#

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#Where does Governments Economic Intervention begin and Anti Trust

Laws Cease to exist?
The Creation of Socialized Businesses
By Earl R. Lofland

On December 4th Congress heard testimonies from the CEOs from General Motors. Ford

Chrysler as well as from the Government Accounting Office (GAO) and economists who

were attempting to obtain federal funding to assist with preventing their businesses from

going into bankruptcy courts.

Mr. Stephen A. Roell , CEO Johnson Controls (JCI) made a very sobering comment at

the hearings regarding the 'bailout of the big 3 auto manufacturers' and the impact that

America would be faced with if the Government didn’t provide them with 34 billion

dollars that would only be a temporary fix for the failing American Auto Industry.

In Mr. Roell’s statements he testified that voting against or not voting at all not to provide

assistance to the Big 3 automotive manufactures. Would result in the same outcome.

Stressing to Congress that if only one of the major auto manufacturers were to go out of

business, this would impact the entire economy drastically . Using as an example one of

the companies which JCI has recently purchased.1 the company- a minority owned

1 Auto-parts maker Johnson Controls Inc. has formed a joint venture to acquire the

interior-product assets of Plastech Engineered Products

Inchttp://online.wsj.com/article/SB121496223245121713.html?mod=dist_smartbrief
business. Plastech Engineered Products Inc 2 manufactured products for all of the

major auto makers. Including Toyota and others.

Mr. Roell also stated that JCI manufactured batteries for the big three as well as third

party sales.

Based on what is being sold as an economic crisis there is something that has been

overlooked.

Businesses will usually be resilient in times of crisis. And often times whenever there are

companies which provide a vital service or product for another business. There is

competition in purchasing that company by its competitors in order to strengthen the

economy as well as the quarterly earnings from which a small company will achieve in

the aggressive growth process of mergers and buyouts.

The Government should be limited in the operations of the private sector. Which

separates Government centralized planning from a Free economy funding through tax

payer dollars to assist business mergers. And other business operations should be

excluded.

GM, Ford and Chrysler all have been an American icon since the early 1900's. Separate

Businesses competing with each other for the consumers buying interests.

There is some history to look at on deciding what to do regarding assisting the private

sector and businesses with Tax dollars.

2 http://en.wikipedia.org/wiki/Plastech_Engineered_Products
Harley Davidson 1931-1945 an alternative way of federally assisting failing

businesses)

Indian Motorcycle Company 1931 an example of free market restructuring )

Penn Central Railroad 1970

Franklin National Bank 1974

Chrysler Corporation 1980

Airline Industry 2001

Continental Illinois National Bank and Trust Company 1984

Savings & Loan 1989

Each of these businesses at some point came to the US Government seeking assistance in

a time when the companies were failing. Concerned with massive layoffs and their

businesses folding, thus causing severe damage to the infrastructure of Americas

Economy.

Harley Davidson was established in 1903.3 Indian Motorcycle was established in 19014.

Many may not have known that DuPont’s owned major shares of the Indian Motorcycle

Company

Indian Motorcycle Company endured through a full decade of financial woes in the face

of powerful competition from Harley-Davidson, Henderson, Excelsior, and very heavy

competition resulting from the creation of the Model T Ford and other newly affordable

automobiles

Eleuthere Paul DuPont persuaded his brother Francis to merge the family's luxury car

3 http://motorcycles.suite101.com/article.cfm/harleydavidson

4 http://en.wikipedia.org/wiki/Indian_(motorcycle)
business with Indian and cease production of automobiles This was done at the start of an

almost 12-year-long national nightmare.5

The Great Depression

Harley Davidson Sustained the struggles resulting from this era while others like Indian

Motorcycle Company eventually had to close their doors.

HDI was able to sustain its business only through some restructuring strategies within the

corporation. Combined with assistance of the Federal Government. Although it was Not

through tax dollars being used through Loan Guarantees to bail them out.

The Department of Defense as well as Federal and State law enforcement agencies and

the Local Fire Companies contracted to purchase fleets of Harley Davidson Motorcycles .

Harley-Davidson designed a three-wheel Servi-Car, model in 1931 that became very

popular with police departments for traffic and parking enforcement and continued to

serve as a Harley-Davidson standard for 41 years.

World War II and the 1950s

During WWII, Harley-Davidson produced 88,000 motorcycles for the war effort,

including the horizontally opposed, two-cylinder, shaft-drive XA 750 model. (They were

never sold to the public and only 1,000 were made.) For its patriotic efforts, the Motor

Company was awarded four prestigious Army-Navy "E" awards.

Indian Motorcycle Company going through the same era

5 http://www.indianmotorcycle.com/History/HistoryHome/tabid/78/Default.aspx
This resulted with Indian Motorcycle Company relying on the business to stay afloat

through sales that was mainly through the private sector. Indian was unable to recover.

After WWII the business began downsizing more and eventually in the late 1950's they

began to close mass amounts of their dealerships and eventually in the 1960's they closed

their doors. Keeping their Name but not making motorcycles.

In the 1998 Indian again began discussing options to begin manufacturing their brand of

motorcycles.

Although they were unable to gain any momentum in sales and eventually sold the

business out and is now a Business based in England. With plans to manufacture a

motorcycle that is not the traditional V twin as they originally had designed and

manufactured. The company again closed its doors and was sold to a London based

Equity firm that now has plans to resurrect the Indian Brand Motorcycle.

Stellican LTD.

Part of the downfall of the 1999-2003 Indian Business Strategic plan was based on the

motorcycle not being driven by its own engines. Instead of in house engines Indian

decided to install aftermarket S&S engines instead in the motorcycle making it nothing

more than an aftermarket motorcycle holding the Indian Motorcycle Company name.

Resulting in low sales and interest of the consumer.

New Indian Motorcycle Company

On July 20, 2006 Indian Motorcycle Company, owned largely by Stellican Limited, a

London-based private equity firm plans to resurrect the iconic Indian Motorcycle Brand

(refer to the "July 20, 2006 - Press Release - Indian Motorcycle Company Announces

New Home"6 on the official website). New Indian has goals of producing a new Chief

6 http://indianmotorcycle.com/Dealers/GrandOpeningCelebrationPhotos/tabid/405/Default.aspx
using a modern fuel-injected 105ci V-Twin engine which they are building in-house. The

new Chief will have the classic valanced fenders. However, New Indian plans to offer

several variations of the Chief including a more modern style without the valanced

fenders. New Indian also plans on offering an accessory line for both the New Indian and

the Gilroy Indian motorcycles built from 1999 to 2003.

50 dealerships are planned to be online by end of 2011 here in the USA, 14 of which have

already been named.

The flagship store, Indian Motorcycle Charlotte, located in Charlotte, North Carolina,

held its Grand Opening on October 4th, 2008.

The second Indian dealership to open its doors in the United States is Mike Smith Indian,

located in Paduchah Kentucky The grand opening is scheduled to take place in a couple

weeks December 20th, 2008. 7

Penn Central Railroad and the 19.7 billion dollar bailout plan

In May 1970, Penn Central Railroad, then on the verge of bankruptcy, appealed to the

Federal Reserve for aid on the grounds that it provided crucial national defense

transportation services. The Nixon administration and the Federal Reserve supported

providing financial assistance to Penn Central, but Congress refused to adopt the

measure. Penn Central declared bankruptcy on June 21, 1970, which freed the

http://www.indianmotorcycle.com/Dealers/LocateAnIndianMotorcycleDealer/tabid/69/Default.aspx

http://www.indianmotorcycle.com/Portals/0/docs/Press_Releases/Indian%20Motorcycle%20Revised

%20Press%20Release%20-%20Revised%20Sept.pdf

7 http://mikesmithindian.com/
corporation from its commercial paper8 obligations. To counteract the devastating ripple

effects to the money market, the Federal Reserve Board told commercial banks it would

provide the reserves needed to allow them to meet the credit needs of their customers.

What happened after the Penn Central bailout?

In 1971, the government provided $676.3 million in loan guarantees A statutory

commitment by the federal government to pay part or all of a loan's principal and interest

to a lender or the holder of a security in case the borrower defaults. The Federal Credit

Reform Act of 1990 requires that the cost of guaranteed loans be included in the

computation of budget authority and outlays. The congressional budget resolution

includes loan guarantee totals. (Parliamentary Outreach Program, U.S. House of

Representatives)). In 1976, the federal government consolidated the still struggling Penn

Central with five other railroad companies that were also failing to form Consolidated

Rail, or Conrail. The government spent $19.7 billion, including roughly $7.7 billion for

the initial investment, to keep Conrail operating. By 1981, Conrail began to earn a profit.

The government sold Conrail in 1987 for $3.1 billion. In addition to the sale price, the

Treasury received a $579 million dividend from Conrail.

Conrail today has again been split up. Portions of their rail lines are now contracted to

Norfolk Southern and other portions of their rail service is owned by CSX

While CONRAIL still has holdings much of the rail service is operated through other rail

corporations.

8 Short-term unsecured promissory notes issued by a corporation. The maturity of commercial paper is

typically less than 270 days; the most common maturity range http://www.washingtonpost.com/wp-

srv/business/longterm/glossary/a_m/commercial_paper.htm
Nixon Administration had proposed helping the railroad through allowing the

Department of Defense underwrite $200 million in bank loans.

Although the proposal ran into severe political fire from Democrats in Congress which

resulted in the withdraw of the Administrations offer.

Philadelphia district court picked Judge John P. Fullam, 48, had been assigned to handle

the Penn Central case.

Fullam's first major task, after a mid-July hearing, was to appoint trustees to run the

railroad. The trustees had the power to float new loans to keep the line operating.

Transportation Secretary John A. Volpe warned While waiting for those loans, the

railroad may have to shut down for lack of cash to meet expenses, which included the

$20 million a week payroll for its 94,000 employees. Said Volpe: "I don't believe any of

us can say with any degree of certainty if the payroll will be met or not."

Time Magazine stated in an article printed July 6, 1970 that “Volpe may have been

exaggerating in order to gain support for an Administration bill to aid the Penn Central

and other impoverished railroads.”9 That measure would empower the Transportation

Department to underwrite up to $750 million in private loans. Volpe testified that four

and possibly more railroads would soon follow the Penn Central into filing for

bankruptcy unless federal aid was provided.

In 1971, the US Government approved $676.3 million in loan guarantees A statutory

commitment by the federal government to pay part or all of a loan's principal and interest

9 The Biggest Bankruptcy Ever Monday, Jul. 06,

1970http://www.time.com/time/magazine/article/0,9171,878372,00.html?promoid=googlep
to a lender or the holder of a security in case the borrower defaults. The Federal Credit

Reform Act of 1990 requires that the cost of guaranteed loans be included in the

computation of budget authority and outlays.10 The congressional budget resolution

includes loan guarantee totals. (Parliamentary Outreach Program, U.S. House of

Representatives)). In 1976, the federal government consolidated the still struggling Penn

Central with five other railroad companies that were also failing to form Consolidated

Rail, or Conrail. The government spent $19.7 billion, including roughly $7.7 billion for

the initial investment, to keep Conrail operating. By 1981, Conrail began to earn a profit.

The government sold Conrail in 1987 for $3.1 billion. In addition to the sale price, the

Treasury received a $579 million dividend from Conrail.11

The "K-cars" are generally credited with saving Chrysler from bankruptcy.

Chrysler Corporation petitioned the United States government in Sept 7 1979 for 1.5

billion in loan guarantees to avoid bankruptcy. At the same time former Ford Motor

Company executive Lee Iacocca became the Chief Executive Officer for Chrysler. Part of

his strategy was appearing in televised advertisements saying: "If you find a better car,

buy it."

Reluctantly The US Congress passed the "Chrysler Corporation Loan Guarantee Act of

1979" (Public Law 96-185) on December 20, 1979 (signed into law by President Jimmy

Carter January 7, 1980),12 which was a result of prodding by Chrysler workers and

dealers in every congressional district who feared the loss of their livelihoods. Again the

10 http://www.law.cornell.edu/uscode/html/uscode42/usc_sec_42_00014752----000-.html

11 http://www.propublica.org/special/bailout-aftermaths

12 http://www.presidency.ucsb.edu/ws/index.php?pid=32978http://en.wikipedia.org/wiki/Chrysler
US Government stepped up to assist further with military contracts to purchase Dodge

pickup trucks which entered military service as the Commercial Utility Cargo Vehicle M-

880 Series. This combined with innovation in manufacturing a new series of automobiles

such as the K-cars, and the concept of the minivan, Chrysler avoided bankruptcy and

slowly recovered.

By Providing Federal assistance; Are taxpayers actually Bailing out American

Companies? Or are Taxpayers assisting two companies to become one mega

corporation that will only further contribute to the demise of small business growth

and process of economic prosperity through free markets over government's

centralized planning or Economic interventionism?

What is Economic Interventionism?

Economic interventionism or central economic planning is any action taken by a

government, beyond the basic regulation of fraud and enforcement of contracts, in an

effort to affect the economy. Economic intervention has a number of objectives,

1 Promoting economic growth

2 Increasing employment

3 Raising wages

4 Raising or reducing prices on consumer products

5 Promoting equality

6 Managing the money supply and interest rates

7 Addressing market failures . The intervention may to direct, or indirect as in the case of
Indicative planning13. When this economic planning is extensive, the economy is referred

to as a planned economy14.

Economic interventionism is generally associated with the political left (socialist, left

wing liberal or green parties) which holds opinions that the outcomes of a particular

economic issue is undesirable and should be mitigated. Economic interventionism is

sometimes practiced by national conservative parties with the thinking that the free

market would be a high risk of damaging national traditions, social order, thus creating a

bigger government though giving more authority of the state itself15

13 When utilizing indicative planning, the state employs "influence, subsidies, grants,

and taxes [to affect the economy], but does not compel."

http://en.wikipedia.org/wiki/Indicative_planning

14 A planned economy is so extensively operated by the state that it controls all major

sectors of the economy and formulates all decisions about their use and about the

distribution of income, much like a communist state.

http://en.wikipedia.org/wiki/Planned_economy

15 THE SIZE AND FUNCTIONS OF GOVERNMENT AND ECONOMIC GROWTH

James Gwartney Professor of Economics and Policy Sciences at Florida State

University Robert Lawson Assistant Professor of Economics at Capital University in

Columbus, Ohio Randall Holcombe DeVoe Moore Professor of Economics at

Florida State University Prepared for the Joint Economic Committee Jim Saxton,

Chairman Joint Economic Committee April 1998

http://www.house.gov/jec/growth/function/function.pdf
In 1998 Daimler- Benz purchased Chrysler, forming DaimlerChrysler AG. Chrysler

Corporation then was legally renamed DaimlerChrysler Motors Company LLC, while its

total operations began doing business as Chrysler Group. This was initially declared to be

a merger of equals

According to the April 2007 issue of Der Spiegel , CEO Dieter Zetsche expressed a desire

to dismantle Chrysler and sell off the majority stake and at the same time keep Chrysler

"dependent" upon Mercedes-Benz after the sale.16

May 14th of the same year, DaimlerChrysler AG announced that it would sell 80.1% of

its stake in the Chrysler Group to Cerberus Capital Management, L.P. One of the

largest private equity investment firms in the United States. The firm is based in new

York City , and run by 48-year-old financier Steve Feinberg. Former U.S. Vice President

Dan Quayle has been a spokesperson and runs one of Cerberus Capital Managements

international units.

In October 2008, Cerberus and General Motors discussed an exchange of GM's 49%

stake in GMAC for Chrysler, potentially merging the two auto manufacturers These talks

did not come to fruition, and were discontinued in November 200817 Ironically in October

the Governor. Of Michigan Jennifer Granholm announced she, and 5 other governors,

sent a letter to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben

16 http://en.wikipedia.org/wiki/Chrysler#cite_note-12

17 Friday, November 7, 2008 The Detroit News GM, Cerberus end Chrysler tie-up talks David Shepardson

and Christine Tierney http://www.webcitation.org/5cciOsezV

Bernanke requesting emergency funding for the Detroit Big Three Automakers.

The same day General Motors asked the Treasury Department of the United States for

$10 billion to help restructure both GM and possible future sibling, Chrysler so that in

turn, they can become one massive company.18 The truest of examples of government's

centralized planning or Economic interventionism

Chrysler Motors LLC- General Motors and Anti Trust Laws

United States antitrust law is part of the United States Code prohibiting business from

becoming a monopoly and regulating unfair business practice The first regulations

regarding anti Trust Laws dates back to the late 19th century with the Sherman Act. And

was modified in 1914 in accordance to the Clayton Antitrust Act of 1914, October 15,

1914, ch. 323, 38 Stat. 730, codified at 15 U.S.C. § 12–27, 29 U.S.C. § 52–53

The Clayton Act made both substantive and procedural modifications to federal antitrust

law prohibiting particular types of conduct, deemed as not being in the best interest of a

competitive market..

The Clayton Antitrust Act prohibits:

• Price Discrimination between different purchasers if such discrimination

substantially lessens competition or tends to create a monopoly in any line of

commerce (Act Section 2, codified at • 15 Υ.Σ.Χ. • ♣ 13);

• Sales on the condition that (A) the buyer or lessee not deal with the competitors

of the seller or lesser (" • εξχλυσιϖε δεαλινγσ 19") or (B) the buyer also

18 http://en.wikipedia.org/wiki/Chrysler_bailout#cite_note-18

19 Exclusive dealing refers to when a retailer or wholesaler is ‘tied’ to purchase from a supplier on the
understanding that no other distributor will be appointed or receive supplies in a given area. See •
Υνιτεδ Στατεσ ϖ. Μιχροσοφτ, 253 F.3d 34 (D.C. Cir. 2001),Illinois Tool Works v. Independent
 purchase another different product ("• τψινγ") but only when these acts

substantially lessen competition (Act Section 3, codified at • 15 Υ.Σ.Χ. • ♣

14);

• M• εργερσ ανδ Αχθυισιτιονσ where the effect may substantially lessen

competition (Act Section 7, codified at • 15 Υ.Σ.Χ. • ♣ 18);

• Any person from being a • διρεχτορ of two or more competing

corporations (Act Section 8; codified at • 15 Υ.Σ.Χ. • ♣ 19).

Anti Trust Laws again were modified in 1976 with Gerald Ford signing the Hart-Scott

Rodino Antitrust Improvements Act of 197620

For thirty years or more, the United States Supreme Court defined "economic power" to

include almost any departure from perfect competition, With the Court taking measures

to recognize that the possession of a copyright or even the existence of a tie itself gave

rise to a presumption of economic power21

Antitrust laws prohibit agreements in restraint of trade, monopolization and attempted

monopolization, anticompetitive mergers and tie-in schemes, and, in some circumstances,

price discrimination in the sale of commodities.

Attempted monopolization is committed by an individual firm, when an agreement with

any other enterprise is not required . Unreasonable exclusionary practices that serve to

entrench or create monopoly power can therefore be unlawful. Allegations of predatory

Ink, 547 U.S. 28 (2006) Jefferson Parish Hospital District No. 2 v. Hyde, 466 U.S. 2 (1985) .
20 15 U.S.C. § 18a, title II

21 See Fornter Enterprises v. United States Steel, 394 U.S. 495 (1969); United States v. Lowe’s, Inc. 372

U.S. 38 (1962)
pricing by large companies can be the basis for a monopolization claim 22

It is important to note that scholars from various schools of antitrust policy have been

consistently critical of the per se rule against tying contracts. 23Some, particularly those in

the Chicago School of economic thought, argue that such contracts are generally

employed to effect otherwise lawful price discrimination.24

Robert Bork and Richard Posner helped shape the anti-trust policy changes of the 1970s

through Posner’s idea that 1960s anti-trust laws were in fact making prices higher for the

consumer rather than lower, while he viewed lower prices as the essential end goal of any

anti-trust policy. Posner and Bork's theories on anti-trust have now become the prevailing

view in academia and at the Justice Department.25 Posner was said in 2000 to have a

"godlike stature on anti-trust law

CONCLUSION

The best strategy for the Auto Industry is to readjust to the competitive global market or

face the demise of a free market enterprise and potentially be faced with the ultimate

forced breakup of the corporations in accordance to the current Anti Trust Laws which

22 The term "monopolization" refers to an offense in accordance to Section 2 of the American Sherman

Antitrust Act, passed in 1890. Section 2 states that any person "who shall monopolize . . . any part of the

trade or commerce among the several states, or with foreign nations shall be deemed guilty of a felony.

Section 2 also forbids "attempts to monopolize" and "conspiracies to monopolize.2 July 1890 , ch. 647, 26

Stat . 209, 15 US C 15 U.S.C. § 1–7

23http://money.cnn.com/magazines/fortune/fortune_archive/2000/01/10/271747/index.htm

24 http://en.wikipedia.org/wiki/Richard_Posner#cite_note-cnn1-2

25 http://en.wikipedia.org/wiki/Richard_Posner#cite_note-cnn1-2
are in place to ensure the consumer is not faced with the threats reduced choices of an

American made product

An alternative to approving 34 billion dollars, to bail out the Auto makers, (stated as only

a temporary fix, By Fall of 2009 the Big 3 would possibly be returning back to

Washington for additional funding).

There is one of two of the most likely choices that should be looked closely at being

approved.

1 Allowing the Automakers go bankrupt and with that utilizing some strategies that are

part of the free market theories. Restructure prices, wages, benefits. And even removal of

the current Chief Officers with strategist who will take a more aggressive roll with

increasing the quarterly earnings of the corporation. This will also require the

restructuring of all the auto industry businesses to readjust as well. Reflecting a

competitive market with auto manufacturers and their suppliers, which provide products

for the auto industry.

“They must eliminate the huge disparity in costs relative to foreign brands by devising

new labor agreements that align pay and benefits with those of workers at Honda,

Nissan, Toyota and other competitors. If this disparity is not dealt with, any bailout “will

only delay the inevitable.”

Management as is “must go. New faces should be recruited from unrelated industries —

from companies widely respected for excellence in marketing, innovation, creativity and

labor relations.”

Automakers should cut executive perks drastically. “Get rid of the planes, the executive
dining rooms — all the symbols that breed resentment among the hundreds of thousands

who will also be sacrificing to keep the companies afloat,” Romney writes.

Investments must be made for the future. “No more focus on quarterly earnings or the

kind of short-term stock appreciation that means quick riches for executives with options.

Manage with an eye on cash flow, balance sheets and long-term appreciation. Invest in

truly competitive products and innovative technologies — especially fuel-saving designs

— that may not arrive for years.”

Mitt Romney: Let Automakers Go Bankrupt26

2 A bailout plan where the US Government and taxpayers are involved in a limited

capacity.

Similar to the bail out plans that are restructured by the lending companies which have

already been approved for bailout funding from the government.

Though it is too little and too late to recall the Banking Industry businesses in for a re

evaluation it would have been better for the government to also critique the actions of the

banking industry more then what was done.

The Banking Industry had been given a blank crisis check without any detailed business

plans. Like the Auto makers have been required to submit.

Discrepancy with a “automotive bailout plan jeopardize the very core of American

Policy. Thus jeopardizing causing violations of existing Anti Trust Laws which regulate

mergers and monopolizing companies from the banking industry down to the business

which provide products and or services.

26 http://www.newsmax.com/insidecover/Romney_detroit_bankrupt/2008/11/19/152984.html
The Bailout also jeopardizes the establishment itself in delving into a policy that would

be more likely to take place in China or another communistic country instead of a country

which was established on- among other issues free enterprise. The government becoming

responsible for “tying” products into one large “Mega-corporation” Or, taking part in

monopolizing corporations thus resulting in contributing to violations of Anti Trust Laws

of these same businesses which are seeking federal assistance. Chevrolet-Buick-Pontiac-

Chrysler-Dodge all one corporation. Creating the demise of small business. Therefore

Wal-Mart’s’, Sears J.C. Penny’s. AT&T, Microsoft. IBM and other ‘Mega-corporations’

would then be able to have more control over manipulation of the GDP and the ultimate

destruction of individuals right for “Life Liberty and the pursuit of Happiness” of

individuals and small businesses.

The phrase “pursuit of Life Liberty and the pursuit of Happiness” was first

established in the writings of John Locke,29 August 1632 – 28 October 1704) who was

an English philosopher expressing a similar concept of "life, liberty, and estate

(property)”. Locke said that “no one ought to harm another in his life, liberty, or

possessions, George Mason IV (December 11, 1725 – October 7, 1792) a United States

Patriot- Statesman and delegate from Virginia to the U.S. Constitutional Convention.

Along with James Madison is called the "Father of the Bill of Rights".

In the Virginia Declaration of Rights27 it again states: “That all men are by nature

equally free and independent and have certain inherent rights,... namely the enjoyment of

life and liberty, with the means of acquiring and possessing property, and pursuing and

obtaining happiness and safety.” This document was approved in Virginia just days

before the Second Continental Congress met and proves influenced Thomas Jefferson in

27 http://www.constitution.org/bcp/virg_dor.htm
writing of the Declaration of Independence.

Butchers' Union Co. v. Crescent City Co.28, considered Jefferson's phrase to refer to one's

economic vocation of choice rather than the just the search for emotional fulfillment,

although one may be predicated on the other. U.S. Supreme Court Associate Justice

Stephen Johnson Field concurred to Associate Justice Samuel Freeman Millers’ opinion

stating:

Among these inalienable rights, as proclaimed in that great document, is the right of

men to pursue their happiness, by which is meant the right to pursue any lawful

business or vocation, in any manner not inconsistent with the equal rights of others,

which may increase their prosperity or develop their faculties, so as to give to them

their highest enjoyment."

Justice Field was also a vocal proponent of the substantive due process theory that

protected property from regulations under the 14th Amendment --as illustrated in his

dissents to the Slaughterhouse Cases29.

In Munn v. Illinois.30 along with the Slaughterhouse Cases, Field's views were eventually

adopted by the court's majority, Although not until after his death. Justice Johnson also

helped end income tax 31(Pollock v. Farmers' Loan and Trust Company), where upon
28 Butchers' Union Co. v. Crescent City Co., 111 U.S. 746 (1884),

29 Slaughterhouse Cases: 83 U.S. 36, at 67 (1873Slaughterhouse Cases: 83 U.S. 36, 73-74 (1873)

30 Munn v. Illinois, 94 U.S. 113 (1876)

31 Pollock v. Farmers' Loan & Trust Company, 157 U.S. 429,[1] aff'd on reh'g, 158 U.S. 601[2] (1895)

was an important Supreme Court of the United States case in which the court ruled that the unapportioned

income taxes on interest, dividends and rents imposed by the Income Tax Act of 1894 were, in effect, direct
until 1909 32 the United States did not collect taxes-until congress enacted the Sixteenth
33
Amendment

The resolution proposing the Sixteenth Amendment was passed by the Sixty-first

Congress and submitted to legislatures of the several states on July 12, 1909. The

strongest support for the income tax was from the western states, where the strongest

opposition were from northeastern states. The governor of New York, Charles Evans

Hughes, who later became a Supreme Court justice, opposed the income tax amendment

based on the vagueness and the risks of the courts deciding that the phrase "from

whatever source derived" implied that passage would allow the federal government the

power to tax state and municipal bonds and thus excessively centralize government

power.

The presidential election of 1912 was contested between three advocates of an income

tax. On February 25, 1913, the Secretary of State Philander Knox proclaimed that the

amendment had been ratified by the necessary three-fourths of the states, and thus had

become part of the Constitution. An income tax, the Revenue Act of 1913 was shortly

passed by the Congress.

Chapter II

History of American Politics in Corporate America

1909-2009."

"So who the hell cares? There wouldn't be a United States if it wasn't for a bunch of

taxes, and were unconstitutional because they violated the rule that direct taxes be apportioned.

32 http://www.geocities.com/erl16169/federalincometaxation.html

33 The Congress shall have power to lay and collect taxes on incomes, from whatever source derived,

without apportionment among the several States, and without regard to any census or enumeration.
radicals. I once heard of a radical named George Washington. As a matter of fact from

what I read he was an extremist--a goddam revolutionist!"

- Major General Smedly Butler (Ret) USMC

To change the course of the future past mistakes and knowledge and understanding of

history is crucial.

A US Representative had two attempts made on his life after charging the Federal

Reserve, the US Secretary of Treasury and the Board of Governors of Treason and,

demanded an action of impeachment to begin against Herbert Hoover.

The Secret Service:

Most people know the Secret Service are the guards for the US President.

Until March 1, 2003, the Service was part of the United States Department of Treasury 34

Although the Secret Service is now Homeland Security chartered under the Department

of Treasury. In charge of protecting the national treasury of the United States of America.

In 1963 there was a battle of what the National Treasury should be based upon.

The Federal Reserve or the United States to return back to the ‘Silver and Gold

Standard’

(Google executive order 1110 signed by President John F. Kennedy June 1963, Just

months before he was assasinated in Dallas, TX).

Also, a note to remember: A Republican by the name of C. Douglas Dillon was Secretary

34 http://www.secretservice.gov/history.shtml
of the Treasury, 1961-65 nominated by John F. Kennedy).

1913 Woodrow Wilson Signed into the law the Federal Reserve Act.

At that time; William Gibbs McAdoo, Jr was the Secretary of the US Treasury

Department and also the first Chairman of the Federal Reserve Board.

McAdoo kept the U.S. on the Gold Standard. He ordered the closing of the New York

Stock Exchange for an unprecedented four months to prevent Europeans from selling

American securities and exchanging the proceeds for dollars, and then gold. averted an

immediate panic and collapse of the American financial and stock markets..

Andrew William Mellon Secretary of the Treasury from March 4, 1921 until February

12, 1932.

Mellon became unpopular with the onset of the Great Depression In part due to refusing

to lend cash to banks (taking loans and other investments as collateral), and by refusing to

put more cash in circulation.

October 1929. The United States was plunged into an economic disaster of profound

proportions. Many blamed the crisis on the fluctuating price of gold, which directly

affected the U.S. dollar because it was pegged to the value of gold.

Although the drastic fluctuations was not nearly as drastic as would be seen 80 years
later. Only during the Great Depression did Franklin D. Roosevelt decide to raise the

gold standard from about $20 to $35 per ounce which in 1873 was originally set at was

set at 20.67 dollars to 1 troy ounce.

Even with the value of the US Dollar pegged to the Value of Gold. During the
Nixon Administration eliminated the fixed gold price in 1971 which will be discussed

later on.

Mr. Mellon will be brought up again later as you read on.

Ogden Livingston Mills was appointed as Undersecretary of the Treasury by President

Calvin Coolidge, serving under Secretary Andrew W. Mellon. In this capacity he served

from 1927 until 1932

In 1932 Ogden Lingston Mills was appointed Secretary of the Treasury by Herbert

Hoover following Mellon's resignation to serve as U.S. Ambassador to the Court of St.

James. Mills served until March 3, 1933. (February 12, 1932 – March 3. 1933). Mills was

a strong opponent against Franklin D. Roosevelt's New Deal policies.

Mr Ogden Livingston Mills is another person of interest as you read on

Anti-New Deal economists Milton Friedman and Anna Schwartz said, "The 'cure' came

close to being worse than the disease." 35To avoid future "cures" the Congress created the

Federal Deposit Insurance Corporation (FDIC)

All this was during the era of Franklin D. Roosevelt.

Along with the new Deal FDR Issued Executive Order 610236, forbidding the Hoarding

of Gold Coin, Gold Bullion, and Gold Certificates." requiring all persons to deliver on or

before May 1, 1933 all gold coin, gold bullion, and gold certificates owned by them to

35 http://delong.typepad.com/pdf/20070308_108-115.delong.FINAL.pdfJ. Bradford Delong Right from the

Start?What Milton Friedman can teach progressives.Milton Friedman: a biography By Lanny Ebenstein •
Palgrave
36 http://www.presidency.ucsb.edu/ws/index.php?pid=14611 Executive Order 6102 - Requiring Gold Coin,
Gold Bullion and Gold Certificates to Be Delivered to the Government
April 5, 1933
the Federal Reserve.

Executive Order 6102 is important as you are shown the disease of a nation.

In 1873: United States adoption of a gold standard de facto was set at 20.67 dollars to

1 troy ounce (31.1 g) gold. The price of gold was relatively unchanged from 1873-1933.

In March 9, 1933, the Franklin D. Roosevelt administration also Amended the Trading

With the Enemy Act of October 6, 191737, where upon it was enacted a violation of the

executive order 6102 (Id) was punishable by fine up to $10,000 ($166,640 if adjusted for

inflation as of 2008) or up to ten years in prison, or both. This forced immediate sale of

gold to the Federal Reserve at the government set price of $20.67 per troy ounce,

Executive Order 6102 is often referred to as the Gold Confiscation of 1933.

IMPORTANT: All financial industry issues up to 1933 are important to follow.

With special emphasis on 1913 and the Federal Reserve Act and 1917 when Trading

with the Enemy Act was initially passed into law.

Clarence Dillon was an American financier, and namesake of Dillon, Read & Co., an

investment bank. Father of C. Douglas Dillon Vice President of Dillon Read &

Company and later became Secretary of the Treasury, (1961-65) born in Geneva,

Switzerland in 1909

Dillon Read & Company will be brought up again

Prescott Sheldon Bush The Grand father of George W. Bush was born in Columbus,

Ohio,15 May, 1895

37 http://www.law.cornell.edu/uscode/12/95a.html12 USC Ch. 2 , IV§ 95a

During the First World War, Clarence Dillion, a senior figure at the War Industries

Board, (WIB) arranged for Bush, to become chief of the Ordnance Small Arms and

Ammunition Section of the WIB.

Prescott S. Bush attended Yale University in 1913 and became a member of the Skull

and Bones Secret Society. A fellow member was E. Roland Harriman, the younger

brother of W. Averell Harriman

In 1919 Prescott Bush was introduced to George Herbert Walker by Prescott’s Friend

W. Averell Harriman. in August, 1921. Later Prescott Bush married George Herbert

Walker's daughter, Dorothy. Prescot Bush was also introduced by W. Averell Harriman

to his business partner, George Herbert Walker.

All the above names are very important to remember, Most importantly are W. Averell

Harriman, George Herbert Walker. And Prescott Sheldon Bush.

In 1926, Prescott Sheldon Bush's father-in-law, appointed him vice-president of W. A.

Harriman & Company. This company had made considerable investments in Germany.

At the end of the war, the commercial steamships of Hamburg-Amerika were

confiscated by the United States government.38

In 1926 Harriman and Clarence Dillon of Dillon Read Company helped Fritz

Thyssen and Friedrich Flick to establish the German Steel Trust According to Anton

38 Office of Alien Property Custodian, Vesting Order No. 126. Signed by Leo T. Crowley,
Alien Property Custodian, executed August 28, 1942. F.R. Doc. 42-8774; Filed
September 4, 1942, 10:55 A.M.; 7 F.R. 7061 (No. 176, Sept. 5, 1942.) July 18, 1942,
Memorandum To the Executive Committee of the Office of Alien Property Custodian,
stamped CONFIDENTIAL, from the Division of Investigation and Research, Homer
Jones, Chief. Now declassified in United States National Archives, Suitland, Maryland
annex. See Record Group 131, Alien Property Custodian, investigative reports, in file box
relating to Vesting Order No. 126.
Chaitkin ; the son of Jacob Chaitkin, legal counsel and strategist for the Boycott

against Nazi Germany carried on by the American Jewish Congress in the 1930s. 39

: "The Flick-Harriman partnership was directly supervised by Prescott Bush". Dillon

Read provided two representatives to the board of the German Steel Trust and took

responsibility for its corporate banking. Prescott Bush was appointed as a director of the

Harriman Fifteen Corporation. This in turn controlled the Consolidated Silesian Steel

Corporation, that owned one-third of a complex of steel-making, coal-mining and zinc-

mining activities in Germany and Poland, (AKA German Steel Trust ).

Friedrich Flick owned the other two-thirds of the operation. Flick was a leading

financial supporter of the Nazi Party and in the 1930s donated over seven million marks

to the party. A close friend of Heinrich Himmler, Flick also gave the Schutz Staffeinel

(SS) 10,000 marks a year.40

In 1928 Fritz Thyssen ; One of the leading backers of the Nazi Party started a joint-

venture with Harriman called the Union Banking Corporation. This was used to

transfer funds between the United States and Germany. In 1931 W.A. Harriman &

Company merged with the British-American banking house Brown Brothers.41

In 1902-1912 Retired General Smedley Darlington Butler July 30, 1881 – June 21, 1940

Was stationed in Nicaragua42 where he would later state:

39 New York Times, January 10, 1934, p. 31 col. 3

40 http://www.spartacus.schoolnet.co.uk/GERflickF.htm
41 http://en.wikipedia.org/wiki/Brown_Brothers_and_Co.
42 http://en.wikipedia.org/wiki/United_States_occupation_of_Nicaragua
“I helped in the raping of half a dozen Central American republics for the benefit of

Wall Street. I helped purify Nicaragua for the International Banking House of Brown

Brothers in 1902-1912“43

Prescott Bush, along with W. Averell Harriman, E. Roland Harriman and George

Herbert Walker became managing partners in the new company, Brown Brothers

Harriman. This was to develop into the most important private banking house in

America.

In 1930, Allen Dulles (later the American Director of Central Intelligence from 1953 to

1961)44 arranged for the wealthy Czech family, the Petscheks to sell their interest in

Silesian Coal ( Consolidated Silesian Steel Corporation and Upper Silesian Coal and

Steel Company) to George Mernane who was assigned to hide the Petscheks interest.

Allen Dulles then sold the shares to the Nazi Plenipotentiary for War Economy (aka

economic minister), Hjalmar Schacht. After the sale, Allen Dulles became a director

of "Consolidated Silesian Steel Corporation"45.

From January 31, 1931 to August that same year General Smedly Butler went
across the country on a lecture circuit.

In January he Spoke to an Philadelphia Contemporary Club New Britain, Connecticut:

General Butler recounted a story told to him by journalist Cornelius Vanderbilt.

Vanderbilt who had been in a car with Benito Mussolini when they ran over and killed a

young boy who was crossing the street. Mussolini told the driver to continue driving and

that the boy's life was insignificant 'What is one life in the affairs of a State’
43 War Is A Racket Smedley Darlington Butler(July 30, 1881 – June 21, 1940), Maj Gen USMC 1898–
1931 13th Regiment Marine Expeditionary Force, China
44 http://en.wikipedia.org/wiki/Allen_Welsh_Dulles
45 http://www.economicexpert.com/a/Silesian:American:Corporation.html
Due to the strong statements Butler was making the Italian government protested

President Hoover, strongly disliked Butler, and forced Secretary of the Navy Adams to

court-martial Butler. Butler was the first general officer to be arrested since the Civil

War. Butler apologized to the Secretary of the Navy Adams where the court-martial was

canceled with only a reprimand.

In August 31, announced his retirement and set out on a lecture tour, contributing half his

earnings to Philadelphia unemployment relief.

Smedley Butler started exposing the ties of Military operations to preserve Corporate

interests before his retirement. In August 1931, Jules Archer, the author of the only book

focused on The Business Plot- a fascist plot to oust President F.D. Roosevelt.

Where he used the "racketeer for capitalism" epigram that appeared variously in his

speeches and writings thereafter. Most frequently cited was the 1935 Common Sense

article:

"So who the hell cares?" Butler shrugged. "There wouldn't be a United States if it

wasn't for a bunch of radicals. I once heard of a radical named George Washington.

As a matter of fact from what I read he was an extremist--a goddam revolutionist!" 46

June 10, 1932, Louis Thomas McFadden, US Representative from PA made a 25-

minute speech before the House of Representatives, in which he accused the Federal

Reserve of deliberately causing the Great Depression47.

46 an excerpt from: The Plot to Seize the White House Jules Archer(C)1973 Hawthorne Books, Inc. New
York, NY -----
47 http://home.hiwaay.net/~becraft/mcfadden.html
McFadden also claimed that Wall Street bankers funded the Bolshevik Revolution

through the Federal Reserve banks and the European central banks with which it

cooperated. He moved to impeach President Herbert Hoover, and also introduced a

resolution bringing conspiracy charges against the Board of Governors of the Federal

Reserve.

Wall Street Bankers during that era were, But not limited to

George Herbert Walker President of the W.A Harriman & Co. W.A. Harriman & Co.

Prescott Sheldon Bushvice-president of A. Harriman & Co.

Later, Partner-Bush became a partner of Brown Brothers Harriman & Co

W. Averell Harriman Founder W.A. Harriman & Co Harriman Brothers & Co In 1931

they merged with Brown Bros. & Co to create the highly successful Brown Brothers

Harriman & Co

E. Roland Harriman Partner & vice-president. Harriman Brothers & Co.

In 1931 they merged with Brown Bros & Co. to create the highly successful Brown

Brothers Harriman & Co.

Brown Bros. & Co.48

Brown Brothers Harriman & Co 49

Grayson Mallet-Prevost Murphy American private banker and a director of Anaconda

Copper Mining Company, Guaranty Trust Company, New York Trust Company,

48 http://en.wikipedia.org/wiki/E._Roland_Harriman
49 http://en.wikipedia.org/wiki/Brown_Brothers_Harriman
Bethlehem Steel, Goodyear Tire & Rubber, New York Railways, Fifth Avenue Coach

Co., and Chicago Motor Coach Co.50

Gerald C. MacGuire bond salesman for Grayson Mallet-Prevost Murphy

Sullivan & Cromwell LLP Partners John Foster Dulles- Later served as U.S

Secretary of State under President Dwight D. Eisenhower from 1953 to 195951

Arthur H. Dean, the lawyer-diplomat

Mr. Dean At the request of President Roosevelt, worked on the Department of Commerce

committee which created the Securities and Exchange Commission

He later served as a negotiator and adviser other Presidents: Eisenhower, Kennedy, and

Johnson 52

John Pierpont "Jack" Morgan, Jr. financier, banker

It was exposed that J.P. Morgan was Mussolini’s Banker

The House of Morgan: An American Banking Dynasty and the Rise of Modern

Finance, by Ron Chernow

The House of Morgan: An American Banking Dynasty and the Rise of Modern

Finance, by Ron Chernow, reports that JP Morgan was Mussolini's banker for over

$500,000,000 and heavily invested in fascist Japan by 1931. JP Morgan also having in

excess of $3 BILLION invested in Germany by 1931.

A Law Unto Itself: The Untold Story of the Law Firm of Sullivan and Cromwell,

50 http://en.wikipedia.org/wiki/Grayson_Mallet-Prevost_Murphy
51 http://en.wikipedia.org/wiki/John_Foster_Dulles
52 “Arthur H. Dean, Envoy to Korea Talks, Dies at 89”The New York Times Published: December 1, 1987
authors; Nancy Lisagor, Frank Ipsivs, reported John Foster Dulles and Sullivan and

Cromwell & Co law firm was invested with as much as $1.15 BILLION in Germany by

1931.

Titan : The Life of John D. Rockefeller, Sr., by Ron Chernow,: exposed the Rockefeller

"method" of business, which included secret takeovers, bribed officials, blatant

lawbreaking, industrial spying, and philosophy "the weakest must die first".

In 1933, Congressman Louis McFadden introduced House Resolution No. 158,53

Articles of impeachment for the Secretary of the Treasury, two assistant Secretaries

of the Treasury, the Board of Governors of the Federal Reserve, and the officers and

directors of its twelve regional banks.54,55

"Whereas, I charge. . .Eugene Meyer, Roy A. Young, Edmund Platt, Eugene B. Black,

Adolph Casper Miller, Charles S. Hamlin, George R. James, Andrew W. Mellon (US

Secretary of the US Treasury 1927-1932), Ogden L. Mills (US Secretary of the

Treasury 1932-1933, ) William H. Woo W. Poole, J.F.T. O'Connor, members of the

Federal Reserve Board; F. H. Curtis, J.H. Chane, R.L. Austin, George De Camp, L.B.

Williams, W.W. Hoxton, Oscar Newton, E.M. Stevens, J.S. Wood, J.N. Payton, M.L.

McClure, C.C. Walsh, Isaac B. Newton, Federal Reserve Agents, jointly and severally,

with violations of the Constitution and laws of the United States, and whereas I charge

them with having taken funds from the U.S Treasury which were not appropriated by the

53 1978 Arizona Caucus Club Congressman McFadden

on the Federal Reserve Corporation Remarks in Congress, 1934 AN ASTOUNDING EXPOSURE
54 http://home.hiwaay.net/~becraft/mcfadden.html
55 "I Impeach. . . ."By Time.com Monday, Dec. 26, 1932
http://www.time.com/time/magazine/article/0,9171,744826-1,00.html
Congress of the United States, and I charge them with having unlawfully taken over

$80,000,000,000 from the U.S. Government in the year 1928, the said unlawful taking

consisting of the unlawful creation of claims against the U.S. Treasury to the extent of

over $80,000,000,000 in the year 1928; and I charge them with similar thefts committed

in 1929, 1930, 1931, 1932 and 1933, and in years previous to 1928, amounting to billions

of dollars..."

There were two attempts on McFadden's life, a failed shooting and an apparent poisoning

that made him "violently ill" after attending a political banquet in Washington

It appears that Louis McFadden was prophetic of our own disjointed times, McFadden

summarized his outrage by saying:

“Are you going to let these thieves get off scot free? Is there one law for the looter

who drives up to the door of the United States Treasury in his limousine and

another for the United States Veterans who are sleeping on the floor of a

dilapidated house on the outskirts of Washington?”56

Reporting his death in its October 14 issue, Pelley’s Weekly 57 it “became known among

his intimates that he had suffered two [previous] attacks against his life. The first attack

came in the form of two revolver shots fired at him from ambush as he was alighting

from a cab in front of one of the Capital hotels. Fortunately both shots missed him, the

bullets burying themselves in the structure of the cab.”

Commenting on Former Congressman Louis T. McFaddens's "heart-failure sudden-death"

56 Congressional Record, June 1, 1932 to June 11, 1932, U.S. Government Printing
Office.
57 October 14 issue, Pelley’s Weekly (1936)
on Oct. 3, 1936, after a "dose" of "intestinal flu," "Pelley's Weekly" of Oct. 14 said: “Now

that this sterling American patriot has made the Passing,

it can be revealed that not long after his public utterance

against the encroaching powers of Judah, it became known

among his intimates that he had suffered two attacks

against his life. The first attack came in the form of two

revolver shots fired at him from ambush as he was alighting

from a cab in front of one of the Capital hotels.

Fortunately both shots missed him, the bullets burying

themselves in the structure of the cab.

"He became violently ill after partaking of food at a

political banquet at Washington. His life was only saved

from what was subsequently announced as a poisoning by the

presence of a physician friend at the banquet, who at once

procured a stomach pump and subjected the Congressman to

emergency treatment." Robert Edward Edmondson (Publicist-

Economist)

The Second attempt on Congressman McFadden’s ‘He became violently ill after

partaking of food at a political banquet at Washington. His life was only saved from what

was subsequently announced as a poisoning by the presence of a physician friend at the

banquet, who at once procured a stomach pump and subjected the congressman to

emergency treatment.’

It could be argued that there was a third assassination on Mr McFadden’s life which was

successful. Resulting in the deatj of very articulate critic of the Federal Reserve and the
financiers’ control of the nation. Louis McFadden was 60 years old.

(Executive Order 6102 signed on April 5, 1933)

In 1926 Prescott Bush became vice president of W. A. Harriman & Company.

In May 1933, the Harriman International Company,( became the head of a syndicate of

150 firms and individuals to conduct all exports from Hitler's Germany to the United

States. The agreement had been negotiated by John Foster Dulles and Hitler's economic

minister, Hjalmar Schacht. Dulles was the international attorney for several Nazi

enterprises and in September, 1937, he wrote to Prescott Bush about the German Atlantic

Cable Company, that owned Nazi Germany's only telegraph channel to the United States.

Prescott Bush handed Averell Harriman a copy of the March 19th 1934 edition the New

York Times. The Polish government was applying to take over Consolidated Silesian

Steel Corporation and Upper Silesian Coal and Steel Company from "German and

American interests" because of rampant "mismanagement, excessive borrowing, fictitious

bookkeeping and gambling in securities." The Polish government required the owners of

the company, which accounted for over 45% of Poland's steel production, to pay at least

its full share of back taxes. Bush and Harriman would eventually hire attorney John

Foster Dulles to help cover up any improprieties that might arise under investigative

scrutiny.58

John Foster Dulles is the older brother of Allen Welsh Dulles, Allen W. Dulles was also

a member of the Warren Commission and a former Director of the Central Intelligence

1953–61
58 George Bush: The Unauthorized Biography by Webster G. Tarpley & Anton Chaitkin
This will be important to remember for a future reference)

Sullivan & Cromwell LLP partners included John Foster Dulles and Aurther Dean the

firm benefited from doing business with the Nazi regime, and throughout 1934, Dulles

was a very public supporter of Adolf Hitler

21 March 1934: Hitler announced the "war on unemployment," emphasizing the need to

employ five million jobless Germans during the coming year 59

In July 1, 1934 Gerald MacGuire on behalf of several business owners, bankers and most

famous names of the time contacted Retired Major General Smedley Butler at his home

after making a speech at the American Legion60

" Irenee Du Pont - Right-wing chemical industrialist and founder of the American Liberty

League, the organization assigned to execute the plot.

" Grayson Murphy - Director of Goodyear, Bethlehem Steel and a group of J.P. Morgan

banks.

" William Doyle - Former state commander of the American Legion and a central plotter

of the coup.

" John Davis - Former Democratic presidential candidate and a senior attorney for J.P.

Morgan.

" Al Smith - Roosevelt's bitter political foe from New York. Smith was a former governor

of New York and a co-director of the American Liberty League.

" John J. Raskob - A high-ranking Du Pont officer and a former chairman of the

Democratic Party. In later decades, Raskob would become a "Knight of Malta," a Roman

Catholic Religious Order with a high percentage of CIA spies, including CIA Directors

59 http://en.wikipedia.org/wiki/Hjalmar_Schacht
60 THE MACGUIRE AFFAIRBy Gerard Colby http://coat.ncf.ca/our_magazine/links/53/dupont-
by_colby.html
William Casey, William Colby and John McCone.

" Robert Clark - One of Wall Street's richest bankers and stockbrokers.

" Gerald MacGuire - Bond salesman for Clark, and a former commander of the

Connecticut American Legion. MacGuire was the key recruiter to General Butler.

In 1935, Dulles closed Sullivan & Cromwell's Berlin office; later he would cite the

closing date as 1934,61 no doubt to reduce the risks of any the possibility for having

company assets seized by the US Government in accordance to the Trading With The

Enemy Act (amended 1933), Clearly an effort to clear his reputation and protect the firm

by shortening his involvement with Nazi Germany from having similar actions handed

to Sullivan & Cromwell which resulted in 1933 with friends Prescott Sheldon Bush

The Hariman Brothers and Herbert Walker Bush with the seizure of Union

Banking Corporation, Hamburg America Line

Interhandel, General Aniline & Film Corporation (GAF) ,Manfred Weiss

Steel,Metal Works, Ltd.; Erno Vincze Feinlederfabrika,General Dyestuff

Corporation. and others businesses.) 62

Friedrich "Fritz" Thyssen was imprisoned in a German Concentration camp by Hitler.

In In 1940 after resigning as Council of State in protest to the “Kristallnacht”

or Crystal Nights Campaign which began November 9–10 1938

Adolf Hitler's invasion of Poland in 1939 ended the debate about Consolidated Silesian

Steel Corporation and Upper Silesian Coal and Steel Company. The Nazis knocked

61 http://en.wikipedia.org/wiki/Sullivan_%26_Cromwell
62 Overthrow: America's Century of Regime Change from Hawaii to Iraq Stephen Kinzer
the Polish Government off Thyssen, Flick and Harriman's steel company ; Silesian Steel

Corporation and Upper Silesian Coal and Steel Company and were planning to

replace the paid workers with slave labor forces.

Originally Hitler promised Stalin they would share Poland and use Soviet prisoners as

slaves in Polish factories. Hitler's promise never actually materialized and eventually

Hitler invaded Russia.

20 October, 1942, the United States government seized the assets of the Union Banking

Corporation. The shares of the bank were owned by Prescott Bush, E. Roland Harriman,

and a couple of members of the Nazi Party . Under the Trading with the Enemy Act,

the government took over the Union Banking Corporation and the Silesian-American

Corporation , a company that had been managed by Prescott Bush and his father-in-law

George Herbert Walker.

By Oct. 26, 1942, U.S. troops were under way for North Africa. On Oct. 28, the

government issued orders seizing two Nazi front organizations run by the Bush-Harriman

bank: the Holland-American Trading Corporation and the Seamless Steel Equipment

Corporation.

(Vesting Order Number 248 October 20, 1942; F.R. Doc. 42-11568)

Thyssen was imprisoned in a German Concentration camp by Hitler. In 1934 after

resigning as councillor And remained there until 1945 and the end of World War II he

was then released from the German concentration camp, and placed under arrest By the

New German Government. Where the German Court convicted Thyssen for being a

former leader of the Nazi Party

The German Court ordered Thyssen to hand over 15 per cent of his property to provide
for the victims of Nazi persecution. Fritz Thyssen died in Buenos Aires on 8th February,

1951

Historian Anton Chaitkin recently discovered that Marty Peretz, chief personal

adviser to Al Gore, and owner and publisher of The New Republic, married the great-

niece and heir of Robert Sterling Clark, fascist protagonist of the coup plot against FDR.

Today, once again in the middle of a global financial crisis, a new coup is in progress, one

that would destroy the Presidency, the social policy that is the legacy of FDR, and the

constituency-based Democratic Party, which represents the political bull work against a

banker's dictatorship. Through deregulation, they have already ripped away many of the

fetters that Roosevelt put on the bankers' power. As Lyndon LaRouche has warned, that

coup must be defeated to defend our republic from a fate even worse than envisioned by

Morgan coup plotters back in 1933. To accomplish this, we must, as LaRouche calls for,

rally the forces to rebuild the Democratic Party in the image of the party of FDR.

The American Liberty League was funded by donations from US Steel, General Motors,

Chase Manhattan Bank, Standard Oil, Goodyear and the Dupont family, among others.

Not surprisingly, the League would later actively oppose almost every major piece of

New Deal legislation, including, but not limited too Social Security

The press was spouting junk about the "noble" efforts of some financiers that supposedly

pumped money in huge amounts into the market in October 1929 when the crash started.

In that day though it fooled no one.

So Far, we have a recount of 1909 up to 1942 with much of the discussions related to the
Great Depression apparently showing that based on the maneuvers of certain banking

industries in the era between 1909 or before up to 1929 were part of what created the

Great Depression. Through manipulations of the stock market along with some other

issues related to the transfer responsibility of the Nations wealth from the Department of

Treasury to the Federal Reserve Banks.

What we are finding with Federal Reserve Banks, they were fighting for the preservation

of power to be established and potentially grow just as the United States itself done from

1775-1891 just prior to the , whole and entirety , of the banker's monopoly of all the

currency of the United States Government. In 1893 the repeal of Sherman Silver

Purchase Act could actually be argued as the slippery slope where the transfer of power

actually began to take a foothold with the designs of the inner workings of Corporate

America and the Banking Industries manipulation into seizing the country.

The strategies were argued on the US Congress floor in some detail by Congressman

Louis McFadden who for 25 minutes in finite detail attempted to show just how corrupt

the Federal Reserve was, and what their ultimate goals would be for the next 100 years

and longer. Mr McFadden also warned of the problems that would result in such a

problem. With exampling the Feds actions as nothing less then tyrannical. Smedley

Butler spoke to the US Senate on these same issues that were transpiring. Where He was

given the inside workings of a Fascist government takeover and offered a position that

would be equal to Franklin D. Rooselvelt, and The President of the United States of

America being nothing more then a ghost title in the new governmental structure that the

Financiers and big businesses which the Retired Major General Exposed to the US
Senate.

This exposure to the “Business Plot“ Of Government Intervention in the free market

would allow not only the banking industry to control the Government It would eventually

create would be nothing less then the same form of Government that we are seeing being

experimented with today. The Universal Plan. A Socialized or Universal Insurance Plan.

The Ideals of Intervention with a Keynesian economics Theology for the Government.

As we are seen during the Great depression According to Franklin D. Roosevelt’s

Strategy of using the Keynesian economics, where the Government is to stimulate

economic growth and improve stability in the free market - through, interest rates

changing tax laws, public work projects as well as other more modern strategies such as

but not limited to deregulations of lending requirements. Indebtedness of the Government

through borrowing for the programs as well as attempting to prop up a falling system

which over the course of several decades of decay only begins to weaken the entire inner

structure of the financial market and resulting in the employment sector and gross

national product sales beginning to decline.

It is evident that looking back at the Great Depression Era that it was more then just the

New Deal that was to drive the economy back to a rebound. Unfortunately the main

driving factor was the United States of America entering into World War II, which

reversed the economy of the country. With a dire need for military equipment clothing

and other supplies for the war that was raging throughout Europe and the Pacific. Not

only to supply our own national defense but the defense for other nations whom we were
allied with.

The need for factories and the industrial force of the United States generating an actual

boost the nation actually was able to use as a form of nutrition for the economy.

The stimulus that was experimented with by Franklin D. Roosevelt was at very least a

hazard to the financial market that was only saved by enacting the FDIC through the The

Glass-Steagall Act of 1933

With Unemployment levels fluctuating drastically over the course of 1929-1941 with a

very large increase in 1936 well after the New Deal had already been in effect. Along

with the over the course of years prior the constant outsourcing of materials such as

selling scrap steel and other goods to to Germany and Japan with an unbalanced trade

agreement where more products were being sold at a considerably lower cost to the

Businesses resulted in the demise of factories being able to keep up with the competitive

market of the world.

America was faced with taking a roll that was mirrored only to the biblical times when

Essau sold his birthright to his younger brother Jacob for a bowl of Soup.

Ironically the soup lines were one of the most populated areas of the communities all

over the Nation. With Industries closing down due to the lack of being able to afford the

costs. The inability to pay for the staff, combined with the lack of sales creating the

ballon of the roaring 20s to suddenly explode. It has been argued that the cause of the

Great Depression was due to the lack of action on behalf of the President
We will now begin to examine the financial markets and the economy that was dating

from 1942-2009

So do you know how we got to that point?

Two words to compare in today’s political strategies

Transparency In Russian this would be “Glasnost”

"Restructuring", In Russian this would be called “”

If you recall just last month Former Soviet leader Mikhail Gorbachev stated that America

needed to consider perestroika.

So what is perestroika in the first place? And where was int used in the history of the

Soviet Union?

Before I reveal to you a recent perestroika, allow me to take you on a stroll through the

corridors of World history that has transpired over the last 60 some odd years ago. In

1945 The United States defeated Nazi Germany.

We were then faced with the threats and fear of a global expansionism of the USSR or

Union of the Socialist Soviet Republic..

Russia began a campaign immediately after World War II to embark on promoting the

ideologies of communism and a socialistic form of government known as Marxism and

Stalinism considered by Joseph Stalin as the best form of government with the

propaganda machine of the Socialist party indoctrinating third world countries that best

stability in economic markets And the best form of government for the world was a

socialist soviet doctrine known as communism or socialism.

On the other side of the globe, The USA was working to ensure that the ideologies held

by a democratic republic would take root, and expand the theory of free trade and

capitalism without the intervention of a government in assisting with the rise and or fall

of a free market. And yet keeping a fundamental control on mandating regulations that

will prevent a a free market from reaching a danger zone of being too big to let fail.

The US began doing a campaign of tours with our military might and funding in far away

lands that most Americans before had never even imagined of visiting.

Korea in the 1950s. And then, we sent Americas Military to Vietnam all in order to

protect the government from Communist expansion. The propaganda that come from the

Capital was this was else precedence in protecting the security of the nation and

democracy. We Then was found taking a short 90 mile cruise to Cuba, where we set up a

blockade to stop the shipment of nuclear arms from the Soviet Union into what was now

a newly converted Soviet Ally just 90 miles from the shores of the US.

This in part was the result of failed diplomacy plan with Cuba.

This continued on through each administration. Lyndon Johnson and the plot for

expansion into Indochina, Richard Nixon and his endeavors to promote democracy in

Pakistan; Then, during the Carter Administration with providing military supplies to

Saudi Arabia and the Mutawakkilite Kingdom of Yemen during their civil war against

communists and the further potential for Iraq to become part of a group of middle east

allies with the United states.

Russia began expanding operations by invading Afghanistan. Which continued on into

the Reagan administration. where the United States found another opportunity to further
the cause of promoting democratic republics in the Middle East. And in South America

The War In Afghanistan

On December 27th 1979 Osama Bin Laden began waging a war against the Marxist

People's Democratic Party of Afghanistan in a struggle to remove the Russian Military

out of that country. There lied a wonderful opportunity for the Foot hold of democracy to

take place and further expand the interests of the United States..

Funding began going to the Freedom fighters, providing arms and training for these

soldiers who were also known as the Mujahadeen- We now know many of the members

of this Muslim militant organization as al Queda. The Mujahadeen was doing their best to

get remove Russian Military out of Afghanistan. As this war waged on, the USSR

economy was beginning to have an effect on how they would continue on.

Throughout the periods mentioned, the Soviet Union maintained equal or superiority to

the United States in the areas of military numbers and technology, but this ultimately

strained the Soviet Unions economy. In contrast to the revolutionary spirit that

accompanied the birth of the Soviet Union.

Then the Soviet leader Mikhail Gorbachev decided to do something that today we are

witnessing again. Only not in Russia. We are hearing of this same strategy being

attempted in the US Economic stimulus strategies.

“Transparency“, or in Russian "Glasnost". And "Restructuring", or "Perestroika"

This was something that has a very complicated details But to keep it really easy for the

average person to understand. It involved

Economic interventionism

During 1985-1987 Mikhail Gorbachev's discussed modifying centralized planning

(Economic Interventionism) .

Prior to Mikhail Gorbachev taking control of the Soviet Union Brezhnev stagnation

Developed, This resulted in borrowing money, the decline of the ruble or rouble began to

go on a steady and speedy decline in value. And an increase in the soviet black market.

The Soviet Bank attempted to adjust this with many strategies that are often used in the

banking industry. Reducing interest rates. and increasing in lending mass amounts of

money to the smaller soviet Bloc countries for their governments to continue on with

their operations of the Socialized business operations and providing socialized medical

plans for all people. and all the other operations for which a government needs funding

for. This ultimately led to the Reforms of Gorbachev and collapse of the Soviet Union

During the Mid 1970s The Global economy began to weaken. Gas was being rationed.

the Interest rates was being lowered by the Federal Reserve having some of the names we

are hearing even today. Mr. Volkcker was all part of this failing global economy dating as

far back as 1957,

Who is Mr. Volkcer anyway?

He was not only chairman of the Federal Reserve during the Carter Administration and

the Reagan administration (August 6, 1979 – August 11, 1987) In 1952 he joined the staff

of the Federal Reserve Bank of New York as a full-time economist. He then left that
position in 1957 to become a financial economist with the Chase Manhattan Bank. In

1962 he joined the U.S. Treasury Department as director of financial analysis, and in

1963 he became deputy under-secretary for monetary affairs. Now keep in mind at this

time John F. Kennedy decided to issue an executive order. EO1110 which directed the

Department of Treasury to begin printing out 6 billion dollars in Silver Certificates. (June

1963, In Nov 1963 John F. Kennedy was assassinated in Dallas TX and America was told

by among others who collectively believed Now Arlen Spector’s Magical Bullet Theory

that we are all told hit President Kennedy Stalled in mid Air for a little over a second

turned Hit the Governor of Tx and done more acrobats then a gymnast in the Olympics!.

In 1965 Mr Volker then returned to Chase Manhattan Bank as vice president and director

of planning.

William McChesney Martin, Jr. who was also part of who

Harry Truman, Dwight Eisenhower, John F. Kennedy, Lyndon B. Johnson and Richard

Nixon

Arthur F burns who was in during the administrations of

Richard Nixon, Gerald Ford and Jimmy Carter

 Chapter III

Perpetual Circles in Economics brings us back to “Jack’

(Stimulation based on President Andrew Jackson)

(American History 1809-1909)

 Chapter IV

The Three R’s of Economics

Restructure. Revitalize Reassure

When I first began this, it was all to come to answering the questions of whether or not

GM and the Auto Makers should receive a bailout.

Sadly Before I began this the bailout plans of 700 billion was began which was also a bad

strategy through the use of borrowing money from the Federal Reserve in the hopes that

it would instill a stimulus into the economy and stop the locomotive carrying the Great

Financial Disaster of the United States.

Back in 2000 America was told of the problems of a recession that was coming and the

strategies that were introduced were a retroactive tax refund to the tax payers.
At that time Members on the US Senate Floor such as the Late Paul Wellstone and others

argued that we had just come out of debt and this would create a problem with taking

from the Government for other needs such as but not limited to education, healthcare

Border Control and the National Security At that time I personally was writing to several

of the members of the Congress. Paul Wellstone. Joe Lieberman, Joe Biden. Barbra

Boxer Robert Byrd Orin Hatch and many many others. Stating that the Economic

Growth and Tax Relief Reconciliation Act of 2001 was a bad idea basing my argument

on the same issues which were presented on the House and Senate Floor, and adding that

if we were catapulted into a crisis such as a natural disaster or an attack on our nation that

we would be in need of the billions of dollars which was planned to be given away to the

tax payer with the theory that the tax payer would put that money back into the economy

and thus boosting the industrial sector.

Without knowing that in September 11, 2001 America was witness four passenger aircraft

crashing 3 of which would hit the World Trade Center, and the Pentegon along one of the

most costly natural disasters America had faced. Hurricane Katrina. In 2005

These two alone drove the Governments needs for an extraordinary amount of funding.

That catapulted the United States from a having a surplus of about 230 billion dollars.

Though many of the Senators had taken my letters to President Bush the administration

refused to consider it as a logical strategy.

How to save the United States from another Great Depression?

First off I must stress that Government Intervention has already been established as a bad

idea. It increases the risks of not only taking a course of Tyranny, Communism, Fascism

or even a monarchial government theory. A Form of Government that the Founding

Fathers all 55 signers of the Declaration of Independence warned of if their vision was

not seen by a future group of leaders. And the People, having no rights to change would

ultimately be faced with a government 7 times worse then that which the 13 colonies

were so boldly working on breaking away from. For a reason that was nothing less then

the control of a body that was not looking at the interests of the people but of the self

interests of their own private circles of hierarchy . So Before I go further I must stress

that any “Bailouts by the US Government of the Banking or business sector should not be

considered for risks of altering the process of Free Markets to have its due course.

Anti Trust Laws being as worthless as a dollar bill that has no basis for its worth.

In the first 3 chapters you seen the topics that have led America down the courses which

were requiring what has been termed as drastic measures.

Really the measures were not so drastic as they were uncharted courses that in some ways

had never been attempted before. As well as utilizing some economic strategies that

created a division. Not only in the banking industry alone but also even in political

circles of the administrations time.

In 1933 President Franklin D. Roosevelt went nose to nose with the problem with

drafting legislation in constant bombardment to attack the problem relentlessly.

This is a very key strategy that the current legislation must spearhead.

One would be to Reinstate the Emergency Banking Act of 1933, which put the entire U.S.

banking system through an orderly bankruptcy reorganization.

Restructure the The Glass-Steagall Act of 1933

One part that would be vital is repeal the Gramm Leach Bliley Act

Repeal Depository Institutions Deregulation and Monetary Control Act of 1980

Another vital part would be to enact an executive order along the similar wording that EO

6102 Enacted by Franklin D Roosevelt where It requires all persons and Federal Reserve

Banks to deliver on or before a set date all gold coin, gold bullion, which was delivered

to the Federal Reserve in 6102 by May 1933 back to the the Department of Treasury.

Initiate a program to pay any and all outstanding debts owed by the United States

Government back to the Federal Reserve

Allowed a plan that would close down insolvent banks and reorganize and reopen those

banks strong enough to survive. Those which are holding toxic or insolvent loans would

be revised in a way that the Lenders were held able to collect certain amounts under the

restructured Glass Stegal Act and the FDIC.

Revise — Bankruptcy Act of 1841, Sess. 1, ch. 9, 5 Stat. 440 so as to allow all the

responsible parties which have so duly destroyed the economic stability of the US Dollar
to be held accountable and compensate the United States Governement through the

revised EO 6102 or though the

Reinstate and Revise the Federal Emergency Relief Act (ch. 30, 48 Stat. 55, enacted

1933-05-12).

Reinstate and revise The Sherman Silver Purchase Act

Reinstate a gold silver and or platinum standard

Take accurate accountability the amount of gifts in gold and other precious medals to

officers and agents of the United States of America so as this also is added into the

reserve of precious medals that would be as a basis for the monetary system resturing

process of the 21st century.

With further research revisit the possibility to reinstate The Coinage Act or the Mint Act

1792