Call To Action - Six-Degrees-Of-Separation E-mail Campaign

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Editorial Note = The decision to implement this Six-Degrees-of-Separation E-mail Campaign was taken at our 12/14/2011 meeting even though the implementation was delayed for six weeks due to circumstances beyond our control.

Although Sec. 14 of the Federal Reserve Act permits loans to foreign banks and governments, Sec. 2A clearly permits such loans only insofar as they promote U.S. employment.

The Fed decisions to print TRillions (probably more than $10 TRillion) to bail out foreign banks/governments to promote U.S. employment is viewing the foreign banks/governments as proverbial “butterflies” whose beating wings cause a “hurricane” on the other side of the globe.

This e-mail campaign respectfully requests President Obama to prosecute the Federal Reserve Governors for their malfeasance and to insure that printing Dollars for bail outs is confined to the few U.S. banks that might face bankruptcy from defaults by European banks/governments so that our limited resources can be focused on critical domestic needs.
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johnkarls
Posts: 1668
Joined: Fri Jun 29, 2007 8:43 pm

Call To Action - Six-Degrees-Of-Separation E-mail Campaign

Post by johnkarls »

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CALL TO ACTION -- "SIX-DEGREES-OF-SEPARATION" E-MAIL CAMPAIGN = TRillions Being Printed To Bail Out Foreign Banks and Governments -- (ONLY 5 MINUTES NEEDED TO PARTICIPATE)

We take great pride in our Six-Degrees-Of-Separation E-mail campaigns to America's decision makers such as President Obama which, with only a few computer keyboard key strokes, can be sent by each of our members (1) to the decision maker, and (2) to all of the member's friends and acquaintances requesting them to do the same in an unending chain.

Accordingly, we also take great pride that each of our recommendations has been approved unanimously at one of our meetings or, at most, received only one dissent (in which case we say there was a "consensus" rather than "unanimity").

The following Six-Degrees-Of-Separation E-mail campaign to President Obama on the referenced subject was approved unanimously at our 12/14/2011 meeting [Yours Truly apologizes that he was on vacation between our Dec. 14 and Jan. 11 meetings, which is his feeble excuse for not having prepared this campaign earlier.]

If you agree with the recommended E-mail to President Obama that appears below, please --

(1) send the already-prepared e-mail to President Obama at http://www.whitehouse.gov/contact > Contact Us (upper right) > Submit Comments Online -- which will require (A) inputting your name, an e-mail address and a ZIP code, (B) selecting from the pull-down "subject" menu "economy" under "I Have A Policy Comment," and (C) pasting into the box provided the message to President Obama that appears below. [It is also recommended that you select a salutation = "Dr." from the pull-down menu before your first name and that you check the box at the end for "Contact me - a response is requested" -- both suggestions in order to maximize the chances that the message will actually be read.]

(2) send to all your friends and acquaintances an already-prepared e-mail that comprises everything below the set of asterisks that follows this paragraph -- so that, through no more than six degrees of separation to 100% of the American population, we reach everyone in a cascading chain.

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To: All of your friends and acquaintances

Subj: CALL TO ACTION - "SIX-DEGREES-OF-SEPARATION" E-MAIL CAMPAIGN = TRillions Being Printed To Bail Out Foreign Banks and Governments -- (ONLY 5 MINUTES NEEDED TO PARTICIPATE)

Dear Friends,

I have been requested to participate in the referenced "call to action" and request that you participate as well.

The campaign is based on the fact that there are NO MORE THAN SIX DEGREES OF SEPARATION between us and 100% of the American electorate.

And that, on important occasions, we can send to all of our friends and acquaintances an already-prepared e-mail (1) for them to send to America's decision maker(s) to influence governmental policy, and (2) for them to send to all of their friends and acquaintances to do the same in an unending chain.

The reasons for the campaign are contained in the already-prepared e-mail to President Obama that appears below. Additional information (since e-mails to President Obama are limited to 2,500 characters including spaces) =

(1) The e-mail to President Obama refers several times to the Federal Reserve Act. The text of the Federal Reserve Act is available at http://www.federalreserve.gov > About the Fed > Federal Reserve Act.

(2) Sec. 11B of the Federal Reserve Act requires audited financial statements of the Fed. However, the most-recent Annual Report, for example, [www.federalreserve.gov > Publications > 97th Annual Report (audited by Deloitte & Touche LLP)], contains 14 pages of disclosure (pp. 356-369) of all of the Generally-Accepted Accounting Principles (“GAAP”) that The Fed refuses to follow -- the most important of which is a refusal to disclose the current market value of the securities it owns (for example, the “toxic debt” of foreign banks and governments).

(3) The American media are NOT an effective check on The Fed because they are too busy trying to appear knowledgeable by telling each other that the world is so inter-connected that, of course, proverbial “butterflies” flapping their wings on one side of the world do indeed “cause hurricanes” on the other side. However, common sense would cause them to ask why they believe such myths if Germany and France refused to bail out the European banks and refused to bail out Italy and Spain.

(4) Since The Fed is an independent federal agency, Congress is NOT an effective check. It is true that Sec. 2B(a)(2) of the Federal Reserve Act requires the Fed Chairman to appear before a Congressional Committee every six months, but those hearings disclose that the Committee members never ask penetrating questions. And if you try to send an e-mail to any of the members of those committees to suggest appropriate questions, you will find that they do not accept communications from non-constituents.

(5) Although The Fed is an independent federal agency and, therefore, President Obama has no formal control over it, the President and his Justice Department do have criminal jurisdiction over whether The Fed and its Governors are violating the Federal Reserve Act.

(6) It is noted that less than 2 weeks after the 12/31/2011 expiration of The Federal Reserve’s commitment to print enough dollars to purchase any debt issued by Italy or Spain, the ratings agency Standard & Poor’s downgraded the debt of 9 Euro-Zone governments, dropping Italy from A to BBB+ and Spain from AA- to A. Presumably Italy and Spain took advantage of The Fed’s program by (A) re-financing all of their outstanding debt before 12/31/2011, and (B) issuing enough new debt by 12/31/2011 to cover their 2012 borrowing needs. Accordingly, The Fed appears to have purchased about $5 TRillion of “toxic debt” of Italy and Spain.

(7) As stated in the e-mail to President Obama, it remains to be seen how much “toxic debt” The Fed will acquire by 2/1/2013 as a result of its commitment to acquire the debt of every European bank that is unable to borrow on its own.


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If you agree with the proposal, please --

(1) hit your e-mail forward button and put the e-mail addresses of all your friends and acquaintances into the address section so that, through no more than six degrees of separation to 100% of the American population, we reach everyone in a cascading chain.

(2) send to President Obama the already-prepared e-mail that appears below at http://www.whitehouse.gov/contact > Contact Us (upper right) > Submit Comments Online -- which will require (A) inputting your name, an e-mail address and a ZIP code, (B) selecting from the pull-down "subject" menu "economy" under "I Have A Policy Comment," and (C) pasting the following message into the box provided. [It is also recommended that you select a salutation = "Dr." from the pull-down menu before your first name and that you check the box at the end for "Contact me - a response is requested" -- both suggestions in order to maximize the chances that the message will actually be read.]


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President Barack Obama

Re: TRillions Being Printed to Bail Out Foreign Banks and Governments

Dear Mr. President:

The Federal Reserve is violating the Federal Reserve Act by printing TRillions (probably more than $10 TRillion) to bail out foreign banks and governments, which is especially egregious when the TRillions could be used on critical domestic needs.

Two weeks after promising on 8/26/2011 that there would be no more “Quantitative Easing” (printing money for “bail outs” such as printing $7.77 TRillion to bail out U.S. banks at the same time Congress enacted TARP to provide a mere $0.7 TRillion for the same purpose), Fed Chair Bernanke agreed to print as much as $5 TRillion to purchase any debt issued by Italy or Spain before 12/31/2011. But refused to provide any details.

And on 11/30/2011, the Fed announced that it would print enough Dollars to bail out for 14 months through 2/1/2013 all European banks, not just those in Italy and Spain.

Although five other central banks are also participating in the European bank bailout, the Fed has “stone walled” on providing any details which forces U.S. citizens to conclude that the participation of the other central banks is limited to token amounts and merely for show.

And since the Fed has not provided any estimate of how many TRillions will be required in the 14-month European bank bailout, U.S. citizens are forced to conclude that since the E.U. is larger than the United States, the bailouts of the European banks will exceed the $7.77 TRillion that the Federal Reserve printed to bail out U.S. banks.

The Fed decisions came in the wake of the refusal of France and Germany to bail out the European banks or Italy/Spain.

Although Sec. 14 of the Federal Reserve Act permits loans to foreign banks and governments, Sec. 2A clearly permits such loans only insofar as they promote U.S. employment.

The Fed decisions to print TRillions (probably more than $10 TRillion) to bail out foreign banks/governments to promote U.S. employment is viewing the foreign banks/governments as proverbial “butterflies” whose beating wings cause a “hurricane” on the other side of the globe.

You are respectfully requested to prosecute the Federal Reserve Governors for their malfeasance and to insure that printing Dollars for bailouts is confined to the few U.S. banks that might face bankruptcy from defaults by European banks/governments so that our limited resources can be focused on critical domestic needs.

Thank you for your consideration.

Pat
Site Admin
Posts: 170
Joined: Mon Sep 17, 2007 3:11 pm

European Butterflies and U.S. Hurricanes

Post by Pat »

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---------------------------- Original Message ----------------------------
Subject: European Butterflies and U.S. Hurricanes
From: Pat
Date: Tue, January 31, 2012 1:34 pm
To: John Karls
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Hi John,

The proposed e-mail to President Obama compares the Federal Reserve’s fear that a possible “double dip” recession in the European Union’s economy would have a major impact on the American economy as being the equivalent of fearing that “butterflies” beating their wings on one side of the world cause “hurricanes” on the other side.

Could you please elaborate on this.

Pat


---------------------------- Original Message ----------------------------
Subject: Re: European Butterflies and U.S. Hurricanes
From: John Karls
Date: Tue, January 31, 2012 4:12 pm
To: Pat
-------------------------------------------------------------------------------

Dear Pat,

Even though e-mails to President Obama are limited to 2,500 characters, the proposed e-mail makes the point that the Federal Reserve decisions to bail out the Italian and Spanish governments and to bail out all European banks, were made in the wake of the refusal of France and Germany to do so.

Which one would think would cause the American media to ask themselves the common-sense question why the Federal Reserve is so concerned for the American economy if France and Germany, which are much more closely involved, refused to do anything.

Indeed, the Heads of the E.U. Governments met again yesterday in Brussels to consider steps to be taken vis-à-vis the E.U. debt crisis. Germany, once again, rejected any suggestion that it should bail out European banks or Italy/Spain.

And German Chancellor Angela Merkel (reflecting 75% of German public opinion) stated flatly that bailing out European banks or Italy/Spain would merely encourage them to continue in their suicidal ways!!!

[Angela Merkel could also have been unkind in noting, as we have, that the European banks and Italy/Spain have already found their Santa Claus in Fed Chairman Bernanke!!!]

Indeed, yesterday’s meeting of the leaders of the 27 E.U. governments focused quite a bit on whether Greece had satisfied the conditions for the long-promised second bailout from the E.U. There was considerable scepticism and the consensus was that verification, at a minimum, would be required. And that the issue would not be considered again until the next meeting of the 27 governmental leaders after Greece’s actions had been thoroughly examined.

Incidentally, Greece has been a “one off” case since last fall when the leaders of the 27 E.U. governments vowed “NEVER AGAIN” = that with specific reference to Italy and Spain, the E.U. would never again consider bailing out another European government and actual/potential creditors of other governments should disregard Greece as a model for how much risk creditors have with respect to those governments.

The Greek “side show” demonstrates how “in over his head” Fed Chairman Bernanke is when he tries to play Santa Claus to what we have always called Europe’s “problem-children countries”!!! In this regard, there is probably no reason for the Fed to follow the Generally-Accepted-Accounting Principle (GAAP) for disclosing the current market value of the “toxic debt” of European banks and governments that the Fed is buying up with newly-printed dollars!!! With Bernanke as the wannabe baby sitter for Europe’s “problem children countries” the Fed will be lucky to recover 1 cent on the dollar of the “toxic debt” that it is buying!!!

Thankfully this e-mail is not limited to 2,500 characters, so additional facts can be set forth to answer your query.

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FIRST POINT = THE LIKELY IMPACT ON THE AMERICAN ECONOMY OF A SECOND-DIP E.U. RECESSION

According to http://www.cia.gov > The World Fact Book > United States, the U.S. Gross Domestic Product (GDP) = $1,511 TRillion.

According to http://www.cia.gov > The World Fact Book > European Union, E.U. imports = $2 TRillion (of which 11%, or $220 billion, comes from the U.S.), and the E.U.’s decline in GDP during 2009, before it resumed economic growth in 2010 and 2011, was 4.1%.

Assuming that another 4.1% decline in E.U. GDP would result in a 4.1% decline in the E.U.’s annual imports from the U.S. of only $220 billion/year would mean that the decline in U.S. exports to the E.U. would be only $9.0 billion/year!!!

Therefore, a decline in U.S. exports to the E.U. of $9.0 billion/year is less than 1% of U.S. GDP!!! -- less than 6/10’s of 1% to be more precise!!!

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SECOND POINT = THE FEDERAL RESERVE’S “SOLUTION”

As we have studied, although the Federal Reserve has “stone walled” on providing any information on how much money it is printing to bail out Italy and Spain, and how much money it is expecting to have to print to bail out all European banks, we can make some pretty shrewd guesses =

$5 TRillion to enable Italy and Spain to re-finance all of their pre-existing debt by 12/31/2011 and to issue enough new debt to cover their 2012 budgetary deficits.

$7.77 TRillion-PLUS to bail out all European banks during the 14-month period ending a year from now (2/1/2013) -- since $7.77 TRillion is how much the Fed printed to bail out U.S. banks and the E.U. is larger than the U.S.

SO WHY DON’T THE AMERICAN MEDIA STOP TO ASK THEMSELVES THE COMMON-SENSE QUESTION WHETHER IT MAKES SENSE TO PRINT $13-$15 TRILLION TO BAIL OUT EUROPEAN BANKS AND ITALY/SPAIN -- IF DOING SO PRESERVES ONLY $9.0 BILLION/YEAR OF U.S. EXPORTS TO THE E.U.

AFTER ALL, WOULD ANY MEMBER OF THE MEDIA THINK GIVING AWAY $1,500.00 OF HER/HIS OWN MONEY FOR ONLY $9.00 IN RETURN IS ANYTHING OTHER THAN A DEAD LOSS OF $1,491.00???

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THIRD POINT = THE OPPORTUNITY FOREGONE (“OPPORTUNITY COST” IN ECONOMIC PARLANCE)

The e-mail to President Obama makes the point that if the U.S., as a matter of national policy, is going to print $13-$15 TRillion, WHY WASTE IT ON BAILING OUT EUROPEAN BANKS AND ITALY/SPAIN???

WHY NOT SPEND THE NEWLY-PRINTED $13-$15 TRILLION INSTEAD ON CRITICAL DOMESTIC NEEDS SUCH AS IMPROVING OUR INNER CITIES AND FINALLY OFFERING A DECENT EDUCATION TO INNER-CITY CHILDREN???

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FOURTH POINT = IMPACT OF THE ALTERNATIVE ON THE AMERICAN ECONOMY

No member of the media should have the excuse that being untutored in economics means that s/he cannot grasp the fact that if we are going to print $13-$15 TRillion and spend it on something --

(A) wasting it on bailing out European banks and Italy/Spain is almost A COMPLETE WASTE (less than 1% saved in terms of American exports); while

(B) investing it in our inner-cities, in general, and on finally providing a decent education for our inner-city children, in particular, will have a dramatic impact on the American economy -- both in terms of the immediate stimulus of spending the money domestically which would dwarf by far any loss of a mere $9.0 billion/year in exports to the E.U., and in terms of the long-term benefit to the economy as our inner-city population is finally permitted to participate in the American economy.

*****
Thank you for being so conscientious to inquire about this!!!

Your friend,

John K.

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