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Paul Merrell

Half of Federal Agencies Still Use Outdated Freedom of Information Regulations - 0 views

  • Nearly half (50 out of 101) of all federal agencies have still not updated their Freedom of Information Act regulations to comply with Congress's 2007 FOIA amendments, and even more agencies (55 of 101) have FOIA regulations that predate and ignore President Obama's and Attorney General Holder's 2009 guidance for a "presumption of disclosure," according to the new National Security Archive FOIA Audit released today to mark Sunshine Week. Congress amended the Freedom of Information Act in 2007 to prohibit agencies from charging processing fees if they missed their response deadlines, to include new online journalists in the fee waiver category for the media, to order agencies to cooperate with the new FOIA ombudsman (the Office of Government Information Services, OGIS), and to require reports of specific data on their FOIA output, among other provisions co-authored by Senators Patrick Leahy (D-VT) and John Cornyn (R-TX). But half the government has yet to incorporate these changes in their regulations, according to the latest National Security Archive FOIA Audit. After President Obama's "Day One" commitments to open government, Attorney General Eric Holder issued new FOIA guidance on March 19, 2009, declaring that agencies should adopt a "presumption of disclosure," encourage discretionary releases if there was no foreseeable harm (even if technically covered by an exemption), proactively post the records of greatest public interest online, and remove "unnecessary bureaucratic hurdles" from the FOIA process. But five years later, the Archive found a majority of agencies have old regulations that simply ignore this guidance.
  • The Archive's FOIA Audit also highlights some good news this Sunshine Week: New plans from both the House of Representatives and White House have the potential to compel delinquent agencies to update their regulations. "Both Congress and the White House now recognize the problem of outdated FOIA regulations, and that is something to celebrate," said Archive director Tom Blanton. "But new regs should not follow the Justice Department's terrible lead, they must follow the best practices already identified by the FOIA ombuds office and FOIA experts." "If and when this important FOIA reform occurs, open government watchdogs must be vigilant to ensure that the agencies' updated regulations are progressive, rather than regressive, and embrace best practices to ensure that more documents are released to requesters, more quickly" said Nate Jones, the Archive's FOIA coordinator.
  • In 2011, the back-to-back Rosemary Award-winning Department of Justice proposed FOIA regulations that would have — among many other FOIA setbacks — allowed the Department to lie to FOIA requesters, eliminated online-only publications from receiving media fee status, and made it easier to destroy records. After intense pushback by openness advocates, the DOJ temporarily pulled these regulations, and Pustay claimed, "some people misinterpreted what we were trying to do, misconstrued some of the provisions, and didn't necessarily understand some of the fee guidelines." Pustay also claimed — to an incredulous Senate Judiciary Committee — that updating FOIA regulations to conform with the 2007 OPEN Government Act was merely optional and "not required." National Security Archive director Tom Blanton warned in his own 2013 Senate testimony that these terrible "vampire" regulations were not gone for good. This year, Pustay testified that the Department of Justice has indeed resubmitted its FOIA regulations for OMB approval; their content is unknown to the public.
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  • The House of Representatives recently unanimously passed the bipartisan Freedom of Information Act Implementation Act (H.R. 1211), which includes a provision compelling agencies to update their FOIA regulations. The House bill — which now awaits Senate approval — would require each agency to update its FOIA regulations "not later than 180 days after the enactment of this Act." The White House is also addressing the problem of outdated FOIA regulations, albeit in a different manner. In its latest Open Government Partnership National Action Plan, the White House has committed (on paper, at least) to creating one "core FOIA regulation and common set of practices [that] would make it easier for requesters to understand and navigate the FOIA process and easier for the Government to keep regulations up to date." Transparency watchdogs went on alert this week after the Department of Justice's Director of Information Policy Melanie Pustay announced during her Senate testimony on March 11, 2014 that, "My office is leading that project" to create the White House-backed common regulation which, she estimated will be, "a one or two year project." Despite Pustay's pledge that she would accept input from OGIS and the requester community, her Department's history of crafting FOIA regulations has been anything but stellar.
  • As the Department of Justice and other agencies have demonstrated, new regulations do not necessarily make good regulations. As such, the National Security Archive has recommended that any updated FOIA regulations must: mandate that FOIA officers embrace direct communications with requesters; require agencies to receive requests by e-mail and post all responses and documents online; direct agencies to update their FOIA processing software so documents can be posted to any online repository, including the government-sponsored FOIAonline; encourage agencies to join FOIAonline to make their FOIA processing more cost-effective and efficient; stream-line inter and intra-agency "referral" black holes — and keep requesters abreast of where their requests are if the agency does have to refer them; include language encouraging use of the OGIS, which can help requesters and agencies mediate disputes to avoid animosity and costly litigation; end the practice of using fees to discourage FOIA requesters. The Office of Government Information Services — which reviews and comments on agency regulations as they are proposed — has also compiled a list of best practices for agencies to consider while crafting regulations. These include: "let the Freedom of Information Act itself" — and its presumption for disclosure — "be your guide;" bring attorneys, FOIA processors, records managers and IT pros to the table; include your plan for records management and preservation; and alert requesters of their option to contact OGIS for mediation and dispute resolution services.
  • A useful compilation of current agency FOIA regulation language — already on the books — put together by the Center of Effective Government also includes helpful guidelines on preventing the destruction of requested records; narrowly interpreting claims of confidential business information; and clarifying fee waivers and procedures. FOIA experts are currently working to craft model, pro-transparency, CFR-ready language that agencies — or the drafters of government-wide common regulations — can use to bring agencies' Freedom of Information Act regulations up to standard. Watch this space, and then watch the Code of Federal Regulations (CFR). "As the staffer who waded through every single federal agencies' FOIA website and CFR chapter to locate their — sometimes hidden — regulations, I learned FOIA officials often say they view their FOIA requesters as customers," said Archive researcher Lauren Harper, "I think easy to find, updated model FOIA regulations are the best way for agencies to demonstrate they truly value their customer service, and the spirit of the FOIA."
  • The National Security Archive has conducted thirteen FOIA audits since 2002. Modeled after the California Sunshine Survey and subsequent state "FOI Audits," the Archive's FOIA Audits use open-government laws to test whether or not agencies are obeying those same laws. Recommendations from previous Archive FOIA Audits have led directly to laws and executive orders which have: set explicit customer service guidelines, mandated FOIA backlog reduction, assigned individualized FOIA tracking numbers, forced agencies to report the average number of days needed to process requests, and revealed the (often embarrassing) ages of the oldest pending FOIA requests. The surveys include:
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    Article includes tables indicating which agencies are out of compliance with which FOIA directives. 
Gary Edwards

Federal Reserve Loans Need To Be Investigated - post-journal.com | News, Sports, Jobs, ... - 1 views

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    I'm almost too afraid to look, but the Federal Reserve must be stopped.  Let's see, the Treasury takes in $2 Trillion per year in taxes;  the ruling establishment has tripled the spending, pegging at $3.6 Trillion per year; meaning we have to finance a deficit of $1.6 Trillion per year; and we're facing interest payments on the national debt of $5 Trillion per year with unfunded "social" obligation at $100 Trillion.  Now we find out the Federal Reserve Bankster Cartel passed out over $7 Trillion in goodies to member banksters before they secretly passed out $16.2 Trillion to the Cartel to cover the 2008 financial collapse losses. Time to dust off Executive Order 11110, issued by President John F Kennedy five months prior to the coup d'état, giving the Treasury Department the explicit authority to issue silver certificates backed by Treasury silver bullion, if needed.  Basically Order 11110 stripped the Federal Reserve Bankster Cartel of it's power to loan money to the US Government at interest.  The Federal Reserve Notes in use would be competing with newly minted US Silver Certificates.   It would be easy enough to pay off the Bankster Cartel interest with official Federal Reserve Notes since there is so much paper out there.  But i would prefer the RiCO statue be invoked, assets seized, and charges of treason levied via the outrageous violations of the 1792 Coinage Act and conspiracy to destroy the dollar.   Many Americans, myself included, have long wondered why We the People would charge ourselves "interest" on money we borrow from our future selves?  Who does that?  But when we discover that the Federal Reserve is about as 'Federal" as Federal Express, the narrative wuickly leads to questions of how did it happen that we turned governance and stewardship of the national currency over to a private cartel of banksters?   Is the Federal Reserve Bankster Act of 1913 constitutional? Hardly.  Article 1 Section 8 of the Constitution la
Paul Merrell

Federal Chief Information Officers (CIO) Council Wins Rosemary Award - 0 views

  • Hillary Clinton E-Mail Controversy Illuminates Government-Wide Failure National Security Archive Lawsuit Established E-Mails as Records in 1993 CIO Council Repeats as Rosemary "Winner" for Doubling Down On "Lifetime Failure" Only White House Saves Its E-Mail Electronically, Agencies No Deadline Until 2016
  • The Federal Chief Information Officers (CIO) Council has won the infamous Rosemary Award for worst open government performance of 2014, according to the citation published today by the National Security Archive at www.nsarchive.org. The National Security Archive had hoped that awarding the 2010 Rosemary Award to the Federal Chief Information Officers Council for never addressing the government's "lifetime failure" of saving its e-mail electronically would serve as a government-wide wakeup call that saving e-mails was a priority. Fallout from the Hillary Clinton e-mail debacle shows, however, that rather than "waking up," the top officials have opted to hit the "snooze" button. The Archive established the not-so-coveted Rosemary Award in 2005, named after President Nixon's secretary, Rose Mary Woods, who testified she had erased 18-and-a-half minutes of a crucial Watergate tape — stretching, as she showed photographers, to answer the phone with her foot still on the transcription pedal. Bestowed annually to highlight the lowlights of government secrecy, the Rosemary Award has recognized a rogue's gallery of open government scofflaws, including the CIA, the Treasury Department, the Air Force, the FBI, the Justice Department, and Director of National Intelligence James Clapper.
  • Chief Information Officer of the United States Tony Scott was appointed to lead the Federal CIO Council on February 5, 2015, and his brief tenure has already seen more references in the news media to the importance of maintaining electronic government records, including e-mail, and the requirements of the Federal Records Act, than the past five years. Hopefully Mr. Scott, along with Office of Management & Budget Deputy Director for Management Ms. Beth Cobert will embrace the challenge of their Council being named a repeat Rosemary Award winner and use it as a baton to spur change rather than a cross to bear.
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  • Many on the Federal CIO Council could use some motivation, including the beleaguered State Department CIO, Steven Taylor. In office since April 3, 2013, Mr. Taylor is in charge of the Department's information resources and IT initiatives and services. He "is directly responsible for the Information Resource Management (IRM) Bureau's budget of $750 million, and oversees State's total IT/ knowledge management budget of approximately one billion dollars." Prior to his current position, Taylor served as Acting CIO from August 1, 2012, as the Department's Deputy Chief Information Officer (DCIO) and Chief Technology Officer of Operations from June 2011, and was the Program Director for the State Messaging and Archival Retrieval Toolset (SMART). While Hillary Clinton repeatedly claimed that because she sent her official e-mail to "government officials on their State or other .gov accounts ... the emails were immediately captured and preserved," a recent State Department Office of Inspector General report contradicts claims that DOS' e-mail archiving system, ironically named SMART, did so.
  • The report found that State Department "employees have not received adequate training or guidance on their responsibilities for using those systems to preserve 'record emails.'" In 2011, while Taylor was State's Chief Technology Officer of Operations, State Department employees only created 61,156 record e-mails out of more than a billion e-mails sent. In other words, roughly .006% of DOS e-mails were captured electronically. And in 2013, while Taylor was State's CIO, a paltry seven e-mails were preserved from the Office of the Secretary, compared to the 4,922 preserved by the Lagos Consulate in Nigeria. Even though the report notes that its assessments "do not apply to the system used by the Department's high-level principals, the Secretary, the Deputy Secretaries, the Under Secretaries, and their immediate staffs, which maintain separate systems," the State Department has not provided any estimation of the number of Clinton's e-mails that were preserved by recipients through the Department's anachronistic "print and file" system, or any other procedure.
  • The unfortunate silver lining of Hillary Clinton inappropriately appropriating public records as her own is that she likely preserved her records much more comprehensively than her State Department colleagues, most of whose e-mails have probably been lost under Taylor's IT leadership. 2008 reports by CREW, right, and the GAO, left, highlighted problems preserving e-mails. Click to enlarge. The bigger issue is that Federal IT gurus have known about this problem for years, and the State Department is not alone in not having done anything to fix it. A 2008 survey by Citizens for Responsibility and Ethics in Washington (CREW) and OpenTheGovernment.org did not find a single federal agency policy that mandates an electronic record keeping system agency-wide. Congressional testimony in 2008 by the Government Accountability Office indicted the standard "print and file" approach by pointing out:
  • "agencies recognize that devoting significant resources to creating paper records from electronic sources is not a viable long-term strategy;" yet GAO concluded even the "print and file" system was failing to capture historic records "for about half of the senior officials."
  • Troublingly, current Office of Management and Budget guidance does not require federal agencies to manage "all email records in an electronic format" until December 31, 2016. The only part of the federal government that seems to be facing up to the e-mail preservation challenge with any kind of "best practice" is the White House, where the Obama administration installed on day one an e-mail archiving system that preserves and manages even the President's own Blackberry messages. The National Security Archive brought the original White House e-mail lawsuit against President Reagan in early 1989, and continued the litigation against Presidents George H.W. Bush and Bill Clinton, until court orders compelled the White House to install the "ARMS" system to archive e-mail. The Archive sued the George W. Bush administration in 2007 after discovering that the Bush White House had junked the Clinton system without replacing its systematic archiving functions. CREW subsequently joined this suit and with the Archive negotiated a settlement with the Obama administration that included the recovery of as many as 22 million e-mails that were previously missing or misfiled.
  • s a result of two decades of the Archive's White House e-mail litigation, several hundred thousand e-mails survive from the Reagan White House, nearly a half million from the George H.W. Bush White House, 32 million from the Clinton White House, and an estimated 220 million from the George W. Bush White House. Previous recipients of the Rosemary Award include: 2013 - Director of National Intelligence James Clapper (for his "No, sir" lie to Senator Ron Wyden's question: "Does the NSA collect any type of data at all on millions or hundreds of millions of Americans?") 2012 - the Justice Department (in a repeat performance, for failing to update FOIA regulations to comply with the law, undermining congressional intent, and hyping its open government statistics)
  • Rogue Band of Federal E-mail Users and Abusers Compounds Systemic Problems Former Secretary of State Hillary Clinton and other federal officials who skirt or even violate federal laws designed to preserve electronic federal records compound e-mail management problems. Top government officials who use personal e-mail for official business include: Clinton; former U.S. Ambassador to Kenya Scott Gration; chairman of the U.S. Chemical Safety Board Rafael Moure-Eraso; and former Secretary of State Colin Powell, who told ABC's This Week "I don't have any to turn over. I did not keep a cache of them. I did not print them off. I do not have thousands of pages somewhere in my personal files." Others who did not properly save electronic federal records include Environmental Protection Agency former administrator Lisa Jackson who used the pseudonym Richard Windsor to receive email; current EPA administrator Gina McCarthy, who improperly deleted thousands of text messages (which also are federal records) from her official agency cell phone; and former Internal Revenue Service official Lois Lerner, whose emails regarding Obama's political opponents "went missing or became destroyed."
  • 2011- the Justice Department (for doing more than any other agency to eviscerate President Obama's Day One transparency pledge through pit-bull whistleblower prosecutions, recycled secrecy arguments in court cases, retrograde FOIA regulations, and mixed FOIA responsiveness) 2010 - the Federal Chief Information Officers' Council (for "lifetime failure" to address the crisis in government e-mail preservation) 2009 - the FBI (for having a record-setting rate of "no records" responses to FOIA requests) 2008 - the Treasury Department (for shredding FOIA requests and delaying responses for decades) 2007 - the Air Force (for disappearing its FOIA requests and having "failed miserably" to meet its FOIA obligations, according to a federal court ruling) 2006 - the Central Intelligence Agency (for the biggest one-year drop-off in responsiveness to FOIA requests yet recorded).
  • The destruction of other federal records was even more blatant. Jose Rodriguez, the former CIA official in charge of the agency's defunct torture program ordered the destruction of key videos documenting it in 2005, claiming that "the heat from destroying [the torture videos] is nothing compared to what it would be if the tapes ever got into the public domain;" Admiral William McRaven, ordered the immediate destruction of any emails about Operation Neptune Spear, including any photos of the death of Osama bin Laden ("destroy them immediately"), telling subordinates that any photos should have already been turned over to the CIA — presumably so they could be placed in operational files out of reach of the FOIA. These rogues make it harder — if not impossible — for agencies to streamline their records management, and for FOIA requesters and others to obtain official records, especially those not exchanged with other government employees. The US National Archives currently trusts agencies to determine and preserve e-mails which agencies have "deemed appropriate for preservation" on their own, often by employing a "print and file" physical archiving process for digital records. Any future reforms to e-mail management must address the problems of outdated preservation technology, Federal Records Act violators, and the scary fact that only one per cent of government e-mail addresses are saved digitally by the National Archive's recently-initiated "Capstone" program.
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    Complete with photos, names, titles, of the 41 federal department and independent agency CIOs. The March 2015 Insopector General report linked from the article belies Hillary Clinton's claim that all emails she sent to State Department staff had been preserved by the Department.   
Gary Edwards

A First Look at the Book "The Liberty Amendments", by Mark Levin - Tea Party Command Ce... - 0 views

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    Excellent youtube interview! "Mark Levin has just published his much-anticipated book The Liberty Amendments: Restoring the American Republic. Three of his eleven proposed Constitutional amendments appear below, and a Sean Hannity interview of Levin appears at the bottom of this post. Levin's book is centered around the Constitution's Article V (aka "Article 5″). That article specifies two methods for amending the Constitution. Just briefly - In the first method of creating amendments, Congress proposes and the States dispose. In the second method of creating amendments, the States propose and the States dispose. The second method has never been used successfully, although there have been many attempts.  It is that second method that the Founders provided as a remedy for an overreaching federal government. In the second method, neither Congress, nor the President, nor the Supreme Court have any voting or veto authority whatsoever.  The states are in full control. Period. It is, by design, the ultimate override for an over-spending, over-taxing, over-regulating, and increasingly dictatorial and lawless federal government. Clearly, its time has come. In that second method, Congress has at most a mere ministerial role.  Of course Congress is very protective of its power, and could, through delay and inaction, attempt to convert their mere ministerial role into a de facto veto power, halting any attempt for a state-driven amendment action. Apparently Congress has done exactly that many times, acting in bad faith and contrary to the Framers' spirit and intent for Article V which is clearly expressed in the Federalist Papers. Legal scholars have been trying to find a way around the federal government's intransigence, so far with little success. Now more than ever, it is time for We the People to bring the power of Article V to the center ring of American politics. That starts with awareness, and Levin's book will br
Gary Edwards

James Madison and the States Natural Right of Nullification ; Publius-Huldah's Blog - 0 views

  • What are the Two Conditions Precedent for Nullification?
  • The act of the federal government must be unconstitutional –  usually a usurpation of a power not delegated to the federal government in the Constitution; and
  • The act must be something The States or The People can “nullify”- i.e., refuse to obey:  the act must order them to do something or not do something.
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  • If the federal government should overpass the just bounds of its authority and make a tyrannical use of its powers, the people, whose creature it is, must appeal to the standard [the Constitution] they have formed, and take such measures to redress the injury done to the Constitution as the exigency may suggest and prudence justify.”
  • When the act of the federal government is unconstitutional and orders The States or The People to do – or not do – something, nullification is the proper form of interposition.
  • When the act of the federal government is unconstitutional, but doesn’t order The States or The People to do – or not do – something (the alien & sedition acts), nullification is not possible. The States may interpose by objecting, as in The Virginia & Kentucky Resolutions of 1798.
  • When the act of the federal government is constitutional, but unjust (the Tariff Act of 1828), the States may not nullify it; but may interpose by objecting and trying to get the Tariff Act changed.
  • Our Founding Principles in a Nutshell
  • Rights come from God;
  • People create governments;
  • The purpose of government is to secure the rights God gave us; and
  • When a government We created seeks to take away our God given rights, We have the Right – We have the Duty – to alter, abolish, or throw off such government.
  • The former will be exercised principally on external objects, as war, peace, negotiation, and foreign commerce; with which last the power of taxation will, for the most part, be connected.
  • It is to secure our rights to life and liberty by:
  • These enumerated powers concern: Military defense, international commerce & relations; Control of immigration and naturalization of new citizens; Creation of a uniform commercial system: Weights & measures, patents & copyrights, money based on gold & silver, bankruptcy laws, mail delivery & some road building; and With some of the Amendments, protect certain civil rights and voting rights (for blacks, women, citizens who don’t pay taxes, and citizens 18 years and older).
  • It is only with respect to the enumerated powers that the federal government has lawful authority over the Country at large. All other powers are “reserved to the several States” and The People.
  • The powers reserved to the several States will extend to all the objects which … concern the lives, liberties, and properties of the people, and the internal order, improvement, and prosperity of the State.”
  • Military defense (Art. I, Sec. 8, cl. 11-16); Laws against piracy and other felonies committed on the high seas (Art. I, Sec. 8, cl. 10); Protecting us from invasion (Art IV, Sec. 4); Prosecuting traitors (Art III, Sec. 3); and Restrictive immigration policies (Art. I, Sec. 9, cl. 1).
  • It is to secure our property rights by:
  • Regulating trade & commerce so we can produce, sell & prosper (Art. I, Sec. 8, cl.3). The original intent of the interstate commerce clause is to prohibit States from levying tolls & taxes on articles of commerce as they are transported thru the States for buying & selling. Establishing uniform weights & measures and a money system based on gold & silver (Art I, Sec. 8, cl. 5) – inflation via paper currency & fractional reserve lending is theft! Punishing counterfeiters (Art I, Sec. 8, cl. 6); Making bankruptcy laws to permit the orderly dissolution or reorganization of debtors’ estates with fair treatment of creditors (Art I, Sec 8, cl. 4); and Issuing patents & copyrights to protect ownership of intellectual labors (Art I, Sec 8, cl 8)
  • Madison answers the objection “that the judicial authority is to be regarded as the sole expositor of the Constitution, in the last resort”.
  • Laws against slavery (13th Amendment); Providing fair trials in federal courts (4th, 5th, 6th, 7th, and 8th Amendments); and          Obeying the Constitution!
  • The fourth Founding Principle in our Declaration is this: When government takes away our God given rights, We have the Right & the Duty to alter, abolish, or throw off such government. Nullification is thus a natural right of self-defense:
  • 1. As we have just seen, Jefferson, Madison, and Hamilton saw nullification of unconstitutional acts of the federal government as a “natural right” – not a “constitutional right”. And since Rights come from God, there is no such thing as a “constitutional right”!
  • 2. The Right of Nullification, transcending as it does, the Constitution; and being nowhere prohibited by the Constitution to the States, is a reserved power.
  • The 10th Amendment says: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”
  • Madison’s Report on the Virginia Resolutions (1799-1800)
  • Now! Note Well:  Madison actually says, in the same Report Barnett cites, that it is “a plain principle, founded in common sense” that The States are the final authority on whether the federal government has violated our Constitution! Under his discussion of the 3rd Resolution, Madison says:
  • “It appears to your committee to be a plain principle, founded in common sense, illustrated by common practice, and essential to the nature of compacts; that where resort can be had to no tribunal superior to the authority of the parties, the parties themselves must be the rightful judges in the last resort, whether the bargain made, has been pursued or violated. The Constitution of the United States was formed by the sanction of the States, given by each in its sovereign capacity. It adds to the stability and dignity, as well as to the authority of the Constitution, that it rests on this legitimate and solid foundation. The States then being the parties to the constitutional compact, and in their sovereign capacity, it follows of necessity, that there can be no tribunal above their authority, to decide in the last resort, whether the compact made by them be violated; and consequently that as the parties to it, they must themselves decide in the last resort, such questions as may be of sufficient magnitude to require their interposition.” [emphasis mine]
  • Madison explains that if, when the federal government usurps power, the States cannot act so as to stop the usurpation, and thereby preserve the Constitution as well as the safety of The States; there would be no relief from usurped power. 
  • This would subvert the Rights of the People as well as betray the fundamental principle of our Founding:
  • …If the deliberate exercise, of dangerous power, palpably withheld by the Constitution, could not justify the parties to it, in interposing even so far as to arrest the progress of the evil, and thereby to preserve the Constitution itself as well as to provide for the safety of the parties to it; there would be an end to all relief from usurped power, and a direct subversion of the rights specified or recognized under all the State constitutions, as well as a plain denial of the fundamental principle on which our independence itself was declared.” [emphasis mine]
  • It is to secure our right to liberty by:
  • Madison explains that when the federal government acts outside the Constitution by usurping powers, and when the Constitution affords no remedy to that usurpation; then the Sovereign States who are the Parties to the Constitution must likewise step outside the Constitution and appeal to that original natural right of self-defense.
  • Madison goes on to say that all three Branches of the federal government obtain their delegated powers from the Constitution; and they may not annul the authority of their Creator.
  • but, where powers are assumed which have not been delegated, a nullification of the act is the rightful remedy: that every State has a natural right in cases not within the compact, (casus non foederis,) to nullify of their own authority all assumptions of power by others within their limits: that without this right, they would be under the dominion, absolute and unlimited, of whosoever might exercise this right of judgment for them…” [boldface mine]
  • Application Today
  • When WE THE PEOPLE ratified our Constitution, and thereby created the federal government, WE did not delegate to our “creature” power to control our medical care, restrict guns and ammunition, dictate what is done in the public schools, dictate how we use our lands, and all the thousands of things they do WE never gave them authority in our Constitution to do.
  • Accordingly, each State has a natural right to nullify these unconstitutional dictates within its borders.  These dictates are outside the compact The Sovereign States made with each other –WE never gave our “creature” power over these objects.
  • To sum this up:
  • Nullification is a natural right of self-defense. Rights don’t come from the Constitution. Like all Rights, the right of self-defense comes from God (The Declaration of Independence, 2nd para). Nullification is a reserved power within the meaning of the 10th Amendment. The Constitution doesn’t prohibit States from nullifying, and We reserved the power to do it. God requires us to disobey civil authorities when they violate God’s Law. That’s why the 2nd para of the Declaration of Independence says we have the duty to overthrow tyrannical government. See: The Biblical Foundation of our Constitution. Nullification is required by Oath of Office:  Article VI, cl. 3 requires all State officers and judges to “support” the federal Constitution. Therefore, when the federal government violates the Constitution, the States must smack them down.
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    Incredible and passionate argument concerning the States natural God given right to nullify and render unenforceable un-Constitutional actions of the Federal Government.  As "creators" of the Federal Government, the States are obligated to nullify un-Constitutional actions and interpose Constitutional alternatives.  Huldah sites Jefferson, Madison and Hamilton as the primary Constitutional authorities for her rock solid argument.   If ever you want to learn about the Constitution, Publius Huldah is clearly the place to go.  
Gary Edwards

Regulations.gov - 0 views

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    excerpt from the Tea Party Command Center: Whenever a new regulation, or change to a current regulation, is proposed there is an announcement on a website called the Federal Register (Link to this page).   Here we can view everything from proposed regulations to presidential documents (executive orders). There is usually a public comment period during which time the public can comment in support or opposition to these proposed regulations. There is a separate website set up for this, it is called Regulations.gov Regulations With Comments Due Soon: Next 3 Days(91) Next 7 Days(171) Next 15 Days(394) Next 30 Days(693) Next 90 Days(1,017) The Patriot-Tea Party groups across the Nation need to take action on some of these items.  Obviously almost 200 proposed regulations with comments due within the next week is way too much for the Tea Party Command Center to cover alone.  Obviously we need help.  Every Patriot has that special area in which you have a keen interest.  Be it the healthcare, immigration, FDA, Social Security, Medicare, Medicaid...  The list goes on. However, the responses must be well written and productive.  Spelling, grammar and counterpoints must be given to effectively argue the points. Who can we count on?  Who is willing to step up and help us out.  Editors?  Fact finders?  Do we need to set up a group?  What can we do to help you help us all?
Gary Edwards

Dan Ferris - The real story on financial regulation you need to see - 0 views

  • Like everyone else, Lewis ignored the fact that the CDS market is private only because the Commodity Futures Modernization Act made it that way. It was regulated underground. Without the CFMA, a transparent public futures market in CDSs could have formed and was, in fact, being discussed before the law put the kibosh on it. Everybody and his brother would have seen prices on CDSs for Lehman Brothers and AIG rising during the summer of 2008, harbingers of impending doom, way ahead of the ratings agencies. What's more, banks sold prime mortgage loans and bought "triple-A-rated" collateralized debt obligations (CDOs) only because the Basel II Capital Accords established lower capital requirements for triple-A-rated securities than for prime mortgage loans. When capital requirements drop, you suddenly have more money you can spend on other things. Basel II made the ratings agencies instantly more powerful and important to a bank's competitive position than the behavior of its own underwriters. Throw in the Community Reinvestment Act, two ill-managed massive entities making markets in mortgages (Fannie and Freddie), and the Federal Reserve – a government-created private banking cartel – and you have a government-led financial disaster. There's plenty of blame to go around, I know. But how anyone could miss the massive role of the misguided, heavy-handed regulation is beyond me. Everyone who ought to know better – from hedge-fund managers to our elected representatives – says we need more regulation, not less. Isn't that curious? The solution is never less regulation, and the fault is never too much regulation. If I were more paranoid, I'd cry conspiracy.
  • delivering an oligopoly to JPMorganChase, Bank of America, and Citigroup.
  • The only reason the industry isn't paying for its failures is the government interfered and staged the biggest bailout in history! The government creates a problem, and the solution is somehow always... more government.
  •  
    Like everyone else, Lewis ignored the fact that the CDS market is private only because the Commodity Futures Modernization Act made it that way. It was regulated underground. Without the CFMA, a transparent public futures market in CDSs could have formed and was, in fact, being discussed before the law put the kibosh on it. Everybody and his brother would have seen prices on CDSs for Lehman Brothers and AIG rising during the summer of 2008, harbingers of impending doom, way ahead of the ratings agencies. What's more, banks sold prime mortgage loans and bought "triple-A-rated" collateralized debt obligations (CDOs) only because the Basel II Capital Accords established lower capital requirements for triple-A-rated securities than for prime mortgage loans. When capital requirements drop, you suddenly have more money you can spend on other things. Basel II made the ratings agencies instantly more powerful and important to a bank's competitive position than the behavior of its own underwriters. Throw in the Community Reinvestment Act, two ill-managed massive entities making markets in mortgages (Fannie and Freddie), and the Federal Reserve - a government-created private banking cartel - and you have a government-led financial disaster. There's plenty of blame to go around, I know. But how anyone could miss the massive role of the misguided, heavy-handed regulation is beyond me. Everyone who ought to know better - from hedge-fund managers to our elected representatives - says we need more regulation, not less. Isn't that curious? The solution is never less regulation, and the fault is never too much regulation. If I were more paranoid, I'd cry conspiracy.
Gary Edwards

Possible Constitutional Amendments in the event of an Article V Convention of States - ... - 0 views

  • NUMBER ONE: "Section One:   The Constitution of the United States shall be read and interpreted literally.   No words or phrases shall be changed or substituted and no part of the Constitution shall be used to expand or increase Federal Power or Authority beyond that EXPRESSLY granted and enumerated in the Constitution.   The language of the Constitution shall be interpreted according to the definition of words at the time of their inclusion in the Constitution. Section Two:    Congress shall have, by two thirds vote of both the House of Representatives and the Senate, the power to override individual rulings of the Supreme Court of the United States and/or subordinate Federal Courts.   The President shall not have veto authority over Congressional overrides of Federal Court decisions."
  • NUMBER TWO: "Section One:    No person shall be elected to Congress more than once unless serving in Congress at the time of the ratification of this amendment, in which case members of Congress shall be eligible for re-election to their respective seats one time. Section Two:     In the event the Seventeenth Amendment to the Constitution of the United States is repealed members of the Senate of the United States shall serve at the pleasure and discretion of the Legislature of their respective State. Section Three:  Neither Congress, the President, nor any Federal Court shall make any law, rule, regulation, or order that does not apply equally to themselves and all citizens of the United States.   Nor shall Congress, the President, or any Federal Court cause or allow any law, rule, regulation, or order to be made by any agent or agency of the Federal Government that does not apply equally to themselves and all citizens of the United States.
  • Section Four:    Neither Congress nor the President shall receive any publically-funded retirement or benefit beyond appropriate pay not available to all citizens of the United States. Section Five:    Section Four shall not apply to members of Congress or Presidents, serving or retired, at the time of the ratification of this amendment. Section Six:      The President shall be subject to popular recall by his/her constituency.   Within 90 days of the ratification of this amendment Congress shall pass legislation governing the recall of the President.   In the event Congress fails to pass the required legislation within the required 90 days, the President shall be considered to have been recalled and a new election held within 60 days. Section Seven: Members of Congress shall be subject to popular recall by their respective constituencies, unless the Seventeenth Amendment to the Constitution of the United States is repealed, in which case only members of the House of Representatives shall be subject to popular recall.   Within 90 days of the ratification of this amendment each State shall pass legislation governing the recall of its Congressional Delegation.   In the event a State fails to pass the required legislation within the required 90 days, that State's Congressional Delegation shall be considered to have been recalled and new elections held within 60 days."
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  • NUMBER THREE: "Congress shall make and the President shall sign a Balanced Federal Budget every year and before the beginning of the ensuing fiscal year.   In the event Congress and the President fail to make said Balanced Federal Budget before the beginning of the ensuing fiscal year, the last Constitutionally passed and signed Federal Budget shall go into effect and shall be the Federal Budget for the entirety of the ensuing fiscal year.   Balanced shall be defined as expenditures not to exceed revenues except in time of war as declared by Congress.   Revenues shall be defined as monies received; not monies predicted, anticipated, or forecasted.   Unfunded liabilities, obligations, and/or mandates shall be included in the calculation of the Balanced Federal Budget."
  • NUMBER FOUR: "The Fourteenth, Sixteenth, and Seventeenth Amendments to the Constitution of the United States are hereby repealed.   All Federal agencies, programs, laws, rules, regulations, and/or orders created, passed, or handed down as a direct or indirect result of the Fourteenth, Sixteenth, and/or Seventeenth Amendments are hereby stricken from Law, declared null and void, and have no force of effect."
  • NUMBER FIVE: "Section One:     Only persons born of two parents, both of whom are citizens of the United States at the time of the birth of the person, shall be citizens of the United States unless naturalized under the terms and conditions of the Constitution of the United States. Section Two:      Only United States Citizens shall enjoy or receive all rights, benefits, and privileges of United States Citizenship. Section Three:   Non-citizens shall not receive, directly or indirectly, Federal or Constitutional benefits, privileges, or protections."
  • NUMBER SIX:   "The several States are hereby empowered, individually or collectively, to enforce the Constitution of the United States and Federal Law, within their respective borders, regardless of Federal resistance or objections."
  • NUMBER SEVEN:   "Section One:   The Second Amendment to the Constitution of the United States shall be interpreted to mean the FUNDAMENTAL right of individual citizens and/or groups of citizens to keep and bear arms; in their homes and/or other properties, in public and private, and on their persons. Section Two:    Non-citizens and persons convicted of a violent felony by a jury of their peers do not have this right."
  • NUMBER EIGHT: "The First Amendment to the Constitution of the United States shall not be interpreted to prohibit or restrict the peaceful, free exercise or expression of religion, in public or private, or in or on public property."
  •  
    "Possible Constitutional Amendments in the event of an Article V Convention of States Posted by Oren Long on January 12, 2015 at 3:42am in Tea PartyView Discussions ARTICLE V CONVENTION OF STATES; ARE YOU WILLING TO CHANGE THE STATUS QUO IN D.C.?   One of our astute and true conservative members of this site has drafted suggested changes to the Constitution to be proposed in an Article V, Convention of States. I know many of you have seen his postings on here about this issue. Mr. Oren Long is very knowledgeable and well educated and has honorably served our country. He has put a tremendous amount of time and thought into ways to, in his words, "armor and reinforce" the Constitution and return it to its Original Intent, as envisioned by the Founders. Therefore, because I agree with every one of his suggested changes, I am publishing it for him, with his permission. I truly hope that we, as a group, as conservatives and as a people who believe that our country is heading toward disaster, because of the course we are on, I fully endorse his recommended suggestions. I believe that we must take any and every course of action we can to "stop the madness" It is quite long, so PLEASE take the time to read each and every one of them. I am sure that some or many, may have suggestions to this document and they are welcome and open to discussion. If you agree with this, please call your State elected officials and urge them to get on board with an Article V Convention of States. To review or obtain more information of this process, please visit one of these sites:    http://www.conventionofstates.com/           http://www.cosaction.com/              To Whom It May Concern, The following is neither sanctioned by nor proposed by the Article V Convention of States Project.   Rather, it is entirely my work as a volunteer for the Convention of States Project.   To give you an overview of the kinds of amendments that may or may not be consid
Gary Edwards

Sheriff…Time to arrest members of Congress! | Scanned Retina Blog - 0 views

  • Title 26, USC, is a private law that applies to “U.S. corporate ‘citizens’”, all employees of the corporation identified at 28 USC, section 3002.
    • Gary Edwards
       
      There is no explanation or quote to explain Title 26 and 28 USC, section 3002!  At the least we should be provided with a link here.
  • When the Sheriff seizes property from a Citizen under the non-authority of the IRS agent, the Sheriff has committed a Second Degree Felony, Conversion of Property.
  • Tyranny is defined as:
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  • Dominance through threat of punishment and violence, oppressive rule, abusive government, cruelty and injustice. What better definition than this fits the abusive IRS.
  • Title 12, USC
  • The Federal Reserve Notes in use are mere evidence of a debt.
  • The legal definition of “dollar” is “a gold or silver coin of a specific weight and with specific markings
  • The Federal Reserve Banking system is a private cartel that has usurped the authority of the Congress to coin Money.
  • Article I, section 8, we find that only Congress was given the authority “To coin money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”.
  • The Federal Reserve Act is a “private law” passed by four Congressmen after the Congressional session closed in December of 1913.
  • The “Killing Blow”, the coup de grace[pronounced gra] was delivered upon the American People by Franklin D. Roosevelt in 1933 by removing the Gold Standard from the American economy.  FDR assisted the FRB in heisting the gold supply from this country right out from under our noses. 
  • If you still refuse to pay, the IRS will file a document called a “Notice of Federal Tax Lien” in the local County Clerk’s office.
  • a “Notice” is not the “Lien” itself. The “Lien” is a totally separate and distinct document from the “Notice”.
  • The County Clerk, through abysmal ignorance files the “Notice of Federal Tax Lien” as if it was an actual “Lien”. These are two separate and distinct documents. The County Clerk never requests the actual “Lien” from the IRS agent.
  • The Seventh Amendment of the Bill of Rights of this Constitution for the united States of America guarantees you the Right of Trial by Jury in any controversy where the amount shall exceed twenty dollars.
  • You have never owed any money to the IRS. The IRS is simply the enforcer, the debt collector for the Federal Reserve Banking System. However, because you are using a private credit system, wherein the medium of exchange are fancy pieces of paper called Federal Reserve Notes, you owe the Federal Reserve Bank a “user fee”.
  • All the current paycheck garnishments in the entire country could be stopped by having your employer request the above mentioned documents, to wit:
  • A copy of the Driver’s License of the IRS agent A copy of the “Pocket Commission” showing the authority of the IRS agent A copy of the assessment shown on form 23C against the American Citizen A copy of the “Abstract of the Court Judgment” that verifies that you had a trial by jury.
  • As Sheriff of San Miguel County, I will provide educational classes to the County Clerk and the employers who are currently garnishing wages and paychecks to identify areas where they may have broken the law and unwittingly stolen their employees Federal Reserve Notes and thus committed “Conversion of Property”, a second degree felony. Furthermore, I will work closely with the County Clerk through education and knowledge so that the Clerk can stop breaking the law and committing financial terrorism against the Citizens of San Miguel County.
  • When the Citizens of San Miguel County elect me as their new Sheriff in town, I will ban the IRS from San Miguel County, and if I catch an IRS agent within the boundaries of the county, without my permission, I will arrest them for TRESPASSING.
  • In the 1950’s, with the stroke of the pen, the BIR was transformed into the current notorious IRS and brought onto the 50 united States.
  • The IRS is formerly the Bureau of Internal Revenue (BIR) situated in and with authority only in the Philippine Islands (Trust Fund # 61), and moved into Puerto Rico (Trust Fund # 62).
  • Here it is in a nutshell. The IRS is a private, debt collection agency for the private banking system known as the Federal Reserve Bank. The IRS is not a government agency. I repeat, the IRS is not a government agency. Never has been, never will be.
  • This was done without any Congressional authority whatsoever.
  • the IRS is the “Private, debt collection agency for the private banking system known as the Federal Reserve Banks”.
  • Title 26, Internal Revenue Code, is the “Debt Collection Manual” for the IRS.  This manual has nothing with “Constitutitonal Rights”.
  • The IRS does not collect an “income tax”.  The IRS is simply collecting a user fee due to the Federal Reserve Banks because we, Americans, are using a private credit systeem.
  • Title 26, United States Code, is “non-positive” law, which means that no American Citizen is subject to it.  However, all “U.S. citizens” are subject to it.  In order to understand “U.S. citizen” you must go to 28 USC, section 3002.
  • Most American Citizens have voluntarily given up their Sovereignty in exchange for “immunities and privileges” of the 14th Amendment.
  •  
    On accessing federal law, two sites to bookmark: Legal Information Institute, Cornell University, http://www.law.cornell.edu/lii/get_the_law Justia.com, http://www.justia.com/ A further resource, the Jureeka extension for Chrome and Firefox will automatically link legal citations in your brower's display to the corresponding web pages on the LII site. http://www.law.cornell.edu/jureeka/download/
Gary Edwards

Banksters - William Black tells the real truth - YouTube - 0 views

  •  
    Savings & Loan crisis regulator Bill Black testifies in front of the House in 2011.  He explains the financial collapse of 2008, the role of subprime and liar's loans, and the incredible fraud running rampant through the Bankster industry.  Lehman Brothers alone was responsible for near 80% of the fraudulent liar loan mortgage security packages sold throughout the world.  Black lays much of the blame on the Federal Reserve, the SEC, and three individuals: Greenspan, Bernanke, and Timothy Geitner (NY Federal Reserve).  He compares how regulators with limited authority were able to contain and minimise the Savings and Loan fraud problem, with the near total lack of effort by the Federal Reserve, FDIC and SEC regulators.  Extrordinary testimony.  And Congress, the Justice Department, the Federal rEserve, the SEC, the FDIC and all the other elite regulators continue to do NOTHING!
Gary Edwards

States negotiating immunity for banks over foreclosures - 0 views

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    Thanks to Marbux.  Seems like nothing will stop the Banksters from seizing it all.  I think i've previously posted that when i was with Virtual Realty (VRi), we were forever trying to crack into the MERS electronic database.  Wow did the Banksters screw this one up.  Now only their corrupt sycophants in Congress and the Coursts can save them.  Not even the lap dog media will touch this. excerpt: A coalition of all 50 states' attorneys general has been negotiating settlements with five of the biggest U.S. banks that would include payment of up to $25 billion in penalties and commitments to follow new rules. In exchange, the banks would get immunity from civil lawsuits by the states, as well as similar guarantees by the Justice Department and Department of Housing and Urban Development, which have participated in the talks. State and federal officials declined to say if any form of immunity from criminal prosecution also is under discussion. The banks involved in the talks are Bank of America, Wells Fargo, CitiGroup, JPMorgan Chase and Ally Financial. REUTERS REPORT PROMPTS LETTER Reuters reported Monday that major banks and other loan servicers have continued to file questionable documents in foreclosure cases. These include false mortgage assignments, and promissory notes with suspect or missing "endorsements," which prove ownership. The Reuters report also showed continued "robo-signing," in which lenders' employees or outside contractors churn out reams of documents without fully understanding their content. The report turned up several cases involving individuals who were publicly identified as robo-signers months ago. Reuters found that such activity has continued even after 14 major mortgage lenders signed settlements with federal bank regulators promising to halt such practices and give remediation to some homeowners who were harmed. In response to these disclosures, Sen. Robert Menendez (D-NJ), chairman of the Senate Subcommittee on Housing, Trans
Gary Edwards

Jim Kunstler's 2014 Forecast - Burning Down The House | Zero Hedge - 0 views

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    Incredible must read analysis. Take away: the world is going to go "medevil". It's the only way out of this mess. Since the zero hedge layout is so bad, i'm going to post as much of the article as Diigo will allow: Jim Kunstler's 2014 Forecast - Burning Down The House Submitted by Tyler Durden on 01/06/2014 19:36 -0500 Submitted by James H. Kunstler of Kunstler.com , Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It's like being buried alive in Jell-O. It's embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war. Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical "recovery" and the "shale gas miracle" on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations. Life in the USA is like living in a broken-down, cob-jobbed, vermin-infested house that needs to be gutted, disinfected, and rebuilt - with the hope that it might come out of the restoration process retaining the better qualities of our heritage.
Gary Edwards

ESR | February 20, 2012 | The Federal Reserve rip-off - 0 views

  •  
    Ron Paul racks up another near win, as conservative writer Alan Caruba smells the coffee and starts paying attention to the criminal enterprise known as the Federal Reserve Bankster Cartel.  It's about time.  But sadly there are too few conservatives paying attention to the money.  Sadly, conservatives choose to wallow in 1980 political issues where conservative social values and national security - military buildup were the concerns of the day. The truth is that it's always the money.  Follow the money!!  And all things will become clear.  Including how to get America back on track. excerpt: Anyone taking notice of Obama's latest budget has to conclude that his mission is to crash the nation's economy and turn America into a Socialist worker's paradise. The only problem is that Socialism has been a dismal failure everywhere it has been tried. One only has to look at the collapse of the Soviet Union for confirmation of that, the Chinese abandonment of Communist economic theory, and Obama's odd notion that a nation can spend itself out of ever-increasing debt. I am not a fan of Paul's isolationism, but he is absolutely right about getting rid of the Federal Reserve. Established in 1913, the same year income taxes were instituted, the Reserve is not part of the federal government. It is, in fact, privately owned by a consortium of banks and that might include foreign banks as well. In a remarkable essay, "10 Things That Every American Should Know About The Federal Reserve" by Michael T. Snyder, it is clear that the Constitution intended to have the U.S. Treasury to be soley responsible to "coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures." Synder points out that the Federal Reserve System (the Fed) is a privately owned banking cartel and one granted the right to create money out of thin air. It is, says Synder "a perpetual debt machine because "whenever more money is created, more debt is creat
Gary Edwards

FRC Blog » More on the Obama Regulation Tsunami (and Gibson Guitars) - 0 views

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    Good collection of links!  excerpt:  According to an editorial in today's Wall Street Journal (behind its pay firewall), Speaker Boehner asked the administration for a list of rules it had in the works with potential costs exceeding one billion dollars per year.  The administration responded providing a list of seven rulemakings - four from EPA and three from the Department of Transportation. Speaker Boehner's overarching point was that the "economy cannot withstand the barrage of major new federal regulations planned by the administration."  Of course, the Obamacare and financial industry regulations are also on the drawing board somewhere. Mark Levin had an excellent commentary on our state affairs at the beginning of his 8/30 broadcast.  He believes that we no longer have a "representative republic."  This condition exists in large measure, Levin argues, due to unchecked regulation.  He also thinks that we now have an "Imperial Presidency." That said, Levin later gave a boldface example. Listen to the absolutely chilling interview Levin conducts with the CEO of Gibson Guitar who was raided on 8/24/11 by federal agents. (Start at minute 92:00.)  Here is John Hayward's Human Events background article.  The federal government claims that Gibson is illegally importing wood to make its guitars from India and Madagascar.  Gibson claims that officials from those countries have certified the legality of these exports from their nations.  Additionally, Gibson's competitors apparently use the same woods from the same sources and have not been raided.  Only time will tell how this will turn out, but this iconic company may not be able to survive the legal costs of fighting a criminal investigation while its productive activities are interrupted.
Gary Edwards

The Feds Criminalize Ordinary Life - 0 views

  • Ordinary life should not be treated as a criminal conspiracy.
  • Former U.S. attorney generals Ed Meese and Richard Thornburgh asked Congress last winter merely to ensure that any bills carrying criminal penalties be referred to the Judiciary Committee for review.
  • To their great discredit, the House GOP leadership failed to adopt such a rule.
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  • In truth, Congress should do far more.
  • It should undertake a comprehensive review of the federal criminal code – and perform some radical liposuction on it.
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    Looks like the issue of Civil Liberties and the Obama Gestapo Government are getting traction in the main stream media.  So far the incredible increase in Obammunism's crushing Federal Regulations has been focused on the economic destruction caused.  The flip side of the Obammunism coin is that of Civil Liberties and the 10th Amendment getting similarly crushed. excerpt: Finally, some front-page attention to a major, and frightening, American problem! Tuesday's Wall Street Journal featured an in-depth look at how federal laws increasingly apply criminal penalties for violations involving no mens rea, roughly translated as a "guilty mind." The stricture against criminal penalties for unwitting violations is an age-old, bedrock legal principle. Alas, in today's dangerously armed, bureaucratic super-state, ancient legal principles go by the wayside when politicians pretend to be "tough on crime" and when officious civil "servants" indulge their fetishes for power. U.S. governments at every level these days are prone to "overcriminalization," which means turning ordinary activity into violations of the law, turning what should be civil violations into criminal ones, and applying penalties far harsher than should be warranted. On the mens rea front, the Journal explains: "In recent decades, Congress has repeatedly crafted laws that weaken or disregard the notion of criminal intent. Today not only are there thousands more criminal laws than before, but it is easier to fall afoul of them…. Today, there are an estimated 4,500 crimes in federal statutes, plus thousands more embedded in federal regulations."
Paul Merrell

Big Pharma Accused Of Illegal Price-Fixing, What You're Not Being Told - 0 views

  • A lawsuit filed Thursday in the U.S. District Court for the District of Connecticut alleges Heritage Pharmaceuticals, EpiPen-maker Mylan NV, and others conspired to manipulate U.S. drug prices. The suit was filed on behalf of the states of Connecticut, Delaware, Florida, Hawaii, Idaho, Iowa, Kansas, and at least 12 others. Naming Heritage Pharmaceuticals Inc. as the “ringleader” of the alleged conspiracy, the suit claims the prices of doxycycline hyclate, an antibiotic, and glyburide, a treatment drug for diabetics, were kept artificially high due to a scheme involving Mylan, Mayne Pharma, Aurobindo Pharma, Teva Pharmaceuticals, and Citron Pharma LLC. Federal prosecutors claim the price-fixing scheme was orchestrated by executives who have left Heritage. The suit is part of an ongoing, two-year long antitrust investigation conducted by the U.S. Department of Justice. According to the New York Attorney General’s Office, former Heritage executives Jeffrey Glazer and Jason Malek conspired with others to avoid competition by “[entering] into numerous illegal conspiracies in order to unreasonably restrain trade, artificially inflate and manipulate prices and reduce competition.” By resorting to price-fixing, companies involved may have believed they would secure their market shares without presenting a major risk to one another. This alleged scheme, the suit argues, has caused “significant, lasting and ultimately harmful rippling effect in the United States healthcare system.” The 20 states named as plaintiffs in the suit claim the companies were aware of the legal ramifications of their actions and took steps to hide their intent and actions as soon as the investigation was launched.
  • Recently, Mylan was chastised for inflating the price of the EpiPen, a device used to combat life-threatening allergic reactions. As Anti-Media reported in August, news organizations “had a field day” when reports showed the price of the autoinjector had gone from $57 each in 2007 to $600 for a double package in 2016. During a hearing before Congress over the EpiPen scandal, Mylan CEO Heather Bresch called the outraged reactions to the price hike “overblown.” Adding that the price of the autoinjectors wouldn’t change anytime soon, Bresch defended the company’s decision, claiming “[Mylan]’s profit on its $609 EpiPen two-packs is about $50 per pen.” When examining Mylan’s involvement in politics since Bresch was named the company’s executive, it becomes apparent that Mylan may have had the opportunity to approach regulators from a privileged position due to the fact Sen. Joe Manchin (D-WV) is the CEO’s father. By 2010, the Food and Drug Administration (FDA) had changed federal guidelines associated with epinephrine prescriptions, allowing Mylan to change its EpiPen labels. By shifting packaging and selling twin-packs instead of single pens while marketing the devices to “anyone at risk,” Mylan widened the EpiPen market. In 2013, a congressional bill pressuring states to have stocks of EpiPens on hand was signed into law. It was conceived after a local seven-year-old died due to an allergic reaction to peanuts.
  • Mylan lobbied heavily for this bill and spent over $1 million that year alone in lobbying efforts. Due to this legislative success, up to 47 states now “require or encourage schools to stock the devices.” But as the company led the fight to introduce the EpiPen to a larger audience, it also led a legal battle to bring its competitors to their knees by influencing regulation that artificially raises costs of doing business for other companies. From our August report: “In 2009, Pfizer Inc., the world’s biggest drugmaker, and Mylan sued Teva Pharmaceutical Industries Ltd. over a patent infringement. At the time, the Israeli company was accused of using Mylan’s design without permission. But in 2012, both parties reached an agreement, and Teva was allowed to seek approval from the FDA for its epinephrine injecting device. “According to Gizmodo, Teva has failed to obtain approval from the FDA to develop affordable generic versions of the EpiPen. The company says it won’t try to go through the same process again until 2017. “The only other device that was closer to competing with Mylan’s EpiPen was Auvi-Q, and it was also driven out of the market. In 2015, the company launched a recall campaign claiming the devices could be delivering faulty dosages.”
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  • What this story shows us is that if companies conspire among themselves to keep competitors at bay, the federal government will accuse them of breaking antitrust laws. But when Congress approves increased regulation, effectively barring smaller companies from competing while creating monopolies, price-fixing is perfectly acceptable. Instead of a lawsuit against Heritage and Mylan, how about the People v. United States Congress? After all, if it weren’t for their relentless pursuit of special interest protections, companies wouldn’t have turned into the conglomerates they have become.
Paul Merrell

Opinion recap: TV indecency policy awaits next round : SCOTUSblog - 0 views

  • The federal government’s battered policy against what it considers to be “indecent” programming on television has weathered two showdowns in the Supreme Court in the past three years.  But, on Thursday, the Court impliedly posed a question: whether that Federal Communications Commission policy — if left as is — would survive a third such encounter.  The signals were not promising for the FCC. The new ruling in FCC v. Fox Television Stations, et al. (10-1293), of course, did not strike down the policy.  It nullified specific orders by the FCC enforcing its policy, and avoided the First Amendment issue altogether.  FCC thus does retain the option of going right ahead to regulate broadcasts of single uses of four-letter words and momentary glimpses of provocative nudity, as if nothing had changed.   It also has the option of reconsidering, but anything new it writes will again be tested constitutionally, so either way, there will be a third round.
  •  
    A decision today by the Supreme Court regarding the FCC's regulation of indecency in television  broadcasts is being widely misreported in mainstream media as authorizing nudity and profane language on television.  The decision actually struck down a pair of FCC decisions enforcing its regulation on grounds that the regulation as applied in those two cases was too vague to put broadcasters on notice that their particular broadcasts crossed any legally definable line. As discussed in the linked article, the decision does not prohibit the FCC from enforcing its regulation in differering situations. The FCC may continue to so or more likely will rewrite its regulation to be more explicit. The decision therefore sets the stage for a later case that might reach the First Amndement constitutional issues.  In other words, mainstream media gets it wrong again. 
Gary Edwards

The Daily Bell - Richard Ebeling on Higher Interest Rates, Collectivism and the Coming ... - 0 views

  • The "larger dysfunction," as you express it, arises out of a number of factors. The primary one, in my view, is a philosophical and psychological schizophrenia among the American people.
  • While many on "the left" ridicule the idea, there is a strong case for the idea of "American exceptionalism," meaning that the United States stands out as something unique, different and special among the nations of the world.
  • the American Founding Fathers constructed a political system in the United States based on a concept on which no other country was consciously founded:
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  • But the American Revolution and the US Constitution hailed a different conception of man, society and government.
  • n the rest of the world, and for all of human history, the presumption has been that the individual was a slave or a subject to a higher authority. It might be the tribal chief; or the "divinely ordained" monarch who presumed to rule over and control people in the name of God; or, especially after the French Revolution and the rise of modern socialism, "the nation" or "the people" who laid claim to the life and work of the individual.
  • the idea of individual rights.
  • That is, as long as the individual did not violate the equal rights of others to their life, liberty and property, each person was free to shape and guide his own future, and give meaning and value to his own life as he considered best in the pursuit of that happiness that was considered the purpose and goal of each man during his sojourn on this Earth.
  • Governments did not exist to give or bestow "rights" or "privileges" at its own discretion.
  • Governments were to secure and protect each individual's rights, which he possessed by "the nature of things."
  • The individual was presumed to own himself. He was "sovereign."
  • The real and fundamental notion of "self-government" referred to the right of each individual to rule over himself.
  • Each individual, by his nature and his reason, had a right to his life, his liberty and his honestly acquired property.
  • during the first 150 years of America's history there was virtually no Welfare State and relatively few government regulations, controls and restrictions on the choices and actions of the free citizen.
  • But for more than a century, now, an opposing conception of man, society and government has increasingly gained a hold over the ideas and attitudes of people in the US.
  • It was "imported" from Europe in the form of modern collectivism.
  • The individual was expected to see himself as belonging to something "greater" than himself. He was to sacrifice for "great national causes."
  • He was told that if life had not provided all that he desired or hoped for, it was because others had "exploited" him in some economic or social manner, and that government would redress the "injustice" through redistribution of wealth or regulation of the marketplace.
  • If he had had financial and material success, the individual should feel guilty and embarrassed by it, because, surely, if some had noticeably more, it could only be because others had been forced to live with noticeably less.
  • left on its own, free competition tends to evolve into harmful monopolies and oligopolies, with the wealthy "few" benefiting at the expense of the "many."
  • They are the crises of the Interventionist-Welfare State: the attempt to impose reactionary collectivist policies of political paternalism and redistributive plunder on a society still possessing parts of its original individualist and rights-based roots.
  • it is in the form of communism's and socialism's critique of capitalism.
  • Unregulated capitalism leads to "unearned" and "excessive" profits; unbridled markets generate the business cycle and the hardships of recessions and depressions;
  • These two conflicting conceptions of man, society and government have been and are at war here in the United States.
  • And if it cannot be gotten and guaranteed through the redistributive mechanisms of the European Union and the euro, well, maybe we should return power to our own nation-states to provide the jobs, the social "safety nets" and the financial means to pay for it through, once again, printing our own national paper currencies.
  • This is the political-philosophical bankruptcy of the West and the dead ends of the collectivist promises of the last 100 years.
  • Ludwig von Mises's book, Socialism: An Economic and Sociological Analysis, originally published in 1922, demonstrated how and why a socialist, centrally planned system was inherently unworkable.
  • The nationalization of productive property, the abolition of markets and the prohibition of all competitive exchange among the members of society would prevent the emergence and operation of a price system, without which it is impossible to know people's demands for desired goods and the relative value they place on them.
  • It also prevents the emergence of prices for the factors of production (land, labor, capital) and makes it impossible to know their opportunity costs – the value of those factors of production in alternative competing uses among entrepreneurs desiring to employ them.
  • Without such a price system the central planners are flying blind, unable to rationally know or decide how best to utilize labor, capital and resources in productively efficient ways to make the goods and services most highly valued by the consuming public.
  • Thus, Mises concluded, comprehensive socialist central planning would lead to "planned chaos."
  • And, therefore, there is no guarantee that the amount of investments undertaken and their time horizons are compatible with the available resources not also being demanded and used for more immediate consumer goods production in the society.
  • As a consequence, financial markets do not work like real markets.
  • Thus, the interventionist state leads to waste, inefficiency and misuses of resources that lower the standards of living that we all, otherwise, could have enjoyed.
  • We cannot be sure what the amount of real savings may be in the society to support real and sustainable investment and capital formation.
  • Government intervention prevents prices from "telling the truth" about the real supply and demand conditions thus leading to imbalances and distortions in the market.
  • We cannot know what the "real cost" of borrowing should be, since interest rates are not determined by actual, private sector savings and investment decisions.
  • Government production regulations, controls, restrictions and prohibitions prevent entrepreneurs from using their knowledge, ability and capital in ways that most effectively produce the goods consumers actually want and at the most cost-competitive prices possible.
  • This is why countries around the world periodically experience booms and busts, inflations and recessions − not because of some inherent instabilities or "irrationalities" in financial markets, but because of monetary central planning through central banking that does not allow market-based financial intermediation to develop and work as it could and would in a real free-market setting.
  • But in the United States and especially in Europe, government "austerity" means merely temporarily reducing the rate of increase in government spending, slowing down the rate at which new debt is accumulating and significantly raising taxes in an attempt to close the deficit gap.
  • The fundamental problem is that over the decades, the size and scope of governments in the Western world have been growing far more than the rates at which their economies have been expanding, so that the "slice" of the national economic "pie" eaten by government has been growing larger and larger, even when the "pie" in absolute terms is bigger than it was, say, 30 or 40 years ago.
  • European governments, in general, take the view that "austerity" means squeezing the private sector more through taxes and other revenue sources to avoid any noticeable and significant cuts in what government does and spends.
  • So there is "austerity" for the private sector and a mad rush for financial "safety nets" for the government and those who live off the State.
  • In reality, of course, it is the burdens of government regulation, taxation and impediments to more flexible labor and related markets that have generated the high unemployment rates and the retarded recovery from the recession.
  • Instead, the "common market" ideal has been transformed into the goal of a European Union "Super-State" to which the individual countries and their citizens would be subservient and obedient.
  • Keynesian policies offer people and politicians what they want to hear. Claiming that any sluggish business or lost jobs are due to a lack of "aggregate demand," Keynes argued that full employment and profitable business could only be reestablished and maintained through "activist" government monetary and fiscal policy – print money and run budget deficits.
  • What Britain and Europe should have as its goal is the ideal of the classical liberal free traders of the 19th century – non-intervention by governments in people's lives, at home and abroad. That is, a de-politicization of society, so people may freely work, trade and travel as they peacefully wish, with government merely the protector of people's individual rights.
  • Take the benefits away and tell people they are free to come and work to support themselves and their families. Restore more flexibility and competitiveness to labor markets and reduce taxes and business regulations.
  • Then those who come to Britain's shores will be those wanting freedom and opportunity without being a burden upon others.
  • What was needed was a change in ideas from the statist mentality to one of individual freedom and unhampered free markets.
  • In an epoch of collectivist ideas, don't be surprised if governments regulate, control, intervene and redistribute wealth.
  • The tentacle of regulations, restrictions and politically-correct social controls are spreading out in every direction from Brussels and its European-wide manipulating and mismanaging bureaucracy.
  • In the name of assuring "national prosperity," politicians could spend money to buy the votes that get them elected and reelected to government offices.
  • And every special interest group could make the case that government-spending programs that benefitted them were all reasonable and necessary to assure a fully employed and growing economy.
  • Furthermore, the Keynesian rationale for government deficit spending enabled politicians to seem to be able to offer something for nothing. They could offer, say, $100 of government spending to voters and special interest groups but the tax burden imposed in the present might only be $75, since the remainder of the money to pay for that government spending was borrowed. And that borrowed money would not have to be repaid until some indefinite time in the future by unspecific taxpayers when that "tomorrow" finally arrived.
  • instability
  • Keynes argued that the market economy's inherent
  • arose from the
  • who were subject to irrational and unpredictable waves of "optimism" and "pessimism."
  • animal spirits" of businessmen
  • Mises argued that there was nothing inherent in the market economy to bring about these swings of economic booms followed by periods of depression and unemployment.
  • If markets got out of balance with the necessity of an eventual correction in the economy to, once again, set things right, the source of this instability was government monetary policy.
  • Central banks too often followed a policy of trying to create "good times" in the economy by expanding the money supply through the banking system.
  • With new, excess funds created by the central bank available for lending, banks lower rates of interest to attract borrowers.
  • But this throws savings and investment out of balance, since the rate of interest no longer serves as a reliable indicator and signal concerning the availability of real savings in the economy in relation to those wanting to borrow funds for various investment purposes.
  • The economic crisis comes when it is discovered that all the claims on resources, capital and labor for all the attempted consumption and investment activities in the economy are greater than the actual and available amounts of such scarce resources.
  • The recession period, in Mises's view, is the necessary "correction" period when in the post-boom era, people must adapt and adjust to the newly discovered "real" supply and demand conditions in the market.
  • Any interference with the "rebalancing" of the economy by government raising taxes, imposing more regulations, or new artificial government "stimulus" activities merely makes it more difficult and time-consuming for people in the private sector to get the economy back on an even keel.
  • Friedrich A. Hayek, once observed, unemployment is not "caused" by stopping an inflation, but rather inflation induces the artificial employments that cannot be sustained and which inevitably disappear once the inflation is reined in.
  • The recession of 2008-2009 was the result of several years of central bank stimulus.
  • From 2003 to 2008, the Federal Reserve increased the money supply by about 50 percent.
  • Interest rates for much of this time, when adjusted for inflation, were either zero or negative.
  • Awash in cash, banks extended loans to virtually anyone, with no serious and usual concern about the borrower's credit-worthiness.
  • This was most notably true in the housing market, where government agencies like Fannie May and Freddie Mac were pressuring banks to make mortgage loans by promising a guarantee that they would make good on any bad home loans.
  • Since 2008-2009, the Federal Reserve has, again, turned on the monetary spigot, increasing its own portfolio by almost $3 trillion, by buying US Treasuries, US mortgages and other assets.
  • So why has there not been a complementary explosion of price inflation?
  • In some areas there has been, most clearly in the stock market and the bond market, But the reason why all that newly created money has not brought about a higher price inflation is due to the fact that a large part of all newly created money is sitting as unlent reserves in banks.
  • This is because the Federal Reserve has been paying banks a rate of interest slightly above the market interest rates to induce banks not to lend.
  • (a) general "regime uncertainty," that is, no one knows what government policy will be tomorrow; will ObamaCare be fully implemented after January 2014?;
  • Among the reasons for the sluggish jobs growth in the US are:
  • (b) what will taxes be for the rest of the current president's term in the White House
  • (c) what will the regulatory environment be like for the next three years – in 2012, the government implemented around 80,000 pages of regulations as printed in the Federal Registry;
  • (d) how will the deficit and debt problems play out between Congress and the White House and will it threaten the general financial situation in the country; an
  • (e) what wars, if any, will the government find itself involved in, in places like the Middle East?
  • China
  • is still a controlled and commanded society, with a government that works hard to try to determine what people read, see and think.
  • All these building projects have been brought into existence by a government that not only controls the money supply and manipulates interest rates but also heavy-handedly tells banks whom to specifically loan to and for what investment activities.
  • Central planning is alive and well in China, with the motives being both power and profits for those inside and outside the Communist Party having the most influence and connections in "high" places.
  • In my opinion, China is heading for a great economic crisis, resulting from a highly imbalanced and distorted economic system still guided far more by politics than sound market decision-making.
  • global financial markets in any foreseeable future. It is a money that still primarily exists to serve the political purposes of those who sit in the "inner circles" of power in Beijing.
  • One hundred years ago, in 1913, how many could have predicted that a year later a European-wide war would break out that would lead to the destruction of great European empires and set the stage for the rise of totalitarian collectivism that resulted in an even worse global war two decades later?
  • Thus, whether, at the end of the day, freedom triumphs and the future is one of liberty and prosperity is partly on each one of us.
  • Near the end of his great book, Socialism, Ludwig von Mises said:
  • "Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others. And no one can find a safe way out for himself if society is sweeping towards destruction. Therefore, everyone, in his own interest, must thrust himself vigorously into the intellectual battle. None can stand aside with unconcern; the interests of everyone hang on the result. Whether he chooses or not, every man is drawn into the great historical struggle, the decisive battle into which our epoch has plunged us . . . Whether society shall continue to evolve or where it shall decay lies . . . in the hands of man."
  • In my view, the idea of a "soft landing" is an illusion based on the idea held by central bankers, themselves, that they have the wisdom and ability to know how to "micro-manage" the all the changes and adjustments resulting from their own manipulations of the monetary aggregates. They do not have this wisdom and ability. So hold on for what is most likely to be another rocky road.
  • It was Mises's clear vision that once society has broken the relationship between value and payment, sooner or later people would not know the price of anything.
  • At this point, investment ceases and business becomes furtive and transactional.
  • People cannot plan for the future because they do not understand the reality of the present.
  • Society begins to sink.
  •  
    Incredible.  A simple explanation that explains everything.  Rchard Ebeling's "Unified Theory of Everything" is something every American can understand.  If only they would take a break from "Dancing with the Stars" and pay attention to the future of their country and the world.  It's a future where either "individual freedom", as defined by our Constitution and Declaration of Independence, will win out; or, the forces of fascist socialism / marxism will continue to roll and rule.  Incredible read!!!!
Paul Merrell

BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit - Bloomberg - 0 views

  • Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation. The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
  • Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms. “The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”
  • Moody’s Investors Service downgraded Bank of America’s long-term credit ratings Sept. 21, cutting both the holding company and the retail bank two notches apiece. The holding company fell to Baa1, the third-lowest investment-grade rank, from A2, while the retail bank declined to A2 from Aa3.
  • ...5 more annotations...
  • The Moody’s downgrade spurred some of Merrill’s partners to ask that contracts be moved to the retail unit, which has a higher credit rating, according to people familiar with the transactions. Transferring derivatives also can help the parent company minimize the collateral it must post on contracts and the potential costs to terminate trades after Moody’s decision, said a person familiar with the matter. Bank of America estimated in an August regulatory filing that a two-level downgrade by all ratings companies would have required that it post $3.3 billion in additional collateral and termination payments, based on over-the-counter derivatives and other trading agreements as of June 30. The figure doesn’t include possible collateral payments due to “variable interest entities,” which the firm is evaluating, it said in the filing.
  • Derivatives are financial instruments used to hedge risks or for speculation. They’re derived from stocks, bonds, loans, currencies and commodities, or linked to specific events such as changes in the weather or interest rates. Dodd-Frank Rules Keeping such deals separate from FDIC-insured savings has been a cornerstone of U.S. regulation for decades, including last year’s Dodd-Frank overhaul of Wall Street regulation. The legislation gave the FDIC, which liquidates failing banks, expanded powers to dismantle large financial institutions in danger of failing. The agency can borrow from the Treasury Department to finance the biggest lenders’ operations to stem bank runs. It’s required to recoup taxpayer money used during the resolution process through fees on the largest firms.
  • Bank of America’s holding company -- the parent of both the retail bank and the Merrill Lynch securities unit -- held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades. That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show.
  • Moving derivatives contracts between units of a bank holding company is limited under Section 23A of the Federal Reserve Act, which is designed to prevent a lender’s affiliates from benefiting from its federal subsidy and to protect the bank from excessive risk originating at the non-bank affiliate, said Saule T. Omarova, a law professor at the University of North Carolina at Chapel Hill School of Law. “Congress doesn’t want a bank’s FDIC insurance and access to the Fed discount window to somehow benefit an affiliate, so they created a firewall,” Omarova said. The discount window has been open to banks as the lender of last resort since 1914. As a general rule, as long as transactions involve high- quality assets and don’t exceed certain quantitative limitations, they should be allowed under the Federal Reserve Act, Omarova said.
  • In 2009, the Fed granted Section 23A exemptions to the banking arms of Ally Financial Inc., HSBC Holdings Plc, Fifth Third Bancorp, ING Groep NV, General Electric Co., Northern Trust Corp., CIT Group Inc., Morgan Stanley and Goldman Sachs Group Inc., among others, according to letters posted on the Fed’s website. The central bank terminated exemptions last year for retail-banking units of JPMorgan, Citigroup, Barclays Plc, Royal Bank of Scotland Plc and Deutsche Bank AG. The Fed also ended an exemption for Bank of America in March 2010 and in September of that year approved a new one. Section 23A “is among the most important tools that U.S. bank regulators have to protect the safety and soundness of U.S. banks,” Scott Alvarez, the Fed’s general counsel, told Congress in March 2008.
  •  
    So according to Bloomberg, JPMorgan's commercial bank was the recipient of 99 percent of JPMorgan's $79 trillion (face value of derivatives) in bad bets. So adding JPMorgan's $78 trillion or so to the $75 trillion in bad bets Bank of America unloaded on its FDIC insured subsidiary, we arrive at $153 trillion in bad bets moved by two investment banks alone under the FDIC umbrella. Meanwhile, FDIC has authority under Dodd-Frank to liquidate these insolvent banks but doesn't, despite several successful lawsuits to recover the value of toxic derivatives that they sold to smaller banks that failed (which implies that FDIC could tell JPMorgan and BoA's investment banksters that they've got to pay off the toxic assets they transferred to their commercial banks, rather than diluting the insurance for normal depositors. Problem: the two big investment banks don't have sufficient assets to absorb those losses, so the too-politically-connected-to-fail factor kicks in. Note that I have not done any legal research in regard to these issues and am basing these observations on what has been stated about legal requirements in various media articles.
Gary Edwards

The Power to Regulate Commerce Across State Lines Is Also the Power to Regulate Non-Com... - 0 views

  •  
    How does the Commerce Clause, which gives Congress the power to regulate interstate commerce, allow Congress to prohibit the decision to not purchase health insurance-something that involves no commercial transactions, much less commercial transactions across state lines, and which couldn't possibly involve interstate commerce anyway given that there's currently no way to buy insurance across state lines.  Today, Cato Chairman Robert Levy has a much clearer explanation of how the Supreme Court has ruled on Commerce Clause cases which involve neither commerce nor the crossing of state lines. In Wickard v. Filburn and Gonzales v. Raich, he explains, the gist of the Supreme Court's decisions was that "if the failure to regulate would undercut a federal regulatory regime, then [the Supreme Court is] going to permit it." But, he argues, the individual mandate is still uncharted territory; the federal government isn't merely telling individuals what they can't do, it's telling them what they must do, and what they must do is purchase a product from a private company. As I've noted frequently, the CBO has called the mandate "an unprecedented form of federal action," and Levy's analysis tracks with that assessment. I still don't think I'd put money on the Supreme Court actually striking down the mandate, but Levy's argument that they should is fairly convincing. 
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