Socialism American Style

In a genuine economic system corporations are either government or private owned. In Australia, they decided to allow banks to operate and made them government-backed to prevent closure by runs caused by an ignorant and hysterical populace. After a while they could raise interest rates, regardless of the rate at which the loan was taken out, to allow the banks to trade with impunity.

Under the previous Labor regime, the Reserve bank of Australia was allowed to take over responsibility for interest rates and they could raise them free from the oversight or control of Parliament. In that way, the Internationalist Socialists, who now work hand in hand with the Globalists, could control the very ability of anyone to remain in a home and they could always force an element out of home occupancy.

The very ideals the Labor movement was started on were betrayed by their own people, and the Globalists used them on the strange idea that they would form some sort of an elite class. The crazy part about it is that these delusional idiots bought the argument.

The strange system of government-guaranteed banks was adopted in the US to establish the Mortgage system firstly with the corporation Fannie Mae and secondly with the later Freddie Mac.

The US people set this up so that the profits were distributed among the shareholders but the final losses were paid for by the taxpayers. This gave the bankers the opportunity to build these mortgage operations into massive corporations so large that they could be used to force the entire US economy into bankruptcy and impact the entire world system. Using these corporations, the Globalists will attempt to take over the world.

Most world banks are leveraged by the worthless CDOs that were created by Secretary Paulson and the Bush Administration. Up until March 2007, the National Australia Bank (NAB) has a significant part of its portfolio taken out in these worthless bits of paper. They have just made provision of some 830 million write-off for what they assert is a controllable size of their portfolio. We don’t know the real facts and the actual bottom of this crisis, and we don’t know how many banks will go to the wall before it is all over. The Globalist aim is to control all of it and force the world into a controlled economy, under their control of course.

NAB said today the portfolio of CDOs was now provisioned to nearly 90 per cent.

“The continued deterioration in the US housing market has been further highlighted in recent weeks with foreclosures mounting and recovery rates from security in some categories falling to less than half of the loan value,” Mr Stewart said.

“Although current losses on the assets underlying the CDOs in our portfolio relating to the provision average approximately 2 per cent of the total portfolio, out detailed analysis and recent default activity indicates the portfolio will continue to deteriorate.”

All of the portfolios will deteriorate. Many have been tied into the two giant mortgage corporations by fraud, and into the lesser banks through the sub-prime fraud.

Frannie Mae and Freddie Mac account for over 5 trillion dollars of the mortgage market. These two American concerns allowed the bankers and the share market to absorb the profits of these two giant quasi-socialist government-backed institutions with no upper limit on the debts they would cover at the end.

Now this is not true nationalisation. A corporation that is government-owned uses the profits to reinvest in the corporation or provide lower cost services for the society or offset tax liabilities. That is what any sane and sensible social system does with government corporations. The parliamentarians that do not do that are usually charged with corruption and imprisoned.

One of the serious problems the US faces is that it has an extensive lobby system. That system has managed to corrupt the entire machinery of intelligent and honest decision making in the US. It exists in Australia also but not on the same scale, and much of it by corrupt donations to political parties.

The Fannie Mae and Freddy Mac saga has gone so far out of control that it is bankrupt. By all the rules of good old US capitalism they should be allowed to crawl off to the corner of the stock exchange and die the death of a thousand cuts as their shares fall through the floor and the liquidators move in and dismember the corpse.

However, the financial system has been hooked so far into the crisis that the entire market says that they can’t afford to let them fall. As a result, US financial regulators will now allow Fannie May and Freddie Mac to borrow directly from the Federal Reserve. To help stabilise them the Treasury Department has been given the authority to take an equity stake in the companies. The Treasury and the Fed made it clear that the government saw it necessary to help the firms and the debts are held all around the world. That was achieved by absolute fraud by giving the CDOs and AAA security rating through moving them from one bank to another and setting an artificial price level through collusion with the Treasury. Anyone else would be in prison for it now and they would throw away the key. The collapse is now being used to move to a stronger regulatory structure, as Secretary Paulson notes.

In separate announcements, the Treasury and Fed made clear that the federal government sees it necessary to help the firms, which have seen their shares plummet over the last week amid fears about their solvency. Treasury Secretary, Henry Paulson, noted in a statement the debt of the two government-sponsored enterprises is held by investors around the world. They see it as important to prop up Fannie Mae and Freddie Mac to avoid the total meltdown that the Globalists planned in the first place.

The Adminstration believes that they should continue to play this role in their current forms as shareholder-owned companies. Paulson has been directed by President Bush to work with Congress to act on the “plan.”

The Fed’s Board of Governers voted 5-0 in favour of granting the Federal Reserve of New York authority to lend to Fannie Mae and Freddie Mac at the primary credit rate of 2.25 percent.

The Fed denied it was considering this move two days before the decision was made. More lies. The Fed spokeswoman, Michelle Smith, said on the Friday that Fed officials were following the situation, "but there have been no discussions with the GSEs about access to the discount window."

The Fed now says: "This authorisation is intended to supplement the Treasury's existing lending authority and to help ensure the ability of Fannie Mae and Freddie Mac to promote the availability of home mortgage credit during a period of stress in financial markets".

"The Treasury proposal, which would require approval by Congress, calls for a temporary increase in the $US2.25 billion ($2.4 billion) line of credit each of the two GSEs can draw on from the federal government.

A senior Treasury official declined to say how large the new line of credit would be, saying only that it would be temporary – probably 18 months – and that the size, terms and conditions would be at the discretion of the Treasury secretary.

The 12 Federal Home Loan Banks would also have temporary access to expanded lines of credit, which would be determined by Treasury, according to an official.

The proposal would also give the Treasury the discretion to purchase an equity stake in either firm if it's deemed necessary. The senior treasury official said the details of such a purchase, if necessary, would be determined at that time in consultation with the two firms. He declined to say the potential form of such a purchase, whether it be preferred stock or some other form of equity, or whether it would have the potential to dilute the holdings of current company stockholders. "Use of either the line of credit or the equity investment would carry terms and conditions necessary to protect the taxpayer," Mr Paulson said in his statement.

The action marks the second time in four months that the Fed has broadened use of the discount window to avert financial contagion. In March, the Fed granted primary dealers access to the discount window – a privilege once restricted to tightly regulated commercial banks – in the wake of the failure of Bear Stearns.

That program, the primary dealer credit facility, is due to expire in September, though Fed chairman, Ben Bernanke, has said it may be extended. The Fed statement did not include an end-date for Fannie and Freddie's access to the discount window, though the language of the statement suggests the access isn't permanent. One difference between the GSE program and the access for primary dealers is that the range of securities Fannie and Freddie can use for collateral is much narrower than that for primary dealers.

The senior Treasury official said that nothing has occurred since Friday to act as a catalyst for the extraordinary moves. Rather, policymakers deemed it necessary given the precipitous declines in the companies' share prices last week and their potential to roil financial markets worldwide.

Asian central banks and financial institutions are major holders of US debt and are believed to own substantial portions of debt for Fannie Mae and Freddie Mac.

According to the US Treasury Department's latest data, foreigners owned 21.4 per cent, or $US1.3 trillion, of the total outstanding long-term debt issued by US government agencies as of June 2007.

China and Japan were by far the largest investors in such securities, holding $US376 billion and $US229 billion, respectively. It isn't clear how much debt either country owns from Fannie and Freddie specifically.

The ability of the Fed announcements to calm skittish markets will be tested quickly. Freddie Mac is scheduled to sell $US3 billion of short-term debt on Monday, and an unsuccessful sale could signal that the steps by regulators may not be enough to instill confidence. Longer term, the Treasury plan calls for the Federal Reserve to be given a consultative role in determining the firms' capital requirements and other standards.

The three-part Treasury plan is expected to be inserted into a broad package of housing legislation currently moving through Congress. The senior Treasury official said the hope is that the changes can be made and the legislation passed by the House and Senate, and sent to President George W. Bush this week. A spokesman for House Financial Services Chairman, Barney Frank, said that Mr Frank had multiple conversations with Mr Paulson about the Treasury plan and has called committee staff together to begin ironing out the details of the proposal.

Spokesman Steve Adamske said Mr Frank is "generally supportive" of the steps and believes lawmakers can put the plan in place quickly.

Both Fannie Mae and Freddie Mac, in separate statements, praised the moves by Treasury and the Fed. Freddie Mac chairman and CEO, Richard Syron, said his firm is in the process of finalising its second-quarter results and that the firm estimates it will have a "substantial capital cushion above the 20 per cent mandatory target" established by the firms' regulator, the Office of Federal Housing Enterprise Oversight.

"We expect the results will also show that we have a much greater surplus above the statutory minimum capital requirement," Mr Syron's statement said.

Fannie Mae CEO Daniel Mudd took a similar tone in his comments.

’We continue to hold more than adequate capital reserves and maintain access to liquidity from the capital markets,’ Mr Mudd said. ‘Given the market turmoil, having options to access provisional sources of liquidity if needed will help to strengthen overall confidence in the market.’ (cf. Michael R. Crittenden and Brian Blackstone | July 14, 2008).

It should be obvious that the profits of this corporation have been taken by private shareholders and now the system is going to be placed back on the US taxpayers to hamstring US financial capacity in the long-term.

The same thing is being done through Central Banks everywhere. The solution in dealing with these corporations should be simple. Declare them bankrupt, remove them from the stock market and the government take over the corporations and merge them into one government-owned bank that lends funds to single home borrowers at the one simple interest rate. That will remove the foreign governments from the system and stop the speculation by banks in the sub-prime market. It will give security to the workers who would otherwise be homeless or exploited by exorbitant rents.

However, that is not part of the plan. The US has been controlled by a criminal cabal for nearly a century and it is the basis of the Beast power. These collapses are being engendered so that the world will beg the Globalists to establish the World Financial Bank system of the Beast.

We are being pushed to the New World Order established under banking criminals to a long-term plan. These “bankers” have created instability and used it to their own ends and profit so that they can establish what Satan has given them his power to establish.

They will be given world domination in two great divisions.

The Beast will be formed using the European Union (EU) and North America and will operate in cooperation with the three other unions. These are Africa, Asia and South America.

The real objective of the Beast is to reduce the world population to some 500 million persons through war and plague. Africa and South America will be irrelevant to the military rule.

The Middle East has been turned into the enemy ever since Jimmy Carter with his bunch of incompetent advisors. They have reinvented themselves in Obama’s camp and we will see Bible prophecy unfold over the next four to eight years.

The extraordinary thing was that the US had woken up to the farce that was going on in Washington and were going to strip it and change its operations. So the Globalists had to reinvent one of the cabal and make it look like it was not one of them. The US is the spearhead of the Beast power and has been for decades. It does not matter who you vote for you get a mouthpiece for the New World Order banking and Globalist power group.

Scripture cannot be broken. The whole world will come under the power of the Beast for this last hour of the existing world systems. The nations are broken down and ultimately everyone will be destroyed except for the fact that Christ is sent to save the elect. Otherwise, God would let them all die. But He will intervene for the elect’s sake and Christ will rule the world for one thousand years from Jerusalem with the elect.

The Vatican wishes to destroy all people opposed to the Vatican control of religion in the New World Order. The fact is that Satan hates the Whore and will see her destroyed. Revelation 18 shows how she is brought down at the end.

The US and Britain are marked to be destroyed because they are the core of the Bible religious groups even though their people have no real concept of what the Bible really says, and their evangelists are opportunists and false prophets.

We will see that system destroyed over this next short period also.

We will continue to explain how it occurs right up until the coming of the Messiah.

Wade Cox

Coordinator General