Date: Tue, 9 Jan 96 06:44 EST From: Daniel Kuehne <daniel.kuehne@aen.org>

Subject: Rubinhood

Below, are two very revealing articles. The articles, one from "The Wall Street Journal" and the other from "The Philadelphia Inquirer," clearly demonstrate the unConstitutional actions of the Treasury Department and the fact that these actions are enthusiastically supported by Wall Street. As always, highly inflammatory commentary has been included. -------------------------------------------------------------------

Title: GOP Threats Against Rubin Roil Markets The Wall Street Journal January 5, 1996, p. A3 by staff reporters David Wessel & Greg Hitt (emphasis added)

WASHINGTON - A senior House Republican, startling financial markets, suggested that House leaders would consider IMPEACHING Treasury Secretary Robert Rubin if the administration continues to circumvent the legal limit on government borrowing. "If he goes much further, without a doubt, that's an impeachable act," said Rep. Gerald Solomon (R.,N.Y.), suggesting that Mr. Rubin's actions to date have STRETCHED THE LIMITS OF THE CONSTITUTION. "When it reaches a point where there's no doubt, of course, we'll take action." Rep. Solomon made his remarks to a reporter after Mr. Rubin met with House Republicans. Mr. Rubin had reiterated that the Treasury will have to consider ADDITIONAL EXTRAORDINARY FINANCIAL MANEUVERS TO AVOID DEFAULT IN EARLY FEBRUARY, unless Congress and the president agree to lift the $4.9 trillion debt limit. Stock Market Plunges

THE STOCK MARKET REACTED SWIFTLY TO THE IMPEACHMENT THREAT, WITH THE DOW JONES INDUSTRIAL AVERAGE DROPPING MORE THAN 50 POINTS WITHIN MINUTES AFTER THE NEWS HIT WALL STREET AT ABOUT 2 P.M. EST.

<snip>

Republicans have tried to use the need for an increase in the debt ceiling as a lever in budget talks with President Clinton. BUT THEY HAVE BEEN FRUSTRATED THAT MR. RUBIN HAS FOUND WAYS, APPROVED BY THE JUSTICE DEPARTMENT, TO KEEP BORROWING MONEY NONETHELESS. Some Republicans have complained that Mr. Rubin misled them by making an increase in the debt ceiling seem crucial and then finding ways to avoid default when it wasn't lifted.

"WE EXPECT THE SECRETARY OF THE TREASURY WILL COMPORT WITH THE CONSTITUTION AND THE STATUTES," said Rep. Chris Cox (R., Calif.). "THIS IS A QUESTION OF... THE SYSTEM OF CHECKS AND BALANCES BETWEEN THE LEGISLATIVE AND EXECUTIVE BRANCHES. USURPATION OF THE LEGISLATIVE'S POWER OF THE PURSE WILL NOT BE TAKEN LIGHTLY."

No Hopeful Rhetoric

The markets have shrugged off other harsh public comments about Mr. Rubin. But on a day when there wasn't any hopeful rhetoric about reaching an agreement to balance the budget, MR. SOLOMON'S EARLY AFTERNOON REMARKS PUT THE STOCK AND BOND MARKETS INTO REVERSE.

"IT RAISES THE QUESTION THAT IF CONGRESS SUCCESSFULLY CHALLENGES RUBIN'S MANEUVERS WITH THE DEBT CEILING, ARE WE BACK TO THE ISSUE OF THE U.S.'S CREDITWORTHINESS?" asked Kevin Flanagan, an economist at Dean Witter Reynolds Inc.

The Treasury's top spokesman, Howard Schloss, labeled impeachment talk "a political ploy," and said Republicans "are trying to change the subject from THEIR shutdown of the federal government to THEIR failure to pass an increase in the debt limit." MR. RUBIN LATE LAST YEAR MOVED $61.3 BILLION IN TWO GOVERNMENT-EMPLOYEE RETIREMENT TRUST FUNDS OUT OF TREASURY BILLS AND INTO IDLE CASH, ALLOWING THE GOVERNMENT TO SELL THAT MUCH OF DEBT WITHOUT BREACHING THE DEBT LIMIT. At the end of December, he stopped one of the trust funds from investing a $14.5 billion interest payment in Treasury securities. HE HASN'T SAID WHAT OPTIONS HE IS CONSIDERING FOR FEBRUARY, WHEN THE TREASURY AGAIN FACES A CRUNCH. No one in the House has initiated formal impeachment proceedings against Mr. Rubin. In the unlikely event that the House did impeach Mr. Rubin, he would be tried by the Senate and removed from office if two-thirds of the Senate voted to convict him.

------------------------------------------------------------------- WARNING: HIGHLY INFLAMMATORY COMMENTARY BELOW <FLAMETHROWER ON> (Note: my comments are bounded by ***********) -------------------------------------------------------------------

"WASHINGTON - A senior House Republican, startling financial markets, suggested that House leaders would consider IMPEACHING Treasury Secretary Robert Rubin if the administration continues to circumvent the legal limit on government borrowing."

****************************************************************** New World Order stooge Robert Rubin should have been impeached LONG AGO. Being the head of the Treasury Department, he was (and is) directly responsible for the storm-trooper tactics of the BATF.

******************************************************************

"'If he goes much further, without a doubt, that's an impeachable act,' said Rep. Gerald Solomon (R.,N.Y.), suggesting that Mr. Rubin's actions to date have STRETCHED THE LIMITS OF THE CONSTITUTION. 'When it reaches a point where there's no doubt, of course, we'll take action.'"

***************************************************************** Although at first glance, Mr. Solomon's remarks sound patriotic, he is in effect saying that Mr. Rubin's actions to date have been WITHIN Constitutional bounds, albeit barely. This is utter nonsense. For instance, in a "The Philadelphia Inquirer" article entitled "Treasury will issue IOUs to stay solvent" (Cynthia Mayer, November, 14, 1995, p. D1), it is revealed that (emphasis added): ******************************************************************

<Begin Article>

New York - The Treasury Department sidestepped a DEFAULT on government securities yesterday, announcing plans to RAID TWO GOVERNMENT PENSION AND SAVINGS FUNDS, if necessary, RATHER THAN STIFF INVESTORS when their interest is due tomorrow. IN A MOVE THAT IMMEDIATELY CALMED MARKETS AND INVESTORS, Treasury Secretary Robert Rubin announced plans to raise $105 billion by auctioning securities this week that Treasury will pay for by essentially BORROWING FROM TWO GOVERNMENT TRUST FUNDS.

<SNIP>

RATHER THAN WAIT FOR A POLITICAL SOLUTION, RUBIN TOOK MATTERS INTO HIS OWN HANDS YESTERDAY AND ANNOUNCED AN EMERGENCY PLAN UNDER WHICH THE TREASURY COULD ESSENTIALLY BORROW FROM GOVERNMENT TRUST FUNDS IN ORDER TO PAY OFF THE DEBT. Under the plan, which has not yet gone into effect, the government would use the Civil Service Retirement and Disability Fund and the Federal Employees Retirement System's Government Securities Investment Fund, known as the "G-Fund."

<SNIP>

Treasury would borrow from the funds in a convoluted fashion: As government securities held by the funds mature, Treasury would not pay back the securities. INSTEAD, IT WOULD SUPPLY AN IOU TO THE FUNDS. THEN TREASURY WOULD TURN AROUND AND ISSUE NEW GOVERNMENT SECURITIES FOR THE EQUIVALENT AMOUNT TO THE PUBLIC. SINCE IOUs GIVEN TO THE TRUST FUNDS DON'T OFFICIALLY COUNT AS GOVERNMENT DEBT, TREASURY COULD CONTINUE SWAPPING IOUs FOR FRESH DEBT INDEFINITELY WITHOUT BUMPING INTO ITS $4.9 TRILLION CEILING. And given the size of these and other government trusts, INCLUDING THAT USED FOR SOCIAL SECURITY, the Treasury could hold out a long time under this system, say bond experts. <End of Article>

***************************************************************** In light of this, how can Mr. Solomon indicate that the Treasury Department has merely "stretched the limits of the Constitution" and thus far has not exceeded those limits? Is, in fact, Mr. Solomon indicating that robbing money which the American people have entrusted to the federal government and replacing it with IOUs, in order to appease bond investors, is somehow justified by the Constitution, albeit barely? God forbid. Mr. Rubin should be TRIED and CONVICTED of HIGH TREASON <yes, that's H-I-G-H T-R-E-A-S-O-N for any spooks out there> for even suggesting such an idea. If this isn't treasonous, what is? *****************************************************************

"Rep. Solomon made his remarks to a reporter after Mr. Rubin met with House Republicans. Mr. Rubin had reiterated that the Treasury will have to consider ADDITIONAL EXTRAORDINARY FINANCIAL MANEUVERS TO AVOID DEFAULT IN EARLY FEBRUARY, unless Congress and the president agree to lift the $4.9 trillion debt limit."

***************************************************************** What? After outlining his plan to rob money from the government trust funds and replace it with IOUs, less than two months earlier, Mr. Rubin is actually going to consider ADDITIONAL EXTRAORDINARY FINANCIAL MANEUVERS. Whoaaaaa! Would one of his "extraordinary financial maneuvers" include monetizing the national debt, which would lead to hyperinflation and the complete collapse of the American economy? If so, then Harry Figgie's bestseller "Bankruptcy 1995" will be only one year off the mark. Sounds to me like it's time to start hoarding GOLD and SILVER coins (in addition to tons of FOOD, GUNS, and AMMUNITION). *****************************************************************

"THE STOCK MARKET REACTED SWIFTLY TO THE IMPEACHMENT THREAT, WITH THE DOW JONES INDUSTRIAL AVERAGE DROPPING MORE THAN 50 POINTS WITHIN MINUTES AFTER THE NEWS HIT WALL STREET AT ABOUT 2 P.M. EST."

************* How fitting! *************

"Republicans have tried to use the need for an increase in the debt ceiling as a lever in budget talks with President Clinton. BUT THEY HAVE BEEN FRUSTRATED THAT MR. RUBIN HAS FOUND WAYS, APPROVED BY THE JUSTICE DEPARTMENT, TO KEEP BORROWING MONEY NONETHELESS."

***************************************************************** This is a PRIME example of how the executive branch of the federal government has usurped the monetary authority of the legislative. I wish that any "we must work through the system" patriots out there would please outline for me how such gross usurpation of power can ever realistically be corrected. We must ALL recognize that when such tremendous usurpation occurs, it destroys our beloved "system," and thus, things can never be corrected by merely "working through the system." As ugly as it is, acknowledging this fact does have one DISTINCT ADVANTAGE namely: IT IS THE TRUTH <...and the truth shall make you free>. As Winston Churchill stated: "Once in their lifetimes, most people stumble across the truth, most get up, dust themselves off, and keep on walking." ALL patriots should recognize that the ONLY way that the government is going to get back in line with the Constitution is when they start FEARING the people again. Indeed, this is the ULTIMATE CHECK AND BALANCE against the tyranny of government. As Thomas Jefferson said: "When the government fears the people, that's liberty, but when the people fear the government, that's tyranny." Of course, it is quite possible that the government won't get back in line even then. If this is indeed the case, which I suspect that it is, then more drastic action MUST be taken (another Boston Tea Party?). If and WHEN this point is reached, there will be NO OTHER OPTIONS and we will all know it. *****************************************************************

"WE EXPECT THE SECRETARY OF THE TREASURY WILL COMPORT WITH THE CONSTITUTION AND THE STATUTES," said Rep. Chris Cox (R., Calif.). "THIS IS A QUESTION OF... THE SYSTEM OF CHECKS AND BALANCES BETWEEN THE LEGISLATIVE AND EXECUTIVE BRANCHES. USURPATION OF THE LEGISLATIVE'S POWER OF THE PURSE WILL NOT BE TAKEN LIGHTLY."

************* I agree 110% *************

"'IT RAISES THE QUESTION THAT IF CONGRESS SUCCESSFULLY CHALLENGES RUBIN'S MANEUVERS WITH THE DEBT CEILING, ARE WE BACK TO THE ISSUE OF THE U.S.'S CREDITWORTHINESS?' asked Kevin Flanagan, an economist at Dean Witter Reynolds Inc."

***************************************************************** What this ultra-liberal economist is REALLY saying is that if Congress forces the Treasury Department to remain within Constitutional bounds, it would be a bad thing because then all of the holders of Treasury securities would begin to question the creditworthiness of the United States, thus driving up interest rates. What else would you expect a Wall Street economist to say? *****************************************************************

"The Treasury's top spokesman, Howard Schloss, labeled impeachment talk 'a political ploy,' and said Republicans 'are trying to change the subject from THEIR shutdown of the federal government to THEIR failure to pass an increase in the debt limit.'"

***************************************************************** Of course Howard, EVERYTHING is the fault of the Republicans. *****************************************************************

"MR. RUBIN LATE LAST YEAR MOVED $61.3 BILLION IN TWO GOVERNMENT- EMPLOYEE RETIREMENT TRUST FUNDS OUT OF TREASURY BILLS AND INTO IDLE CASH, ALLOWING THE GOVERNMENT TO SELL THAT MUCH OF DEBT WITHOUT BREACHING THE DEBT LIMIT."

***************************************************************** In plain English, he replaced the money in government trust funds with IOUs. *****************************************************************

"HE HASN'T SAID WHAT OPTIONS HE IS CONSIDERING FOR FEBRUARY, WHEN THE TREASURY AGAIN FACES A CRUNCH."

***************************************************************** Of course not, why would he actually want to tell the American people what unConstitutional act he is going to do next so they will have time to prepare themselves by storing up food and guns? *****************************************************************

------------------------------------------------------------------- SCATHING COMMENTARY ON: "TREASURY WILL ISSUE IOUs TO STAY SOLVENT" -------------------------------------------------------------------

"The Treasury Department sidestepped a DEFAULT on government securities yesterday, announcing plans to RAID TWO GOVERNMENT PENSION AND SAVINGS FUNDS, if necessary, RATHER THAN STIFF INVESTORS when their interest is due tomorrow."

***************************************************************** Of course, we all know that Wall Street INVESTORS come before CONSTITUTIONAL PRINCIPLES. Robert Rubin was obviously taught this in International Banking 101. *****************************************************************

"IN A MOVE THAT IMMEDIATELY CALMED MARKETS AND INVESTORS, Treasury Secretary Robert Rubin announced plans to raise $105 billion by auctioning securities this week that Treasury will pay for by essentially BORROWING FROM TWO GOVERNMENT TRUST FUNDS."

***************************************************************** Notice how UNCONSTITUTIONAL actions CALM markets and investors down. How fitting! Personally, I'd rather live under Constitutional chaos than Communist-imposed calm. *****************************************************************

"RATHER THAN WAIT FOR A POLITICAL SOLUTION, RUBIN TOOK MATTERS INTO HIS OWN HANDS YESTERDAY AND ANNOUNCED AN EMERGENCY PLAN UNDER WHICH THE TREASURY COULD ESSENTIALLY BORROW FROM GOVERNMENT TRUST FUNDS IN ORDER TO PAY OFF THE DEBT."

***************************************************************** Of course, why wait for a POLITICAL SOLUTION when you can always declare an EMERGENCY and do whatever the hell you want, regardless of the Constitution? Oh, but wait a minute, I almost forgot, the patriots can always correct this gross usurpation simply by "working through the system." *****************************************************************

"Treasury would borrow from the funds in a convoluted fashion"

***************************************************************** Of course, why do anything in a simple, CONSTITUTIONAL way so the American people know EXACTLY what it is that we're doing? Let's make everything just as complicated as we possibly can so the people won't realize that we're USURPING their power and SUBVERTING the CONSTITUTION in the process. Let's fulfill the splendid vision of our legendary heroes Paul Warburg and Jacob Schiff. *****************************************************************

"As government securities held by the funds mature, Treasury would not pay back the securities."

***************************************************************** Of course not, never pay the American people back what is owed to them. This would be abiding TOO MUCH by the CONSTITUTION and since America now lives under the UNITED NATIONS CHARTER, we can't have that now can we? WARBURG and SCHIFF knew what's best for the American people, not those RACIST Founding Fathers. Now, if we can only convince the people of this simple fact. On second thought, why even try to convince them? The peasants make our monetary system more legitimate every day by spending our paper money and using our bank credit which continuously enslaves them. They must REALLY be stupid to think that they can pay off their debts by simply taking on more debt. When are they going to realize that they are our HUMAN-CATTLE and we are MILKING them for all they're worth? Don't those stupid BOVINE realize that the "national debt" and "deficit" are INSTITUTIONS that were founded in 1913 along with our Federal Reserve and IRS? Do those fools actually think that the deficit will just go away one day if the government becomes a little more "fiscally responsible"? Don't they realize that America has a debt-based economy, and therefore, if the deficit was eliminated or substantially reduced it would devastate the entire economy. We better stop teaching the "Rule of 72" in basic economics classes or else the people actually might begin applying it to the national debt and figure out that they have been had big-time. God forbid if they ever find out that since the national debt is continuously being financed with BORROWED DOLLARS, it would continue to skyrocket EVEN IF THE BUDGET WAS BALANCED. Just in case they find out, let's build a couple dozen more concentration camps to put them in and a couple more mountain hideouts for ourselves. *****************************************************************

"INSTEAD, IT WOULD SUPPLY AN IOU TO THE FUNDS. THEN TREASURY WOULD TURN AROUND AND ISSUE NEW GOVERNMENT SECURITIES FOR THE EQUIVALENT AMOUNT TO THE PUBLIC."

***************************************************************** Of course, pay off debt by merely creating more debt, thus keeping governments continually in debt to the international bankers: another golden rule of International Finance 101 taught by the prestigious Nathan Rothschild School of Economics. *****************************************************************

"SINCE IOUs GIVEN TO THE TRUST FUNDS DON'T OFFICIALLY COUNT AS GOVERNMENT DEBT"

***************************************************************** Of course not, why should government IOUs count as debt? This would show the American people what the national debt figure REALLY is, instead of the phoney numbers that they are given. *****************************************************************

"TREASURY COULD CONTINUE SWAPPING IOUs FOR FRESH DEBT INDEFINITELY WITHOUT BUMPING INTO ITS $4.9 TRILLION CEILING."

***************************************************************** Of course, let's ENCOURAGE HYPERINFLATION and the TOTAL COLLAPSE of the already WEAK American economy. This will create an EXCELLENT OPPORTUNITY for us to CREATE ORDER OUT OF CHAOS. We will declare a national state of EMERGENCY and round up all dissenters and their guns. We will then have the EXCUSE we need to IMPOSE the rest of our New World Order agenda and destroy all resistance at the same time. What a BRILLIANT plan, let's get busy. *****************************************************************

"And given the size of these and other government trusts, INCLUDING THAT USED FOR SOCIAL SECURITY, the Treasury could hold out a long time under this system, say bond experts."

***************************************************************** Do those stupid, working-age Americans actually believe that they are going to retire someday even when we already routinely tap the Social Security trust fund for money and replace it with IOUs? Do those bovine actually think that they somehow benefit from Social Security when if they had all of the money they contributed to invest on their own, they would retire with several hundred- thousand dollars in the bank due to the magic of COMPOUND INTEREST? If we taught them about the principles of INTER-GENERATIONAL ACCOUNTING in the public schools, those stupid peasants would realize that Social Security is merely a big Ponzi scheme that shifts an enormous amount of wealth from the young to the old. Don't they realize that this has kept America's debt-based economy moving along for a few more years, when theoretically it should have collapsed in the 1980's? Those stupid bovine should be grateful to Ronald Reagan for doubling the Social Security tax and keeping the party going for a few more years. Don't they realize that since the economy is getting close to collapsing again, we are pressuring politicians to gradually roll- back the retirement age? Don't they know that anyone younger than 50 doesn't have a hope-in-hell of retiring, and since everybody is in so much debt, they will serve us all of their days? God forbid if they find this out, there might be a violent revolution. *****************************************************************

... We now return to our regularly scheduled flame-throwing.

* Origin: Gun Control=Criminals & Gestapo vs. the Unarmed. (1:231/110.0)