THE IMPERIAL PRESIDENCY
WorldNetDaily Exclusive
Don't agree with Obama? Get ready for IRS probe
Private group told review under way since work may 'contradict' president
By Bob Unruh
The Internal Revenue Service has delayed approval of tax-exempt status for a private organization and is reviewing its educational work, telling a lawyer for the foundation that it must be examined by Washington because its activities may "contradict the administration's public policies."
The allegation is contained in a federal lawsuit filed in the Eastern District of Pennsylvania by Z STREET, a Merion Station, Pa., group that educates on the statehood and status of Israel.
"Not only is it patently un-American but it is also a clear violation of the First Amendment for a government agency to penalize an organization because of its political position on Israel or anything else," said Z STREET president Lori Lowenthal Marcus, a former First Amendment lawyer.
Read the outline for putting America back on track, in "The Tea Party Manifesto" and "Taking America Back"
"This situation is the same as if the government denied a driver's license to people because they were Republicans or Democrats. It goes against everything for which our country stands."
Contacted by WND, IRS officials declined to comment on the publicly filed lawsuit or even say whether they would respond.
The complaint states that the organization was working with IRS Agent Diane Gentry, who had delayed a decision on its routine application for tax-exempt status for the educational organization.
"Agent Gentry further stated to counsel for Z STREET, 'these cases are being sent to a special unit in the D.C. office to determine whether the organization's activities contradict the administration's public policies,'" the lawsuit reports.
Tax-exempt status routinely is granted to many types of organizations in addition to churches. Charitable, scientific, literary and education purposes all qualify under the IRS code's Section 501(c)(3) and Marcus pointed out that the Council on American-Islamic Relations – which was an unindicted co-conspirator in the Holy Land Foundation terror financing case and lobbies heavily in Congress for its agenda – is granted the status.
Organizations not allowed to use the IRS code section are harmed because, donors are unable to deduct contributions from their taxable income, Z STREET argues in its complaint.
"The IRS's refusal to grant tax-exempt status to Z STREET has inhibited the organization's fundraising efforts, and therefore impeded its ability to speak and to educate the public regarding the issues that are the focus and purpose of Z STREET," according to the lawsuit.
The organization submitted its application Dec. 29, 2009.
Marcus told WND that Z STREET is working to educate the mainstream media and other outlets and present accurate information about the status of Israel as a nation.
She said she would like to know about the special policy of reviewing applications of organizations concerning Israel to see whether they align with the Obama policy.
"We want to know who approved it, what's the substance. Obviously we want to have it disappear," she said. "It's completely un-American."
She said the organization has met all of the requirements to be granted tax-exempt status. But the approval was delayed because of a "Special Israel Policy that requires greater scrutiny of organizations which have to do with Israel, in part to determine whether they espouse positions on Israel contrary to those of the current administration."
The organization affirms it is "a Zionist organization that proudly supports Israel's right to refuse to negotiate with, make concessions to, or appease terrorists."
"Z STREET's positions on Israel and, in particular, on the Middle East 'peace process' differ significantly from those espoused by the Obama administration," the organization said in a statement about the case.
The action names IRS Commissioner Douglas H. Shulman as defendant.
The group "was informed explicitly by an IRS agent on July 19, 2010, that approval of Z STREET's application for tax-exempt status has been at least delayed, and may be denied because of a special IRS policy in place regarding organizations in any way connected with Israel, and further that the applications of many such Israel-related organizations have been assigned to 'a special unit in the D.C. office to determine whether the organization's activities contradict the Administration's public policies.'"
"These statements … constitute an explicit admission of the crudest form of viewpoint discrimination, and one which is both totally un-American and flatly unconstitutional under the First Amendment," the complaint explains.
In an earlier commentary on American Thinker, Marcus explained the group is based on "these ironclad positions: The right of the Jewish people to a state, and the right of Jews to live freely anywhere, including inhaling oxygen in areas the world insists are reserved for Arab Palestinians."
It also "relish[es]" the terms "Jewish State" and "Zionism" and intends to circulate facts – "not deceptive 'Palestinian' narratives" – about the Middle East and Israel.
The organization reports members in more than 20 states and on five continents.
That "rising groundswell," she wrote, "is in part a response to organizations whispering into the ear of this U.S. administration that pervert the meaning of 'pro-Israel.' Their ultimate loyalty is to left-wing principles including a secular Israel and tolerance of terrorism only when directed at Jews. They are ashamed of an avowedly Jewish state, yet completely comfortable with 22 Muslim ones, and are actively seeking the creation of a 23rd, based in Jerusalem, whose governing documents call for the destruction of Israel.
"The idea that weakening Israel, either because of ideological conviction, animosity towards a strong Jewish state, cowardice, or the grossly misguided belief that compromise or dialoging with committed terrorists will lead to Middle East or global peace, is obscene," she wrote.
The lawsuit explains the website's positions "are supported by research, original documents, facts, and opinions from recognized academic and other knowledgeable sources, which sources are provided in its materials and on its website, and therefore, Z STREET’s activities are educational and charitable in nature."
The complaint explains the IRS agent "stated further that the method is not educational if it fails to provide: (a) a factual foundation for the viewpoint being advocated; or (b) a developed presentation of the relevant facts that would materially aid a listener or reader in a learning process. "
View Original Article With Links
Wednesday, September 1, 2010
Obama's new tax on...Rainwater!?
Americans For Prosperity
Would President Obama's Environmental Protection Agency really force Americans to pay a tax on "rainwater runoff" from homes and small businesses?
You bet they would. In fact, the EPA, under radical environmentalist Lisa Jackson, is proposing regulations to do just that.
Take a look at the EPA's own Federal Register filing, where the EPA generally describes the initiative it's proposing:
...requirements, including design or performance standards, for stormwater discharges from, at minimum, newly developed and redeveloped sites. EPA intends to propose regulatory options that would revise the NPDES regulations and establish a comprehensive program to address stormwater discharges from newly developed and redeveloped sites and to take final action no later than November 2012. (Source)
This is bureaucratic-speak for having the EPA force cities and counties to limit stormwater runoff to levels the EPA deems acceptable. Limiting "rainwater runoff" will mean forcing homeowners and businesses to pay new taxes in order to rein in rainwater, and that's no pun intended.
Think about just how big-government this is. A Washington, D.C. bureaucracy plans on forcing your local county or city to slap new taxes on you and me because this big-government bureaucracy wants to micro-manage rainwater across the entire country. Already, several counties and cities across the United States are moving to pass new taxes and fees in anticipation of the new EPA rules, including cities in states as disparate as Florida, Ohio and Kansas. For more details CLICK HERE
But really, this new EPA outrage is part of the pattern of the Obama Administration. Cap-and-trade is bogged down for now in the Senate (though they'll try to bring it back this year), so the liberals try to use an un-elected bureaucracy to pass their radical agenda. First, they declared that greenhouse gases are a "threat" to the environment and to health, so they're pushing new regulations that will in effect pass cap-and-trade without Congress having to act. Now, they're pushing this new "rainwater runoff" tax.
Just last month, Americans for Prosperity launched a national effort to stop this big government over-reach by the EPA. We're calling it the Regulation Reality Tour™, and we launched it in Arkansas with events across the state. Click HERE for photos. On April 19 we will begin the second leg of our tour in Colorado, with a third leg launching in Indiana and Ohio in early May. I hope to see you on the road as we take on Obama's EPA!
Our goal is simple: educate Americans on the threat to their freedoms and our economy from the EPA's arrogant, nutty agenda. The EPA's head, Lisa Jackson, attended the Climate Change conference in Copenhagen where she stated her intention to "transform" the way the American economy works using her bureaucracy. I was there in the room and heard her say it.
EPA is such a runaway bureaucracy at this point that only Congress can stop them. Thankfully, Alaska Senator Lisa Murkowski has a proposal to do just that. Murkowski has a resolution of disapproval—which would stop EPA in its tracks—that has been gathering steam, but we need your help to put her over the top. CLICK HERE to take action and tell your senators to support S.J.Res. 26. Make sure they know you will hold them accountable if they don't help pass Murkowski's resolution. Any lawmakers who won't stand up to stop the EPA are complicit in the onerous regulations they are trying to pass.
Spring is here. All things begin anew. And that includes renewing the fight for our freedoms.
PS: I just finished a father/son trip with my 16-year-old twin boys. It was great fun. On the airplane especially, my sons talked about what they wanted to do in the years to come. Hearing them talk about their futures, I was reminded of something Ronald Reagan said – freedom is never more than one generation from extinction. As usual, President Reagan was right. Let's make sure we keep doing our part to ensure that our generation passes on to our children and grandchildren the same freedoms we enjoyed.
Please click here to contact your senators and tell them to stop the EPA.
Read Original With Links
Would President Obama's Environmental Protection Agency really force Americans to pay a tax on "rainwater runoff" from homes and small businesses?
You bet they would. In fact, the EPA, under radical environmentalist Lisa Jackson, is proposing regulations to do just that.
Take a look at the EPA's own Federal Register filing, where the EPA generally describes the initiative it's proposing:
...requirements, including design or performance standards, for stormwater discharges from, at minimum, newly developed and redeveloped sites. EPA intends to propose regulatory options that would revise the NPDES regulations and establish a comprehensive program to address stormwater discharges from newly developed and redeveloped sites and to take final action no later than November 2012. (Source)
This is bureaucratic-speak for having the EPA force cities and counties to limit stormwater runoff to levels the EPA deems acceptable. Limiting "rainwater runoff" will mean forcing homeowners and businesses to pay new taxes in order to rein in rainwater, and that's no pun intended.
Think about just how big-government this is. A Washington, D.C. bureaucracy plans on forcing your local county or city to slap new taxes on you and me because this big-government bureaucracy wants to micro-manage rainwater across the entire country. Already, several counties and cities across the United States are moving to pass new taxes and fees in anticipation of the new EPA rules, including cities in states as disparate as Florida, Ohio and Kansas. For more details CLICK HERE
But really, this new EPA outrage is part of the pattern of the Obama Administration. Cap-and-trade is bogged down for now in the Senate (though they'll try to bring it back this year), so the liberals try to use an un-elected bureaucracy to pass their radical agenda. First, they declared that greenhouse gases are a "threat" to the environment and to health, so they're pushing new regulations that will in effect pass cap-and-trade without Congress having to act. Now, they're pushing this new "rainwater runoff" tax.
Just last month, Americans for Prosperity launched a national effort to stop this big government over-reach by the EPA. We're calling it the Regulation Reality Tour™, and we launched it in Arkansas with events across the state. Click HERE for photos. On April 19 we will begin the second leg of our tour in Colorado, with a third leg launching in Indiana and Ohio in early May. I hope to see you on the road as we take on Obama's EPA!
Our goal is simple: educate Americans on the threat to their freedoms and our economy from the EPA's arrogant, nutty agenda. The EPA's head, Lisa Jackson, attended the Climate Change conference in Copenhagen where she stated her intention to "transform" the way the American economy works using her bureaucracy. I was there in the room and heard her say it.
EPA is such a runaway bureaucracy at this point that only Congress can stop them. Thankfully, Alaska Senator Lisa Murkowski has a proposal to do just that. Murkowski has a resolution of disapproval—which would stop EPA in its tracks—that has been gathering steam, but we need your help to put her over the top. CLICK HERE to take action and tell your senators to support S.J.Res. 26. Make sure they know you will hold them accountable if they don't help pass Murkowski's resolution. Any lawmakers who won't stand up to stop the EPA are complicit in the onerous regulations they are trying to pass.
Spring is here. All things begin anew. And that includes renewing the fight for our freedoms.
PS: I just finished a father/son trip with my 16-year-old twin boys. It was great fun. On the airplane especially, my sons talked about what they wanted to do in the years to come. Hearing them talk about their futures, I was reminded of something Ronald Reagan said – freedom is never more than one generation from extinction. As usual, President Reagan was right. Let's make sure we keep doing our part to ensure that our generation passes on to our children and grandchildren the same freedoms we enjoyed.
Please click here to contact your senators and tell them to stop the EPA.
Read Original With Links
Global Collapse of the Fiat Money System: Too Big To Fail Global Banks Will Collapse Between Now and First Quarter 2011
by Matthias Chang
Global Research
Readers of my articles will recall that I have warned as far back as December 2006, that the global banks will collapse when the Financial Tsunami hits the global economy in 2007. And as they say, the rest is history.
Quantitative Easing (QE I) spearheaded by the Chairman of Federal Reserve, Ben Bernanke delayed the inevitable demise of the fiat shadow money banking system slightly over 18 months.
That is why in November of 2009, I was so confident to warn my readers that by the end of the first quarter of 2010 at the earliest or by the second quarter of 2010 at the latest, the global economy will go into a tailspin. The recent alarm that the US economy has slowed down and in the words of Bernanke “the recent pace of growth is less vigorous than we expected” has all but vindicated my analysis. He warned that the outlook is uncertain and the economy “remains vulnerable to unexpected developments”.
Obviously, Bernanke’s words do not reveal the full extent of the fear that has gripped central bankers and the financial elites that assembled at the annual gathering at Jackson Hole, Wyoming. But, you can take it from me that they are very afraid.
Why?
Let me be plain and blunt. The “unexpected developments” Bernanke referred to is the collapse of the global banks. This is FED speak and to those in the loop, this is the dire warning.
So many renowned economists have misdiagnosed the objective and consequences of quantitative easing. Central bankers’ scribes and the global mass media hoodwinked the people by saying that QE will enable the banks to lend monies to cash-starved companies and jump start the economy. The low interest rate regime would encourage all and sundry to borrow, consume and invest.
This was the fairy tale.
Then, there were some economists who were worried that as a result of the FED’s printing press (electronic or otherwise) working overtime, hyper-inflation would set in soon after.
But nothing happened. The multiplier effect of fractional reserve banking did not take off. Bank lending in fact stalled.
Why?
What happened?
Let me explain in simple terms step by step.
1) All the global banks were up to their eye-balls in toxic assets. All the AAA mortgage-backed securities etc. were in fact JUNK. But in the balance sheets of the banks and their special purpose vehicles (SPVs), they were stated to be worth US$ TRILLIONS.
2) The collapse of Lehman Bros and AIG exposed this ugly truth. All the global banks had liabilities in the US$ Trillions. They were all INSOLVENT. The central banks the world over conspired and agreed not to reveal the total liabilities of the global banks as that would cause a run on these banks, as happened in the case of Northern Rock in the U.K.
3) A devious scheme was devised by the FED, led by Bernanke to assist the global banks to unload systematically and in tranches the toxic assets so as to allow the banks to comply with RESERVE REQUIREMENTS under the fractional reserve banking system, and to continue their banking business. This is the essence of the bailout of the global banks by central bankers.
4) This devious scheme was effected by the FED’s quantitative easing (QE) – the purchase of toxic assets from the banks. The FED created “money out of thin air” and used that “money” to buy the toxic assets at face or book value from the banks, notwithstanding they were all junks and at the most, worth maybe ten cents to the dollar. Now, the FED is “loaded” with toxic assets once owned by the global banks. But these banks cannot declare and or admit to this state of affairs. Hence, this financial charade.
5) If we are to follow simple logic, the exercise would result in the global banks flushed with cash to enable them to lend to desperate consumers and cash-starved businesses. But the money did not go out as loans. Where did the money go?
6) It went back to the FED as reserves, and since the FED bought US$ trillions worth of toxic wastes, the “money” (it was merely book entries in the Fed’s books) that these global banks had were treated as “Excess Reserves”. This is a misnomer because it gave the ILLUSION that the banks are cash-rich and under the fractional reserve system would be able to lend out trillions worth of loans. But they did not. Why?
7) Because the global banks still have US$ trillions worth of toxic wastes in their balance sheets. They are still insolvent under the fractional reserve banking laws. The public must not be aware of this as otherwise, it would trigger a massive run on all the global banks!
8) Bernanke, the US Treasury and the global central bankers were all praying and hoping that given time (their estimation was 12 to 18 months) the housing market would recover and asset prices would resume to the levels before the crisis. .
Let me explain: A House was sold for say US$500,000. Borrower has a mortgage of US$450,000 or more. The house is now worth US$200,000 or less. Multiply this by the millions of houses sold between 2000 and 2008 and you will appreciate the extent of the financial black-hole. There is no way that any of the global banks can get out of this gigantic mess. And there is also no way that the FED and the global central bankers through QE can continue to buy such toxic wastes without showing their hands and exposing the lie that these banks are solvent.
It is my estimation that they have to QE up to US$20 trillion at the minimum. The FED and no central banker would dare “create such an amount of money out of thin air” without arousing the suspicions and or panic of sovereign creditors, investors and depositors. It is as good as declaring officially that all the banks are BANKRUPT.
9) But there is no other solution in the short and middle term except another bout of quantitative easing, QE II. Given the above caveat, QE II cannot exceed the amount of the previous QE without opening the proverbial Pandora Box.
10) But it is also a given that the FED will embark on QE II, as under the fractional reserve banking system, if the FED does not purchase additional toxic wastes, the global banks (faced with mounting foreclosures, etc.) will fall short of their reserve requirements.
11) You will also recall that the FED at the height of the crisis announced that interest will be paid on the so-called “excess reserves” of the global banks, thus enabling these banks to “earn” interest. So what we have is a merry-go-round of monies moving from the right pocket to the left pocket at the click of the computer mouse. The FED creates money, uses it to buy toxic assets, and the same money is then returned to the FED by the global banks to earn interest. By this fiction of QE, banks are flushed with cash which enable them to earn interest. Is it any wonder that these banks have declared record profits?
12) The global banks get rid of some of their toxic wastes at full value and at no costs, and get paid for unloading the toxic wastes via interest payments. Additionally, some of the “monies” are used by these banks to purchase US Treasuries (which also pay interests) which in turn allows the US Treasury to continue its deficit spending. THIS IS THE BAILOUT RIP OFF of the century.
Now that you fully understand this SCAM, it is left to be seen how the FED will get away with the next round of quantitative easing – QE II.
Obviously, the FED and the other central banks are hoping that in time, asset prices will recover and resume their previous values before the crisis. This is a fantasy. QE II will fail just as QE I failed to save the banks.
The patient is in intensive care and is for all intent and purposes brain dead, although the heart is still pumping albeit faintly. The Too Big To Fail Banks cannot be rescued and must be allowed to be liquidated. It will be painful, but it is necessary before there is recovery. This is a given.
Warning:
When the ball hits the ceiling fan, sometime early 2011 at the earliest, there will be massive bank runs.
I expect that the FED and other central banks will pre-empt such a run and will do the following:
1) Disallow cash withdrawals from banks beyond a certain amount, say US$1,000 per day; 2) Disallow cash transactions up to a certain amount, say US$10,000 for certain transactions; 3) Transactions (investments) for metals (gold and silver) will be restricted; 4) Worst-case scenario – the confiscation of gold AS HAPPENED IN WORLD WAR II. 5) Imposition of capital controls etc.; 6) Legislations that will compel most daily commercial transactions to be conducted through Debit and or Credit Cards; 7) Legislations to make it a criminal offence for any contraventions of the above.
Solution:
Maintain a bank balance sufficient to enable you to comply with the above potential impositions.
Start diversifying your assets away from dollar assets. Have foreign currencies in sufficient quantities in those jurisdictions where the above anticipated impositions are least likely to be implemented.
CONCLUSION
There will be a financial tsunami (round two) the likes of which the world has never seen.
Global banks will collapse!
Be ready.
View Original Article
Global Research
Readers of my articles will recall that I have warned as far back as December 2006, that the global banks will collapse when the Financial Tsunami hits the global economy in 2007. And as they say, the rest is history.
Quantitative Easing (QE I) spearheaded by the Chairman of Federal Reserve, Ben Bernanke delayed the inevitable demise of the fiat shadow money banking system slightly over 18 months.
That is why in November of 2009, I was so confident to warn my readers that by the end of the first quarter of 2010 at the earliest or by the second quarter of 2010 at the latest, the global economy will go into a tailspin. The recent alarm that the US economy has slowed down and in the words of Bernanke “the recent pace of growth is less vigorous than we expected” has all but vindicated my analysis. He warned that the outlook is uncertain and the economy “remains vulnerable to unexpected developments”.
Obviously, Bernanke’s words do not reveal the full extent of the fear that has gripped central bankers and the financial elites that assembled at the annual gathering at Jackson Hole, Wyoming. But, you can take it from me that they are very afraid.
Why?
Let me be plain and blunt. The “unexpected developments” Bernanke referred to is the collapse of the global banks. This is FED speak and to those in the loop, this is the dire warning.
So many renowned economists have misdiagnosed the objective and consequences of quantitative easing. Central bankers’ scribes and the global mass media hoodwinked the people by saying that QE will enable the banks to lend monies to cash-starved companies and jump start the economy. The low interest rate regime would encourage all and sundry to borrow, consume and invest.
This was the fairy tale.
Then, there were some economists who were worried that as a result of the FED’s printing press (electronic or otherwise) working overtime, hyper-inflation would set in soon after.
But nothing happened. The multiplier effect of fractional reserve banking did not take off. Bank lending in fact stalled.
Why?
What happened?
Let me explain in simple terms step by step.
1) All the global banks were up to their eye-balls in toxic assets. All the AAA mortgage-backed securities etc. were in fact JUNK. But in the balance sheets of the banks and their special purpose vehicles (SPVs), they were stated to be worth US$ TRILLIONS.
2) The collapse of Lehman Bros and AIG exposed this ugly truth. All the global banks had liabilities in the US$ Trillions. They were all INSOLVENT. The central banks the world over conspired and agreed not to reveal the total liabilities of the global banks as that would cause a run on these banks, as happened in the case of Northern Rock in the U.K.
3) A devious scheme was devised by the FED, led by Bernanke to assist the global banks to unload systematically and in tranches the toxic assets so as to allow the banks to comply with RESERVE REQUIREMENTS under the fractional reserve banking system, and to continue their banking business. This is the essence of the bailout of the global banks by central bankers.
4) This devious scheme was effected by the FED’s quantitative easing (QE) – the purchase of toxic assets from the banks. The FED created “money out of thin air” and used that “money” to buy the toxic assets at face or book value from the banks, notwithstanding they were all junks and at the most, worth maybe ten cents to the dollar. Now, the FED is “loaded” with toxic assets once owned by the global banks. But these banks cannot declare and or admit to this state of affairs. Hence, this financial charade.
5) If we are to follow simple logic, the exercise would result in the global banks flushed with cash to enable them to lend to desperate consumers and cash-starved businesses. But the money did not go out as loans. Where did the money go?
6) It went back to the FED as reserves, and since the FED bought US$ trillions worth of toxic wastes, the “money” (it was merely book entries in the Fed’s books) that these global banks had were treated as “Excess Reserves”. This is a misnomer because it gave the ILLUSION that the banks are cash-rich and under the fractional reserve system would be able to lend out trillions worth of loans. But they did not. Why?
7) Because the global banks still have US$ trillions worth of toxic wastes in their balance sheets. They are still insolvent under the fractional reserve banking laws. The public must not be aware of this as otherwise, it would trigger a massive run on all the global banks!
8) Bernanke, the US Treasury and the global central bankers were all praying and hoping that given time (their estimation was 12 to 18 months) the housing market would recover and asset prices would resume to the levels before the crisis. .
Let me explain: A House was sold for say US$500,000. Borrower has a mortgage of US$450,000 or more. The house is now worth US$200,000 or less. Multiply this by the millions of houses sold between 2000 and 2008 and you will appreciate the extent of the financial black-hole. There is no way that any of the global banks can get out of this gigantic mess. And there is also no way that the FED and the global central bankers through QE can continue to buy such toxic wastes without showing their hands and exposing the lie that these banks are solvent.
It is my estimation that they have to QE up to US$20 trillion at the minimum. The FED and no central banker would dare “create such an amount of money out of thin air” without arousing the suspicions and or panic of sovereign creditors, investors and depositors. It is as good as declaring officially that all the banks are BANKRUPT.
9) But there is no other solution in the short and middle term except another bout of quantitative easing, QE II. Given the above caveat, QE II cannot exceed the amount of the previous QE without opening the proverbial Pandora Box.
10) But it is also a given that the FED will embark on QE II, as under the fractional reserve banking system, if the FED does not purchase additional toxic wastes, the global banks (faced with mounting foreclosures, etc.) will fall short of their reserve requirements.
11) You will also recall that the FED at the height of the crisis announced that interest will be paid on the so-called “excess reserves” of the global banks, thus enabling these banks to “earn” interest. So what we have is a merry-go-round of monies moving from the right pocket to the left pocket at the click of the computer mouse. The FED creates money, uses it to buy toxic assets, and the same money is then returned to the FED by the global banks to earn interest. By this fiction of QE, banks are flushed with cash which enable them to earn interest. Is it any wonder that these banks have declared record profits?
12) The global banks get rid of some of their toxic wastes at full value and at no costs, and get paid for unloading the toxic wastes via interest payments. Additionally, some of the “monies” are used by these banks to purchase US Treasuries (which also pay interests) which in turn allows the US Treasury to continue its deficit spending. THIS IS THE BAILOUT RIP OFF of the century.
Now that you fully understand this SCAM, it is left to be seen how the FED will get away with the next round of quantitative easing – QE II.
Obviously, the FED and the other central banks are hoping that in time, asset prices will recover and resume their previous values before the crisis. This is a fantasy. QE II will fail just as QE I failed to save the banks.
The patient is in intensive care and is for all intent and purposes brain dead, although the heart is still pumping albeit faintly. The Too Big To Fail Banks cannot be rescued and must be allowed to be liquidated. It will be painful, but it is necessary before there is recovery. This is a given.
Warning:
When the ball hits the ceiling fan, sometime early 2011 at the earliest, there will be massive bank runs.
I expect that the FED and other central banks will pre-empt such a run and will do the following:
1) Disallow cash withdrawals from banks beyond a certain amount, say US$1,000 per day; 2) Disallow cash transactions up to a certain amount, say US$10,000 for certain transactions; 3) Transactions (investments) for metals (gold and silver) will be restricted; 4) Worst-case scenario – the confiscation of gold AS HAPPENED IN WORLD WAR II. 5) Imposition of capital controls etc.; 6) Legislations that will compel most daily commercial transactions to be conducted through Debit and or Credit Cards; 7) Legislations to make it a criminal offence for any contraventions of the above.
Solution:
Maintain a bank balance sufficient to enable you to comply with the above potential impositions.
Start diversifying your assets away from dollar assets. Have foreign currencies in sufficient quantities in those jurisdictions where the above anticipated impositions are least likely to be implemented.
CONCLUSION
There will be a financial tsunami (round two) the likes of which the world has never seen.
Global banks will collapse!
Be ready.
View Original Article
Subscribe to:
Posts (Atom)