Hi everybody, we are opening up another blog site just for like-minded people who like to discuss and disseminate pertinent info about our great journey from democracy (so called) to a real honest-to-goodness Republic, all 50 of them. Many great souls, for decades, have been working on this righting of the wrongs that came about in the mid 1800’s. ESPECIALLY AS ARESULT OF District of Columbia Organic Act of 1871,
The District of Columbia Organic Act of 1871 is an Act of Congress that repealed the individual charters of the cities of Washington and Georgetown and established a new territorial government for the whole District of Columbia. Though Congress repealed the territorial government in 1874, the legislation was the first to create a single municipal government for the federal district. Direct rule by… Wikipedia
Some house keeping rules:
By now we all know the common sense rules for blogging etiquette; if you don’t know, then just ask, we’ll try to guide you as gently as possible. This reminds me of a time when I went, years ago in Ft. Lauderdale, to brand new Broward Center for the Performing Arts to hear one of my favorite composers, Henry Mancini, performing with his orchestra. In the beginning he gave a short introduction and concluded by saying “we are going to play some of my favorite pieces of music, we hope you like them also, if not, get your own band and go play what you like.” He and we in the audience all chuckled and we hope every blogger here also chuckles, having understood the message.
Also, please note that not everybody likes to scroll through dozens of lines of an article that is important to you and others as well, but we need to let people choose what they want to read. So, please post only a few lines or a jist of an article and then post a link to the rest of it. Thanks Folks.
FREEDOM MINDS FOR THE AMERICAN REPUBLICS 
I am listening to the following talkshow. Jeanne, Ambassador from Oregon for the Republic of the united States of America. She seems to be doing an awesome job answering questions. Many have been calling in to sign on.
Check it out.
Saturday, October 9, 2010
Restore America Republic – Current Status Update
Want an update on the Restored Repulic of the united States of America? Here is an important update with the latest news and how you can help TAKE AMERICA BACK! Please pass this link onto as many people as you can. The Repulic is formed and we need to take it viral. In other words, we need for everyone to know that the FREE Constitutional America exists again. Let’s say goodbye to the DC Corporate United States! Here is a link to the talk show:
[audio src="http://recordings.talkshoe.com/TC-46256/TS-404454.mp3" /]
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Thanks but I can’t get the link to work
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This was posted by greg on the new blog he opened for those who support republicoftheunitedstates and you know who had to make their appearance. Way to go Greg.
gregnh says:
October 9, 2010 at 9:17 pm
No matter what I say or do people will feel compelled to comment where they are not welcomed. They feel a need to see their words where ever they want.
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Sorry. I was going back through the comments and saw that this talkshow had already been shared with the group. Thanks for all of the info. you guys are sharing!
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Sorry, but it’s too late for Greg. We have THIS awesome blog. And, we know that he will not control JS.
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I agree PJal! Thanks Andy~!
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This is from John’s NESARA site maybe the link will work Andy
Want an update on the Restored Repulic of the united States of America? Here is an important update with the latest news and how you can help TAKE AMERICA BACK! Please pass this link onto as many people as you can. The Repulic is formed and we need to take it viral. In other words, we need for everyone to know that the FREE Constitutional America exists again. Let’s say goodbye to the DC Corporate United States! Here is a link to the talk show:
[audio src="http://recordings.talkshoe.com/TC-46256/TS-404454.mp3" /]
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I still can’t get it towork. I suppose it has something to do with my computer. I saw Microsoft ad for Internet Explorer 9 (beta) and I often jump on them knowing they are in testing stages but this time it may have bit me back. the big problem is I can’t find out how to get rid of it, and go back to IE 8, because it is incorporated in windows 7. Oh well, I’ll keep working.
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OK, I did get it to play on Firefox, and I feel better since I heard it live the other night, I was so worried that I had missed a big deal. Thanks all for posting the link.
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Yes! Thanks Andy…..I do enjoy this blog!
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Lol,
Greg speaks up on his new thread.
gregnh says:
October 9, 2010 at 9:17 pm
No matter what I say or do people will feel compelled to comment where they are not welcomed. They feel a need to see their words where ever they want.
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http://csper.org/renaissance-20.html
This is a fantastic series of videos showing how America to where its at and where the new world order is trying to take us. The only way out is sovereign money and the people.
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WOW, Terrorist crashes aircraft into building.
http://www.rumormillnews.com/cgi-bin/forum.cgi?noframes;read=184583
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I saw that, how tragic.
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I left a post earlier regarding a phone call from Phyllis. K. Smith just affirmed to me that she is legitimate. She works for the I. T. team. All is well. : )
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http://restoredusa.blogspot.com/
New blog entry. This is powerful.
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Just had a rant over at GG new thread. I’m truly sorry if I offended anyone here that may read over there. I was NOT talking about anyone on this blog. I am just so fed up with Americans whining and complaining. Not a one of us is perfect, and I include myself in this, but the whining is USELESS and I have had enough of it.
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How do you make $1,000 at a garage sale?
Sell $10,000 worth of stuff.
Everything the typical American buys is almost worthless the moment they buy it.
Some do better than others, but for the most part you will get $0.10 to $0.40 cents on the dollar for just about everything in your home.
Toys, clothes, furniture, cds, dvds, electronics… pennies on the dollar.
That is because there is no universal, intrinsic value.
Not everyone values your style, gadgets, entertainment taste universally especially when there are newer trendier stuffs out there. That reality is reflected in the values of your stuff.
Now lets put this on to your TSHTF preps.
Would you take $0.10 to $0.40 cents on the dollar for your “old” guns,
ammo,
gold,
silver,
dehydrated food,
water filters, and stuff?
No, they have intrinsic value.
Our economy is 70% consumer related, but when you realize that what these consumer are spending on junk that has no intrinsic value, it boggles the mind how wages are wasted.
One other fact is that there garage sale is a “cash only” business model.
What is the value of something if there is no credit?
What is your house worth if there is no 30 year mortgage?
What is your car worth if there is no 60 month financing?
The point of all of this that a garage sale is a great way to see what it will be like after the dollar collapses.
With no credit or expendable income for chotskys, people with real money and who have assets that have intrinsic value, they will have an upper hand financially in the new paradigm.
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10 10 10, 2010 10 10, 10 10 2010.
Only happens every 100 years, most likely never see it again in your life time.
Enjoy today!
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10/10/10 is mine & hubby’s anniversary. That it will never happen again in our lifetime……wouldn’t that apply to everyday, no matter what the date? Once it’s gone, it cannot be recaptured. Sorry, just couldn’t resist pointing that out. Don’t want to burst any bubbles, just point out how special each day that God gives us is. 🙂 Enjoy your Sunday everyone!
Good post Ambrose…..thanks.
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Rocknee | October 10, 2010 at 11:22 am | Reply
10 10 10, 2010 10 10, 10 10 2010.
Only happens every 100 years, most likely never see it again in your life time.
Enjoy today!
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I’m off to perform a wedding ceremony at 10:10 this morning under a huge gnarly cottonwood tree. Loooking forward to getting back to the blog.
Richest and most sovereign blessings to all.
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I see that the Rusa trashers over a Greg’s just moved to the new thread and continue to trash Rusa. Greg could stop them if he wanted, but he doesn’t want to. By participating over there, people are giving the trashers a forem and an audience, and therefore power.
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There are many that view that site but don’t post. By not posting, you give them that talk trash all the power.
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The sudden exit of Larry Summers is considered to be a leading indicator of an impending Obamacrat meltdown.
http://www.rumormillnews.com/cgi-bin/forum.cgi?read=184606
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There would not be many that view that site if the pro-Rusa people all left it to the two trashers. As it is now, the trashers dominate. Those lurkers would come here to find out about Rusa if we didn’t go over there.
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Paulajal, I have to admit because of all the talk here about Greg’s new blog, I had to check it out….OMG, that just proves one thing to me. JS is not happy unless she is attacking someone….I thought she was a school teacher. She certainly can’t comprehend….Greg clearly stated what the new site was for and she just couldn’t stand it…..had to go over and PECK. lol lol lol I’m sorry for using that word ya’ll but I couldn’t resist. Greg certainly has more patience than I.
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To lurk over at GG’S is a waste of my time! I can’t see why anyone would even want to as long as you know who is there ranting………let her have it. It seems that is what she wants. I am sick of people talking negative about Tim Turner. They need to clean around their own doorsteps before attacking others. I thank God someone has stepped up and doing something for “we the people.” If JS had not been voted off the Jury she would still be singing Tim’s praises. She and others need to realize that RuSA is MUCH BIGGER than Tim Turner…..Every organization, or movement has to have a leader. It will not succeed without leadership. Thank God for RuSA!
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OK so I have to ask. It seems that Russ has not been posting much at all but have you ever looked at the writing style of KU. To me at least, they sure seem similar.
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Russ couldn’t take the heat….had to get out of the kitchen. lol
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MississippiGal, you mentioned you had been studying the documentations sent out. Question: On the chart, ‘The Cloud of Governance – Under God” where is the Vice President listed?
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I don’t know Janet…:(
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Gwaithfoed, I don’t think KU is Russ. KU came in to defend JS in the beginning, during the time that Russ let the cat out of the bag about JS being released from DJGJ. KU continually writes leaning more towards JS’s cause than not. Russ never did side with JS. That’s what I’ve noticed and thought I’d share. Chucky just might be JS. Since some of you mentioned this, have you noticed ‘his’ later posts showed a marked improvement in spelling, sentence structure, punctuation, and ‘his’ speaking isn’t quite so ‘hickish’ (sorry, that’s not a word, but for want of a better one….lol). Anyway, I don’t want to gossip about anyone, just thought I would share some thoughts I had since Gwaithfoed mentioned KU’s writing style. I admit that I use a lot of (……) between words too, so there could be more out there that write like I do.
Another Heads-up:
Have you noticed that Bob French, aka Fred Burton is back after Greg (I thought) banned him? He didn’t show up for a couple of months afterwards, but since he’s back again, I guess Greg didn’t ban him afterall. I think this BF/FB is a plant or an Obot, throwing out questions and/or negative statements against any sovereignty movement being talked about. He’s probably gathering information (on us?) as well. I can’t figure out any other reason why he would keep coming back, lurking or putting in nothing of use.
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Thistle, you’re right about BF/FB. He is definitely a plant. Obviously Chucky is JS’s alter ego. Not sure who KU is- comes like Chucky to defend JS in a suspicious way, but writes more intelligently than she (I think).
At any rate, you do not write in the same style as JS and never have. You do have a distictive style, though.
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Thanks Paula for noticing that my writing style can’t be confused with JS’s or Chucky’s, lol. Yes, I think KU shows a different, maybe more sophisticated, writing style than JS.
By the way Paula, are you in the Republic of CA? If so, me too. I wonder what happened to Don of CA (Just a dumb ole country boy)? I miss him being around.
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I am a frequent commenter at AGJ and so is Don. He goes by “coot something another…..lol He is still around. He left GG and went to Terri’s until she closed up shop…..I don’t understaand people commenting on blogs they don’t agree with. I don’t have the time to argue with people. Anyway everyone to their own opinions. I only say something if it is a blog for a specific subject…Like this one and the new one at Greg’s. I will not comment at Greg’s until JS is gone which will be never so I will never comment there…..I am just an old concerned grandmother who loves her God, family and country.(in that order) I have a horrible writing style and really I just don’t care. I have really changed in my old life. Worked in the corporate world for 30 years as an Administrative Assistant where I had to be very organized. I am NOT organized now and DON’T want to be. lol
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Yes I am (Bay Area), and I miss Don too.
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Don always talked about staying above water with AF retirement, etc. I thought about him a few days ago and suspect he had to shut internet down.
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Paula, I’m in the San Joaquin Valley, the once great overflowing food basket for the world before EPA and the gvmt shut down our water for a fish. Now parts of it looks like a giant dustbowl. Fortunately, the area I’m in hasn’t been that badly affected (yet).
Rocknee, thanks for your reply on Don. I remember that he mentioned having to go back to work and struggling. You’re probably right about him shutting down his internet. Sad.
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Oh Thistle, I’m so sorry for what the politicians have done to the Valley. It’s disgusting. Talk about not doing their jobs! What is horrific is that any of the politicians who created that situation and/or looked the other way will get reelected.
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Agenda for the first interim congress. “Let the water flow again.”
Maybe we ought to start making a list.
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Great idea!
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Poofness 10/10/10 – The Pregnant Pause
You folks are good to go and it’s not my job to interject myself…those announcements will be clear enough. I’ll see many of you across the water, my business is at an end over here and believe you me, I won’t be wasting time taking a red eye out of here.
I’ll catch up on the consults, as fast as, possible. If you have emailed this address, I have your info and we’ll firm it up. Good Luck!
Love and Kisses,
“Poofness”
http://thecomingchanges.freeforums.org/poof-october-10th-t4772.html
Wouldn’t it be great if Poof was actually right for a change.
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That’s a short one for Poof.
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What I posted was only part of his report.
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I noticed that this Sunday JS has not posted. That has happened before on a Sunday. Remember how everyone commented how peaceful it was?
My bet is that Chucky is JS, but that’s ok … it really makes no difference. They both say the same things. So I agree with thistle and Paulajal.
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This is an extremely-important case folks. The pleadings here, like the case in Kentucky, lay the table in terms of the games that were played during the “Rah-Rah” years.
Let’s start with the “meat” of the alleged violations
The first “meaty” part of the complaint….
5. The fraud perpetrated by the Countrywide Defendants from 2003 through 2007, including by BofA starting no later than 2007, was willful and pervasive. It begin with simple greed and then accelerated when Countrywide founder and CEO Angelo Mozilo (“Mozilo”) discovered that Countrywide could not sustain its business, unless it used its size and large market share in California to systematically create false and inflated property appraisals throughout California. Countrywide then used these false property valuations to induce Plaintiffs and other borrowers into ever-larger loans on increasingly risky terms. As Mozilo knew from no later than 2004, these loans were unsustainable for Countrywide and the borrowers and to a certainty would result in a crash that would destroy the equity invested by Plaintiffs and other Countrywide borrowers.
In other words, Countrywide is alleged to not only have made bad loans, but also to have intentionally inflated appraisals.
6. Hand-in-hand with its fraudulently-obtained mortgages, Mozilo and others at Countrywide hatched a plan to “pool” the foregoing mortgages and sell the pools for inflated value. Rapidly, these two intertwined schemes grew into a brazen plan to disregard underwriting standards and fraudulently inflate property values – county-by-county, city-by-city, person-by-person – in order to take business from legitimate mortgage-providers, and moved on to massive securities fraud hand-in-hand with concealment from, and deception of, Plaintiffs and other mortgagees on an unprecedented scale.
Oh, that’s rich. So not only (it is alleged) did Countrywide bamboozle borrowers, they also bamboozled investors.
9. It is now all too clear that this was the ultimate high-stakes fraudulent investment scheme of the last decade. Couched in banking and securities jargon, the deceptive gamble with consumers’ primary assets – their homes – was nothing more than a financial fraud perpetrated by Defendants and others on a scale never before seen. This scheme led directly to a mortgage meltdown in California that was substantially worse than any economic problems facing the rest of the United States. From 2008 to the present, Californians’ home values decreased by considerably more than most other areas in the United States as a direct and proximate result of the Defendants’ scheme set forth herein. The Countrywide Defendants’ business premise was to leave the borrowers, including Plaintiffs, holding the bag once Countrywide and its executives had cashed in reaping huge salaries and bonuses and selling Countrywide’s shares based on their inside information, while investors were still buying the increasingly overpriced mortgage pools and before the inevitable dénouement. This massive fraudulent scheme was a disaster both foreseen by Countrywide and waiting to happen. Defendants knew it, and yet Defendants still induced the Plaintiffs into their scheme without telling them.
There’s the base of it all….
24. Defendants have gone to great lengths to avoid producing documents in this litigation because they know that such documents will establish all details of the massive fraud they perpetrated on Plaintiffs and other Californians. PennyMac, the Granada Network and Defendants’ overseas operations are used by Defendants to systematically hide documents. By delaying production of documents, the Defendants are buying time as they (a) accept the benefits of the scheme described herein, (b) cover up their fraud, and (c) make it materially more expensive and difficult for Plaintiffs and their counsel to obtain a just result.
Of course there’s the famous “let’s hide Waldo” game once the gig is pretty much up. After all, if we have to produce the documents, well, our goose might be cooked – and that would be bad.
So what else is presented in here? Oh, all sorts of good stuff. Here’s a sampling:
275. Defendant CT REAL ESTATE SERVICES, INC. is a California corporation – corporation number C0570795 – and is a resident of Ventura County, California. Defendant CT REAL ESTATE SERVICES has acted alongside and in concertwith BofA in carrying out the concealment described herein and in continuing to conceal from Plaintiffs, from the California general public, and from regulators the details of the securitization and sale of deeds of trust and mortgages (including those of Plaintiffs herein) that would expose all Defendants herein to liability for sale of mortgages of California citizens – including all Plaintiffs herein – for more than the actual value of the mortgage loans. The sale and particularly the undisclosed sale of mortgage loans in excess of actual value violates California Civil Code, §§ 1709 and 1710, and California Business and Professions Code § 17200 et seq., 15 U.S.C. §§ 1641 et seq. and other applicable laws.
That sounds like a problem to me……
290. At the time of entering into the notes and deeds of trust referenced herein with respect to each Plaintiff, the Countrywide Defendants were bound and obligated to fully and accurately disclose:
a. Who the true lender and mortgagee were.
b. That to induce a Plaintiff to enter into the mortgage, the Countrywide Defendants caused the appraised value of Plaintiff’s home to be overstated.
c. That to disguise the inflated value of Plaintiff’s home, Countrywide was orchestrating the over-valuation of homes throughout Plaintiff’s community.
d. That to induce a Plaintiff to enter into a mortgage, the Countrywide Defendants disregarded their underwriting requirements, thereby causing Plaintiff to falsely believe that Plaintiff was financially capable of performing Plaintiff’s obligations under the mortgage, when the Countrywide Defendants knew that was untrue. One way they systematically disregarded the underwriting requirements was through the use of the Granada Network, another fact which Defendants systematically failed to disclose to any California borrower.
Ding ding ding ding ding ding!
One of the keys to this mess is that the lenders knew full well that the borrowers could not pay “as agreed”, yet made the loans anyway.
i. The sales would include sales to nominees who were not authorized under law at the time to own a mortgage, including, among others, Mortgage Electronic Registration Systems Inc., a/k/a MERSCORP, Inc. (“MERS”), which according to its website was created by mortgage banking industry participants to be only a front or nominee to “streamline” the mortgage re-sale and securitization process;
ii. Plaintiff’s true financial condition and the true value of Plaintiff’s home and mortgage would not be disclosed to investors to whom the mortgage would be sold;
iii. Countrywide intended to sell the mortgage together with other mortgages as to which it also intended not to disclose the true financial condition of the borrowers or the true value of their homes or mortgages;
iv. The consideration to be sought from investors would be greater than the actual value of the said notes and deeds of trust;
and
v.The consideration to be sought from investors would be greater than the income stream that could be generated from the instruments even assuming a 0% default rate thereon;
You mean basically everything important about the loans, their quality, who they were going to be sold to, why and how was all bogus? And in addition, the price to be sought from investors exceeded the income stream that could be achieved even if nobody defaulted at all?
Heh, that’s a good gig if you can get it – and if you can find a way to do it legally.
Are there some facts behind this? Oh it appears there are…
The credit losses experienced by Countrywide in 2007 not only were foreseeable by the proposed defendants, they were in fact foreseen at least as early as September 2004. [¶ 33 (Emphasis in original)]
. . .
The credit risk described in the September 2004 warning worsened from September 2004 to August 2007. [¶ 35 (Emphasis in original)]
. . .
By no later than 2006, Mozilo and Sambol were on notice that Countrywide’s exotic loan products might not continue to be saleable into the secondary market, yet this material risk was not disclosed in Countrywide’s periodic filings. [¶ 45]
. . .
Mozilo and Sambol made affirmative misleading public statements in addition to those in the periodic filings that were designed to falsely reassure investors about the nature and quality of Countrywide’s underwriting. [¶ 91]
Oh my. 2004 eh? I seem to remember tAngelo on CNBS making multiple appearances talking about how his company was going to take market share from all these subprime lenders that collapsed, and this was going to be great for his company. Indeed, I remember chortling at the time that I believed he was a lying SOB, and of course the so-called “Fantastic Mainstream Media” lapped it up – and helped support his stock price.
It appears that the intrepid attorneys who filed this action remember that too…. and the pages surrounding 100 in the complaint document a whole bunch of them, including statements in 10Ks and 10Qs that, it is alleged, were flatly false.
And, of course, there’s this one, which I have referred to many times over the last three and a half years:
363. In the January 30, 2007 earnings conference call, Mozilo attempted to distinguish Countrywide from other lenders by stating “we backed away from the subprime area because of our concern over credit quality.” On March 13, 2007, in an interview with Maria Bartiromo on CNBC, Mozilo said that it would be a “mistake” to compare monoline subprime lenders to Countrywide. He then went on to state that the subprime market disruption in the first quarter of 2007 would “be great for Countrywide at the end of the day because all of the irrational competitors will be gone.”
I distinctly remember the cheesy suits and ties, not to mention the sprayed-on-looking tan.
370. In fact, the appraisals were inflated. Countrywide did not utilize quality underwriting processes. Countrywide’s financial condition was not sound, but was a house of cards ready to collapse, as Countrywide well knew, but Plaintiffs did not. Further, Plaintiffs’ mortgages were not refinanced with fixed rate mortgages and neither Agate nor Countrywide ever intended that they would be.
As I have repeatedly pointed out, the entire intent of these loans was not to be a mortgage at all. It was, I allege, more akin to an asset-stripping scheme where the borrower would be effectively forced to come back to the lender after a couple of years when the teaser expired or the inevitable reset or recast occurred and effectively hand over his accumulated “appreciation” in price through yet more fees to be paid to the “lender.”
I believe that for all intents and purposes, from the lender’s point of view, this was nothing more than renting the house, as passing of a clear title to the buyer was never part of what was contemplated by the lender – but of course the borrower wasn’t told this in advance – or at all.
There’s much more in the complaint, but this will do for a start.
Incidentally, the banks tried to get this removed to Federal Court and kill it, and were rebuffed, so it appears that it’s headed to trial. Plaintiff’s Bar 1, Banksters 0 thus far – I will be providing updates on this case as I become aware of them.
To contact the attorneys involved (if you believe you might have an issue related to this) view the PDF – contact information is found right on the top, including email addresses – use them.
Link to PDF
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Great
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MississippiGal | October 10, 2010 at 9:41 pm | Reply
Great
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Thanks M Gal. that was FAB. ” wunnerful wunnerful” Yikes, does anybody here remember Lawrence Welk? Wonder if I am the only relic from that era.
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I remember
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MissGal….you have mail. Thanks again.
Stephanie, I remember Lawrence Welk (Mr. Bubbles) very well. My parents never missed his shows so my siblings and I also watched (if we couldn’t escape by claiming other things to do, like homework!) lol. I didn’t appreciate his shows fully until I was a little older. Now I wish they were back. Typical, isn’t it?
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Welcome Thistle. 🙂 Anytime.
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Finance Chiefs Fail to Resolve Currency Spat as G-20 Splits
By Simon Kennedy and Sandrine Rastello – Oct 10, 2010 4:17 PM PT
Jean-Claude Trichet, president of the European Central Bank. Photographer: Andrew Harrer/Bloomberg
Leaders of the world economy failed to narrow differences over currencies as they turned to the International Monetary Fund to calm frictions that are already sparking protectionism.
Exchange rates dominated the IMF’s annual meeting in Washington this weekend on concern that officials are relying on cheaper currencies to aid growth, risking retaliatory devaluations and trade barriers. China was accused of undervaluing the yuan, while low interest rates in the U.S. and other rich nations were blamed for flooding emerging markets with capital.
Finance ministers and central bankers pledged to improve cooperation, yet did little to show how they would alter their ways beyond agreeing to let the IMF to study the matter. With the dollar down 11 percent against the yen since mid-June, compared with less than 3 percent versus the Chinese yuan, the focus turns to Group of 20 talks in South Korea in coming weeks to prove international policy making isn’t in tatters.
“Policy makers seemed to be trying to diminish concerns about currency wars,” said Steven Englander, head of Group of 10 currency strategy at Citigroup Inc. in New York. “There did not seem any commitment to change behavior, however. There is little to suggest that the dollar’s direction is anything but down.”
Mantega’s ‘War’
Days after Brazilian Finance Minister Guido Mantega set the tone for the gathering by declaring a “currency war” was underway, officials held their traditional battle lines. U.S. Treasury Secretary Timothy F. Geithner and European Central Bank President Jean-Claude Trichet were among those to signal irritation that China is restraining the yuan to aid exports even as its economy outpaces those of other G-20 members.
“Global rebalancing is not progressing as well as needed to avoid threats to the global economic recovery,” Geithner said. “Our initial achievements are at risk of being undermined by the limited extent of progress toward more domestic demand- led growth in countries running external surpluses and by the extent of foreign-exchange intervention as countries with undervalued currencies lean against appreciation.”
At the same time, officials from emerging economies including China complained that low interest rates in the U.S. and its developed-world counterparts mean investors are pouring capital into their markets, threatening growth by forcing up currencies and inflating asset bubbles. The MSCI Emerging Markets Index of stocks has soared 13 percent since the start of September.
Monetary Expansion
“Near-zero interest rates and rapid monetary expansion are geared at stimulating domestic demand but also tend to produce a weakening of their currencies,” Mantega said Oct. 9. As a result, developing countries will continue to build up reserves in foreign currency to avoid “volatility and appreciation.”
Chinese officials repeated they will allow a gradual advance in the yuan and warned that a hasty revaluation would do the world economy more harm than good.
“We are committed to a more flexible” exchange-rate regime, People’s Bank of China Deputy Governor Yi Gang said. “A more flexible, market-based, managed floating regime is better for China and is better for the rest of the world. But the approach is probably a gradual one.”
While the yuan last week rose to its highest level since 1993, its gain against the dollar since China pledged in June to make it more flexible is little more than 2 percent. The dollar has dropped for the past four weeks against the euro, passing $1.40 last week for the first time since February. It also slid through 82 yen in a move unprecedented since 1995.
Taking Steps
More and more economies are taking steps to spur growth that end up weakening their currencies. Japan last month sold yen for the first time in six years, and the Federal Reserve is signaling it may revive large-scale asset purchases next month. Switzerland, South Korea and Brazil have also intervened this year. While a lower exchange rate can help bolster exports, it also hurts trading partners, who may look to regain advantage through their own devaluations or by erecting trade barriers.
Leaders are seeking to avoid a repeat of the 1930s, when a trade war begun by the U.S. passage of the Smoot-Hawley Tariff Act deepened the worldwide economic slump.
“We’re in a world in which everyone wants a weaker currency but you cannot have an equilibrium of all currencies being weaker,” Nouriel Roubini, the New York University professor who predicted the credit crisis, told Bloomberg Television. “Currency-intervention wars eventually can lead to trade wars.”
Capital Controls
Some forms of protectionism may already be on the rise. Ukraine’s Deputy Premier Serhiy Tigipko said in an interview in Washington that his country may follow South Korea, Poland, Brazil and other emerging markets in introducing capital controls to prevent short-term investments from fueling currency volatility. India may also intervene to “prevent the disruption of the macroeconomic situation,” Reserve Bank of India Governor Duvvuri Subbarao told reporters.
In the U.S., Democratic Senator Jack Reed of Rhode Island told Bloomberg Television’s “Political Capital with Al Hunt” that the U.S. Senate may consider a lame-duck session to deal with legislation aimed at prodding China on the yuan.
Japan also remains ready to act on the yen when needed, Finance Minister Yoshihiko Noda said, although he signaled last week that his nation doesn’t intend to return to the long-term, large yen selling of the past.
IMF Reports
Unable to find common ground themselves, governments agreed the IMF should serve as currency cop by preparing reports which show how the policies of one economy affect others. The studies will focus on the U.S., China, the U.K. and the euro area.
“The need to have this kind of spillover report has been discussed for months and now it’s part of our toolbox,” IMF Managing Director Dominique Strauss-Kahn said.
The IMF nevertheless has little record of success on pushing global authorities to change their ways. A 2006 effort to oversee the re-balancing of the world economy petered out, and China has repeatedly rejected the fund’s analysis.
“The major economies are each encouraging the IMF to push harder on other countries, but showing no willingness to yield to the IMF any such leverage over their own policies,” said Eswar Prasad, a senior fellow at the Brookings Institution and a former IMF official.
Voting Power
The IMF’s membership also split over how to increase the power of emerging markets in its decision-making. The U.S. rejected as insufficient a proposal by European governments to reduce the number of seats they hold on the 24-strong board, according to two European officials.
Attention now turns to the G-20 meetings, starting next week with finance-minister talks and concluding Nov. 11-12 in Seoul with a leaders’ summit. Suggestions for how to resolve currency differences were vague in Washington, with French Finance Minister Christine Lagarde proposing better coordination and more diversification, while Canada’s Jim Flaherty suggested that new “rules of the road” be outlined. European Central Bank Executive Board member Lorenzo-Bini Smaghi suggested the G- 20 may be too big to find a compromise.
Unless checked in South Korea, the discord may snap the G- 20’s united front formed to fight the financial crisis and recession.
“A once-promising global response has now been replaced by inadequately coordinated national economic policies and growing frictions among countries,” Mohamed El-Erian, chief executive officer at Pacific Investment Management Co., said in a Washington speech.
To contact the reporter on this story:
Simon Kennedy in Washington at Skennedy4@bloomberg.net
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Germak, I missed your post above earlier. Sorry….old eyes. Thanks for the news on Don. Glad to know he’s still around. Yes, I post occasionally at AGJ too. As for organized, I used to be as well, but not anymore, and I feel like you do. Life is too short to stress over the small stuff. We have our hands full just trying to get our country & freedoms back. (A full night of peaceful sleep would be a nice added bonus once in a while too, lol) 🙂
Ambrose, thank you for your informative posts!
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This was posted by Lipper on GLP. He was answering some of the critics, just thought I’ll post it here too.
RA has been handed over to the people.. Tim Turner was voted in as President and some did leave, to continue on with RAP..Where is RAP today and those who were leading it? All along there were those who stated that RAP was a trap, I agree.. I also agree that if it were not for Turner things would have gone very badly. There have been no arrests or coup attempts, becuase of Mr. Turner’s just actions.
RA is basically a grassroots movement, and wether you wish to admit it or not, it is picking up steam in a big way. Many organizations are now coming on board with RA.
RA is now being built from the ground up in many counties across America as it should be. In my state we have police officers, county commisioners, court reporters, county engineers, etc. who are members of RA. Not to mention the Tea Party heads we are talking to…
The timing and atmosphere in America is perfect for stepping back into the Republic that was abandoned by this corporation known as the U.S. Gov….
I mean really what are people like you doing to correct anything, besides belittling anyone’s attempts at rectification? Who is it that is paying your wages? You have cointel smeared in every comment you post..
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Hope they keep on the Feds tail and get IT done.
New York Times: Rand Paul says The Fed Devalues the Dollar and Causes Boom-Bust Cycle
Submitted by bobbyw24 on Mon, 10/11/2010 – 08:13
in
Rand Paul 2010
WASHINGTON — The Federal Reserve, having weathered criticism of its regulatory failings and interest rate decisions in the years before the financial crisis, is facing a new source of anger: the “tea party” movement.
Take, for example, three Republican nominees for the Senate who relied on support from tea party activists to vanquish primary rivals supported by the party establishment:
In Utah, Mike Lee has accused the central bank of trying to “monetize the debt” by printing money to buy government bonds — a motivation that Fed officials have hotly denied. Ken Buck in Colorado has called for “shining a light on the Federal Reserve,” saying it is too cozy with private interests. And in Kentucky, Rand Paul has argued that the Fed is devaluing the dollar and causing boom-bust cycles through its easy-money policies.
More here: http://www.dailypaul.com/node/146435
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John is indicating on skype that many programs are in the process of delivery and many other things are starting to unfold. I only hope he is right.
Can’t post more without his permission.
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wow Barry! Can you send info thru private email?
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When I get home. Andy will have to pass along our emails.
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Allrighty then
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Thanks Andy! I posted it again. Everyone already has this email addy of mine. LOL
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cherroncarr@bellsouth(dot)net
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MissGal,
Can you forward? Tks
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The Tx ambassador uses juno for email. An email was sent out to me from a juno email addy and I replied back only to have it bounce back to me. Confidence in these leaders does not give a warm and fuzzy feeling.
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Juno, wow, I thought Juno went out when Reagan came in. LOL.
There was a warning going around to look out for impostors that sound sincere etc. that’s why I’m still waiting to hear from HQ who is in Florida.
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Better get your silver! I think time’s running out!
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And you say this why??
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RC, I did not say it but I do agree with MississippiGal. I think having silver and gold is good even in either event if there is a big collapse they go up in value and at least you can buy food. If there is no big collapse you still have the silver and gold and are out only a few bucks for commissions, like any other insurance. Back in Julius Caerars days for 1 ounce of gold you could buy a nice sheet, leather sandals and a web belt. Today for 1 ounce of gold you can still buy a nice suit, leather shoes and a web belt. It holds the buying power pretty good.
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http://fourwinds10.com/siterun_data/business/currency/news.php?q=1286816567
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HERE WE GO…
FDIC May Seek $1 Billion From Failed-Bank Executives
“The Federal Deposit Insurance Corp. has authorized lawsuits against more than 50 officers and directors of failed banks as the agency aims to recoup more than $1 billion in losses stemming from the credit crisis. ”
But that story released tonight is NOTHING compared to this…..
THE “ICE QUEEN” OF SILVER MANIPULATION IS ALL OVER THE WALL STREET JOURNAL TONIGHT!
J.P. Morgan Commodities Chief Takes the Heat
Yes, the creator and promoter of Credit Default Swaps turned Queen of Commodity Manipulation is now being dragged in front of the public LIKE A BIG GIANT TARGET TO BLAME for the Silver Manipulation Scandal!!!
“She is definitely not a shrinking violet,” said Bart Chilton of the Commodity Futures Trading Commission, who had several meetings with her on potential regulatory changes.”
Judging from the release of this article on Friday night…
I EXPECT THE CFTC TO ANNOUNCE THE OFFICIAL CHARGES OF SILVER MANIPULATION AGAINST JP MORGAN NEXT WEEK!
It’s getting pretty exciting out there!
Bix
PS – My $6,000/oz silver call may be a little LOW by the end of the month!
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People are starting to understand what is really happening in the silver market and why. I’ve been flooded with questions about how high I think the price of silver will go when the official manipulation stops. Truthfully, the SKY’S THE LIMIT!
Having said that I’ve dusted off and updated my article on $6,000 silver for your enjoyment:
$6,000 Silver & One Bank
http://www.roadtoroota.com/public/94.cfm
The volatility is increasing…and this is a very good thing. Watch for $5 daily moves in the weeks ahead.
I will delve deeper into the drivers behind $6,000 silver in this week’s Friday Road Trip as well as other Time Line hits that seem to be happening daily!
For now…it’s back to the Bunker for me!
Bix
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I just wanted to reach out to all you Road to Roota Subscribers to make sure you understand what is happening and why. The world might seem a little crazy right now to those who have not spent some time on our Road but remember that it is all being done on purpose. The battles are raging behind the scenes BUT hopefully you understand it all. The who, the how, the why…everything.
Here’s a few thoughts today:
1) Gold and silver are breaking out of a decades long manipulation…but they are NOT free yet. The computer programs are still running the show and ANYTHING can happen so just sit back and watch. Keep a close eye on silver as the SECRET is out. We may see triple digit (or more) silver before the end of the year!
2) The Mortgage Fraud has gone mainstream BUT the implications have not. The destruction of the entire mortgage market is upon us and it is the largest pillar holding up the financial complex. The Good Guys knew this all along and were holding off on pulling the plug until now. Watch as entire industries start to implode taking the banks, mutual funds, corporations with them. Ashes to ashes…EVERYTHING will go.
3) The DOW is climbing to new highs because it is the BAROMETER for how most people judge how the economy is doing. The market riggers will pump the DOW for as long as they can. I expect one day we may wake up to find the markets have STOPPED trading all together.
4) Congress is being purged of the Bad Guys so expect some shockers come November 2nd. I am not talking party lines or Tea Party vs. Democrats but individuals within the US Congress that are controlled by the Bad Guys. After November we may see the END of BOTH the major parties and a return to a country who selects the BEST people for the job of upholding our Constitution.
5) QE2 (Quantitative Easing #2) may be timed for the Fed meeting on November 2nd. This all plays a part in my Time Line as we should have a new Congress ready to try and tackle the Bad Guys once again. The Good Guys at the Fed will time this QE2 program to ensure the US Dollar self-destructs. I’ll call it FALLING ON THE SWORD and taking the blame for the “problem” with fiat money thus ending the the Federal Reserve System for good. I know that it’s still very hard for most of you to get your heads around the US Fed having any connection to the Good Guys. Guess time will tell.
6) All the terrorist threats and warnings are very scary as the rats are trapped and still capable of causing the worst damage you can imagine. I don’t know how this will all go down but now is a good time to stay close to home and take care of your loved ones. If there is anything to be scared about it is if “THEY” try to take us all down with them.
Does it all make sense? Can you see it all happening before your very eyes?
If not rummage through the Letter Archives here:
http://www.roadtoroota.com/public/department36.cfm
All the answers are there…
May the Road you choose be the Right Road.
Bix
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MG May I contact you off line?
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Yes you may… 🙂
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Only a woman would be worrying about this issue : ) What kind of boots / coat do you need for Wisconsin? (right?) Are there others on this blog that may soon be making that journey?
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Sorry Janet, I left Finland 50 years ago so I’m not looking to get into any more snow.
We used wrap newspaper between the socks and boots to keep warmer.
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Another piece of trivia, when I came here and saw people on TV in cold weather and snow and immediatley thought “no wonder they are cold, they are not wearing a hat”. 40% of body heat is lost through the head.
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Thanks, Andy!
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Ok, since nobody else has come in to take the bait, I’ll bite and ask….Janet, what’s in Wisconsin? Did I miss something?
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OUR Capital I would guess.
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I thought that was Kalamazoo, Michigan.
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LOL! Thistle, you are soooooo correct. I just had a ‘brain cramp’ at the time. Sounds cold to me! : )
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MississippiGal, I am already looking forward to meeting with you and others in Kalamazoo! : )
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Barry I believe that’s in Mich.
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I have not even thought about winter clothes for Michigan! LOL
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Gives new meaning to the “Sunshine Law” they are only governing in the summer.
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LOL!
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I will have to take my electric mattress pad (heated). Like crawling in a warm oven. MissGal, you might need one of those. I have been to Miss. when the temp was 70+ at Christmas, lucky for 20 in Michigan. Windy, too.
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Rock- it is 92 today in south central MS! We are having a cold front. Lol.
Rarely gets cold here even in Jan and Feb.
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MG and Andy……We have been prepared for quite some time. Not only in that department but in overall self-sufficiency. I do appreciate your comments and hopefully others will see them and take heed.
My question was more about…Why that comment today about time running out? I see you quoted the Road to Roota site. Those we do read. There is another thing to add in the case for silver. Less of it is being produced/mined than gold and it has a higher commercial use demand. I guess that would be two things actually!
Blessings to Everyone here.
Thanks again Andy for this site.
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Yes RC! You are right about silver!
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Bart Chilton, a commissioner at the US Commodities Futures Trading Commission (CFTC), which is investigating the claims, said: ‘I think the public deserves some answers in the very near future.’
He said: ‘I expect the CFTC to say something on our silver investigation within weeks. I can’t pre-judge what that will be. I can’t even guarantee that the agency will speak. That said, if the agency remain silent for much longer, I intend to speak out on the matter in an appropriate fashion.’
RC- this was taken out of the fourwinds article posted above.
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MissyGal, can you forward any news to me please?
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sure will!! 🙂
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MG…don’t forget your “lurking family”
thanks
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Ha I won’t!
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