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On December 4th Congress heard testimonies from the CEOs from General Motors. Ford Chrysler
as well as from the Government Accounting Office (GAO) and economists who were attempting
to obtain federal funding to assist with preventing their businesses from going into bankruptcy
courts.
Mr. Stephen A. Roell , CEO Johnson Controls (JCI) made a very sobering comment at the
hearings regarding the 'bailout of the big 3 auto manufacturers' and the impact that America
would be faced with if the Government didn’t provide them with 34 billion dollars that would
In Mr. Roell’s statements he testified that voting against or not voting at all not to provide
assistance to the Big 3 automotive manufactures. Would result in the same outcome.
Stressing to Congress that if only one of the major auto manufacturers were to go out of business,
this would impact the entire economy drastically . Using as an example one of the companies
which JCI has recently purchased.1 the company- a minority owned business. Plastech
Engineered Products Inc 2 manufactured products for all of the major auto makers. Including
1 Auto-parts maker Johnson Controls Inc. has formed a joint venture to acquire the
Inchttp://online.wsj.com/article/SB121496223245121713.html?mod=dist_smartbrief
2 http://en.wikipedia.org/wiki/Plastech_Engineered_Products
Toyota and others.
Mr. Roell also stated that JCI manufactured batteries for the big three as well as third party sales.
Based on what is being sold as an economic crisis there is something that has been overlooked.
Businesses will usually be resilient in times of crisis. And often times whenever there are
companies which provide a vital service or product for another business. There is competition in
purchasing that company by its competitors in order to strengthen the economy as well as the
quarterly earnings from which a small company will achieve in the aggressive growth process of
The Government should be limited in the operations of the private sector. Which separates
Government centralized planning from a Free economy funding through tax payer dollars to
GM, Ford and Chrysler all have been an American icon since the early 1900's. Separate
Businesses competing with each other for the consumers buying interests.
There is some history to look at on deciding what to do regarding assisting the private sector and
Each of these businesses at some point came to the US Government seeking assistance in a time
when the companies were failing. Concerned with massive layoffs and their businesses folding,
Harley Davidson was established in 1903.3 Indian Motorcycle was established in 19014.
Many may not have known that DuPont’s owned major shares of the Indian Motorcycle
Company
Indian Motorcycle Company endured through a full decade of financial woes in the face of
powerful competition from Harley-Davidson, Henderson, Excelsior, and very heavy competition
resulting from the creation of the Model T Ford and other newly affordable automobiles
Eleuthere Paul DuPont persuaded his brother Francis to merge the family's luxury car business
with Indian and cease production of automobiles This was done at the start of an almost 12-year-
Harley Davidson Sustained the struggles resulting from this era while others like Indian
HDI was able to sustain its business only through some restructuring strategies within the
3 http://motorcycles.suite101.com/article.cfm/harleydavidson
4 http://en.wikipedia.org/wiki/Indian_(motorcycle)
5 http://www.indianmotorcycle.com/History/HistoryHome/tabid/78/Default.aspx
corporation. Combined with assistance of the Federal Government. Although it was Not through
tax dollars being used through Loan Guarantees to bail them out.
The Department of Defense as well as Federal and State law enforcement agencies and the Local
Harley-Davidson designed a three-wheel Servi-Car, model in 1931 that became very popular with
police departments for traffic and parking enforcement and continued to serve as a Harley-
During WWII, Harley-Davidson produced 88,000 motorcycles for the war effort, including the
horizontally opposed, two-cylinder, shaft-drive XA 750 model. (They were never sold to the
public and only 1,000 were made.) For its patriotic efforts, the Motor Company was awarded four
This resulted with Indian Motorcycle Company relying on the business to stay afloat through
sales that was mainly through the private sector. Indian was unable to recover. After WWII the
business began downsizing more and eventually in the late 1950's they began to close mass
amounts of their dealerships and eventually in the 1960's they closed their doors. Keeping their
In the 1998 Indian again began discussing options to begin manufacturing their brand of
motorcycles.
Although they were unable to gain any momentum in sales and eventually sold the business out
and is now a Business based in England. With plans to manufacture a motorcycle that is not the
traditional V twin as they originally had designed and manufactured. The company again closed
its doors and was sold to a London based Equity firm that now has plans to resurrect the Indian
Brand Motorcycle.
Stellican LTD.
Part of the downfall of the 1999-2003 Indian Business Strategic plan was based on the
motorcycle not being driven by its own engines. Instead of in house engines Indian decided to
install aftermarket S&S engines instead in the motorcycle making it nothing more than an
aftermarket motorcycle holding the Indian Motorcycle Company name. Resulting in low sales
On July 20, 2006 Indian Motorcycle Company, owned largely by Stellican Limited, a London-
based private equity firm plans to resurrect the iconic Indian Motorcycle Brand (refer to the "July
20, 2006 - Press Release - Indian Motorcycle Company Announces New Home"6 on the official
website). New Indian has goals of producing a new Chief using a modern fuel-injected 105ci V-
Twin engine which they are building in-house. The new Chief will have the classic valanced
fenders. However, New Indian plans to offer several variations of the Chief including a more
modern style without the valanced fenders. New Indian also plans on offering an accessory line
for both the New Indian and the Gilroy Indian motorcycles built from 1999 to 2003.
6 http://indianmotorcycle.com/Dealers/GrandOpeningCelebrationPhotos/tabid/405/Defau
lt.aspx
http://www.indianmotorcycle.com/Dealers/LocateAnIndianMotorcycleDealer/tabid/69/D
efault.aspx http://www.indianmotorcycle.com/Portals/0/docs/Press_Releases/Indian
%20Motorcycle%20Revised%20Press%20Release%20-%20Revised%20Sept.pdf
50 dealerships are planned to be online by end of 2011 here in the USA, 14 of which have already
been named.
The flagship store, Indian Motorcycle Charlotte, located in Charlotte, North Carolina, held its
The second Indian dealership to open its doors in the United States is Mike Smith Indian, located
in Paduchah Kentucky The grand opening is scheduled to take place in a couple weeks December
20th, 2008. 7
Penn Central Railroad and the 19.7 billion dollar bailout plan
In May 1970, Penn Central Railroad, then on the verge of bankruptcy, appealed to the Federal
Reserve for aid on the grounds that it provided crucial national defense transportation services.
The Nixon administration and the Federal Reserve supported providing financial assistance to
Penn Central, but Congress refused to adopt the measure. Penn Central declared bankruptcy on
June 21, 1970, which freed the corporation from its commercial paper8 obligations. To counteract
the devastating ripple effects to the money market, the Federal Reserve Board told commercial
banks it would provide the reserves needed to allow them to meet the credit needs of their
customers.
7 http://mikesmithindian.com/
commercial paper is typically less than 270 days; the most common maturity range
http://www.washingtonpost.com/wp-
srv/business/longterm/glossary/a_m/commercial_paper.htm
In 1971, the government provided $676.3 million in loan guarantees A statutory commitment by
the federal government to pay part or all of a loan's principal and interest to a lender or the holder
of a security in case the borrower defaults. The Federal Credit Reform Act of 1990 requires that
the cost of guaranteed loans be included in the computation of budget authority and outlays. The
congressional budget resolution includes loan guarantee totals. (Parliamentary Outreach Program,
U.S. House of Representatives)). In 1976, the federal government consolidated the still struggling
Penn Central with five other railroad companies that were also failing to form Consolidated Rail,
or Conrail. The government spent $19.7 billion, including roughly $7.7 billion for the initial
investment, to keep Conrail operating. By 1981, Conrail began to earn a profit. The government
sold Conrail in 1987 for $3.1 billion. In addition to the sale price, the Treasury received a $579
Conrail today has again been split up. Portions of their rail lines are now contracted to Norfolk
While CONRAIL still has holdings much of the rail service is operated through other rail
corporations.
Nixon Administration had proposed helping the railroad through allowing the Department of
Although the proposal ran into severe political fire from Democrats in Congress which resulted in
Philadelphia district court picked Judge John P. Fullam, 48, had been assigned to handle the Penn
Central case.
Fullam's first major task, after a mid-July hearing, was to appoint trustees to run the railroad. The
trustees had the power to float new loans to keep the line operating. Transportation Secretary
John A. Volpe warned While waiting for those loans, the railroad may have to shut down for lack
of cash to meet expenses, which included the $20 million a week payroll for its 94,000
employees. Said Volpe: "I don't believe any of us can say with any degree of certainty if the
Time Magazine stated in an article printed July 6, 1970 that “Volpe may have been exaggerating
in order to gain support for an Administration bill to aid the Penn Central and other impoverished
$750 million in private loans. Volpe testified that four and possibly more railroads would soon
follow the Penn Central into filing for bankruptcy unless federal aid was provided.
In 1971, the US Government approved $676.3 million in loan guarantees A statutory commitment
by the federal government to pay part or all of a loan's principal and interest to a lender or the
holder of a security in case the borrower defaults. The Federal Credit Reform Act of 1990
requires that the cost of guaranteed loans be included in the computation of budget authority and
outlays.10 The congressional budget resolution includes loan guarantee totals. (Parliamentary
consolidated the still struggling Penn Central with five other railroad companies that were also
failing to form Consolidated Rail, or Conrail. The government spent $19.7 billion, including
roughly $7.7 billion for the initial investment, to keep Conrail operating. By 1981, Conrail began
to earn a profit. The government sold Conrail in 1987 for $3.1 billion. In addition to the sale
The "K-cars" are generally credited with saving Chrysler from bankruptcy.
1970http://www.time.com/time/magazine/article/0,9171,878372,00.html?
promoid=googlep
10 http://www.law.cornell.edu/uscode/html/uscode42/usc_sec_42_00014752----000-.html
11 http://www.propublica.org/special/bailout-aftermaths
Chrysler Corporation petitioned the United States government in Sept 7 1979 for 1.5 billion in
loan guarantees to avoid bankruptcy. At the same time former Ford Motor Company executive
Lee Iacocca became the Chief Executive Officer for Chrysler. Part of his strategy was appearing
in televised advertisements saying: "If you find a better car, buy it."
Reluctantly The US Congress passed the "Chrysler Corporation Loan Guarantee Act of 1979"
(Public Law 96-185) on December 20, 1979 (signed into law by President Jimmy Carter January
7, 1980),12 which was a result of prodding by Chrysler workers and dealers in every
congressional district who feared the loss of their livelihoods. Again the US Government stepped
up to assist further with military contracts to purchase Dodge pickup trucks which entered
military service as the Commercial Utility Cargo Vehicle M-880 Series. This combined with
innovation in manufacturing a new series of automobiles such as the K-cars, and the concept of
By Providing Federal assistance; Are taxpayers actually Bailing out American Companies?
Or are Taxpayers assisting two companies to become one mega corporation that will only
further contribute to the demise of small business growth and process of economic
interventionism?
12 http://www.presidency.ucsb.edu/ws/index.php?pid=32978http://en.wikipedia.org/wiki/Chrysler
beyond the basic regulation of fraud and enforcement of contracts, in an effort to affect the
2 Increasing employment
3 Raising wages
5 Promoting equality
7 Addressing market failures . The intervention may to direct, or indirect as in the case of
Indicative planning13. When this economic planning is extensive, the economy is referred to as a
planned economy14.
Economic interventionism is generally associated with the political left (socialist, left wing liberal
or green parties) which holds opinions that the outcomes of a particular economic issue is
national conservative parties with the thinking that the free market would be a high risk of
damaging national traditions, social order, thus creating a bigger government though giving more
13 When utilizing indicative planning, the state employs "influence, subsidies, grants,
and taxes [to affect the economy], but does not compel."
http://en.wikipedia.org/wiki/Indicative_planning
14 A planned economy is so extensively operated by the state that it controls all major
sectors of the economy and formulates all decisions about their use and about the
http://en.wikipedia.org/wiki/Planned_economy
then was legally renamed DaimlerChrysler Motors Company LLC, while its total operations
began doing business as Chrysler Group. This was initially declared to be a merger of equals
According to the April 2007 issue of Der Spiegel , CEO Dieter Zetsche expressed a desire to
dismantle Chrysler and sell off the majority stake and at the same time keep Chrysler "dependent"
May 14th of the same year, DaimlerChrysler AG announced that it would sell 80.1% of its stake
in the Chrysler Group to Cerberus Capital Management, L.P. One of the largest private equity
investment firms in the United States. The firm is based in new York City , and run by 48-year-
old financier Steve Feinberg. Former U.S. Vice President Dan Quayle has been a spokesperson
In October 2008, Cerberus and General Motors discussed an exchange of GM's 49% stake in
GMAC for Chrysler, potentially merging the two auto manufacturers These talks did not come to
Florida State University Prepared for the Joint Economic Committee Jim Saxton,
1998http://www.house.gov/jec/growth/function/function.pdf
16 http://en.wikipedia.org/wiki/Chrysler#cite_note-12
fruition, and were discontinued in November 200817 Ironically in October the Governor. Of
Michigan Jennifer Granholm announced she, and 5 other governors, sent a letter to Treasury
Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke requesting emergency
The same day General Motors asked the Treasury Department of the United States for $10 billion
to help restructure both GM and possible future sibling, Chrysler so that in turn, they can become
Economic interventionism
United States antitrust law is part of the United States Code prohibiting business from becoming a
monopoly and regulating unfair business practice The first regulations regarding anti Trust Laws
dates back to the late 19th century with the Sherman Act. And was modified in 1914 in
accordance to the Clayton Antitrust Act of 1914, October 15, 1914, ch. 323, 38 Stat. 730,
The Clayton Act made both substantive and procedural modifications to federal antitrust law
prohibiting particular types of conduct, deemed as not being in the best interest of a competitive
market..
17 Friday, November 7, 2008 The Detroit News GM, Cerberus end Chrysler tie-up talks
18 http://en.wikipedia.org/wiki/Chrysler_bailout#cite_note-18
lessens competition or tends to create a monopoly in any line of commerce (Act Section
• Sales on the condition that (A) the buyer or lessee not deal with the competitors of the
seller or lesser (" • εξχλυσιϖε δεαλινγσ 19") or (B) the buyer also purchase another
different product ("• τψινγ") but only when these acts substantially lessen
• Any person from being a • διρεχτορ of two or more competing corporations (Act
Anti Trust Laws again were modified in 1976 with Gerald Ford signing the Hart-Scott Rodino
For thirty years or more, the United States Supreme Court defined "economic power" to include
almost any departure from perfect competition, With the Court taking measures to recognize that
the possession of a copyright or even the existence of a tie itself gave rise to a presumption of
economic power21
monopolization, anticompetitive mergers and tie-in schemes, and, in some circumstances, price
21 See Fornter Enterprises v. United States Steel, 394 U.S. 495 (1969); United States v.
other enterprise is not required . Unreasonable exclusionary practices that serve to entrench or
create monopoly power can therefore be unlawful. Allegations of predatory pricing by large
It is important to note that scholars from various schools of antitrust policy have been consistently
critical of the per se rule against tying contracts. 23Some, particularly those in the Chicago School
of economic thought, argue that such contracts are generally employed to effect otherwise lawful
price discrimination.24
Robert Bork and Richard Posner helped shape the anti-trust policy changes of the 1970s through
Posner’s idea that 1960s anti-trust laws were in fact making prices higher for the consumer rather
than lower, while he viewed lower prices as the essential end goal of any anti-trust policy. Posner
and Bork's theories on anti-trust have now become the prevailing view in academia and at the
Justice Department.25 Posner was said in 2000 to have a "godlike stature on anti-trust law
CONCLUSION
American Sherman Antitrust Act, passed in 1890. Section 2 states that any person "who
shall monopolize . . . any part of the trade or commerce among the several states, or with
foreign nations shall be deemed guilty of a felony. Section 2 also forbids "attempts to
monopolize" and "conspiracies to monopolize.2 July 1890 , ch. 647, 26 Stat . 209, 15 US
C 15 U.S.C. § 1–7
23 http://money.cnn.com/magazines/fortune/fortune_archive/2000/01/10/271747/index.ht
24 http://en.wikipedia.org/wiki/Richard_Posner#cite_note-cnn1-2
25 http://en.wikipedia.org/wiki/Richard_Posner#cite_note-cnn1-2
The best strategy for the Auto Industry is to readjust to the competitive global market or face the
demise of a free market enterprise and potentially be faced with the ultimate forced breakup of
the corporations in accordance to the current Anti Trust Laws which are in place to ensure the
consumer is not faced with the threats reduced choices of an American made product
An alternative to approving 34 billion dollars, to bail out the Auto makers, (stated as only a
temporary fix, By Fall of 2009 the Big 3 would possibly be returning back to Washington for
additional funding).
There is one of two of the most likely choices that should be looked closely at being approved.
1 Allowing the Automakers go bankrupt and with that utilizing some strategies that are part of the
free market theories. Restructure prices, wages, benefits. And even removal of the current Chief
Officers with strategist who will take a more aggressive roll with increasing the quarterly
earnings of the corporation. This will also require the restructuring of all the auto industry
businesses to readjust as well. Reflecting a competitive market with auto manufacturers and their
“They must eliminate the huge disparity in costs relative to foreign brands by devising new labor
agreements that align pay and benefits with those of workers at Honda, Nissan, Toyota and other
competitors. If this disparity is not dealt with, any bailout “will only delay the inevitable.”
Management as is “must go. New faces should be recruited from unrelated industries — from
companies widely respected for excellence in marketing, innovation, creativity and labor
relations.”
Automakers should cut executive perks drastically. “Get rid of the planes, the executive dining
rooms — all the symbols that breed resentment among the hundreds of thousands who will also
Investments must be made for the future. “No more focus on quarterly earnings or the kind of
short-term stock appreciation that means quick riches for executives with options. Manage with
an eye on cash flow, balance sheets and long-term appreciation. Invest in truly competitive
products and innovative technologies — especially fuel-saving designs — that may not arrive for
years.”
Mitt Romney: Let Automakers Go Bankrupt26
2 A bailout plan where the US Government and taxpayers are involved in a limited capacity.
Similar to the bail out plans that are restructured by the lending companies which have already
Though it is too little and too late to recall the Banking Industry businesses in for a re evaluation
it would have been better for the government to also critique the actions of the banking industry
The Banking Industry had been given a blank crisis check without any detailed business plans.
Discrepancy with a “automotive bailout plan jeopardize the very core of American Policy. Thus
jeopardizing causing violations of existing Anti Trust Laws which regulate mergers and
monopolizing companies from the banking industry down to the business which provide products
and or services.
The Bailout also jeopardizes the establishment itself in delving into a policy that would be more
likely to take place in China or another communistic country instead of a country which was
established on- among other issues free enterprise. The government becoming responsible for
“tying” products into one large “Mega-corporation” Or, taking part in monopolizing corporations
thus resulting in contributing to violations of Anti Trust Laws of these same businesses which are
Creating the demise of small business. Therefore Wal-Mart’s’, Sears J.C. Penny’s. AT&T,
Microsoft. IBM and other ‘Mega-corporations’ would then be able to have more control over
manipulation of the GDP and the ultimate destruction of individuals right for “Life Liberty and
The phrase “pursuit of Life Liberty and the pursuit of Happiness” was first established in the
26 http://www.newsmax.com/insidecover/Romney_detroit_bankrupt/2008/11/19/152984.html
writings of John Locke,29 August 1632 – 28 October 1704) who was an English philosopher
expressing a similar concept of "life, liberty, and estate (property)”. Locke said that “no one ought
to harm another in his life, liberty, or possessions, George Mason IV (December 11, 1725 –
October 7, 1792) a United States Patriot- Statesman and delegate from Virginia to the U.S.
Constitutional Convention. Along with James Madison is called the "Father of the Bill of Rights".
In the Virginia Declaration of Rights27 it again states: “That all men are by nature equally free
and independent and have certain inherent rights,... namely the enjoyment of life and liberty, with
the means of acquiring and possessing property, and pursuing and obtaining happiness and
safety.” This document was approved in Virginia just days before the Second Continental
Congress met and proves influenced Thomas Jefferson in writing of the Declaration of
Independence.
Butchers' Union Co. v. Crescent City Co.28, considered Jefferson's phrase to refer to one's
economic vocation of choice rather than the just the search for emotional fulfillment, although
one may be predicated on the other. U.S. Supreme Court Associate Justice Stephen Johnson Field
Among these inalienable rights, as proclaimed in that great document, is the right of men to
pursue their happiness, by which is meant the right to pursue any lawful business or
vocation, in any manner not inconsistent with the equal rights of others, which may increase
their prosperity or develop their faculties, so as to give to them their highest enjoyment."
Justice Field was also a vocal proponent of the substantive due process theory that protected
property from regulations under the 14th Amendment --as illustrated in his dissents to the
27 http://www.constitution.org/bcp/virg_dor.htm
28 Butchers' Union Co. v. Crescent City Co., 111 U.S. 746 (1884),
Slaughterhouse Cases29.
In Munn v. Illinois.30 along with the Slaughterhouse Cases, Field's views were eventually
adopted by the court's majority, Although not until after his death. Justice Johnson also helped
end income tax 31(Pollock v. Farmers' Loan and Trust Company), where upon until 1909 32 the
33
United States did not collect taxes-until congress enacted the Sixteenth Amendment
The resolution proposing the Sixteenth Amendment was passed by the Sixty-first Congress and
submitted to legislatures of the several states on July 12, 1909. The strongest support for the
income tax was from the western states, where the strongest opposition were from northeastern
states. The governor of New York, Charles Evans Hughes, who later became a Supreme Court
justice, opposed the income tax amendment based on the vagueness and the risks of the courts
deciding that the phrase "from whatever source derived" implied that passage would allow the
federal government the power to tax state and municipal bonds and thus excessively centralize
government power.
74 (1873)
31 Pollock v. Farmers' Loan & Trust Company, 157 U.S. 429,[1] aff'd on reh'g, 158
U.S. 601[2] (1895) was an important Supreme Court of the United States case in which
the court ruled that the unapportioned income taxes on interest, dividends and rents
imposed by the Income Tax Act of 1894 were, in effect, direct taxes, and were
unconstitutional because they violated the rule that direct taxes be apportioned.
32 http://www.geocities.com/erl16169/federalincometaxation.html
33 The Congress shall have power to lay and collect taxes on incomes, from whatever
source derived, without apportionment among the several States, and without regard to
February 25, 1913, the Secretary of State Philander Knox proclaimed that the amendment had
been ratified by the necessary three-fourths of the states, and thus had become part of the
Constitution. An income tax, the Revenue Act of 1913 was shortly passed by the Congress.
Chapter II
"So who the hell cares? There wouldn't be a United States if it wasn't for a bunch of
radicals. I once heard of a radical named George Washington. As a matter of fact from
To change the course of the future past mistakes and knowledge and understanding of
history is crucial.
A US Representative had two attempts made on his life after charging the Federal
Reserve, the US Secretary of Treasury and the Board of Governors of Treason and,
Most people know the Secret Service are the guards for the US President.
Until March 1, 2003, the Service was part of the United States Department of Treasury 34
Although the Secret Service is now Homeland Security chartered under the Department
of Treasury. In charge of protecting the national treasury of the United States of America.
In 1963 there was a battle of what the National Treasury should be based upon.
The Federal Reserve or the United States to return back to the ‘Silver and Gold
Standard’
(Google executive order 1110 signed by President John F. Kennedy June 1963, Just
34 http://www.secretservice.gov/history.shtml
months before he was assasinated in Dallas, TX).
Also, a note to remember: A Republican by the name of C. Douglas Dillon was Secretary
1913 Woodrow Wilson Signed into the law the Federal Reserve Act.
At that time; William Gibbs McAdoo, Jr was the Secretary of the US Treasury
Department and also the first Chairman of the Federal Reserve Board.
McAdoo kept the U.S. on the Gold Standard. He ordered the closing of the New York
Stock Exchange for an unprecedented four months to prevent Europeans from selling
American securities and exchanging the proceeds for dollars, and then gold. averted an
immediate panic and collapse of the American financial and stock markets..
Andrew William Mellon Secretary of the Treasury from March 4, 1921 until February
12, 1932.
Mellon became unpopular with the onset of the Great Depression In part due to refusing
to lend cash to banks (taking loans and other investments as collateral), and by refusing to
October 1929. The United States was plunged into an economic disaster of profound
proportions. Many blamed the crisis on the fluctuating price of gold, which directly
affected the U.S. dollar because it was pegged to the value of gold.
Although the drastic fluctuations was not nearly as drastic as would be seen 80 years
later. Only during the Great Depression did Franklin D. Roosevelt decide to raise the
gold standard from about $20 to $35 per ounce which in 1873 was originally set at was
Even with the value of the US Dollar pegged to the Value of Gold. During the
Nixon Administration eliminated the fixed gold price in 1971 which will be discussed
later on.
Calvin Coolidge, serving under Secretary Andrew W. Mellon. In this capacity he served
In 1932 Ogden Lingston Mills was appointed Secretary of the Treasury by Herbert
Hoover following Mellon's resignation to serve as U.S. Ambassador to the Court of St.
James. Mills served until March 3, 1933. (February 12, 1932 – March 3. 1933). Mills was
Anti-New Deal economists Milton Friedman and Anna Schwartz said, "The 'cure' came
close to being worse than the disease." 35To avoid future "cures" the Congress created the
Along with the new Deal FDR Issued Executive Order 610236, forbidding the Hoarding
35 http://delong.typepad.com/pdf/20070308_108-115.delong.FINAL.pdfJ. Bradford Delong Right from the
Start?What Milton Friedman can teach progressives.Milton Friedman: a biography By Lanny Ebenstein •
Palgrave
36 http://www.presidency.ucsb.edu/ws/index.php?pid=14611 Executive Order 6102 - Requiring Gold Coin,
of Gold Coin, Gold Bullion, and Gold Certificates." requiring all persons to deliver on or
before May 1, 1933 all gold coin, gold bullion, and gold certificates owned by them to
Executive Order 6102 is important as you are shown the disease of a nation.
In 1873: United States adoption of a gold standard de facto was set at 20.67 dollars to
1 troy ounce (31.1 g) gold. The price of gold was relatively unchanged from 1873-1933.
In March 9, 1933, the Franklin D. Roosevelt administration also Amended the Trading
With the Enemy Act of October 6, 191737, where upon it was enacted a violation of the
executive order 6102 (Id) was punishable by fine up to $10,000 ($166,640 if adjusted for
inflation as of 2008) or up to ten years in prison, or both. This forced immediate sale of
gold to the Federal Reserve at the government set price of $20.67 per troy ounce,
With special emphasis on 1913 and the Federal Reserve Act and 1917 when Trading
Clarence Dillon was an American financier, and namesake of Dillon, Read & Co., an
investment bank. Father of C. Douglas Dillon Vice President of Dillon Read &
Company and later became Secretary of the Treasury, (1961-65) born in Geneva,
Switzerland in 1909
During the First World War, Clarence Dillion, a senior figure at the War Industries
Board, (WIB) arranged for Bush, to become chief of the Ordnance Small Arms and
Prescott S. Bush attended Yale University in 1913 and became a member of the Skull
and Bones Secret Society. A fellow member was E. Roland Harriman, the younger
In 1919 Prescott Bush was introduced to George Herbert Walker by Prescott’s Friend
W. Averell Harriman. in August, 1921. Later Prescott Bush married George Herbert
Walker's daughter, Dorothy. Prescot Bush was also introduced by W. Averell Harriman
All the above names are very important to remember, Most importantly are W. Averell
Harriman & Company. This company had made considerable investments in Germany.
38 Officeof Alien Property Custodian, Vesting Order No. 126. Signed by Leo T. Crowley,
Alien Property Custodian, executed August 28, 1942. F.R. Doc. 42-8774; Filed
September 4, 1942, 10:55 A.M.; 7 F.R. 7061 (No. 176, Sept. 5, 1942.) July 18, 1942,
Memorandum To the Executive Committee of the Office of Alien Property Custodian,
stamped CONFIDENTIAL, from the Division of Investigation and Research, Homer
In 1926 Harriman and Clarence Dillon of Dillon Read Company helped Fritz
Thyssen and Friedrich Flick to establish the German Steel Trust According to Anton
Chaitkin ; the son of Jacob Chaitkin, legal counsel and strategist for the Boycott
against Nazi Germany carried on by the American Jewish Congress in the 1930s. 39
Read provided two representatives to the board of the German Steel Trust and took
responsibility for its corporate banking. Prescott Bush was appointed as a director of the
Harriman Fifteen Corporation. This in turn controlled the Consolidated Silesian Steel
Friedrich Flick owned the other two-thirds of the operation. Flick was a leading
financial supporter of the Nazi Party and in the 1930s donated over seven million marks
to the party. A close friend of Heinrich Himmler, Flick also gave the Schutz Staffeinel
In 1928 Fritz Thyssen ; One of the leading backers of the Nazi Party started a joint-
venture with Harriman called the Union Banking Corporation. This was used to
transfer funds between the United States and Germany. In 1931 W.A. Harriman &
In 1902-1912 Retired General Smedley Darlington Butler July 30, 1881 – June 21, 1940
Jones, Chief. Now declassified in United States National Archives, Suitland, Maryland
annex. See Record Group 131, Alien Property Custodian, investigative reports, in file box
relating to Vesting Order No. 126.
39 New York Times, January 10, 1934, p. 31 col. 3
40 http://www.spartacus.schoolnet.co.uk/GERflickF.htm
41 http://en.wikipedia.org/wiki/Brown_Brothers_and_Co.
Was stationed in Nicaragua42 where he would later state:
“I helped in the raping of half a dozen Central American republics for the benefit of
Wall Street. I helped purify Nicaragua for the International Banking House of Brown
Brothers in 1902-1912“43
Prescott Bush, along with W. Averell Harriman, E. Roland Harriman and George
Herbert Walker became managing partners in the new company, Brown Brothers
Harriman. This was to develop into the most important private banking house in
America.
In 1930, Allen Dulles (later the American Director of Central Intelligence from 1953 to
1961)44 arranged for the wealthy Czech family, the Petscheks to sell their interest in
Silesian Coal ( Consolidated Silesian Steel Corporation and Upper Silesian Coal and
Steel Company) to George Mernane who was assigned to hide the Petscheks interest.
Allen Dulles then sold the shares to the Nazi Plenipotentiary for War Economy (aka
economic minister), Hjalmar Schacht. After the sale, Allen Dulles became a director
From January 31, 1931 to August that same year General Smedly Butler went
across the country on a lecture circuit.
42 http://en.wikipedia.org/wiki/United_States_occupation_of_Nicaragua
43 War Is A Racket Smedley Darlington Butler(July 30, 1881 – June 21, 1940), Maj Gen USMC 1898–
1931 13th Regiment Marine Expeditionary Force, China
44 http://en.wikipedia.org/wiki/Allen_Welsh_Dulles
45 http://www.economicexpert.com/a/Silesian:American:Corporation.html
General Butler recounted a story told to him by journalist Cornelius Vanderbilt.
Vanderbilt who had been in a car with Benito Mussolini when they ran over and killed a
young boy who was crossing the street. Mussolini told the driver to continue driving and
that the boy's life was insignificant 'What is one life in the affairs of a State’
Due to the strong statements Butler was making the Italian government protested
President Hoover, strongly disliked Butler, and forced Secretary of the Navy Adams to
court-martial Butler. Butler was the first general officer to be arrested since the Civil
War. Butler apologized to the Secretary of the Navy Adams where the court-martial was
In August 31, announced his retirement and set out on a lecture tour, contributing half his
Smedley Butler started exposing the ties of Military operations to preserve Corporate
interests before his retirement. In August 1931, Jules Archer, the author of the only book
focused on The Business Plot- a fascist plot to oust President F.D. Roosevelt.
Where he used the "racketeer for capitalism" epigram that appeared variously in his
speeches and writings thereafter. Most frequently cited was the 1935 Common Sense
article:
"So who the hell cares?" Butler shrugged. "There wouldn't be a United States if it
wasn't for a bunch of radicals. I once heard of a radical named George Washington.
46 an excerpt from: The Plot to Seize the White House Jules Archer(C)1973 Hawthorne Books, Inc. New
York, NY -----
June 10, 1932, Louis Thomas McFadden, US Representative from PA made a 25-
minute speech before the House of Representatives, in which he accused the Federal
McFadden also claimed that Wall Street bankers funded the Bolshevik Revolution
through the Federal Reserve banks and the European central banks with which it
resolution bringing conspiracy charges against the Board of Governors of the Federal
Reserve.
Wall Street Bankers during that era were, But not limited to
George Herbert Walker President of the W.A Harriman & Co. W.A. Harriman & Co.
W. Averell Harriman Founder W.A. Harriman & Co Harriman Brothers & Co In 1931
they merged with Brown Bros. & Co to create the highly successful Brown Brothers
Harriman & Co
In 1931 they merged with Brown Bros & Co. to create the highly successful Brown
47 http://home.hiwaay.net/~becraft/mcfadden.html
Brothers Harriman & Co.
Copper Mining Company, Guaranty Trust Company, New York Trust Company,
Bethlehem Steel, Goodyear Tire & Rubber, New York Railways, Fifth Avenue Coach
Sullivan & Cromwell LLP Partners John Foster Dulles- Later served as U.S
Mr. Dean At the request of President Roosevelt, worked on the Department of Commerce
He later served as a negotiator and adviser other Presidents: Eisenhower, Kennedy, and
Johnson 52
The House of Morgan: An American Banking Dynasty and the Rise of Modern
48 http://en.wikipedia.org/wiki/E._Roland_Harriman
49 http://en.wikipedia.org/wiki/Brown_Brothers_Harriman
50 http://en.wikipedia.org/wiki/Grayson_Mallet-Prevost_Murphy
51 http://en.wikipedia.org/wiki/John_Foster_Dulles
52 “Arthur H. Dean, Envoy to Korea Talks, Dies at 89”The New York Times Published: December 1, 1987
Finance, by Ron Chernow
The House of Morgan: An American Banking Dynasty and the Rise of Modern
Finance, by Ron Chernow, reports that JP Morgan was Mussolini's banker for over
$500,000,000 and heavily invested in fascist Japan by 1931. JP Morgan also having in
A Law Unto Itself: The Untold Story of the Law Firm of Sullivan and Cromwell,
authors; Nancy Lisagor, Frank Ipsivs, reported John Foster Dulles and Sullivan and
Cromwell & Co law firm was invested with as much as $1.15 BILLION in Germany by
1931.
Titan : The Life of John D. Rockefeller, Sr., by Ron Chernow,: exposed the Rockefeller
lawbreaking, industrial spying, and philosophy "the weakest must die first".
Articles of impeachment for the Secretary of the Treasury, two assistant Secretaries
of the Treasury, the Board of Governors of the Federal Reserve, and the officers and
"Whereas, I charge. . .Eugene Meyer, Roy A. Young, Edmund Platt, Eugene B. Black,
Adolph Casper Miller, Charles S. Hamlin, George R. James, Andrew W. Mellon (US
Federal Reserve Board; F. H. Curtis, J.H. Chane, R.L. Austin, George De Camp, L.B.
Williams, W.W. Hoxton, Oscar Newton, E.M. Stevens, J.S. Wood, J.N. Payton, M.L.
McClure, C.C. Walsh, Isaac B. Newton, Federal Reserve Agents, jointly and severally,
with violations of the Constitution and laws of the United States, and whereas I charge
them with having taken funds from the U.S Treasury which were not appropriated by the
Congress of the United States, and I charge them with having unlawfully taken over
$80,000,000,000 from the U.S. Government in the year 1928, the said unlawful taking
consisting of the unlawful creation of claims against the U.S. Treasury to the extent of
over $80,000,000,000 in the year 1928; and I charge them with similar thefts committed
in 1929, 1930, 1931, 1932 and 1933, and in years previous to 1928, amounting to billions
of dollars..."
There were two attempts on McFadden's life, a failed shooting and an apparent poisoning
that made him "violently ill" after attending a political banquet in Washington
It appears that Louis McFadden was prophetic of our own disjointed times, McFadden
“Are you going to let these thieves get off scot free? Is there one law for the looter
who drives up to the door of the United States Treasury in his limousine and
another for the United States Veterans who are sleeping on the floor of a
56 Congressional Record, June 1, 1932 to June 11, 1932, U.S. Government Printing
Office.
Reporting his death in its October 14 issue, Pelley’s Weekly 57 it “became known among
his intimates that he had suffered two [previous] attacks against his life. The first attack
came in the form of two revolver shots fired at him from ambush as he was alighting
from a cab in front of one of the Capital hotels. Fortunately both shots missed him, the
on Oct. 3, 1936, after a "dose" of "intestinal flu," "Pelley's Weekly" of Oct. 14 said: “Now
against his life. The first attack came in the form of two
emergency treatment."
The Second attempt on Congressman McFadden’s ‘He became violently ill after
partaking of food at a political banquet at Washington. His life was only saved from what
banquet, who at once procured a stomach pump and subjected the congressman to
emergency treatment.’
It could be argued that there was a third assassination on Mr McFadden’s life which was
successful. Resulting in the deatj of very articulate critic of the Federal Reserve and the
In May 1933, the Harriman International Company,( became the head of a syndicate of
150 firms and individuals to conduct all exports from Hitler's Germany to the United
States. The agreement had been negotiated by John Foster Dulles and Hitler's economic
minister, Hjalmar Schacht. Dulles was the international attorney for several Nazi
enterprises and in September, 1937, he wrote to Prescott Bush about the German Atlantic
Cable Company, that owned Nazi Germany's only telegraph channel to the United States.
Prescott Bush handed Averell Harriman a copy of the March 19th 1934 edition the New
York Times. The Polish government was applying to take over Consolidated Silesian
Steel Corporation and Upper Silesian Coal and Steel Company from "German and
bookkeeping and gambling in securities." The Polish government required the owners of
the company, which accounted for over 45% of Poland's steel production, to pay at least
its full share of back taxes. Bush and Harriman would eventually hire attorney John
Foster Dulles to help cover up any improprieties that might arise under investigative
scrutiny.58
John Foster Dulles is the older brother of Allen Welsh Dulles, Allen W. Dulles was also
a member of the Warren Commission and a former Director of the Central Intelligence
1953–61
Sullivan & Cromwell LLP partners included John Foster Dulles and Aurther Dean the
firm benefited from doing business with the Nazi regime, and throughout 1934, Dulles
21 March 1934: Hitler announced the "war on unemployment," emphasizing the need to
58 George Bush: The Unauthorized Biography by Webster G. Tarpley & Anton Chaitkin
59 http://en.wikipedia.org/wiki/Hjalmar_Schacht
In July 1, 1934 Gerald MacGuire on behalf of several business owners, bankers and most
famous names of the time contacted Retired Major General Smedley Butler at his home
" Irenee Du Pont - Right-wing chemical industrialist and founder of the American Liberty
" Grayson Murphy - Director of Goodyear, Bethlehem Steel and a group of J.P. Morgan
banks.
" William Doyle - Former state commander of the American Legion and a central plotter
of the coup.
" John Davis - Former Democratic presidential candidate and a senior attorney for J.P.
Morgan.
" Al Smith - Roosevelt's bitter political foe from New York. Smith was a former governor
" John J. Raskob - A high-ranking Du Pont officer and a former chairman of the
Democratic Party. In later decades, Raskob would become a "Knight of Malta," a Roman
Catholic Religious Order with a high percentage of CIA spies, including CIA Directors
" Robert Clark - One of Wall Street's richest bankers and stockbrokers.
" Gerald MacGuire - Bond salesman for Clark, and a former commander of the
Connecticut American Legion. MacGuire was the key recruiter to General Butler.
In 1935, Dulles closed Sullivan & Cromwell's Berlin office; later he would cite the
company assets seized by the US Government in accordance to the Trading With The
Enemy Act (amended 1933), Clearly an effort to clear his reputation and protect the firm
by shortening his involvement with Nazi Germany from having similar actions handed
to Sullivan & Cromwell which resulted in 1933 with friends Prescott Sheldon Bush
The Hariman Brothers and Herbert Walker Bush with the seizure of Union
Adolf Hitler's invasion of Poland in 1939 ended the debate about Consolidated Silesian
Steel Corporation and Upper Silesian Coal and Steel Company. The Nazis knocked
the Polish Government off Thyssen, Flick and Harriman's steel company ; Silesian Steel
Corporation and Upper Silesian Coal and Steel Company and were planning to
Originally Hitler promised Stalin they would share Poland and use Soviet prisoners as
slaves in Polish factories. Hitler's promise never actually materialized and eventually
61 http://en.wikipedia.org/wiki/Sullivan_%26_Cromwell
62 Overthrow: America's Century of Regime Change from Hawaii to Iraq Stephen Kinzer
20 October, 1942, the United States government seized the assets of the Union Banking
Corporation. The shares of the bank were owned by Prescott Bush, E. Roland Harriman,
and a couple of members of the Nazi Party . Under the Trading with the Enemy Act,
the government took over the Union Banking Corporation and the Silesian-American
Corporation , a company that had been managed by Prescott Bush and his father-in-law
By Oct. 26, 1942, U.S. troops were under way for North Africa. On Oct. 28, the
government issued orders seizing two Nazi front organizations run by the Bush-Harriman
bank: the Holland-American Trading Corporation and the Seamless Steel Equipment
Corporation.
(Vesting Order Number 248 October 20, 1942; F.R. Doc. 42-11568)
resigning as councillor And remained there until 1945 and the end of World War II he
was then released from the German concentration camp, and placed under arrest By the
New German Government. Where the German Court convicted Thyssen for being a
The German Court ordered Thyssen to hand over 15 per cent of his property to provide
for the victims of Nazi persecution. Fritz Thyssen died in Buenos Aires on 8th February,
1951
Historian Anton Chaitkin recently discovered that Marty Peretz, chief personal
adviser to Al Gore, and owner and publisher of The New Republic, married the great-
niece and heir of Robert Sterling Clark, fascist protagonist of the coup plot against FDR.
Today, once again in the middle of a global financial crisis, a new coup is in progress, one
that would destroy the Presidency, the social policy that is the legacy of FDR, and the
constituency-based Democratic Party, which represents the political bull work against a
banker's dictatorship. Through deregulation, they have already ripped away many of the
fetters that Roosevelt put on the bankers' power. As Lyndon LaRouche has warned, that
coup must be defeated to defend our republic from a fate even worse than envisioned by
Morgan coup plotters back in 1933. To accomplish this, we must, as LaRouche calls for,
rally the forces to rebuild the Democratic Party in the image of the party of FDR.
The American Liberty League was funded by donations from US Steel, General Motors,
Chase Manhattan Bank, Standard Oil, Goodyear and the Dupont family, among others.
Not surprisingly, the League would later actively oppose almost every major piece of
New Deal legislation, including, but not limited too Social Security
The press was spouting junk about the "noble" efforts of some financiers that supposedly
pumped money in huge amounts into the market in October 1929 when the crash started.
So Far, we have a recount of 1909 up to 1942 with much of the discussions related to the
Great Depression apparently showing that based on the maneuvers of certain banking
industries in the era between 1909 or before up to 1929 were part of what created the
Great Depression. Through manipulations of the stock market along with some other
issues related to the transfer responsibility of the Nations wealth from the Department of
What we are finding with Federal Reserve Banks, they were fighting for the preservation
of power to be established and potentially grow just as the United States itself done from
1775-1891 just prior to the , whole and entirety , of the banker's monopoly of all the
currency of the United States Government. In 1893 the repeal of Sherman Silver
Purchase Act could actually be argued as the slippery slope where the transfer of power
actually began to take a foothold with the designs of the inner workings of Corporate
America and the Banking Industries manipulation into seizing the country.
The strategies were argued on the US Congress floor in some detail by Congressman
Louis McFadden who for 25 minutes in finite detail attempted to show just how corrupt
the Federal Reserve was, and what their ultimate goals would be for the next 100 years
and longer. Mr McFadden also warned of the problems that would result in such a
problem. With exampling the Feds actions as nothing less then tyrannical. Smedley
Butler spoke to the US Senate on these same issues that were transpiring. Where He was
given the inside workings of a Fascist government takeover and offered a position that
would be equal to Franklin D. Rooselvelt, and The President of the United States of
America being nothing more then a ghost title in the new governmental structure that the
Financiers and big businesses which the Retired Major General Exposed to the US
Senate.
This exposure to the “Business Plot“ Of Government Intervention in the free market
would allow not only the banking industry to control the Government It would eventually
create would be nothing less then the same form of Government that we are seeing being
experimented with today. The Universal Plan. A Socialized or Universal Insurance Plan.
The Ideals of Intervention with a Keynesian economics Theology for the Government.
economic growth and improve stability in the free market - through, interest rates
changing tax laws, public work projects as well as other more modern strategies such as
through borrowing for the programs as well as attempting to prop up a falling system
which over the course of several decades of decay only begins to weaken the entire inner
structure of the financial market and resulting in the employment sector and gross
It is evident that looking back at the Great Depression Era that it was more then just the
New Deal that was to drive the economy back to a rebound. Unfortunately the main
driving factor was the United States of America entering into World War II, which
reversed the economy of the country. With a dire need for military equipment clothing
and other supplies for the war that was raging throughout Europe and the Pacific. Not
only to supply our own national defense but the defense for other nations whom we were
allied with.
The need for factories and the industrial force of the United States generating an actual
boost the nation actually was able to use as a form of nutrition for the economy.
The stimulus that was experimented with by Franklin D. Roosevelt was at very least a
hazard to the financial market that was only saved by enacting the FDIC through the The
With Unemployment levels fluctuating drastically over the course of 1929-1941 with a
very large increase in 1936 well after the New Deal had already been in effect. Along
with the over the course of years prior the constant outsourcing of materials such as
selling scrap steel and other goods to to Germany and Japan with an unbalanced trade
agreement where more products were being sold at a considerably lower cost to the
Businesses resulted in the demise of factories being able to keep up with the competitive
America was faced with taking a roll that was mirrored only to the biblical times when
Essau sold his birthright to his younger brother Jacob for a bowl of Soup.
Ironically the soup lines were one of the most populated areas of the communities all
over the Nation. With Industries closing down due to the lack of being able to afford the
costs. The inability to pay for the staff, combined with the lack of sales creating the
ballon of the roaring 20s to suddenly explode. It has been argued that the cause of the
Great Depression was due to the lack of action on behalf of the President
We will now begin to examine the financial markets and the economy that was dating
from 1942-2009
If you recall just last month Former Soviet leader Mikhail Gorbachev stated that America
So what is perestroika in the first place? And where was int used in the history of the
Soviet Union?
Before I reveal to you a recent perestroika, allow me to take you on a stroll through the
corridors of World history that has transpired over the last 60 some odd years ago. In
We were then faced with the threats and fear of a global expansionism of the USSR or
Russia began a campaign immediately after World War II to embark on promoting the
Stalinism considered by Joseph Stalin as the best form of government with the
propaganda machine of the Socialist party indoctrinating third world countries that best
stability in economic markets And the best form of government for the world was a
On the other side of the globe, The USA was working to ensure that the ideologies held
by a democratic republic would take root, and expand the theory of free trade and
capitalism without the intervention of a government in assisting with the rise and or fall
of a free market. And yet keeping a fundamental control on mandating regulations that
will prevent a a free market from reaching a danger zone of being too big to let fail.
The US began doing a campaign of tours with our military might and funding in far away
lands that most Americans before had never even imagined of visiting.
Korea in the 1950s. And then, we sent Americas Military to Vietnam all in order to
protect the government from Communist expansion. The propaganda that come from the
Capital was this was else precedence in protecting the security of the nation and
democracy. We Then was found taking a short 90 mile cruise to Cuba, where we set up a
blockade to stop the shipment of nuclear arms from the Soviet Union into what was now
a newly converted Soviet Ally just 90 miles from the shores of the US.
This in part was the result of failed diplomacy plan with Cuba
This continued on through each administration. Lyndon Johnson and the plot for
expansion into Indochina, Richard Nixon and his endeavors to promote democracy in
Pakistan; Then, during the Carter Administration with providing military supplies to
Saudi Arabia and the Mutawakkilite Kingdom of Yemen during their civil war against
communists and the further potential for Iraq to become part of a group of middle east
the Reagan administration. where the United States found another opportunity to further
the cause of promoting democratic republics in the Middle East. And in South America
out of that country. There lied a wonderful opportunity for the Foot hold of democracy to
take place and further expand the interests of the United States..
Funding began going to the Freedom fighters, providing arms and training for these
soldiers who were also known as the Mujahadeen- We now know many of the members
of this Muslim militant organization as al Queda. The Mujahadeen was doing their best to
get remove Russian Military out of Afghanistan. As this war waged on, the USSR
economy was beginning to have an effect on how they would continue on.
Throughout the periods mentioned, the Soviet Union maintained equal or superiority to
the United States in the areas of military numbers and technology, but this ultimately
strained the Soviet Unions economy. In contrast to the revolutionary spirit that
Then the Soviet leader Mikhail Gorbachev decided to do something that today we are
witnessing again. Only not in Russia. We are hearing of this same strategy being
This was something that has a very complicated details But to keep it really easy for the
Economic interventionism
Prior to Mikhail Gorbachev taking control of the Soviet Union Brezhnev stagnation
Developed, This resulted in borrowing money, the decline of the ruble or rouble began to
go on a steady and speedy decline in value. And an increase in the soviet black market.
The Soviet Bank attempted to adjust this with many strategies that are often used in the
banking industry. Reducing interest rates. and increasing in lending mass amounts of
money to the smaller soviet Bloc countries for their governments to continue on with
their operations of the Socialized business operations and providing socialized medical
plans for all people. and all the other operations for which a government needs funding
for. This ultimately led to the Reforms of Gorbachev and collapse of the Soviet Union
During the Mid 1970s The Global economy began to weaken. Gas was being rationed.
the Interest rates was being lowered by the Federal Reserve having some of the names we
are hearing even today. Mr. Volkcker was all part of this failing global economy dating as
He was not only chairman of the Federal Reserve during the Carter Administration and
the Reagan administration (August 6, 1979 – August 11, 1987) In 1952 he joined the staff
of the Federal Reserve Bank of New York as a full-time economist. He then left that
position in 1957 to become a financial economist with the Chase Manhattan Bank. In
1962 he joined the U.S. Treasury Department as director of financial analysis, and in
1963 he became deputy under-secretary for monetary affairs. Now keep in mind at this
time John F. Kennedy decided to issue an executive order. EO1110 which directed the
Department of Treasury to begin printing out 6 billion dollars in Silver Certificates. (June
1963, In Nov 1963 John F. Kennedy was assassinated in Dallas TX and America was told
by among others who collectively believed Now Arlen Spector’s Magical Bullet Theory
that we are all told hit President Kennedy Stalled in mid Air for a little over a second
turned Hit the Governor of Tx and done more acrobats then a gymnast in the Olympics!.
In 1965 Mr Volker then returned to Chase Manhattan Bank as vice president and director
of planning.
Harry Truman, Dwight Eisenhower, John F. Kennedy, Lyndon B. Johnson and Richard
Nixon
When I first began this, it was all to come to answering the questions of whether or not
Sadly Before I began this the bailout plans of 700 billion was began which was also a bad
strategy through the use of borrowing money from the Federal Reserve in the hopes that
it would instill a stimulus into the economy and stop the locomotive carrying the Great
Financial Disaster of the United States.
Back in 2000 America was told of the problems of a recession that was coming and the
strategies that were introduced were a retroactive tax refund to the tax payers.
At that time Members on the US Senate Floor such as the Late Paul Wellstone and others
argued that we had just come out of debt and this would create a problem with taking
from the Government for other needs such as but not limited to education, healthcare
Border Control and the National Security At that time I personally was writing to several
of the members of the Congress. Paul Wellstone. Joe Lieberman, Joe Biden. Barbra
Boxer Robert Byrd Orin Hatch and many many others. Stating that the Economic
Growth and Tax Relief Reconciliation Act of 2001 was a bad idea basing my argument
on the same issues which were presented on the House and Senate Floor, and adding that
if we were catapulted into a crisis such as a natural disaster or an attack on our nation that
we would be in need of the billions of dollars which was planned to be given away to the
tax payer with the theory that the tax payer would put that money back into the economy
Without knowing that in September 11, 2001 America was witness four passenger aircraft
crashing 3 of which would hit the World Trade Center, and the Pentegon along one of the
most costly natural disasters America had faced. Hurricane Katrina. In 2005
These two alone drove the Governments needs for an extraordinary amount of funding.
That catapulted the United States from a having a surplus of about 230 billion dollars.
Though many of the Senators had taken my letters to President Bush the administration
First off I must stress that Government Intervention has already been established as a bad
idea. It increases the risks of not only taking a course of Tyranny, Communism, Fascism
Fathers all 55 signers of the Declaration of Independence warned of if their vision was
not seen by a future group of leaders. And the People, having no rights to change would
ultimately be faced with a government 7 times worse then that which the 13 colonies
were so boldly working on breaking away from. For a reason that was nothing less then
the control of a body that was not looking at the interests of the people but of the self
interests of their own private circles of hierarchy . So Before I go further I must stress
that any “Bailouts by the US Government of the Banking or business sector should not be
considered for risks of altering the process of Free Markets to have its due course.
Anti Trust Laws being as worthless as a dollar bill that has no basis for its worth.
In the first 3 chapters you seen the topics that have led America down the courses which
Really the measures were not so drastic as they were uncharted courses that in some ways
had never been attempted before. As well as utilizing some economic strategies that
created a division. Not only in the banking industry alone but also even in political
circles of the administrations time.
In 1933 President Franklin D. Roosevelt went nose to nose with the problem with
This is a very key strategy that the current legislation must spearhead.
One would be to Reinstate the Emergency Banking Act of 1933, which put the entire U.S.
One part that would be vital is repeal the Gramm Leach Bliley Act
Another vital part would be to enact an executive order along the similar wording that EO
6102 Enacted by Franklin D Roosevelt where It requires all persons and Federal Reserve
Banks to deliver on or before a set date all gold coin, gold bullion, which was delivered
to the Federal Reserve in 6102 by May 1933 back to the the Department of Treasury.
Initiate a program to pay any and all outstanding debts owed by the United States
Allowed a plan that would close down insolvent banks and reorganize and reopen those
banks strong enough to survive. Those which are holding toxic or insolvent loans would
be revised in a way that the Lenders were held able to collect certain amounts under the
responsible parties which have so duly destroyed the economic stability of the US Dollar
to be held accountable and compensate the United States Governement through the
Reinstate and Revise the Federal Emergency Relief Act (ch. 30, 48 Stat. 55, enacted
1933-05-12).
Take accurate accountability the amount of gifts in gold and other precious medals to
officers and agents of the United States of America so as this also is added into the
reserve of precious medals that would be as a basis for the monetary system resturing
With further research revisit the possibility to reinstate The Coinage Act or the Mint Act
1792