Burnanke Saves Bear Stearns While Americans Live In Tents

After bailing out America's broke banks to the tune of $200 billion, the Federal Reserve turned their philanthropic eye to Bear Stearns, and they're not even a bank! In a similar exchange to the bank bailout, Bear Stearns traded worthless mortgage backed securities for Treasury notes.

The Fed, having pledged $30 million in Treasuries to the bankrupt firm, and $200 billion to the broke banks, now owns the homes of almost a quarter of a million Americans. Meanwhile, Illuminati controlled JP Morgan Chase just announced that they had bought Bear Stearns for a paltry $236 million.

And while most devastating to the working and middle class, even the wealthy are loosing their homes. Maryland recently reported that the total number of foreclosures this year alone equals 40% of all homes sold in 2006.

"The worst is yet to come," warned Eric S. Friedman, director of Montgomery County's Office of Consumer Protection. "A lot more adjustable-rate mortgages are going to be resetting in 2008 and 2009."

In a very real sense, the Federal Reserve has just perpetrated the biggest land grab in the last 100 years by trading worthless paper for real estate. Now good people, United States citizens, having been sold out by their government and stripped of their homes and property, must live in tents and shanties, while criminal, predatory bankers get rich and fat off of the sweat and effort of our country.

This is economic destruction and financial slavery. It has to stop. The press in this country are obviously propaganda outlets controlled by the Elite. Why else wouldn't they warn us? Why else would they omit such a serious breach and cover up the fact that their own countrymen are living outside?

Bernanke Gives Green Light To Tank Dollar

Today's news that the Federal Reserve Chairman will pump $200 billion into the banking industry, while creating a noticable uptick in the Dow, is rife with serious implications.

Once the giddiness wears off, the banks and brokerage firms will be saddled with such an astronomical amount of debt that this move can only be seen as another step in the "orderly decline of the dollar," which is the stated policy of the Bush Administration.

The aggregate bank reserves in the United States were aproximately -$17 billion. That means everything that the banks are using to show liquidity are debt instruments. Adding another $200 billion will not, as Bernanke claims, "promote liquidity," any more than it would to a consumer whos credit card company increased the limit just so that person could pay the bill.

This move also underscores the dangers banks are in, and the Feds move merely confirms that all banks are broke. If they are not propped up, they will fail immediately. The Feds move comes on the heels of an intended rate hike, and can only serve to debase the dollar even more.

Comming on the heals of Ex-Fed Chief Alan Greenspan's calls for OPEC to "de-peg" both it's currency and oil prices from the US Dollar, it seems the language and actions of the Bush Administration and the Federal Reserve, it seems their intentions are to ruin the American economy.

Just the aggregate bank reserves alone are a signal of doom, even without the addition of $200 billion, and is going to have the result of massive inflation. The floodgates have opened, and oil, gas, wheat, and corn, the basic neccesities of every American, now cost more, alot more.

Once We The People are bled dry, what next does the United States Federal Government have in store - martial law?

Banking Crisis - A Pretext For Martial Law?

The news is not good for banks as massive write downs of bad debt, as well as bank closings and mergers, threaten to undermine the financial stability of millions of Americans.
(article below)

There are a number of factors that point to a total failure of the banking industry, which in turn could signal an imminent run on the banks. The most recent FDIC report, given on March 4 before the Senate Banking Committee, while peppered with positive language, actually shows an alarming trend of writeoffs, writedowns, and a serious lack of actual cash assets backing the books of most of the nations major banks.

Whether or not these losses are against previous record gains is of little importance, as those "profits" are all on paper in the form of mortgage backed securities and Real Estate Investment Trusts (REITS).

These paper assets are devaluing not only due to mortgage defaults, but because the greater real estate market is seeing lower housing prices as well. This has created a "buyer's strike" in mortgage backed securities, making them worthless (The Washington Post). These are junk bonds; the banks are broke.

When the first big banks begin to close, we will see a run as people scramble to branches and ATM's nationwide in an effort to preserve their cash. Just the other day there was a letter in my mailbox from Wachovia Bank reassuring their customers that they would not close. Where did that come from? Why did they send it, I know I never asked?


PDD 51/ HPD 20

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Now for the really scary part. If there was a run on the banks, it would create an ideal pretext for the government to implement martial law as National Security Presidential Directive 51 and Homeland Security Presidential Directive 20, gives the President of the United States dictatorial powers in the event of a "catastrophic (economic) emergency."

According to the Directive, a ""Catastrophic Emergency," means any incident, regardless of location, that results in extraordinary levels of mass casualties, damage, or disruption severely affecting the U.S. population, infrastructure, environment, economy, or government functions."

A run on the banks certainly falls under the umbrella of this directive, authorizing the President to take control of all branches of the federal as well as state governments. While even a local emergency such as a natural disaster authorizes the President, at his sole discretion, to invoke the Directive, a bank run and economic panic would certainly qualify.

Could the engineered destruction of our banks and currency be the pretext for open tyranny? This isn't as far-fetched as it sounds as the federal government has repeatedly stated their intention to devalue the US dollar in the Directive while simultaneously promoting unsound fiscal policy.

With the authority to direct American troops against their fellow citizens, and a lame duck Congress at his beck and call, Bush has been able to effectively repeal the parts of the Insurrection Act and Posse Comitatus Act that forbids the use of the military within the United States against other Americans.

The John Warner Defense Authorization Act of 2007 , which gave the President the power to nationalize the State National Guards for domestic purposes, gives PDD 51 real teeth. For the first time since the Civil War, the nation could find itself shedding its own blood.

Taken together, these blatantly unconstitutional laws create a De Facto police state. By virtue of PDD 51 and the "John Warner National Defense Act", the executive branch has dictatorial powers that are completely repugnant to the United States Constitution.

Give a criminal a gun and they're inclined to use it. Should we expect an economic emergency?

Bernanke Admits The Obvious

The Fed chief's second day before Congress was rife with doublespeak and, quite frankly, it sounds like he's scared. Beginning with his comments that it's not inflation, but maybe stagflation, Bernanke shrugged of the notion that were seeing a repeat of the economic woes of the 1970's.

Compared to the 1970's, today's economy is downright scary. Is Bernanke hiding something, is he trying to avoid a panic? I'd say a little of both, considering the ominous warning today that we can expect bank closings See Article Below.

What's scary are the indicators. Yesterday's mere mention of a rate increase sent commodities up and the dollar down. These same indicators are through the roof, it's the perfect storm for disaster.

Obviously there's some market manipulation going on, but it seems like the sheer inertia of world financial pressures are taking their toll, and it is now unlikely that the manipulation of asset and debt prices can cover up the obvious - the worlds greatest economists would know that the loosening of credit, the influx of fiat currency, and the selling of debt as an asset and using debt to sell debt would ruin the US economy.

In fact, Bernanke admits as much when he acknowledges that "in this case the consumer is taking the brunt of the effect,” Link To Article Here and these comments echo sentiments the Fed, former Fed Chairman Alan Greenspan, and others have been saying for some time, that the goal of US economic policy, as President Bush stated in 2003 is "the orderly decline of the dollar."

Of course the wealthy know what's happening to their money, and major investors such as Warren Buffet and Jim Rogers are quietly shifting their assets out of dollar backed investments.
For the rest of us, there's always bugs and bread lines.