Flashback! Forget Compromise: The Debt Ceiling is Unconstitutional!

Ellen Brown • www.webofdebt.com • July 31, 2011

The debt ceiling crisis can be averted by enforcing the Fourteenth Amendment, which mandates the government to pay its debts already incurred, including pensions. That means Social Security, which IS an “entitlement,” in the original sense of the word. We’re entitled to it because we’ve paid for it with taxes.

The game of Russian roulette being played with the U.S. federal debt has been called a “grotesque political carnival” and political blackmail. The uproar stems from a statute that is unique to the United States and never did make much sense. First passed in 1917 and revised multiple times since, it imposes a dollar limit on the federal debt. What doesn’t make sense is that the same Congress that voted on the statute votes on the budget, which periodically exceeds the limit, requiring the statute to be revised. The debt ceiling has been raised 74 times since 1962, 10 of them since 2001. The most recent increase, to $14.294 trillion by H.J.Res. 45, was signed into law on February 12, 2010.

Taxes aren’t collected until after the annual budget is passed, so Congress can’t know in advance whether or how much additional borrowing will be required. Inevitably, there will be some years that the budget pushes the debt over the limit, requiring new legislation. And inevitably, now that this tactic has been discovered, there will be a costly battle over the increase, wasting congressional time, destabilizing markets, and rattling faith in the American financial and political systems. There will be continual blackmail, arm-twisting and concessions. The situation is untenable and cries out for a definitive resolution.

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Is Homeland Security Preparing for the Next Wall Street Collapse?

Ellen Brown • www.truth-out.org • October 9, 2013

Reports are that the Department of Homeland Security (DHS) is engaged in a massive, covert military buildup. An article in the Associated Press in February confirmed an open purchase order by DHS for 1.6 billion rounds of ammunition. According to an op-ed in Forbes, that’s enough to sustain an Iraq-sized war for over twenty years. DHS has also acquired heavily armored tanks, which have been seen roaming the streets. Evidently somebody in government is expecting some serious civil unrest. The question is, why?…

The Looming Debt Ceiling Crisis

The next crisis on the agenda appears to be the October 17th deadline for agreeing on a federal budget or risking default on the government’s loans. It may only be a coincidence, but two large-scale drills are scheduled to take place the same day, the “Great ShakeOut Earthquake Drill” and the “Quantum Dawn 2 Cyber Attack Bank Drill.” According to a Bloomberg news clip on the bank drill, the attacks being prepared for are from hackers, state-sponsored espionage, and organized crime (financial fraud). One interviewee stated, “You might experience that your online banking is down . . . . You might experience that you can’t log in.” It sounds like a dress rehearsal for the Great American Bail-in.

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The Armageddon Looting Machine: The Looming Mass Destruction From Derivatives

Ellen Brown • www.huffingtonpost.com • September 18, 2013

Increased regulation and low interest rates are driving lending from the regulated commercial banking system into the unregulated shadow banking system. The shadow banks, although free of government regulation, are propped up by a hidden government guarantee in the form of safe harbor status under the 2005 Bankruptcy Reform Act pushed through by Wall Street. The result is to create perverse incentives for the financial system to self-destruct.

Five years after the financial collapse precipitated by the Lehman Brothers bankruptcy on September 15, 2008, the risk of another full-blown financial panic is still looming large, despite the Dodd-Frank legislation designed to contain it. As noted in a recent Reuters article, the risk has just moved into the shadows:

[B]anks are pulling back their balance sheets from the fringes of the credit markets, with more and more risk being driven to unregulated lenders that comprise the $60 trillion “shadow-banking” sector.

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Public Banking: The Antidote to Wall Street’s Domination of the Economy – Part 3

John Lawrence • www.sandiegofreepress.com • September 25, 2013

When states and municipalities set up public banks, money and hence energy is withdrawn from Wall Street creating the perfect revolution with the result that the husk of Wall Street shrivels up and dies like a plant deprived of nutrients … without a shot being fired.

Nothing could be less radical than a public bank because the state of North Dakota already has one and it has been working successfully for the citizens of North Dakota. No one would accuse North Dakotans of being socialists or would they? No new ground to break here!

Instead of money leaving the state and going to Wall Street, money stays in the state where it is lent out in the form of student and business loans with the profits being shared by the citizens of North Dakota instead of going into the pockets of private bankers in New York.

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Public Banking: The Antidote to Wall Street’s Domination of the Economy – Part 2

John Lawrence • www.sandiegofreepress.com • September 6, 2013

California Could Solve Its Budget Problems by Starting a Public Bank Like North Dakota Did

The most solvent state in the US is North Dakota which has low unemployment, no budget deficit and a burgeoning economy. The main reason is that the state has a public bank (BND) in which state revenues and pension funds can be invested making it unnecessary to send the money out of the state to Wall Street. All state revenues are deposited in the BND by law. Instead of Wall Street making the profits on North Dakota’s money, North Dakota is making the profits.

Instead of paying interest on debt bonds, North Dakota is reinvesting the interest its public bank makes on infrastructure improvements and lowering state income taxes among other things.

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Public Banking: The Antidote to Wall Street’s Domination of the Economy – Part 1

John Lawrence • www.sandiegofreepress.com • August 23, 2013

States, Cities and Pension Funds Have Gone into Debt to Wall Street When They Could Have Started a Public Bank and Paid Interest to Themselves

Public banks plow their revenues back into community needs like infrastructure, education, health facilities, local enterprises and other public banks. When municipalities, cities, states, countries and even smaller jurisdictions like school districts fund their deficits with Wall Street, the profits go into the pockets of executives and investors.

Currently, only the state of North Dakota has a public bank. As a consequence North Dakota suffered very little from the Great Recession of 2008, has a robust economy and no budget deficit. California on the other hand struggles every year with its budget because it pays a lot of interest on its loans to Wall Street. If California had a public bank similar to North Dakota’s, it would have no budget deficit at all and could fund its infrastructure needs out of its own revenues.

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Public Banking Institute Calls Largest Wall Street Banks “Unsafe,” and Backs It Up

Pam Martens • www.WallStreetOnParade.com • August 29, 2013

The Public Banking Institute has released a new video making serious claims, backed by graphs and government documents, that the largest Wall Street banks are an unsafe choice for the savings of moms, pops and public payrolls. Citing a December 10, 2012 jointly approved plan between the U.S. Federal Deposit Insurance Corporation (FDIC) and the Bank of England, which resides on the FDIC’s federal web site, the organization says depositors in the U.S. could see portions of their deposits confiscated, similar to what happened in Cyprus, should there be another Wall Street collapse as occurred in 2008.

Read the entire article here.

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