February 19, 2009 by esarsea
The following article is a cut-and-paste copy taken from The Prophet of Wrath Blog by Sidney Allen Johnson. I thought it presented some interesting observations, and was worthy of further discussion by the BS crew. Thanks to Mr. Johnson for letting us borrow his work!
With the recession, and President Obama’s subsequent stimulus debacle dominating the media, recent revelations about the true origins of the financial crisis have been (deliberately?) ignored. Contrary to popular perception, the recession and the crisis in the financial markets are two separate and distinct events even though the effects of one affects the other. If you will recall, in September we were led to believe that a financial disaster was imminent. The President, at the urging of Treasury Secretary Henry Paulson, insisted that drastic action had to be taken immediately or the financial markets would collapse. The stock market plunged and trillions of dollars in value just evaporated. Therefore congress, in a rush, passed the 700 billion dollar bank bailout known as the Troubled Assets Relief Program (TARP). Although most of us “informed” citizens are aware of the long term root causes of the financial collapse (the Community Reinvestment Act and the toxic assets it spawned) this in and of itself would not have presented its effects as an emergency of such dire proportions. These assets had been fermenting for decades awaiting a flame to ignite them. Now the revelations are coming forth…
On Thursday 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. Money was being removed electronically.
The Treasury tried to help, opened their window and pumped in $150 Billion but quickly realized they could not stem the tide. We were having an electronic run on the banks. So they decided to closed down the accounts.- Rep. Paul Kanjorski (D) of Pennsylvania
In an interview broadcast on C-Span’s Washington Journal, Representative Kanjorski explained what the former Treasury Secretary and Federal Reserve Chairman Ben Bernanke told congress during the September 2008 closed door session. The meeting was held a few days after the electronic run on the banks on Monday September 15. The Thursday before, that Representative Kanjorski is referring to, was SEPTEMBER 11. Does that day have any significance to anyone??? He continued…
Had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawn and the entire economy of the United States would have collapsed, and within 24 hours the world economy would have collapsed.
So there you have the story, as it was told to President Bush and the congress. Action had to be taken quickly to stabilize the markets due to an electronic bank run. It also goes a long way to explaining why one of the first actions taken was to boost the FDIC deposit insurance up from $100,000 per depositor to $250,000. They were pre-empting a possible run on all banks in the event that word leaked out about what had happened.
In contemplating the timing of this event and the reaction of certain key figures, both before and after the electronic bank run, the obvious must be stated: THE FINANCIAL CRISIS WAS DELIBERATELY PLANNED AND DELIBERATELY EXECUTED!! Just who was it that initiated the bank run? The timing of the event, both in the deliberate choice of September 11 as the attack date and the proximity to a presidential election prohibit any realistic acceptance of a “coincidence.” Somebody took 550 billion dollars out of the banks. Even down here in Alabama we know that is a serious amount of money. The question is, who took it out? Why did they take it out? And of course…where is it now? Rest assured SOMEBODY knows!
All of those transactions produced records. You can be certain that all of this was investigated and fast. Yet no-one has revealed any information. Hell, if it weren’t for Representative Kanjorski we wouldn’t even now know that there was a run on the banks. Why is he now talking? Was the United States the victim of an economic terrorist attack? Certainly the choosing of the September 11 date for the bank run leads one to consider Islamic terrorism. However the extreme amount of money involved would eliminate any possibility of any known terrorist group, unless of course they were supported by a wealthy state with the economic resources to pull this off…Saudi Arabia anyone? Venezuela? The attack occurred at a time of surging oil prices, which just happens to financially benefit countries that would like to do the United States harm. The time would never be better for one of these known enemies to make their move. It is also rather telling how swiftly afterward world oil prices plummeted…U.S. economic counterattack?
Certainly we can see how this could have perplexed President Bush. Evidence suggests that the attack was, essentially, repulsed and perhaps the sudden drop in oil prices could have been a U.S. reprisal. However, you must ask yourself how the President would be able to present this to the American people? If he had suggested that the U.S. was attacked the American media, already swooning in their adoration of Barack Obama, would have accused him of playing the “terrorism” card. They would never have acknowledged the reality of such an attack and announcing it may have hurt John McCain’s chances even more than the subsequent stock market crash. Also, a significant part of Bush’s legacy rests on the fact that he prevented further terrorist attacks after September 11, 2001. Even though this was a different type of attack, he may have felt a desire to not acknowledge it publicly to preserve that impression.
It is clear that one of, if not THE, overriding motives for the attack was to influence the election results. If you will recall that in March of 2004 there was an Islamic terrorist attack in Madrid, Spain. This attack also was presented just before an election. It resulted in the appeasement party winning the elections and the government subsequently pulling Spanish troops out of Iraq and Afghanistan. This is exactly the result the terrorists were seeking.
If a bombing such as the one in Madrid were replicated in the United States, the result would almost certainly have been just the opposite. The country would have been, once again, wakened from the slumber that seven years of successfully preventing an attack had induced. John McCain, the tough military man, would have won in a landslide. By contrast, if you want to do something that will help Barack Obama…you have to hurt the economy. Remember Bill Clinton got elected by riding a minor recession and repeating the slogan: “it’s the economy, stupid.” Therefore it would need to be an attack on the U.S. economy that would have the effect of sending a democrat to the White House.
Interpreting the motive for the attack opens still more possibilities. I have thus far suggested that the most likely motive for striking the U.S. financial markets would be to alter the presidential election. It is not likely than an external adversary would have really suspected they could actually destroy the U.S, economy, nor would any country on earth benefit from such a result as we would take every other economy down with us. Therefore if influencing the election was the most reasonable motive for the attack we must also entertain another possibility…that the attack originated from elements WITHIN the United States.
A person, or group of people are absolutely within their rights to take money from their own accounts. It is 100% legal and can only be prevented by the government shutting down the market as it eventually did. We are told that as much as 5 trillion dollars would have been removed had they not interceded. How could they know that? That presumes that an uncontrollable panic involving large numbers of investors had to be involved. If this was designed as an action to induce a stampede of withdrawals then this would have had to be done in a way that was visible so the bank run could continue to build momentum on itself. Was this panic induced by several key investors who went out of there way to be seen withdrawing large amounts of money? Was it their intention to be noticed and subsequently have their actions followed and repeated by thousands of other investors? For it to work, it had to be noticed, observed and recorded. A record of all the withdrawals exists. Therefore the people who monitor such things, The Securities and Exchange Commission, has to be able to know, and most certainly does know, who was responsible. And yet we have been told nothing. Why?
One news story comes to mind immediately. It involves New York Senator Charles Schumer who is credited with initiating a run on the banks a short time before the financial attack of September 11, 2008:
OTS (Office of Thrift Supervision) announced Friday that it was taking over the $32 billion IndyMac and transferring control to the Federal Deposit Insurance Corporation – and the agency pointed the finger directly at Schumer for the failure, accusing him of sparking a bank run by releasing a letter that “expressed concerns about IndyMac’s viability.”
“In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts,” the OTS said in a statement announcing the California-based lender’s takeover. The statement included a quote from OTS Director John Reich saying, “Although this institution was already in distress, I am troubled by any interference in the regulatory process.”
Schumer’s letter on June 26 said he was “concerned that IndyMac’s financial deterioration poses significant risks to both taxpayers and borrowers.” – CNN
Charles Schumer is certainly no stranger to hardball partisan politics, so finding him entangled in a premeditated ploy to intimidate the public into voting democratic is hardly a surprise. As always George Soros’ name also comes up as a likely major player in this affair. After all, he does have the financial resources to initiate a panic and he likewise has a history of trying to use his vast wealth to interfere with government policy. You will recall that in 1992 he sold short more than $10 billion worth of British money thereby forcing The Bank of England to withdraw its currency from the European Exchange Rate Mechanism causing the pound sterling to be devalued. Soros earned an estimated 1.1 billion in the process. Of course George Soros is also a known supporter of various liberal causes including bankrolling the legal team currently trying to Railroad Al Franken into the Senate.
Once again we have to put ourselves in the position of President Bush. How can he possibly present this scenario to the public without himself being accused of trying to mislead the public? Who would have believed him if he had presented evidence that democratic supporters were sabotaging the economy in order to acquire a victory for themselves? Considering his approval ratings, he had almost no choice but to sit on the information. Even if he had released the names of all involved after the election it could have had a devastating effect on our population. But do we not need to know this? Should this be allowed to go unacknowledged? Should we not consider the penalty we must pay as a nation if we allow people to deliberately damage our economy just to further their own political objectives? And what of those political objectives? Considering the damnable stimulus bill they just rammed through the congress do we dare assume they have our best interests at heart? Perhaps President Bush let us down. This will come out, and its effects on the social order of our country will be catastrophic. This of course will be no problem for our current President who will use this impending threat to social order as an opportunity to consolidate more power. H.R. 645 anyone?
Before you write this off as making a worst case scenario out of the, thus far, limited revelations of a little known house member, it would be wise to consider the actions of both Barack Obama and John McCain at the time of the attack. If you will recall, John McCain famously suspended his campaign to return to Washington and lead the efforts that would result in the TARP bill. This put the first presidential debate in serious jeopardy of being canceled or delayed. What, pray-tell, did Barack Obama do? Insisting that the debates should go on as scheduled, he uttered one of his most infamous statements:
“There are times for politics, and then there are times to rise above politics and do what’s right for the country. And this is one of those times. It is going to be part of the president’s job to deal with more than one thing at once. I think there’s no reason why we can’t be constructive in helping to solve this problem and also tell the American people what we believe, and where we stand, and where we want to take the country. You know, what I’m going to do is, I’m going to — what I have told the leadership in Congress is that, if I can be helpful, then I am prepared to be anywhere any time.” – Barack H. Obama
Ahh, the the notorious “call me if you need me” line. Not the kind of reaction you expect from a presidential hopeful concerning a crisis of an uncertain nature. No, this is the kind of reaction you get from someone who figures things are going according to the plan. A plan that was designed entirely for his benefit. A plan that succeeded in making him the President of the United States. What wouldn’t a man such as this do to fulfill his ambitions? Dare we want to know what those ambitions portend?