By Jason Charles | Truth Alliance | Aug. 7, 2010
Wyoming governor shows his cards and declares his state bankrupt in an unusual attempt to coerce funds from the Federal Government by threatening to sell state land off to the highest bidder.
The London Guardian Recorded the Governor saying;
Freudenthal recently wrote to the interior department asking the federal government to trade the park land for mineral royalties. "If the federal government won't dance with us, we will go look for another partner," said Freudenthal. "The purpose is to force the federal government to come to the table."
This desperate plea for help from the Obama Administration by the State of Wyoming to raise funds is unfortunately misdirected and a logical fallacy - considering that the Federal Reserve and the big banks are the very institutions that have overseen the biggest collapse of failed institutions in many lifetimes. They have nothing to offer these States but fancy accounting and future insolvency.
For example in Denver Colorado a school district turned towards the banks to magically fix their massive deficit only to find that they strapped themselves to a derivative ticking time bond by JP Morgan.
In the spring of 2008, the Denver public school system needed to plug a $400 million hole in its pension fund. Bankers at JPMorgan Chase offered what seemed to be a perfect solution.
The bankers said that the school system could raise $750 million in an exotic transaction that would eliminate the pension gap and save tens of millions of dollars annually in debt costs — money that could be plowed back into Denver’s classrooms, starved in recent years for funds.
To members of the Denver Board of Education, it sounded ideal. It was complex, involving several different financial institutions and transactions. But Michael F. Bennet, now a United States senator from Colorado who was superintendent of the school system at the time, and Thomas Boasberg, then the system’s chief operating officer, persuaded the seven-person board of the deal’s advantages, according to interviews with its members.
Rather than issue a plain-vanilla bond with a fixed interest rate, Denver followed its bankers’ suggestions and issued so-called pension certificates with a derivative attached; the debt carried a lower rate but it could also fluctuate if economic conditions changed.
Well conditions changed and according to Jerome Corsi the now $600 trillion dollar derivative market is directly responsible for sending countries like Greece, Portugal, Iceland, Hungry going up in flames.
We have California trying to cut all Government employees to min. wage, Detroit is at %50 unemployment, and a recent report shows that 32 out of 56 states are bankrupt. We see the next round of bail outs will undoubtedly be the states which means very, very trying times ahead for all of us.
Indeed by every benchmark we are entering into a major depression era, heralded by unprecedented banking fraud and a congress that is as equally complicit. If states think a solution can come from the bankers and Federal Reserve for their debt woes, they are sadly mistaken.
Need we remind all Government employees the lessons of Bear Stearns, Lehman Brothers, AIG, and Goldman Sachs? Stop turning to the fed for solutions and turn toward the people you represent and have sworn to protect for solutions. Now is a time to assert your authority and sovereignty like Arizona, and throw off the liability of the Federal Government.
Stop begging for federal assistance and stand on your own feet, the 10th amendment and states rights doesn't just suggest this, no, it demands this of Governors and State legislators as suggested by Amb. Alan Keyes and many more. Do us all a favor and free us from Federal oppression, because it may only be the states now, but it will soon be the unsustainable federal government in the near future that fails.
What we are really seeing is a coup d'état by the Federal Government using this economic crisis as leverage against the states; we must all recognize the real power in this country as laid out in the Constitution and prevent our respective states from allowing this.