September 16, 2008

US To Declare October ‘Economic Emergency’, Suspend Elections

By: Sorcha Faal, and as reported to her Western Subscribers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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