AncientMariner

The whole war in Iraq and Afghanistan has been a sham to bankrupt the American economy and to give American forces time to practice crowd control measures that they are eventually going to use on the American people. Its all been engineered by a select group of international bankers that have been creating these kinds of crisis for hundreds of years, then they go in and ruthlessly exploit the countries like they did in India. Ghandi tried to beat back the NWO. If there is a God in heaven then eventually he is going to have to clean up these bankers because they are the source of basically all the crisis and chaos in the world and they control the politicians. They are a satanic death cult basically.

Yep you are seeing controlled implosion of the world economy with the ultimate goal of setting up a world government and a world currency. Ultimately these people want to rid the world of 80% of the population. Its gonna get ugly. Hopefully an avatar will appear and take care of this mess eventually.

All the phoniness, common place immorality, complacency and complete disregard for consideration of our fellow human beings of the phony money economy of the 90's etc. just got plain boring and inhuman. Now the whole world has written off America and even Americans have basically written themsolves off. Now all the odds are completely stacked against us but even in the face of all this seemingly insurmountable adversity coming our way it seems in that complete and utter despair that is where divine assistance is the closest.

I have noticed the Vedic scholars that capture the essence of the Vedas in the Kali-yuga are basically forced out of the modern Vedic institutions and are forced to operate as lone wolfs essentially. This basically happened to Prabhupada himself and he set that example of what can be achieved by a lone wolf.

I guess one must simply have faith. 'World economy' may/will collapse sooner or later. There is no practical way to be prepared to a possible catastrophic event like that. And 'we all shine on'..

That is the plan of the NWO. Complete collapse of the world economy then they will come in and pose as the saviors and create a world bank and world government where they have complete control, own everything and basically own everyone. America has already for a long time been owned by the bankers who control the politicians. They killed Kennedy because he could have broken this stranglehold the banks have on the politicians and the people. Its gonna get interesting. I don't know if Americans realize it yet but it is no longer a struggle for prosperity it is a struggle for survival. It has always been a struggle for survival with the illusion that prosperity is in your reach but now it is officially a struggle for survival no illusion of prosperity mixed in with it.

They have been doing this sort of thing for ages plotting country against county etc. behind the scenes and causing genocide etc. These people get so bored with life because they are born rich and they engage in so much sex and homosexuality etc that it ultimately get to the point where they have nothing else that entertains them but controlling people on a large scale like a game and killing them off when they want or getting the people to kill each other off etc.

The Wizard of Oz was basically about these people. The man behind the curtain is just a fat old weak bald man and anyone could kick his ass but as long as he is able to maintain the illusion and people don't realize there is a pathetically weak man behind the curtain "the Wizard" has control over a large part of the world.

We are all just another generation of people caught up in this predetermined game of the behind the scenes ruling elite of the world. Now we will see how it all unfolds in coming months and years. It doesn't look pretty but I have heard some of the younger family members of NWO have rebelled against the crazier more genocidal members and are trying to wrestle control from them so the course of human events will not end up so dark as they appear to be on present course. Don't know if this is true however and from the current events I have seen no evidence that the genocidal ones have been dethroned yet or even if they ever will.

This is all diverting attention on the real issue, NWO. New World Order, yet another rant? The actual issue is what is described in the Old Testament as sin, when let's say, a young family opens a bakery and they have to take a loan in order to get things started. The OT says, charging of interest from fellow citizens is sinful.

 

Now what we have globally installed by the banker's network, a monetary system based upon interest. Even the state has to borrow from the bankers against interest, when using its own currency - therefore you find everything indebted.

 

Chanakya Pundit says, living with debt is not acceptable. The Old Testament says, someone who manoeuvres fellow citizens into the debt trap by charging interest should be killed.

 

Take India, the bankers who installed the Rupee charge interest to the Indian government not only for running the currency, but also when the government takes a loan.

 

In this way it so happened that all the gold reserves of India were meanwhile shipped to London. Now since all the gold is off shored, the government has to compensate with natural produce and privatization of state owned companies like the Indian Railway, state run powerhouses, natural preserves, seashores etc etc.

 

But what for? Simply paying till the rest of time for a handful of people printing paper money and charging more and more interest.

 

So in sum new world order means the bankers want more money. And what are they doing, basically nothing, just printing paper money out of thin air and charging interest so that finally everybody is indebted just by carrying paper money in the wallet.

NWO= all the people are indebted.

You are exactly right but the people like Ron Paul that point this out are marginalized and made fun of by the media and the stupid dumbed down public that don't realize that they are all a bunch of slaves as Jim Morrison said.

Finally CNN is getting it right. For corporate media, I think they reported that because it is material fact and perhaps to placate. I am telling you people, the New World Order is being ripped apart because the American people are rising up like a category 5 hurricane and telling them they will not be fooled anymore with the scams and the scares. This is how the US is supposed to operate. When we no longer have any faith or place any credibility in the existing government we throw them off. This includes the Rockefeller/Rothschild wrecking crew who have done nothing but bring mounds of grief to millions of decent, upstanding Americans. Not all Americans are good, but most are. That is a lot more than you can say about the sick secret NWO government that has new orgasms every time they hear a death count from a war they started going up, or more suffering and oppression for the masses.

I am an even tempered guy but I am furious with certain branches of specific ruling families. This thing is going to get very ugly and if we have to literally divorce them from the rest of us and let them go to jail, so be it. I am not going to see the efforts of my family and cousins who have been working for so many good causes brought down by an artificially created credit crunch and also learn of millions of people being thrown out of their homes because they cannot renegotiate a mortgage on a depreciated asset. Nowhere in the legislation for this sham was there one line referring to the provision of relief to homeowners in danger of foreclosure or the process of it.

There will always been an aristocracy or ruling class in any society. It is just the nature of how things are socially organized based on intelligence and connections and birth. It does not mean some of the aristocracy has to become mean and vile and hostile just because they have completely messed things up. The New World Order is finished. People have become wise to their completely perverse ways. I have been in so many enclaves including the Bohemian Grove but was too young to understand how incredibly evil they were. I remember one senior member asking me why I was so afraid of being in the midst of them and I had no answer, except that I was because I sensed something was very off. Five years later, it turns into a completely different picture. I was too Christian, too young and too naive but something kept telling me to stay away from certain people. It turns out that they are the embodiment of evil. Others were very fine individuals who engaged me intellectually for hours and gave me a lot of insight. There are more good in the ruling elite than bad. How we allowed the evil perverse ones to come to have some sway over the rest is a story most all are coming to know.

This latest scam to shakedown the financial system is complete fraud. Americans should not tolerate it for a second. Now I am in the process of making better solid connections with cousins and friends who are on the good side of things and completely and totally rejecting the filth that we were deceived to think were alright. There are plenty of parties and events I will not attend if I know certain individuals will be there. Have some faith in the people who are doing as much good as they possibly can and realize one branch no longer wants anything to do with the other. I have to speak in generalities because if I did mention the last names of the people, it would be shocking and it would also reveal way too much. Just know that we have had it and the days of the New World Order are not only numbered, they have been found out and are being singled out. No one is going to turn my family name into something it is not.

Please do not put all the good apples with the bad and say everyone who has come from these families is bad. Simply put, it is factually wrong. There are too many of us, of the youngest generation, that are very altruistic and sick of wars, induced poverty and famine, and grandiose thoughts of population reduction when we know resources can be devoted to doing things to lift up humanity. Brad Pitt and Angelina Jolie have the right idea. There are many more of us that have more money and power than they do and have been working for the good for several years. The 70 and 80 year olds who are clinging to power as if it is their free pass to some Satanic heaven are twisted and deluded freaks. They cannot even begin to relate to the igen. We even have a good friend of the family whose father started The League of Nations with good intentions. He is a very old man now but he is a good person that has done nothing but good with his entire life. He is the one who allows you to attend colleges and universities with Federal grants even though they do not mean as much as they did when it did not cost $45k a semester.

People have to chill out. This includes Alex for whom I have tremendous respect and admiration. This is not the end of the world. No one is going to have you killed or place you in FEMA camps. Even the martial law thing is old news. The New World Order have been getting a mountain of grief on the outside from outraged Americans and from the inside from their grandkids who are telling them either change or retire or we will push you out now. There are so many good things coming in the future. People need to be able to wake up with something to look forward to and have a smile on their face.

My life has become so different in this past year. I am a very sound sleeper and I dream a lot and wake up looking forward to the next day. That is how it should be for all good Americans. Life is not supposed to be crisis after crisis after crisis. I love and respect my family. Then I turn on the news and see the NWO psychopaths are playing new tricks on the rest of my countrymen and it really annoys me to no end. It does not have to be this way and with exposure, you have created tremendous transparency and are, in fact, creating another New World Order, except this one is sane and progressive and looks to the future.

The bailout thing is a scam. The most needed is $100 billion for the fouled Mortgage backed securities and a $500,000 guarantee on deposits by the FDIC. Problem solved. Stop thinking recession depression, this is just another stupid boom bust cycle, things are changing and hopefully will be back to normal in 2009. Don’t be negative thinkers. Judge for yourself. Obama is not even as bad as a lot of people think but he knows he has to operate within very narrow parameters. He knows that if he is allowed more power and authority he can accomplish a lot of positive things for the US. I have not been on good terms with him or his campaign because they are getting orders and taking them from the powers above. That is going to change. Have faith. Changing the New Roman Empire has to be done within as well as from outside. Keep up the good work, it is having an immense effect.

He was saying some of the younger generation of these families that control the corporate media and the political scene are revolting against the genocidal policies of their NWO seniors and that things will get resolved and not be as bad it currently looks to be going. He even said that Barrack Obama is not as bad as people think he is just that he has to work within narrow paramaters even though he is currently taking orders from the NWO things should change and Obama could really end up being a good leader and solve a lot of problems but he requires more power and authority to make these changes happen. He also said that the outrage of the American people about this wall street bailout is really making a difference in the plans of the NWO and waking the NWO up that the American people are not going to go silently into the concentration camps etc. He said the bailout was pure crap and that the only thing really needed is 100 billion to clean up mortgage mess and raise the Fdic insurance up to 500,000.

I have heard a lot about how this millenial generation is special and is going to end up being very civic minded and harmonious generation and clean up the mess and disharmony that the baby boomers have left behind. Hope this guy is for real and not just a government shill or something because a lot of the other guys are saying the government is ready to round up Americans and put them in Fema camps and declare martial law.

Ajamila is a good old fashioned biblical style story of redemption. Nothing wrong with redemption even in the face of the longest odds of redemption. Good story no doubt about but not quite as good as Lord Rsabadheva or Jada Bharata.

Thanks AncientMariner, but you just preached when explaining that Prabhupada did a great job.

In fact since this can be read by 6 bio people, you're a world preacher, no more waiting for another lifetime.

Thanks Suchandra but you have done a far better job of carrying on the divine legacy of Srila Prabhupada than I could do in a million lifetimes. I am just an observer and really don't care if people become Krishna Conscious or not. My attitude has always been if people are not interested then screw them. No compassion there. You have the compassion that is part of the divine legacy of Srila Prabhupada.

All the more reason for me to avoid communities of religous people of any denomination. Grew up around the Mormons and watched them play religous games on people. Got into spiritualism and Hinduism etc and read all about the child abuse in Iskcon etc. and on and on. All this stuff makes me happy and content to be a lone wolf. Not a bad way to go in the Kali-yuga as far as I am concerned. I used to like to go to Church in the middle of the night when noone else is there and commune with the Lord in solitude. Beautiful thing but nowadays you can't even find any churches that leave their doors open at night.

That is especially horrifying thought to me because I suffer from a fear of large crowds of people or even a fear of small crowds of people. I see these kinds of stories quite frequently and just don't know what to think about these kind of things. These are bewildering types of scenarios.

Nityananda! Gauranga! Hare Krsna!

 

Economies may crash...

 

The body may crumble in pain and disease day by day...

 

The sun and the stars may even explode and fall into nothing...

 

But I know this for sure,

 

Gurudeva's words which touched my soul,

 

Which activated awareness of what is eternal and true...

 

These words will last forever!

 

We are not these bodies, we are not these minds. We are not any of these things.

 

Transcendental sound is integral to the soul...it stands forever!

 

y.s.

Nice thought, I am hoping I can continue to remember the words of Prabhupada even up to the time of my death. Even when I get completely tired of Krishna Conscousness and uninspired by the condition of Iskcon etc. the words of Prabhupada still pop into my mind from time to time and the stories I have read in Srimad Bhagavatam come popping back into my mind even if I don't consciously try to think about it. It must be my subconscious trying to remind me that all these illusions I buy into are not ultimately good for me or something.

Was listening to Alex Jones today and he said this has been the plan of the New World Order all along and that even Warren Buffet thinks Americans will be turned into sharecroppers and eventually be paying income tax to both the US government and China. I have to take my hat off to that democrat congresswoman from Ohio. She got up and said that financial high crimes were being committed by enemies of the constitution or something to that effect.

Its too bad because it was a small victory but they will find a way to screw over the American people one way or another or that is what my gut tells me after watching both Obama and McCain trying to push another form of this on the poeple. Maybe they actually have a better proposal on the table but from everything Alex Jones says they are both puppets of the NWO and they will continue to try and enslave Americans at every turn.

I think this whole thing has awakened alot of people to the fact that the whole republican vs. democrat paradigm has been a tool and strategy of the new world order to keep the American people divided while the stooges of the new world order have been behind the scenes stealing all the freedoms and liberties of the American people.

Never realized that he went on to live after that. I always thought that was his last breath accidently calling on Krishna. There does seem to be a theme of the story that chanting the name of Krishna is so powerful that it can purify all sins regardless of the intent of the chanter.

If this single act of the utterance of a four-syllable word Narayana can make such a difference to life after death, what larger worlds of fullness and majesty he may not conquer by really leading a noble life of Dharma in the memory of the Lord? -- so thought Ajamila. And that very moment he renounced everything to which he was attached, went to Benares and engaged himself in austerities and meditation and in due time reached the abode of the Lord.

All around good story no matter how you look at it. Not quite as good as Lord Rsabhadeva and Jada Bharata but close.

It is amazing that once you see how the federal reserve has enslaved people and they still don't know it, it is like getting the keys to the matrix so to speak. It all becomes clear how they have been manipulating the American public at every turn. Just unreal. I never could completely believe in all of these conspiracies but watching the actions of Bush, Pelosi, and Paulson has made me realize the magnitude of this whole scam perpetrated on the American public. If there really is a God we are going to need His assistance to get this mess cleaned up and finally exposed to the American public if they even care.

Pretty cool. It looks like the New World Order may have been dealt a little bit of a blow today unless this is just all part of their plan. Even small victories don't seem to last very long because its seems the NWO always has another trick up their sleaves to dupe the people into giving up more and more freedom and becoming enslaved to the federal reserve, islamaphobia etc.

Those who are going to hell know very well where they are going. Nobody gets there by accident. Those who are going to Shivaloka also know where they are going and do not get there by accident. Same with Vaikunthaloka and Vishnu-bhaktas.

How does that jive with the story of Ajamila. My understanding is that Ajamila was headed to hell but he accidently chanted his sons name that was Krishna and he was saved by Krishna as a result of chanting Krishna's name. In other words he thought he was going to hell but ended up in the ultimate heaven. It also seems like a lot of people are headed to hell so to speak just out of sheer ignorance of karma etc and that the major purpose of a lot of these incarnations of Krishna and the acaryas is to educate and wake people up from their ignorance to save them from the hell they are creating for themselves.

I believe the earth is simultaneously flat and round but I don't know for sure.

Please take a look at the language of the Puranas in general. Then take a look of the language of the Shrimad Bhagavatam and compare it with the language in the fifth book of the Srimad Bhagavatam. Also look at the description of the planets and their size and distance.

 

Is this fifth canto a later addition to the purana? The information doesn't make any sense. Srila Vyasadeva was the son of Parashara, he should have been learned in Astronomy and Astrology. How could he write that the moon is twice as big as the sun? Another thing, the language of the fifth canto is completely different from all the other verses in the same purana.

 

Can we come to the conclusion that the fifth canto is a later addition?

Don't know the answer to your question and to be honest my faith in Krishna Consciousness has been diminished over time to some degree just because Krishna Consciousness from my perspective is basically the same old tired arguments over and over and people endlessly arguing over such things. When you add that to the fact that all the rules and regulations of Krishna Consciousness are so difficult I often find myself disinterested anymore. That being said I still find the 5th Canto to be the most enchanting book I have read of Srila Prabhupada's Srimad Bhagavatam.

The story of Lord Rsabhadeva being the emperor of the Earth and then renouncing the world and then wandering around like a madman rolling around in his own stool and urine is a really cool story. How can you not like a God that incarnates and eventually wanders around like an idiotic madman. I also love the story of Jada Bharata because it seems to defy all the logical conventions of Krishna Consciousness. Jada Bharatas father tried and tried to train Jada Bharata to become the perfect brahmana but Jada Bharata acted like a deaf dumb idiot so his father would quit trying to train him to become the perfect brahmana and would leave him alone so he could think about Krishna. Both of those are really cool stories.

Spot on... The same group of people that now controls America tried to take over Russia as well. But the Russians knew what they were up to and foiled their plans. Alas, Americans are much dumber and bought the con game hook, line, and sinker...

Gotta admit it seems you have been right about a lot of things politically. I have even come around to your viewpoint that 9/11 was basically an inside job.

No Bailout for Wall Street

Chuck Baldwin

American Free Press

September 27, 2008

At the time of this writing, the U.S. House and Senate are poised to pass a $700 billion bailout to Wall Street. At the behest of President George W. Bush, the U.S. taxpayers are going to be on the hook for what can only be referred to as the biggest fraud in U.S. history.

<TABLE cellSpacing=0 cellPadding=0 width=316 align=left border=0><TBODY><TR><TD height=16></TD><TD width=16></TD></TR><TR><TD width=300></TD><TD></TD></TR><TR><TD height=8></TD><TD></TD></TR><TR><TD class=photo-caption vAlign=top align=left width=300>President Andrew Jackson to the international bankers: "You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out."</TD><TD></TD></TR><TR><TD></TD><TD height=8></TD></TR></TBODY></TABLE>Virtually our entire financial system is based on an illusion. We spend more than we earn, we consume more than we produce, we borrow more than we save, and we cling to the fantasy that this can go on forever. The glue that holds this crumbling scheme together is a fiat currency known as the Federal Reserve Note, which was created out of thin air by an international banking cartel called the Federal Reserve.

According to Congressman Ron Paul, in the last three years, the Federal Reserve has created over $4 trillion in new money. The result of all this “money-out-of-thin-air” fraud is never-ending inflation. And the more prices rise, the more the dollar collapses. Folks, this is not sustainable.

Already, Bear Stearns was awarded a $29 billion bailout, followed quickly by the bailout of Freddie and Fannie that will cost the taxpayers up to $200 billion. Then the Fed announced the bailout of AIG to the tune of $85 billion. Mind you, AIG is an enormous global entity with assets totaling more than $1.1 trillion. Moreover, the Feds agreed to pump $180 billion into global money markets. And the Treasury Department promised $50 billion to insure the holdings of money market mutual funds for a year. Now, taxpayers are being asked to provide $700 billion to Wall Street. (I hope readers are aware that, not only will American banks be bailed out, but foreign banks will also be bailed out. Then again, at least half of the Federal Reserve is comprised of foreign banks, anyway.) In other words, the Federal Reserve is preparing to spend upwards of $1 trillion or more. Remember again, this is fiat money, meaning it is money printed out of thin air.

All of this began when the U.S. Congress abrogated its responsibility to maintain sound money principles on behalf of the American people (as required by the Constitution) and created the Federal Reserve. This took place in 1913. The President was Woodrow Wilson. (I strongly encourage readers to buy G. Edward Griffin’s book, The Creature from Jekyll Island.) Since then, the U.S. economy has suffered through one Great Depression and several recessions–all of which have been orchestrated by this international banking cartel. Now, we are facing total economic collapse.

But don’t worry: the international bankers will lose nothing–not even their bonuses. They will maintain their mansions, yachts, private jets, and Swiss bank accounts. No matter how bad it gets on Main Street, the banksters on Wall Street will still have the best of it–President Bush and the Congress will make sure of that. This is one thing Republicans and Democrats can agree on.

America’s founders were rightfully skeptical of granting too much power to bankers. Thomas Jefferson said, “If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.”

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Jefferson also believed that “banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.”

Daniel Webster warned, “Of all the contrivances for cheating the laboring classes of mankind, none has been more effectual than that which deludes them with paper money.”

Webster also said, “We are in danger of being overwhelmed with irredeemable paper, mere paper, representing not gold nor silver; no, Sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors, and a ruined people.”

Our first and greatest President George Washington said, “Paper money has had the effect in your State [Rhode Island] that it ever will have, to ruin commerce–oppress the honest, and open the door to every species of fraud and injustice.”

If George W. Bush, John McCain, or Barack Obama had any honesty and integrity, they would approach the current banking malady in much the same way that President Andrew Jackson did. In discussing the Bank Renewal bill with a delegation of bankers in 1832, Jackson said, “Gentlemen, I have had men watching you for a long time, and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I intend to rout you out, and by the eternal God, I will rout you out.”

What President Andrew Jackson said to the bankers in 1832 is exactly what an American President should say to these criminal international bankers today. But what George Bush, John McCain, and Barack Obama want to do is provide amnesty for the international bankers, just as they want to provide amnesty for illegal aliens. I say, No amnesty for Wall Street, and no amnesty for illegal aliens, either. Instead of sending these banksters on extended vacations to the Bahamas with millions of taxpayer dollars in their pockets, we should be sending them straight to jail!

The only way to fix this economic mess that the international bankers have created is to return America to sound money principles, as prescribed in the U.S. Constitution. This means dismantling the Federal Reserve and the Internal Revenue Service, overturning the 16th Amendment and the personal income tax, and returning the American monetary system to hard assets: gold and silver. Anything short of this will only delay and worsen the inevitable collapse that has already begun.

Trouble in Banktopia

Mike Whitney

Infowars

September 27, 2008

The financial system is blowing up. Don’t listen to the experts; just look at the numbers. Last week, according to Reuters, “U.S. banks borrowed a record amount from the Federal Reserve nearly $188 billion a day on average, showing the central bank went to extremes to keep the banking system afloat amid the biggest financial crisis since the Great Depression.” The Fed opened the various “auction facilities” to create the appearance that insolvent banks were thriving businesses, but they are not. They’re dead; their liabilities exceed their assets. Now the Fed is desperate because the hundreds of billions of dollars of mortgage-backed securities (MBS) in the banks vaults have bankrupt the entire system and the Fed’s balance sheet is ballooning by the day. The market for MBS will not bounce back in the foreseeable future and the banks are unable to roll-over their short term debt. Game over. The Federal Reserve itself is in danger. So, it’s on to Plan B; which is to dump all the toxic sludge on the taxpayer before he realizes that the whole system is cratering and his life is about to change forever. It’s called the Paulson Plan, a $700 billion boondoggle which has already been disparaged by every economist of merit in the country.

From Reuters:

“Borrowings by primary dealers via the Primary Dealer Credit Facility, and through another facility created on Sunday for Goldman Sachs, Morgan Stanley, and Merrill Lynch, and their London-based subsidiaries, totaled $105.66 billion as of Wednesday, the Fed said.”

See what I mean; they’re all broke. The Fed’s rotating loans are just a way to perpetuate the myth that the banks aren’t flat-lining already. Bernanke has tied strings to the various body parts and jerks them every so often to make it look like they’re alive. But the Wall Street model is broken and the bailout is pointless.

Last week, there was a digital run on the banks that most people never even heard about; a “real time” crash. An article in the New York Post by Michael Gray gave a blow by blow description of how events unfolded. Here’s a clip from Gray’s “Almost Armageddon”:

“The market was 500 trades away from Armageddon on Thursday…Had the Treasury and Fed not quickly stepped into the fray that morning with a quick $105 billion injection of liquidity, the Dow could have collapsed to the 8,300-level - a 22 percent decline! - while the clang of the opening bell was still echoing around the cavernous exchange floor. According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The total money-market capitalization was roughly $4 trillion that morning.

The panicked selling was directly linked to the seizing up of the credit markets - including a $52 billion constriction in commercial paper - and the rumors of additional money market funds “breaking the buck,” or dropping below $1 net asset value.”

The Fed’s dramatic $105 billion liquidity injection on Thursday (pre-market) was just enough to keep key institutional accounts from following through on the sell orders and starting a stampede of cash that could have brought large tracts of the US economy to a halt.” (New York Post)

Commercial paper is the lubricant that keeps the financial markets functioning. When confidence vanishes (because the stewards of the system in Washington are buffoons), investors withdraw their money, normal business operations become impossible, and the markets collapse. End of story. So, rather than restore the public’s confidence by strong leadership and behavior designed to reassure investors; President Bush decided to give a major prime-time speech stating that if Paulson’s emergency bailout package was not passed immediately, the nation’s economy would vaporize into the ether. Go figure?

Last week, the commercial paper market, (much of which is backed by mortgage-backed securities) shrunk by a whopping $61. billion to $1.702 trillion, the lowest level since early 2006. So, Paulson’s bailout will effectively underwrite CP as well as the whole alphabet soup of mortgage-backed derivatives for which there is currently no market. The US taxpayer is not only getting into the plummeting real estate market, he is also backstopping the entire financial system including defaulting car loan securities, waning student loan securities, flailing home equity loan securities and faltering credit card securities. The whole mountainous pile of horsecrap-debt is about to be stacked on the back of the maxed-out taxpayer and the ever-shriveling greenback. Paulson assures us that its a “good deal”. Booyah, Hank!

PAULSON’S $700 BILLION BOONDOGGLE

How did Treasury Secretary Paulson figure out that recapitalizing the banking system would cost $700 billion? Or did he just estimate the amount of money that could be loaded on the back of the Treasury’s flatbed truck when it sputters off to shower his buddies at G-Sax with freshly minted greenbacks? The point is, that Paulson’s calculations were not assisted by any economists at all, and they cannot be trusted. It is a purely arbitrary, “back of the envelope” type figuring. According to Bloomberg: Swiss investor Marc Faber, known for a long track record of good calls, believes the damage may come to $5 trillion:

“Marc Faber, managing director of Marc Faber Ltd. in Hong Kong, said the U.S. government’s rescue package for the financial system may require as much as $5 trillion, seven times the amount Treasury Secretary Henry Paulson has requested….

“The $700 billion is really nothing,” Faber said in a television interview. “The treasury is just giving out this figure when the end figure may be $5 trillion.”(Bloomberg News)

Most people who follow these matters would trust Faber’s assessment way over Paulson’s. In his latest blog entry, economist Nouriel Roubini said that “no professional economist was consulted by Congress or invited to present his/her views at the Congressional hearings on the Treasury rescue plan.” Roubini added:

“The Treasury plan is a disgrace: a bailout of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown.”

Roubini is right on all counts. So far, more than a 190 prominent economists have urged Congress not to pass the $700 bailout bill. There is growing consensus that the so-called “rescue package” does not address the central economic issues and has the potential to make a bad situation even worse.

BANKER’S COUP?

Financial industry rep. Paulson is the ringleader in a banker’s coup the results of which will decide America’s economic and political future for years to come. The coup leaders have drained tens of billions of dollars of liquidity from the already-strained banking system to trigger a freeze in interbank lending and hasten a stock market crash. This, they believe, will force Congress to pass Paulson’s $770 billion bailout package without further congressional resistance. It’s blackmail.

As yet, no one knows whether the coup-backers will succeed and further consolidate their political power via a massive economic shock to the system, but their plan continues to move jauntily forward while the economy follows its inexorable slide to disaster.

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The bailout has galvanized grassroots movements which have flooded congressional FAXs and phone lines. Callers are overwhelmingly opposed to any bailout for banks that are buckling under their own toxic mortgage-backed assets. One analyst said that the calls to Congress are 50 percent “No” and 50 percent “Hell, No”. There is virtually no popular support for the bill.

From Bloomberg News: “Erik Brynjolfsson, of the Massachusetts Institute of Technology’s Sloan School, said his main objection “is the breathtaking amount of unchecked discretion it gives to the Secretary of the Treasury. It is unprecedented in a modern democracy.”

“I suspect that part of what we’re seeing in the freezing up of lending markets is strategic behavior on the part of big financial players who stand to benefit from the bailout,” said David K. Levine, an economist at Washington University in St. Louis, who studies liquidity constraints and game theory.” (Mish’s Global Economic Trend Analysis)

Brynjolfsson’s suspicions are well-founded. “Market Ticker’s” Karl Denninger confirms that the Fed has been draining the banking system of liquidity in order to blackmail Congress into passing the new legislation. Here’s Denninger:

“The Effective Fed Funds rate has been trading 50 basis points or more below the 2% target for five straight days now, and for the last two days, it has traded 75 basis points under. The IRX is demanding an immediate rate cut. The Slosh has been intentionally drained by over $125 billion in the last week and lowering the water in the swamp exposed one dead body - Washington Mutual - which was immediately raided on a no-notice basis by JP Morgan. Not even WaMu’s CEO knew about the raid until it was done….The Fed claims to be an “independent central bank.” They are nothing of the kind; they are now acting as an arsonist. The Fed and Treasury have claimed this is a “liquidity crisis”; it is not. It is an insolvency crisis that The Fed, Treasury and the other regulatory organs of our government have intentionally allowed to occur.”

Bingo. This is a banker’s coup cooked up and facilitated by the deep-money guys who operate stealthily behind the political sideshow. The only time they emerge from their stinkholes is when they’re flushed out by a crisis that threatens their continued dominance. Grassroots resistance, spearheaded by Internet bloggers (like Mish, Roubini and Denninger) are demonstrating that they can mobilize tens of thousands of “peasants with pitchforks” and be a factor in political decision making. It also helps to have elected officials, like Senator Richard Shelby, who stand firm on principle and don’t faint at the first whiff of grapeshot (like his weak-kneed Democratic counterparts) Shelby has shouldered the full-weight of executive pressure which has descended on him like a Appalachian rockslide. As a result, there’s still a slight chance that the bill will have to be shelved and the industry reps will have to go back to Square 1.

Market Ticker has provided charts from the Federal Reserve that prove that Bernanke has withdrawn $125 billion from the banking system in the last 4 days alone to create a crisis situation that will incite credit market mayhem and increase the liklihood of passing the bill. This is coercion of the worst kind. http://market-ticker.denninger.net/archives/2008/09/24.html

The country’s economic predicament is steadily deteriorating. Orders for manufactured durable goods were off 4.5 percent last month while inventories continued to rise. Unemployment is soaring and the housing crash continues to accelerate. Credit Suisse now expects 10.3 million foreclosures (total) in the next few years. Numbers like that are not accidental, but part of a larger scheme to use monetary policy as a way to shift wealth from one class to another while degrading the nation’s overall economic well-being. More alarming, the country’s primary creditors are now staging a rebellion that is likely to cut off the flow of capital to US markets sending the dollar plummeting and triggering a deflationary credit collapse. This is from Reuters:

“Chinese regulators have asked domestic banks to stop lending to U.S. financial institutions in the interbank money markets to prevent possible losses during the financial crisis, the South China Morning Post reported Thursday. The China Banking Regulatory Commission’s ban on interbank lending of all currencies applied to U.S. banks, but not to lenders from other countries, the report added.”

Bloomberg News reports that Dallas Federal Reserve Bank President Richard Fisher has broken with tradition and lambasted the proposed bailout saying that it “would plunge the U.S. government deeper into a fiscal abyss.”

From Bloomberg: “The plan by Treasury Secretary Henry Paulson to buy troubled assets from financial institutions would put ‘one more straw on the back of the frightfully encumbered camel that is the federal government ledger,’ Fisher said today in the text of a speech in New York. ‘We are deeply submerged in a vast fiscal chasm.’…The seizures and convulsions we have experienced in the debt and equity markets have been the consequences of a sustained orgy of excess and reckless behavior, not a too-tight monetary policy,” Fisher said to the New York University Money Marketeers Club.” (Bloomberg)

Surely, the cure for hyperbolic “credit excesses and reckless behavior” cannot be “more of the same.” In fact, Paulson’s bailout does not even address the core issues which have been obscured by demagoguery and threats. The worthless assets must be written-down, insolvent banks must be allowed to go bust, and the crooks and criminals who engineered this financial blitz on the nation’s coffers must be held to account.

The carnage from Greenspan’s low interest rate, “easy money” binge is now visible everywhere. Inflated home and stock values are crashing as the gas continues to escape from the massive equity bubble. The FDIC will have to be recapitalized–perhaps, $500 billion–to account for the anticipated loss of deposits from failing banks caught in the cross-hairs of asset-deflation and steadily contracting credit. Recession is coming, but economic collapse can still be avoided if Paulson’s misguided plan is abandoned and corrective action is taken to put the country on solid financial footing. Market Ticker lays out framework for a workable solution to the crisis, but they must be acted on swiftly to rebuild confidence that major systemic changes are underway:

1–Force all off-balance sheet “assets” back onto the balance sheet, and force the valuation models and identification of individual assets out of Level 3 and into 10Qs and 10Ks. Do it now. (Editor: In other words, no more Enron-type accounting mumbo-jumbo and no more allowing the banks assign their own “values” to dodgy assets)

2–Force all OTC derivatives onto a regulated exchange similar to that used by listed options in the equity markets. This permanently defuses the derivatives time bomb. Give market participants 90 days; any that are not listed in 90 days are declared void; let the participants sue each other if they can’t prove capital adequacy.(Ed: If trading derivatives contracts can damage the “regulated” system, than that trading must take place under strict government regulations)

3–Force leverage by all institutions to no more than 12:1. The SEC intentionally dropped broker/dealer leverage limits in 2004; prior to that date 12:1 was the limit. Every firm that has failed had double or more the leverage of that former 12:1 limit. Enact this with a six month time limit and require 1/6th of the excess taken down monthly. (Ed: The collapse in the “structured finance” model is mainly due to too much leverage. For example, Fannie Mae and Freddie Mac had $80 of debt for every $1 dollar od capital reserves when they were taken into government conservatorship)

If there’s going to be a bailout, let’s get it right. Paulson’s $700 billion bill does nothing to fix the deep structural problems in the financial markets; it merely pushes the day of reckoning a little further into the future while shifting the burden of payment for toxic assets onto the taxpayer. It’s a real turkey. The entire system needs transformational change so that the activities of Wall Street mesh with the broader objectives of the society it’s supposed to serve. Paulson’s business-model is busted; it does no one any good to try to glue it back together.

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This is a sad day for this country and for the world with this utter disgrace and it’s getting very late in the game. We need to slay the beast that is the Federal Reserve before it rears its ugly head one last time and then is discarded into the dustbin of history, having fulfilled its abominable role of economic coercion. After that, any semblance of its existence that it has left will be irrelevant because all of the economic dictates will come from ‘on high’ in the form of whatever whim strikes the fancy of a dictator as a pathetic politburo, er, I mean congress looks passively on. No time to lose to try and save what little is left of the Republic. SIC SEMPER TYRANNIS!!!

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What will it take to make the American citizens wake up!!! The goverment is going to bail out these stupid SOB’s and the big wigs will end up taking none of the blame for there greed and sending all our jobs to overseas markets for the cheap out! Meanwhile there own countrymen sit in anguish and forecloser just because they wanted the american dream, that has now become a nightmare.