Ron Paul Campaign for Liberty Audit the FED Intitiative Renewed

Got this from Ron Paul today. If you live in one of the states with Congressmen that need to be reminded of the FED malaise, please let them know what you think about the FED!

Turn Stock Market into a Ponzi Scheme: The Easy Way

Today, Goldman Sachs comes out with an upgrade of Capital One bank and Wells Fargo.
The Banks rally 5%. Broad market rallies 1.5%.

[UPDATE: 10/18/2009 Two weeks after the revelation (below), stocks as measured by S&P 500 went straight up for 10 business days, gaining a total of 5% additionally. All conclusions below are confirmed. The only deviation I found was Bank of America reporting $2B Q3, 2009 loss, quite honest, huh. If you are still in stocks like I am, be cautioned!]

After a huge 50-60% run up of the stocks since March 12 2009, you'd think stocks are up for a correction. After the house selling Summer high, you'd expect banks are up for a rough Fall and Winter. After banks hiding their liabilities off the balance sheet a-la Enron, you'd think someday they'll have to show their 'toxic' hidden assets and account for them.

After the top contrarian trend-forecasting stars Dent, Celente, Prechter, and others are seeing an imminent downturn of the stock market, nope, it keeps going up.

But no, the day of reckoning ain't coming just yet. Why not?

I'm following the broad stock market more closely than usual because I found some extra stocks in my Roth IRA that I never sold. It's been 10 years since I seriously looked at the portfolio. It is basically all S&P 500 and guess what, it hasn't made me but a few percent profit after 10 years! Counting for true inflation, it's lost a lot.

Back to the topic. Stock Market a Ponzi Scheme? Madoff reincarnated on a huge scale? And it is easy to turn Stock Market into a Ponzi Scheme? What do you mean Matt?

For the longest time I couldn't understand why, in 2007, establishments such as Washington Mutual were still offering subprime loans to folks even though the subprime market was collapsing all around them. They are in the business of subprime loans and they don't see the calamity has already arrived? Strange. But it is possible to understand why now.

At the last week's IMF meeting, Janet Tavakoli, an expert on structured finance and derivatives, said (quote credit: prisonplanet.com):

Wall Street gave mortgage lenders large credit lines (similar to credit card debt) and packaged the loans into private-label residential mortgage backed securities (RMBS). Most of the RMBS was rated “AAA” … But many RMBSs were backed by portfolios comprising risky fraud-riddled loans. Most of the “AAA” investment was imperiled, and subordinated “investment grade” components were worthless. Wall Street disguised these toxic “investments” with new value-destroying securitizations and derivatives.

Meanwhile, collapsing mortgage lenders paid high dividends to shareholders (old investors) and interest on credit lines to Wall Street (old investors) with money raised from new investors in doomed securities. New money allowed Wall Street to temporarily hide losses and pay enormous bonuses. This is a classic Ponzi scheme…

A large share of certain banks’ tax-subsidized profits is due as reparation to unsophisticated investors, the U.S. taxpayers...By the end of 2006, public reports of implosions of large mortgage lenders eliminated CEOs’ plausible deniability. By January 2007, many (including me) publicly challenged the failure to account for losses. Instead, toxic securitization accelerated in the first half of 2007—classic malfeasance as a Ponzi scheme collapses…

Bottom line, in order to keep the Ponzi scheme running, it has to accelerate in the final stages. That is a sure sign of it being ready to collapse.

How to turn stock market into a Ponzi scheme? Easy. Couple of steps:

- Banks hide toxic assets off the balance sheets
- Mainstream Media publishes great outlook from well known names on how great the banks are doing (Goldman Sachs example, the bank books are looking great if you remove off-balance-sheet assets)
- Mainstream Media touts "Recovery"
- The FED keeps the rates at about 0% keeping bank loans expenses practically at zero
- The government allows printing of Trillions of Dollars through bailouts and stimuli packages, mostly going to the banks who turn around and play with the cash in the stock market
- The government publishes heavily doctored data on unemployment, so it doesn't look as bad as it is.

Well there are maybe a few more steps needed but you get the picture. And I can't give you more details, I'm not working at Wall Street!

Banks are "looking pretty", and "everyone knows", the way the banks go stock market goes.

However, remember, it is a Ponzi scheme. It is based on taking money from Peter and giving it to Paul. There is no value created or consumed. Eventually, this Ponzi scheme Stock Market will pop. But it may go (much) higher before it pops. And you and I won't know when that will be, because it is not you and I who are running the Scheme.

So if you are invested in a stock market, watch your investment carefully. It may rise substantially before it pops. If you have no patience and have better things to do, get out of the market and buy back at half the value or less. Or don't buy back, ever.

Shadow Inventory of Houses: Another Reason to Audit the FED

As I previously reported, September 15th is the Audit the FED Mass Action day . Here's another reason why the House and the People need to audit the Federal Reserve Bank: 



Through bank bailouts and FED actions, some banks received seemingly unlimited and definitely secretive amount of interest-free funds. What banks are getting the money and what are the banks doing with this cheap capital influx?



In California, for example, it appears the banks are doing their best to hold back the inventory and create artificial shortages of housing. Take for example the Los Angeles, area. With cheap money coming in from the FED, they can afford to create a huge Shadow Inventory. Inventory not published on MLS, and not available to the general public.


Here is an example of housing prices still being unreasonably high on the LA's Westside. Here, it seems, the housing bubble is still alive and well. The rents less than a half of the mortgage for the same house:


http://westsideremeltdown.blogspot.com/2009/09/condo-equation-doesnt-add-up.html


Going one step further, the banks are playing the game of Solving the Problem of worth-less houses by Sticking Their Heads in the Sand and not doing anything about the delinquent mortgages. As Dr Housing Bubble reports this is the easiest way for them and creates a huge Shadow Inventory of houses:


http://www.doctorhousingbubble.com/shadow-inventory-revisited-silent-alt-a-mortgages-southern-california-reo-and-the-great-public-swindle/


Who does this kind of behavior help?  Well it does "benefit" the homeowners who are behind on their mortgages live rent free and mortgage free for a while. But would you really enjoy living in a house and never be sure when you will be forced to move out? It sure helps the banks look better "on paper" not having to clean their balance sheets of worth-less properties and declare a heavy loss. Their stocks aren't doing badly at the moment, but for how much longer can this farce last? Would they enjoy another stock market crash in a span of just a year or so? And, finally, there are the families that have been saving money and are ready to buy a home but will not be able to for a while longer because of the artificially and continually inflated housing prices.


By auditing the FED, the people will have a clear picture of where their money is going, and how their money is being used against them in so many ways. It will become obvious why Auditing the FED means Ending the FED.

Audit the Fed Mass Action Day Sept 15!

Got this today from John Tate, President of Campaign For Liberty. You see, the FEDs tax audit you every year. There are all kinds of other audit programs in place. It is time to get up and show that we want to audit the FED. We've got internet banking, online checking accounts and online savings accounts. These accounts are fully transparent with the bank. So why would the FED need to be secretive? Secretive banking got us into troubles. Transparent banking is possible and is a way out! -Matt

September 7, 2009

Dear Friend of Liberty,

Seventy-five percent of Americans agree with us that it's time to thoroughly and completely audit the Federal Reserve System.

Every Republican and over one hundred Democrats in the House of Representatives have signed on as cosponsors of HR 1207. Almost a quarter of the Senate has gotten on board with S 604.

So what does this tell us?

It's time to go get the rest!!

Last month, I announced that we would be holding an Audit the Fed Mass Action Event starting in the last couple weeks of August and culminating in a nationwide Mass Action Day on September 15.

Since then, C4L members have been knocking on doors, standing outside stores, attending county fairs, and gathering petition signatures in support of S 604.

On September 15, C4L National will deliver over 100,000 petitions to Capitol Hill while members across the country deliver the petitions they've collected to their senators' local offices. Many of your fellow members will be holding rallies outside those offices, and several have contacted local media about covering the event.

Here are three ways you can help ensure the success of this Mass Action Event:

1.) Gather petitions – Hit the streets! Make sure your senators hear from as many people in your state as possible. Let's spread the word and add to the seventy-five percent of Americans who support our cause. You can download petitions at CampaignforLiberty.com and AuditTheFed.com.

2.) Call your senators – Starting Tuesday, September 8, C4L members will be calling their senators' offices to urge them to cosponsor S 604. Our objective is to keep their phones ringing off the hook by having members call every day for the week leading up to the petition drop. Commit to calling your senators by signing up here.

3.) Show up on September 15 - Congress counts on grassroots activists being content with just calling and sending petitions. To make sure they get our message that it's time to Audit the Fed, we're going to take our cause right to their offices in person. These events will be as effective as you make them. Show your senators that you are serious about real reform by rallying with your fellow members right outside their offices.

State and local coordinators and leaders have been working hard to create the most effective and efficient plans for September 15's petition drop. Click here to find out how to take action in your area.

We were able to secure the support of almost two thirds of the House with your hard work gathering petitions, calling, and showing up at your representative's offices. This could be the event that tips the scales in the Senate!

As we also announced last month, we're adding an extra incentive. The person who gathers the most signatures in each state will win a pocket Constitution and a copy of Dr. Paul’s new book, End the Fed, both autographed by Congressman Paul himself.

And whichever state collects the most signatures (as a percentage of population) will win a $1,500 gift certificate to the Campaign for Liberty store!

Our representatives and senators are expecting to settle back in to business as usual when they return to D.C. after Labor Day. They think that they can leave your opinions and concerns behind in their districts while they continue to work on completely taking over our health care and finding other new ways to run our lives.

Let's show them that their top priority should be finding out how the Federal Reserve has doled out trillions of our dollars, what deals they have locked us into with foreign central banks and governments, and why they refuse to disclose the details.

The day after our petition drop will mark the official release of End the Fed. This comprehensive look at the Federal Reserve System and its disastrous effects on our lives and country is sure to be a powerful tool with which to convince your family, friends, and neighbors that it's time to restore our economy by reinstituting a sound money system.

A year ago, no one would have said we could make an audit of the Fed into a national, mainstream issue. Join us on September 15 as we show the political establishment, entrenched bureaucrats, and the media that our grassroots Revolution is more energized and determined to take back our country than ever before.

In Liberty,

John Tate

President

P.S. Together, we can see Audit the Fed signed into law. But to do so, we have to take action to grow and secure our support in the House and Senate. Download our petitions and other materials, spread the word, call your senators, and join us on September 15 as we come together across the country to fight to Audit the Fed!

Audit the FED!

Just imagine: Trillions of your dollars spent without your right to see how/where/when the money was spent! Please read and help Ron Paul audit the FED! Matt

March 12, 2009


Dear Friend,

Right now, you and I are seeing the worst plundering of a nation’s wealth in the history of civilization – all led by the out of control Federal Reserve.

If you and I don’t act today, I’m afraid this crisis will end with the economic ruin of every man, woman and child in the United States.

Just think about the scope of the problem for a minute: The Fed pumps trillions of dollars in fiat currency into a system already overloaded by the massive amount of dollars committed to the economic bailouts in recent months.

This TOTALS:

More than the socialist New Deal...
More than the entire Iraq debacle...
More than the 1980’s savings and loan mess...
More than the Korean War...

COMBINED.

Where will it all end?

It’s time you and I put a stop to an out of control Federal Reserve. And Ron Paul has a bill before Congress to do just that.

That’s why it’s vital you fill out your personal "Audit the Fed" petition in support of Congressman Paul’s bill.

Today, $9.7 TRILLION in taxpayer dollars in bailouts and loans have been agreed to by Congress, the Bush and Obama Treasury Departments, and the Federal Reserve.

Poll after poll shows the American people are fed up and are ready for fresh leadership to make their voices heard in Washington.

That means it’s a perfect time to unleash the Ron Paul R3VOLUTION on the out of control Fed!

Please complete this petition urging your Congressman to cosponsor and a seek roll-call vote on Ron Paul’s Audit the Fed Bill -- the first step toward ENDING THE FEDERAL RESERVE once and for all!

As I know you’re aware, the Federal Reserve’s inner-workings are shrouded in secrecy, and their meetings are off-limits to the public.

Just recently, the Federal Reserve told Congress “NO WAY” when asked to account for TWO TRILLION DOLLARS in taxpayer-backed loans!

Well, why do you think they refused?

They know coming clean with Congress and the American people on how they doled out those two TRILLION dollars would result in an anti-Fed firestorm.

So can you imagine the impact of a full-scale audit?

You and I will finally be able to show the American people that the Federal Reserve System leads to:

*** Constant economic crises -- the housing crisis and the resulting chaos is just one example of an economic bubble created by centrally-planned interest rates and money manipulation;

*** The destruction of the middle class -- as fuel, food, housing, medical care and education costs soar, everyone who is NOT on the government dole is forced to make do with less as the value of their money slowly decreases;

*** Currency destruction -- history shows us that riots, violence and full-scale police states can result when people finally realize fiat money isn’t worth the paper it’s printed on and REFUSE to accept it.

And unless you and I do end the madness in Washington, D.C., we may be closer than we’d like to think to learning that history lesson first hand -- right here on the streets of our towns and cities.

That’s why your commitment to helping the C4L fight this battle is so vital.

Just a few months ago, there was no chance of passing any legislation like Ron Paul’s Audit-the-Fed Bill.

So I guess there has been one “CHANGE.”

But with the piling up of trillions of dollars in out of control “bailouts” of Wall Street and international bankers, even many politicians in Washington, D.C. want to show you they’re “being responsible”.

What better way for Congress to do this than by auditing the Federal Reserve to account for the trillions stolen from the U.S. taxpayers?

There will be many battles you and I must fight over the coming months to take back our country. But this one is set to rage in Congress in just a few short weeks.

And, it’s a bill we CAN pass!

You see, after regulating, taxing, spending, borrowing and printing us into what looks like the worst recession in decades, establishment politicians and power brokers are assuring us they are working hard to “fix” our economic woes.

So they want to do something (anything) to show you they care.

That’s why Dr. Paul’s bill is positioned to move forward this year.

And since very few politicians understand the Federal Reserve System, they do not understand the threat this bill poses to the borrow-and-spend system they continually vote for.

And even if Ron Paul’s Audit-the-Fed Bill is defeated, just forcing a vote is a win/win situation.

Can you imagine how many politicians will pay the price at the ballot box in 2010 when you and I tell the American people their Congressman somehow lost trillions of taxpayer dollars and voted against even looking for the money?

Of course, getting a vote won’t be easy, but you know just as well as I do that Ron Paul has proven he’s not afraid of a fight.

Now, we just need to show Congress that the American people demand action on Ron Paul’s Audit-the-Fed Bill. Here’s how we plan to do that:

First, we’re already busy contacting up to five million activists nationwide through mail, phones and e-mail to generate petitions to the U.S. Congress demanding action on the bill.

But that’s just the beginning.

We’ll work the talk radio stations and grant local media interviews to further turn up the pressure on Congress. And, of course, Ron Paul supporters will own the meet-up groups and social networking sites that first launched our R3volution.

And a few days before the vote, if we have the resources, we’d also like to run hard-hitting targeted radio, TV and newspaper ads.

This entire program is designed to send one, CLEAR message to Congress -- Any politician who votes against the Federal Reserve Audit should look for another job.

But such a massive effort won’t be easy -- or cheap.

So, along with your petition, I also hope you’ll agree to make a contribution of $300, $200, or $100 to the C4L.

I know times are hard, but if we don’t take action, the America we see in just a few years could look much different than the one we see today.

So please, fill out your petition and give a generous contribution of $300, $200, or $100 to the Campaign for Liberty IMMEDIATELY.

Please don’t just ignore this email.

Can I count on you to join the fight to ultimately END THE FED by making a generous contribution of $300, $200, $100 -- or whatever you can afford to the Campaign for Liberty?

Sincerely,

John F. Tate
President

P.S. Please fill out this petition DEMANDING your Congressman cosponsor and seek a roll-call vote on Ron Paul’s Audit-the-Fed Bill TODAY!

With Congress spending like never before, and TRILLIONS of new dollars flying off the printing presses, it’s never been more important to expose the Federal Reserve System to the American people once and for all.

So along with your petition, please contribute to Campaign for Liberty. Whether you can donate as much as $300 – or $100 or some other amount, please do what you can. I know any amount in these hard times is a sacrifice!

Campaign for Liberty operates like government should, meaning we will not go into debt. Only your voluntary contributions permit us to do this work.