- 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 Bernanke, the U.S. Treasury, Treasury Secretary Hank Paulson
Jr. and the United States Government.
-
- Click here to read:
- Complaint, (http://www.wethepeoplefoundation.org/PROJECTS/AIG/AIG
- -Complaint-9-18-08.pdf )
- Memorandum of Law supporting the TRO,
- (http://www.wethepeoplefoundation.org/PROJECTS/AIG/AIG-
- MemoLawSupptTRO-9-18-08.pdf )
- Schulz's Declaration (http://www.wethepeoplefoundation.org/PROJECTS/AIG/AIG-Decl-Schulz-9-18-08.pdf )
- which includes several recent articles from the New York
Times.
-
- We The People Foundation For
- Constitutional Education, Inc.
- 2458 Ridge Road, Queensbury, NY 12804
- Tel: (518) 656-3578 Fax: (518) 656-9724
-
- info@givemeliberty.org
- www.givemeliberty.org
-
- FOR IMMEDIATE RELEASE: Contact: Bob Schulz
- September 18, 2008, 3:00 PM (518) 656-3578
-
- Federal Lawsuit Filed to Stop AIG Bailout
-
- U.S. Lacks Constitutional Authority for Emergency Loan
-
- QUEENSBURY, NY -- 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.
-
- According to available information regarding the transaction,
the Federal Reserve will loan AIG $85 billion dollars to stabilize its
financial crisis, in effect, using taxpayer money to fund the loan. In
consideration of taxpayer financing of the private bailout, the U.S. will
receive stock warrants for 79.9% of AIG stock.
-
- Schulz believes that, "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."
-
- Since 2002, the We The People Foundation and its supporters
have tried, thus far unsuccessfully, to get the Government to respond to
a number of First Amendment Petitions for Redress of violations of the
Constitution, including the Federal Reserve System's violation of the money
clauses of the Constitution. Had the Government honored the Constitution
and its obligation to respond to the citizens' Petitions for Redress, many
of the nation's financial and monetary problems could have been avoided.
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