# ## #where

# ## #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/wpsrv/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 M880 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. •

•

Any person from being a •

♣ 18);

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-PontiacChrysler-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 Amendment

33

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 zincmining 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 jointventure 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 25minute 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 (PublicistEconomist) 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/dupontby_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 greatniece 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