United States Army's only active psychological operations unit is based at Fort Bragg, North Carolina and is a part of the United States Army Special Operations Command. (USSOCOM)The commander of United States Army Special Operations Command is Lieutenant General John F. Mulholland Jr. The Joint Special Operations Command (JSOC) is the component that controls the special mission units (SMU) of USSOCOM. These units perform highly classified activities. Admiral Eric T. Olson is the Commander of these operations.
The purpose of United States psychological operations (PSYOP) is to induce or reinforce propaganda favorable to U.S. military objectives. It can be used at the strategic, operational, also known as Psychological warfare, level or at the tactical level.
Psychological Operations (PSYOP, PSYOPS) are techniques used by any set of groups to influence a target audience's value systems, belief systems, emotions, motives, reasoning, or behavior. PSYOPS are used to induce confessions or reinforce attitudes and behaviors favorable to the originator's objectives, and are sometimes combined with black operations or false flag tactics. Target audiences can be governments, organizations, groups, and individuals.
American Military Psyops are NOT leagal in America nor can they be used against our political system, government or individual Americans. However there is a LOOPHOLE, they can publish or start a psyops rumor in a foreign country and that can be picked up and carried by the American Media. Using this loophole the American Military does use psyops against the government, political leaders and individual Americans.
There is a relatively simple way to pick up on American Military PSYOPS in America. Look at the byline at the bottom of the article and you will see a foreign name and or place of origin. Typically these articles are written by numerous individuals and rarely if ever by a single individual. It is doubtfull that these originated in any place except Fort Bragg but they are disguised to look as if they originatd in a foreign country by a foreign person. The names are often bogus or pseudonyms.
American Military PSYOPS are ALWAYS associated with a spectacular or hyped event.
The 20th century has been characterized by three developments of great political importance: the growth of democracy, the growth of military/Industrial power, and the growth of military/Industrial propaganda as a means of protecting military/Industrial power against democracy.
With the beginnings of the mass media in the 19th century, war rape was sometimes used as propaganda by European colonialists to justify the colonization of places they had conquered.
In the 21st Century mass murder propaganda as in a lone gunman or 9/11 is used by the Military/Industrial complex to justify war against another religion or country(s). Bernays coined the terms "group mind" and "engineering consent", important concepts in practical psyops.
Goebbels openly acknowledged that he was exploiting the lowest instincts of the German people — racism, xenophobia, class envy and insecurity. He could, he said, play the popular will like a piano, leading the masses wherever he wanted them to go. "He drove his listeners into ecstasy, making them stand up, sing songs, raise their arms, repeat oaths — and he did it, not through the passionate inspiration of the moment, but as the result of sober psychological calculation." PSYOPS.
American Military Psyops as the propaganda head of the military/industrial complex an entity which has no great respect for the law, behaves as though they are in power. They commandeer the media by sensational news of dubious fact which are never open to forensic discovery. The propaganda originates from abroad or from within their own bases.
Monday, November 9, 2009
Saturday, November 7, 2009
There were many shooters, were they all Muslims?
The governor of Texas has confirmed, twice, that there were at least 3 shooters. The shootings appear to have been in an auditorium with movie style seats and a stage. The killers apparently roamed the isles and shot at point blank range the people on the isle seats and randomly at people on the interior seats. By definition this was a conspiracy since more than one shooter was involved. Now its becoming clearer, the gunmen were special ops and probably not muslims. They are being held by the Military utill they can get their story straight and pin everything on a muslim, who incidentally is supposed to be dead, but isn't. In America we honor the fallen soldiers if they aren't Muslim.
General Cone is pushing the crazed Muslim gunman theory as hard as he can. There has been no mention of the other gunmen by General Cone because it destroys his preposterous lone Muslim mass killer story. This time there were alot of witnesses the majority of them were scheduled to go to Afghanistan and now their departure has been expedited.
This is the lone gunman theory all over again, but this time the patsy is a Muslim and an officer who shoots 43 enlisted personnel.(Reverse fraggin) Hey they got away with it when they killed a President!! Why not make up another story where a lone gunman with one 9mm semi-auto Beretta M92 pistol and a 5 shot Ruger SP101 revolver shoots 43 people and kills 13 before being gunned down by a Heroine who got him at short range (the bad 2X Double Tap) while he was reloading. The whole cock and bull story from General Cone immediatly becomes suspicious because it's too preposterous to believe, unless you are a Becker Head.
The heroine is a Jessica Lynch standin, who looks like a small 105lb kid who couldn't hold her own in a fight with a puppy. (MPS and Blackwater guards are notoriously large) Whoever wants to be a hero follow me and BTW here is your script. (I would love to see her polygraph results)
The military has a poor record of reporting the truth, like WMDs, Jessica Lynch, Pat Tillman and others. The Hasan story is full of the same holes and of a similar genre.
A special ops theory would have more credability than the lone gunman theory, but the Military can't back down now. Their star patsy is a man in a coma who can't defend himself. They would like to see him die but if he survives he will be shipped to gitmo and disappear forever.
General Cone is pushing the crazed Muslim gunman theory as hard as he can. There has been no mention of the other gunmen by General Cone because it destroys his preposterous lone Muslim mass killer story. This time there were alot of witnesses the majority of them were scheduled to go to Afghanistan and now their departure has been expedited.
This is the lone gunman theory all over again, but this time the patsy is a Muslim and an officer who shoots 43 enlisted personnel.(Reverse fraggin) Hey they got away with it when they killed a President!! Why not make up another story where a lone gunman with one 9mm semi-auto Beretta M92 pistol and a 5 shot Ruger SP101 revolver shoots 43 people and kills 13 before being gunned down by a Heroine who got him at short range (the bad 2X Double Tap) while he was reloading. The whole cock and bull story from General Cone immediatly becomes suspicious because it's too preposterous to believe, unless you are a Becker Head.
The heroine is a Jessica Lynch standin, who looks like a small 105lb kid who couldn't hold her own in a fight with a puppy. (MPS and Blackwater guards are notoriously large) Whoever wants to be a hero follow me and BTW here is your script. (I would love to see her polygraph results)
The military has a poor record of reporting the truth, like WMDs, Jessica Lynch, Pat Tillman and others. The Hasan story is full of the same holes and of a similar genre.
A special ops theory would have more credability than the lone gunman theory, but the Military can't back down now. Their star patsy is a man in a coma who can't defend himself. They would like to see him die but if he survives he will be shipped to gitmo and disappear forever.
Forget the Audit: Just Go Ahead & Abolish the Federal Reserve
By Jim Traficant
ON MARCH 17, 1993, I addressed the House of Representatives in one of the many “budget” debates. Over the past 16 years, many publications and books have reprinted my speech.
They viewed my speech as being on target. Researchers have written to me regarding the speech, confused because it was printed in two areas of the Congressional Record. My floor remarks were brief, but I inserted the entire speech into the “extension of remarks” section of the record.
Nevertheless, the speech stands today as prophetic. America is bankrupt, and it’s growing worse by the day. The U.S. government was technically dissolved by the “Emergency Banking Act” of March 9, 1933. THAT’S A FACT.
If you have any doubt, just look around. Foreclosures and unemployment run rampant. The dollar is dropping so low it could fit under a closed door with a top hat on, yet every day the mainstream media is trying to convince us that the recession is over. Who’s kidding whom? If you take Social Security and Medicare out of our economy, it’s a full-blown depression—a total belly-up depression.
The real rub emanates from the fact that the “trustees” who preside over U.S. bankruptcy are the international bankers, via the United Nations, the World Bank and the International Monetary Fund.
I proclaim that all U.S. offices, officials and departments are now operating within a de facto status in name only under “Emergency War Power.”
Our constitutional form of government was technically dissolved and replaced by a so-called “democracy,” a government in actuality being a socialist-communist order under a new governor for America.
You must be thinking that I’ve lost my marbles by now—I don’t blame you. But, here come the facts. This chicanery occurred when authority was transferred and placed in the Office of the Secretary of Treasury under the governor of the International Monetary Fund. [Public Law 94-564].
In essence, the dollar was changed from a “promise to pay a dollar in silver or gold” to a “federal reserve note.” Now think about it: the dollar became a “promise,” not “money.”
The U.S. dollar is a debt instrument, nothing more than another debt obligation of the American people. And where is this obligation to be paid? You probably guessed it, to the Federal Reserve Bank.
Let’s tell it like it is. Federal Reserve notes are literally unsigned checks written on a closed account. It’s nothing more than inflatable paper creating more debt through inflation every time our currency is devalued.
Truth is, inflation is actually another tax; invisible, never seen, but a tax just the same. I don’t know about you, but I always thought that a “contract” under common law is only valid if it involves an exchange of some “good and valuable consideration.”
If that’s not enough to frost your pumpkins, check this out: The Federal Reserve System is a sovereign power structure separate and distinct from the U.S. government. It is in fact, a private corporation.
We, the people of these United States, owe this private corporation consisting of international bankers a mountain of debt. The collateral on this debt is our very own homes and properties.
We the people are nothing more than tenants and sharecroppers, renting our own property from the Federal Reserve Bank. Most Americans are mortgaged to the hilt with few or no assets, working harder and profiting less, constantly in debt to a private corporation they know little or nothing about.
BEAM ME UP. This has gone on way too long—WAKE UP AMERICA.
This is nothing more than economic slavery to a bunch of international fat cats. Our Constitution has been turned upside down, violated and discarded like toilet paper. Unbelievable.
It’s not rocket science folks—CONGRESS SHALL COIN MONEY, so mandates the Constitution. It’s very clear to me: the Federal Reserve System should be abolished, not just audited so the politicians can feel good, but abolished. Enough is enough. In closing I say “audit this.”
NOTICE
OF
NATIONAL EMERGENCY
In Reg: U.S. Senate Report No. 93-549 dated 11/19/73
(73 CIS Serial Set S963-2 607 Pages)
The United States went "Bankrupt" in 1933 and was declared so by President Roosevelt by Executive Orders 6073, 6102, 6111 and Executive Order 6260, (See: Senate Report 93-549, Pgs. 187 & 594) under the "Trading With The Enemy Act" (Sixty-Fifth Congress, Sess. I, Chs. 105, 106, October 6, 1917), and as codified at 12 U.S.C.A. 95a. The several States of the Union then pledged the faith and credit thereof to the aid of the National Government, and formed numerous socialist committees, such as the "Council of State Governments", "Social Security Administration", etc., to purportedly deal with the economic "Emergency." These Organizations operated under the "Declaration Of INTERdependence" of January 22, 1937 and published some of their activities in "The Book of the States." The 1937 Edition of the "Book of the States" openly declared that the people engaged in such activities as the Farming/Husbandry Industry had been reduced to mere feudal "Tenants" on their Land (Book Of The States, [1937], pg. 155). This of course was compounded by such activities as price fixing Wheat and Grains (7 U.S.C.A. 1332), quota regulations (7 U.S.C.A. 1371), and livestock products (7 U.S.C.A. 1903), which have been consistently below the costs of production, interest on loans and inflation of the paper "Bills of Credit", leaving the food producers and others in a state of peonage and involuntary servitude, constituting the taking of private property, for the benefit and use of others - without just compensation.
NOTE: The "Council Of State Governments" has now been absorbed into such things as the "National Conference Of Commissioners On Uniform State Laws" whose Headquarters Office is located at 676 North St., Clair Street, Suite 1700, Chicago, Illinois 60611 and "all" being "members of the Bar" and operating under a different "Constitution And By-Laws" has promulgated, lobbied for, passed, adjudicated and ordered the implementation and execution of their purported statutory provisions, to "help implement international treaties of the United States or where world uniformity would be desirable" (See: 1990/91 Reference Book "National Council Of Commissioners On Uniform State Laws", pg. 2). This is apparently what Robert Bork meant when he wrote: "we are governed not by law or elected representatives but by an unelected, unrepresentative, unaccountable committee of lawyers applying no will but their own" (See: The Tempting of America, Robert H. Bork, pg. 130).
The United States thereafter entered the second World War during which time the "League of Nations" was reinstituted under pretense of the "United Nations" and the "Bretton Woods Agreement" (See: 60 Stat. 1401). The United States, as a corporate body politic (artificial), came out of World War II in worse economic shape than when it entered, and in 1950 declared "Bankruptcy" and "Reorganization." The Reorganization is located in Title 5 of the United States Code Annotated. The "Explanation" at the beginning of 5 U.S.C.A. is most informative reading. The "Secretary of Treasury" was appointed as the "Receiver" in Bankruptcy (See: Reorganization Plan No. 26 5 U.S.C.A. 903, Public Law 94-564, the Legislative History thereof at pg. 5967). The United States went down the road and periodically filed for further Reorganization. Things and situations worsened, having done what they were Commanded NOT to do (See: Madison's Notes, Constitutional Convention, August 16, 1787; Federalist Papers No. 44), and in 1965 the Congress passed the "Coinage Act of 1965" completely debasing the Constitutional gold and silver Coin (See: 18 U.S.C.A. 331, 332; U.S. v. Marigold, 50 US 560, 13 L.Ed. 257). At the signing of the Coinage Act on July 23, 1965; Lyndon B. Johnson stated in his Press Release that:
"When I have signed this bill before me, we will have made the first fundamental change in our coinage in 173 years. The Coinage Act of 1965 supersedes the Act of 1792. And that Act had the title: `An Act Establishing a Mint and Regulating the Coinage of the United States ...
"Now I will sign this bill to make the first change in our coinage system since the 18th Century. To those members of Congress, who are here on this historic occasion, I want to assure you that in making this change from the 18th Century we have no idea of returning to it."
It is important to take cognizance of the fact that NO Constitutional Amendment was ever obtained to FUNDAMENTALLY CHANGE, amend, abridge or abolish the Constitutional mandates, provisions or prohibitions, but due to internal and external diversions surrounding the Viet Nam War, etc.; the usurpation and breach went basically unchallenged and unnoticed by the general public at large, who became "a wealthy man's cannon fodder or cheap source of slave labor" (See: Silent Weapons For Quiet Wars, TM-SW7905.1, Pgs. 6-9, 12, 13, & 56). Congress was clearly delegated the Power and Authority to regulate and maintain the true and inherent "value" of the Coin within the scope and purview of Article I, Section 8, Clauses 5 & 6 and Article I, Section 10, Clause 1 of the ordained (1787) Constitution, and further, under a corresponding duty and obligation to maintain said gold and silver Coin and Foreign Coin at and within the necessary and proper "equal weights and measures" clause (See also: Holy Bible; Deuteronomy 25:13-16; Public Law 97-289; 96 Stat. 1211).
Those exercising the Offices of the several States, in equal measure, knew such "De Facto Transitions" were unlawful and unauthorized, but sanctioned, implemented and enforced the complete debauch and the resulting "governmental, social, industrial economic change" in the "De Jure" States and in the United States of America (See: Public Law 94-564, Legislative History thereof, pg. 5936, 5945; 31 U.S.C.A. 314, 321, 5112; C.R.S. [Colorado Revised Statutes] 11-61-101; C.R.S. 39-22-103.5; and C.R.S. 18-11-203), and were and are now under the delusion that they can do both directly and indirectly what were absolutely prohibited from doing (See also: Federalist Papers No. 44; Craig v. Missouri, 4 Peters 903).
In 1966, Congress being severally compromised, passed the "Federal Tax Lien Act of 1966", by which the entire taxing and monetary system i.e. "Essential Engine" (See: Federalist Papers No. 31) was placed under the Uniform Commercial Code (See: Public Law 89-719; and the Legislative History thereof, pg. 3722; also see: C.R.S. 5-1-106). The Uniform Commercial Code was, of course, promulgated by the "National Conference of Commissioners On Uniform State Laws" in collusion with the "American Law Institute" for the "banking and business interests" (See: "Handbook Of The National Conference Of Commissioners On Uniform State Laws" (1966 ed.) pgs. 152-153). The United States being engaged in numerous U.N. conflicts including the Korean and the Viet Nam wars of which were under the direction of the United Nations (See: 22 U.S.C.A. 287d), and agreeing to foot the bill (See: 22 U.S.C.A. 287j), and not being able to honor their obligations and hypothecated debt credit; openly and publicly dishonored and disavowed their "Notes" and "obligations" (12 U.S.C.A. 411) i.e. "Federal Reserve Notes" through Public Law 90-269, section 2; 82 Stat. 50 to wit:
"Sec. 2. The first sentence of section 15 of the Federal Reserve Act (12 U.S.C. 391) is amended by striking `and the funds provided in this Act for the redemption of Federal Reserve Notes' ..."
Things steadily grew worse and on March 28, 1970; President Nixon issued Proclamation No. 3972 declaring an "emergency" because the Postal Employees struck against the de facto government (?) for higher pay, due to inflation of the paper "Bills of Credit" (See: Senate Report No. 93-549, pg. 596). President Nixon placed the U.S. Postal Department under control of the "Department of Defense" (See: Department Of The Army Field Manual, FM 41-10 (1969 ed.)).
NOTE: The System had been faltering for a decade, but the bench mark date of the collapse is put at August 15, 1971. On this day, President Nixon reversed the U.S. International Monetary Policy by officially declaring the non-convertibility of the U.S. Dollar [F.R.N.] into Gold.
See also:
Public Law 94-564, the Legislative History thereof at pg. 5937; Senate Report No. 93-549, the "Forward" at pg. III; Presidential Proclamation No. 4074, at page 597; 31 U.S.C.A. 314, 5112
On September 21, 1973; the Congress passed Public Law 93-110, amending the "Bretton Woods Par Value Modification Act" (82 Stat. 116; 31 U.S.C.A. 449) and reiterated the "Emergency" (12 U.S.C.A. 94a; and section 8 of the "Bretton Woods Agreements Act" of 1945 [22 U.S.C.A. 286f]), which included "reports on foreign currency transactions" (See also: Executive Order No. 10033). This "Act" further declared in Section 2(b) that:
"No provision of any law in effect on the date of enactment of this Act, and no rule, regulation, or order under authority of any such law, may be construed to prohibit any person from purchasing, holding, selling, or otherwise dealing with gold."
On January 19, 1976; Marjorie S. Holt noted for the record, a second "Declaration Of INTERdependence" and clearly identified the United Nations as a "Communist" organization, and that they were seeking both production and monetary control over the Union and People through International Organization promoting the "New World Order" (See: 8 U.S.C.A. 1101(40); see also: 50 U.S.C.A. 781, 783).
The social/economic situation worsened as noted in the Complaint/Petition filed in the U.S. Court of Claims under docket No. 41-76 on February 11, 1976 by 44 Federal Judges, (Atkins et.al. v. U.S.). Atkins et.al. complained that:
"As a result of inflation, the compensation of federal judges has been substantially diminished each year since 1969, causing direct and continuing monetary harm to plaintiffs ... the real value of the dollar decreased by approximately 34.5 percent from March 15, 1969 to October 1, 1975 ... . As a result, plaintiffs have suffered an unconstitutional deprivation of earnings"
and in the prayer for relief claimed:
"damages for the constitutional violations enumerated above, measured as the diminution of his earnings for the entire period since March 9, 1969."
It is quite apparent that the persons holding and enjoying Offices of Public Trust, Honor, and/or Profit knew of the emergency emergent problem and sought protection for themselves, to the damage and injury of the People and Children, who were classified as "a club that has many other members" who "have no remedy." And knowing that "heinous" acts had been committed, stated that they [judges/lawyers] would not apply the Law, nor would any substantive remedy be applied ("checked" more or less, but never stopped) "until all of us [judges] are dead." Such persons "Fraudulently" swore on "Oath" to uphold, defend, and preserve the sovereignty of the Nation and several Republican States of the Union, and breached the Duty to protect the People/Citizens and their "Posterity" from fraud, imposition, avarice, and stealthy encroachment (See: Atkins et. al. v. U.S., 556 F2d 1028 @ 1072, 1074; The Tempting Of America (supra.) pgs. 155-159; also see: 5 U.S.C.A. 5305, 5335; Senate Report No. 93-549, pgs. 69-71; C.R.S. 24-75-101). This is verified in Public Law 94-564, and the Legislative History thereof at page 5944 which states:
"Moving to a floating exchange rate for international commerce means
private enterprise and not central governments bear the risk of currency fluctuations."
Numerous serious debates were held in Congress, including but not limited to, Tuesday, July 27, 1976 (See: Congressional Record - House, July 27, 1976), concerning the International Financial Institutions and its operations. Representative, Ron Paul, Chairman of the House Banking Committee, made numerous references to the true practices of the "International" financial institutions including, but not limited to, the conversion of $27,000,000 (27 million) in gold, contributed by the United States as part of its "quota obligations," which the International Monetary Fund (Governor-Secretary of Treasury) sold (See: Public Law 94-564, the Legislative History thereof at pages 5945 & 5946), under some very questionable terms and concessions (See also: "The Ron Paul Money Book," (1991), by Ron Paul, Plantation Publishing, 837 W. Plantation, Clute, Texas 77531).
On October 28, 1977; the passage of Public Law 95-147, (91 Stat. 1227) declared most banking institutions, including State banks, to be under direction and control of the corporate "Governor" of the "International Monetary Fund" (See: Public Law 94-564, the Legislative History thereof at page 5942; United States Manual 1990/91, pgs. 480-481). The Act further declared that:
"(2) Section 10(a) of the Gold Reserve Act of 1934 (31 U.S.C. 822a(b)) is amended by striking out the phrase `stabilizing the exchange value of the dollar' ..."
"(c) The joint resolution entitled `Joint resolution to assure uniform value to the coins and currencies of the United States', approved June 5, 1933 (31 U.S.C. 463) shall not apply to obligations issued on or after the date of enactment of this section."
The United States, as Corporator, (22 U.S.C.A. 286e, et. seq.) and "State" (C.R.S. 24-36-104, C.R.S. 24-60-1301(h)) had declared "Insolvency" (See: 26 I.R.C. 165(g)(1); U.C.C. 1-201(23); C.R.S. 39-22-103.5; Westfall v. Braley, 10 Ohio 188; 75 Am.Dec. 509; Adams v. Richardson, 337 S.W.2d 911; Ward v. Smith, 7 Wall. 447). A permanent state of "Emergency" was instituted, formed and erected within the Union through the contrivances, fraud, and avarice of the International Financial Institutions, Organizations, Corporations, and Associations, including the Federal Reserve; their "fiscal and depository agent" (22 U.S.C.A. 286d). This has led to such "Emergency" legislation as the "Public Debt Limit-Balance Budget And Emergency Deficit Control Act of 1985" (Public Law 99-177) etc..
The government, by becoming a corporator, (See: 22 U.S.C.A. 286e) lays down its sovereignty and takes on the status that of a private citizen. It can exercise no power which is not derived from the corporate charter (See: The Bank of the United States v. Planters Bank of Georgia, 6 L.Ed. ( Wheat) 244; U.S. v. Burr, 309 US 242). The real party in interest is not the de jure "United States of America" or "State;" but "The Bank" and "The Fund" (22 U.S.C.A. 286, et. seq., C.R.S. 11-60-103). The acts committed under fraud, force, and seizures are many times done under "Letters of Marque and Reprisal" i.e. "recapture" (See: 31 U.S.C.A. 5323). Such principles as: "Fraud and Justice never dwell together" (Wingate's Maxims 680) and: "A right of action cannot arise out of fraud" (Broom's Maxims 297, 729; Cowper's Reports 343; 5 Scott's New Reports 558; 10 Mass. 276; 38 Fed. 800) are to high of a thought concept, as is "Due Process," "Just Compensation," and "Justice" itself. "Honor" is earned by honesty and integrity, not under false and fraudulent pretenses, nor will the color of the cloth one wears cover-up the usurpations, lies, trickery, and deceits. When "Black" is fraudulently declared to be "White;" not all will live in darkness. As astutely observed by Will Rogers: "There are men running governments who shouldn't be allowed to play with matches" and it is as applicable today as Jesus' statements about Lawyers and Judges.
The contrived "emergency" has created numerous abuses and usurpations, and abridgments of delegated Powers and Authority. As stated in Senate Report 93-549:
"These proclamations give force to 470 provisions of Federal law. These hundreds of statutes delegate to the President extraordinary powers, ordinarily exercised by the Congress in a host of all-encompassing manners. This vast range of powers, taken together, confer enough authority to rule the country without reference to normal constitutional process.
"Under the powers delegated by these statutes, the President may: seize property; organize and control the means of production; seize commodities; assign military forces abroad; institute martial law; seize and control all transportation and communication; regulate the operation of private enterprise; restrict travel; and in a plethora of particular ways, control the lives of all American citizens." (See also: "Forward" at pg. III)
The "Introduction," on page 1, begins with a phenomenal declaration, to wit:
"A majority of the people of the United States have lived all of their lives under emergency rule. For 40 years, freedoms and governmental procedures guaranteed by the Constitution have in varying degrees been abridged by laws brought into force by states of national emergency ..."
According to the research done in 16 Am.Jur.2d 71, 82; no "emergency" justifies a violation of any constitutional provision. Argumentum: "Supremacy Clause" and "Separation of Powers," it is clearly admitted in Senate Report No. 93-549 that abridgment has occurred. The statements heard in the Federal and State Tribunals, on numerous occasions, that Constitutional arguments are "immaterial," "frivolous," etc., is based upon the concealment, furtherance and compounding of the Frauds and "Emergency" created and sustained by the "Expatriated," ALIENS of the United Nations and its Organizations, Corporations, and Associations (See: Letter, "Insight Magazine," February 18, 1991, pg. 7, Lowell L. Flanders, President, U.N. Staff Union, New York). U.S. Code Title 8, Section 1481 is one of the controlling statutes on expatriation as is 22 U.S.C.A. 611, 612 & 613 and 50 U.S.C.A. 781.
The Internal Revenue Service entered into a "service agreement" with the U.S. Treasury Department (See: Public Law 94-564, the Legislative History there of at pg. 5967; Reorganization Plan No. 26) and the "Agency For International Development" pursuant to Treasury Delegation Order No. 91. The "Agency For International Development" is an international paramilitary operation (See: Department Of The Army Field Manual, FM 41-10, (1969) pgs. 1-4, Sec. 1-7(b), 1-6, 1-10(7)(c)(1); 22 U.S.C.A. 284) and includes such activities as "Assumption of full or partial executive, legislative, and judicial authority over a country or area" (See: FM 41-10, pg. 1-7, Section 110(7)(c)(4)); see also: "Agreement Between The United Nations And The United States Of America Regarding The Headquarters Of The United Nations," Sections 7(d), (8); 22 U.S.C.A. 287 (1979 ed) at pg. 241). It is to be further observed that the "Agreement" regarding the "Headquarters District of the United Nations" was NOT agreed to (See: Congressional Record - Senate, December 13, 1967, Mr. Thurmond) and is illegally within the Country in the first instant. The Internal Revenue Service Agreement (Treasury Delegation Order No. 91) may be found at the: U.S. Department of Treasury, Office of the Assistant General Counsel (International Affairs), 1500 Pennsylvania Ave., N.W., Washington, D.C. 20220.
The International Organizational intents, purposes and activities include complete control of "Public Finance" i.e. "control, supervision, and audit of indigenous fiscal resources; budget practices, taxation, expenditures of public funds, currency issues, and banking agencies and affiliates" (See: FM 41-10, pgs. 2-10 thru 2-31, Section 251, Public Finance). This, of course, complies with "Silent Weapons For Quiet Wars" (Research Technical Manual TM-SW7905.1) which discloses a declaration of war upon the American people (See: pgs. 3 & 7), monetary control by the Internationalist, through information etc., solicited and collected by the Internal Revenue Service (See: TM-SW7905.1, pg. 48, also see: 22 U.S.C.A. 286f & Executive Order No. 10033; 26 U.S.C.A. 6103(k)(4)) and who is operating and enforcing the seditious International program (See: TM-SW7905.1, pg. 52). The 1985 Edition of the Department Of Army Field Manual, FM 41-10 further describes the International "Civil Affairs" operations. At page 3-6 it is admitted that the A.I.D. is autonomous and under direction of the "International Development Cooperation Agency," and at page 3-8 that the operation is "paramilitary." The International Organizations(s) intents and purposes was to promote, implement, and enforce a "DICTATORSHIP OVER FINANCE IN THE UNITED STATES" (See: Senate Report No. 93-549, pg. 186).
It appears from the documentary evidence that the Agents of the Internal Revenue Service, etc., are "Agents of a Foreign Principal" within the meaning and intent of the "Foreign Agents Registration Act of 1938." They are directed and controlled by the corporate "Governor" of "The Fund" a/k/a "Secretary of Treasury" (See: Public Law 94-564, supra., pg. 5942; U.S. Government Manual 1990/91, pgs. 480 & 481; 26 U.S.C.A. 7761(a)(11); Treasury Delegation Order No. 150-10), and the corporate "Governor" of "The bank" (22 U.S.C.A. 286, 286a) acting as "information-service employees" (22 U.S.C.A. 611(c)(ii)) have been and does now solicit, collect, disburse or dispense contribution (Tax-pecuniary contribution, Blacks Law Dict. 5th ed.), loans, money, or other things of value for or in interest of such foreign principal (22 U.S.C.A. 611(c)(iii)), and they have entered into agreements with a "Foreign Principal" pursuant to Treasury Delegation Order No. 91 i.e. the "Agency For International Development" (See: 22 U.S.C.A. 611(c)(2)). The Internal Revenue Service is also an agency of the "International Criminal Police Organization" and solicits and collects information for 150 Foreign Powers (See: 22 U.S.C.A. 263a; The United States Government Manual, 1990/91, pg. 385; See also: "The Ron Paul Money Book", pgs. 250-251). It should be further noted that Congress has appropriated, transferred, and converted vast sums to Foreign Powers (See: 22 U.S.C.A. 262c(b)) and has entered into numerous Foreign Taxing Treaties (conventions) (See: 22 U.S.C.A. 285g, 287j) and other Agreements, which are solicited and collected pursuant to 26 U.S.C.A. 6103(k)(4). Along with the other documentary evidence submitted herein, this should absolve any further doubt as to the true character of the party. Such restrictions as: "For the general welfare and common defense of the United States" (See: U.S. Const., (1787), I:8:1) apparently aren't applicable, and the fraudulent hypothecated debt credit will be merely added to the insolvent nature of the continual "emergency", and the reciprocal social/economic repercussions laid upon present and future generations.
Among other reasons for lack of authority to act, such as a "Foreign Agents Registration Statement" (22 U.S.C.A. 612; 18 U.S.C.A. 219, 951), military authority cannot be imposed into civil affairs (See: Department Of The Army Pamphlet 27100-70; Military Law Review, Vol. 70). The United Nations Charter (Article 2, Section 7) further prohibits the U.N. from: "intervening in matters which are essentially within the domestic jurisdiction of any state ...". Korea, Viet Nam, Ethiopia, Angola, Kuwait, etc., are evidence enough of the "BAD FAITH" of the United Nations and its Organizations, Corporations, and Associations, not to mention the seizing of two day care centers in the State of Minnesota by their agents, and holding the children as collateral/hostages for payment/ransom of their fraudulent, dishonored, hypothecated debt credit and worthless securities. Such is the "Rule Of Law" (as envisioned by the Founders) of the United Nations. Such is Communist terrorism, despotism, and tyranny. ALL WERE AND ARE OUTLAWED HERE IN THE UNITED STATES OF AMERICA.
It is quite apparent that the "Treasonous" and "Seditious" are brewing up a storm of untold magnitude. President Bush's public address of September 11, 1991 (See: Weekly Compilation Of Presidential Documents) should further qualify what is being said here. He admitted "INTERdependence" (See also: Public Law 94-564, the Legislative History thereof at page 5950), "New World Order" (See also: Extension Of Remarks, January 19, 1976, Marjorie S. Holt; 8 U.S.C.A. 1101(40)), affiliation and collusion with the Soviet Union Oligarchy (50 U.S.C.A. 781), direction by the U.N. (22 U.S.C.A. 611) etc.. You might also find it interesting that Treasury Delegation Order No. 92 states that the I.R.S. is trained under direction of the Division of "Human Resources" (U.N.) and the Commissioner (INTERNATIONAL) by the "Office Of Personnel Management." In the 1979 Edition of 22 U.S.C.A. 287 ("The United Nations" at page 248); you will find Executive Order No. 10422. The "Office of Personnel Management" is under direction of the Secretary General of the United Nations. And as stated previously; the I.R.S. is also a member of a one hundred fifty (150) Nation pact called the "International Criminal Police Organization" (22 U.S.C.A. 263a). The "Memorandum & Agreement" between the Secretary of Treasury/Corporate Governor of "The Fund" and "The Bank" and the "Office of the U.S. Attorney General" would indicate that the Attorney General and his associates are soliciting and collecting information for "Foreign Principals" (See also: The United States government Manual, (1990/91), pg. 385; also see: The Ron Paul Money Book, (supra.), pg. 250, 251).
It is worthy of note that an Attorney/Representative is required to file a "Foreign Agents Registration Statement" pursuant to 22 U.S.C.A. 611(c)(1)(iv), 612, if representing the interests of a "Foreign Principal" or Power (See: 22 U.S.C.A. 613; Rabinowitz v. Kennedy, 376 US 605, 11 L.Ed.2d 940; 18 U.S.C.A. 219, 951).
On January 17, 1980; the President and the Senate confirmed another "Constitution", namely, the "Constitution Of The United Nations Industrial Development Organization", found at Senate, Treaty Document No. 97-19, 97th Congress, 1st Session. A perusal of this "Foreign Constitution" should more than qualify the internationalist intents. The "Preamble;" Article 1 ("Objectives"), and Article 2 ("Functions"), clearly evidences their intent to direct, control, finance, and subsidize all "natural and human resources" and "agro-related as well as basic industries," through "dynamic social and economic changes" "with a view to assisting in the establishment of a new international economic order." The high flown rhetoric is obviously of "Communist" origin and intents. An unelected, unrepresentative, unaccountable oligarchy of expatriates and aliens who fraudulently claim in the "Preamble" that they intend to establish "rational and equitable international economic relations", yet they openly declared that they no longer "stabilize the value of the dollar" nor "assure the value of the coin and currency of the United States." This is purely misrepresentation, deceit, and fraud (See: Public Law 95-147, 91 Stat. 1227, at pg. 1229). This was augmented by Public Law 101-167, 103 Stat. 1195, which discloses massive appropriations of hypothecated debt credit for the general welfare and common defense of other Foreign Powers, including "Communist" countries or satellites, International control of natural and human resources, etc.. A "Resource" is a claim of "property" and when related to people constitutes "slavery."
It is now necessary to ask which Constitution they are operating under. The "Constitution For The Newstates Of The United States," which was locates at Liberty Lobby, 100 Independence Ave., S.E., Washington, D.C. 20003; was the subject matter of the book entitled: "The Emerging Constitution" by Rexford G. Tugwell, which was accomplished under the auspices of the Rockefeller tax-exempt foundation called the "Center For The Study Of Democratic Institutions." The People and Citizens of this Nation were forewarned against formation of "Democracies." "Democracies have ever been the spectacles of turbulence and contention; have ever been found incompatible with personal security or the rights of property; and have in general been as short in their lives as they have been violent in their deaths." [The Federalist Papers No. 10; The Law (Fredrick Bastiat); Code Of Professional Responsibility (Preamble)]
This Alien Constitution, however, has nothing to do with democracy in reality. It is the basis of and for a despotic, tyrannical oligarchy. At Article I ("Rights and Responsibilities"); Section 1 and 15 admits to the "emergency." The Rights of expression, communication, movement, assembly, petition and Habeas Corpus are all excepted from being exercised under and in a "declared emergency." The "Constitution for the Newstates of America" openly declares, among other seditious things and delusions that: "Until each indicated change in the government shall have been completed, the provisions of the existing Constitution (U.S. Constitution) and the organs of government shall be in effect." [The Constitution of the New States, Article XII,
Section 4].
This is apparently what Burger was promoting in 1976, after he resigned as Supreme Court Justice and took up the promotion of being a member of the "Constitutional Convention." No trial by jury is mentioned, "JUST" Compensation has been removed, along with being informed of the "Nature & Cause of the Accusation," etc., and every one will, of course, participate in the "democracy." This Constitution is but a reiteration of the Communist Doctrines, intents and purposes, and clearly establishes a "Police Power" State, under direction and control of a self appointed oligarchy.
Apparently the present operation of the "de facto" government is under Foreign/Alien Constitutions, Laws, Rules, and Regulations. The overthrow of the "essential engine" declared in and by the ordained and established Constitution for the United States of America (1787), and by and under the "Bill of Rights" (1791) is obvious. The covert procedure used to implement and enforce these Foreign Constitutions, Laws, Procedures, Rules, Regulations, etc., has not, to our knowledge, been collected and assimilated nor presented as evidence to establish seditious collusion and conspiracy.
Fortunately and Unfortunately; it is necessary to seek, obtain, and present EVIDENCE to sustain a convection and/or judgment. Our patience and tolerance for those who pervert the very necessary and basic foundations of society has been pushed to insufferable levels. They have "fundamentally" changed the form and substance of the "de jure" Republican form of Government, exhibited a willful and wanton disregard for the Rights, Safety, and Property of others, evinced a despotic design to reduce the People to slavery, peonage and involuntary servitude, under a fraudulent, tyrannical, seditious foreign oligarchy, with intent and purpose to institute, erect and form a "Dictatorship" over the Inhabitants and our Posterity. They have completely debauched the de jure monetary system, destroyed the livelihood and lives of thousands, aided and abetted our enemies, turned Sodomites lose amongst our young. They have implemented foreign laws, rules, regulations, and procedures within the body of the Country, incited insurrection, rebellion, sedition, and anarchy within the de jure society. The have illegally entered onto our land, taken false Oaths, entered into seditious Foreign Constitutions, Agreements, Pacts, Confederations, and Alliances, and under pretense of "emergency," which they themselves have created, promoted and furthered; formed a multitude of offices and retained those of Alien Allegiance to perpetuate their frauds and to eat out the substance of the good and productive People of our land. They have arbitrarily dismissed and held mock trials for those who trespassed upon our lives, Liberties, Properties, and Families and endangered our Peace, Safety, Welfare, and Dignity. The damage, injury, and costs to our Rights, Liberties, and Posterity have been higher than mere money can repay. They have done what they were COMMANDED NOT TO DO. The time for just correction is NOW!
Next week—AIPAC. You don’t want to miss it.
James A. (Jim) Traficant, Jr. was born in Youngstown, Ohio on May 8, 1941. He received B.S. and M.S. degrees from the University of Pittsburgh, where he was a well-known football star. He also received a M.S. degree from Youngstown State University in 1976. For ten years he served as executive director of the Mahoning County (Ohio) Drug Program and from 1981-1985 he served as sheriff of Mahoning County, prior to his election to the U.S. Congress as a Democrat in 1984. He was re-elected by overwhelming margins every year up until 2002 when, following his conviction on trumped up corruption charges, he was expelled from the House of Representatives. Despite his conviction and expulsion and being sent to prison for a seven year term Traficant still won 15% of the vote running for re-election to the House in the 2002 election as an independent. He recently completed a seven-year prison sentence, having refused to seek a pardon or clemency, refusing to admit to or apologize for crimes he did not commit.
ON MARCH 17, 1993, I addressed the House of Representatives in one of the many “budget” debates. Over the past 16 years, many publications and books have reprinted my speech.
They viewed my speech as being on target. Researchers have written to me regarding the speech, confused because it was printed in two areas of the Congressional Record. My floor remarks were brief, but I inserted the entire speech into the “extension of remarks” section of the record.
Nevertheless, the speech stands today as prophetic. America is bankrupt, and it’s growing worse by the day. The U.S. government was technically dissolved by the “Emergency Banking Act” of March 9, 1933. THAT’S A FACT.
If you have any doubt, just look around. Foreclosures and unemployment run rampant. The dollar is dropping so low it could fit under a closed door with a top hat on, yet every day the mainstream media is trying to convince us that the recession is over. Who’s kidding whom? If you take Social Security and Medicare out of our economy, it’s a full-blown depression—a total belly-up depression.
The real rub emanates from the fact that the “trustees” who preside over U.S. bankruptcy are the international bankers, via the United Nations, the World Bank and the International Monetary Fund.
I proclaim that all U.S. offices, officials and departments are now operating within a de facto status in name only under “Emergency War Power.”
Our constitutional form of government was technically dissolved and replaced by a so-called “democracy,” a government in actuality being a socialist-communist order under a new governor for America.
You must be thinking that I’ve lost my marbles by now—I don’t blame you. But, here come the facts. This chicanery occurred when authority was transferred and placed in the Office of the Secretary of Treasury under the governor of the International Monetary Fund. [Public Law 94-564].
In essence, the dollar was changed from a “promise to pay a dollar in silver or gold” to a “federal reserve note.” Now think about it: the dollar became a “promise,” not “money.”
The U.S. dollar is a debt instrument, nothing more than another debt obligation of the American people. And where is this obligation to be paid? You probably guessed it, to the Federal Reserve Bank.
Let’s tell it like it is. Federal Reserve notes are literally unsigned checks written on a closed account. It’s nothing more than inflatable paper creating more debt through inflation every time our currency is devalued.
Truth is, inflation is actually another tax; invisible, never seen, but a tax just the same. I don’t know about you, but I always thought that a “contract” under common law is only valid if it involves an exchange of some “good and valuable consideration.”
If that’s not enough to frost your pumpkins, check this out: The Federal Reserve System is a sovereign power structure separate and distinct from the U.S. government. It is in fact, a private corporation.
We, the people of these United States, owe this private corporation consisting of international bankers a mountain of debt. The collateral on this debt is our very own homes and properties.
We the people are nothing more than tenants and sharecroppers, renting our own property from the Federal Reserve Bank. Most Americans are mortgaged to the hilt with few or no assets, working harder and profiting less, constantly in debt to a private corporation they know little or nothing about.
BEAM ME UP. This has gone on way too long—WAKE UP AMERICA.
This is nothing more than economic slavery to a bunch of international fat cats. Our Constitution has been turned upside down, violated and discarded like toilet paper. Unbelievable.
It’s not rocket science folks—CONGRESS SHALL COIN MONEY, so mandates the Constitution. It’s very clear to me: the Federal Reserve System should be abolished, not just audited so the politicians can feel good, but abolished. Enough is enough. In closing I say “audit this.”
NOTICE
OF
NATIONAL EMERGENCY
In Reg: U.S. Senate Report No. 93-549 dated 11/19/73
(73 CIS Serial Set S963-2 607 Pages)
The United States went "Bankrupt" in 1933 and was declared so by President Roosevelt by Executive Orders 6073, 6102, 6111 and Executive Order 6260, (See: Senate Report 93-549, Pgs. 187 & 594) under the "Trading With The Enemy Act" (Sixty-Fifth Congress, Sess. I, Chs. 105, 106, October 6, 1917), and as codified at 12 U.S.C.A. 95a. The several States of the Union then pledged the faith and credit thereof to the aid of the National Government, and formed numerous socialist committees, such as the "Council of State Governments", "Social Security Administration", etc., to purportedly deal with the economic "Emergency." These Organizations operated under the "Declaration Of INTERdependence" of January 22, 1937 and published some of their activities in "The Book of the States." The 1937 Edition of the "Book of the States" openly declared that the people engaged in such activities as the Farming/Husbandry Industry had been reduced to mere feudal "Tenants" on their Land (Book Of The States, [1937], pg. 155). This of course was compounded by such activities as price fixing Wheat and Grains (7 U.S.C.A. 1332), quota regulations (7 U.S.C.A. 1371), and livestock products (7 U.S.C.A. 1903), which have been consistently below the costs of production, interest on loans and inflation of the paper "Bills of Credit", leaving the food producers and others in a state of peonage and involuntary servitude, constituting the taking of private property, for the benefit and use of others - without just compensation.
NOTE: The "Council Of State Governments" has now been absorbed into such things as the "National Conference Of Commissioners On Uniform State Laws" whose Headquarters Office is located at 676 North St., Clair Street, Suite 1700, Chicago, Illinois 60611 and "all" being "members of the Bar" and operating under a different "Constitution And By-Laws" has promulgated, lobbied for, passed, adjudicated and ordered the implementation and execution of their purported statutory provisions, to "help implement international treaties of the United States or where world uniformity would be desirable" (See: 1990/91 Reference Book "National Council Of Commissioners On Uniform State Laws", pg. 2). This is apparently what Robert Bork meant when he wrote: "we are governed not by law or elected representatives but by an unelected, unrepresentative, unaccountable committee of lawyers applying no will but their own" (See: The Tempting of America, Robert H. Bork, pg. 130).
The United States thereafter entered the second World War during which time the "League of Nations" was reinstituted under pretense of the "United Nations" and the "Bretton Woods Agreement" (See: 60 Stat. 1401). The United States, as a corporate body politic (artificial), came out of World War II in worse economic shape than when it entered, and in 1950 declared "Bankruptcy" and "Reorganization." The Reorganization is located in Title 5 of the United States Code Annotated. The "Explanation" at the beginning of 5 U.S.C.A. is most informative reading. The "Secretary of Treasury" was appointed as the "Receiver" in Bankruptcy (See: Reorganization Plan No. 26 5 U.S.C.A. 903, Public Law 94-564, the Legislative History thereof at pg. 5967). The United States went down the road and periodically filed for further Reorganization. Things and situations worsened, having done what they were Commanded NOT to do (See: Madison's Notes, Constitutional Convention, August 16, 1787; Federalist Papers No. 44), and in 1965 the Congress passed the "Coinage Act of 1965" completely debasing the Constitutional gold and silver Coin (See: 18 U.S.C.A. 331, 332; U.S. v. Marigold, 50 US 560, 13 L.Ed. 257). At the signing of the Coinage Act on July 23, 1965; Lyndon B. Johnson stated in his Press Release that:
"When I have signed this bill before me, we will have made the first fundamental change in our coinage in 173 years. The Coinage Act of 1965 supersedes the Act of 1792. And that Act had the title: `An Act Establishing a Mint and Regulating the Coinage of the United States ...
"Now I will sign this bill to make the first change in our coinage system since the 18th Century. To those members of Congress, who are here on this historic occasion, I want to assure you that in making this change from the 18th Century we have no idea of returning to it."
It is important to take cognizance of the fact that NO Constitutional Amendment was ever obtained to FUNDAMENTALLY CHANGE, amend, abridge or abolish the Constitutional mandates, provisions or prohibitions, but due to internal and external diversions surrounding the Viet Nam War, etc.; the usurpation and breach went basically unchallenged and unnoticed by the general public at large, who became "a wealthy man's cannon fodder or cheap source of slave labor" (See: Silent Weapons For Quiet Wars, TM-SW7905.1, Pgs. 6-9, 12, 13, & 56). Congress was clearly delegated the Power and Authority to regulate and maintain the true and inherent "value" of the Coin within the scope and purview of Article I, Section 8, Clauses 5 & 6 and Article I, Section 10, Clause 1 of the ordained (1787) Constitution, and further, under a corresponding duty and obligation to maintain said gold and silver Coin and Foreign Coin at and within the necessary and proper "equal weights and measures" clause (See also: Holy Bible; Deuteronomy 25:13-16; Public Law 97-289; 96 Stat. 1211).
Those exercising the Offices of the several States, in equal measure, knew such "De Facto Transitions" were unlawful and unauthorized, but sanctioned, implemented and enforced the complete debauch and the resulting "governmental, social, industrial economic change" in the "De Jure" States and in the United States of America (See: Public Law 94-564, Legislative History thereof, pg. 5936, 5945; 31 U.S.C.A. 314, 321, 5112; C.R.S. [Colorado Revised Statutes] 11-61-101; C.R.S. 39-22-103.5; and C.R.S. 18-11-203), and were and are now under the delusion that they can do both directly and indirectly what were absolutely prohibited from doing (See also: Federalist Papers No. 44; Craig v. Missouri, 4 Peters 903).
In 1966, Congress being severally compromised, passed the "Federal Tax Lien Act of 1966", by which the entire taxing and monetary system i.e. "Essential Engine" (See: Federalist Papers No. 31) was placed under the Uniform Commercial Code (See: Public Law 89-719; and the Legislative History thereof, pg. 3722; also see: C.R.S. 5-1-106). The Uniform Commercial Code was, of course, promulgated by the "National Conference of Commissioners On Uniform State Laws" in collusion with the "American Law Institute" for the "banking and business interests" (See: "Handbook Of The National Conference Of Commissioners On Uniform State Laws" (1966 ed.) pgs. 152-153). The United States being engaged in numerous U.N. conflicts including the Korean and the Viet Nam wars of which were under the direction of the United Nations (See: 22 U.S.C.A. 287d), and agreeing to foot the bill (See: 22 U.S.C.A. 287j), and not being able to honor their obligations and hypothecated debt credit; openly and publicly dishonored and disavowed their "Notes" and "obligations" (12 U.S.C.A. 411) i.e. "Federal Reserve Notes" through Public Law 90-269, section 2; 82 Stat. 50 to wit:
"Sec. 2. The first sentence of section 15 of the Federal Reserve Act (12 U.S.C. 391) is amended by striking `and the funds provided in this Act for the redemption of Federal Reserve Notes' ..."
Things steadily grew worse and on March 28, 1970; President Nixon issued Proclamation No. 3972 declaring an "emergency" because the Postal Employees struck against the de facto government (?) for higher pay, due to inflation of the paper "Bills of Credit" (See: Senate Report No. 93-549, pg. 596). President Nixon placed the U.S. Postal Department under control of the "Department of Defense" (See: Department Of The Army Field Manual, FM 41-10 (1969 ed.)).
NOTE: The System had been faltering for a decade, but the bench mark date of the collapse is put at August 15, 1971. On this day, President Nixon reversed the U.S. International Monetary Policy by officially declaring the non-convertibility of the U.S. Dollar [F.R.N.] into Gold.
See also:
Public Law 94-564, the Legislative History thereof at pg. 5937; Senate Report No. 93-549, the "Forward" at pg. III; Presidential Proclamation No. 4074, at page 597; 31 U.S.C.A. 314, 5112
On September 21, 1973; the Congress passed Public Law 93-110, amending the "Bretton Woods Par Value Modification Act" (82 Stat. 116; 31 U.S.C.A. 449) and reiterated the "Emergency" (12 U.S.C.A. 94a; and section 8 of the "Bretton Woods Agreements Act" of 1945 [22 U.S.C.A. 286f]), which included "reports on foreign currency transactions" (See also: Executive Order No. 10033). This "Act" further declared in Section 2(b) that:
"No provision of any law in effect on the date of enactment of this Act, and no rule, regulation, or order under authority of any such law, may be construed to prohibit any person from purchasing, holding, selling, or otherwise dealing with gold."
On January 19, 1976; Marjorie S. Holt noted for the record, a second "Declaration Of INTERdependence" and clearly identified the United Nations as a "Communist" organization, and that they were seeking both production and monetary control over the Union and People through International Organization promoting the "New World Order" (See: 8 U.S.C.A. 1101(40); see also: 50 U.S.C.A. 781, 783).
The social/economic situation worsened as noted in the Complaint/Petition filed in the U.S. Court of Claims under docket No. 41-76 on February 11, 1976 by 44 Federal Judges, (Atkins et.al. v. U.S.). Atkins et.al. complained that:
"As a result of inflation, the compensation of federal judges has been substantially diminished each year since 1969, causing direct and continuing monetary harm to plaintiffs ... the real value of the dollar decreased by approximately 34.5 percent from March 15, 1969 to October 1, 1975 ... . As a result, plaintiffs have suffered an unconstitutional deprivation of earnings"
and in the prayer for relief claimed:
"damages for the constitutional violations enumerated above, measured as the diminution of his earnings for the entire period since March 9, 1969."
It is quite apparent that the persons holding and enjoying Offices of Public Trust, Honor, and/or Profit knew of the emergency emergent problem and sought protection for themselves, to the damage and injury of the People and Children, who were classified as "a club that has many other members" who "have no remedy." And knowing that "heinous" acts had been committed, stated that they [judges/lawyers] would not apply the Law, nor would any substantive remedy be applied ("checked" more or less, but never stopped) "until all of us [judges] are dead." Such persons "Fraudulently" swore on "Oath" to uphold, defend, and preserve the sovereignty of the Nation and several Republican States of the Union, and breached the Duty to protect the People/Citizens and their "Posterity" from fraud, imposition, avarice, and stealthy encroachment (See: Atkins et. al. v. U.S., 556 F2d 1028 @ 1072, 1074; The Tempting Of America (supra.) pgs. 155-159; also see: 5 U.S.C.A. 5305, 5335; Senate Report No. 93-549, pgs. 69-71; C.R.S. 24-75-101). This is verified in Public Law 94-564, and the Legislative History thereof at page 5944 which states:
"Moving to a floating exchange rate for international commerce means
private enterprise and not central governments bear the risk of currency fluctuations."
Numerous serious debates were held in Congress, including but not limited to, Tuesday, July 27, 1976 (See: Congressional Record - House, July 27, 1976), concerning the International Financial Institutions and its operations. Representative, Ron Paul, Chairman of the House Banking Committee, made numerous references to the true practices of the "International" financial institutions including, but not limited to, the conversion of $27,000,000 (27 million) in gold, contributed by the United States as part of its "quota obligations," which the International Monetary Fund (Governor-Secretary of Treasury) sold (See: Public Law 94-564, the Legislative History thereof at pages 5945 & 5946), under some very questionable terms and concessions (See also: "The Ron Paul Money Book," (1991), by Ron Paul, Plantation Publishing, 837 W. Plantation, Clute, Texas 77531).
On October 28, 1977; the passage of Public Law 95-147, (91 Stat. 1227) declared most banking institutions, including State banks, to be under direction and control of the corporate "Governor" of the "International Monetary Fund" (See: Public Law 94-564, the Legislative History thereof at page 5942; United States Manual 1990/91, pgs. 480-481). The Act further declared that:
"(2) Section 10(a) of the Gold Reserve Act of 1934 (31 U.S.C. 822a(b)) is amended by striking out the phrase `stabilizing the exchange value of the dollar' ..."
"(c) The joint resolution entitled `Joint resolution to assure uniform value to the coins and currencies of the United States', approved June 5, 1933 (31 U.S.C. 463) shall not apply to obligations issued on or after the date of enactment of this section."
The United States, as Corporator, (22 U.S.C.A. 286e, et. seq.) and "State" (C.R.S. 24-36-104, C.R.S. 24-60-1301(h)) had declared "Insolvency" (See: 26 I.R.C. 165(g)(1); U.C.C. 1-201(23); C.R.S. 39-22-103.5; Westfall v. Braley, 10 Ohio 188; 75 Am.Dec. 509; Adams v. Richardson, 337 S.W.2d 911; Ward v. Smith, 7 Wall. 447). A permanent state of "Emergency" was instituted, formed and erected within the Union through the contrivances, fraud, and avarice of the International Financial Institutions, Organizations, Corporations, and Associations, including the Federal Reserve; their "fiscal and depository agent" (22 U.S.C.A. 286d). This has led to such "Emergency" legislation as the "Public Debt Limit-Balance Budget And Emergency Deficit Control Act of 1985" (Public Law 99-177) etc..
The government, by becoming a corporator, (See: 22 U.S.C.A. 286e) lays down its sovereignty and takes on the status that of a private citizen. It can exercise no power which is not derived from the corporate charter (See: The Bank of the United States v. Planters Bank of Georgia, 6 L.Ed. ( Wheat) 244; U.S. v. Burr, 309 US 242). The real party in interest is not the de jure "United States of America" or "State;" but "The Bank" and "The Fund" (22 U.S.C.A. 286, et. seq., C.R.S. 11-60-103). The acts committed under fraud, force, and seizures are many times done under "Letters of Marque and Reprisal" i.e. "recapture" (See: 31 U.S.C.A. 5323). Such principles as: "Fraud and Justice never dwell together" (Wingate's Maxims 680) and: "A right of action cannot arise out of fraud" (Broom's Maxims 297, 729; Cowper's Reports 343; 5 Scott's New Reports 558; 10 Mass. 276; 38 Fed. 800) are to high of a thought concept, as is "Due Process," "Just Compensation," and "Justice" itself. "Honor" is earned by honesty and integrity, not under false and fraudulent pretenses, nor will the color of the cloth one wears cover-up the usurpations, lies, trickery, and deceits. When "Black" is fraudulently declared to be "White;" not all will live in darkness. As astutely observed by Will Rogers: "There are men running governments who shouldn't be allowed to play with matches" and it is as applicable today as Jesus' statements about Lawyers and Judges.
The contrived "emergency" has created numerous abuses and usurpations, and abridgments of delegated Powers and Authority. As stated in Senate Report 93-549:
"These proclamations give force to 470 provisions of Federal law. These hundreds of statutes delegate to the President extraordinary powers, ordinarily exercised by the Congress in a host of all-encompassing manners. This vast range of powers, taken together, confer enough authority to rule the country without reference to normal constitutional process.
"Under the powers delegated by these statutes, the President may: seize property; organize and control the means of production; seize commodities; assign military forces abroad; institute martial law; seize and control all transportation and communication; regulate the operation of private enterprise; restrict travel; and in a plethora of particular ways, control the lives of all American citizens." (See also: "Forward" at pg. III)
The "Introduction," on page 1, begins with a phenomenal declaration, to wit:
"A majority of the people of the United States have lived all of their lives under emergency rule. For 40 years, freedoms and governmental procedures guaranteed by the Constitution have in varying degrees been abridged by laws brought into force by states of national emergency ..."
According to the research done in 16 Am.Jur.2d 71, 82; no "emergency" justifies a violation of any constitutional provision. Argumentum: "Supremacy Clause" and "Separation of Powers," it is clearly admitted in Senate Report No. 93-549 that abridgment has occurred. The statements heard in the Federal and State Tribunals, on numerous occasions, that Constitutional arguments are "immaterial," "frivolous," etc., is based upon the concealment, furtherance and compounding of the Frauds and "Emergency" created and sustained by the "Expatriated," ALIENS of the United Nations and its Organizations, Corporations, and Associations (See: Letter, "Insight Magazine," February 18, 1991, pg. 7, Lowell L. Flanders, President, U.N. Staff Union, New York). U.S. Code Title 8, Section 1481 is one of the controlling statutes on expatriation as is 22 U.S.C.A. 611, 612 & 613 and 50 U.S.C.A. 781.
The Internal Revenue Service entered into a "service agreement" with the U.S. Treasury Department (See: Public Law 94-564, the Legislative History there of at pg. 5967; Reorganization Plan No. 26) and the "Agency For International Development" pursuant to Treasury Delegation Order No. 91. The "Agency For International Development" is an international paramilitary operation (See: Department Of The Army Field Manual, FM 41-10, (1969) pgs. 1-4, Sec. 1-7(b), 1-6, 1-10(7)(c)(1); 22 U.S.C.A. 284) and includes such activities as "Assumption of full or partial executive, legislative, and judicial authority over a country or area" (See: FM 41-10, pg. 1-7, Section 110(7)(c)(4)); see also: "Agreement Between The United Nations And The United States Of America Regarding The Headquarters Of The United Nations," Sections 7(d), (8); 22 U.S.C.A. 287 (1979 ed) at pg. 241). It is to be further observed that the "Agreement" regarding the "Headquarters District of the United Nations" was NOT agreed to (See: Congressional Record - Senate, December 13, 1967, Mr. Thurmond) and is illegally within the Country in the first instant. The Internal Revenue Service Agreement (Treasury Delegation Order No. 91) may be found at the: U.S. Department of Treasury, Office of the Assistant General Counsel (International Affairs), 1500 Pennsylvania Ave., N.W., Washington, D.C. 20220.
The International Organizational intents, purposes and activities include complete control of "Public Finance" i.e. "control, supervision, and audit of indigenous fiscal resources; budget practices, taxation, expenditures of public funds, currency issues, and banking agencies and affiliates" (See: FM 41-10, pgs. 2-10 thru 2-31, Section 251, Public Finance). This, of course, complies with "Silent Weapons For Quiet Wars" (Research Technical Manual TM-SW7905.1) which discloses a declaration of war upon the American people (See: pgs. 3 & 7), monetary control by the Internationalist, through information etc., solicited and collected by the Internal Revenue Service (See: TM-SW7905.1, pg. 48, also see: 22 U.S.C.A. 286f & Executive Order No. 10033; 26 U.S.C.A. 6103(k)(4)) and who is operating and enforcing the seditious International program (See: TM-SW7905.1, pg. 52). The 1985 Edition of the Department Of Army Field Manual, FM 41-10 further describes the International "Civil Affairs" operations. At page 3-6 it is admitted that the A.I.D. is autonomous and under direction of the "International Development Cooperation Agency," and at page 3-8 that the operation is "paramilitary." The International Organizations(s) intents and purposes was to promote, implement, and enforce a "DICTATORSHIP OVER FINANCE IN THE UNITED STATES" (See: Senate Report No. 93-549, pg. 186).
It appears from the documentary evidence that the Agents of the Internal Revenue Service, etc., are "Agents of a Foreign Principal" within the meaning and intent of the "Foreign Agents Registration Act of 1938." They are directed and controlled by the corporate "Governor" of "The Fund" a/k/a "Secretary of Treasury" (See: Public Law 94-564, supra., pg. 5942; U.S. Government Manual 1990/91, pgs. 480 & 481; 26 U.S.C.A. 7761(a)(11); Treasury Delegation Order No. 150-10), and the corporate "Governor" of "The bank" (22 U.S.C.A. 286, 286a) acting as "information-service employees" (22 U.S.C.A. 611(c)(ii)) have been and does now solicit, collect, disburse or dispense contribution (Tax-pecuniary contribution, Blacks Law Dict. 5th ed.), loans, money, or other things of value for or in interest of such foreign principal (22 U.S.C.A. 611(c)(iii)), and they have entered into agreements with a "Foreign Principal" pursuant to Treasury Delegation Order No. 91 i.e. the "Agency For International Development" (See: 22 U.S.C.A. 611(c)(2)). The Internal Revenue Service is also an agency of the "International Criminal Police Organization" and solicits and collects information for 150 Foreign Powers (See: 22 U.S.C.A. 263a; The United States Government Manual, 1990/91, pg. 385; See also: "The Ron Paul Money Book", pgs. 250-251). It should be further noted that Congress has appropriated, transferred, and converted vast sums to Foreign Powers (See: 22 U.S.C.A. 262c(b)) and has entered into numerous Foreign Taxing Treaties (conventions) (See: 22 U.S.C.A. 285g, 287j) and other Agreements, which are solicited and collected pursuant to 26 U.S.C.A. 6103(k)(4). Along with the other documentary evidence submitted herein, this should absolve any further doubt as to the true character of the party. Such restrictions as: "For the general welfare and common defense of the United States" (See: U.S. Const., (1787), I:8:1) apparently aren't applicable, and the fraudulent hypothecated debt credit will be merely added to the insolvent nature of the continual "emergency", and the reciprocal social/economic repercussions laid upon present and future generations.
Among other reasons for lack of authority to act, such as a "Foreign Agents Registration Statement" (22 U.S.C.A. 612; 18 U.S.C.A. 219, 951), military authority cannot be imposed into civil affairs (See: Department Of The Army Pamphlet 27100-70; Military Law Review, Vol. 70). The United Nations Charter (Article 2, Section 7) further prohibits the U.N. from: "intervening in matters which are essentially within the domestic jurisdiction of any state ...". Korea, Viet Nam, Ethiopia, Angola, Kuwait, etc., are evidence enough of the "BAD FAITH" of the United Nations and its Organizations, Corporations, and Associations, not to mention the seizing of two day care centers in the State of Minnesota by their agents, and holding the children as collateral/hostages for payment/ransom of their fraudulent, dishonored, hypothecated debt credit and worthless securities. Such is the "Rule Of Law" (as envisioned by the Founders) of the United Nations. Such is Communist terrorism, despotism, and tyranny. ALL WERE AND ARE OUTLAWED HERE IN THE UNITED STATES OF AMERICA.
It is quite apparent that the "Treasonous" and "Seditious" are brewing up a storm of untold magnitude. President Bush's public address of September 11, 1991 (See: Weekly Compilation Of Presidential Documents) should further qualify what is being said here. He admitted "INTERdependence" (See also: Public Law 94-564, the Legislative History thereof at page 5950), "New World Order" (See also: Extension Of Remarks, January 19, 1976, Marjorie S. Holt; 8 U.S.C.A. 1101(40)), affiliation and collusion with the Soviet Union Oligarchy (50 U.S.C.A. 781), direction by the U.N. (22 U.S.C.A. 611) etc.. You might also find it interesting that Treasury Delegation Order No. 92 states that the I.R.S. is trained under direction of the Division of "Human Resources" (U.N.) and the Commissioner (INTERNATIONAL) by the "Office Of Personnel Management." In the 1979 Edition of 22 U.S.C.A. 287 ("The United Nations" at page 248); you will find Executive Order No. 10422. The "Office of Personnel Management" is under direction of the Secretary General of the United Nations. And as stated previously; the I.R.S. is also a member of a one hundred fifty (150) Nation pact called the "International Criminal Police Organization" (22 U.S.C.A. 263a). The "Memorandum & Agreement" between the Secretary of Treasury/Corporate Governor of "The Fund" and "The Bank" and the "Office of the U.S. Attorney General" would indicate that the Attorney General and his associates are soliciting and collecting information for "Foreign Principals" (See also: The United States government Manual, (1990/91), pg. 385; also see: The Ron Paul Money Book, (supra.), pg. 250, 251).
It is worthy of note that an Attorney/Representative is required to file a "Foreign Agents Registration Statement" pursuant to 22 U.S.C.A. 611(c)(1)(iv), 612, if representing the interests of a "Foreign Principal" or Power (See: 22 U.S.C.A. 613; Rabinowitz v. Kennedy, 376 US 605, 11 L.Ed.2d 940; 18 U.S.C.A. 219, 951).
On January 17, 1980; the President and the Senate confirmed another "Constitution", namely, the "Constitution Of The United Nations Industrial Development Organization", found at Senate, Treaty Document No. 97-19, 97th Congress, 1st Session. A perusal of this "Foreign Constitution" should more than qualify the internationalist intents. The "Preamble;" Article 1 ("Objectives"), and Article 2 ("Functions"), clearly evidences their intent to direct, control, finance, and subsidize all "natural and human resources" and "agro-related as well as basic industries," through "dynamic social and economic changes" "with a view to assisting in the establishment of a new international economic order." The high flown rhetoric is obviously of "Communist" origin and intents. An unelected, unrepresentative, unaccountable oligarchy of expatriates and aliens who fraudulently claim in the "Preamble" that they intend to establish "rational and equitable international economic relations", yet they openly declared that they no longer "stabilize the value of the dollar" nor "assure the value of the coin and currency of the United States." This is purely misrepresentation, deceit, and fraud (See: Public Law 95-147, 91 Stat. 1227, at pg. 1229). This was augmented by Public Law 101-167, 103 Stat. 1195, which discloses massive appropriations of hypothecated debt credit for the general welfare and common defense of other Foreign Powers, including "Communist" countries or satellites, International control of natural and human resources, etc.. A "Resource" is a claim of "property" and when related to people constitutes "slavery."
It is now necessary to ask which Constitution they are operating under. The "Constitution For The Newstates Of The United States," which was locates at Liberty Lobby, 100 Independence Ave., S.E., Washington, D.C. 20003; was the subject matter of the book entitled: "The Emerging Constitution" by Rexford G. Tugwell, which was accomplished under the auspices of the Rockefeller tax-exempt foundation called the "Center For The Study Of Democratic Institutions." The People and Citizens of this Nation were forewarned against formation of "Democracies." "Democracies have ever been the spectacles of turbulence and contention; have ever been found incompatible with personal security or the rights of property; and have in general been as short in their lives as they have been violent in their deaths." [The Federalist Papers No. 10; The Law (Fredrick Bastiat); Code Of Professional Responsibility (Preamble)]
This Alien Constitution, however, has nothing to do with democracy in reality. It is the basis of and for a despotic, tyrannical oligarchy. At Article I ("Rights and Responsibilities"); Section 1 and 15 admits to the "emergency." The Rights of expression, communication, movement, assembly, petition and Habeas Corpus are all excepted from being exercised under and in a "declared emergency." The "Constitution for the Newstates of America" openly declares, among other seditious things and delusions that: "Until each indicated change in the government shall have been completed, the provisions of the existing Constitution (U.S. Constitution) and the organs of government shall be in effect." [The Constitution of the New States, Article XII,
Section 4].
This is apparently what Burger was promoting in 1976, after he resigned as Supreme Court Justice and took up the promotion of being a member of the "Constitutional Convention." No trial by jury is mentioned, "JUST" Compensation has been removed, along with being informed of the "Nature & Cause of the Accusation," etc., and every one will, of course, participate in the "democracy." This Constitution is but a reiteration of the Communist Doctrines, intents and purposes, and clearly establishes a "Police Power" State, under direction and control of a self appointed oligarchy.
Apparently the present operation of the "de facto" government is under Foreign/Alien Constitutions, Laws, Rules, and Regulations. The overthrow of the "essential engine" declared in and by the ordained and established Constitution for the United States of America (1787), and by and under the "Bill of Rights" (1791) is obvious. The covert procedure used to implement and enforce these Foreign Constitutions, Laws, Procedures, Rules, Regulations, etc., has not, to our knowledge, been collected and assimilated nor presented as evidence to establish seditious collusion and conspiracy.
Fortunately and Unfortunately; it is necessary to seek, obtain, and present EVIDENCE to sustain a convection and/or judgment. Our patience and tolerance for those who pervert the very necessary and basic foundations of society has been pushed to insufferable levels. They have "fundamentally" changed the form and substance of the "de jure" Republican form of Government, exhibited a willful and wanton disregard for the Rights, Safety, and Property of others, evinced a despotic design to reduce the People to slavery, peonage and involuntary servitude, under a fraudulent, tyrannical, seditious foreign oligarchy, with intent and purpose to institute, erect and form a "Dictatorship" over the Inhabitants and our Posterity. They have completely debauched the de jure monetary system, destroyed the livelihood and lives of thousands, aided and abetted our enemies, turned Sodomites lose amongst our young. They have implemented foreign laws, rules, regulations, and procedures within the body of the Country, incited insurrection, rebellion, sedition, and anarchy within the de jure society. The have illegally entered onto our land, taken false Oaths, entered into seditious Foreign Constitutions, Agreements, Pacts, Confederations, and Alliances, and under pretense of "emergency," which they themselves have created, promoted and furthered; formed a multitude of offices and retained those of Alien Allegiance to perpetuate their frauds and to eat out the substance of the good and productive People of our land. They have arbitrarily dismissed and held mock trials for those who trespassed upon our lives, Liberties, Properties, and Families and endangered our Peace, Safety, Welfare, and Dignity. The damage, injury, and costs to our Rights, Liberties, and Posterity have been higher than mere money can repay. They have done what they were COMMANDED NOT TO DO. The time for just correction is NOW!
Next week—AIPAC. You don’t want to miss it.
James A. (Jim) Traficant, Jr. was born in Youngstown, Ohio on May 8, 1941. He received B.S. and M.S. degrees from the University of Pittsburgh, where he was a well-known football star. He also received a M.S. degree from Youngstown State University in 1976. For ten years he served as executive director of the Mahoning County (Ohio) Drug Program and from 1981-1985 he served as sheriff of Mahoning County, prior to his election to the U.S. Congress as a Democrat in 1984. He was re-elected by overwhelming margins every year up until 2002 when, following his conviction on trumped up corruption charges, he was expelled from the House of Representatives. Despite his conviction and expulsion and being sent to prison for a seven year term Traficant still won 15% of the vote running for re-election to the House in the 2002 election as an independent. He recently completed a seven-year prison sentence, having refused to seek a pardon or clemency, refusing to admit to or apologize for crimes he did not commit.
Sabotage of the FASB by banks
By Ryan Grim
Amid the ongoing financial regulation overhaul, the banking industry is hoping to pull off a quiet power grab that has eluded its grasp since the Great Depression, by stripping the independence of the board that sets financial accounting standards.
The move could effectively let banks set their own accounting standards in rough economic times.
Astonishingly, at a time when the public is crying out for greater regulation to limit excessive risk-taking by financial institutions, the banks are trying to get Congress to agree that the next time there's a big downturn, they should have the ability to alter their accounting standards -- essentially, fudge the numbers -- so that the public and investors won't be able to tell how insolvent they really are. By ignoring their declining asset values, they can avoid the standard requirement of raising more capital.
The mechanism is contained in an amendment set to be introduced in mid-November by Rep. Ed Perlmutter (D-Colo.) that would move final authority over the Financial Accounting Standards Board (FASB) from the Securities and Exchange Commission to a new body, a so-called "oversight" board, that would include the officials charged with managing systemic risks to the financial markets.
These regulators would have the authority to override FASB's accounting guidelines by taking into account economic conditions.
The move is so radical that it has split corporate America. The bankers and members of Congress who support it have earned themselves an unlikely enemy: the U.S. Chamber of Commerce.
A typical business or investor, after all, prefers honest, independent accounting, because they buy and sell real things based on real value.
Amid the ongoing financial regulation overhaul, the banking industry is hoping to pull off a quiet power grab that has eluded its grasp since the Great Depression, by stripping the independence of the board that sets financial accounting standards.
The move could effectively let banks set their own accounting standards in rough economic times.
Astonishingly, at a time when the public is crying out for greater regulation to limit excessive risk-taking by financial institutions, the banks are trying to get Congress to agree that the next time there's a big downturn, they should have the ability to alter their accounting standards -- essentially, fudge the numbers -- so that the public and investors won't be able to tell how insolvent they really are. By ignoring their declining asset values, they can avoid the standard requirement of raising more capital.
The mechanism is contained in an amendment set to be introduced in mid-November by Rep. Ed Perlmutter (D-Colo.) that would move final authority over the Financial Accounting Standards Board (FASB) from the Securities and Exchange Commission to a new body, a so-called "oversight" board, that would include the officials charged with managing systemic risks to the financial markets.
These regulators would have the authority to override FASB's accounting guidelines by taking into account economic conditions.
The move is so radical that it has split corporate America. The bankers and members of Congress who support it have earned themselves an unlikely enemy: the U.S. Chamber of Commerce.
A typical business or investor, after all, prefers honest, independent accounting, because they buy and sell real things based on real value.
Friday, November 6, 2009
1 shooter 43 victims, I think not!!
The suspected shooter, Maj. Nidal Malik Hasan, was on a ventilator and unconscious in a hospital after being shot four times during the shootings at the Army's sprawling Fort Hood, post officials said. In the early chaos after the shootings, authorities believed they had killed him, only to discover later that he had survived. C-J Oh crap, we wanted him dead C-J
In Washington, a senior U.S. official said authorities at Fort Hood initially thought one of the victims who had been shot and killed was the shooter. The mistake resulted in a delay of several hours in identifying Hasan as the alleged assailant. C-J Oh crap again, What about the finger prints on the guns they belong to a real dead guy!! C-J
C-J
There was no delay. Hasan, was accused, tried and convicted within minutes by the mainstream press reading from identical scripts.
Double tapped twice, WTF..where did we go wrong??
This is a set up. I'm waiting for the military to describe him as a member of the oath keepers, too. If he survives he will be placed in solitary confinement and described as a suicidal fanatic. He will never see the light of day nor will the truth. The real shooters will never be revealed as they have already been released and returned to their special ops units.
There will be more than two guns, because the forensics will show more than 1 gun, with shots coming from multiple directions and the 2X double tap will show a third gun, at least. Watch how the story changes. An independent investigation not carried out by government employees looking to pin this mass murder on a Muslim would probably show all kinds of unusual conficts with the official story. I hope the families of the victims are able to ask questions without "official" coersion. The finger prints on the guns will not be his because they have already been linked to a dead man. Oh Oh!! looks like someone got their teats in a wringer, again.
Whoever has the tapes of the carnage and was smart enough to hide them will be promoted from Corporal to Lt. General, within a few weeks C-J
The "Official" story has already morphed: Now General Cone says "only one of Hasan's hand guns was a semi automatic pistol and that explains his high rate of fire!!" Give me a break General Cone, 43 victims, high rate of fire and only 1 of his "two" guns was a semi auto. When you searched Hasan's home you found a revolver with his finger prints on it and substituted that one for another semi-auto already in evidence that didn't have his finger prints on it, the new gun now becomes your new "real" evidence. OR, maybe one of the guns with his prints on it was linked to bullets in Hasan's body. That's not a good sign for your investigation, he was double tapped with one of the guns with his finger prints on it.. This gets stranger and stranger, doesn't it. Once you tell a lie you have to keep telling lies and pretty soon you will be in a corner.
General Cone is trying to bolster a "fact" that some of the victims were shot with a revolver, not a semi auto pistol. I would like to see the point of origin of all shots and how many of the bullets in Hasan were 9mm semi autos and/or 38 specials. I would like to see the barrel striations and location of the shell cases relative to Hasan's body position. How many of the bullets in Hasan were from close range double tap style.
Now General Cone is saying that Hasan emptied his apartment before the "incident". I would empty my apartment before being deployed, wouldn't you? It's the normal thing to do before being deployed. Or it could mean that his stuff was confiscated by the "heroes", so there wouldn't be any pesky conflicting evidence. Either way the media is trying to spin it and say that this is; "more evidence Hasan did it". Don't trust the media, they are "owned" by the government.
This is the lone gunman theory all over again, but this time an officer shoots 43 enlisted personnel. Hey they got away with it when they killed one guy, a President!! Why not make up another story where a lone gunman with 1 9mm semi-auto Beretta M92 pistol and a 5 shot Ruger SP101 revolver shoots 43 people and kills 13 before being gunned down by a Hero who got him at short range (the bad 2X Double Tap) while he was reloading. The whole cock and bull story from General Cone immediatly becomes suspicious because it's too preposterous to believe, unless you are a Becker Head.
The military has a poor record of reporting the truth, like WMDs, Jessica Lynch, Pat Tillman and others. The Hasan story is of a similar genre.
A baracks revolt, at one or more locations, would have more credability than the lone gunman theory, but the Military can't back down now.
In Washington, a senior U.S. official said authorities at Fort Hood initially thought one of the victims who had been shot and killed was the shooter. The mistake resulted in a delay of several hours in identifying Hasan as the alleged assailant. C-J Oh crap again, What about the finger prints on the guns they belong to a real dead guy!! C-J
C-J
There was no delay. Hasan, was accused, tried and convicted within minutes by the mainstream press reading from identical scripts.
Double tapped twice, WTF..where did we go wrong??
This is a set up. I'm waiting for the military to describe him as a member of the oath keepers, too. If he survives he will be placed in solitary confinement and described as a suicidal fanatic. He will never see the light of day nor will the truth. The real shooters will never be revealed as they have already been released and returned to their special ops units.
There will be more than two guns, because the forensics will show more than 1 gun, with shots coming from multiple directions and the 2X double tap will show a third gun, at least. Watch how the story changes. An independent investigation not carried out by government employees looking to pin this mass murder on a Muslim would probably show all kinds of unusual conficts with the official story. I hope the families of the victims are able to ask questions without "official" coersion. The finger prints on the guns will not be his because they have already been linked to a dead man. Oh Oh!! looks like someone got their teats in a wringer, again.
Whoever has the tapes of the carnage and was smart enough to hide them will be promoted from Corporal to Lt. General, within a few weeks C-J
The "Official" story has already morphed: Now General Cone says "only one of Hasan's hand guns was a semi automatic pistol and that explains his high rate of fire!!" Give me a break General Cone, 43 victims, high rate of fire and only 1 of his "two" guns was a semi auto. When you searched Hasan's home you found a revolver with his finger prints on it and substituted that one for another semi-auto already in evidence that didn't have his finger prints on it, the new gun now becomes your new "real" evidence. OR, maybe one of the guns with his prints on it was linked to bullets in Hasan's body. That's not a good sign for your investigation, he was double tapped with one of the guns with his finger prints on it.. This gets stranger and stranger, doesn't it. Once you tell a lie you have to keep telling lies and pretty soon you will be in a corner.
General Cone is trying to bolster a "fact" that some of the victims were shot with a revolver, not a semi auto pistol. I would like to see the point of origin of all shots and how many of the bullets in Hasan were 9mm semi autos and/or 38 specials. I would like to see the barrel striations and location of the shell cases relative to Hasan's body position. How many of the bullets in Hasan were from close range double tap style.
Now General Cone is saying that Hasan emptied his apartment before the "incident". I would empty my apartment before being deployed, wouldn't you? It's the normal thing to do before being deployed. Or it could mean that his stuff was confiscated by the "heroes", so there wouldn't be any pesky conflicting evidence. Either way the media is trying to spin it and say that this is; "more evidence Hasan did it". Don't trust the media, they are "owned" by the government.
This is the lone gunman theory all over again, but this time an officer shoots 43 enlisted personnel. Hey they got away with it when they killed one guy, a President!! Why not make up another story where a lone gunman with 1 9mm semi-auto Beretta M92 pistol and a 5 shot Ruger SP101 revolver shoots 43 people and kills 13 before being gunned down by a Hero who got him at short range (the bad 2X Double Tap) while he was reloading. The whole cock and bull story from General Cone immediatly becomes suspicious because it's too preposterous to believe, unless you are a Becker Head.
The military has a poor record of reporting the truth, like WMDs, Jessica Lynch, Pat Tillman and others. The Hasan story is of a similar genre.
A baracks revolt, at one or more locations, would have more credability than the lone gunman theory, but the Military can't back down now.
Thursday, November 5, 2009
Small banks didn't cause the mess, but no bailout for them
C-J
And my experience was that the small banks didn't use commissioned loan production staff and they never tried to pressure the appraiser to hit the numbers. This was not true with the large banks like WELLS FARGO BANK which constantly harassed the appraisers with grinder reviews, witholding payment and benching.
The Sacramento Bee a subsidiary news paper of McClatchy. wrote an article in 2002 about the dangers that were being created by pressurized appraisals. In Sept. 2005 I had the unmitigated gall to tell WELLS FARGO BANK that the market indicators were showing decreasing demand and higher inventories. I was told to shut up because they know what they are doing. I'M SURE THEY DID, they knew they were placing America's security at risk for their own bloated bonus checks.
I have to wonder why there is no blood on the street?
C-J
By Kevin G. Hall | McClatchy Newspapers
WASHINGTON — Just as the housing sector appears to be recovering, gathering problems in the commercial real estate market threaten to become a new drag on the economy.
The collapse in home prices sunk many big banks last year, but this year smaller lenders and community banks are going bust at an alarming rate because of their exposure to souring commercial real estate loans.
At least 115 banks have failed this year, many because of their exposure to deteriorating commercial loans for retail space, office buildings and industrial parks. As of June 30, another 416 institutions the Federal Deposit Insurance Corp. was monitoring as "problem" lenders.
How dire is it? Unable to find enough sound banks to acquire failing banks, the FDIC relaxed its rules earlier this year to allow private-equity funds to bid for troubled lenders.
Banks hold about 50 percent of all outstanding commercial real estate loans, many of them smaller regional players. Another 20 percent of commercial real estate loans have been pooled together by investment banks and sold as commercial mortgage bonds, which also are experiencing high default rates.
The rising rate of delinquency and default in commercial real estate jeopardizes efforts by the Treasury Department and the Federal Reserve to get much-needed lending flowing again.
"When you ask people at the Fed what the biggest worries are, this (commercial real estate) is at the top of their list," said Laurence Meyer, a Fed governor from 1996 to 2002. "The danger here is not the direct macroeconomic impact but the potential impact on the safety and soundness of the banking system."
After the political uproar over last year's $700 billion taxpayer bailout of banks, however, there's little appetite in Congress for additional taxpayer rescues of financial firms of any size. So regulators late last week attacked the problem another way: They encouraged banks to modify the terms of their commercial real estate, or CRE loans.
"While CRE borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity to repay their debts," the joint guidance from bank regulators said.
Regulators also relaxed reporting requirements so that small and mid-sized banks don't have to value these loans at today's deflated real estate prices.
"One of the problems was that even performing commercial real estate loans, where the borrower is still making payments, were being forced to be partially written down," said Paul Merski, the chief economist and senior vice president for the trade group Independent Community Bankers of America.
That group would like to see some of last year's bailout money given to smaller banks, under less onerous terms, since community banks are suffering from the broad economic downturn, not their own reckless behavior.
"The government has been picking winners and losers, and in many cases the losers have been too small to save," Merski said. "We've been asking for some fairness in that whole process."
Smaller banks' problems create problems for small businesses. Small firms depend on local and community banks for loans, so the deteriorating commercial loan environment hurts employment, since small businesses do most of the hiring nationwide.
"If we want to get a broad-based recovery going in this economy, we have to . . . help small businesses get access to lending again, and commercial real estate is an indirect threat to that," said Meyer, now a vice chairman of the consultancy Macroeconomic Advisers. "Smaller banks are failing at a high rate and they're key to what happens to small business. Small business are . . . basically closed off."
Problems in commercial real estate have been more anticipated than the unexpected shock the economy took from the collapse in home prices.
"This isn't nearly as bad as a year ago, but there's going to be a lot of people that do get hurt, especially small banks," said Douglas Elliot, a finance expert at the Brookings Institution, a center-left policy research group.
Last year as credit markets seized up, large corporations couldn't get loans from big banks or even issue short-term debt to fund their daily operations. Amid the so-called credit crunch, groups such as the National Federation of Independent Business boasted that credit hadn't dried up on Main Street.
Today, the situation is reversed. Small business is struggling to get loans as small and mid-sized regional banks are under severe stress from deteriorating loan portfolios.
In a report Monday, The Real Estate Roundtable, a trade group, said its latest survey of member sentiment found that commercial real estate markets "remain extremely stressed with little prospect for significant near-term improvement."
FDIC lending data, analyzed by forecaster Moody's Economy.com, show that as of June 30, 2006, just 0.58 percent of all commercial real estate loans were delinquent. By June 30, 2009, that number had climbed to 2.88 percent.
Related to the problems in commercial real estate, on June 30, 2006, 0.43 percent of all construction and development loans were delinquent. On June 30, 2009, that number stood at 13.45 percent.
Through June 30, the FDIC insured deposits at 8,204 financial institutions whose assets collectively were valued above $1 trillion. About 1,693 of these lenders were considered heavily exposed to commercial real estate, with more than a quarter of their assets tied up in CRE lending.
"We obviously have a world where loans that made perfect sense three years ago make little or no sense today. That's the kind of dilemma the banks are in," said Christopher Cornell, an economist specializing in real estate for Moody's Economy.com in West Chester, Pa.
Commercial mortgages or leases generally span periods of five, seven or 10 years, after which they're renewed. The economic downturn, however, has rendered many smaller borrowers less creditworthy, and with many firms going out of business, there's a glut of retail and office space.
"Fewer people want the property. Just follow supply and demand, and the price of property goes down, the net equity on the mortgages on these properties is declining and in many cases is negative," said Cornell, noting that commercial real estate prices have fallen by at least 40 percent from their peak. "That 40 percent price decline has pretty obvious and easy to trace implications."
And my experience was that the small banks didn't use commissioned loan production staff and they never tried to pressure the appraiser to hit the numbers. This was not true with the large banks like WELLS FARGO BANK which constantly harassed the appraisers with grinder reviews, witholding payment and benching.
The Sacramento Bee a subsidiary news paper of McClatchy. wrote an article in 2002 about the dangers that were being created by pressurized appraisals. In Sept. 2005 I had the unmitigated gall to tell WELLS FARGO BANK that the market indicators were showing decreasing demand and higher inventories. I was told to shut up because they know what they are doing. I'M SURE THEY DID, they knew they were placing America's security at risk for their own bloated bonus checks.
I have to wonder why there is no blood on the street?
C-J
By Kevin G. Hall | McClatchy Newspapers
WASHINGTON — Just as the housing sector appears to be recovering, gathering problems in the commercial real estate market threaten to become a new drag on the economy.
The collapse in home prices sunk many big banks last year, but this year smaller lenders and community banks are going bust at an alarming rate because of their exposure to souring commercial real estate loans.
At least 115 banks have failed this year, many because of their exposure to deteriorating commercial loans for retail space, office buildings and industrial parks. As of June 30, another 416 institutions the Federal Deposit Insurance Corp. was monitoring as "problem" lenders.
How dire is it? Unable to find enough sound banks to acquire failing banks, the FDIC relaxed its rules earlier this year to allow private-equity funds to bid for troubled lenders.
Banks hold about 50 percent of all outstanding commercial real estate loans, many of them smaller regional players. Another 20 percent of commercial real estate loans have been pooled together by investment banks and sold as commercial mortgage bonds, which also are experiencing high default rates.
The rising rate of delinquency and default in commercial real estate jeopardizes efforts by the Treasury Department and the Federal Reserve to get much-needed lending flowing again.
"When you ask people at the Fed what the biggest worries are, this (commercial real estate) is at the top of their list," said Laurence Meyer, a Fed governor from 1996 to 2002. "The danger here is not the direct macroeconomic impact but the potential impact on the safety and soundness of the banking system."
After the political uproar over last year's $700 billion taxpayer bailout of banks, however, there's little appetite in Congress for additional taxpayer rescues of financial firms of any size. So regulators late last week attacked the problem another way: They encouraged banks to modify the terms of their commercial real estate, or CRE loans.
"While CRE borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity to repay their debts," the joint guidance from bank regulators said.
Regulators also relaxed reporting requirements so that small and mid-sized banks don't have to value these loans at today's deflated real estate prices.
"One of the problems was that even performing commercial real estate loans, where the borrower is still making payments, were being forced to be partially written down," said Paul Merski, the chief economist and senior vice president for the trade group Independent Community Bankers of America.
That group would like to see some of last year's bailout money given to smaller banks, under less onerous terms, since community banks are suffering from the broad economic downturn, not their own reckless behavior.
"The government has been picking winners and losers, and in many cases the losers have been too small to save," Merski said. "We've been asking for some fairness in that whole process."
Smaller banks' problems create problems for small businesses. Small firms depend on local and community banks for loans, so the deteriorating commercial loan environment hurts employment, since small businesses do most of the hiring nationwide.
"If we want to get a broad-based recovery going in this economy, we have to . . . help small businesses get access to lending again, and commercial real estate is an indirect threat to that," said Meyer, now a vice chairman of the consultancy Macroeconomic Advisers. "Smaller banks are failing at a high rate and they're key to what happens to small business. Small business are . . . basically closed off."
Problems in commercial real estate have been more anticipated than the unexpected shock the economy took from the collapse in home prices.
"This isn't nearly as bad as a year ago, but there's going to be a lot of people that do get hurt, especially small banks," said Douglas Elliot, a finance expert at the Brookings Institution, a center-left policy research group.
Last year as credit markets seized up, large corporations couldn't get loans from big banks or even issue short-term debt to fund their daily operations. Amid the so-called credit crunch, groups such as the National Federation of Independent Business boasted that credit hadn't dried up on Main Street.
Today, the situation is reversed. Small business is struggling to get loans as small and mid-sized regional banks are under severe stress from deteriorating loan portfolios.
In a report Monday, The Real Estate Roundtable, a trade group, said its latest survey of member sentiment found that commercial real estate markets "remain extremely stressed with little prospect for significant near-term improvement."
FDIC lending data, analyzed by forecaster Moody's Economy.com, show that as of June 30, 2006, just 0.58 percent of all commercial real estate loans were delinquent. By June 30, 2009, that number had climbed to 2.88 percent.
Related to the problems in commercial real estate, on June 30, 2006, 0.43 percent of all construction and development loans were delinquent. On June 30, 2009, that number stood at 13.45 percent.
Through June 30, the FDIC insured deposits at 8,204 financial institutions whose assets collectively were valued above $1 trillion. About 1,693 of these lenders were considered heavily exposed to commercial real estate, with more than a quarter of their assets tied up in CRE lending.
"We obviously have a world where loans that made perfect sense three years ago make little or no sense today. That's the kind of dilemma the banks are in," said Christopher Cornell, an economist specializing in real estate for Moody's Economy.com in West Chester, Pa.
Commercial mortgages or leases generally span periods of five, seven or 10 years, after which they're renewed. The economic downturn, however, has rendered many smaller borrowers less creditworthy, and with many firms going out of business, there's a glut of retail and office space.
"Fewer people want the property. Just follow supply and demand, and the price of property goes down, the net equity on the mortgages on these properties is declining and in many cases is negative," said Cornell, noting that commercial real estate prices have fallen by at least 40 percent from their peak. "That 40 percent price decline has pretty obvious and easy to trace implications."
Wednesday, November 4, 2009
Why did blue-chip Goldman take a walk on subprime's wild side?
C-J
Although the following exchange appears to be fictitious, it is based on many conversations beginning in September 2005 when informed and honest appraisers noticed that the statistics and raw data were unequivocally showing rising MLS inventories, decreased MLS sales and the lowest quality people and properties were being financed.
Everything goes right back to the beginning of the process; Because the law only works for the rich, powerful and well connected. The honest person is left with nothing and is victimized by the crooks at every level. The following is a typical exchange between a lender/AMC and the appraiser;
Loan Company Agent or AMC: Ring a ding ding “Hi Appraiser We have a complaint from Loan Production staff they want you to use their hand picked comparable sales!! They are going to do this loan and you have to hit the value”
Appraiser: “I’m not going to get involved, what you are demanding is against the law and ethics regulating my industry”
Loan Company Agent or AMC silently says to himself/herself:"So what, you are going to do it anyway or your payments will be delayed and furthermore if you don’t do it, it will affect your profile”.
Appraiser repeats to himself/herself: “These people are crooks, I won’t do it”
Loan Company Agent or AMC silently says to himself/herself: “I’m also going to have all your appraisal reports sent to the appraisal review department and given our best grinder reviews” and I’m sure we can find some issue that will result in you being suspended or benched!!
Appraiser silently says to himself/herself: “Do your worst, which I’m sure you will!!”
Both hang up after saying “Thank you and have a wonderful day.”
C-J
By Greg Gordon | McClatchy Newspapers
IRVINE, Calif. — Goldman Sachs was one of the last Wall Street giants to enter the subprime lending world, but when it did, it quickly climbed into bed with profligate, highflying firms — companies such as New Century Financial Corp.
In at least nine deals from 2002 to 2007, Goldman sold bonds backed by more than $5 billion of New Century's mortgages, one even after the California lender's underwriting criteria all but disintegrated and a cash squeeze paralyzed its operation. Goldman also marketed at least three secret offshore deals bearing New Century's name.
Goldman has yet to explain why it risked its blue-chip reputation and financial health to buy and repackage at least $135 billion in loans mostly originated by companies that have since gone bust.
Goldman spokesman Michael DuVally stressed, however, that the firm "was not the largest purchaser of loans from any of these mortgage originators, and in some cases was actually quite a small purchaser."
A glimpse inside New Century's operations sheds light on how one of Wall Street's proudest and most prestigious firms helped create a market for junk mortgages, contributing to the economic morass that's cost millions of Americans their jobs and their homes.
Perhaps no mortgage lender was more emblematic of the go-go atmosphere in the sprouting industry that was seizing an outsize share of the home loan market.
Traversing the country in private jets and zipping around Southern California in Mercedes Benzes, Porsches and even a Lamborghini, New Century executives reveled as the firm's annual residential mortgage sales rocketed from $357 million in 1996 to nearly $60 billion a decade later.
To be a subprime lender at the industry's height was to join in a dash for cash, and New Century was an Olympic-caliber sprinter.
Its top five officers, who received nearly $40 million in salaries and bonuses from 2002 to 2005, could peer out the 10th-floor windows of their gleaming onyx headquarters in Irvine and see the offices of more than a dozen rivals.
"A friend of mine said you couldn't fire a .22-caliber rifle and not hit a subprime lender in Orange County," recalled a former manager of a company that reviewed subprime loan files before Goldman and other Wall Street firms bought the mortgages.
For $100 million in mortgages, New Century could command fees from Wall Street of $4 million to $11 million, ex-employees told McClatchy. The goal was to close loans fast, bundle them into pools and sell them to generate money for the next round.
Inside the mortgage company, the former employees said, pressure was intense to increase the firm's share of an exploding market for mortgages that depended almost entirely on Wall Street's seemingly unlimited hunger for bigger, faster returns.
Michael Missal, a federal bankruptcy examiner who investigated New Century's operations after it sought Chapter 11 protection on April 2, 2007, reported last year that the firm's lax lending and accounting standards "created a ticking time bomb" as it pushed for ever-higher loan production.
The incentives for high-risk behavior reached all the way to Manhattan.
Goldman and other investment banks could put $20 million in the till by taking a 1 percent fee for assembling, securitizing and selling a $2 billion pool of mostly triple-A rated bonds backed by subprime loans — and that was just stage one.
Goldman entities earned millions of dollars more by servicing many of the loans and arranging sophisticated interest-rate swaps to guard against inflation.
As profits poured in, Wall Street firms extended lines of credit to New Century — known as "warehouse loans" — totaling billions of dollars to finance the issuance of more home loans to other marginal borrowers. Goldman Sachs' mortgage subsidiary gave the firm a $450 million credit line.
As the economy slowed, the mortgage industry couldn't keep up with Wall Street's loan demands, but that actually generated leverage.
Kevin Cloyd, the New Century executive vice president who dealt with Wall Street and in 2006 also oversaw loan production, told examiner Missal that a tacit understanding developed with Wall Street firms that were trying to edge out each other for loans, said a person familiar with Missal's inquiry.
Cloyd revealed that investment banks willing to scale back their scrutiny of mortgage applications got to buy more loans, said this individual, who declined to be identified because the material is confidential.
Reached at his Los Angeles home, Cloyd declined to comment.
The former project manager who oversaw the review of tens of thousands of subprime mortgages for Goldman and other Wall Street firms said that in 2005 and 2006, subprime lenders gradually got investment banks to reduce the percentage of loans that were reviewed before deals closed.
"It went from 100 percent in the late '90s to probably less than 10 percent in 2006," said the ex-manager, who declined to be identified for fear that it would hurt his career.
By pitting firms such as Lehman Brothers, Bear Stearns, Credit Suisse and Goldman against each other for a shrinking supply of loans, mortgage bankers were able to sell loans in which borrowers' ratios of debt to income inched up to 50 percent, to 55 percent and even into the 60s, this person said. That didn't include what they owed in taxes, meaning that some borrowers could be left to live on 20 percent of their paychecks.
Mortgage lenders also extracted promises from Wall Street firms not to "kick out" as unacceptable more than 5 percent of the loans in a pool.
Goldman spokesman Michael DuVally denied that the firm felt pressure from mortgage lenders to relax its loan quality standards to win bids on pools of mortgages. He said that Goldman's standards were at least as tough in 2006 as they were in 2002, but he declined to describe them.
Goldman Sachs Mortgage, however, published guidelines in early 2007 indicating that it would accept a "stated income, stated asset" loan for a person with a subpar credit score of 600 who was borrowing 90 percent of his or her home's value. The designation meant that although the borrower had poor credit, his or her claimed income and financial background would go unchecked.
Deep in a Feb. 13, 2007, Goldman prospectus offering bonds backed by 9,800 New Century mortgages were these disclosures:
3,422 of the borrowers had credit scores below 600, levels that experts say could include applicants with past bankruptcies.
3,688 of the borrowers were required only to state their incomes, not to document them — mortgages that became known as "liars' loans."
More than a quarter of the borrowers had combined first and second mortgage balances that equaled or exceeded 90 percent of their homes' values at the time.
As was typical, 34 percent of the loans in the 2007 deal were in California, and 9 percent were in Florida, markets where home prices were rising so fast that all the players shrugged off the risk that borrowers might default. If a loan soured, they thought, they could seize and easily resell the house without a loss.
With that philosophy, from 2004 to 2006 New Century executives relaxed their lending criteria to levels previously unimagined. The shift would have huge consequences: The looser the credit, the greater would be a torrent of loan foreclosures that would sink the housing market and force downgrades in supposedly safe subprime mortgage securities.
To make matters worse, the incentives inside New Century seemed to invite trouble.
For example, account executives, whose job was persuading mortgage brokers to steer clients to them, were paid largely in sales commissions. The more loans they secured, the more money they made.
To garner more loans, some female executives sauntered into mortgage brokers' offices wearing "short skirts, cleavage showing, looking like hotties," said Christine Fidler, a former company vice president.
Roxanne Bones, a former senior underwriter at New Century, said she was told that the women "spent a lot of time schmoozing with brokers at their offices, doing stuff with them on the weekends and getting drunk at night."
Some New Century sales executives passed monthly kickbacks of $1,000 or more to company loan processers responsible for closing the loans, Bones said. It was a small tip to pay for salespeople who could earn as much as $1 million a year if their loans went to closing, she said.
The company also rewarded sales and underwriting staffs with lavish junkets. In 2004, Fidler said, as many as 300 New Century employees spent a week at the five-star Arts Hotel in Barcelona, Spain, where rooms today run from $400 to $16,000 a night.
Others scuba dived, golfed, took catamaran rides and sipped cocktails at Marriott's Ihilani Resort and Spa in Hawaii, shared a Caribbean cruise, made a summertime sojourn to Banff in the Canadian Rockies or were handed fistfuls of company cash before hitting the gaming tables during a conference at the MGM Grand in Las Vegas.
When the sales teams weren't frolicking, they were finding it easy to write loans.
New Century tossed out a requirement that every homebuyer make a down payment and began lending up to 80 percent of a property's value for a first mortgage and up to 20 percent for a second. It also lowered borrowers' minimum required credit scores into the 500s, although 700 or better is typically considered a good credit score. The nationwide average is 693, according to the consumer credit rating agency Experian.
By 2005 and 2006, ex-employees say, it got crazy.
Tim Lee, a former New Century underwriter in the Chicago suburb of Schaumburg, said his bosses relented and killed a $275,000 loan sought by a third-year kindergarten teacher who claimed a $180,000 salary. In most other cases, however, his objections led to a scene in a manager's office like this one:
Manager: "We're going to go ahead and do this loan."
Lee: "So you do it."
Manager: "No, you're gonna do it."
Lee: "I'm not going to."
Manager: "Then I'm going to write you up."
Lee said that his office processed 2,000 to 2,500 loans each month, and he could recall few that weren't approved with an "exception" waiving a key financial issue that otherwise might've torpedoed the deal.
Missal's examiner's report estimated that 40 percent of the company's mortgages were "liars' loans" because any income claim on an application was accepted as truthful. A SIVA meant "some income, verified assets," but it went downhill to the NINA — no income, no assets.
Lee said he nicknamed it "the no-doc, drug-dealer loan," because even "a street pharmacist" could qualify by listing his income but not his employer.
Top New Century officials, including the late Vice Chairman Edward Gottschall, told skeptical underwriters not to worry because "volume outpaces bad debt all day long," Lee recalled.
The loans laid out financial terms that protected investors but punished homebuyers. They offered above-market interest rates, typically starting at 8 percent, with provisions that Lee said were "rigged" to guarantee the maximum 3 percent rise in interest rates after two years and almost assuredly another 3 percent increase through ensuing, twice-yearly adjustments.
Loan prospects with higher credit scores but otherwise dicey credentials were given options such as "pick-a-payment loans" that allowed them to choose during an introductory period whether to pay the usual interest and principal, interest only or a minimum amount.
"Everybody would pick the minimum," Lee said.
When the introductory period ended and interest rate adjustments kicked in, he said, someone who borrowed $750,000 could owe $850,000 and see his monthly payment shoot from $1,000 to $7,000.
If the noose around borrowers wasn't tight enough, those seeking to refinance on safer terms faced stiff prepayment penalties.
New Century, like other mortgage lenders, would soon face its own cash squeeze, however.
Wall Street firms required lenders to buy back a loan if the borrower defaulted on his first payment or there was a major defect in the mortgage.
Missal's report said that New Century was faced with an "alarming" wave of payment defaults beginning in mid 2004 — a wave that later turned into a multibillion-dollar tsunami of loans being rejected by Wall Street. New Century desperately needed cash to buy back thousands of deficient loans it had made.
In late 2006, however, Goldman Sachs and other Wall Street firms cut off the lender's credit lines. The cash squeeze, as well as admitted misstatements on its 2006 year-end financial statement that had turned a loss into a profit, halted New Century's operations and sent it careering into bankruptcy.
The lender's demise, however, didn't stop Goldman, which unloaded a $1.7 billion pool of bonds tied to New Century loans in February 2007. In May, weeks after New Century's bankruptcy filing, Goldman started selling securities backed by New Century mortgages in a secret deal based in the Cayman Islands, a tax haven for U.S. companies.
Months after the February offering, Goldman's lawyers filed additional disclosure documents with the SEC advising investors who'd bought its subprime bonds of disturbing patterns: rising defaults on subprime mortgages and declining home prices.
New Century, Goldman disclosed, not only was bankrupt, but also had received notices to cease and desist operations in multiple states. Furthermore, Goldman said, the mortgage banker was facing Justice Department and SEC inquiries — inquiries that apparently are still ongoing.
"In response to the deterioration in the performance of subprime mortgage loans," Goldman advised, "the rating agencies have recently lowered ratings on a large number of subprime mortgage securitizations.
"... You should consider ... the risk that your investment in the offered certificates may perform worse than you anticipate."
(Tish Wells also contributed to this article.)
Although the following exchange appears to be fictitious, it is based on many conversations beginning in September 2005 when informed and honest appraisers noticed that the statistics and raw data were unequivocally showing rising MLS inventories, decreased MLS sales and the lowest quality people and properties were being financed.
Everything goes right back to the beginning of the process; Because the law only works for the rich, powerful and well connected. The honest person is left with nothing and is victimized by the crooks at every level. The following is a typical exchange between a lender/AMC and the appraiser;
Loan Company Agent or AMC: Ring a ding ding “Hi Appraiser We have a complaint from Loan Production staff they want you to use their hand picked comparable sales!! They are going to do this loan and you have to hit the value”
Appraiser: “I’m not going to get involved, what you are demanding is against the law and ethics regulating my industry”
Loan Company Agent or AMC silently says to himself/herself:"So what, you are going to do it anyway or your payments will be delayed and furthermore if you don’t do it, it will affect your profile”.
Appraiser repeats to himself/herself: “These people are crooks, I won’t do it”
Loan Company Agent or AMC silently says to himself/herself: “I’m also going to have all your appraisal reports sent to the appraisal review department and given our best grinder reviews” and I’m sure we can find some issue that will result in you being suspended or benched!!
Appraiser silently says to himself/herself: “Do your worst, which I’m sure you will!!”
Both hang up after saying “Thank you and have a wonderful day.”
C-J
By Greg Gordon | McClatchy Newspapers
IRVINE, Calif. — Goldman Sachs was one of the last Wall Street giants to enter the subprime lending world, but when it did, it quickly climbed into bed with profligate, highflying firms — companies such as New Century Financial Corp.
In at least nine deals from 2002 to 2007, Goldman sold bonds backed by more than $5 billion of New Century's mortgages, one even after the California lender's underwriting criteria all but disintegrated and a cash squeeze paralyzed its operation. Goldman also marketed at least three secret offshore deals bearing New Century's name.
Goldman has yet to explain why it risked its blue-chip reputation and financial health to buy and repackage at least $135 billion in loans mostly originated by companies that have since gone bust.
Goldman spokesman Michael DuVally stressed, however, that the firm "was not the largest purchaser of loans from any of these mortgage originators, and in some cases was actually quite a small purchaser."
A glimpse inside New Century's operations sheds light on how one of Wall Street's proudest and most prestigious firms helped create a market for junk mortgages, contributing to the economic morass that's cost millions of Americans their jobs and their homes.
Perhaps no mortgage lender was more emblematic of the go-go atmosphere in the sprouting industry that was seizing an outsize share of the home loan market.
Traversing the country in private jets and zipping around Southern California in Mercedes Benzes, Porsches and even a Lamborghini, New Century executives reveled as the firm's annual residential mortgage sales rocketed from $357 million in 1996 to nearly $60 billion a decade later.
To be a subprime lender at the industry's height was to join in a dash for cash, and New Century was an Olympic-caliber sprinter.
Its top five officers, who received nearly $40 million in salaries and bonuses from 2002 to 2005, could peer out the 10th-floor windows of their gleaming onyx headquarters in Irvine and see the offices of more than a dozen rivals.
"A friend of mine said you couldn't fire a .22-caliber rifle and not hit a subprime lender in Orange County," recalled a former manager of a company that reviewed subprime loan files before Goldman and other Wall Street firms bought the mortgages.
For $100 million in mortgages, New Century could command fees from Wall Street of $4 million to $11 million, ex-employees told McClatchy. The goal was to close loans fast, bundle them into pools and sell them to generate money for the next round.
Inside the mortgage company, the former employees said, pressure was intense to increase the firm's share of an exploding market for mortgages that depended almost entirely on Wall Street's seemingly unlimited hunger for bigger, faster returns.
Michael Missal, a federal bankruptcy examiner who investigated New Century's operations after it sought Chapter 11 protection on April 2, 2007, reported last year that the firm's lax lending and accounting standards "created a ticking time bomb" as it pushed for ever-higher loan production.
The incentives for high-risk behavior reached all the way to Manhattan.
Goldman and other investment banks could put $20 million in the till by taking a 1 percent fee for assembling, securitizing and selling a $2 billion pool of mostly triple-A rated bonds backed by subprime loans — and that was just stage one.
Goldman entities earned millions of dollars more by servicing many of the loans and arranging sophisticated interest-rate swaps to guard against inflation.
As profits poured in, Wall Street firms extended lines of credit to New Century — known as "warehouse loans" — totaling billions of dollars to finance the issuance of more home loans to other marginal borrowers. Goldman Sachs' mortgage subsidiary gave the firm a $450 million credit line.
As the economy slowed, the mortgage industry couldn't keep up with Wall Street's loan demands, but that actually generated leverage.
Kevin Cloyd, the New Century executive vice president who dealt with Wall Street and in 2006 also oversaw loan production, told examiner Missal that a tacit understanding developed with Wall Street firms that were trying to edge out each other for loans, said a person familiar with Missal's inquiry.
Cloyd revealed that investment banks willing to scale back their scrutiny of mortgage applications got to buy more loans, said this individual, who declined to be identified because the material is confidential.
Reached at his Los Angeles home, Cloyd declined to comment.
The former project manager who oversaw the review of tens of thousands of subprime mortgages for Goldman and other Wall Street firms said that in 2005 and 2006, subprime lenders gradually got investment banks to reduce the percentage of loans that were reviewed before deals closed.
"It went from 100 percent in the late '90s to probably less than 10 percent in 2006," said the ex-manager, who declined to be identified for fear that it would hurt his career.
By pitting firms such as Lehman Brothers, Bear Stearns, Credit Suisse and Goldman against each other for a shrinking supply of loans, mortgage bankers were able to sell loans in which borrowers' ratios of debt to income inched up to 50 percent, to 55 percent and even into the 60s, this person said. That didn't include what they owed in taxes, meaning that some borrowers could be left to live on 20 percent of their paychecks.
Mortgage lenders also extracted promises from Wall Street firms not to "kick out" as unacceptable more than 5 percent of the loans in a pool.
Goldman spokesman Michael DuVally denied that the firm felt pressure from mortgage lenders to relax its loan quality standards to win bids on pools of mortgages. He said that Goldman's standards were at least as tough in 2006 as they were in 2002, but he declined to describe them.
Goldman Sachs Mortgage, however, published guidelines in early 2007 indicating that it would accept a "stated income, stated asset" loan for a person with a subpar credit score of 600 who was borrowing 90 percent of his or her home's value. The designation meant that although the borrower had poor credit, his or her claimed income and financial background would go unchecked.
Deep in a Feb. 13, 2007, Goldman prospectus offering bonds backed by 9,800 New Century mortgages were these disclosures:
3,422 of the borrowers had credit scores below 600, levels that experts say could include applicants with past bankruptcies.
3,688 of the borrowers were required only to state their incomes, not to document them — mortgages that became known as "liars' loans."
More than a quarter of the borrowers had combined first and second mortgage balances that equaled or exceeded 90 percent of their homes' values at the time.
As was typical, 34 percent of the loans in the 2007 deal were in California, and 9 percent were in Florida, markets where home prices were rising so fast that all the players shrugged off the risk that borrowers might default. If a loan soured, they thought, they could seize and easily resell the house without a loss.
With that philosophy, from 2004 to 2006 New Century executives relaxed their lending criteria to levels previously unimagined. The shift would have huge consequences: The looser the credit, the greater would be a torrent of loan foreclosures that would sink the housing market and force downgrades in supposedly safe subprime mortgage securities.
To make matters worse, the incentives inside New Century seemed to invite trouble.
For example, account executives, whose job was persuading mortgage brokers to steer clients to them, were paid largely in sales commissions. The more loans they secured, the more money they made.
To garner more loans, some female executives sauntered into mortgage brokers' offices wearing "short skirts, cleavage showing, looking like hotties," said Christine Fidler, a former company vice president.
Roxanne Bones, a former senior underwriter at New Century, said she was told that the women "spent a lot of time schmoozing with brokers at their offices, doing stuff with them on the weekends and getting drunk at night."
Some New Century sales executives passed monthly kickbacks of $1,000 or more to company loan processers responsible for closing the loans, Bones said. It was a small tip to pay for salespeople who could earn as much as $1 million a year if their loans went to closing, she said.
The company also rewarded sales and underwriting staffs with lavish junkets. In 2004, Fidler said, as many as 300 New Century employees spent a week at the five-star Arts Hotel in Barcelona, Spain, where rooms today run from $400 to $16,000 a night.
Others scuba dived, golfed, took catamaran rides and sipped cocktails at Marriott's Ihilani Resort and Spa in Hawaii, shared a Caribbean cruise, made a summertime sojourn to Banff in the Canadian Rockies or were handed fistfuls of company cash before hitting the gaming tables during a conference at the MGM Grand in Las Vegas.
When the sales teams weren't frolicking, they were finding it easy to write loans.
New Century tossed out a requirement that every homebuyer make a down payment and began lending up to 80 percent of a property's value for a first mortgage and up to 20 percent for a second. It also lowered borrowers' minimum required credit scores into the 500s, although 700 or better is typically considered a good credit score. The nationwide average is 693, according to the consumer credit rating agency Experian.
By 2005 and 2006, ex-employees say, it got crazy.
Tim Lee, a former New Century underwriter in the Chicago suburb of Schaumburg, said his bosses relented and killed a $275,000 loan sought by a third-year kindergarten teacher who claimed a $180,000 salary. In most other cases, however, his objections led to a scene in a manager's office like this one:
Manager: "We're going to go ahead and do this loan."
Lee: "So you do it."
Manager: "No, you're gonna do it."
Lee: "I'm not going to."
Manager: "Then I'm going to write you up."
Lee said that his office processed 2,000 to 2,500 loans each month, and he could recall few that weren't approved with an "exception" waiving a key financial issue that otherwise might've torpedoed the deal.
Missal's examiner's report estimated that 40 percent of the company's mortgages were "liars' loans" because any income claim on an application was accepted as truthful. A SIVA meant "some income, verified assets," but it went downhill to the NINA — no income, no assets.
Lee said he nicknamed it "the no-doc, drug-dealer loan," because even "a street pharmacist" could qualify by listing his income but not his employer.
Top New Century officials, including the late Vice Chairman Edward Gottschall, told skeptical underwriters not to worry because "volume outpaces bad debt all day long," Lee recalled.
The loans laid out financial terms that protected investors but punished homebuyers. They offered above-market interest rates, typically starting at 8 percent, with provisions that Lee said were "rigged" to guarantee the maximum 3 percent rise in interest rates after two years and almost assuredly another 3 percent increase through ensuing, twice-yearly adjustments.
Loan prospects with higher credit scores but otherwise dicey credentials were given options such as "pick-a-payment loans" that allowed them to choose during an introductory period whether to pay the usual interest and principal, interest only or a minimum amount.
"Everybody would pick the minimum," Lee said.
When the introductory period ended and interest rate adjustments kicked in, he said, someone who borrowed $750,000 could owe $850,000 and see his monthly payment shoot from $1,000 to $7,000.
If the noose around borrowers wasn't tight enough, those seeking to refinance on safer terms faced stiff prepayment penalties.
New Century, like other mortgage lenders, would soon face its own cash squeeze, however.
Wall Street firms required lenders to buy back a loan if the borrower defaulted on his first payment or there was a major defect in the mortgage.
Missal's report said that New Century was faced with an "alarming" wave of payment defaults beginning in mid 2004 — a wave that later turned into a multibillion-dollar tsunami of loans being rejected by Wall Street. New Century desperately needed cash to buy back thousands of deficient loans it had made.
In late 2006, however, Goldman Sachs and other Wall Street firms cut off the lender's credit lines. The cash squeeze, as well as admitted misstatements on its 2006 year-end financial statement that had turned a loss into a profit, halted New Century's operations and sent it careering into bankruptcy.
The lender's demise, however, didn't stop Goldman, which unloaded a $1.7 billion pool of bonds tied to New Century loans in February 2007. In May, weeks after New Century's bankruptcy filing, Goldman started selling securities backed by New Century mortgages in a secret deal based in the Cayman Islands, a tax haven for U.S. companies.
Months after the February offering, Goldman's lawyers filed additional disclosure documents with the SEC advising investors who'd bought its subprime bonds of disturbing patterns: rising defaults on subprime mortgages and declining home prices.
New Century, Goldman disclosed, not only was bankrupt, but also had received notices to cease and desist operations in multiple states. Furthermore, Goldman said, the mortgage banker was facing Justice Department and SEC inquiries — inquiries that apparently are still ongoing.
"In response to the deterioration in the performance of subprime mortgage loans," Goldman advised, "the rating agencies have recently lowered ratings on a large number of subprime mortgage securitizations.
"... You should consider ... the risk that your investment in the offered certificates may perform worse than you anticipate."
(Tish Wells also contributed to this article.)
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