Wednesday, October 08, 2008

Yosemite National Park rock slide destroys cabins


By TRACIE CONE – 37 minutes ago



YOSEMITE NATIONAL PARK, Calif. — Chunks of granite crashed to the Yosemite Valley floor in a cloud of dust Wednesday, injuring at least three people and destroying several cabins and trees at one of the park's most popular lodging areas, officials said.
The rock slide was the second in two days in the area called Curry Village, a lodging and retail area defined by dramatic, sheer cliffs.
"We were awakened at 7 to what sounded like thunder and what felt like the Earth crumbling apart," said Deanne Maschmeyer, 41, of Monterey, who was staying in a nearby cabin with her two children. "People were stampeding everywhere and running, running like crazy. I felt like I was running ahead of a tsunami."
The slide destroyed five cabins and partially damaged at least three others, according to a park statement. Three visitors were treated for minor injuries.
The volume of rocks cascading from the granite face was estimated at about 1,800 cubic yards, or about 180 truck loads, said Vickie Mates, a park spokeswoman.
There was another, smaller rock slide in the same area Tuesday afternoon. No one was injured then.
In 1996, a rock slide in the same area sent as much as 162,000 tons of rock plummeting more than 2,000 feet, killing one visitor and felling 500 trees. A slide in 1999 killed one climber and injured three others while narrowly missing the popular campground.
Tom Trujillo, of New Milford, Conn., who was with a group of amateur photographers, saw Wednesday's rock slide and ran toward it.
"Trees were crushed all over the place," Trujillo said over the sound of a hovering helicopter. "A couple of kids, fifth or sixth-graders, were stumbling out of the area. I tried to pick them up, tried to get them out as fast as I could."
Trujillo said he helped one boy, who had blood on his forehead and down his back, get out and find his mother.
"It was a really big mess," Trujillo said. "Tents were crushed, trees were knocked down, hard cabins were moved out of their positions, with boulders blocking their doorway."
Another photographer, Rena McClain, a nurse from Dover, Del., told The Associated Press that she had her back to the granite face when she heard what sounded like a thunderclap. She whipped around and saw a giant cloud of rock and dust coming down.
"People were starting to yell, 'Run, run,' and kids started to scream," McClain said.
As the dust settled, shaken teachers and chaperones gathered groups of high school students and tried to get head counts.
"The kids were crying," said McClain. "I tried to comfort them. I'm a nurse; my immediate response was, 'What can I try to do to help?'"
Mates said the rocks fell across an area that used to be traversed by a trail no longer maintained because of heavy rock falls.
The beauty of the sheer granite face towering above the camp helps make Curry Village one of park's most popular lodging options.
In recent years, geologists have published studies describing a series of cracks along the cliff's face and hypothesizing that pressure from water flowing beneath the surface may be one trigger of the slides.
Researchers also say that tree roots growing down into cracks can sometimes wedge apart sheets of rock, sending sections of cliff tumbling.
Curry Village, founded in 1899 in south-central Yosemite, has 610 canvas and wood cabins in rows among huge boulders, which geologists say are there because of prehistoric rock falls.
Those who saw Wednesday's slide wondered about the safety of the camp.
"With the village right below the rock face, there is definitely a safety issue," said Trujillo, pointing out that the cabins could be moved farther away from the granite cliff, into the parking lot area.
To McClain, on her visit to the park, the rock slide was an eye-opener.
"Nature here is unbelievable, but until you see what can happen, don't realize the danger that can result," McClain said. "I would return to Yosemite. But would I stay in Curry Village? I don't know that I would. I'm pretty shaken up."

Associated Press writers Juliana Barbassa and Marcus Wohlsen in San Francisco contributed to this report.


Jesus condemned the cities for unbelief


20Then began he to upbraid the cities wherein most of his mighty works were done, because they repented not:


21Woe unto thee, Chorazin! woe unto thee, Bethsaida! for if the mighty works, which were done in you, had been done in Tyre and Sidon, they would have repented long ago in sackcloth and ashes.


22But I say unto you, It shall be more tolerable for Tyre and Sidon at the day of judgment, than for you.


23And thou, Capernaum, which art exalted unto heaven, shalt be brought down to hell: for if the mighty works, which have been done in thee, had been done in Sodom, it would have remained until this day.


24But I say unto you, That it shall be more tolerable for the land of Sodom in the day of judgment, than for thee.


25At that time Jesus answered and said, I thank thee, O Father, Lord of heaven and earth, because thou hast hid these things from the wise and prudent, and hast revealed them unto babes.


26Even so, Father: for so it seemed good in thy sight.


27All things are delivered unto me of my Father: and no man knoweth the Son, but the Father; neither knoweth any man the Father, save the Son, and he to whomsoever the Son will reveal him.


28Come unto me, all ye that labour and are heavy laden, and I will give you rest.


29Take my yoke upon you, and learn of me; for I am meek and lowly in heart: and ye shall find rest unto your souls.


30For my yoke is easy, and my burden is light.
Matthew 11: 20-30.

Monday, October 06, 2008

Wall Street Tumbles Amid Global Sell-Off


(ABC News Photo Illustration)



Stocks decline amid global worries credit crisis is spreading; Dow falls below 10,000

By JOE BEL BRUNO AP Business WriterNEW YORK October 6, 2008 (AP)
The Associated Press


Wall Street suffered through another traumatic session Monday, with the Dow Jones industrials plunging as much as 800 points and setting a new record for a one-day point drop as investors despaired that the credit crisis would take a heavy toll around the world. The Dow also fell below 10,000 for the first time since 2004, and all the major indexes fell more than 7 percent.
The catalyst for the selling was the growing realization that the Bush administration's $700 billion rescue plan and steps taken by other governments won't work quickly to unfreeze the credit markets. Global banks, hobbled by wrong-way bets on mortgage securities, remain starved for cash as credit has dried up.
That sent stocks spiraling downward in the U.S., Europe and Asia, and drove investors to sink money into the relative safety of U.S. government debt. Fears about a global recession also caused oil to drop below $90 a barrel; and the benchmark index that gauges fear in the market jumped to the highest level in its 18-year history.
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"The fact is people are scared and the only thing they're doing is selling," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "Investors are cleaning out portfolios and getting rid of everything because nothing seems to be working."
The selling was so extreme that only 67 stocks rose on the NYSE — and 3,155 dropped. That's a telling sign considering the stock market is considered a leading economic indicator, with investors tending to buy and sell based on where they believe the economy will be in six to nine months.


Monday's steep decline on Wall Street indicates that investors are becoming more convinced that the country is leading a prolonged economic crisis that is spreading to other nations. Over the weekend, governments across Europe rushed to prop up failing banks, while the governments of Germany, Ireland and Greece also said they would guarantee bank deposits.
As the U.S. tries to repair its battered banking system, the German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG. And France's BNP Paribas agreed to acquire a 75 percent stake in Fortis's Belgium bank after a government rescue failed.



Justices attend Red Mass before new term

Supreme Court Associate Justice Stephen Breyer, center, shakes hands after exiting Cathedral of St. Matthew the Apostle following the 55th Annual Red Mass celebration, Sunday, Oct. 5, 2008, in Washington,. (AP Photo/Haraz N. Ghanbari)

By NATASHA T. METZLER – 23 hours ago


WASHINGTON (AP) — The law is a guide to an orderly society, an American cardinal said an a church service Sunday that included five Supreme Court justices ahead of the start of their new term.


At the annual Red Mass, Cardinal John Patrick Foley told an audience of government officials, ambassadors, academics and members of the capital's legal community about his decision to attend seminary rather than law school.


Foley said he never regretted the decision — assisted by his voluntary teaching of religious studies to special education students — but that he sees many similarities between his work and the legal profession.


"We both seek to challenge people to recognize their dignity and to live according to it," he said. "We both consider law as a guide to a well ordered society. We both see law as a means in which people can be educated to perceive what is good and to strive for it."


Four of the five Roman Catholics on the high court — Chief Justice John Roberts and Justices Antonin Scalia, Anthony Kennedy and Clarence Thomas — came to worship at the Cathedral of St. Matthew the Apostle; the fifth, Justice Samuel Alito, did not attend. They were joined by Justice Stephen Breyer, who is Jewish.


The cardinal also related a story of a visit from Scalia and his wife, Maureen. Foley said he explained the legal subject of his dissertation to the justice, who disagreed with his theories.
According to Foley, the argument ended when Scalia's wife said, "Oh, admit it Nino, the archbishop is right."


In his remarks, Foley expressed a wish that "all of us may see law as a reflection of God's loving care." He went on to pray for those doing the "extremely important work of formulating and applying law."


The Red Mass long has been held at the cathedral by the John Carroll Society, a group of Washington professionals who are Catholic.


The name of the service, which dates back centuries and is conducted to ask for guidance for those who seek justice, comes from the red vestments worn by the celebrants. The service traditionally is held the day before the Supreme Court's new term.

On the Net:
John Carroll Society: http://www.johncarrollsociety.org/


What Is the Red Mass?


10-04-05


By Melissah Pawlikowski
Ms. Pawlikowski is an HNN intern and a graduate student at Duquesne.


Last Sunday the 52nd annual Red Mass was held in Washington D.C.’s Cathedral of St. Matthew the Apostle. As the symbolically rich ceremony marks the beginning of the Supreme Court’s term, attendants included President George Bush, newly appointed Chief Justice John Roberts, along with associate justices Antonin Scalia, Clarence Thomas, Anthony Kennedy, and Stephen Breyer.


For the most part the Red Mass is like any other Roman Catholic Mass. A sermon is given, the message which is delivered has an overlapping political and religious theme. The Mass is also an opportunity for the Catholic church to express its goals for the coming year. The most significant difference between the Red Mass and a traditional Mass is that the focuses of prayer and blessings concentrate on the leadership roles of those present. Guidance from the Holy Sprit is asked to be bestowed on the congregants. Other blessings that are commonly requested to prevail in the minds, offices, and court rooms are Divine strength, wisdom, truth, and justice. Peace and friendship are exchanged among the congregation, the sacraments are given, and the Mass is commenced.


With over half of the Supreme Court's justices participating in this event, at a time when the Supreme Court has and will continue to face cases involving the separation of church and state, the event is considered controversial by some, even hough it attracts leaders from different religious backgrounds. (President Bush is an evangelical Protestant, Justice Breyer is Jewish.)
The Red Mass is called such due to the red vestments worn by Royal Judges participating in the Pope’s tribunal. Additionally the use of red garments continues today because of it’s representation of the Holy Sprit in Roman Catholic ritual. The tradition of the Red Mass extends back well before the establishment of the Supreme Court, to the Medieval Era. Although it is believed that the first Red Mass was held around 1200, it was not until 1245, in Paris, that the Mass was actually documented. As of 1310 the Mass had become an annual tradition in England to commemorate the beginning of each new Court term. From England the tradition of a yearly Red Mass spread throughout Europe. The tradition was adopted in the United States in the early 20th century.


The first American Red Mass was organized to promote Vatican policies. It was held at the Church of St. Andrew in New York City in 1928. After 1928 only a few Red Masses were held. But since 1953 Red Masses have been held annually in Washington DC. One of the principal reasons the Red Mass did not gain an earlier foothold in tradition in the United States may have been because of the widespread prejudice that existed against Catholicism. Although Catholicism is now regarded as a mainstream religion, prior to the 1950's Catholicism was treated by many Protestants as sacrilegious if not pagan. A key turning point in the way Catholicism was regarded in the United States came in the 1950s when leading Catholic thinkers became identified with the anti-Communist movement. Faced with an outside enemy Protestants and Catholics united in a show of religious tolerance and Christian unity. (The first Catholic appointed to the Supreme Court was Roger Taney, who was appointed by Andrew Jackson. At the time of the 1953 Red Mass there were no Catholics on the Supreme Court. Today there are four: Roberts, Thomas, Kennedy, and Scalia.)



The Red Mass is now celebrated annually in more than half the states of the United States.


Correction: There are Five Supreme Court Justices that are Catholic; Justice Samuel Alito, did not attend.

Innovators meeting to help reinvent worship, outreach



October 3, 2008


Mount Vernon, Ohio, United States
Elizabeth Lechleitner/ANN




Raj Attiken wants ideas.




The more unconventional, the better. The Seventh-day Adventist leader in Ohio is calling for a "culture of innovation" within the church that encourages and applauds relevant and effective ways to worship and do outreach. Attiken worries that when members become "so self-absorbed in preserving tradition and protecting truth," they can easily "slip further and further into inaction and irrelevancy."




Attiken and the church in Ohio head up Partners in Innovation, a group of people and organizations -- including the church in North America's Church Resource Center -- that provide support and resources for innovators. The group's 4th Annual National Conference on Innovation from October 5 to 7 is expected to draw pastors, church administrators, lay leaders, educators, students and business people to Dublin, Ohio this weekend.




Attiken says innovators "often end up leaving the Adventist Church because they don't feel they can take risks." When the church isn't a "safe place to take risks for God," it becomes "stale and stagnant," he says, something he hopes the conference will help change. "You shouldn't feel you need to go outside the church to try something bold for God."




The conference targets "members willing to stick their necks out" who represent less than 2.5 percent of the church, Attiken says, nodding to the Diffusion of Innovations theory. With subgroups ranging from "innovators" to "laggards," theorists use the model to explain how everything from blue jeans to democracy finds wide acceptance over time.




"We don't expect everyone to jump on board right away, and that's OK," he says. "But we cannot afford to only do what we've always done.




" That's what members of the once insular Madison Adventist Church in Tennessee concluded in 2006 when they decided to keep their doors open seven days a week, not just for a few hours on Saturday. They began offering the Madison community health support, English as a Second Language classes, an Adopt-A-Grandparent program and birthday parties for local foster children, among other projects.




Madison is one of nine finalists vying for Innovative Church of the Year, an award announced at the conference by the Church Resource Center (CRC).




"It seems that there is something contagious about serving," says Julie Vega, pastor for Outreach Ministries at Madison. "Our church is rediscovering the truth that it is better to give than to receive."




That's exactly the broader purpose Attiken says all innovation must serve.




"We have to realize that we do not exist for ourselves. We must turn our face outward, beyond our church walls and toward the community," he says.




Attiken isn't pushing for an unrecognizable form of Adventism, nor does he want to alienate more traditional members. "Adventism is big and strong and dynamic enough for everyone. We don't all have to be innovators, but we shouldn't stifle our innovators, either."




"We need to remember that every traditional idea was once an innovation," says Dave Gemmell, CRC associate director. "A lot of churches are doing things that have worked great for generations, but are just not working as consistently now." Attiken says the change is due in part to shifting attitudes toward religion, especially in North America. "We felt we needed to provide a forum that stimulates new thinking about ways the church can reposition itself -- reinvent itself -- and stay relevant," he says. Conference keynote speakers include Robert Wuthnow, author and chair of the Department of Sociology at Princeton University; Leonard Sweet, the E. Stanley Jones professor of evangelism at Drew Theological School; Kelly Monroe Kullberg, founder and director of project development at The Veritas Forum; James Tucker, professor of educational psychology at the University of Tennessee; and Julius Nam, associate professor of religion at the Loma Linda University School of Religion.




To learn more or register for the Conference on Innovation, visit sdapartnersininnovation.org.






Note: Red Bolds and Highlights added for emphasis. Arsenio.

Forbidden to Buy or Sell



And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. Rev. 13:17.


The time is coming when we cannot sell at any price. The decree will soon go forth prohibiting men to buy or sell of any man save him that hath the mark of the beast.


In the last great conflict of the controversy with Satan those who are loyal to God will see every earthly support cut off. Because they refuse to break His law in obedience to earthly powers, they will be forbidden to buy or sell.


Religious powers, allied to heaven by profession, and claiming to have the characteristics of a lamb, will show by their acts that they have the heart of a dragon and that they are instigated and controlled by Satan. The time is coming when God's people will feel the hand of persecution because they keep holy the seventh day.


There is a time coming when commandment-keepers can neither buy nor sell. Make haste to dig out your buried talents. If God has intrusted you with money, show yourselves faithful to your trust; unwrap your napkin, and send your talents to the exchangers, that when Christ shall come, He may receive His own with interest. In the last extremity, before this work shall close, thousands will be cheerfully laid upon the altar. Men and women will feel it a blessed privilege to share in the work of preparing souls to stand in the great day of God, and they will give hundreds as readily as dollars are given now. If the love of Christ were burning in the hearts of His professed people, we would see the same spirit manifested today. Did they but realize how near is the end of all work for the salvation of souls, they would sacrifice their possessions as freely as did the members of the early church. They would work for the advancement of God's cause as earnestly as worldly men labor to acquire riches. Tact and skill would be exercised, and earnest and unselfish labor put forth to acquire means, not to hoard, but to pour into the treasury of the Lord.


Maranatha, E. G. W., p. 183

From The Plow To The Gospel


As the gospel is proclaimed in its purity, men will be called from the plow and from the common commercial business vocations that largely occupy the mind and will be educated in connection with men of experience. As they learn to labor effectively, they will proclaim the truth with power. Through most wonderful workings of divine providence, mountains of difficulty will be removed and cast into the sea. The message that means so much to the dwellers upon the earth will be heard and understood. Men will know what is truth. Onward and still onward the work will advance until the whole earth shall have been warned, and then shall the end come.


{Prophets and Kings, E. G. W., pp. 223-224}

Come out of her, my people




1And after these things I saw another angel come down from heaven, having great power; and the earth was lightened with his glory.
2And he cried mightily with a strong voice, saying, Babylon the great is fallen, is fallen, and is become the habitation of devils, and the hold of every foul spirit, and a cage of every unclean and hateful bird.
3For all nations have drunk of the wine of the wrath of her fornication, and the kings of the earth have committed fornication with her, and the merchants of the earth are waxed rich through the abundance of her delicacies.
4And I heard another voice from heaven, saying, Come out of her, my people, that ye be not partakers of her sins, and that ye receive not of her plagues.
5For her sins have reached unto heaven, and God hath remembered her iniquities.
6Reward her even as she rewarded you, and double unto her double according to her works: in the cup which she hath filled fill to her double.
7How much she hath glorified herself, and lived deliciously, so much torment and sorrow give her: for she saith in her heart, I sit a queen, and am no widow, and shall see no sorrow.
8Therefore shall her plagues come in one day, death, and mourning, and famine; and she shall be utterly burned with fire: for strong is the Lord God who judgeth her.
9And the kings of the earth, who have committed fornication and lived deliciously with her, shall bewail her, and lament for her, when they shall see the smoke of her burning,
10Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
11And the merchants of the earth shall weep and mourn over her; for no man buyeth their merchandise any more:
12The merchandise of gold, and silver, and precious stones, and of pearls, and fine linen, and purple, and silk, and scarlet, and all thyine wood, and all manner vessels of ivory, and all manner vessels of most precious wood, and of brass, and iron, and marble,
13And cinnamon, and odours, and ointments, and frankincense, and wine, and oil, and fine flour, and wheat, and beasts, and sheep, and horses, and chariots, and slaves, and souls of men.
14And the fruits that thy soul lusted after are departed from thee, and all things which were dainty and goodly are departed from thee, and thou shalt find them no more at all.
15The merchants of these things, which were made rich by her, shall stand afar off for the fear of her torment, weeping and wailing,
16And saying, Alas, alas that great city, that was clothed in fine linen, and purple, and scarlet, and decked with gold, and precious stones, and pearls!
17For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
18And cried when they saw the smoke of her burning, saying, What city is like unto this great city!
19And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.
20Rejoice over her, thou heaven, and ye holy apostles and prophets; for God hath avenged you on her.
21And a mighty angel took up a stone like a great millstone, and cast it into the sea, saying, Thus with violence shall that great city Babylon be thrown down, and shall be found no more at all.
22And the voice of harpers, and musicians, and of pipers, and trumpeters, shall be heard no more at all in thee; and no craftsman, of whatsoever craft he be, shall be found any more in thee; and the sound of a millstone shall be heard no more at all in thee;
23And the light of a candle shall shine no more at all in thee; and the voice of the bridegroom and of the bride shall be heard no more at all in thee: for thy merchants were the great men of the earth; for by thy sorceries were all nations deceived.
24And in her was found the blood of prophets, and of saints, and of all that were slain upon the earth.


Revelation 18 (King James Version)

Europe governments strive to avoid bank meltdown

Reuters Photo: A pedestrian passes the entrance to German lender Hypo Real Estate bank in Berlin in...

By PAN PYLAS, AP Business Writer 1 minute ago


LONDON - European governments struggled to find a coordinated response to the crisis sweeping financial markets Monday, as countries one after the other announced sweeping deposit guarantees on their own to try and shore up their banks. Stock markets plunged.




Iceland and Denmark became the latest countries to declare a deposit guarantee Monday after a startling announcement by German Chancellor Angela Merkel on Sunday that her government would guarantee all private bank savings and CDs held in the euro zone's largest economy. "We want to tell people that their savings are safe," she said.
Faltering confidence in the financial system, undermined by a series of bank bailouts, was precipitating the measures, analysts said, since a failure to match guarantees by Ireland, France, Greece and Sweden could risk a massive fund outflow. Yet the guarantees themselves raised questions about their potential impact on government finances, and showed European governments were unable to find a unified approach despite a weekend summit where they agreed to do just that.
"Governments have no choice but to give the guarantees on deposits, otherwise we will see runs on banks and a complete loss of business and consumer confidence," said Neil Mackinnon, chief economist at ECU Group.
"The stakes have never been higher," he added.
Markets responded to the disarray by sinking rapidly, following selloffs in Asia. Russia shut down both its stock markets after they fell more than 15 percent. Germany's DAX was down 287.22, or 5.0 percent, at 5,508.14, while France's CAC-40 was 223.03 points, or 5.5 percent, lower at 3,857.72. The FTSE 100 index of leading British shares was faring slightly better, down 133.83 points, or 2.8 percent, at 4,736.51.
In the U.S., the Dow Jones industrials plunged 570 points to 9,747.
Meanwhile, the euro slid below the $1.36 mark for the first time in over a year.
The crisis engulfing Europe and its markets has fueled talk of coordinated interest-rate cuts by the world's leading central banks, possibly as early as Monday.
Analysts said they wouldn't be surprised if the U.S. Federal Reserve, the European Central Bank and the Bank of England instigate the first joint action on interest rates since the September 2001 terrorist attacks on the U.S.
"I think we will see interest-rate cuts this week," said ECU Group's Mackinnon.
So far, the banks have continued to flood the money markets with additional liquidity. On Monday, the ECB injected another $50 billion into money markets while the BoE added another $10 billion. The Swedish Central Bank increased its lending to 100 billion kronor ($14.2 billion).
Additionally, the Fed said that 28-day and 84-day cash loans being made available to banks will be boosted to $150 billion each, effective Monday. Those increases will eventually bring the amounts outstanding under the program to $600 billion.
British Prime Minister Gordon Brown planned a call to Merkel to discuss the crisis, and Britain's Treasury chief, Alistair Darling, was due to make a statement to Parliament later. So far, Britain has raised its deposit guarantee only to 50,000 pounds ($87,900), but was under pressure to guarantee all deposits.
French President Nicolas Sarkozy spoke by telephone in the morning with Brown, ECB President Jean-Claude Trichet and European Commission President Jose Manuel Barroso and was due to speak to Merkel later too.
"We need a coordinated response," Sarkozy said during a visit to a Renault car plant in Normandy. Meanwhile European Union finance ministers were set to begin two days of talks on the crisis in Luxembourg.
"This is a very serious situation and one that needs to be addressed," said EU spokesman Johannes Laitenberger.
"Obviously there is a great effort under way. Nobody is suggesting that this is business as usual, but it's true that there is not one single magic bullet that will solve this."
The renewed effort to coordinate a response came after the weekend commitment by Europe's four leading economic powers — Germany, France, Britain and Italy — to work together. That commitment fell apart on Sunday when Merkel announced that all 568 billion euros ($786 billion) worth of private deposits held in Germany would be guaranteed, alongside a new 50 billion euros ($69 billion) bailout package for Hypo Real Estate AG, Germany's second-biggest mortgage lender.
"The EU is liable to be exposed as a fair weather construction, lacking the means of swift response and the hold over its citizens' loyalties to survive really adverse conditions," said Stephen Lewis, an analyst at Monument Securities.
In a joint statement Monday, Merkel and Finance Minister Peer Steinbrueck said the guarantee was "an important step at the right moment."
In response to the German move, the Danish Economy Ministry said commercial lenders had agreed to contribute up to 35 billion kroner, or about $6.4 billion over two years to a fund that will help insure account holders from losses. Austrian officials have indicated they might join in as well.
The markets are skeptical that Europe's piecemeal response to the crisis so far will work to stem the selling tide
"We'll see if that works in Europe because when (U.S. Treasury Secretary) Hank Paulson tried it in the U.S. to back Fannie and Freddie, it failed," said Robert Brusca, chief economist at New York based Fact and Opinion Economics.
Meanwhile, Iceland halted trading in six bank stocks while the government drafted a crisis plan. Icelandic banks' assets dwarfs the rest of its economy and its currency has fallen sharply in the past week.
___




Associated Press writers Matt Moore in Stockholm, Angela Doland in Paris, Patrick McGroarty in Berlin and Jill Lawless in London contributed to this report.



Source: http://news.yahoo.com/s/ap/20081006/ap_on_bi_ge/eu_europe_meltdown;_ylt=At7AFEAxdqQbtZEgvIdYnZBvaA8F

Financial Crises Spread in Europe


By CARTER DOUGHERTY, NELSON SCHWARTZ and FLOYD NORRIS
Published: October 5, 2008



This article was reported by Carter Dougherty, Nelson Schwartz and Floyd Norris and written by Mr. Norris.





European nations scrambled on Sunday night to prevent a growing credit crisis from bringing down major banks and alarming savers as troubles in financial markets spread around the world, accelerating economic downturns on three continents.
The German government moved to guarantee all private savings accounts in the country on Sunday, hoping to reassure depositors who had grown nervous as efforts to bail out a large German lender and a major European financial company failed.
Late Sunday, it was disclosed that new bailouts had been arranged for both of those companies, Hypo Real Estate, the German lender, and Fortis, a large banking and insurance company based in Belgium but active across much of the Continent.
The spreading worries came days after the United States Congress approved a $700 billion bailout package that officials had hoped would calm financial markets globally.
The moves came as federal regulators were trying to help resolve a merger fight in the United States that could make investors more uneasy. Court hearings were under way in New York on Sunday over competing efforts by Citigroup and Wells Fargo to acquire Wachovia, a large bank that nearly failed a week ago.
In Europe, meanwhile, the crisis appears to be the most serious one to face the Continent since a common currency, the euro, was created in 1999. Jean Pisani-Ferry, director of the Bruegel research group in Brussels, said Europe confronted “our first real financial crisis, and it’s not just any crisis. It’s a big one.”
The European Central Bank has aggressively lent money to banks as the crisis has grown. It had resisted lowering interest rates, but signaled on Thursday that it might cut rates soon. The extra money, aimed at ensuring that banks would have adequate access to cash, has not reassured savers or investors, and European stock markets have performed even worse than the American markets.
In Iceland, government officials and banking chiefs were discussing a possible rescue plan for the country's commercial banks. In Berlin, Chancellor Angela Merkel and her finance minister, Peer Steinbrück, appeared before television cameras to promise that all bank deposits would be protected, although it was not clear whether legislation would be needed to make that promise good.
Mindful of the rising public anger at the use of public money to buttress the business of high-earning bankers, Mrs. Merkel promised a day of reckoning for them as well. “We are also saying that those who engaged in irresponsible behavior will be held responsible,” she said. “The government will ensure that. We owe it to taxpayers.”
Stock markets fell sharply in early trading on Monday in Asia on growing fears about the health of European banks and the resilience of the global economy.
The Nikkei 225 index dropped 3.4 percent in Tokyo on Monday, the Kospi index in Seoul fell 3.7 percent and the Standard and Poor’s/Australian Stock Exchange 200 index in Sydney declined 3.3 percent. The events in Berlin and Brussels underscored the failure of Europe’s case-by-case approach to restoring confidence in the Continent’s increasingly jittery banking sector. A European summit meeting Saturday did little to calm worries.
President Nicolas Sarkozy of France and his counterparts from Germany, Britain and Italy vowed to prevent a Lehman-like bankruptcy in Europe but they did not offer an American-style bailout package.
The crisis has underlined the difficulty of taking concerted action in Europe because its economies are far more integrated than its governing structures.
“We are not a political federation,” Jean-Claude Trichet, the president of the European Central Bank, said. “We do not have a federal budget.”
Last week, Ireland moved to guarantee both deposits and other liabilities at six major banks. There was grumbling in London and Berlin about the move giving those banks an unfair advantage. But Germany proposed its deposit guarantee Sunday after Britain raised its guarantee to £50,000, or almost $90,000, from £35,000.
Unlike in the United States, where deposits are fully guaranteed up to a limit of $250,000 — a figure that was raised from $100,000 last week — deposits in most European countries have been only partially guaranteed, sometimes by groups of banks rather than governments. In Germany, the first 90 percent of deposits up to 20,000 euros, or about $27,000, was guaranteed.
The Paris meeting produced a promise that European leaders would work together to halt the financial crisis and reassure nervous investors, but even before the meeting began it was becoming clear that two bailouts announced the week before had not succeeded and that a major Italian bank might be in trouble. That bank, Unicredit, announced plans on Sunday to raise as much as 6.6 billion euros, or $9 billion, in capital.
Fortis, which only a week ago received 11.2 billion euros from the governments of the Netherlands, Belgium and Luxembourg, was unable to continue its operations. On Friday, the Dutch government seized its operations in that country, and Sunday night the Belgian government helped to arrange for BNP-Paribas, the French bank, to take over what was left of the company.
In Berlin, the government arranged a week ago for major banks to lend 35 billion euros to Hypo, but that fell apart when the banks concluded that more money would be needed. Late Sunday, the government said a 50 billion euro package had been arranged, with the government and other banks participating.
The credit crisis began in the United States, a fact that has led European politicians to claim superiority for their country’s financial systems, in contrast to what Silvio Berlusconi, Italy’s prime minister, called the “speculative capitalism” of the United States. On Saturday, Gordon Brown, the British prime minister, said the crisis “has come from America,” and Mr. Berlusconi bemoaned the lack of business ethics that had been exposed by the crisis.
Many of the European banks’ problems have stemmed from bad loans in Europe, and Fortis got into trouble in part by borrowing money to make a major acquisition. But activities in the United States have played a role. Bankers said Sunday that the additional need for funds at Hypo came from newly discovered guarantees it had issued to back American municipal bonds that it had sold to investors.
The credit market worries came on top of heightening concerns about economic growth in Europe and the United States. Many economists think there are recessions in both areas, and one also appears to have started in Japan, where the Nikkei newspaper reported Monday that a poll of corporate executives found that 94 percent thought the country’s economy was deteriorating.
“Unless there is a material easing of credit conditions,” said Bob Elliott of Bridgewater Associates, an American money management firm, after the retail sales figures were announced, “it is unlikely that demand will turn around soon.”
Almost unnoticed as the United States Congress approved a $700 billion bailout for banks last week, it also agreed to guarantee $25 billion in loans for America’s troubled automakers. European automakers said Sunday they would seek similar aid from the European Commission.
Henry M. Paulson Jr., the United States Treasury secretary, hoped that approval of the American bailout, which will involve buying securities from banks at more than their current market value, would free up credit by making cash available for banks to lend and by reassuring participants in the credit markets.
But that did not happen last week. Instead, credit grew more expensive and harder to get as investors became more skittish about buying commercial paper, essentially short-term loans to companies. Rates on such loans rose so fast that some feared the market could essentially close, leaving it to already-stressed banks to provide short-term corporate loans.
Altria, the parent company of the cigarette maker Philip Morris, said lenders wanted it to delay its planned $10.3 billion acquisition of UST, another tobacco maker, until 2009, but promised it would complete the deal.
Europe’s need to scramble is in part the legacy of a decision to establish the euro, which 15 countries now use, but not follow up with a parallel system of cross-border regulation and oversight of private banks.
“First we had economic integration, then we had monetary integration,” said Sylvester Eijffinger, a member of the monetary expert panel advising the European parliament. “But we never developed the parallel political and regulatory integration that would allow us to face a crisis like the one we are facing today,” he added.
In Brussels, Daniel Gros, director of the Center for European Policy Studies, agreed. “Maybe they will be shocked into thinking more strategically instead of running behind events,” he said. “The later you come, the higher the bill.”
While the European Central Bank has power over interest rates and broader monetary policy, it was never granted parallel oversight of private banks, leaving that task to dozens of regulators across the Continent.
This patchwork system includes national central banks in each of the euro-zone’s 15 members and they still retain broad powers within their own borders, further complicating any regional approach to problem-solving.
The European economic landscape today bears little resemblance to the 1990s, when the groundwork for the euro was laid. Back then, Mr. Pisani-Ferry recalled, few banks in Europe had cross-border operations on a significant scale.
A wave of mergers over the last decade created giants like HSBC and Deutsche Bank, which straddle continents and have major American exposure.
“The European banking landscape was transformed fairly recently,” Mr. Pisani-Ferry said. “When the euro was first introduced, the question of cross-border regulation didn’t really arise.”
Optimists say one potential long-term benefit from the current turmoil is that it often takes a crisis to propel European integration forward.
“Progress in Europe is usually the result of a crisis,” Mr. Eijffinger said. “This could be one of those rare moments in E.U. history.”
Mr. Dougherty reported from Frankfurt, Mr. Schwartz from Paris and Mr. Norris from New York. Katrin Bennhold and David Jolly contributed reporting from Paris.



More Articles in Business » A version of this article appeared in print on October 6, 2008, on page A1 of the New York edition.


Dow industrials plunge 500 amid global sell-off



By JOE BEL BRUNO, AP Business Writer 8 minutes ago
NEW YORK - Wall Street is plunging, with the Dow Jones industrials down more than 500 points amid growing fears that the credit crisis is spreading around the world.


Investors are realizing that the Bush administration's $700 billion rescue plan won't work quickly to unfreeze credit markets, and many banks are still having difficulty gaining access to cash. European governments also took steps over the weekend to limit the damage from the growing global financial crisis.
The Federal Reserve also took fresh steps to help ease credit markets Monday.
The Dow is down more than 570 points at the 9,747 level.
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THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.


BC-Wall Street, 10th Ld-Writethru,1105
Wall Street tumbles amid global sell-off
Eds: UPDATES trading. Moving on general news and financial services.
By JOE BEL BRUNO
AP Business Writer



NEW YORK (AP) — Wall Street tumbled Monday, joining a selloff around the world as fears grew that the financial crisis will cascade through economies globally despite bailout efforts by the U.S. and other governments. The Dow Jones industrials skidded more than 400 points and fell below 10,000 for the first time in four years, while the credit markets remained under strain.
The markets have come to the sobering realization that the Bush administration's $700 billion rescue plan won't work quickly to unfreeze the credit markets, and that many banks are still having difficulty gaining access to cash. That's caused investors to exit stocks and move money into the relative safety of government debt.
Over the weekend, governments across Europe rushed to prop up failing banks. The German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG, while France's BNP Paribas agreed to acquire a 75 percent stake in Fortis's Belgium bank after a government rescue failed.
The governments of Germany, Ireland and Greece also said they would guarantee bank deposits.
The Federal Reserve also took fresh steps to help ease seized-up credit markets. The central bank said Monday it will begin paying interest on commercial banks' reserves and will expand its loan program to squeezed banks.
Investors took a bleak view of the future, seeing no end to the crisis in the near term. But analysts were more optimistic.
"These programs are going to be effective I believe," said Rob Lutts, chief investment officer at Cabot Money Management. "Shorter term we're in a very challenging environment that's going to take a while."
In midmorning trading, the Dow Jones industrial average fell 403.65, or 3.91 percent, to 9,921.73, dropping below 10,000 for the first time since Oct. 29, 2004. At one point, the Dow was down more than 400.
Broader indexes also tumbled. The Standard & Poor's 500 index shed 51.71, or 4.70 percent, to 1,047.52; and the Nasdaq composite index fell 95.83, or 4.92 percent, to 1,851.56. The Russell 2000 index of smaller companies dropped 28.78, or 4.65 percent, to 590.62.
In Asia, the Nikkei 225 closed 4.25 percent lower. Europe's stock markets also declined, with the FTSE-100 down 3.24 percent, Germany's DAX down 5.28 percent, and France's CAC-40 down 5.60 percent.
The anxiety was again obvious in the credit markets. The yield on the three-month Treasury bill slipped to 0.38 percent from 0.50 percent late Friday. Demand for bills remains high because of their safety; investors are willing to take extremely low returns just to have their money in a secure place.
Investors also moved into longer-term Treasury bonds. The yield on the 10-year note fell to 3.52 percent from 3.60 percent late Friday.
Banks' hesitation to lend to one another and to many businesses and individuals is the result of the bad mortgage debt that the financial rescue is supposed to sweep up. But it's still unclear how quickly financial institutions will be able to hand that debt to the U.S. government and convince the markets they are healthy again.
There has been some hope that perhaps the Fed, in concert with other central banks, might cut interest rates to help stimulate the economy. With oil prices well off their midsummer highs and indicators pointing to a slower economy, the Fed's worries about inflation are less than they had been, making it easier to justify a rate cut.
Oil prices fell to an eight-month low below $90 a barrel on speculation that the spreading financial crisis will exacerbate a global economic slowdown and further cut demand for crude oil. Light, sweet crude tumbled $3.82 to $90.06 a barrel on the New York Mercantile Exchange.
Investors might get some indication about a potential rate cut with several policymakers slated to speak this week. Dallas Fed President Richard Fisher and Chicago Fed President Charles Evans will speak on the U.S. economy on Monday. Federal Reserve Chairman Ben Bernanke is due to speak on Tuesday.
Frederick Dickson, chief market strategist at D.A. Davidson & Co., believes investors are eager for any signs about the well being of the economy.
"Wall Street at this point is shifting its attention from whether Congress was going to act on the emergency stabilization bill to the realization that the economy is slowing significantly faster than most analysts had expected," he said. "The downturn has shifted from first gear to about third gear in about two weeks."
In corporate news, ailing Hartford Financial Services Group Inc. received a $2.5 billion investment from European insurer Allianz. Hartford's market value was halved last week on concerns it needed more capital to survive, but shares recovered $4.53, or 16.5 percent, to $31.93 on Monday.
EBay Inc. fell $1.14, or 6 percent, to $17.81 after announcing it will cut about 1,000 jobs, reducing its work force by 10 percent, to streamline the company. The online auction site expects restructuring charges of about $70 million to $80 million, mostly during the fourth quarter.
Wells Fargo & Co. said late Sunday its takeover agreement with Wachovia Corp. will go forward after a state appeals court blocked a lower court ruling that favored rival bidder Citigroup Inc. Wells Fargo said it will "continue working toward the completion of its firm, binding merger agreement" with Wachovia.
Shares of Wells Fargo rose 6 cents to $34.68, while Citi fell 64 cents, or 3.5 percent, to $17.78. Wachovia fell 18 cents, or 2.9 percent, to $6.03.
Eli Lilly & Co. said its board approved an acquisition of ImClone Systems Inc. for more than $6 billion. The deal, which also has been approved by ImClone's board, will create one of the leading oncology franchises in the biopharmaceutical industry. Eli Lilly fell $1.53, or 3.7 percent, to $39.75, while ImClone surged $2.80, or 4.3 percent, to $67.75.
___




Wall Street tumbles amid global sell-off


Monday, October 6, 2008


NEW YORK - Wall Street tumbled Monday, joining a selloff around the world, as fears grew that the financial crisis will cascade through economies globally despite bailout efforts by the U.S. and other governments. The credit market remained under strain, and investors piled into government bonds. The Dow Jones industrials skidded more than 200 points.
The markets have come to the sobering realization that the Bush administration's $700 billion rescue plan won't work quickly to unfreeze the credit markets, and that many banks are still having difficulty gaining access to cash.


Over the weekend, governments across Europe rushed to prop up failing banks. The German government and financial industry agreed on a $68 billion bailout for commercial-property lender Hypo Real Estate Holding AG, while France's BNP Paribas agreed to acquire a 75 percent stake in Fortis's Belgium bank after a government rescue failed.
The governments of Germany, Ireland and Greece also said they would guarantee bank deposits.


The Federal Reserve also took fresh steps to help ease seized-up credit markets. The central bank said Monday it will begin paying interest on commercial banks' reserves and will expand its loan program to squeezed banks.


"These programs are going to be effective I believe," said Rob Lutts, chief investment officer at Cabot Money Management. "Shorter term we're in a very challenging environment that's going to take a while."


In the first hour of trading, the Dow Jones industrial average fell 231.13, or 2.24 percent, to 10,094.25.


Broader indexes also tumbled. The Standard & Poor's 500 index shed 28.21, or 2.57 percent, to 1,071.02; and the Nasdaq composite index fell 49.39, or 2.54 percent, to 1,898.00. The Russell 2000 index of smaller companies dropped 15.63, or 2.52 percent, to 603.77.


The anxiety was again obvious in the credit markets. The yield on the three-month Treasury bill slipped to 0.37 percent from 0.50 percent late Friday. Demand for bills remains high because of their safety; investors are willing to take extremely low returns just to have their money in a secure place.


Investors also moved into longer-term Treasury bonds. The yield on the 10-year note fell to 3.52 percent from 3.60 percent late Friday.
---

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New York Stock Exchange: http://www.nyse.com
Nasdaq Stock Market: http://www.nasdaq.com/


Thursday, October 02, 2008

FEMA: The Secret Government?





Some people have referred to it as the "secret government" of the United States. It is not an elected body, it does not involve itself in public disclosures, and it even has a quasi-secret budget in the billions of dollars. This government organization has more power than the President of the United States or the Congress, it has the power to suspend laws, move entire populations, arrest and detain citizens without a warrant and hold them without trial, it can seize property, food supplies, transportation systems, and can suspend the Constitution.


Not only is it the most powerful entity in the United States, but it was not even created under Constitutional law by the Congress. It was a product of a Presidential Executive Order. No, it is not the U.S. military nor the Central Intelligence Agency, they are subject to Congress. The organization is called FEMA, which stands for the Federal Emergency Management Agency. Originally conceived in the Richard Nixon Administration, it was refined by President Jimmy Carter and given teeth in the Ronald Reagan and George Bush Administrations.
FEMA had one original concept when it was created, to assure the survivability of the United States government in the event of a nuclear attack on this nation. It was also provided with the task of being a federal coordinating body during times of domestic disasters, such as earthquakes, floods and hurricanes. Its awesome powers grow under the tutelage of people like Lt. Col. Oliver North and General Richard Secord, the architects on the Iran-Contra scandal and the looting of America's savings and loan institutions. FEMA has even been given control of the State Defense Forces, a rag-tag, often considered neo-Nazi, civilian army that will substitute for the National Guard, if the Guard is called to duty overseas.


THE MOST POWERFUL ORGANIZATION IN THE UNITED STATESThough it may be the most powerful organization in the United States, few people know it even exists. But it has crept into our private lives. Even mortgage papers contain FEMA's name in small print if the property in question is near a flood plain. FEMA was deeply involved in the Los Angeles riots and the 1989 Loma Prieta earthquake in the San Francisco Bay Area. Some of the black helicopter traffic reported throughout the United States, but mainly in the West, California, Washington, Arizona, New Mexico, Texas and Colorado, are flown by FEMA personnel. FEMA has been given responsibility for many new disasters including urban forest fires, home heating emergencies, refugee situations, urban riots, and emergency planning for nuclear and toxic incidents. In the West, it works in conjunction with the Sixth Army.


FEMA was created in a series of Executive Orders. A Presidential Executive Order, whether Constitutional or not, becomes law simply by its publication in the Federal Registry. Congress is by-passed. Executive Order Number 12148 created the Federal Emergency Management Agency that is to interface with the Department of Defense for civil defense planning and funding. An "emergency czar" was appointed. FEMA has only spent about 6 percent of its budget on national emergencies, the bulk of their funding has been used for the construction of secret underground facilities to assure continuity of government in case of a major emergency, foreign or domestic. Executive Order Number 12656 appointed the National Security Council as the principal body that should consider emergency powers. This allows the government to increase domestic intelligence and surveillance of U.S. citizens and would restrict the freedom of movement within the United States and grant the government the right to isolate large groups of civilians. The National Guard could be federalized to seal all borders and take control of U.S. air space and all ports of entry.



Here are just a few Executive Orders associated with FEMA that would suspend the Constitution and the Bill of Rights. These Executive Orders have been on record for nearly 30 years and could be enacted by the stroke of a Presidential pen:


* EXECUTIVE ORDER 10990 allows the government to take over all modes of transportation and control of highways and seaports.


* EXECUTIVE ORDER 10995 allows the government to seize and control the communication media.


* EXECUTIVE ORDER 10997 allows the government to take over all electrical power, gas, petroleum, fuels and minerals.


* EXECUTIVE ORDER 10998 allows the government to take over all food resources and farms.


* EXECUTIVE ORDER 11000 allows the government to mobilize civilians into work brigades

under government supervision.


* EXECUTIVE ORDER 11001 allows the government to take over all health, education and welfare functions.


* EXECUTIVE ORDER 11002 designates the Postmaster General to operate a national registration of all persons.


* EXECUTIVE ORDER 11003 allows the government to take over all airports and aircraft, including commercial aircraft.


* EXECUTIVE ORDER 11004 allows the Housing and Finance Authority to relocate communities, build new housing with public funds, designate areas to be abandoned, and establish new locations for populations.


* EXECUTIVE ORDER 11005 allows the government to take over railroads, inland waterways and public storage facilities.


* EXECUTIVE ORDER 11051 specifies the responsibility of the Office of Emergency Planning and gives authorization to put all Executive Orders into effect in times of increased international tensions and economic or financial crisis.


* EXECUTIVE ORDER 11310 grants authority to the Department of Justice to enforce the plans set out in Executive Orders, to institute industrial support, to establish judicial and legislative liaison, to control all aliens, to operate penal and correctional institutions, and to advise and assist the President.


* EXECUTIVE ORDER 11049 assigns emergency preparedness function to federal departments and agencies, consolidating 21 operative Executive Orders issued over a fifteen year period.


* EXECUTIVE ORDER 11921 allows the Federal Emergency Preparedness Agency to develop plans to establish control over the mechanisms of production and distribution, of energy sources, wages, salaries, credit and the flow of money in U.S. financial institution in any undefined national emergency. It also provides that when a state of emergency is declared by the President, Congress cannot review the action for six months.
The Federal Emergency Management Agency has broad powers in every aspect of the nation. General Frank Salzedo, chief of FEMA's Civil Security Division stated in a 1983 conference that he saw FEMA's role as a "new frontier in the protection of individual and governmental leaders from assassination, and of civil and military installations from sabotage and/or attack, as well as prevention of dissident groups from gaining access to U.S. opinion, or a global audience in times of crisis."


FEMA's powers were consolidated by President Carter to incorporate:
* the National Security Act of 1947, which allows for the strategic relocation of industries, services, government and other essential economic activities, and to rationalize the requirements for manpower, resources and production facilities;


* the 1950 Defense Production Act, which gives the President sweeping powers over all aspects of the economy;


* the Act of August 29, 1916, which authorizes the Secretary of the Army, in time of war, to take possession of any transportation system for transporting troops, material, or any other purpose related to the emergency; and
* the International Emergency Economic Powers Act, which enables the President to seize the property of a foreign country or national.


These powers were transferred to FEMA in a sweeping consolidation in 1979.
HURRICANE ANDREW FOCUSED ATTENTION ON FEMAFEMA's deceptive role really did not come to light with much of the public until Hurricane Andrew smashed into the U.S. mainland. As Russell R. Dynes, director of the Disaster Research Center of the University of Delaware, wrote in The World and I, "...The eye of the political storm hovered over the Federal Emergency Management Agency. FEMA became a convenient target for criticism." Because FEMA was accused of dropping the ball in Florida, the media and Congress commenced to study this agency. What came out of the critical look was that FEMA was spending 12 times more for "black operations" than for disaster relief. It spent $1.3 billion building secret bunkers throughout the United States in anticipation of government disruption by foreign or domestic upheaval. Yet fewer than 20 members of Congress , only members with top security clearance, know of the $1.3 billion expenditure by FEMA for non-natural disaster situations. These few Congressional leaders state that FEMA has a "black curtain" around its operations. FEMA has worked on National Security programs since 1979, and its predecessor, the Federal Emergency Preparedness Agency, has secretly spent millions of dollars before being merged into FEMA by President Carter in 1979.


FEMA has developed 300 sophisticated mobile units that are capable of sustaining themselves for a month. The vehicles are located in five areas of the United States. They have tremendous communication systems and each contains a generator that would provide power to 120 homes each, but have never been used for disaster relief.


FEMA's enormous powers can be triggered easily. In any form of domestic or foreign problem, perceived and not always actual, emergency powers can be enacted. The President of the United States now has broader powers to declare martial law, which activates FEMA's extraordinary powers. Martial law can be declared during time of increased tension overseas, economic problems within the United States, such as a depression, civil unrest, such as demonstrations or scenes like the Los Angeles riots, and in a drug crisis. These Presidential powers have increased with successive Crime Bills, particularly the 1991 and 1993 Crime Bills, which increase the power to suspend the rights guaranteed under the Constitution and to seize property of those suspected of being drug dealers, to individuals who participate in a public protest or demonstration. Under emergency plans already in existence, the power exists to suspend the Constitution and turn over the reigns of government to FEMA and appointing military commanders to run state and local governments. FEMA then would have the right to order the detention of anyone whom there is reasonable ground to believe...will engage in, or probably conspire with others to engage in acts of espionage or sabotage. The plan also authorized the establishment of concentration camps for detaining the accused, but no trial.
Three times since 1984, FEMA stood on the threshold of taking control of the nation. Once under President Reagan in 1984, and twice under President Bush in 1990 and 1992. But under those three scenarios, there was not a sufficient crisis to warrant risking martial law. Most experts on the subject of FEMA and Martial Law insisted that a crisis has to appear dangerous enough for the people of the United States before they would tolerate or accept complete government takeover. The typical crisis needed would be threat of imminent nuclear war, rioting in several U.S. cites simultaneously, a series of national disasters that affect widespread danger to the populous, massive terrorist attacks, a depression in which tens of millions are unemployed and without financial resources, or a major environmental disaster.


THREE TIMES FEMA STOOD BY READY FOR EMERGENCYIn April 1984, President Reagan signed Presidential Director Number 54 that allowed FEMA to engage in a secret national "readiness exercise" under the code name of REX 84. The exercise was to test FEMA's readiness to assume military authority in the event of a "State of Domestic National Emergency" concurrent with the launching of a direct United States military operation in Central America. The plan called for the deputation of U.S. military and National Guard units so that they could legally be used for domestic law enforcement. These units would be assigned to conduct sweeps and take into custody an estimated 400,000 undocumented Central American immigrants in the United States. The immigrants would be interned at 10 detention centers to be set up at military bases throughout the country.


REX 84 was so highly guarded that special metal security doors were placed on the fifth floor of the FEMA building in Washington, D.C. Even long-standing employees of the Civil Defense of the Federal Executive Department possessing the highest possible security clearances were not being allowed through the newly installed metal security doors. Only personnel wearing a special red Christian cross or crucifix lapel pin were allowed into the premises. Lt. Col. Ollie North was responsible for drawing up the emergency plan, which U.S. Attorney General William French Smith opposed vehemently. The plan called for the suspension of the Constitution, turning control of the government over to FEMA, appointment of military commanders to run state and local governments and the declaration of Martial Law. The Presidential Executive Orders to support such a plan were already in place. The plan also advocated the rounding up and transfer to "assembly centers or relocation camps" of a least 21 million American Negroes in the event of massive rioting or disorder, not unlike the rounding up of the Jews in Nazi Germany in the 1930s.


The second known time that FEMA stood by was in 1990 when Desert Storm was enacted. Prior to President Bush's invasion of Iraq, FEMA began to draft new legislation to increase its already formidable powers. One of the elements incorporated into the plan was to set up operations within any state or locality without the prior permission of local or state authorities. Such prior permission has always been required in the past. Much of the mechanism being set into place was in anticipation of the economic collapse of the Western World. The war with Iraq may have been conceived as a ploy to boost the bankrupt economy, but it only pushed the West into deeper recession.


The third scenario for FEMA came with the Los Angeles riots after the Rodney King brutality verdict. Had the rioting spread to other cities, FEMA would have been empowered to step in. As it was, major rioting only occurred in the Los Angeles area, thus preventing a pretext for a FEMA response.


On July 5, 1987, the Miami Herald published reports on FEMA's new goals. The goal was to suspend the Constitution in the event of a national crisis, such as nuclear war, violent and widespread internal dissent, or national opposition to a U.S. military invasion abroad. Lt. Col. North was the architect. National Security Directive Number 52 issued in August 1982, pertains to the "Use of National Guard Troops to Quell Disturbances."
The crux of the problem is that FEMA has the power to turn the United States into a police state in time of a real crisis or a manufactured crisis. Lt. Col. North virtually established the apparatus for dictatorship. Only the criticism of the Attorney General prevented the plans from being adopted. But intelligence reports indicate that FEMA has a folder with 22 Executive Orders for the President to sign in case of an emergency. It is believed those Executive Orders contain the framework of North's concepts, delayed by criticism but never truly abandoned.
The crisis, as the government now see it, is civil unrest. For generations, the government was concerned with nuclear war, but the violent and disruptive demonstrations that surrounded the Vietnam War era prompted President Nixon to change the direction of emergency powers from war time to times of domestic unrest. Diana Raynolds, program director of the Edward R. Murrow Center, summed up the dangers of FEMA today and the public reaction to Martial Law in a drug crisis: "It was James Madison's worst nightmare that a righteous faction would someday be strong enough to sweep away the Constitutional restraints designed by the framers to prevent the tyranny of centralized power, excessive privilege, an arbitrary governmental authority over the individual. These restraints, the balancing and checking of powers among branches and layers of government, and the civil guarantees, would be the first casualties in a drug-induced national security state with Reagan's Civil Emergency Preparedness unleashed. Nevertheless, there would be those who would welcome NSC (National Security Council) into the drug fray, believing that increasing state police powers to emergency levels is the only way left to fight American's enemy within. In the short run, a national security state would probably be a relief to those whose personal security and quality of life has been diminished by drugs or drug related crime. And, as the general public watches the progression of institutional chaos and social decay, they too may be willing to pay the ultimate price, one drug free America for 200 years of democracy."


The first targets in any FEMA emergency would be Hispanics and Blacks, the FEMA orders call for them to be rounded up and detained. Tax protesters, demonstrators against government military intervention outside U.S. borders, and people who maintain weapons in their homes are also targets. Operation Trojan Horse is a program designed to learn the identity of potential opponents to martial law. The program lures potential protesters into public forums, conducted by a "hero" of the people who advocates survival training. The list of names gathered at such meetings and rallies are computerized and then targeted in case of an emergency.
The most shining example of America to the world has been its peaceful transition of government from one administration to another. Despite crises of great magnitude, the United States has maintained its freedom and liberty. This nation now stands on the threshold of rule by non-elected people asserting non-Constitutional powers. Even Congress cannot review a Martial Law action until six months after it has been declared. For the first time in American history, the reigns of government would not be transferred from one elected element to another, but the Constitution, itself, can be suspended.
The scenarios established to trigger FEMA into action are generally found in the society today, economic collapse, civil unrest, drug problems, terrorist attacks, and protests against American intervention in a foreign country. All these premises exist, it could only be a matter of time in which one of these triggers the entire emergency necessary to bring FEMA into action, and then it may be too late, because under the FEMA plan, there is no contingency by which Constitutional power is restored.

By Harry V. Martin with research assistance from David Caulhttp://educate-yourself.org/nwo/FEMAsecretgovt1995.shtml


"Western Hemisphere Travel Initiative"



Areas that fall under the WHTI:
Canada
Mexico
Bermuda
The Caribbean region (includes 17 regions)

AIR TRAVEL

ALL PERSONS traveling by air outside of the United States are required to present a passport or other valid travel document to enter or re-enter the United States.LAND AND SEA TRAVELThe following summarizes information available on the Department of Homeland Security’s website.


CURRENTLY: U.S. citizens need to present either (a) a passport, passport card (scheduled to be in full production beginning in July 2008), or WHTI-compliant document; or (b) a government-issued photo ID, such as a driver’s license, along with proof of citizenship, such as a birth certificate.


LATER:On June 1, 2009, the U.S. government will implement the full requirements of the land and sea phase of WHTI. The proposed rules require most U.S. citizens entering the United States at sea or land ports of entry to have a passport, passport card, or WHTI-compliant document.


Note: The passport requirement does NOT apply to U.S. citizens traveling to or returning directly from a U.S. territory.


U.S. PASSPORT AND WHTI COMPLIANT DOCUMENTS:
U.S. Passport: U.S. citizens may present a valid U.S. passport when traveling via air, land or sea between the U.S. and the aforementioned Western Hemisphere countries.
The Passport Card: Passport card applications are currently being accepted in anticipation of land border travel document requirements. Based on current projections, we expect the passport card to be in full production beginning in July 2008. We will provide additional updates as available. Once in production, the passport card it will only be valid for land and sea travel between the U.S. and Canada, Mexico, the Caribbean region, and Bermuda.
WHTI-Compliant Travel Documents for U.S. citizen travel via land or sea, as of January 31, 2008:

Trusted Traveler Cards (NEXUS, SENTRI, or FAST)
State Issued Enhanced Driver’s License (when available)
Enhanced Tribal Cards (when available)
U.S. Military Identification with Military Travel Orders
U.S. Merchant Mariner Document when traveling in conjunction with official maritime business
Native American Tribal Photo Identification Card
Form I-872 American Indian Card


For further information see U.S. Customs and Border protection.
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Not One Dime!




Mike Whitney – ICH October 1, 2008


For nearly a year, we have been asking ourselves why the investors and foreign banks that bought up hundreds of billions of dollars of worthless mortgage-backed securities (MBS) from US investment banks have not taken legal action against these same banks or initiated a boycott of US financial products to prevent more people from getting ripped off? Now we know the answer. It's because, behind the scenes, Henry Paulson and Co. were working out a deal to dump the whole trillion dollar mess on the US taxpayer. That's what this whole $700 billion boondoggle is all about; wiping out the massive debts that were generated in the biggest incident of fraud in history. Rep Brad Sherman explained it like this last night to Larry Kudlow: "It (The bill) provides hundreds of billions of dollars of bailouts to foreign investors. It provides no real control of Paulson's power. There is a critique board but not really a board that can step in and change what he does. It's a $700 billion program run by a part-time temporary employee and there is no limit on million dollar a month salaries....... It's very clear. The Bank of Shanghai can transfer all of its toxic assets to the Bank of Shanghai of Los Angeles which can then sell them the next day to the Treasury. I had a provision to say if it wasn't owned by an American entity even a subsidiary, but at least an entity in the US, the Treasury can't buy it. It was rejected. The bill is very clear. Assets now held in China and London can be sold to US entities on Monday and then sold to the Treasury on Tuesday. Paulson has made it clear he will recommend a veto of any bill that contained a clear provision that said if Americans did not own the asset on September 20th that it can't be sold to the Treasury. Hundreds of billions of dollars are going to bail out foreign investors. They know it, they demanded it and the bill has been carefully written to make sure it can happen." So, why hasn't the Treasury Secretary explained the real purpose of the bailout to the American people? Could it be that he knows that his $700 billion bailout would end up like the Hindenburg, vanishing in sheets of flames? This is a terrible bill, and it confers absolute authority on one of the central players in the scandal, Henry Paulson, who was the Chairman of Goldman Sachs at the time this MBS garbage was being peddled around the planet to credulous investors. Now Paulson will be in a position to buy up any "troubled asset" he that he believes could pose a threat to "financial market stability". That's just great! It is clear that Paulson will use his unchecked powers to wipe the slate clean and remove any possibility that foreign investors will take legal action against the real perpetrators; the giant Wall Street investment banks. So, how do the American people like paying off Paulson and Co. future legal bills? Is that how taxpayer revenue should be spent instead of on education, health care and infrastructure? There's another reason why Paulson is working so hard to pass the Bailout for Tycoons Bill; it's a windfall for the banking giants. Citi did not simply pick up Wachovia by happenstance nor did JP Morgan purchase Washington Mutual because it wanted to perform its civic duty and prevent a full-system meltdown. No way; they were clearly aware of the way the wind was blowing. In fact, neither case manages to pass the smell test. This is from AP's Sara Lepro: "Citigroup agreed Monday to purchase Wachovia's banking operations for $2.1 billion in a deal arranged by federal regulators, making the Charlotte-based bank the latest casualty of the widening global financial crisis. The deal greatly expands Citigroup's retail franchise—giving it a total of more than 4,300 U.S. branches and $600 billion in deposits—and secures its place among the U.S. banking industry's Big Three, along with Bank of America Corp. and JP Morgan Chase & Co. But it comes at a cost: Citigroup Inc. said it will slash its quarterly dividend in half to 16 cents. It also will dilute existing shareholders by selling $10 billion in common stock to shore up its capital position. In addition to assuming $53 billion worth of debt, Citigroup will absorb up to $42 billion of losses from Wachovia's $312 billion loan portfolio, with the Federal Deposit Insurance Corp. agreeing to cover any remaining losses. Citigroup also will issue $12 billion in preferred stock and warrants to the FDIC. (Ed; Here's the punch line) "The government's proposed $700 billion rescue plan for financial institution, being voted on Monday by the House of Representatives, likely will prove of added benefit to Citi. While the plan broadly aims to prevent banks from profiting on the sale of troubled assets to the government, there is an exception made for assets acquired in a merger or buyout, or from companies that have filed for bankruptcy. This could allow Citigroup to sell toxic mortgages and other assets it gained from Wachovia for a higher price than the bank actually paid for them." ("Citigroup to buy Wachovia banking operations" Huh?!? So Citi not only gets an army of depositors (the cheapest capital available!) but, at the same time, is going to be able to dump it's mortgage-backed junk on the taxpayer? And, guess what? The JP Morgan deal looks nearly identical. Is this "insider baseball" or not? Does anyone want to wager that G-Sax will also get a privileged spot at the public trough sucking up billions of taxpayer dollars to patch together its tattered balance sheet? And what will the net result of Paulson's Bailout for Fraudsters be; more consolidation of the financial industry and the utter annihilation of local and regional banks. That's a sure thing. The mom and pop banks across the country are going to take it in the stern sheets if this bill is passed. Bet on it. The country has no time for this cynical scavenger-hunt. The system is listing badly and we have ONE chance to get this emergency bill right. There is no way an industry rep like Henry Paulson, who has spent his entire career feathering his own nest and handing out plums to his buddies, can operate in the best interests of the American people. Paulson has got to go! According to Bloomberg News , Sept 29: "The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression. The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed's emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone." (Bloomberg) Get it? The Fed has ALREADY brushed aside Congress's "No" vote and pumped money into the system; and look what happened. Nothing! Libor is still at historic highs, the Ted spread has widened to record levels and interbank lending is grinding to a standstill. There's a run on the money markets that is reducing the ability of businesses to turn over short term debt. The system is shutting down, folks, and Paulson's snake oil won't help. Why throw another $700 billion down a rathole? 400 reputable economists--not the "faith based" industry hacks that work for the Bush administration--are opposed to this bailout. It has to be stopped. This is a "real time" meltdown and it requires real solutions, not bailouts for foreign creditors and Wall Street Goliaths. (Foreign victims of this scam will have to sue the perpetrators not the US taxpayer) As Nouriel Roubini, chairman of Roubini Global Economics, points out, we are on the verge of the "mother of all bank runs", a cross-border savaging of reserves that would crash the entire financial system. Here's Roubini on the next shoe to drop: "The next step of this panic could become the mother of all bank runs, i.e. a run on the trillion dollar plus of the cross border short-term interbank liabilities of the US banking and financial system as foreign banks as starting to worry about the safety of their liquid exposures to US financial institutions; such a silent cross border bank run has already started as foreign banks are worried about the solvency of US banks and are starting to reduce their exposure. And if this run accelerates - as it may now - a total meltdown of the US financial system could occur. We are thus now in a generalized panic mode and back to the risk of a systemic meltdown of the entire financial system. And US and foreign policy authorities seem to be clueless about what needs to be done next. Maybe they should today start with a coordinated 100 bps reduction in policy rates in all the major economies in the world to show that they are starting to seriously recognize and address this rapidly worsening financial crisis." (Nouriel Roubini's EconoMonitor) We have no time for Paulson's self serving shenanigans. This is not how one goes about recapitalizing the banking system or bringing stability to the financial system. It's time to get rid of the lobbyists and banking vermin and bring in the economists and the people with real experience. Paulson's plan is loser. Not one dime should go to this latest Wall Street swindle. No bailout!





Last updated 02/10/2008