Excising The Derivative Tumor

The following contains a good explanation of fractional reserve banking, regulatory powers of the private Federal Reserve, regulatory powers of the private Bank for International Settlements, and a good analysis of the credit derivative problems.

There is also an example of an alternative method of credit creation that has had long-term success in North Dakota.

The real credit problem lies with the financial institutions with significant derivative exposure, and most of this liability is carried by only a handful of Wall Street giants. In early 2008, outstanding derivatives on the books of U.S. banks exceeded $180 trillion. However, $90 trillion of this was carried on the books of JPMorgan Chase alone, while Citibank and Bank of America each had $38 trillion on their books. Needless to say, these are also the banks that are first in line for the Treasury’s bailout money under the Troubled Asset Relief Program. Rather than excising the relatively contained derivative tumor, the Treasury and the Fed are feeding it with trillions in taxpayer money; and this money is being used, not to unfreeze credit by making loans, but to buy up smaller banks. That means the derivative cancer, rather than being excised, is liable to spread.

We the people and our representatives in Congress have allowed Wall Street to call the shots because we think we are dependent on their credit system, but we aren’t. There are other ways to get credit -- ways that are fair, efficient, transparent, and don’t encourage greed. Public credit could be generated by a system of public banks. Precedent for this solution is to be found in the state-owned Bank of North Dakota, which has been generating credit for North Dakota since 1919, keeping the state fiscally sound when other states are floundering. (See Ellen Brown, “Sustainable Government: Banking for a ‘New’ New Deal,” webofdebt.com/articles, December 8, 2008.)

Government Allowed IndyMac Bank To Cook Its Books

Government regulator allowed failing bank to cook it's books, thus causing large taxpayer losses. This corrupt government employee now retires with a guaranteed pension funded by taxpayers.

Scandal at Treasury: Official Quits Amidst Fraud Scandal
Darrel Dochow Allowed IndyMac Bank to Cook Its Books, Investigators Say
By BRIAN ROSS, JUSTIN ROOD, and JOSEPH RHEE

The man at the center of a fraud scandal at the Treasury Department has been allowed to quietly quit and retire from his job as a government regulator, despite allegations that he allowed a bank to falsify financial records and amidst outcries from investigators who say the case shows how cozy government regulators have become with the banks and savings and loans they are supposed to be checking on.

Former bank regulator Darrel Dochow evades ABC News' questions about the Treasury Department Inspector General's investigation into allegations he allowed IndyMac to cook its books when he worked at the Office of Thrift Supervision.

Darrel Dochow, the West Coast regional director at the Office of Thrift Supervision who investigators say allowed IndyMac to backdate its deposits to hide its ill health, quit last Friday. Prior to his leaving, Dochow was removed from his position but remained on the government payroll while the Inspector General's Office investigates the allegations against him.
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Live Avian Flu In Vaccines

Yes, how could this have happened? It is becoming more difficult to trust any of the so-called experts and authorities to do what is right for the people.

Deerfield, Illinois-based pharmaceutical company Baxter International Inc. has just been caught shipping live avian flu viruses mixed with vaccine material to medical distributors in 18 countries. The "mistake" (if you can call it that, see below...) was discovered by the National Microbiology Laboratory in Canada. The World Health Organization was alerted and panic spread throughout the vaccine community as health experts asked the obvious question: How could this have happened?

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But there's a bigger question in all this: How could this company have accidentally mixed LIVE avian flu viruses (both H5N1 and H3N2, the human form) in this vaccine material?

Economic Protests

Some people are waking up to the fact that governments have not been helping the common people. Expect more protests in more countries, and increasing violence.

Up to 120,000 protest in recession-hit Ireland
DUBLIN (AFP) — Up to 120,000 protesters brought Dublin city centre to a standstill on Saturday over government austerity measures aimed at stabilising the once high-flying economy now wracked by recession.

The demonstration came a day after the global economic crisis led to another political casualty elsewhere in Europe, with Latvia's prime minister quitting as his country grapples with deepening recession.
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