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Is Homeland Security Preparing for the Next Wall Street Collapse?

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Reports are that the Department of Homeland Security (DHS) is engaged in a massive, covert military buildup. An article in the Associated Press in February confirmed an open purchase order by DHS for 1.6 billion rounds of ammunition. According to an op-ed in Forbes, that's enough to sustain an Iraq-sized war for over twenty years. DHS has also acquired heavily armored tanks, which have been seen roaming the streets. Evidently somebody in government is expecting some serious civil unrest. The question is, why?

Recently revealed statements by former UK Prime Minister Gordon Brown at the height of the banking crisis in October 2008 could give some insights into that question. An article on BBC News on September 21, 2013, drew from an explosive autobiography called Power Trip by Brown's spin doctor Damian McBride, who said the prime minister was worried that law and order could collapse during the financial crisis. McBride quoted Brown as saying:

"If the banks are shutting their doors, and the cash points aren't working, and people go to Tesco [a grocery chain] and their cards aren't being accepted, the whole thing will just explode.

"If you can't buy food or petrol or medicine for your kids, people will just start breaking the windows and helping themselves.

"And as soon as people see that on TV, that's the end, because everyone will think that's OK now, that's just what we all have to do. It'll be anarchy. That's what could happen tomorrow."

How to deal with that threat? Brown said, "We'd have to think: do we have curfews, do we put the Army on the streets, how do we get order back?"

McBride wrote in his book Power Trip , "It was extraordinary to see Gordon so totally gripped by the danger of what he was about to do, but equally convinced that decisive action had to be taken immediately." He compared the threat to the Cuban Missile Crisis.

Fear of this threat was echoed in September 2008 by US Treasury Secretary Hank Paulson, who reportedly warned that the US government might have to resort to martial law if Wall Street were not bailed out from the credit collapse. 

In both countries, martial law was avoided when their legislatures succumbed to pressure and bailed out the banks. But many pundits are saying that another collapse is imminent; and this time, governments may not be so willing to step up to the plate.

The Next Time WILL Be Different

What triggered the 2008 crisis was a run, not in the conventional banking system, but in the "shadow" banking system, a collection of non-bank financial intermediaries that provide services similar to traditional commercial banks but are unregulated.  They include hedge funds, money market funds, credit investment funds, exchange-traded funds, private equity funds, securities broker dealers, securitization and finance companies. Investment banks and commercial banks may also conduct much of their business in the shadows of this unregulated system.

The shadow financial casino has only grown larger since 2008; and in the next Lehman-style collapse, government bailouts may not be available. According to President Obama in his remarks on the Dodd-Frank Act on July 15, 2010, "Because of this reform, . . . there will be no more taxpayer funded bailouts -- period."

Governments in Europe are also shying away from further bailouts. The Financial Stability Board (FSB) in Switzerland has therefore required the systemically risky banks to devise "living wills" setting forth what they will do in the event of insolvency. The template established by the FSB requires them to "bail in" their creditors; and depositors, it turns out, are the largest class of bank creditor. (For fuller discussion, see my earlier article here .)

When depositors cannot access their bank accounts to get money for food for the kids, they could well start breaking store windows and helping themselves. Worse, they might plot to overthrow the financier-controlled government. Witness Greece, where increasing disillusionment with the ability of the government to rescue the citizens from the worst depression since 1929 has precipitated riots and threats of violent overthrow

Fear of that result could explain the massive, government-authorized spying on American citizens, the domestic use of drones, and the elimination of due process and of "posse comitatus" (the federal law prohibiting the military from enforcing "law and order" on non-federal property). Constitutional protections are being thrown out the window in favor of protecting the elite class in power.

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Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling WEB OF DEBT. In THE PUBLIC BANK SOLUTION, her latest book, she explores successful public banking models historically and (more...)
 
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Is Homeland Security Preparing for the Next Wall ... by 911TRUTH on Wednesday, Oct 9, 2013 at 12:38:17 AM
The underlying foundation of people in this countr... by Cynthia Piano on Wednesday, Oct 9, 2013 at 10:22:11 AM
Excellent observation, Cynthia.  FEAR, False ... by Mark Adams JD/MBA on Wednesday, Oct 9, 2013 at 11:56:40 AM
Check out an interesting article by an economist a... by Mark Adams JD/MBA on Thursday, Oct 10, 2013 at 12:40:11 PM
"but what about those who are educated and should ... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:30:43 AM
Let us also consider the possibility that our gove... by Jonathan Huie on Wednesday, Oct 9, 2013 at 10:29:09 AM
That occurred to be too.  Maybe there's a pot... by Maxwell on Wednesday, Oct 9, 2013 at 10:37:31 AM
Spoken like a true Obot. The left hates the Tea Pa... by tincansailor on Wednesday, Oct 9, 2013 at 11:21:06 AM
I'm personally a prepper but let's not pretend pre... by Adam Smith on Wednesday, Oct 9, 2013 at 1:37:30 PM
The Tea Party is not a grassroots movement. The Te... by 911TRUTH on Thursday, Oct 10, 2013 at 12:36:52 AM
My impression is that it began as a grassroots mov... by Amy Schreiner on Thursday, Oct 10, 2013 at 1:11:55 AM
That's what I'd heard, too, Amy, but I highly doub... by 911TRUTH on Thursday, Oct 10, 2013 at 1:36:58 AM
Beg pardon but the original Tea Party really was m... by tincansailor on Thursday, Oct 10, 2013 at 1:30:00 PM
Howdy "Tincansailor". I consider myself to be of "... by Daniel Penisten on Thursday, Oct 10, 2013 at 12:44:29 PM
Hi Daniel, thanks for your thoughts on the Tea Par... by tincansailor on Thursday, Oct 10, 2013 at 2:03:29 PM
Let's say, just hypothetically of course, that the... by roy lutz on Wednesday, Oct 9, 2013 at 12:28:38 PM
You just wrote the comment I have been thinking ab... by Hosea McAdoo on Wednesday, Oct 9, 2013 at 12:55:48 PM
"Ask yourself, who gains the most power from the a... by Daniel Penisten on Thursday, Oct 10, 2013 at 12:59:16 PM
Remember Homeland Security is the American SS crea... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:36:29 AM
More realistic prediction: people positioned to gr... by Maxwell on Wednesday, Oct 9, 2013 at 10:29:42 AM
I think you got it Maxwell (Smart?).  This is... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:39:08 AM
Private bankers in charge of our currency and econ... by Lance Ciepiela on Wednesday, Oct 9, 2013 at 10:44:38 AM
And those Homeland Security weapons and ammunition... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:41:21 AM
Ellen, as usual you have found the soft spot in ou... by Paul from Potomac on Wednesday, Oct 9, 2013 at 11:15:53 AM
Ellen Brown's article is ominous, fraught with dan... by Clarc King on Wednesday, Oct 9, 2013 at 11:32:11 AM
"...the Hamiltonian credit system."Wasn't Hamilton... by Daniel Penisten on Thursday, Oct 10, 2013 at 1:08:12 PM
Yes, Alexander Hamilton was the champion for ... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:43:48 AM
It's an ongoing financial coup d'├ętat - of course... by Poor old Dirt farmer on Wednesday, Oct 9, 2013 at 12:03:30 PM
What is the DHS anyway, with 1.6 billion rounds of... by Ernie Messerschmidt on Wednesday, Oct 9, 2013 at 12:50:50 PM
'I think 911 was a coup and DHS was set up to prev... by 911TRUTH on Thursday, Oct 10, 2013 at 12:39:12 AM
I like Jesse Ventura too.  He represents more... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:53:42 AM
Ellen Brown is spot on with her analysis (as u... by Truth Will Prevail on Wednesday, Oct 9, 2013 at 1:56:53 PM
RE: "...President Obama in his remarks on the Do... by Walter J Smith on Wednesday, Oct 9, 2013 at 10:28:53 PM
I live in Central Florida.  This past Tuesday... by John Russell on Thursday, Oct 10, 2013 at 6:06:30 AM
Is this also why we hire mercenaries?  They d... by Teddi Curtis on Thursday, Oct 10, 2013 at 4:13:07 PM
Excellent article, but the question remains whethe... by Neal Chalabi Chambers on Friday, Oct 11, 2013 at 12:22:24 AM
The USA looks increasingly like the dying days of ... by Ted Newcomen on Friday, Oct 11, 2013 at 8:34:09 AM