Tag Archive: Banks


‘High Risk’ Label From Feds Puts Gun Sellers In Banks’ Crosshairs, Hurts Business

 

 

Gun Sellers %22High Risk%22

 

 

 

” Gun retailers say the Obama administration is trying to put them out of business with regulations and investigations that bypass Congress and choke off their lines of credit, freeze their assets and prohibit online sales.

  Since 2011, regulators have increased scrutiny on banks’ customers. The Federal Deposit Insurance Corp. in 2011 urged banks to better manage the risks of their merchant customers who employ payment processors, such as PayPal, for credit card transactions. The FDIC listed gun retailers as “high risk” along with porn stores and drug paraphernalia shops.

  Meanwhile, the Justice Department has launched Operation Choke Point, a credit card fraud probe focusing on banks and payment processors. The threat of enforcement has prompted some banks to cut ties with online gun retailers, even if those companies have valid licenses and good credit histories.

“ This administration has very clearly told the banking industry which customers they feel represent ‘reputational risk’ to do business with,” said Peter Weinstock, a lawyer at Hunton & Williams LLP. “So financial institutions are reacting to this extraordinary enforcement arsenal by being ultra-conservative in who they do business with: Any companies that engage in any margin of risk as defined by this administration are being dropped.” “

 

Washington Times

 

 

 

 

 

 

 

 

 

 

News Anchor Completely Loses It For The Best Possible Reason Ever

 

 

 

HT/EducateInspireChange

Bitcoin vs. Big Government

 

 

 

File:Bitcoin exchange.png

 

 

 

” Interest in Bitcoin has surged along with its valuation. Last week saw its exchange rate soar past $100 for the first time ever, landing the virtual currency on the front pages of The Washington Post and the Financial Times. Yet the media frenzy, which has focused on the rapidly rising valuation and its possible causes stemming from the bank crisis in Cyprus, is overlooking Bitcoin’s true radical significance—that it can’t be controlled by government.

Until Bitcoin, virtual currencies have in one way or another relied on a third party intermediary, such as a bank or a credit card company, to prevent “double spending.” In the physical world, if I give you a $20 bill, I will no longer have it. You can’t be as sure of that, however, when the cash is a digital file that can be easily copied. The solution has been to have a trusted intermediary keep a ledger of balances and deduct a transaction’s amount from the payer’s account, and add it to the payee’s.”

 

Get started on your Bitcoin wallet here : 

 

Bitcoin

A little Bitcoin history from Wikipedia

 

 

 

Background Information 

The Race to Unmask Bitcoin‘s Inventor(s)

FAQ – Bitcoin

Who Created Bitcoin?

 

 

 

 

 

 

 

The Assault On Gold: The Fed’s Attempt To “Scare People Away” From Gold And Silver

 

 

 

” For Americans, financial and economic Armageddon might be close at hand. The evidence for this conclusion is the concerted effort by the Federal Reserve and its dependent financial institutions to scare people away from gold and silver by driving down their prices. 

The Federal Reserve is creating $1 trillion new dollars per year, but the world is moving away from the use of the dollar for international payments and, thus, as reserve currency. The result is an increase in supply and a decrease in demand. This means a falling exchange value of the dollar, domestic inflation from rising import prices, and a rising interest rate and collapsing bond, stock and real estate markets.

The Federal Reserve’s orchestration against bullion cannot ultimately succeed. It is designed to gain time for the Federal Reserve to be able to continue financing the federal budget deficit by printing money and also to keep interest rates low and debt prices high in order to support the banks’ balance sheets.

When the Federal Reserve can no longer print due to dollar decline which printing would make worse, US bank deposits and pensions could be grabbed in order to finance the federal budget deficit for couple of more years.  Anything to stave off the final catastrophe.

The manipulation of the bullion market is illegal, but as government is doing it the law will not be enforced.

By its obvious and concerted attack on gold and silver, the US government could not give any better warning that trouble is approaching. The values of the dollar and of  financial assets denominated in dollars are in doubt.

Those who believe in government and those who believe in deregulation will be proved equally wrong. The United States of America is past its zenith.  As I predicted early in the 21st century, in 20 years the US will be a third world country. We are halfway there.”

 

 

 

 

 

 

 

Resolving Too-Big-To-Fail Banks In The US

 

 

” The issue of size became important in 1984, when the government bailed out Continental Illinois National Bank & Trust (“Continental”), the seventh largest bank at the time. This bailout occurred because of concerns about systemic risk due to the bank’s size. The FDIC infused $1 billion in new capital into the Continental Illinois Corporation, the bank’s holding company, in exchange for preferred stock convertible to 80 percent of the equity. These funds were then downstreamed to Continental as equity capital to recapitalize the bank. When the government bailed out Continental, Stewart B. McKinney, a Connecticut congressman, declared that the government had created a new class of banks, those too big to fail (TBTF).2 Ever since this bailout, there has been a belief that certain banks or bank holding companies are TBTF, which we call the “TBTF problem.”

This belief that some banks are TBTF was behind the regulatory response to the financial crisis of 2007–2009, when the government bailed out the biggest banks in the country. Many individuals consider the biggest banks to have largely caused the crisis, and this belief has focused far greater attention on the TBTF problem. Indeed, the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) of July 2010 created a new federal receivership process pursuant to which the FDIC may serve as the receiver for big banks whose failure poses a significant risk to the financial stability of the United States. The FDIC’s new authority is intended to eliminate the TBTF problem once and for all.

This paper looks at the historical treatment of troubled banks by the FDIC. It examines how the FDIC resolves troubled banks and the sources of funds available to it in the event resolutions are costly. This examination focuses on the treatment of big versus small troubled banks to assess the importance of the TBTF issue. Given the enormous costs involved in bailing out the biggest banks during the recent financial crisis, we discuss the FDIC’s new receivership process to handle troubled big banks. We then assess whether this process will indeed eliminate the problem of large bank failures.”

 

 

 

 

Largest Dutch bank defaults on physical gold deliveries to customers

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” Last week, a rubicon was crossed in the precious metals market as one of the largest banks in Europe defaulted on their gold contracts, and informed their customers there was no physical gold available for delivery.

  ABN AMRO, the largest Dutch bank in the Eurozone, issued a letter to their gold contract customers of failure of delivery, and instead will pay account holders in a paper currency equivalent to the current spot value of the metal.

   ABN AMRO, the biggest Dutch bank, has sent a letter to its clients stating that they will no longer be able to take physical deliveries of the gold they have bought through ABN. Instead they are offered money at the current market rate for gold. Basically, instead of owning a risk free, physical asset (a gold bar or a gold coin), the bank’s clients now own a monetary claim on ABN AMRO, being exposed to the bank’s credit risk. – Voice of Russia”

History of Federal Reserve & JFK’s Executive Order 11110 Pt 1.

History of Federal Reserve & JFK’s Executive Order 11110 Pt 2.

Experts Suspect North Behind South Korea Computer Crash

 

 

 

” SEOUL, South Korea (AP) — Computer networks at major South Korean banks and top TV broadcasters crashed simultaneously Wednesday, paralyzing bank machines across the country and prompting speculation of a cyber-attack by North Korea.

Screens went blank at 2 p.m. (0500 GMT), the state-run Korea Information Security Agency said, and more than seven hours later some systems were still down.

Police and South Korean officials couldn’t immediately determine responsibility and North Korea’s state media made no immediate comments on the shutdown. But some experts suspected a cyber-attack orchestrated by Pyongyang. The rivals have exchanged threats amid joint U.S.-South Korean military drills and in the wake of U.N. sanctions meant to punish North Korea over its nuclear test last month.”

 

 

 

Who Benefits From The Fed?

 

Fed Assets 1915-2012

 

 

 

” In this article I want to point out who has benefited from the Fed’s operations over the past year.

There has been a lot of discussion about the large increase in reserves, and especially excess reserves, held by the banking system. Mostly this discussion is couched in terms of the increase in the money supply. While the increase in excess reserves—less than $2bn in August 2008 to almost $1.5 trillion at the end of 2012—does represent an increase in the money supply, some rule changes accompanying the crisis also signify that they are part of a bailout. One aspect of the Fed’s crisis response was to commence paying interest on required and excess reserve balances. (The required reserve is the amount of money banks must hold to meet the minimum reserve requirement on deposits, and excess reserves are any amount held in excess of this minimum.)

 

As we review the Fed’s operations in 2012 we see the usual outcomes. The banking sector has benefited from its operations (unusually so, thanks to the continued interest on reserve policy) and the government has received a free lunch by having a ready buyer for its ever-increasing debt, especially long-term debt, which might otherwise be susceptible to inflationary pressures increasing its interest yield. Let’s see what surprises the Fed has in store for us in 2013.”

Step One In Getting Our Country Back

Support Rep. Broun’s New Audit the Fed Bill!

“The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”

Lord Acton

“… we conclude that the [Federal] Reserve Banks are not federal … but are independent privately owned and locally controlled corporations… without day to day direction from the federal government.”

9th Circuit Court

 

Enough with a totally unaccountable cabal of banksters running this country into the ground and manipulating our government and economy for it’s own private gain . 

 

” Banks have done more injury to the religion, morality, tranquility, prosperity, and even wealth of the nation than they can have done or ever will do good.”

John Adams

” On the very first day of the 113th Congress, Georgia Congressman Paul Broun introduced legislation for a complete audit of the Federal Reserve System. This legislation will bring transparency to the central bank’s covert operations. After passing the House of Representatives in 2012 with bipartisan support, the original Audit the Fed bill was dead-on-arrival in the Senate thanks to Harry Reid and the rest of the establishment. They chose to stand with secret bailouts for the world’s most profitable companies, foreign banks, and even foreign governments instead of the people. ”

 

 

“The system of banking [is] a blot left in all our Constitutions, which, if not covered, will end in their destruction… I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity… is but swindling futurity on a large scale.”

Thomas Jefferson

 

 

This exactly what the founders warned against when they spoke of the evils of national banks .

 

 

” The bold effort the present (central) bank had made to control the government … are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it.”

Andrew Jackson

 

  As this NY Sun editorial makes abundantly clear , the Fed doesn’t work for us , the people , it works for the government and the banks .

” We’ve often thought of that harbinger in the context of the current crisis over the fiat dollar, but it was all brought together in column by Judy Shelton in today’s Wall Street Journal. She notes that many in America “fear that our nation is going the way of Europe —becoming more socialist and redistributionist as government grows ever larger.” But, she warns, “the most disturbing trend may not be the fiscal enlargement of government through excessive spending, but rather the elevated role of monetary policy.” She’s referring to the way the Federal Reserve, as she puts it, “uses its enormous influence over banking and financial institutions to channel funds back to government instead of directing them toward productive economic activity.” “

  We are being pushed into poverty by the very powers that are supposed to protect our interests .

   It’s fast approaching the time to abandon pitchforks and torches and pick up the gun .

   You think that is extreme ? Then explain to US exactly what authority can now be trusted .

   Read this from the New York Sun .

” So it turns out that the great scandal of the London Interbank Offered Rate has spilled over to the Federal Reserve. It seems, according to a dispatch of Reuters, that the Federal Reserve Bank of New York “may have known as early as August 2007 that the setting of global benchmark interest rates was flawed.” It was consulted when the problems first arose at Britain, and it sent some suggestions for reform. But these are now looking inadequate. “As one of the world’s most powerful regulators, the New York Fed has the power to ‘jawbone’ banks to force them to make tough decisions,” Reuters reported, attributing the point to a former associate general counsel at the Federal Reserve in Washington, Oliver Ireland.”

   When will this criminal madness end ?

“The government has been bailing out the giant, insolvent banks for years. (Many of the bailed out banks are foreign.)
That is preventing the economy from recovering… like countries that have grabbed the bull by
the horns .
   The government has allowed the amount of derivatives to reach 1.2 quadrillion dollars . “

  As Walter Russell Meade points out , it’s looking awfully grim in Greece . Will the feeling spread ? If so , how far ?

“As Via Meadia has reported in the past, the smart money has been quietly edging out of Greek banks for a long time. As concern spread,
the bank walk turned into a bank jog. This weeks, there are signs the jog is breaking into a bank run :
Greek depositors withdrew €700 million ($898 million) from local banks Monday, the country’s president said, as he warned that
the situation facing Greece’s lenders was very difficult.”

End The Fed

 I’m not optimistic but it is a start . The time has come to end private control of the monetary system .

“A House subcommittee is scheduled to hold a hearing on proposals to reform or end the Federal Reserve System, Texas Republican Rep. Ron Paul announced last Friday.”

Our leader’s investment record leaves something to be desired