To my Marketwatch friends: I appear to have been booted from Marketwatch (too much truth?). Please contact me and link or post the above essay. Thanks!
Derivatives are the key to the current financial collapse
Please copy and send to your U.S. congressman and senator. Present to state and local governments for resolutions. Feel free to link or repost. If reposting, please include a link back.
Proclamation To The Congress of the United States of America
WHEREAS the financial system of the United States of America and the world is currently loaded with collapsing derivatives contracts somewhere around $1 Quadrillion notional ($ 1000 Trillion);
WHEREAS the credit markets are frozen due to lack of liquidity, largely attributed to unsaleable paper, much of which are financial derivatives or tied into financial derivative schemes;
WHEREAS Congress and the Federal government do realize the existence of a problem;
WHEREAS the Treasury and the Federal Reserve are claiming, at this moment, that the problem, which has existed in extreme form for over one year, suddenly has become an emergency of such magnitude that Congress must supply a $700 billion window for the Treasury and Federal Reserve to use to purchase the unsaleable paper;
WHEREAS Congress is under extreme pressure to supply this funding, or be blamed for the consequences;
WHEREAS the consequences are being described as a "severe recession" to something akin to the "Great Depression";
WHEREAS many economists do not believe that the plan put up by the Treasury and Federal Reserve will actually solve the underlying problems;
WHEREAS the will of the people appears very negative to the proposed plan of the Treasury and Federal Reserve;
WHEREAS the policies of the Treasury and Federal Reserve are likely the cause of, or at least willing and encouraging agents in allowing the collapsing derivatives contracts to be created;
WHEREAS the "markets" appear to be "waiting" for news of the creation/approval of a plan;
WHEREAS Congress should be commended for showing some initial constraint;
IT IS CONCLUDED that the rushed plan of the Treasury and Federal Reserve appears to be FINANCIAL BLACKMAIL levied upon the United States of America, whether intentionally so or not;
It is hereby PROCLAIMED by those supporting this proclamation that Congress should not cave into the demands of the Treasury and Federal Reserve; That Congress should take whatever time it requires to investigate and come to understand the nature of the problem and create a suitable solution to the problem; That Congress take short term steps to improve market confidence and increase liquidity if required in cooperation with the Treasury and Federal Reserve; That Congress encourage the President and Presidential candidates (considering the near term transition) to reach out to our allies and other nations to assure them that the financial system is gaining Congressional attention and will be dealt with;
It is further PROCLAIMED that Congress consider the option of repealing the Federal Reserve System and placing it into a bankruptcy type situation as a medium term solution, and with the Executive communicating to and negotiating with other nations, working out an acceptable replacement of said system.