Emergency Banking Act

Is another “Bank Holiday” coming to America? Frankly, few people – this writer included – never knew what a Bank Holiday meant until receiving an email referencing and quoting Bob Chapman’s THE INTERNATIONAL FORECASTER.

I never heard of Bob Chapman either so I looked him up. He seems like he knows what he is talking about and from his bio has many, many years of experience in investment banking specializing in gold. If you view his web site above you can read all about him.

I did find the article interesting but it required some research. First I needed to get the meaning of and the background of “Bank Holiday” since the post began…

Bank Holiday Coming? Prepare?

In my research I found this same article posted on several sites and blogs. I have just picked one that I have linked above since I found the comments very interesting.(you should read them). In addition, the article references Harry Schultz who also seems to have credibility so to make your research easy I have linked his name to the bing search engine page where you can read about him as well.

This blog’s effort is to uncover the truth and report it as well as offer my own thoughts and opinions, let’s be clear about one thing and that is that just because it is on the internet it is not necessarily so. However, I believe there can be validity to this as I feel – as does Bob Chapman and Harry Schultz – that the worst is yet to come. I base this on information, research and knowledge of the mortgage industry as it relates to the banking industry.

So I offer all this up to you and you can form your own opinion. To be well informed is a necessity for our survival in what I have always maintained will be the most disastrous economic times in the history of our country.

Now to the basis of this story. Take a moment and go to the link below which details the Emergency Banking Act established under President Franklin D. Roosevelt, who our current President holds in very high regard and partially models his administration after his.

Emergency Banking Act – Wikipedia, the free encyclopedia

Here is the beginning of the outline of this Act.

The Emergency Banking Act (the official title of which was the Emergency Banking Relief Act) was an act of the United States Congress spearheaded by President Franklin D. Roosevelt during the Great Depression. It was passed on March 9, 1933. The act allowed a plan that would close down insolvent banks and reorganize and reopen those banks strong enough to survive. In summary, the provisions of the act were as follows:

Title I, Section 1. To affirm any orders or regulations the President or Secretary of the Treasury had given since March 4, 1933.

Title I, Section 2. To give the President the ability to declare a national emergency and have absolute control over the national finances and foreign exchange of the United States in the event of such an emergency.

Title I, Section 3. To authorize the Secretary of the Treasury to order any individual or organization in the United States to deliver any gold that they possess or have custody of to the Treasury in return for “any other form of coin or currency coined or issued under the laws of the United States”.

Title I, Section 4. To make it illegal for a bank to do business during a national emergency (per section 2) without the approval of the President.

Title II. To enable the Comptroller of the Currency (a post in the US Treasury) to take complete control of and operate any bank in the United States or its territories and to establish the terms and conditions under which bank is administered.

Title III. To allow banks to disown their debts with the permission of the Comptroller of the Currency and a majority vote of their stockholders.

Title IV, Section 401. To allow Federal Reserve banks to convert any US debt obligation (such as a bond) into cash at par value and any check, draft, banker acceptance, etc, into cash at 90% of its apparent value.

To read complete summary of the ACT please go to the link above

Basically it allows the President to declare a “bank holiday”, close the banks nationwide and then determine which ones can or will reopen. It was also the

Act that enabled the Treasury to remove gold bullion held by citizens.

Armed with this brief explanation of a Bank Holiday here is the Bob Chapman story. You can also view this article on BBS RADIO/The Original TNT Bulletin Board.

Sunday, June 21, 2009

Bank Holiday Coming? Prepare?

From Harry Schultz:

Dear Bob:

Bob Chapman’s Int’l Forecaster newsletter revealed (5/20) this startling intelligence (from within US State Dept & embassies):

”Some US embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of US cash to purchase currencies from those govts, quietly. But not £’s. Inside the State Dept there is a sense of sadness & foreboding that ‘something’ is about to happen, unknown re a date—just that within 180 days, but could be 120-150 days.”

Bob quotes another source that “Panasonic has told their people to be back in Japan by Sept 09.”

Harry Schultz, dean of newsletter writers, has quoted the Chapman letter of May 30 regarding US embassies being sent large amounts of cash with which to buy local *currencies, to last them a year. Here is Harry’s remarkable take on the situation:

“My HSL suspicion is that the elite plan another FDR style “bank holiday” of indefinite length, perhaps very soon, to let the insiders sort-out the bank mess which is getting more out of their control every day.*Insiders want/need to impose new bank rules. Widespread nationalization could result, already under way. It could also lead to a formal US$ devaluation, as FDR did by revaluing gold (& then confiscating it). But devalue against what? The euro? Doubtful. Gold? Maybe. Or vs. the IMF basket of currencies (which seems more likely)—& much in the news recently. Any kind of bank holiday will push the US$ lower, which may be a bonus benefit to their ongoing scenario of letting the $ fall. Such a fall would get the devaluation they want without having to declare it. In sum, the insiders want more bank & system control, fewer banks & a lower US$. A bank holiday would suit all their needs.

Obviously, U can’t open safeboxes if the banks are closed, so plan accordingly. All this is speculation, but we have to go with what we’ve got, scraps of info that point to certain possibilities. In any case such a closure will, IMO, come sooner or later, as the worst of the embedded derivatives are still to be faced. We are years away from solving them because the controllers don’t want to; their fingerprints are all over them. ***

PS: during the FDR bank holiday, thousands of banks never reopened; it was a face-saving way of shutting them down. I would guess the same would occur today; thousands have little or no net value, loaded with debt, bad mortgages.

••• *PPS: A Bob Chapman subscriber reported overhearing 2 FEMA jacketed men talking to a police chief in Calif. They wanted to federalize the police across the US. They (govt) would be closing banks in late Aug, early Sept & that it will get ugly.” Prepare for worst case, as any good Boy or Girl Scout would do.

I believe that our banks are still insolvent even though we are being told they are not. Wells Fargo and it new acquisition – Wachovia – are broke. CitiBank is broke, Fifth/Third Bank is broke, Bank of America is broke and the list goes on. We must ask the question concerning their solvency and we should get an answer.

If in fact, as Chqpman, Schultz and I believe, they are then it is iminent that the government will have to act to prevent a run on the banks. A run would certainly cause the demise of most banks as those banks do not have sufficient cash 0 nor are they required to have sufficient cash to cover everyone’s withdrawals. THE GOVERNMENT WOULD HAVE TO ACT which is what makes this story both believable and alarming.

Another reference to this letter I found intersting is the reference to PPS qupted from a Bob Chapman subscriber…

A Bob Chapman subscriber reported overhearing 2 FEMA jacketed men talking to a police chief in Calif. They wanted to federalize the police across the US. They (govt) would be closing banks in late Aug, early Sept & that it will get ugly.” Prepare for worst case, as any good Boy or Girl Scout would do.

I find some believability to this even though there is no evidence to verify it. I can believe this because FEMA is a National Federal Police Agency not a disaster emergency aid agency. It is believed that they are prepared for any civil unrest with the ability to act quickly and swiftly to put down any mass public activity. In fact, they have already termed civil unrest as low level terrorism giving them the power to arrest in mass. Detention centers are already in place around the country in a program called REX 84. These detention centers – mainly abandoned military bases are manned and equipped. It is also believed that FEMA has a contract with Wackenhut to provide prison buses to cart these masses to these detention centers.

There is even a story (rumor?) that these buses are driving around Phoenix, AZ as a test and training.

Does all this seem outrageous? Perhaps it does. but on the other hand, if you really take a look at what is happening, the transfer of wealth, the diversionary tactics by the government to lead us to believe things are getting better, that we are going to get health care and that the recession is almost over. None of which are happening. Most independant economists will tell you the same.

Conditions are worseningn. Commercial credit is in default and can be the next “meltdown” like the mortgage meltdown that seems to have precipitated this economic crisis. Consumer credit is defaulting by leaps and bounds and foreclosures are increasing.

Unemployment will hit double digits and is already much higher then the 9.5% being reported. In fact, a recent report indicated that we have had more unemployed in the past 16 months then in the past 8 years – well over 5 million people including professionals, white collar and blue collar employees not to mention the millions of recent college grads looking for work and finding it difficult to do so which will lead to a massive amount of student loan defaults..another down for the economy.

Believe it or not, that is up to you. But we must all be aware and be cautioned for as I have said many times in the past two years, “fasten your seat belts, this is going to be a long, rough ride”.

Be aware and be prepared for the worst. You owe it to yourself and your families. If the worst never comes so much the better but if it just might come then better to have been prepared then not prepared at all.

Is another “Bank Holiday” coming to America?

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