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 It seems that a significant amount of money was mysteriously withdrawn from American Money Market Accounts back in September.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 $550 BILLION was withdrawn electronically in a 120 minute period.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.
Black Flag®
commonman55
d13thecolonel
gman
Just A Citizen
Life of Illusion
Jon Smith
USWeapon
Stand Up For America 
In this day and time, nothing would suprise me. The left has many powerful associates and they wanted this election so bad, I believe they would have had no issue doing this to win. They knew exactly what you stated above concerning the economy being bad favoring them. This will never see “the light of day” as promised by our new administration. This whole administration is a sham and the biggest bunch of liars that have ever occupied the white house. The MSM has their hands deep into this crap as well…
You might also remember the candidates’ responses at the time: McCain said he needed to get back to Washington to be a part of this major issue. BO’s response? “They’ll call me if they need me.” Seemed a very strange response and very non-presidential but now perhaps it makes sense. Did he know of this and wanted to stay away from Washington so as not to appear to have “inside information” as to this draw-down? He didn’t return to Washington until asked to do so by Pres. Bush. I also don’t know why we can’t get answers – follow the money? Are there no honest, if not at least curious people in Washington that know of this and want answers too?
I got to give it to you Bob, you are persistent. Do you chastize every post you see that is off content? If so, you are well qualified for the Internet Police Force!
Terry,
Simply ignore Bob. I eliminate his comments with the stroke of a key! I answered him in one of these threads and I literally have hundreds of folks who came here from Fox Forums that enjoy the site and continue to return. He doesn’t bother me and should he continue I will simply ban him from the site.
I never new about this, but I suspected that Obama and cronies had something to do the downturn of the economy to gain status and to take over the Country. He is and will be our worst enemy.
When GHWB was running for re-election, and Billary was his opponent, we had the tanking of the S&L’s all over the place until Congress decided to bring them under FDIC rules because FSLIC went bankrupt bailing them out . . . Billary’s famous slogan of “It’s the economy, stupid!” got him the opportunity to soak a cigar where cigar’s should never be soaked(aka “The rest is history”).
Does anyone know just exactly what it is that gives substance to the Federal Reserve? I am old enough to have seen dollar bills with “Gold Standard” and “Silver Certificate” printed on them, knowing that the gold in Fort Knox and the silver depository actually backed them up – meaning that there was actually something of actual value to them. Now I must admit that I have absolutely no clue as to what backs a “Federal Reserve Note”.
I am also very aware that a rumor without substance is just a rumor, and nothing else. I have heard many rumors of a financial conspiracy that could have been born way back when, but have never seen any substance to those rumors. Having said all that, and also knowing full well that a conspiracy of this magnitude would take hundreds if not thousands of conspirators to accomplish its ultimate goal, how could that many people be gathered together and not one of them leak it to the press for a mere forty pieces of silver? However, there are some pretty good computer hackers out there . . . . . And the beat goes on?
G.A., being a computer programmer, I believe that it would not have taken that many people to pull this type of things off. One person can set up thousands of accounts with dead people’s social security (witness the dead rising in Chicago during an election). Anyway, I believe this could have happened quite easily with very few people involved. Those people would be true believers that would never admit to anything, unless they got an immunity deal:) I think that Rush really is right about 98.8% of the time.
Systems that can access the outside are never completely secure from hacking.
Has anyone heard the story of the $10million lifted from ATM’s around the world a few weeks ago? All withdrawals took place within minutes of each other, from unsuspecting account holders. It was not all that difficult, just a little planning and coordination.
By the way . . . . . . Just WHERE did all that money go to? As I see it, money withdrawn electronically has to be deposited somewhere. The sending institution MUST know where to send it! Only in science fiction can an electronical withdrawal dissapear into the ether never to be found again.
So . . . Before you tear my head off, think about it, and ask your bank that very same question. Better yet – If someone reading this post has the authority, please ask the head of the Federal Reserve.
Kathy,
I think that we need to be careful to not jump to conclusions and accuse a sitting President of what would amount to treason. If we take that step we are no different than the wack job liberals who claim that 9/11 was an inside job. I don’t know that I think the President had any knowledge of what happened. I do think it was done with some obvious intention. Whomever is responsible knew what they were doing. Perhaps they didn’t know what it would lead to, then again perhaps they did. The point is that it happened. There is no arguing that. And if it can happen once, then I want to know what is being done to keep it from happening again. I try to avoid giant conspiracy theories because they usually don’t have much logic behind them. But I would like to know who is responsible. If the RIAA can figure out that some woman in podunk, AK downloaded 24 songs illegally, I have to believe that the government can track where $550 billion went.
G.A.,
We have discussed the monetary system previously. I will try to remember what post it was under and post a link here later. America runs on a fiat money system, which means your money is basically backed by nothing other than the government’s ability to tax its citizens. It is a path to ruin, or ultimate control. As for where the $550 billion went, I agree that nothing is untraceable. So I am not buying any story about “we have no idea where the money went”.
Amy,
Perhaps I am wrong in thinking so, but I would think that making this money disappear would be a massive undertaking. And I am OK with Rush because he represents a point of view and speaks his mind. He is free to do so. I don’t, however, think that he is right that high of a percentage. He goes off on some pretty wild tangents.
Really. The left pulled money out of the markets to win an election? WOW….I didn’t know this? those sneaky hornswagglers. next thing you know they’ll fix this economy and say I told you so! and they’ll plant new structures at Ted Stevens house in Alaska and then try and imprison him!
First of all, it would not be a difficult thing at all to do. One simply needs the codes needed to overide any security in the computer program. Persistence is needed to hack but money will get you information anytime. Makes for good movie plots too ya know. That is why so many movies today are about conspiracies and secret societies. The movie makes money and it discredits the idea of the actual agenda being fulfilled. Don’t get me wrong, I am not saying every movie is about an actual conspiracy or agenda. I am saying that when a movie uses that type of storyline then the actual thought of a real conspiracy agenda seems more ludicrous. No one will pursue the thief because the people who took it felt that they had a right to it.
hint hint After all it’s in the bank they created right.
That bank dear friends is the world bank. Did you hear the world bank was breached as well by the chinese in the middle of last summer, wait, actually from an ip originating in china not necessarily an actual chinese. Sorry immagination ran away there for a bit.
That breach on the world bank was a test run to see how and what to do. If it would work so on and so forth.
USWeapons, thanks for inviting me to this site. There are some excellent arguments being offered on nearly every blog. I’m afraid that I am a talk radio junkie – I listen to Rush, Sean and Mark L. I’m not sure what tangents you are referring to. Normally, I am working (I am currently laid off) and only get to listen to Rush and Sean from time to time. I listen to Mark every night on the way home. Due to his background, he seems to always come at things from a different direction from the others. His monologues are very entertaining, and I always learn a lot. What tangents are you referring to about Rush. He always seems to be spot on when I have a chance to listen. Thanks again for the invite.
This sounds like a conspiracy theory. I don’t like them.
Unfortunately, I see how it could be possible for some influential person who knew enough like minded people with enough money in money markets to make it happen.
I hope it’s not true.
It wouldn’t be individuals with that kind of money in these accounts. It would have to be countries or very large organizations. And the guy who organized it would have to have been very very well connected.
Channel
USWeapons: Totally agree on not liking the idea of a conspiracy theory, but perhaps that has been our naivete. Perhaps the (at the time) candidate BO didn’t know specifics, just knew to keep distance when and if something big happened. I think we cannot underestimate his very unorthodox upbringing, connections and associates, fast rise, and completely sealed documents on just about anything in his past.
USWeapons – Thanks for the return. My Father-In-Law was a banker, I posed that same question to him about the Federal reserve. His answer? “It is based on the ability of the U.S. Government to borrow from thin air, ie: on just how much paper currency they can get away with printing.”
Ever notice that no matter how high the population seems to go, we always have enough paper money and coins to meet the demand?
In effect, it seems to me, our U.S. Currency is absolutely worthless. If it were based on the ability of the Government to tax the people, the government would have to know just how many people they would need to have at any given time in the future to tax. An actuary friend of mine tells me that is next to impossible, if not entirely impossible. That be the case, then you are right that we are headed to total disaster.
Oh, for Gene Roddenberry’s Star Trek fantasies of the future . . . But wait! That is a Socialist/Communist Pipe Dream of once greedy Humans working just for the “Joy” of working. I am no Seer, but I do not see that ever happening in the future of any Human History – Sicience Fiction or not!
Back, so they past a stimulus in 208 for 700 billion,they used 350 billion of it…..what happened to the other 350 billion?
Now they past one for 749 billion to pay for social and infrastructure upgrades. Reminds of the Superman movie where Richard Pryor stole all the half pennies from the company he worked for with a computer program he had written, lol, sorry but I guess it’s just life imitating art.
Or hold your horses~!
European bank bail-out could push EU into crisis
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4590512/European-banks-may-need-16.3-trillion-bail-out-EC-dcoument-warns.html
Read that again – EUR16 trillion or more than $23 trillion USD!
European economy is gone if this article holds a shred of truth.
I hope its not to late to comment on this issue, which I have tried to chase down. There is a logical and non-conspiratorial explanation. Which is true we don’t know but let me explain the possible. If you recall the gov’t at the time had just agreed to prop up one failed investment bank. The market was jittery but sanity prevailed. Then the next bank started going, Solomn or Bear can’t remember now, and the gov’t decided to let it go. Now the banking industry, financial markets and investors didn’t know what to do. The failing bank resulted in an immediate down grade in money markets due to the unknown value of toxic (subprime derivatives) mixed up in the whole thing. Bottom line….one of the major money market funds suddently dropped below $1.00/share in value. That meant anyone in the money market was now losing money, not just holding money at no return (translated: devaluation). Now kicks in that great new gizmo that has fueled our fiance driven economy since Mr. Gore invented the internet: electronic trading. Institutions start selling money market shares as fast as they can to preserve capital. After all, the money market funds were being used as “Assets” on their books, to offest bad debt. The details were not public at the time but what was reported was that the commercial lending “commercial paper” market had frozen on that Wednesday. Fed chair and Sec of Treas went running to the white house where they met with and briefed Ms. Pelosi, Mr. Reid along with Mr. Bush, et al. The $750 billion emergency bank bailout was the result. Funny how Mr. Bush got stuck with the blame by Pelosi and Reid for this bill, when they were in on it from the start and it couldn’t have passed without there concurrance. Now — if my scenario is true then they do know where the money went because the trades are obviously recorded. Im guessing the sellers are some of the same folks that got bailed out later and thats why no one is talking. Of course this could just be a big plot by the private money changers who own the Fed banks and was a deliberate move to destroy us and further their New World Order agenda. Right now, in my frame of mind, I prefer to former scenario. If the latter proves true….well lets not go there just yet.
Citizen,
Never too late to comment on an issue. I monitor every thread because I see the comments differently as the moderator. Your comments show up when posted rather than by certain threads. I like you explanation here. It makes a lot of sense to me and I like logic. I think you could be right on with this. I will research a bit more tomorrow night and see what I can find.
Great website. I came over from Fox….
US Weapon,
For the last ten years, at least, my Peruvian immigrant mother has been talking about The Trilateral Commssion, Bilderbergers, UN’s Agenda 21, etc. I used to think she was losing her mind. Now, I’m thinking she’s spot on. Back in September, I suspected that the ‘crisis’ was too perfectly timed to be a coincidence. Of course, when I said this, my friends thought I was crazy, and brain damaged due to my conservative thoughts. I also happen to think, like my 80 year old mother, that there has been a long term objective by our ruling eleites, to destroy the middle class, not just in the U.S., but around the world. If one considers how much wealth and power there was in the middle class, and what has been done to diminish that, one has to wonder if maybe there’s some truth to this. Both U.S. political parties are responsible for this so far as I can tell. Both of them have their reasons for breaking the middle class. I expect the whole world economy will be destroyed to create the much desired (by some) New World Order. I really don’t what to be any part of that. I don’t trust it in the least. Unfortunately, there are plenty of people who think that idea is the best thing since sliced bread. These people, for the most part are also Obama supporters. Kinda makes my wonder…..
Cyndi,
Thanks for coming over and checking it out. I hope that you choose to keep coming back. The group we have on here discussing things are fairly sane and regardless of opposing views, everyone discusses the issues respectfully and logically. I couldn’t ask for better participants on my blog. I do kick out and ban the occasional name caller. I think we have definitely become cynical when it comes to government and no one would be “surprised” if we found out the economic crisis was intentionally driven to further an agenda. I want to believe that even the Democrats aren’t that dirty, but one never knows….
Cyndi: There may or may not be a hidden group(s) pulling the strings. But, I do not believe, and have found no logical reason or evidence to believe, this is a deliberate attempt to destroy the middle class. It is an attempt to gain wealth and power, for more wealth. The loss of a middle class is the consequence not necessarily the purpose. I know it is splitting hairs but I think (opinion only)we will find it is an important distinction in finding the right solutions.
By the way, I have seen data showing the loss of the middle class in the US was greatly overstated up until recently. That is because the chicken littles wanted us to only look at the real growth in wages. They never looked at the total compensation, including health care, life insurance, pre-tax deductions for child care, numerousl govt programs etc etc and the reduced cost of goods purchased from overseas markets, and oh yeah—reduced tax brackets. Since Reagan inflation has been relatively low, furhter reducing pressure. Unfortunetly the worm has turned and given our current money printing spree, inflation–the real serious kind— may be just around the corner.
Any way, don’t despair. I think you have friends here and in alot more places than you realize. If the day comes, we will be able to help each other.
Cyndi: PS Please tell your Peruvian immigrant mother I am glad she found a new home here and wish her a belated “welcome to America”, from me and my family.
To me, this whole economic collapse was just too coincidental. It hit just perfect to sink McCain’s bid for election. It also looks to like the Dumbocrats and Obummer are plainly ignoring the fact that the majority of the country did not want the spendulous bill passed. They are creating a financial and other crises to make the public feel that something, anything has to be done. rat now! Then we find that they’re sneaking in all their pet programs in it. Maybe, since they didn’t vote for it, the Reps are finally realizing how bad they have totally screwed this nation by not doing the job they were elected to do before it became an election problem. Now, we have at least 2 years, if not more of painful existence to go through. I could mention revolution but let’s just face it. It’s going to take longer than 2 years for most of America to wake up. Would take longer than that for most to get off their buts and acually do something. So basically, we are pretty much left to raising verbal hell and hoping that someone out there is listening to us! I am not Optomistic. But am also too stubborn to shut up.
Karl,
I understand your lack of optimism on this. I have felt that way for a long time. But I will not stop at being verbal, I am organizing, setting up the people to take a stand. Bringing dissatisfied voices together. Stay tuned for tonight’s post which will discuss the path forward for revolution.