AIG forced by Federal Reserve to pay all CDS contracts at 100% - way above current value at the time of settlement.

I have yet to see this on the MSM – but Karl Denninger picked it up as covered on CSPAN.

AIGs CEO Liddy answered a question posed by Rep Kaptur:

"When The Fed set up Maiden Lane they took on responsibility for settlement of all of the CDS."

"The Federal Reserve decided we should pay 100 cents on the dollar",

Rep Issa expanded the truth of this in a followup - they could have purchased those contracts for far less in the open market at the time.

"AIG repaid counterparties one to one, dollar for dollar, but when it comes to teachers and firefighters in Ohio, [they got] zero," Kucinich said. "This is not acceptable, Mr. Liddy. I'm not going to let you get away with it."

Rep Issa called the three-member board from the NY Fed that oversees the government’s 80% ownership stake in AIG "an unconstitutional and unaccountable entity."

As Mr. Denninger says: “The bottom line is that the testimony was that The Fed decided to settle the contracts in a non-economic manner that resulted in screwing the taxpayer by transferring more than $100 billion dollars of taxpayer money out to these banks when the cash value at the time was FAR LESS.”

This is the ONLY reason that the large banks have reported large first quarter profits.

Mr. Denninger continues: “The allegation just made by Liddy is that Bernanke and The Fed literally stole $100 billion dollars from you and I by intentionally and wantonly overpaying on the settlement of these contracts!”

AIG is fighting all requests from the congress: "AIG has spent millions of dollars on high-priced P.R. firms and big-time lawyers to attack its critics," Rep. Towns said. "Clearly, AIG is making sure its lawyers and PR firms are watching its back."

Ron Paul channels voters' outrage

Ron Paul channels voters' outrage:

"Adam de Angeli had always been a quintessential liberal. He marched against the Iraq war, supported anti-poverty programs and voted Democratic. Nearly everyday he hangs out at a brick storefront on Ann Arbor's Main Street. Its 20-something customers and worn-out college couches are just what you'd expect in the heart of Michigan's most liberal bastion. Then de Angeli, 26, answers his cell phone and begins extolling the virtues of libertarianism and Republican presidential hopeful Ron Paul to his latest convert. This is no fad, he says. Next year, he wants to run for local government as a Paul apostle.
...

There's a great jumbling of the socio-political labels by which people had defined themselves for decades.

Along the center left, grassroots Democrats threaten to boot Dem leaders from office for supporting the Iraq war. And hard-core leftist groups such as MoveOn.org are actually praising U.S. Rep. Ron Paul from Texas.

Along the center right, the shake-up is no less surprising. "Crunchy cons" -- nature-loving right-wingers -- are espousing local organic farming. Evangelical leaders once apathetic on the environment now promise to stop global warming."

Ron Paul on the Left, Ron Paul on the Right - he is gathering support from both sides.

Online NewsHour: Conversation | Paul Envisions Limited Government | October 12, 2007 | PBS

PBS NewsHour had a great interview of Ron Paul on Friday. Here is the transcript as well as an MP3 of the interview. The interview can also be found on YouTube.

Online NewsHour: Conversation | Paul Envisions Limited Government | October 12, 2007 | PBS:

"Paul Envisions Smaller Government, Less Global Intervention As part of an ongoing series of in-depth interviews with presidential candidates, Rep. Ron Paul, R-Texas, explains his vision of limited government, decreased U.S. intervention in conflicts abroad and details his stance as an anti-war Republican."

MP3 for listening to interview:
http://www-tc.pbs.org/newshour/rss/media/2007/10/12/20071012_paul28.mp3

YouTube Part 1:
http://www.youtube.com/watch?v=CA7jHaowNME

YouTube Part 2:
http://www.youtube.com/watch?v=XWdz1pnAFUA

Lies, lies and more lies - how the government has used FEAR to wage war on its own people

Politicians use fear to justify wars, Paul says - A Concord Monitor Article

Rep. Ron Paul believes political leaders are pumping up the threat of terrorism to accomplish political goals. Paul, the 10-term Texas congressman, told Monitor reporters and editors that concerns about the country's security have been overblown to justify needless foreign invasions and domestic surveillance programs.

"It scares the living daylights out of me that they would do that, to talk about perpetual war," he said, dismissing the contention that Islamic terrorism is a grave threat that will face the country for a generation or longer. "All that is, they have to have an enemy."

It is amazing how blind the public is to this. Dr. Paul deserves to be leading all the polls (if the American public would just WAKE UP).

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The death of capitalism - IMF poison - bursting of the debt bubbles

CRIMES AND CORRUPTION OF THE NEW WORLD ORDER NEWS: Perils of the debt-propelled economy

Paying down debt with new debt is a Ponzi scheme - the likelihood of its exposure is inversely proportional to its scale of operation. More and more critics are calling the Enron debacle a Ponzi scheme, in that the company filed for bankruptcy even though, for almost a decade up to a few weeks before its bankruptcy filing, many in high places were hailing Enron as the new innovative business model.

I've been worried a lot about this lately. I'm sure we've been here before - but I don't know if we will easily recover from this one, I only see our leaders digging us deeper.

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