Posted on 09/01/2009 5:05:45 PM PDT by STARWISE
RUSH: I want you to listen to this, Paul Kanjorski. He's a Democrat member of Congress from Pennsylvania. He was on C-SPAN's Washington Journal on January 27th.
KANJORSKI: On Thursday at about 11 o'clock in the morning --
RUSH: Stop the tape a second. Go back and recue this.
***He's talking about September the 18th here. Let me tease you even further.***
September the 18th is the day last year that the world economy almost came to an end. Don't smirk. It's true, Snerdley. That's what Kanjorski is saying. So he's talking here about Thursday, September the 18th.
KANJORSKI: On Thursday at about 11 o'clock in the morning the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States, to the tune of $550 billion was being drawn out in a matter of an hour or two.
The Treasury opened up its window to help. It pumped $105 billion in the system and quickly realized that they could not stem the tide; we were having an electronic run on the banks.
They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn't be further panic out there.
RUSH: Do you remember this?
This is the day I think that the Atlanta banks ran out of one-hundred-dollar bills. But now stop and think of this: A $550 billion withdrawal from money market funds in one-to-two hours.
I am convinced -- and there's one more sound bite to go here -- I am convinced that this is what they took to the White House and said to President Bush, "We have got a disaster, you have got to get on board with a bailout," which came later on in October, "you've got to get on board with this $700 billion, the TARP 1," all because 550 -- now, what precipitated this?
Here's the second Kanjorski sound bite.
KANJORSKI: If they had not done that, their estimation was that by two o'clock that afternoon,
***five-and-a-half trillion dollars would have been drawn out of the money market system of the United States, ****
(and( would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.
It would have been the end of our economic system and our political system as we know it. We're really no better off today than we were three months ago because we've had a decrease in the equity positions of banks because other assets are going sour by the moment.
RUSH: Now, this is January 27th, Kanjorski is talking about this, and we have to allow, since Kanjorski is a Democrat he's part of the Pelosi team, we have to allow that some of his comment here is being flavored.
When he ends up saying we're no better off today than we were three months ago, some of this is obviously oriented toward panic and getting people to go along with the bailout today, but let's leave that aside because that's traditional Democrat Party politics.
If they had not done that, if that $550 billion-dollar withdrawal in an hour or two had not been stopped, if they hadn't closed the windows, he says that five-and-a-half trillion would have been drawn out of the money market system of the United States.
Now, when I hear money market I think of savings accounts, higher interest rates than passbook savings at the old downtown building and loan where people park their money temporarily 'til they decide where to put it permanently. He says five-and-a-half trillion would have vanished from the banking system, would have collapsed the entire economy of the US and within 24 hours the world economy would have collapsed.
Now, we've gotta allow here for some exaggeration. It's amazing this was said on C-SPAN on Thursday, January 27th, and nobody picked up on it. We got it from a website called LiveLeak. They were rummaging through things, and they found this.
Now, let's assume for a second here that elements of this are true. Let's assume that there was a $550 billion run, electronic run on the banks and money market accounts in one to two hours. The question is who was doing this? Who was withdrawing all this money? And the next question is why?
That's where my mind starts exploding, and this is dangerous to have these explosions going this way.
Could it have been George Soros? Could it have been a consortium of countries -- Russia, China, Venezuela -- countries that are eager to have Barack Obama elected because they know that will make it easier for them to continue their own foreign policies in the world?
In the meantime, five-and-a-half billion dollars in one to two hours, that can probably be confirmed. The five-and-a-half trillion is speculation based on the rate at which money was coming out. We could check that the Fed stopped the trading windows, they closed the window. We do know they were pumping money into the system left and right. And remember when the Federal Reserve loaned elements, $2 trillion and we weren't told who got the money? And we still haven't been told who got the money.
We know that last fall, the Federal Reserve lent $2 trillion to somebody or a series of somebodies, and we still don't know where it went. We know last year that we had a crisis on our hands and everybody was saying if we didn't do this today the country was finished and they got Bush on board, they got Paulson on board.
Obviously this kind of news, if somebody from the Fed shows up and Bernanke and Paulson say, "Hey, we got a chance here of losing five-and-a-half trillion dollars if we don't do something," I mean that's gotta scare anybody into some sort of action to stem the tide.
RUSH: We have an AP-Obama story here that targets the date of this run on money market accounts to September 16th. It was Kanjorski on C-SPAN on January 27th, said it was Thursday the 18th. Here's the AP story:
"A money-market mutual fund that 'broke the buck' amid a rush of orders to pull out cash has begun returning an initial $26 billion to investors who had been unable to access their money for more than a month. ... On Sept. 16, the rapid sell-off of assets caused the value of fund assets to fall to 97 cents for each investor dollar put in -- the first instance in 14 years of a money-market mutual fund 'breaking the buck,' or having its per-share value fall below $1.
Reserve Management froze redemption orders. That led institutional investors to pull out cash..." I think both dates are right. September 16th, the rapid sell-off begins and "[t]hat led institutional investors to pull out cash from that fund and others, creating fears about the safety of the $3.4 trillion in assets held in money-market funds, and a new temporary government money fund guarantee program.'"
It's sort of just a casual, hey, no-big-deal kind of story from the Associated Press -- and here again is Kanjorski talking about this. Let's go back to these two sound bites, Paul Kanjorski (Democrat-Pennsylvania) on C-SPAN's Washington Journal on January 27th.
KANJORSKI: On Thursday at about 11 o'clock in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to the tune of $550 billion was like being drawn out in a matter of an hour or two. The Treasury opened up its window to help. They pumped $105 billion in the system and quickly realized that they could not stem the tide; we were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn't be further panic out there.
RUSH: By the way, I should tell you that Kanjorski's source for this is none other than Bernanke -- Ben Bernanke, the Federal Reserve -- and the Treasury secretary, Hank Paulson. They are the two figures that told members of Congress what was going on with this initial run of $550 billion, an electronic run on the banks, money market accounts, investor accounts here. He goes on to say this, if they had not stepped in to stop this, if they had not closed the window...
KANJORSKI: If they had not done that, their estimation was that by two o'clock that afternoon, $5-1/2 trillion dollars would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.
It would have been the end of our economic system and our political system as we know it. We're really no better off today than we were three months because we had a decrease in the equity positions of banks because other assets are going sour by the moment.
RUSH: So the last part, I think that's just salesmanship for doing something now to get the stimulus bill passed, although Kanjorski is among some Democrats starting to shift to the cant that more time is needed to make a correct decision this time; which I think is one of the reasons Geithner postponed his announcement to today from last week or even today.
So, you know, I have been suspicious of all this that happened last fall. It just seemed too perfectly timed. Now we know that these are not individual money market accounts like you would have had to withdraw your money. This is money invested in a mutual fund money market account. So it is quite possible somebody could have started a run on this thing and the word spread, and it did -- and the $550 billion withdrawal in one hour would panic anybody.
So there's so much to this. You know, it's always the case that there's so much more going on in all this that we don't know. The Drive-By Media, any longer, is worthless in ferreting out the truth involved in events.
They totally exist on the surface. They exist with a path of least resistance particularly with Democrats in power, because with the presumption that Democrats could abuse power or commit ethics violations just doesn't even cross the radar.
It doesn't even show up on the radar. It's not possible for Democrats to behave in that fashion, and so all this stuff goes on below the surface and we find out about it much later after the fact.
“KANJORSKI: If they had not done that, their estimation was that by two o’clock that afternoon, $5-1/2 trillion dollars would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.”
There are times for governmental intervention, and this would be one of them. This is a national defense issue.
Next in line is to track down anyone who did this on purpose, and treat them like an enemy combatant.
But how did TARP morph from this worthy purpose (which is how it was sold last fall), into social engineering such as cash for clunkers?
If you find it would you post it here?
and the Wamu shareholders got majorly screwed, myself included, but I was gambling that there would be a buy-over. Not the sweetheart deal that JP Morgan got for a song and dance.
Shit if I find it I am going to post it until the Mods ZOT me.
LOL! ok
bump for later
Oh yeah- ‘bout time. Very key. Manufactured crisis.
Of course hope it gets traction.
4 am bump! ;-)
I heard of this months ago, and there seems to be a tie in with the bearer bonds that were declared “counterfeit” being smuggled into Italy by Japanese men. Now THAT is a mystery I would like to see followed also.
Actually, he said and you heard, that he was told on 9-15.
You and I discussed this in posts 6-13 here.
Kanjorski said starting at 2:08 into the clip:
Look, I was there when the Secretary and the Chairman of the Federal Reserve came those days and talked with members of Congress about what was going on. It was about September 15th.
Here's the facts, and we don't even talk about these things. On Thursday [which would have been 9-11] at about 11 o’clock in the morning the Federal Reserve noticed a tremendous draw down of money market accounts in the United States to the tune of $550-billion was being drawn out in in a matter of an hour or two.
The Treasury opened up its window to help and pumped a $105-billion into the system, and quickly realized that they could not stem the tide. We were having an electronic run on the banks.
There was a poster, Obamageddon -- who since been banned, trying to convince us all that it happened on 9-18, not 9-11.
hey, thanks, I forgot about that thread along with forgetting the date. ( sheesh )
Thanks for remembering right.
but the stoopid people fell for it....
I have this increasingly creepy feeling that something really bad is going to happen to us in September/October. Why IS Rush bringing this up now?
Actually, the article on Rush's site is from Feb 2009. That having been said, I share your concerns that something is in the air.
BTW, if this "event" took place on 9-18 as many, which includes Rush are trying to sell, then why did Dana Perino make this statement?
Statement by Dana Perino on 9-16-09:
“The President was briefed this afternoon by his Working Group on Financial Markets. He appreciates their work to strengthen and stabilize the markets.”
-- Now why would Dana make a statement like that for no reason on 9-16, 2 days prior to the alleged 9-18 date?
Then there is this little presser by President Bush on 9-18 at 10:00 AM!
-- 10:00 AM...prior to the alleged run on the banks.
24 hours later there is another presser where he said:
...have briefed leaders on Capitol Hill on the urgent need for Congress to pass legislation...
-- Another presser 24 hours later? President Bush???
I do not think for ONE MINUTE that he would run to the cameras BEFORE he knew what the problem was and had a chance to sort it out, reign it in and develop a plan. There is NO WAY he could or would have done all that in a 24 hour period of time.
Also on 9-19 the White House posted a Just the Facts paper.
-- All this in 24 hours? Love President Bush and his team, but there is no way this was done in 24 hours!
It is my belief that the run was on 9-11!
The left isn't smart enough to pull off a 'coordinated' attack. The gravitational pull of Islamic money is like the dark matter in space. It makes up a majority of the environment but nobody can see it or figure out where it is. Everyone in D.C. takes their cash so everyone is beholden to them and is in their sway.
US Politics has always been on a see saw. To have such a strong pull to one side is the abnormality. George Soros, Arabs and others may have found an achilles heal but the overwhelming impetus is the islamic threat. It is here to stay and can't be dispelled by democratic action.
True that.
LLS
It was from Feb, but never posted here.
Maybe, but the $550 billion said to be involved is still larger than the total assets of major institutions.
Market caps for the largest US companies:
ExxonMobil $337 billion
Microsoft $220 billion
Wal-Mart $199 billion
The post today "Head Of China Sovereign Wealth Fund Openly Admits Asset Bubble Addressed By Creation Of More Bubbles" says "Lou Jiwei, who controls China's $298 billion sovereign wealth fund..."
As for pension funds, CalPERS assets are now $181 billion, down from $237 billion a year ago.
You are right, IF there was an actual $550 Billion drawdown.
Any funds removed from MM mutual funds has to be placed somewhere else. Can’t all be green paper stuffed in the mattress.
DG
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.