Radio Liberty Newsletter November 2008

Radio Liberty Newsletter
www.radioliberty.com

November 2008

THE FINANCIAL ELITE

Dear Friend of Radio Liberty,

"I have always said that the decline in the housing market is at the
root of the economic downturn and our financial market stress. And the
economy, as it slows further, threatens to prolong this decline...."
-- Henry Paulson, The New York Times, November 18, 2008[1]

"The Bush administration is backing away from proposals to have the
government refinance a broad swath of homeowners who face foreclosure
after taking out subprime mortgages and other high-risk loans over the
last few years."
-- Edmund Andrews, The New York Times, November 12, 2008[2]

"Banks have increased their reserve holdings on deposit with the Fed
from $8 billion to $494 billion. This is $488 billion more than the
Fed estimates they (commercial banks-ed) would ordinarily need to hold
for payment clearing and prudential purposes. Increased reserve
holding have absorbed perhaps half of the liquidity placed into the
banking system from the Fed."
-- Bob Chapman, The International Forecaster, November 15, 2008[3]

Every literate person knows that something is seriously wrong in the
United States today. Ten million Americans are unemployed, wages are
falling, millions of people have lost their homes, the economy is
contracting, many corporate pension programs are underfunded, state
and local governments are laying off workers, the U.S. automotive
industry is losing $2 billion a month, the financial structure of our
nation is faltering, and a number of major businesses have failed.

Circuit City is closing many stores.
Ann Taylor, a nationwide women's apparel chain, is closing 117 stores.
Lane Bryant, Fashion Bug, and Catherine's will close 150 stores.
Eddie Bauer is closing 27 stores, and more after January.
Cache is closing all stores.
Talbots is closing all stores.
J. Jill is closing all stores.
GAP is closing 85 stores.
Footlocker is closing 140 stores, and others after January.
Wickes Furniture is going out of business.
Levitz is closing all remaining stores.
Bombay furniture is closing all remaining stores.
Zales is closing 82 stores, and 105 other stores after January.
Whitehall is closing all stores.
Piercing Pagoda is closing all stores.
Disney is closing 98 stores, and more after January.
Home Depot is closing 15 stores.
Macy's will close 9 stores after January.
Linens and Things is closing all stores.
Movie Gallery is closing all stores.
Pacific Sunware is closing stores.
Pep Boys is closing 33 stores.
Sprint/Nextel is closing 133 stores.
JC Penny is closing a number of stores after January.
Ethan Allen is closing 12 stores.
Wilson Leather is closing all stores.
Sharper Image is closing all stores.
K B Toys is closing 356 stores.
LOWES is closing some stores.
Dillard's is closing some stores. [4]

Who is responsible for the current financial meltdown? Why didn't
Henry Paulson (CFR [Council on Foreign Relations] - BB [Bilderberger]
) try to stop the cascade of home foreclosures that is destroying our
economy? Why did Paulson transfer trillions of dollars to his friends
on Wall Street? What lies ahead?

If you try to understand the cause of the current financial meltdown,
you will discover there are many plausible explanations, and you will
become confused.

- Are the poor people who purchased homes they couldn't afford
responsible for the problem?
- Are the realtors who sold disadvantaged people homes they couldn't
afford responsible for the problem?
- Are the financial institutions that provided the Adjustable Rate
Mortgages that precipitated the crisis responsible for the problem?
- Are the members of Congress who enacted legislation (1977) that
required financial institutions to lend money to poor people
responsible for the problem?
- Are the Clinton administration officials who threatened to prosecute
financial institutions that didn't loan funds to poor people
responsible for the problem?
- Are the property appraisers who routinely increased the value of
homes responsible for the problem?
- Are the financial institutions (like Goldman Sachs, Bank of America,
and Citigroup) that bundled sub-prime and Alt-A mortgages into CDOs
(Collateralized Debt Obligations) responsible for the problem?
- Are the investment banks and megainsurance companies that wrote
unfunded derivative contracts that insured the subprime ladened CDOs
responsible for the problem?
- Are the rating companies (Moody, and Standard & Poor) that gave the
defective CDOs a "AAA rating" responsible for the problem?
- Are the insurance companies (MBA, Ambac, AIG, and others) that
insured the defective CDO reserves responsible for the problem?
- Are the financial institutions that purchased the defective CDOs
responsible for the problem?
- Are the people who borrowed money on the increased value of their
homes responsible for the problem?
- Are the federal agencies that should have evaluated the defective
CDOs, and monitored the unfunded derivative contracts, responsible for
the problem?
- Is Alan Greenspan, and the Board of Governors of the Fed, that
encouraged people to purchase homes they couldn't afford responsible
for the problem?

Some people claim the crisis came about because there isn't adequate
government regulation. Do we need more federal regulation?

I believe the Financial Elite (BOD - Brotherhood of Darkness) is
trying to confuse the American people because they don't allow them to
learn the true cause of the economic collapse. That's why we must
never forget Edward Bernays' prophetic warning:

"The conscious and intelligent manipulation of the organized habits
and opinions of the masses is an important element in democratic
society. Those who manipulate this un-seen mechanism of society
constitute an invisible government which is the true ruling power of
our country. We are governed, our minds are molded, our tastes formed,
our ideas suggested, largely by men we have never heard of." [5]

The Financial Elite claim the poor people who bought homes with
Adjustable Rate Mortgages (ARMs) are responsible for the economic
problem. Three to five years after they purchased their homes, their
ARM mortgage payments increased. The poor people couldn't afford the
high rates, lost their homes, and precipitated the cascade of home
foreclosures that caused the current financial collapse.

Henry Paulson echoed the Financial Elite's position when he wrote:

"I have always said that the decline in the housing market is at the
root of the economic downward turn and our financial stress." [6]

Why is Henry Paulson trying to conceal the true origin of the crisis?
Because he works for the Financial Elite (the Brotherhood of Darkness)
that created the problem. How did they create the problem? Wall Street
banks, and other BOD financial institutions, wrote trillions of
dollars of derivative contracts that defaulted, and left thousands of
foreign and domestic banks without sufficient financial reserves to
continue operating. What are derivative contracts? They are unfunded
insurance policies that guarantee the value of financial vehicles:
i.e. Collateralized Debt Obligations (bundled home mortgages-CDOs),
Asset Backed Securities (bundled student loans, credit card loans, and
auto loans-ABS) and Structured Investment Vehicles (SIVs). The
Financial Elite sold thousands of derivative contracts valued at
between $500 trillion and $1 quadrillion to other financial
institutions, but didn't maintain the financial reserves needed to
redeem the financial vehicles if they defaulted. Was that stupidity,
or something far more sinister? [7]

Henry Paulson is one of the primary architects of the problem because
he could have intervened in 2007, and stopped the home foreclosures,
but he didn't. Why? Because the Financial Elite sent Henry Paulson to
Washington, D.C., to carry out their agenda, and he has served them
well.

Henry Paulson worked for Goldman Sachs for twenty-two years, from
1974-2006, and helped the investment bank bundle thousands of subprime
and Alt A mortgages into Collateralized Debt Obligations (CDOs) that
were sold to unsuspecting clients throughout the world.[8]In 2004
Henry Paulson led a contingent of bankers to Washington, D.C., and
tried to convince the Securities and Exchange Commission that
financial institutions shouldn't be required to maintain the monetary
reserves needed to cover their derivative contracts. Henry Paulson and
his Wall Street friends succeeded, and are directly responsible for
the derivative-driven economic collapse that is taking place today.
[9]

Henry Paulson could have used part of the $700 billion TARP funds he
got from Congress to purchase most of the defective home mortgages
that are causing the current economic collapse, or he could have
backed Sheila Bair's effort (the FDIC program) to keep people in their
homes, but Paulson opposed both programs. [10]

Henry Paulson was richly rewarded for his services. During his tenure
at Goldman Sachs, he amassed a personal fortune that is estimated to
be $800 million, and he was sent to Washington, D.C., in 2006 to
preside over the transfer of trillions of taxpayer dollars to the Wall
Street banks and the Financial Elite. [11]

By the end of November 2008, Henry Paulson (CFR-BB), and FED Chairman
Ben Bernake (BB), had loaned, pledged, or given over $7.4 trillion to
the Financial Elite that rules the world. The Federal Reserve Board
chronicled their 2008 expenditures.

March 11, 2008: $200 billion: Loans to financial institutions.

March 16: $29 billion: Loan to JP Morgan Chase.

July 30: $300 billion: Housing bill.

September 7: $200 billion: The U.S. Treasury assumed Fannie Mae and
Freddie Mac's debt. The bailout may cost $500 billion to $1 trillion.

September 16:  $85 billion: To AIG $ 70 billion injected into the
financial system.

September 19:  $50 billion: Pledged to support Money Market funds.

September 29: $150 billion: Available to U.S. banks. $330 billion:
Available to foreign central banks.

October 3: $700 billion: Henry Paulson's bailout package.

October 7: $1.3 trillion: Purchase debt from companies.

October 8: $38 billion. Additional loan to AIG.

October 14: $1.4 trillion: FDIC guarantee of interbank loans.

November 25: $600 billion: Loan for mortgage-backed assets. $200
billion: Loan for consumer-backed assets.[12]

On November 24 Henry Paulson lent Citigroup $20 billion (in addition
to the $25 billion that the bank received from TARP in October), and
the U.S. Treasury assumed responsibility for 90% of Citigroup's $306
billion debt. [13]

The U.S. Treasury will probably also finance AIG's $500 billion debt.

Where will the money come from? The Fed and the U.S. Treasury will
create the funds electronically, and destroy the value of our
currency.

Mr. Paulson's recent New York Times op ed article exposes the
subterfuge. Henry Paulson's words are reproduced in bold print, my
response is printed in italics.

"We are going through a financial crisis more severe and unpredictable
than any in our lifetimes. We have seen the failures, or the
equivalent of failures, of Bear Stearns, IndyMac, Lehman Brothers,
Washington Mutual, Wachovia, Fannie Mae, Freddie Mac, and the American
International Group. Each of these failures would be tremendously
consequential in its own right. But we faced them in succession, as
our financial system seized up and severely damaged the economy."[14]

The statement is designedto instill fear and uncertainty in the minds
of the American people. Why? Because frightened people readily
relinquish their freedom.

"By September, the government faced a system-wide crisis. After months
of making the most of the authority we already had, we asked Congress
for a comprehensive rescue package so we could stabilize our financial
system and minimize further damage to our economy...."[15]

Henry Paulson understands the problem, but hasn't intervened because
the Financial Elite want to destroy our financial system, and replace
it with a "New Financial Order."[16]

"I have always said that the decline in the housing market is at the
root of the economic downturn and our financial market stress. And the
economy, as it slows further, threatens to prolong this decline, as
well as the stress on our financial institutions and financial
markets."[17]

If Henry Paulson really believes: "the decline in the housing market
is at the root of the economic downturn and our financial distress,"
why didn't he utilize part of the $700 billion he received to purchase
the defaulting home mortgages that caused the problem?

"Deploying these new tools and programs to restore our financial
institutions, financial markets and the flow of lending and credit
will determine, to a large extent, the speed and trajectory of our
economic recovery. I am confident of success, because our economy is
flexible and resilient, rooted in the entrepreneurial spirit and
productivity of the American people."[18]

Henry Paulson claims he has "restored our financial institutions,
financial markets, and the flow of lending and credit." Is his program
working?

Michael J de la Merced addressed that question in his November 14,
2008, New York Times article:

"As the government's financial rescue enters a new phase, Wall Street
and many ordinary Americans are wondering the same thing: Is any of
this working? The short answer is not nearly as much, or as fast, as
many had hoped. More than a month, and nearly $300 billion into the
initial effort, many of the nation's financial arteries seem nearly as
sclerotic as they were before. Some of them, in fact, appear to be
hardening more.... Loans are scarce, and for many people, getting
scarcer."[19]

Why did Henry Paulson oppose Sheila Bair's effort to stop the cascade
of foreclosures, and keep people in their homes? Edmund L. Andrew
addressed that issue in his November 12, 2008, article in the New York
Times:

"The Bush administration is backing away from proposals to have the
government refinance a broad swath of home owners who face foreclosure
after taking out sub- prime mortgages and other high-risk loans over
the last few years. The clearest sign of retreat came Tuesday when
administration officials announced a much more limited plan to help
people who have become seriously delinquent on conventional loans
guaranteed by Fannie Mae and Freddie Mac....The plan fell well short
of one championed by the chairman of the Federal Deposit Insurance
Corp., Sheila C. Bair.... (who wanted to - ed) spend as much as $50
billion to modify mortgages and keep people in their homes."[20]

Why is it difficult to obtain a loan from a bank today? Most people
can't get a loan because the Federal Reserve Board is paying interest
on the funds that commercial banks deposit with the FED. Bob Chapman
revealed what happened:

"Banks have increased their reserve holdings on deposit with the Fed
from $8 billion to $494 billion. This is $488 billion more that the
Fed estimates they (commercial banks-ed) would ordinarily need to hold
for payment clearing and prudential purposes. Increased reserve
holdings have absorbed perhaps half of the liquidity placed into the
banking system. The Fed has made these perverse incentives worse by
agreeing to start paying interest on excess reserves. Previously, the
lack of interest payments gave banks an incentive to .... (loan money
to their clients-ed)."[21]

Henry Paulson and Ben Bernake aren't trying to stop the financial
meltdown because they need a legitimate excuse to transfer the wealth
of the American people to the Financial Elite. There is a great deal
more to my story, but it will have to wait until next month.

Radio Liberty is currently heard on WLCM in Lansing, Michigan, and on
several other new outlets.

The United States is currently facing the worst financial crisis in
our nation's history. Several reliable financial advisers claim the
situation will improve for a short period of time, and then return
with a vengeance. What can you and I do? We must expose the spiritual
forces behind the problem, and use our allotted time to tell our
friends, relatives, and neighbors what is happening. This is a
wonderful opportunity to disseminate the truth. Can we change the
course of our nation? That is up to God, because:

Back of all that foes have plotted,
Back of all that Saints have planned,
Back of schemes by men or demons
Moves a higher , hidden hand ...
Mysteries which hurt and baffle,
Past our power to understand
In the end are turned to blessing
By the Sovereign Hidden Hand. [22]

That is our hope; that is our promise.

Barbara and I appreciated your faithful support, and your prayers.

Yours in Christ,
Stanley Monteith


REFERENCES

1. Henry Paulson, "Fighting the Financial Crisis, One Challenge at a
Time," The New York Times, November 18, 2008, op-ed article,.
2. Edmund Andrews, "White House cuts back on plan to aid distressed
homeowners," Santa Cruz Sentinel, November 12, 2008, p. A-6.
3. Bob Chapman, The International Forecaster, November 15, 2008, p.
13.
4. http://rense.com/general/84/closings.htm
5. Edward Bernays, Propaganda, Horace Liveright, Inc., 1928, p. 9.
6. Henry Paulson, op. cit.
7. http://en.wikipedia.org/wiki/Derivative_(finance)
8. http://en.wikipedia.org/wiki/Henry_Paulson
9. http://captiveamerican.com/paulson-caused-the-crisis/
10. www.financialpost.com/story-printer.html?id–9590
See Also: Edmund Andrews, November 12, op. cit.
11. www.efinancialnews.com/usedition/index/content/1046988221
12. Edmund Andrews, "Jump-start for consumers," San Jose Mercury
News,November 26, 2008, p. A-1.
13. www.msnbc.msn.com/id/27877195/
14. Herry Paulson, op. cit.
15. Ibid.
16. newsmax.com/morris/g_20_economic_summit/2008/11/19/153044.html
17. Henry Paulson, op. cit.
18. Ibid.
19. Michael J. de la Merced, "Many Line Up for Cash, But Bailout Plan
Falters," The New YorkTimes, November 14, 2008, p. B1.
20. Edmund Andrews, November 12, 2008, op. cit.
21. Bob Chapman, op. cit.
22. Anonymous.
[ Auf dieses Posting antworten ]