, who can't even get a press conference right. The president, even if given the benefit of the doubt that he is sincere, was brought up on socialist propaganda. He doesn't have a clue. The stimulus package is just the insiders raiding the till while there is still money in it.”   “Prepare for major financial turmoil, most likely inflation like you have never seen before. Judging by Bernanke's actions, the insiders have decided to go out Butch Cassidy and the Sundance Kid style, with the money pumps blasting.”         COMMENT: Since when does the UK dictate money policies of the United States? Who voted for theseUK banksters in any of the last elections?                     NOTE: A reader of the website named above made this comment: “Never forget that Congress passed legislation during the Clinton crime years that deliberately allowed these banks to engage in this financial chicanery, and that now Congress has voted to bail out these criminals ON YOUR DIME, while letting them go free with their golden parachutes, and refusing to charge them with any crimes at all.   I don't think I have to explain what the Founders of this country would do to these people if they were alive today. Are Americans totally gutless? How can a nation of 300 million people stand around sucking its thumbs and watching these crooks rob them, their children, their grand-children and their great-great-grand-children blind in broad daylight, and allow them to walk around upright, and continue to breathe this planet's air?   If the people of this country aren't prepared to do to these people exactly what they deserve to have done to them, the people of this country will deserve every goddamned thing they get. In spades.”                                                                       Have you heard of water-boarding? Well this is almost as bad...I call it RAPE BOARDING!

        On September 18, President Bush announces that the Securities and Exchange Commission (SEC) is stepping up its enforcement actions “against illegal market manipulation.” Bush does not elaborate on what those manipulations were, but one might suspect that Bush was referring to the $550 billion in money market withdrawals. On September 19, President Bush announces that the SEC has “…launched rigorous enforcement actions to detect fraud and manipulation in the market. Anyone engaging in illegal financial transactions will be caught and persecuted [sic].” It is unclear if Bush is referring to the money market withdrawals. The SEC announces, on the same day, a “sweeping expansion of its ongoing investigation into possible market manipulation in the securities of certain financial institutions.” [1215]

A few days later on September 24, 2008, Congressman Kanjorski questioned then Treasury Department Secretary Paulson during the House Financial Services Committee hearing to examine the future of financial services and explore solutions to the economic crisis.

See video at:

http://www.youtube.com/watch?v=IUZd-idfah4

PART II

Rep Alan Grayson grills Ben Bernanke

[Grayson] Thank you Mr. Chairman…Chairman Bernanke I’m looking at a report you’ve handed out this morning and I was wondering if you could take your copy and turn to page 26?   [Bernanke] Okay.   [Grayson] There’s a table on page 26 which consists of your balance sheet and one of the entries on the balance sheet is under assets is “Central Bank Liquidity Swaps” which shows an increase of from the end of 2007 from 24 billion to 553 billion dollars and change at the end of 2008…what’s that?   [Bernanke]  Those are swaps that were done with foreign central banks. Many … um…many foreign banks are short dollars and enter our markets looking for dollars and drive up interest rates and create volatility in our markets. What we have done is with a number of major Central Banks like the European Central Bank, for example, is we swap our currency “dollars” with their currency “Euros.” They take the dollars, lend them out to the banks in their jurisdiction. That helps bring down interest rates in the global market for dollars and meanwhile we’re not lending to those banks, were lending to the Central Bank. The Central Bank is responsible for repay us.   [Grayson] So who got the money?   [Bernanke] To Financial institutions in Europe and other countries.   [Grayson]  Which ones?   [Bernanke] I don’t know.   [Grayson] Half a trillion dollars and you don’t know who got the money?   [Bernanke] The loans go to… went to the central banks and then they put them out to their institutions to try to bring down short term interest rates in dollar markets around the world.   [Grayson] Well let’s start with which central banks, who got the money?   [Bernanke] There are 14 of them which are listed in our…er…I’m sure they are listed somewhere in here.   [Grayson] All right, so who actually made that decision to hand out a trillion dollars that way… er…half a trillion dollars …who made that decision?   [Bernanke] The Federal Marketing Committee.   [Grayson] Okay and was it done at one time or in a series of meetings?   [Bernanke] A series of meetings.   [Grayson] And under what legal authority?   [Bernanke]  We have a long standing legal authority to do swaps with other central banks… it’s not emergency authorization of any kind.   [Grayson] Anything specific about it?   [Bernanke] (Turns to legal Counselors) Do you know… My counsel say Section 14 of the Federal Reserve Act.   [Grayson] Alright, we actually looked at one of those arrangements and one of the arrangements is 9 billion dollars to New Zealand. That works out to $3,000 to every single person who lives in New Zealand. Seriously, wouldn’t it have been better to extend that kind of credit to Americans rather to New Zealanders?   [Bernanke] It’s not costing Americans anything we’re getting interest back and it comes back… and it’s not at cost to any American credit. We’re extending credit to Americans.   [Grayson] Well, couldn’t it…wouldn’t it necessarily affect the credit market if you extended half a trillion dollars in credit to anybody?   [Bernanke] We’re lending to all U.S. Financial institutions in the same way.   [Grayson] Well look at the next page, the very next page has the U.S. Dollar Nominal Exchange Rate which show a 20% increase in the U.S. Dollar Nominal Exchange Rate at exactly the same time that you are handing our a half trillion dollars to foreigners… do you think that is a coincidence?   [Bernanke] Yes.   [Grayson] (Laughter from Grayson) The Constitution says no money shall be drawn from the Treasury be in consequence to appropriations made by law.   [Bernanke] It’s drawn by the Treasury.   [Grayson] Let’s talk about that. Do you think it’s consistent with the spirit of that provision of the Constitution for a group like the FMOC to hand out a half trillion dollars to foreigners without any actions from this Congress?   [Bernanke] Congress approved it in the Federal Reserve Act.   [Grayson] When was that?   [Bernanke] Quite a longtime ago. I don’t know the exact date.   [Chairman Barney Frank} The Act was enacted 1914 I believe.   [Bernanke] I don’t know if this provision was in 1914 or not. But the Federal Reserve Act was in 1913.   [Grayson] Alright, and at that time the entire gross national product of this country was well under half a trillion dollars wasn’t it?   [Bernanke] I don’t know.   [Grayson] Would it be safe that nobody in 1913 contemplated that your small little group of people would decide to hand out half a trillion dollars to foreigners?   [Bernanke] This particular authority has been used numerous times over the years.   [Grayson] Well actually according to the chart on page 28, virtually the entire amount that reflected on your current sheet went out starting in the last quarter of 2007. And before that going back to the beginning of this chart the amount of lending was zero to foreigners is that…   [Bernanke] It was before the crisis that was part of the process of people…the central banks to try to get dollar money markets working normally in the global economy.   [Grayson] Alright, my time is very limited…   [Chairman Barney Frank] The gentleman’s time is expired.   <video ends>

(Mr. Grayson is about to do some major “behind-kickin”)                 Comment: This “Central Bank Liquidity Swaps” are when the FED (Central Bank of the US) took $550 billion dollars of American Taxpayers money out of circulation and deposited it in a Foreign Countries account. The account is maintained by the FED.   There is no profit to the American taxpayers, but this RAPE of the taxpayer “lines the banksters pockets with profits from high interests.”   Cut&paste this link to read about this swindle at: https://federalreserve.gov/monetary policy/ bstliquidityswaps.htm   Is’nt it odd that the $550 Billion Dollars “missing from in the electronic transfers in the panic of Sept 15, now magically show up on the asset sheets of the Federal Reserve?                                                   Don’t know? It’s on the Federal Reserve webpage! (See link just above) It says, “The FOMC has authorized through February 1, 2010, the arrangements between the Federal Reserve and each of the following central banks: the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Canada, Danmarks Nationalbank, the Bank of England, the European Central Bank, the Bank of Korea, the Banco de Mexico, the Reserve Bank of New Zealand, Norges Bank, the Monetary Authority of Singapore, Sveriges Riksbank, and the Swiss National Bank.                             It’s actually called the Federal Open Market Committee. Bernanke doesn’t know this?                         This is a bold face lie! Credit Swaps are NOT listed in Section 14 of the currently used version of the Federal Reserve System (or anywere else.) See for yourself: http://www.federalreserve.gov/aboutthefed/ section14.htm                                     That’s BS! If you take $550 Billion out of the American economy and horde it in a foreign countries bank account…the American citizens cannot use that cash within the American economy. IT IS PURE RAPE OF THE U.S. TAXPAYERS!                     Bravo! Mr. Grayson!                     YES? SPOKEN LIKE A TRUE INTERNATIONAL BANKSTER!                             ANOTHER LIE! SUCH CREDIT SWAPS ARE NOT AUTHORIZED BY THEVFEDERAL RESERVE ACT NOR CONGRESS!       Frank does know the date the Fed started raping Amerika? (1913)                                       Please show me where in the Federal Reserve Act it authorizes Credit Default Swaps to foreign banks!                     Huh?                   Mr. Frank and Mr. Bernanke, you both are MORONS (and crooks)!