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The Truth behind the Citigroup Bank “Nationalization”

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http://www.informationclearinghouse.info/article21318.htm

Colossal Financial Collapse

The Truth behind the Citigroup Bank “Nationalization”

By F. William Engdahl  (excerpted from the article)

On Friday November 21, the world came within a hair’s breadth of the most colossal financial collapse in history according to bankers on the inside of events with whom we have contact. The trigger was the bank which only two years ago was America’s largest, Citigroup. The size of the US Government de facto nationalization of the $2 trillion banking institution is an indication of shocks yet to come in other major US and perhaps European banks thought to be ‘too big to fail.’

November 25, 2008 “Global Research” — The clumsy way in which US Treasury Secretary Henry Paulson, himself not a banker but a Wall Street ‘investment banker’, whose experience has been in the quite different world of buying and selling stocks or bonds or underwriting and selling same, has handled the unfolding crisis has been worse than incompetent. It has made a grave situation into a globally alarming one.

‘Spitting into the wind’

A case in point is the secretive manner in which Paulson has used the $700 billion in taxpayer funds voted him by a labile Congress in September. Early on, Paulson put $125 billion in the nine largest banks, including $10 billion for his old firm, Goldman Sachs. However, if we compare the value of the equity share that $125 billion bought with the market price of those banks’ stock, US taxpayers have paid $125 billion for bank stock that a private investor could have bought for $62.5 billion, according to a detailed analysis from Ron W. Bloom, economist with the US United Steelworkers union, whose members as well as pension fund face devastating losses were GM to fail.

That means half of the public’s money was a gift to Paulson’s Wall Street cronies. Now, only weeks later, the Treasury is forced to intervene to de facto nationalize Citigroup. It won’t be the last.

Paulson demanded, and got from a labile US Congress, Democrat as well as Republican, sole discretion over how and where he can invest the $700 billion, to date with no effective oversight. It amounts to the Treasury Secretary in effect ‘spitting into the wind’ in terms of resolving the fundamental crisis.(end excerpt)

 http://www.informationclearinghouse.info/article21318.htm

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Also: William Engdahl’s book “Seeds of Destruction” is available under [Recommended Reading] in our links.

Advance planning by Bush & Paulson…….Executive Order #13456

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In January of this year, Bush signed Executive Order # 13456 allowing, permitting and encouraging the so-called [investment] in America by foreign agents, individuals and corporations.  Apparently trying to make sure he finished his father’s efforts to sell off the taxpayer funded and owned infrastructure to private interests, including foreigners, this EO makes clear the intent to divest America of all assets previously funded and paid for by US taxpayers, and the intention to offshore even more of our jobs and businesses to foreign investors. 

 

We are currently an estimated 10 to 70 TRILLION in debt as a nation.  As a country, we own less than 38% of all lands, and less than 42% of what were national assets. 

 

I have no doubt this EO was written with full knowledge of the planned collapse of our economy.  When reading through it, note the extensive powers already delegated to the Treasury Secretary…..many of which were promoted as new powers under the bailout package.

 

http://edocket.access.gpo.gov/2008/pdf/08-360.pdf

 

Friday, January 25, 2008

 

Executive Order 13456—Further

Amendment of Executive Order 11858

Concerning Foreign Investment in the

United States

 

 

 

Section 1. Amendment to Executive Order 11858. Executive Order 11858

of May 7, 1975, as amended, is further amended to read as follows:

 

‘‘FOREIGN INVESTMENT IN THE UNITED STATES

By the authority vested in me as President by the Constitution and the

laws of the United States of America, including section 721 of the Defense

Production Act of 1950, as amended (50 U.S.C. App. 2170), and section

301 of title 3, United States Code, it is hereby ordered as follows:

 

Section 1. Policy. International investment in the United States promotes economic growth, productivity, competitiveness, and job creation. It is the policy of the United States to support unequivocally such investment, consistent with the protection of the national security. (end excerpt)

 

Note:  In what is nothing less than a paragraph containing outright lies, we know that investment in the United States actually means the buying up of home mortgages, public lands, bridges, roads and other infrastructure. 

 

International investment kills jobs and does not create anything but devastation.  Competitiveness is not even a consideration as international investment is a tool for eradicating competitiveness.  Productivity is a term used to disguise the slave labor wages and work conditions of poorer countries where the businesses are relocated.  Paying non-livable wages to people who are unbelievably poor but who are forced to take the only work that may be available allows the investors to reap profits by sheer volume.  That’s not an increase in actual productivity, only an increase of people forced into slavery.

 

Reading through this entire EO, we find that [national security] is exposed for the fraud that it is. 

 

(2nd excerpt)……………….

 

(a) The functions of the President under subsections (b)(1)(A) (relating to review and consideration after notification),

 

(b)(1)(D) (relating to unilateral initiation of review and consideration), and

(m)(3)(A) (relating to inclusion in annual report and designation) of the Act are assigned to the Secretary of the Treasury.

 

(b) The Secretary of the Treasury shall perform the function of issuance of regulations under section 721(h) of the Act. The Secretary shall consult the Committee with respect to such regulations prior to any notice and comment and prior to their issuance. (end 2nd excerpt)

 

Note:

In this section, in preparation for the planned economic collapse, Paulson is given extraordinary powers as S.O.T.    Preparing the way for the wholesale divesting of American assets, Paulson is given the power to begin the selling off of infrastructure, financial and otherwise.  This will be accomplished by allowing his office to establish the rules and regulations under which this selling off will occur once the planned economic collapse takes place. 

 

Having gotten ten months head start, and knowing what was ahead, allowed Paulson to begin negotiations far in advance. 

 

Also note, every effort is made to avoid congress, or congressional approval.  The president claims [unilateral] authority to review and consider these sales of assets. 

 

We must work to end all Executive Orders!  And to expunge all those from the past which are known to be unconstitutional.

 

© 2008 Marti Oakley

 

 

Bailout Loot distribution is kept secret! BRASSCHECK TV/video

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Back to the market…

Remember the 750 billion that ex-Goldman Sachs CEO/ Us Treasury Secretary Hank Paulson said we needed to give to…Goldman Sachs and other banks to save the markets?

That worked well, didn’t it?

Where did the money go?

Hard to tell because parts of the minutes of the meetings set up to distribute the loot…I mean bail out funds…have been blacked out.

True story.

You couldn’t make this stuff up if you tried.

No one would believe it.

 

http://www.brasschecktv.com/page/457.html

The “Dirty Little Secret” Of the US Bank Bailout

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By Barry Grey

Excerpts from the full article located at: http://www.informationclearinghouse.info/article21116.htm

 

WSWS” — In an unusually frank article published in Saturday’s New York Times, the newspaper’s economic columnist, Joe Nocera, reveals what he calls “the dirty little secret of the banking industry”–namely, that “it has no intention of using the [government bailout] money to make new loans.” 

”27 October 2008 “

Early this month, he explains, “in a nearly unnoticed move,” Paulson, the former CEO of Goldman Sachs, put in place a new tax break worth billions of dollars that is designed to encourage bank mergers. It allows the acquiring bank to immediately deduct any losses on the books of the acquired bank.

Paulson and other Treasury officials have made public statements calling on the banks that receive public funds to use them to increase their lending activities. That, however, is for public consumption. The bailout program imposes no lending requirements on the banks in return for government cash.”

The Bailout…..Lipstick on a pig!

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The Senate’s 74-25 vote for Paulson’s Plunder came as no surprise, since the Senate is run by and for millionaires. So now it’s back to the House of Representatives, where we shocked those millionaires on Monday by defeating their bailout bill by 228-205.

A terrified army of corporate lobbyists is working around the clock to switch 13 votes, but only 7 have switched so far – Jim Ramstad (R-MN), John Shadegg (R-AZ), Zach Wamp (R-TN), Ileana Ros-Lehtinen (R-FL), Shelley Berkley (D-NV), Emanuel Cleaver (D-MO) and John Lewis (D- GA). Other possible switches include Pat Tiberi (R-OH), Pete Hoekstra (R-MI), John Yarmouth (D-KY), Brian Bilbray (R-CA), Steve Rothman  (D-NJ), Lee Terry (R-NE), Jim Gerlach (R-PA), Tim Murphy (R-PA), Jason Altmire (D-PA), and Gabrielle Giffords (D-AZ). But others may switch from Yes to No, including Ed Markey (D-MA), Charlie Melancon (D-LA), and Spencer Bachus (R-AL).

Bush’s first Treasury Secretary, Paul O’Neill, called Paulson’s plan “crazy” and “lunacy” with potentially “awful” consequences for the world’s largest economy. Many of the best economists agree with O’Neill. Paulson’s strongest supporters – including panicked CNBC hosts – now admit it will not raise stock prices or boost the economy as it falls into recession. Then why on earth should we give $700 $850 billion of our tax dollars to Wall Street??? Joe Lieberman gave away the real game when he told FOX ” it will be good for John McCain.”

With so much at stake, Congress should  stay in session for another week (or two) to pass a much better (and cheaper!) plan proposed by Pete DeFazio (D-OR). But Congress desperately wants to go home so Friday may be our last chance to stop this $850 billion disaster .

(1) Call your Representative today!
First check how your Representative voted on Monday (and note switches above):
http://clerk.house.gov/evs/2008/roll674.xml
If (s)he voted NO, say “Thank you for helping stop the Bailout on Monday. Don’t betray us now by voting YES on Friday, or I will vote NO against you on Election Day.”
If (s)he voted YES, say “I’m outraged that you supported the Bailout on Monday, and I will remember on Election Day. If you want my vote on Election Day, you must vote NO on Friday.”

(2) Join or organize a street protest against the bailout:
http://bailoutmainstreet.com/

(3) We’re also partnering with Progressive Democrats of America and USAction/TrueMajority to schedule local meetings with our Representatives to demand a Fair Deal for Main St . If you’d like to help,

For inspiration, watch this great video from Agit-Pop:
http://www.youtube.com/watch?v=vTkcLvm4ZYE

Find more information and comment here:
http://www.democrats.com/friday-last-chance-to-stop-paulsons-plunder

Thanks for all you do!

________________

Republicans Blame OBAMA for Wall Street Meltdown – Help Us Fight Back!

Even before the House voted on Monday, the Republican National Committee broadcast an outrageous TV ad blaming Barack Obama for the Wall Street Meltdown:
http://www.youtube.com/watch?v=u9j_epTmr2c

Our friends at Agit-Pop produced a rapid response 30-second ad that places blame for the meltdown exactly where it belongs, namely  Bush-McCain economics :
http://www.youtube.com/watch?v=N6uS0Eb2JDY

We don’t have Wall Street millions to put this ad on the air, but we have you so please forward this 30-second ad to everyone you know!

Find more info and comment here:
http://www.democrats.com/gop-blames-obama-for-paulson-plunder

________________

Election Day Countdown: 39 Days

If you want a real scare, watch this video nightmare about Election Night 2008:
http://www.youtube.com/watch?v=EzuIHjQYW2c

If you don’t want that nightmare to come true, visit:
http://www.voteforchange.com/

 

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