I had actually heard about this story a couple of days ago and it peaked my interest. It was from Rush Limbaugh so I took it with a grain of salt and thought I would look into it when I had a bit of time. Then all the sudden I heard three or four members of Congress mention it, which at least validated it wasn’t a Rush fantasy. So I started digging a bit and did not know quite what to make of what I found. It seems that a significant amount of money was mysteriously withdrawn from American Money Market Accounts back in September. I don’t mean like someone meant to withdraw $500 and hit zero two extra times and accidentally withdrew $50,000. That’s child’s play….
So let’s set the stage here a little bit. Representative Paul Kanjorsky (Democrat, PA 11th District), Chair of the Capital Markets Subcommittee, is giving an interview and discussing why Congress so quickly and so without thinking through accountability issues, passed the TARP bailout of the financial sector in America. During the discussion, as justification he drops a bomb. He says that the Chairman of the Federal Reserve came to members of Congress and said the following:
“On Thursday Sept 15, 2008 at roughly 11 AM The Federal Reserve noticed a tremendous draw down of money market accounts in the USA to the tune of $550 Billion dollars in a matter of an hour or two.
Money was being removed electronically.
The treasury tried to help with $105 Billion. But could not stem the tide.
It was an electronic run on the banks. The treasury intervened but had they not closed down the accounts they estimated that by 2 PM that afternoon. Within 3 hours. $5.5 Trillion would have been withdrawled and collapsed and within 24 hours the world economy.”
Let’s put that into regular words. $550 BILLION was withdrawn electronically in a 120 minute period. That is the wealth of many smaller countries in the world. That is the majority of the Economic Spendulus Bill. And it would have been much worse had the Federal Reserve not closed down the accounts and immediately announced a $250k guarantee on those accounts. And no one mentioned this until February, almost 5 months later?
So the question has to be asked: Who withdrew the money, and why? I will present some ideas here, but according to our good friends in Congress and the Federal Reserve, no one knows who did it or why. They only know that this was the big turn in the economy that started the downward spiral that the Messiah is here to save us from. So what was the political situation at that time? In Obama fervor, many forget that at that point in time John McCain actually led Obama in National polling:
“The Rasmussen Reports daily Presidential Tracking Poll for Monday shows John McCain attracting 49% of the vote while Barack Obama earns 47%.
What turned Obama’s frown upside down? The Economy. There are very few who would deny that the economic downturn in late September and early October was the catalyst for the Obama surge and eventual victory. Bottom line: Good economy, good for Republicans, Bad economy, good for the Democrats. So McCain leads, Obama trails, and then suddenly, without warning, the economy tanks and becomes the key platform issue going forward. Democrats lie and lay all the blame at the foot of George Bush. They tell America that John McCain will continue evil Bush’s economic plans and we are going to go into a Great Depression, Part Deux.
So was this run on the banks intentional? Did someone want to make sure that Barrack Obama won this race? If so who would have that kind of power over the money market industry? George Soros? Maybe. The international financial conspirators of the Zeitgeist? Surely if I believed in that conspiracy theory. What about terrorists or foreign governments that preferred to see a Democrat, weak on US military policies, as opposed to a Republican? Certainly Al Qaeda, who have already gotten the promise to close Gitmo and no more “torture” on terrorism suspects who have information on coming attacks, would want to see Obama over McCain. What about China, they intend to take us out financially anyway.
I certainly don’t know who is responsible. I know that this contributed to our economic downturn in America. I know that the timing of it was certainly suspect. And I know that it is stories like this that have me a bit worried. So I will open it up to your theories and debates below.
One final thought on Representative Kanjorsky’s statements. Later in the interview, he states clearly that had the Federal Reserve not acted, we would have seen the end of the economic system and the political system as we know it. That’s right, the end of the political system as we know it if the Federal Reserve hadn’t stepped in to stop it. See I told you government intervention in the free market was a bad thing. Perhaps they should have let it go on just a little bit longer….
We were so close to change we really could believe in. Damn you Federal Reserve.