Wednesday, February 11, 2009

US was 3 hours away from Economic & Political Collapse in September 2008

According to Rep. Paul Kanjorski (D) (PA-11), in mid-September of 2008, the United States of America came just three hours away from the collapse of the entire economy. In a span of 2 hours, $550 billion was drawn out of money market accounts in an electronic run on the banks.
Rep. Kanjorski: "It would have been the end of our economic system and our political system as we know it."

Kanjorski's bombshell begins to detonate at roughly 2:10 into the video.

From the video:

"I was there when the secretary and the chairman of the Federal Reserve came those days and talked to members of Congress about what was going on... Here's the facts. We don't even talk about these things.

On Thursday, at about 11 o'clock in the morning, the Federal Reserve noticed a tremendous drawdown of money market accounts in the United States to a tune of $550 billion being drawn out in a matter of an hour or two.

The Treasury opened up its window to help. They pumped $105 billion into the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks.

They decided to close the operation, close down the money accounts, and announce a guarantee of $250,000 per account so there wouldn't be further panic and there. And that's what actually happened.

If they had not done that their estimation was that by two o'clock that afternoon, $5.5 trillion would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed.

Now we talked at that time about what would have happened if that happened. It would have been the end of our economic system and our political system as we know it. "

More here on this topic.

Here's the video's url:

http://www.youtube.com/watch?v=pD8viQ_DhS4

2 comments:

Anonymous said...

This is scary. What is more scary that such scenario is going to happen sooner or later. Maybe our way of life should end for it is as phony as the financial system is. Time to start building, producing and selling real products.

Anonymous said...

American style of capitalism (dog eat dog) has been responsible and guilty for at least 9 out of 10 world economic crisis.
The great depression was their fault for sure as is this maybe as great economic collapse.
If by now we did not realise that USA is the main problem in economic evolvement of the World, we'd never realise it and will continue with these ups and downs that only benefit a handful of rich and super rich mainly located in USA. Is the new admin. with Obama as new style leader going to change this? Let's hope it will. The very survival of all of us depends on it. There must be a better way to work and live. Maybe Americans should look at "old " Europe where number of countries have found the better way but they too are victimized by the American reckless way of life. It seems only Switzerland is able to keep the wolfs away with some damage to their banks due to some of them being as greedy as their American partners.
Yes folks America ain't what it seems to you who live in other countries and dream of emmigrating there. Think many times over before you make a move. You doctor in India will drive a cab in NYC. Is that your American dream? And so on. Stay where you are and improve your own country's future by staying away from American style capitalism. Beleve, it is a good advice.