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September 16, 2008

US To Declare October ‘Economic Emergency’, Suspend Elections

By: Sorcha Faal, and as reported to her Western Subscribers (Traducción al Español abajo)

The Federal Security Service of the Russian Federation (FSB) is reporting in the Kremlin today that the Bank of England has received from the United States Federal Reserve Bank a ‘notice’ that President Bush is preparing to declare an ‘Economic Emergency’ during the week of October 5th and will further announce that the American Presidential election due to be held on November 4th will be ‘indefinitely suspended’.

These reports state that the Governor of the Bank of England, Mervyn King, had expressed his ‘shock and outrage’ to his American counterparts at the US Federal Reserve after the catastrophic collapse of one of the largest financial banks in the World, Lehman Brothers, and which caused both the Band of England and the European Central Bank to rush $42 billion into the European economy yesterday to keep it from collapsing, and their own banks from running out of money, necessitating the response from the US Central Bank leader Ben S. Bernanke.

As Prime Minister Putin had previously warned, and as we had reported on in our September 13th report “Hurricane Ike To Completely Destroy United States, Says Putin”, the horrific hurricane storm that has devastated the State of Texas, and where a humanitarian crisis is presently unfolding, has, indeed, proved to be the proverbial ‘straw that broke the camels back’ as the catastrophic damage from this storm raced beyond the Gulf of Mexico coast and ravaged the heartland of America to such an extent that the Governors of Ohio and Kentucky have declared States of Emergency as millions have been left without power.

The significance of this historic storm damage to the American economy, these reports say, led to the unprecedented pressures put upon the World’s largest insurance company American International Group (AIG) and its halt in negotiations, during a rare Sunday meeting in New York, to support the near bankrupt Lehman Brothers on Sunday, but which was then allowed to collapse and is now threatening to also destroy AIG itself.

Not being explained to the American people is that AIG, the World’s largest player in the $45 Trillion derivatives market, during the past two weeks had bet heavily on the World Markets against the damage from Hurricane Ike exceeding $2 billion in property damage, lost oil and gasoline production, lost wages and payments to companies forced to close, etc., it is obligated to pay, but which the actual damages are now being estimated will exceed $1 Trillion as the damages throughout the United States are finally tallied.

[Note: Derivatives are financial instruments whose value changes in response to the changes in underlying variables. The main types of derivatives are futures, forwards, options, and swaps. The main use of derivatives is to reduce risk for one party.]

Such a calamitous action by AIG has basically shattered the Western economic system, and as we can read as reported by The Australian Business News Service in their article titled “Global banks brace for derivative blow-up”, and which says:

“So here we are on the morning of D Day. The world's major couterparties on the $US455 trillion derivatives market go into technical default and no one is sure what is going to happen.

Lehman Bros yesterday formally petitioned the State Bankruptcy Court of the Southern District Court of New York for Chapter 11 protection.

Lehman would also have filed what are called "first day motions", which allow the bank to pay salaries and wages, while it continues to market its non-toxic, broker-dealer operations and work out what on earth to do with its highly toxic $US53 billion residential and commercial mortgage portfolio.

But, as scary and Spartan as it might sound, failure is as essential to the workings of an effective marketplace as is success.

Which means only that, given this shattered, battle-weary investment bank is unable to find itself a new owner or think its own way through the current calamitous circumstances, then one of the legendary brands of Wall Street should be left to fail.

In a weekend of unprecedented drama, the Fed seems to have been forced to play Solomon and choose between Merrill Lynch and Lehman. Both were facing mortal threat. But it seems only one could survive intact.”

Even worse for the American people during this unprecedented crisis is that one of their top economic experts, Wilbur Ross, chairman and CEO of WL Ross & Co, is now warning that over 1,000 US banks are nearing collapse, and one of their top economists, Nouriel Roubini, of NYU's Stern School and RGE Monitor, is further warning that “there is already a "slow-motion run on retail banks" occurring nationwide.”

Russian Military Analysts commenting on these reports state that though it is unlikely that the American President can suspend US elections solely on the basis of an Economic Emergency alone, it is entirely probable that he could do so should their Nation suffer another 9/11 type attack, and which they ‘cryptically’ observe could place as early as September 22nd as American Military Forces begin to conduct their World-Wide tests of their new nuclear alert system as they conduct another test of their so-called Star Wars Missile Defense System.

It should be further noted that as their once great Nation continues sliding towards the abyss of total ruin, these American people still refuse to acknowledge the substance of the many warnings being issued to them from all corners of the World as if even with eyes and ears they do not see and do not hear anything other than what they are programmed for by their masters.

How sad for these people, how much sadder for the rest of us these people are now all but lost.

© September 16, 2008 EU and US all rights reserved.

[Ed. Note: The United States government actively seeks to find, and silence, any and all opinions about the United States except those coming from authorized government and/or affiliated sources, of which we are not one. No interviews are granted and very little personal information is given about our contributors, or their sources, to protect their safety.]


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