U.S. Lacks Constitutional Authority for Loan

WTP | 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.

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.