Rep. Paul Kanjorski: A Run on Money Markets - Vast Drawdowns (Video)

Representative Paul Kanjorski (D-PA) begins to answer the question of why, out of the blue one morning, we found we needed to stave off a economic crises of monumental proportions.

Representative Paul Kanjorski

Did you know that in a two hour period, our economy nearly failed as someone drewdown money market accounts? Then we had the economic crisis of monumental proportions. Someone knows who pulled this money out of the economy. Things like this are not done in a vaccuum. Someone needs to start talking. My husband and I have had this conversation often since former Secretary Paulson began dominating our television news with a meek George W. Bush standing by his side. How, we asked, did we get here? How did this just happen "one morning?" It made no sense. We've had the same conversation over and over.

 Today, I heard Rush Limbaugh reading the words of Representative Paul Kanjorski. I missed some of it, but did hear that our markets had a "tremendous drawdown of money market accounts in the United States, to the tune of $550 billion dollars," all occurring within a period of one or hours. Kanjorski said the "The Treasury opened its window to help. They pumped one-hundred-and-five billion dollars into the system, and quickly realized that they could not stem the tide." If, Kanjorski says, they had not taken this action, they estimate that five-and-a-half trillion dollars would have disappeared from the money market system in the U.S. - and collapsed the entire economy of the U.S....and within 24 hours the world economy would have collapsed." "It would have been the end of our political system and our economic systems as we know it." Now, if my memory serves me right, this was all done without Americans knowing anything. Rush asks the question: who was trying to bring down the American economy?

Could it have been George Soros? Could it have been a consortium of countries -- Russia, China, Venezuela -- countries that are eager to have Barack Obama elected because they know that will make it easier for them to continue their own foreign policies in the world?

According to Rush, this video video of Kanjorski on C-Span took place on January 27th, a little over four months after the "drawdown" event. To date, it appears none of this has been explained. It appears that no one but Rush is asking questions and offering theories.

Read all of Rush Limbaugh's commentary - there's much more there. Below is a transcript and the video - thanks to boing boing. Also you'll hear in this video that TARP was never a plan to allow banks to lend money!

And...you'll hear a frantic woman at the start of the video, frantic that her money is gone and she can't pay her bills. She wants tax relief to get money back to the people. Kanjorski says we need to listen to this lady. Maybe she has a better idea. It appears that Representative Kanjorski vote no on the House Stimulus bill.

Transcript:

The Capital Markets Subcommittee Chair, Rep. Paul Kanjorski of Pennsylvania, tells C-Span how the world economy almost collapsed in a matter of hours.

At 2 minutes, 20 seconds into this C-Span video clip, Kanjorski reports on a "tremendous draw-down of money market accounts in the United States, to the tune of $550 billion dollars." According to Kanjorski, this electronic transfer occurred over the period of an hour or two.

Kanjorski: "The Treasury opened its window to help. They pumped a hundred and five billion dollars into the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts, and announce a guarantee of $250,000 per account so there wouldn't be further panic and there. And that's what actually happened. If they had not done that their estimation was that by two o'clock that afternoon, five-and-a-half trillion dollars would have been drawn out of the money market system of the United States, would have collapsed the entire economy of the United States, and within 24 hours the world economy would have collapsed." "It would have been the end of our political system and our economic systems as we know it."

Rep. Paul Kanjorski - A Run on Money Markets - Vast Drawdowns