Tag Archives: irs

Why There Won’t be Another Bailout, Courtesy of the Federal Reserve

federal reserve bailout

The 2008 Bailout:  Why it won’t happen one more time.

You  might feel like the problem has passed, but in 2008, the US  experienced only the tremors of a great and forthcoming economic collapse. Since then, Americans have been living in an economic depression the likes of which have not been seen for over 70 years, but which is only an opening tremor in comparison to the coming devastation of a coming huge economic earthquake. Although the major media outlets in cooperation with the federal government continue to report the overall economic situation to be recovering, no such thing is either possible or is really happening at all.

We are actually NOW in the midst of a severe economic depression,  

and the crash has not yet come to a conclusion. 2008 was only the beginning.

The 2008/2009 Bailout of the Major Banks – What happened?

Beginning in 2008, Goldman-Sachs, JP Morgan, Morgan Stanley, Lehmann, Citibank, and Bank of America, among a few others, all suffered conditions of insolvency that would have put them completely out of business were it not for the bailouts that arrived at the last moment from the Federal Reserve, and from a number of other related federal banking agencies. Here’s what happened in a nutshell.

A sudden burst in the real estate bubble caused millions of mortgages to be instantaneously over- valued.  Consequently millions of American mortgages began to go into foreclosure. Foreclosures in large quantities are bad for banks because they create an instant cash shortage. A huge drop in incoming mortgage payments compounded by the problem of needing to shed massive amounts of over evaluated property at a loss, meant that the business of loaning money could not go on unless there were simply more capital on hand.

 Federal Reserve to the rescue?

The Fed stepped in and fixed numerous bank insolvency threats by supplying huge amounts of cash to major banks. The problem was, the Fed itself didn’t really have the money to solve this crisis either. Sure, they had  a few tens of billions of dollars in the reserve, but what they needed was tens of TRILLIONS of dollars! Everyone seems to believe that the Fed always does and always will have cash on hand, but the fact is that Fed had to play some serious games to “create” the money needed to keep these major banks from going under in 2008.

Where the Fed Got the Bailout Money: Borrowing and Printing, Borrowing and Printing, Borrowing and Printing

The bottom line is that the money for the bailouts was created by just playing more dancing around and switcharoo games. The first thing the Fed did was to print about 4 trillion dollars, which make up the reserves that most US banks are still using to operate on. BUT….. that wasn’t nearly enough to handle this emergency!

So, the second thing the Federal Reserve did was to call up the European Central Bank (ECB) and cry “Help!”. Here is what they did with what they had to work with, after having printed as many trillion dollars as they could risk without creating unmanageable inflation.

The European Central Bank had a significant amount of dollar liabilities, owing at that time several trillion dollars to the US money market. So, the Fed effectively asked them to cough up as much of their debt as possible, and to do it immediately!  They came up with around 13 trillion dollars. Of course they didn’t have the dollars on hand to pay out, nor did they have enough Euros lying around in their own reserve to fill the Fed’s need. But since the ECB can print Euros, they did, and then they swapped newly printed Euros for newly printed dollars from the Fed, both of them backed by nothing. That is what was then supplied to fund the Federal Reserve.

Consequently this problem also affected the European money market too. Euros also had to be printed out of thin air. Contrary to popular belief, you can’t just print massive amounts of un-backed currency without inflationary effects. We’re talking about trillions of dollars and trillions of Euros, so it’s hard to imagine that solving the Fed’s problem with fresh crisp currency didn’t also have some negative impact on the value of the Euro.  But it worked, sort of. It was a well calculated risk, and neither the US economy  nor the European economy suffered its final crash as a result.

And what to do when the next emergency arises?

So, will the ECB still be able to continue to prop up the Federal Reserve the next time it has another unsolvable insolvency problem? It’s highly unlikely. Because the Fed continues to do business as usual, and because it has now reached the point of not generating enough revenue to pay even the interest on all of its own debts, an even bigger crash is assuredly coming.

Why  the dollar WILL  crash.

This time the crash will be based upon a sudden and complete loss of world confidence in the dollar. The world is quite aware of the financial perils of the Federal Reserve. It’s credit rating is bad now. When that lack of confidence causes the market for Treasury Bills and bonds to completely die, the Fed will lose its ability to inject any more cash into our system from other systems by just borrowing it. Lacking any other real significant source of income, its only remaining alternative will be to print more and more and more pure counterfeit currency. The result will be hyper-inflation.

Next time they’ll need MORE than mere tens of trillions!

Today the Federal Reserve is falsely looked upon as the hero of 2008 because of its quick thinking that resulted in finding a convenient solution with the European bank. The truth is that the Fed itself caused the very crash they managed to bail us out of with the help of the European Bank.

In the next and probably final crash, it won’t just be tens of trillions that will be needed. The size and volume of the losses that would be caused by hyper-inflation of the dollar would be far more than the ECB could possibly swallow.To implement another solution like that of 2008 would drag the Euro right down with the dollar.

Fasten your seat belts. You may think the ride is smooth now, but the ride ahead will not be. Read more about this topic at Jim Rickards’ blog.

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NBC: Obama IRS refunds ‘Illegals’ $4.2 billion for kids–in Mexico

we'll try to solve your tax problems as soon as we give millions of dollars in bonuses to our employees

So when politicians talk about how socialism is so kind and caring and a far superior brand of government than a conservative based approach – because of the need to help those less fortunate – who exactly are we referring to and where does it stop? Obviously the tax payers of the United States cannot be called upon to support everyone less fortunate in every country the entire world. Yet that’s what seems to be demanded of them.

Should United States Citizens be called upon to support children in other countries? Or should those countries be called upon to support their own citizens?

At this point, our government seems to be in a headlong race to bankrupt every productive citizen in the United States. Then the president can brag about cutting the deficit while he deliberately piles trillions onto the national debt.

Just recently it has come to light that IRS employees are paid billions of dollars a year in bonuses. Bonuses?!? For what? Being the best of the best at harassing taxpayers?

 

NBC: Obama IRS refunds ‘Illegals’ $4.2 billion for kids–in Mexico

This bombshell dropped on Monday in Washington, D.C., causing outrage throughout the halls of Congress, and now beyond, to the “genuine” taxpayers who have been robbed all across America

Investigative television reporter Bob Segall of Indianapolis NBC affiliate WTHR TV Channel 13, was contacted by a long-time central Indiana tax preparer, who blew the whistle on a multi-billion dollar tax fraud about which the IRS has done nothing, according to the TV news show video segment that aired on Monday.

“There is not a doubt in my mind there’s huge fraud taking place here,” he said, slowly flipping through the pages of a [heavily redacted] tax return.

“We’re talking about a multi-billion dollar fraud scheme here that’s taking place and no one is talking about it,” he said.

The scheme involves illegal immigrants that are filing tax returns, claiming child credits for multiple dependents under their support in “their” U.S. household, and collecting enormous cash refunds–such as one persons tax return that showed income of over $14,000, who collected a cash refund of over $10,300.

In 1996 during the Clinton Administration, theIndividual Tax Identification Number (ITIN) was created in order for both resident and non-resident aliens, regardless of immigration status, to fulfill their tax filing and payment obligations under IRS regulations–even though an ITIN does not confer the right to work and receive income in the United States.

This year tax preparation offices across the country were flooded by an estimated 2 million illegal immigrants, who in growing numbers have been taking advantage of a tax loophole called the Additional Child Tax Credit–a fully-refundable credit of up to $1000 per child–meant to ease the income tax burden on working families who have children living at home.

However, Segall’s investigation and reporting found many illegal immigrants who were claiming these tax credits, but for kids who live in Mexico–even listing nieces and nephews.

“We’ve seen sometimes 10 or 12 dependents, most times nieces and nephews, on these tax forms,” the whistleblower told Eyewitness News. “The more you put on there, the more you get back.”

After Segall reviewed many of the heavily redacted tax returns, it was still clear that the tax filers had received large tax refunds after claiming child tax credits for many dependents.

“Here’s a return right here: we’ve got a $10,3000 refund for nine nieces and nephews,” he said, pointing to the words “niece” and “nephew” listed on the tax forms nine separate times.

“We’re getting an $11,000 refund on this tax return. There’s seven nieces and nephews,” he said, pointing to another set of documents. “I can bring out stacks and stacks. It’s just so easy it’s ridiculous.”

Under agreement not to reveal their identity or filming them face on, Segall of WTHR was able to speak with several of the illegal immigrants who, using Segall’s translator–confirmed it is easy.

One of the workers, who was interviewed at his [appeared to be a 2 bedroom mobile home] in southern Indiana, admitted that four other illegal immigrants used his address to file tax returns–even though they don’t even live there.

These four workers claimed that not only they, but a total of 20 children between them–about 30 people–lived in the residence.

As a result, the IRS sent the illegal immigrants tax refunds totaling $29,608.

Upon Segall questioning the man regarding that incredible residency claim, he replied … “They don’t live here … the other kids are in their country of origin, which is Mexico,” later saying that none of the 20 children have ever visited the United States–let alone lived here.

Segall then asked why ‘undocumented workers’ should receive tax credits for children living in a foreign country, which is a violation of IRS tax rules?

“If the opportunity is there and they can give it to me, why not take advantage of it?”

Segall then met with Russell George, the U.S. Treasury Department’s Inspector General for Tax Administration, who stated … “The magnitude of the problem has grown exponentially,” but that the IRS has known about the problem for years.

Mr. George said his department has repeatedly warned the IRS that additional child tax credits are being abused by undocumented workers–in 2009 alone, their annual audit report showed that ITIN tax filers received about $1 billion in additional child tax credits.

The same audit report from 2010 showed it cost the American tax payers more than $4.2 billion.

“Keep in mind, we’re talking $4 billion per year.” George continued by saying “It’s very troubling” that the IRS has not taken any action on the matter–despite these multiple warnings from their own inspector general.

“Millions of people are seeking this tax credit who, we believe, are not entitled to it,” said the inspector general. “We have made recommendations to [IRS] as to how they could address this, and they have [still] not taken sufficient action in our view to solve the problem.”

Segall’s investigation revealed that claims for additional child tax credits by ITIN filers have skyrocketed during the past decade–from $161 million in 2001 to $4.2 billion in tax year 2010.

He also found that illegal immigrants filed 3.02 million tax returns in 2010, with 72% of those returns (2.18 million) claiming the additional child tax credit.

Segall’s attempts to speak with any of the 100,000 employees of the IRS were rebuffed; instead they emailed this statement…

“The law has been clear for over a decade that eligibility for these credits does not depend on work authorization status or the type of taxpayer identification number used. Any suggestion that the IRS shouldn’t be paying out these credits under current law to ITIN holders is simply incorrect. The IRS administers the law impartially and applies it as it is written,” the statement said.

George disagrees with that position and believes the IRS should be doing more to prevent undocumented workers from getting billions in US tax dollars.

“The IRS is not doing something as simple as requesting sufficient documentation from people seeking this credit,” he said. “Once the money goes out the door, it’s nearly impossible for the IRS to get it back.”

Segall says that the IRS says it can’t change the system unless it gets permission from Congress; and closing this loophole requires lawmakers to pass a new law specifically excluding illegal immigrants from claiming additional child tax credits.

However, the IRS “Ten Facts About Child Tax Credit,” does not concur, as illegal immigrants, by definition, fail the citizenship qualification test.

Let’s remember, this is an election year, Barack Obama is CEO, Harry Reid can block any legislation in the Senate, and Treasury Secretary Tim Geithner, who is George Russell’s boss, is still claiming that Obamacare will reduce healthcare costs.

Tomorrow in my follow on article, learn how Congressmen are reacting to this incredible tax fraud–and what they intend to do about it.

 

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“Stay informed to stay ahead!”

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IRS Sued for Seizing 60 Million Health Records

the irs has always been a corrupt syping entity used to subjigate people... let's put them in charge of health care

A healthcare provider has sued the Internal Revenue Service and 15 of its agents, charging they wrongfully seized 60 million medical records from 10 million Americans.

The name of the provider is not yet known, United Press International said. But Courthouse News Service said the suit claims the agency violated the Fourth Amendment in 2011, when agents executed a search warrant for financial data on one employee – and that led to the seizure of information on 10 million, including state judges.

The search warrant did not specify that the IRS could take medical information, UPI said. And information technology officials warned the IRS about the potential to violate medical privacy laws before agents executed the warrant, the complaint said, as reported by UPI.

“Despite knowing that these medical records were not within the scope of the warrant, defendants threatened to ‘rip’ the servers containing the medical data out of the building if IT personnel would not voluntarily hand them over,” the complaint states, UPI reported.

The suit also says IRS agents seized workers’ phones and telephone data – more violations of the warrant, UPI reported.

The complaint alleges the IRS was “invasive and unlawful” and stole access to intimate medical records that included patients’ treatment plans and therapies, UPI said.

The suit seeks $25,000 in compensatory damages, per violation. The records’ seizure could impact up to one in 25 Americans, UPI said.

Read more: http://www.washingtontimes.com/news/2013/may/17/irs-sued-seizing-60-million-medical-records/#ixzz2W9YxJ5PL

http://www.westernjournalism.com/irs-seizes-60-million-health-records/

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