Dear Friend of Radio Liberty,
"I have always said that the decline in the housing market is at the root of the economic downturn and our financial market stress. And the economy, as it slows further, threatens to prolong this decline. . . ."
Henry Paulson, The New York Times, November 18, 2008 
"The Bush administration is backing away from proposals to have the government refinance a broad swath of homeowners who face foreclosure after taking out subprime mortgages and other high-risk loans over the last few years."
Edmund Andrews, The New York Times, November 12, 2008 
"Banks have increased their reserve holdings on deposit with the Fed from $8 billion to $494 billion. This is $488 billion more than the Fed estimates they (commercial banks-ed) would ordinarily need to hold for payment clearing and prudential purposes. Increased reserve holding have absorbed perhaps half of the liquidity placed into the banking system from the Fed."
Bob Chapman, The International Forecaster, November 15, 2008 
Every literate person knows that something is seriously wrong in the United States today. Ten million Americans are unemployed, wages are falling, millions of people have lost their homes, the economy is contracting, many corporate pension programs are underfunded, state and local governments are laying off workers, the U.S. automotive industry is losing $2 billion a month, the financial structure of our nation is faltering, and a number of major businesses have failed.
Circuit City is closing many stores.
Ann Taylor, a nationwide women's apparel chain, is closing 117 stores.
Lane Bryant, Fashion Bug, and Catherine's will close 150 stores.
Eddie Bauer is closing 27 stores, and more after January.
Cache is closing all stores.
Talbots is closing all stores.
J. Jill is closing all stores.
GAP is closing 85 stores.
Footlocker is closing 140 stores, and others after January.
Wickes Furniture is going out of business.
Levitz is closing all remaining stores.
Bombay furniture is closing all remaining stores.
Zales is closing 82 stores, and 105 other stores after January.
Whitehall is closing all stores.
Piercing Pagoda is closing all stores.
Disney is closing 98 stores, and more after January.
Home Depot is closing 15 stores.
Macy's will close 9 stores after January.
Linens and Things is closing all stores.
Movie Gallery is closing all stores.
Pacific Sunware is closing stores.
Pep Boys is closing 33 stores.
Sprint/Nextel is closing 133 stores.
JC Penny is closing a number of stores after January.
Ethan Allen is closing 12 stores.
Wilson Leather is closing all stores.
Sharper Image is closing all stores.
K B Toys is closing 356 stores.
LOWES is closing some stores.
Dillard's is closing some stores. 
Who is responsible for the current financial meltdown? Why didn't Henry Paulson (CFR [Council on Foreign Relations] - BB [Bilderberger] ) try to stop the cascade of home foreclosures that is destroying our economy? Why did Paulson transfer trillions of dollars to his friends on Wall Street? What lies ahead?
If you try to understand the cause of the current financial meltdown, you will discover there are many plausible explanations, and you will become confused.
- Are the poor people who purchased homes they couldn't afford responsible for the problem?
- Are the realtors who sold disadvantaged people homes they couldn't afford responsible for the problem?
- Are the financial institutions that provided the Adjustable Rate Mortgages that precipitated the crisis responsible for the problem?
- Are the members of Congress who enacted legislation (1977) that required financial institutions to lend money to poor people responsible for the problem?
- Are the Clinton administration officials who threatened to prosecute financial institutions that didn't loan funds to poor people responsible for the problem?
- Are the property appraisers who routinely increased the value of homes responsible for the problem?
- Are the financial institutions (like Goldman Sachs, Bank of America, and Citigroup) that bundled subprime and Alt-A mortgages into CDOs (Collateralized Debt Obligations) responsible for the problem?
- Are the investment banks and megainsurance companies that wrote unfunded derivative contracts that insured the subprime ladened CDOs responsible for the problem?
- Are the rating companies (Moody, and Standard & Poor) that gave the defective CDOs a "AAA rating" responsible for the problem?
- Are the insurance companies (MBA, Ambac, AIG, and others) that insured the defective CDO reserves responsible for the problem?
- Are the financial institutions that purchased the defective CDOs responsible for the problem?
- Are the people who borrowed money on the increased value of their homes responsible for the problem?
- Are the federal agencies that should have evaluated the defective CDOs, and monitored the unfunded derivative contracts, responsible for the problem?
- Is Alan Greenspan, and the Board of Governors of the Fed, that encouraged people to purchase homes they couldn't afford responsible for the problem?
Some people claim the crisis came about because there isn't adequate government regulation. Do we need more federal regulation?
I believe the Financial Elite (BOD - Brotherhood of Darkness) is trying to confuse the American people because they don't allow them to learn the true cause of the economic collapse. That's why we must never forget Edward Bernays' prophetic warning:
"The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this un- seen mechanism of society constitute an invisible government which is the true ruling power of our country. We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of." 
The Financial Elite claim the poor people who bought homes with Adjustable Rate Mortgages (ARMs) are responsible for the economic problem. Three to five years after they purchased their homes, their ARM mortgage payments increased. The poor people couldn't afford the high rates, lost their homes, and precipitated the cascade of home foreclosures that caused the current financial collapse.
Henry Paulson echoed the Financial Elite's position when he wrote:
"I have always said that the decline in the housing market is at the root of the economic downward turn and our financial stress." 
Why is Henry Paulson trying to conceal the true origin of the crisis? Because he works for the Financial Elite (the Brotherhood of Darkness) that created the problem. How did they create the problem? Wall Street banks, and other BOD financial institutions, wrote trillions of dollars of derivative contracts that defaulted, and left thousands of foreign and domestic banks without sufficient financial reserves to continue operating. What are derivative contracts? They are unfunded insurance policies that guarantee the value of financial vehicles: i.e. Collateralized Debt Obligations (bundled home mortgages-CDOs), Asset Backed Securities (bundled student loans, credit card loans, and auto loans-ABS) and Structured Investment Vehicles (SIVs). The Financial Elite sold thousands of derivative contracts valued at between $500 trillion and $1 quadrillion to other financial institutions, but didn't maintain the financial reserves needed to redeem the financial vehicles if they defaulted. Was that stupidity, or something far more sinister? 
Henry Paulson is one of the primary architects of the problem because he could have intervened in 2007, and stopped the home foreclosures, but he didn't. Why? Because the Financial Elite sent Henry Paulson to Washington, D.C., to carry out their agenda, and he has served them well.
Henry Paulson worked for Goldman Sachs for twenty-two years, from 1974-2006, and helped the investment bank bundle thousands of subprime and Alt A mortgages into Collateralized Debt Obligations (CDOs) that were sold to unsuspecting clients throughout the world.  In 2004 Henry Paulson led a contingent of bankers to Washington, D.C., and tried to convince the Securities and Exchange Commission that financial institutions shouldn't be required to maintain the monetary reserves needed to cover their derivative contracts. Henry Paulson and his Wall Street friends succeeded, and are directly responsible for the derivative-driven economic collapse that is taking place today. 
Henry Paulson could have used part of the $700 billion TARP funds he got from Congress to purchase most of the defective home mortgages that are causing the current economic collapse, or he could have backed Sheila Bair's effort (the FDIC program) to keep people in their homes, but Paulson opposed both programs. 
Henry Paulson was richly rewarded for his services. During his tenure at Goldman Sachs, he amassed a personal fortune that is estimated to be $800 million, and he was sent to Washington, D.C., in 2006 to preside over the transfer of trillions of taxpayer dollars to the Wall Street banks and the Financial Elite. 
By the end of November 2008, Henry Paulson (CFR-BB), and FED Chairman Ben Bernake (BB), had loaned, pledged, or given over $7.4 trillion to the Financial Elite that rules the world. The Federal Reserve Board chronicled their 2008 expenditures.
March 11, 2008: $200 billion: Loans to financial institutions.
March 16: $29 billion: Loan to JP Morgan Chase.
July 30: $300 billion: Housing bill.
September 7: $ 200 billion: The U.S. Treasury assumed Fannie Mae and Freddie Mac's debt. The bailout may cost $500 billion to $1 trillion.
September 16: $ 85 billion: To AIG
$ 70 billion injected into the financial system.
September 19: $50 billion: Pledged to support Money Market funds.
September 29: $150 billion: Available to U.S. banks.
$330 billion: Available to foreign central banks.
October 3: $700 billion: Henry Paulson's bailout package.
October 7: $1.3 trillion: Purchase debt from companies.
October 8: $38 billion. Additional loan to AIG.
October 14: $1.4 trillion: FDIC guarantee of interbank loans.
November 25: $600 billion: Loan for mortgage-backed assets.
$200 billion: Loan for consumer-backed assets. 
On November 24 Henry Paulson lent Citigroup $20 billion (in addition to the $25 billion that the bank received from TARP in October), and the U.S. Treasury assumed responsibility for 90% of Citigroup's $306 billion debt. 
The U.S. Treasury will probably also finance AIG's $500 billion debt.
Where will the money come from? The Fed and the U.S. Treasury will create the funds electronically, and destroy the value of our currency.
Mr. Paulson's recent New York Times op ed article exposes the subterfuge. Henry Paulson's words are reproduced in bold print, my response is printed in italics.
"We are going through a financial crisis more severe and unpredictable than any in our lifetimes. We have seen the failures, or the equivalent of failures, of Bear Stearns, IndyMac, Lehman Brothers, Washington Mutual, Wachovia, Fannie Mae, Freddie Mac, and the American International Group. Each of these failures would be tremendously consequential in its own right. But we faced them in succession, as our financial system seized up and severely damaged the economy." 
The statement is designed to instill fear and uncertainty in the minds of the American people. Why? Because frightened people readily relinquish their freedom.
"By September, the government faced a system-wide crisis. After months of making the most of the authority we already had, we asked Congress for a comprehensive rescue package so we could stabilize our financial system and minimize further damage to our economy. . . ." 
Henry Paulson understands the problem, but hasn't intervened because the Financial Elite want to destroy our financial system, and replace it with a "New Financial Order." 
"I have always said that the decline in the housing market is at the root of the economic downturn and our financial market stress. And the economy, as it slows further, threatens to prolong this decline, as well as the stress on our financial institutions and financial markets." 
If Henry Paulson really believes: "the decline in the housing market is at the root of the economic downturn and our financial distress," why didn't he utilize part of the $700 billion he received to purchase the defaulting home mortgages that caused the problem?
"Deploying these new tools and programs to restore our financial institutions, financial markets and the flow of lending and credit will determine, to a large extent, the speed and trajectory of our economic recovery. I am confident of success, because our economy is flexible and resilient, rooted in the entrepreneurial spirit and productivity of the American people." 
Henry Paulson claims he has "restored our financial institutions, financial markets, and the flow of lending and credit." Is his program working?
Michael J de la Merced addressed that question in his November 14, 2008, New York Times article:
"As the government's financial rescue enters a new phase, Wall Street and many ordinary Americans are wondering the same thing: Is any of this working? The short answer is not nearly as much, or as fast, as many had hoped. More than a month, and nearly $300 billion into the initial effort, many of the nation's financial arteries seem nearly as sclerotic as they were before. Some of them, in fact, appear to be hardening more. . . . Loans are scarce, and for many people, getting scarcer." 
Why did Henry Paulson oppose Sheila Bair's effort to stop the cascade of foreclosures, and keep people in their homes? Edmund L. Andrew addressed that issue in his November 12, 2008, article in the New York Times:
"The Bush administration is backing away from proposals to have the government refinance a broad swath of home owners who face foreclosure after taking out sub- prime mortgages and other high-risk loans over the last few years. The clearest sign of retreat came Tuesday when administration officials announced a much more limited plan to help people who have become seriously delinquent on conventional loans guaranteed by Fannie Mae and Freddie Mac. . . . The plan fell well short of one championed by the chairman of the Federal Deposit Insurance Corp., Sheila C. Bair. . . . (who wanted to - ed) spend as much as $50 billion to modify mortgages and keep people in their homes." 
Why is it difficult to obtain a loan from a bank today? Most people can't get a loan because the Federal Reserve Board is paying interest on the funds that commercial banks deposit with the FED. Bob Chapman revealed what happened:
"Banks have increased their reserve holdings on deposit with the Fed from $8 billion to $494 billion. This is $488 billion more that the Fed estimates they (commercial banks-ed) would ordinarily need to hold for payment clearing and prudential purposes. Increased reserve holdings have absorbed perhaps half of the liquidity placed into the banking system. The Fed has made these perverse incentives worse by agreeing to start paying interest on excess reserves. Previously, the lack of interest payments gave banks an incentive to . . . . (loan money to their clients-ed)." 
Henry Paulson and Ben Bernake aren't trying to stop the financial meltdown because they need a legitimate excuse to transfer the wealth of the American people to the Financial Elite. There is a great deal more to my story, but it will have to wait until next month.
Radio Liberty is currently heard on WLCM in Lansing, Michigan, and on several other new outlets.
The United States is currently facing the worst financial crisis in our nation's history. Several reliable financial advisers claim the situation will improve for a short period of time, and then return with a vengeance. What can you and I do? We must expose the spiritual forces behind the problem, and use our allotted time to tell our friends, relatives, and neighbors what is happening. This is a wonderful opportunity to disseminate the truth. Can we change the course of our nation? That is up to God, because:
"Back of all that foes have plotted,
Back of all that Saints have planned,
Back of schemes by men or demons
Moves a higher , hidden hand . . .
Mysteries which hurt and baffle,
Past our power to understand
In the end are turned to blessing
By the Sovereign Hidden Hand." 
That is our hope, that is our promise.
Barbara and I appreciated your faithful support, and your prayers.
Yours in Christ,
1. Henry Paulson, "Fighting the Financial Crisis, One Challenge at a Time," The New York Times, November 18, 2008, op-ed article,.
2. Edmund Andrews, "White House cuts back on plan to aid distressed homeowners," Santa Cruz Sentinel, November 12, 2008, p. A-6.
3. Bob Chapman, The International Forecaster, November 15, 2008, p. 13.
5. Edward Bernays, Propaganda, Horace Liveright, Inc., 1928, p. 9.
6. Henry Paulson, op. cit.
10. www.financialpost.com/story-printer.html?id=969590 See Also: Edmund Andrews, November 12, op. cit.
12. Edmund Andrews, "Jump-start for consumers," San Jose Mercury News, November 26, 2008, p. A-1.
14. Herry Paulson, op. cit.
17. Henry Paulson, op. cit.
19. Michael J. de la Merced, "Many Line Up for Cash, But Bailout Plan Falters," The New York Times, November 14, 2008, p. B1.
20. Edmund Andrews, November 12, 2008, op. cit.
21. Bob Chapman, op. cit.
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