Bail out

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Oct 2, 2005
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By: Devvy

September 29, 2008

© 2008 -

“We're turning risk investment funds into the hands of taxpayers,”

pointing out that since no private investor wants to take responsibility for

“risk investments, we're simply wall papering them on to the taxpayer, and

this is monstrous.” Nobel Prize recipient in Economic Sciences, Joseph

Stiglitz [1]

Fifteen years ago today, my Project on Winning Economic Reform

delivered 1,720,000 signatures to the U.S. Congress to abolish the privately

owned Federal Reserve Banking System and the IRS. During the rally, we

collected just under 24,000 more signatures, which were all delivered to

every member of the House and Senate. Some 4400 Americans gathered to tell

Washington, DC, we the people demand a return to an honest monetary system

and stop the stealing of the fruits of our labor for the benefit of the

powerful banking cartel.

Of course, it didn't matter back then or through all the years since.

On March 6, 2006, I wrote in 'No More Pretense of Representation': "On March

2, 2006, the counterfeit U.S. Senate passed the insidious un-Patriot Act by

a vote of 89-10. This vote flies in the face of a massive outcry from

millions of Americans against the Patriot Act and more than 440 cities and

counties who refuse to enforce it....It no longer matters how strong or

massive opposition is to what's going on in Washington, DC...There is no

longer any pretense these people in Congress represent we the people or even

pretend to uphold the U.S. Constitution. They are far, far beyond that."

We the people have been pounding on Congress for the past two weeks.

Phone calls, faxes and the numbers running so high against these bail outs

(300-1) you would think these members of Congress would listen to their


But, those of us who understand the big picture know that no matter

how many slick marketing slogans, i.e., "protect Main Street," the bail outs

were a done deal. Period. Finito. One hundred "conservative republicans"

came out against this massive fraud and rape of Main Street. Where have

these conservative Republicans so outraged now over this grand larceny been

all these years? They controlled Congress for more than a decade. The

Democrats did nothing the past two years they've had power as the storm

gathered steam, now blame the Republicans.

Yesterday's headlines: House GOP leaders back bailout bill, urge

passage. Note the H-bomb is still in the package: "The core of the bill is

based on Treasury Secretary Henry Paulson's request for authority to

purchase troubled assets from financial institutions..." And, hello: "The

ultimate cost to the taxpayer is not expected to be near the amount the

Treasury invests in the program. That's because the government would buy

assets that have underlying value." Not expected to be near the amount? Oh,

please, it's closer to a trillion dollars. Government would buy the assets?

We the people you mean and hundreds of billions of those "assets" are toxic.

Can you hear the big sucking sound from your wallet?

Sadly, too many Americans will overlook the facts and defend their

congress critter's lack of understanding on this issue, like this nonsense

from an emailer: "Right now senior Indiana Congressman Mike Pence ® and

others are at Capitol Hill holding their ground against The Fed, Bush,

Paulson, and Bernanke. Time is of the essence because Bush continues to feed

the message to the media that our world will melt on Monday if they don't

get their $700+ billion bailout regardless of what America's taxpayers

want...Currently, Congressman Pence is wisely calling for a suspension of

the capital gains tax on investments in order to encourage the millions of

Americans without debt to invest in the markets."

If Pence really understood the problem, he would have led the charge

to get H.R. 2755 passed 15 months ago and a bill to abolish the unnecessary

direct taxation against we the people. If you don't have time to read that

piece, you can listen on audio; down load to your IPod or onto a CD to

listen while you drive.

When Ron Paul introduced his bill (H.R. 2755) to abolish the Federal

Reserve in June, 2007, where were these newly outraged Republicans? There's

not a single cosponsor to Dr. Paul's bill. Instead of these

Johnny-come-lately's all indignant about this pillage and plunder of the

people's sweat and blood, why didn't they all come together and say, it

doesn't matter the terms or what it says, we will not vote on this

unconstitutional bail out of private corporations? Instead, just like the

herd they are, the prod has been effective and the people be darned.

The Hounds of heck have been unleashed on we the people. Dr. Edwin

Vieira so correctly called it on March 17, 2005:

"In addition, rather than disseminating demands for sound money and

honest banking in order to deal with the crisis, the controlled media will

orchestrate calls for massive increases in the supply of fiat currency and

credit, ostensibly in order to enable common people to pay their debts. Of

course, this will necessitate the maintenance of fractional-reserve central

banking to emit the new currency, as well as the creation of more, more, and

even more debt to serve as "security" for these emissions--thereby

perpetuating the cause of the crisis and ensuring that further crises will

break out later on. In this way, credulous Americans will be duped into

chaining themselves to new debts in order to pay off their old ones,

rendering permanent their financial indentured servitude to the


Sun Tzu's Art of War: Sell your enemy his own death while making him

think it's a good idea. The coup de grâce has been administered and the

masses will quiet down, believing it's their obligation to live a life of

quiet desperation because their "leadership" in Congress, while painful for

"Main Street," has done the right thing.

The biggest question out there: how could this have happened? Those of

us who have studied America's fatal fiat currency and monetary system know

the answer, but average, struggling Americans throughout this country do

not. A huge portion of the blame for that can be placed on corporate media

who control the "news" papers in this country and cable network "news"


Please pay particular attention to this one important piece of the


How SEC Regulatory Exemptions Helped Lead to Collapse

"The current excess leverage now unwinding was the result of a

purposeful SEC exemption given to five firms. You read that right -- the

events of the past year are not a mere accident, but are the results of a

conscious and willful SEC decision to allow these firms to legally violate

existing net capital rules that, in the past 30 years, had limited broker

dealers debt-to-net capital ratio to 12-to-1. Instead, the 2004 exemption --

given only to 5 firms -- allowed them to lever up 30 and even 40 to 1.

"Who were the five that received this special exemption? You won't be

surprised to learn that they were Goldman, Merrill, Lehman, Bear Stearns,

and Morgan Stanley. As Mr. Pickard points out that "The proof is in the

pudding — three of the five broker-dealers have blown up."

"So while the SEC runs around reinstating short selling rules, and

clueless pension fund managers mindlessly point to the wrong issue, we learn

that it was the SEC who was in large part responsible for the reckless

leverage that led to the current crisis....

"The Securities and Exchange Commission can blame itself for the

current crisis. That is the allegation being made by a former SEC official,

Lee Pickard, who says a rule change in 2004 led to the failure of Lehman

Brothers, Bear Stearns, and Merrill Lynch.

"The SEC allowed five firms — the three that have collapsed plus

Goldman Sachs and Morgan Stanley — to more than double the leverage they

were allowed to keep on their balance sheets and remove discounts that had

been applied to the assets they had been required to keep to protect them

from defaults. Making matters worse, according to Mr. Pickard, who helped

write the original rule in 1975 as director of the SEC's trading and markets

division, is a move by the SEC this month to further erode the restraints on

surviving broker-dealers by withdrawing requirements that they maintain a

certain level of rating from the ratings agencies.


"They constructed a mechanism that simply didn't work," Mr. Pickard

said. "The proof is in the pudding — three of the five broker-dealers have

blown up."

Who knew what and when?

All this brain power on Wall Street and the million regulations pumped

out by Congress after Congress over decades and no one saw this coming? None

of them noticed a pattern of melt down emerging?

Americans very afraid of financial meltdown underway

February 8, 2008. On January 14, 2008 the FDIC web site began posting

the rules for reimbursing depositors in the event of a bank failure.

February 18, 2008. US banks borrow $50bn via new Fed facility

February 21, 2008: Wall Street Bank Run

February 22, 2008: Bank of America circulating confidential proposal

to Congress seeking $739 billion bailout.

February 29, 2008. Risks seen for growing Fannie, Freddie.

March 3, 2008. New recession worry: Bank failures

March 4, 2008. Gulf investors may not save CITIGROUP, Dubai executive


The FBI began investigating AIG back in March: "Federal investigators

have been scrutinizing American International Group since March, focusing on

whether the insurance giant knowingly concealed mammoth losses that helped

lead to the company's $85 billion federal bailout this month."

March 13, 2008. Latest Trouble Spot for Banks: Souring Home-Equity

Loans. "Other types of consumer loans also are souring, including credit

cards and auto loans. But delinquent home-equity loans are rising faster,

representing 12.5% of all delinquent loans in the fourth quarter at Bank of

America Corp., the largest U.S. bank in stock-market value. That was up from

9.4% in last year's first quarter, according to research firm SNL


September 23, 2008, while the tempest was building, an important

admission came from White House Deputy Press Secretary Tony Fratto: "Fratto

insisted that the plan was not slapped together and had been drawn up as a

contingency over previous months and weeks by administration officials. He

acknowledged lawmakers were getting only days to peruse it, but he said this

should be enough."

A few days to "peruse" 2,300 pages of save the banking cartel

trillions? This scheme was drawn up months before and adjusted over the

weeks as these immoral vultures waited until just the right time to spring

the trap. The Bush Administration, Paulson, Bernanke and other key players

KNEW this whole mess was going to blow up in their faces. The staggering

numbers simply could not hold back the flood gates. How very convenient that

it all just happens to come to a head ten days before Congress is about to

adjourn for the year. The new mantra becomes "We have to do something now!"

and "The world will come to an end tomorrow!"

Something else was going on in March, 2008: "While New York Governor

Eliot Spitzer was paying an ‘escort’ $4,300 in a hotel room in Washington,

just down the road, George Bush's new Federal Reserve Board Chairman, Ben

Bernanke, was secretly handing over $200 billion in a tryst with mortgage

bank industry speculators....Who are they kidding? Spitzer’s lynching and

the bankers’ enriching are intimately tied...How? Follow the money."

June 20, 2008. Brokers threatened by run on shadow bank system. A $10

trillion shadow.

Ultimately greed is the biggest factor for why "no one saw this


"The report, "Ask Yourself Why ... They Didn't See This Coming," also

spotlights the story of the nation's two largest housing lenders, Fannie Mae

and Freddie Mac, their lobbying and campaign activities, and how the

government bailout contrasts with how legislators approached the crisis for

average people.

"The story of the housing bubble and meltdown that now threatens the

homes and communities of literally millions of Americans is largely about

political power. The financial services industry focuses its lobbying

efforts around its immediate desires, and for more than the past decade,

this focus has been on relaxing regulation of the mortgage lending and

securitization market," the report says.

"At the national level, the top five spenders among mortgage brokers

and bankers paid more than $31 million in lobbying fees and in political

contributions since the beginning of last year. The two largest home-loan

companies that have been bailed out by Congress, Fannie Mae and Freddie Mac,

spent roughly $180 million on lobbying and campaign contributions since the

2000 election cycle.

"Across the country, an estimated 20,000 families are losing their

home every week. Estimates of total foreclosures run about 3 million during

2007 and 2008. There are about 2.3 million vacant homes on the market - the

highest rate ever recorded. Most of these figures have not been seen since

the Great Depression. Most troubling, analysts predict a second wave of

foreclosures still coming."

Now, we have a scramble unseen in our life times that will only make

the situation worse. Former Fed Governor William Poole: "These are grand

ideas that cannot be executed."

Sept. 25 (Bloomberg) -- "More than 150 prominent U.S. economists,

including three Nobel Prize winners, urged Congress to hold off on passing a

$700 billion financial market rescue plan until it can be studied more


Before the ink is even dry, the big lie is that $700 billion borrowed

dollars is old news:

Bank Borrowing From Fed Already Exceeded Bailout Total in Last Week

September 26, 2008

"U.S. banks borrowed $188 billion per day on average in the latest

week from the Federal Reserve, meaning that the Fed loaned out more money

than the Treasury's proposed bailout in just one week, still barely managing

to keep the economy afloat. Federal Reserve data showed on Thursday the

total amount banks borrowed nearly quadrupled the previous record of $47.97

billion per day notched just the week before, Reuters reports."

Some very sharp people are also suggesting the rush to ram this

disaster down our throats is because the FDIC has known for some time that

banks were going to start collapsing like dominos and there isn't enough in

the current pool to bail out depositors. This is a mathematical fact. We

know that the FDIC fund has about $50 billion to "insure" about $1 trillion

in assets at the nation's financial institutions. A run on banks would cause

another nightmare for the robber banker barons.

WaMu filed for bankruptcy while part of their operations were

purchased by JP Morgan Chase. Wachovia is likely running on fumes, but some

analysts are optimistic they aren't just rearranging their deck chairs. As

U.S. home sales decline, more of the nation's top builders are going to be

in deep trouble: "NEW YORK, September 26, 2008 -- KB Homes on Friday

reported a third-quarter loss of $144.7 million...compared with a loss of

$35.6 million... in the year-ago period."

There is a massive out cry against this thievery about to be finalized

(which may be the case by the time this is published) with the battle cry to

throw out the entire Congress in November. Save Ron Paul, what a fabulous

idea. A dear friend has suggested everyone send a tube of cheap lipstick to

their congress critter and counterfeit U.S. Senator. Hear, hear! Send a deep

red like hookers wear as they ply their wares on the street corner and send

it to their district offices since Congress should adjourn for the year

(nice vacation) later this week. Let them return to their district offices

to tens of thousands of tubes of red lipstick.

Reality has come to Main Street. The political shenanigans by members

of CON-gress during this "negotiation" of another bail out package has been

shameful. People are demanding a RICO action be brought against these

lenders and conglomerates. A grand jury is now looking at Countrywide and

the Federal Department of Justice should also investigate Senators Dodd and

others; see here.

A combination of factors eventually led to this blow up. The icing on

the cake is from bird brain, Nancy Pelosi, who is proposing (as has Obama)

yet another "economic stimulus package." Bush's economic stimulus packages,

kissed and blessed by both parties, didn't work in 2001 or 2008. But, Nancy,

not realizing there's no money in the people's treasury (OUR checkbook

thanks to these crooks is overdrawn $9.8 TRILLION dollars) wants to add more

debt to the funeral pyre: Pelosi Vows to Push Forward With Second Economic


By yesterday afternoon, due to the massive resistance by the American

people, Pelosi has declared this is not a bail out, it's a "rescue plan." A

rescue plan sells better; see here. "Protect jobs and home owners" she said

in a late day press conference. BULL. This is a rescue job for the big money

interests while we the people get the shaft and the money magnates knew it

was coming.


1 - Joseph Stiglitz: Bailout Scam “Monstrous”

2 - Monetary and Banking Crisis Coming

3 - A Real Newspaper

Important Links:

1 - Must watch one minute video

2 - Poison-Pill Proposal Would Ask Taxpayers to Bankroll Group Accused

of Voter Fraud Nationwide

3 -

4 - Ron Paul: Greenspan, Bernanke Should Be Criminally Charged

5 - Indictment Federal Reserve

© 2008 - - All Rights Reserved

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Devvy Kidd authored the booklets, Why A Bankrupt America and Blind

Loyalty; 2 million copies sold. Devvy appears on radio shows all over the

country, ran for Congress and is a highly sought after public speaker. Devvy

belongs to no organization.

She left the Republican Party in 1996 and has been an independent

voter ever since. Devvy isn't left, right or in the middle; she is a

constitutionalist who believes in the supreme law of the land, not some

political party. Her web site ( contains a tremendous amount

of information, solutions and a vast Reading Room.

Devvy's website:

Before you send Devvy e-mail, please take the time to check the FAQ

section on her web site. It is filled with answers to frequently asked

questions and links to reliable research sources.

E-mail is: [email protected]