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On
the day following the 221st anniversary of the
signing of the U.S. Constitution, WTP Chairman and
constitutional activist Robert Schulz today filed a
federal lawsuit in United States District Court in
Albany seeking to halt the execution of the
emergency bailout of American International Group,
Inc. (AIG) by the United States Government and the
Federal Reserve.
The lawsuit asserts that the commitment of public
funds and credit for the direct benefit of privately
owned AIG is an ultra vires action by the United
States Government and Federal Reserve, i.e.,
beyond the limited legal authority granted by the
Constitution. The lawsuit asks for a "show cause"
hearing demanding that the Government produce
evidence of its legal authority to commit public
funds for such a purpose, as well as emergency and
permanent injunctions halting the bailout
transaction.
Beyond the Constitutional deficiencies, the bailout
establishes a dangerous precedent enabling the Fed
and/or Government to nationalize virtually any
business or property within the United States
without legal authority or congressional approval.
The defendants include the Federal Reserve System,
Fed Chairman Ben Bernanki, the U.S. Treasury,
Treasury Secretary Hank Paulson Jr. and the United
States Government.
The
WTP Foundation today issued a
press release citing Schulz:
"Beyond the moral hazard and dangerous precedent
established by this action, it is of vital
importance that the American people recognize that
the present financial crisis is a direct and
predictable result of decades of constitutional
violations by the Federal Government. Through
a long-standing policy of disinformation and
collusion with the Federal Reserve and Wall Street
financial elite, the United States Federal
Government has denied public access to information
about the secretive operations of the privately
owned and operated Federal Reserve and its monopoly
control of America’s money system.
"This monopoly control of our currency by a private
banking cartel has resulted in increasing
distortion, volatility and cyclical (boom and bust)
economic conditions in the U.S. and abroad.
America’s fiat currency (produced from thin air) is
manipulated by the Federal Reserve for the benefit
of its owners, major Wall Street financial
institutions and the Federal Government and is not
unaccountable to the taxpayers. These abuses of the
Constitution have taken our financial system to edge
of the abyss. The chickens have come home to roost."
Click here to read the
Complaint, the
Memorandum of Law supporting the TRO, and
Schulz's Declaration which includes several
recent articles from the New York Times.
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