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Jan. 28, 1993 - Bill Cooper
57:33
New F.D.I.C. Rules
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Time Text
Watch out for the owl.
He's the owl of the dark.
Watch out for the broken.
I'm going to go through the door and see what's in there.
I'm William Cooper, and you're listening to the Hour of the Times.
Folks, as you can hear, my voice has gone, and for several days I didn't have any voice at all.
I've been very ill.
I apologize for the inconvenience of having to listen to reruns for the past week, and you're going to hear a few more before I get my voice back, I'm afraid.
Please Accept my sincere apologies.
I've got a lot to tell you about my recent trip to London, the things that I learned in Europe, and I've got some fantastic shows lined up for the future.
So please be patient and try to get the maximum worth from these shows that we're rerunning.
We're trying to bring you just the most important ones that we believe you should hear.
Make sure you take tonight's show if you can.
It originally ran on December the 6th, and then again on January the 5th.
It's an important show.
It'll tell you about the banking situation and the new FDIC rules that went into effect on December the 19th.
Remember, this show originally ran on December the 6th.
Please, also, don't miss tomorrow night's show.
Tomorrow night's show is one of the most important, especially for young people who are not taught this information in schools anymore.
If you have young people in your family or in your neighborhood, please try to get them to come in and listen tomorrow night, Friday, December the 29th, to the show that's going to air on the hour of the time.
And I think that their eyes will be opened and they will be amazed.
They should start asking questions as to why they don't learn this stuff in school anymore.
And you should also be asking your Board of Education why it's not taught in school anymore.
Now, folks, again, I apologize for the inconvenience of all these reruns.
Please, if you can, sit down and write a donation to help keep us on the air.
Make your checks or money orders out to WWCR.
From the headquarters of the Citizens Agency for Joint Intelligence, the FDIC rule which
becomes effective December 19, 1992, amends Part 325 of the agency's regulations by defining
five capital categories for purposes of implementing the prompts corrective action requirements.
you Banks who turn up on the lowest are critically undercapitalized.
definition, our significantly undercapitalized definition, our threatened grip receivership
bankruptcy.
Stand by, folks.
You've been asking me how to save your assets.
Well, now you're going to find out.
Yes, on December the 19th, 1992, the new FDIC's rules go into effect.
We are in the middle of a war.
But first, let's get a little background here, and then I'm going to tell you what these rules are, and how they're going to affect you, and what you can do.
And we're going to tell you the ten safest banks in the country.
The ten safest banks in the United States of America.
And even if you have to do your banking by mail, I can guarantee you banking with one of these ten banks is better than banking with any other bank that you've put your money in previously.
How serious is the banking situation, folks?
Well, the FDIC receives a $70 billion bailout.
All right, a $70 billion bailout.
How many of you were aware that over 500 banks have failed in the United States of America within the last one year period?
I bet not many.
The bailout is so that it continues to stand behind deposits at the nation's banks.
Large money center banks are increasingly having their solvency questioned.
Bank failures are expected to increase.
And, in fact, banks have been failing all through the last year, and over 500 to date have failed.
However, it is commonly believed, quote, if only the right government policies are implemented, the banking system can again be brought under reasonable control.
In effect, the worst is over, unquote.
And that is an erroneous assumption, an erroneous belief.
One historical perspective suggests a less comforting view.
Economic forces arrayed against the banking system could be so strong that in the short term, little can be done to improve matters.
In that view, bank failures will continue for several more years, no matter what the regulators do, short of declaring a bank holiday or the occurrence of some other cataclysmic scenario.
While the actual situation is well short of Great Depression magnitude thus far, It threatens to eclipse that disaster.
It may be more severe and less controllable.
That is commonly thought, and I can guarantee you folks that that is the case, and that I've been warning the American people for years that this was going to happen.
And some of you listened.
Most did not.
In fact, when bank failures as a percentage of the number of banks are viewed for the entire twentieth century, the current era stands out as the second worst in said century.
Currently, bank failures are more frequent than during the period of the Panic of 1907, when conditions became severe enough to lead Congress, they say, to establish the Federal Reserve Board.
Which was the beginning of the downfall of the entire economic system of this country, and maybe even the world.
You see, because the Panic of 1907 was created intentionally to convince Congress to adopt the Federal Reserve System, after almost a century of American tradition that excluded a central banking authority, When savings and loan failures are also considered, the recent banking carnage is eclipsed only by the Depression years immediately preceding the bank holiday of 1933.
In short, while our banking system's pain is distributed unevenly, there is no doubt that the troubled times we are living through are quite unusual.
We should not expect much from such quick fixes as encouraging bank examiners to go easy on real estate appraisals, jaw-boning bankers to increase lending or tightening a noose of spurious regulations about the industry's players.
Instead, we should encourage our lawmakers to concentrate on repairing the underlying structural problems that have made the economy falter and leave the banking industry in the position to expand credit—credit which will be sorely needed to fuel the recovery.
And the recovery, folks, will be painful.
It will require inflation, followed again by depression, followed then by stability, but only if we return to constitutional money.
There's only one way to solve the problem, folks.
That's to nationalize the Federal Reserve.
Arrest and prosecute every person who's ever been involved with the Federal Reserve System from its inception, those who are alive.
and to cancel the national debt by decree.
And if anyone in this world doesn't like it, they can answer to the military might of the United States of America.
And there is no one who can stand up to that military might.
Thus, there is no reason why what I have just outlined cannot be done.
Then we must print United States notes until we have built up reserves of gold and silver, when we can once again use constitutional money.
The only other answer, folks, is to print money as fast as we can possibly print it, devalue the dollar by a factor of one hundred to one, and pay off the national debt in cash, and then return to constitutional money.
It would require that we go through such an unbelievable inflationary period, followed by abject depression, and would still not do away with the Federal Reserve System that has got us into this situation.
It would not return us to constitutional money.
In my estimation, that is the worst way to do it.
There is no other way that it can be done, because none of the interest has ever been created.
On the loans that you all have now, the interest on the national debt, none of it has ever been created, and that's why the banks are in so much trouble.
There's no money in the banks, because all the available cash goes to pay interest, and that's not even to mention what is siphoned off the top by the Internal Revenue Service to fuel the formation of the New World Order.
I told you this was an important program, and I was not joking, folks.
This is an important program.
If the banking industry is given a chance and not hobbled with too much government intervention, banking problems will melt in the face of economic revival, but only, only if the measures that I have already outlined are carried out.
That revival will be enhanced if our regulators can continue to emphasize banking soundness
without being sidetracked by having to enforce more social engineering, currency policing,
or credit allocation mandates.
Think about it.
And you'd better think about it really, really good, because we're in big trouble, folks.
Now, let me give you some indication of what this new law says.
Basically, it calls for prompt corrective action.
The FDIC Board of Directors on September 15, 1992 approved a final rule implementing a statutory requirement that banking regulators take specified prompt corrective action when an insured institution's capital falls to certain levels.
Section 131 of the FDIC Improvement Act of 1991, the FDICIA, amends the Federal Deposit Insurance Act by adding a new Section 38 that restricts or prohibits certain activities and requires an insured institution to submit a capital restoration plan when it becomes undercapitalized.
The restrictions and prohibitions become more severe.
As an institution's capital level declines, beginning with measures such as restrictions on dividends and management fees, if the payments would result in the institution becoming undercapitalized, and ultimately ending in the closing of institutions that are critically undercapitalized.
A copy of the Federal Register is in my hands, folks, and I'm going to be explaining this to you.
The final rule applies primarily to state-chartered banks and insured United States branches of foreign banks that are supervised by the FDIC, as well as to directors and senior executive officers of those institutions.
However, portions of the FDIC rule also apply to all insured depository institutions that are deemed to be critically undercapitalized.
The Federal Reserve Board, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision have adopted parallel rules for the institutions they supervise.
The FDIC's final rule, which becomes effective December 19, 1992, amends Part 325 of the agency's regulations by defining five capital categories for purposes of implementing the prompt corrective action requirements.
The first is well capitalized, and I'm not going to go into it because it's self-explanatory, but it has three subcategories of supervisory indication.
A, B, and C. So, if it's well capitalized, but falls into the last subcategory, it could still be in danger.
The next is adequately capitalized, and that means that this institution meets all required minimum capital levels, but does not meet the definition of a well-capitalized institution.
For banks, those minimum capital levels, when fully phased in at year-end 1992, generally will require a total risk-based capital ratio of at least 8%, a Tier 1 risk-based ratio of at least 4%, and a leverage ratio of at least 4%.
Undercapitalized is the next category.
So it goes directly from adequately capitalized to undercapitalized.
This institution fails to meet one or more of the required minimum capital levels needed to be defined as adequately capitalized.
FDICIA mandates that an undercapitalized institution file a capital restoration plan within 45 days of the date it becomes undercapitalized.
The institution also is subject to automatic restrictions on dividend and management fees, asset growth restrictions, and prohibitions against making acquisitions.
Opening branches are engaging in new lines of business without the prior approval of its primary federal regulator.
A number of other harsher restrictions may be imposed on a case-by-case basis.
One of the cures for an undercapitalized bank is to make sure that it can't do any business to become better capitalized.
The next category is significantly undercapitalized.
This institution has a total risk-based capital ratio of less than 6%, a Tier 1 risk-based capital ratio of less than 3%, or A number of other discretionary restrictions also may be imposed.
Significantly undercapitalized institutions are subject to the restrictions that automatically
apply to undercapitalized banks and thrifts, as well as to other limitations that include
mandatory prohibitions against the payment of bonuses and raises to senior executive
officers without the regulator's prior approval.
A number of other discretionary restrictions also may be imposed.
And the last category, critically undercapitalized.
This institution has a tangible equity to total assets ratio of 2% or less.
Tangible equity is a newly defined term to be used only for determining which institutions
are critically undercapitalized.
Tangible equity combines elements of core capital, such as common equity capital, and
cumulative perpetual preferred stock minus all intangible assets except for limited amounts
of purchased mortgage servicing rights.
Critically undercapitalized institutions are subject to the restrictions that apply to
undercapitalized and significantly undercapitalized institutions, as well as to other prohibitions
that the FDIC has been given authority to enforce as the insurer of deposits.
At a minimum, any critically undercapitalized institution, regardless of its primary federal
regulator, must receive prior written approval from the FDIC before it can take actions that
include the following.
Engaging in any material transactions other than in the usual course of business, extending
credit for highly leveraged transactions or HLTs, amending its charter or bylaws, making
any material changes in accounting methods, engaging in certain transactions with affiliates,
paying excessive compensation or bonuses, or paying above-market interest rates on deposits.
Under FDICIA, a critically undercapitalized institution generally is prevented from paying
principal and interest on its subordinated debt and will be placed in conservatorship
or receivership if its capital level is not increased within a prescribed time limit.
Bye.
The final rule, folks, also amends Part 308 of the FDIC's regulations by establishing procedures for downgrading an institution to a lower category.
The restrictions for undercapitalized institutions may be applied to an institution that meets minimum capital requirements, but otherwise is in less than satisfactory condition, such as one that has significant asset quality problems.
The final rule also includes procedures for issuing and contesting prompt corrective action directives.
Such directives include those from the FDIC requiring an institution to dismiss directors and senior executive officers.
In other words, folks, what they have just said is that a bank that is initially categorized
as well capitalized or adequately capitalized could be downgraded to critically undercapitalized
if it falls into the last subgroup of A, B, or C. And those are the methods that the FDIC
under the new rule determines how much a bank or lending institution or SNL pays as their
federal deposit insurance premium. And here is that rule.
On September 15, 1992, the FDIC Board of Directors also agreed on a system that will charge
higher insurance rates to those banks and savings associations that pose greater risk
to the deposit insurance funds. Attached is a copy of the final rule, and I'm going
to read it to you right now, which goes into effect January the 1st, 1919.
Now, this rule doesn't go into effect until January the 1st, 1993.
Under the rule, a bank or thrift will pay within a range of 23 cents per $100 of domestic
deposits—that's the current rate for all institutions now—to 31 cents per $100 of
domestic deposits, depending on its risk classification.
The FDIC projects that about 75% of the 12,000 insured commercial banks and savings banks
with 51% of the deposit base and 60% of the 2,300 insured thrifts with approximately 43%
of the deposit base will be in the lowest rate-paying group.
Only about 220 banks, or 2% of all insured commercial and savings banks, and 160 thrifts,
7% of all insured thrifts, are expected to be in the group paying the highest insurance
rate.
The FDIC estimates that banks will pay an average rate of about $0.254 for $100 compared to $0.259 for $100 for thrifts.
The FDIC intends to notify each institution of its premium rate by December 1st.
This is an admission, folks, that there are 220 banks that are so undercapitalized that they are in the highest risk category and will pay the highest insurance premium for their FDIC coverage, and 160 thrifts.
So that's 380 financial institutions right off the bat that we know, by the admission of the FDIC, In their own memo, a reading from an FDIC memo, folks, that was sent to the Chief Executive Officer on October the 7th, 1992.
By their own admission, 380 financial institutions are in such trouble that they will have to pay the highest premium rate for their FDIC coverage.
Which means, according to the rule that I read to you first, that they are subject to conservatorship or receivership, which, folks, means bankruptcy.
And these are just the worst.
Remember, there are five categories, folks.
Well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized.
which falls under, undercapitalized, significantly undercapitalized, and critically undercapitalized, which fall into the last subgroup of the ABC.
You remember that?
Our subject to receivership.
Our subject, subject folks, to receivership.
Bankruptcy.
or to be sold or combined with another bank to try to save it.
Now, anything insignificantly undercapitalized and critically undercapitalized, no matter which subgroup they fall into, are subject to receivership.
And, as the rule itself says, even if it falls under well-capitalized or adequately capitalized and falls into the last subgroup or the C category, could be downgraded to anyone of the lower Classifications.
So, what does this mean?
Well, let me tell you.
As of February of 1992, as of February 1992, these banks fell into the critically undercapitalized category.
These banks, as of February 1992.
I'm going to read you the name of the bank.
City Bank of North America, New York.
Point three one.
Discounted tangible equity to assets.
Point three one.
Bank of America.
N.T.
and S.A.
San Francisco, California.
One point nine one.
Discounted tangible equity to assets.
These are percentages, folks.
Chase Manhattan Bank, New York.
Minus point two percent.
Chemical Bank, New York.
minus 0.39 percent.
Marine Midland Bank, Buffalo, New York, 0.34 percent.
National Westminster Bank, USA, New York, 1.62 percent.
Remember, the rule says that any bank that falls below 2 percent, some of these banks are as low as minus 8 percent in discounted tangible equity to assets.
Mid-Atlantic, Newark, New Jersey, minus 1.89%.
Bank of Tokyo, T.C., New York, 1.35%.
Bank of California, N.A., San Francisco, 1.09%.
I.B.J.
Schroeder, Bank and Trust Corporation of New York, 1.44%.
1.35% Bank of California, N.A. San Francisco 1.09% I.B.J.
Schroeder, Bank and Trust Corporation of New York 1.44% National Westminster Bank, New Jersey 1.13%
People's Bank, Bridgeport, Connecticut, minus 0.32%
First City, Texas, Houston, minus 0.53 percent.
American Security Bank, N.A., Washington, D.C., minus 1.7 percent.
Apple Bank for Savings, Garden City, New Jersey, or excuse me, Garden City, New York, minus 0.20.
Dollar Dry Dock Bank, Bronx, New York, minus 7.68 percent.
Howard Savings Bank, minus .687 percent.
Union Trust Corporation, Stamford, Connecticut, minus 1.18 percent.
American Savings Bank, White Plains, New York, minus 8.36 percent.
Bank of Baltimore, Baltimore, Maryland, minus .05 percent.
Equibank, Greensburg, Pennsylvania, .89% First American Bank of Virginia, 1.71%
National State Bank, Elizabeth, in Elizabeth, New Jersey, minus 2.04%
Greater New York Savings Bank, Brooklyn, New York, minus 2.77% L-E-U-M-I-T-C of New York, New York, New York, minus 7.67%
River Bank, America, New York, New York, minus 7.8%.
Citizens First, NB of New Jersey, Ridgewood, New Jersey, minus .68%.
Citibank, Phoenix, Arizona, 1.77%.
1.78% City Bank, Phoenix, Arizona 1.77% People's Heritage Savings Bank, Portland, Maine 0.74%
First Constitution Bank, New Haven, Connecticut, minus 0.91% Merchants Bank of Kansas City, Missouri, minus 0.13%.
Northside Saving Bank of New York, New York, 1.76%.
1st NH Bank, Concord, New Hampshire, that's the 1st New Hampshire Bank, Concord, New Hampshire, 1.32%.
Bay Bank, Harvard Trust Corporation, Cambridge, Massachusetts, 1.28%.
Heritage Bank for Savings, Holyoke, Massachusetts, minus 2.93%.
New England Savings Bank, New London, Connecticut, minus 3.81%.
Springfield Institute for Savings, Springfield, Massachusetts, 1.93%.
Now, folks, what I'm telling you here is these banks are in deep trouble and are certain, certain to either be combined with another bank to try to save it or to go right into receivership and disappear into the realms of that never-never land called bankruptcy.
Bankruptcy.
This, folks, is serious.
These are just the worst Just the worst!
This isn't all of the banks that are in trouble.
Just the very worst that we've been able to identify as of February 1992.
How many of you knew that there are fraudulent or renegade banks operating in this country?
Banks that aren't banks!
That aren't covered by anything and you've got your money in them.
Well, there are too many of those to list or to name on this program.
There are fraudulent banks in the USA, fraudulent Canadian banks, fraudulent Caribbean banks.
It's incredible.
Those will all be listed in the next edition of the Kaji newsletter.
For those of you who aren't getting it, you need to join Kaji.
Forty-five dollars.
Forty-five dollars is your membership fee.
Folks, you get a lot of other benefits.
You can call Stan Barrington and ask him to tell you what they are over the phone, or you can write and he'll send you a package of information and you can see what the benefits of joining Kaji are.
But if you'd like to join, or if you'd like to send for a packet of information, send $45 or send your request to William Cooper, P.O.
Box 3299, Camp Verde, Arizona, 86322.
That's William Cooper, P.O.
Camp Verde, Arizona 86322.
That's William Cooper, P.O.
Box 3299.
Camp Verde, Arizona 86322.
I'll give you that address again later in the program.
If you want to call, stand at 602-567-6109.
That's 602-567-6109.
Remember, don't listen to this program without a pencil and paper by your side.
It's time to take a little break, folks, so don't go away.
Don't change your dial.
we will be back after this brief pause.
Music Music
Music It's a little solid, calm it down, alright now.
There's many things to cure your ill, but there is one thing gonna fix your ill.
It's a little solid, calm it down, alright now.
Well, there you have it. Folks, remember, I predicted that all of the things that are
happening would happen, and I predicted these years ago.
In fact, I named the exact month that this current—they call it a recession, but it's really a depression—I named the exact month that it would start.
I predicted that it would go right in, and by the third quarter of 93, the entire world would be in the throes of a depression.
Well, we're already in the depression.
Also, on a previous show about the Federal Reserve, we also gave you this warning, Economic Storm Warning.
This is from the Providence Journal, Providence, Rhode Island, July 1992.
Former banker and financial analyst, Michael William Haga, Author of the forthcoming book, On the Brink, How to Survive the Coming Great Depression, 1993 to the year 2000, says, quote, Within the next twelve months, the international banking system will collapse.
The world's stock exchanges will crash to pre-World War II levels.
Real estate values will plunge eighty-five percent or more, and countless numbers of ordinary people worldwide will be left holding the bag.
This is just a confirmation of what I had predicted years before.
You only hear these things on the hour of the time and nowhere else.
What you're hearing tonight, folks, and what you've already heard already, is astounding information that you will not hear on the 6 o'clock news, on any channel, or on any other radio station.
You heard it here on the hour of the time first.
And remember So far, I've only been wrong once in all of the many predictions that I've ever made.
I've been wrong exactly one time when I said that Manuel Noriega would not be found guilty in an American court of law and would not serve any time in jail.
I was wrong.
But that's the only time that I've been wrong.
Now I'm going to read you an article from the New Federalist.
Deficit figure was pre-election fiction.
Listen closely to this, folks, by Chris White of the EIR News Service.
The federal government's deficit for the fiscal year ending September 30th was $290 billion.
The figures were announced at the end of last week by the Treasury Department.
Like the GDP numbers up 2.7% and the weekly unemployment claims down, the report was evidently someone's idea of good news to be made available to the public in the last days before the elections.
The $290 billion final figure is significantly lower than the nearly $400 billion projected by the Office of Management and Budget earlier in the year.
Unlike the GDP report, it will probably not be revised in the weeks following the election, but that doesn't make the report any more real than the GDP figures were, since the size of the deficit is now about the same magnitude as the interest payments on the entirety of the federal government's debt, and those interest payments happen to be the biggest line item in the federal budget, excluding entitlement programs.
You hear people saying, quote, well, why don't we just cut out the interest payments and everything will balance?
Unquote.
Sounds like common sense, but is it reality?
It's a fiction, folks.
First of all, the amount reported as the federal deficit is a fiction.
Fiction.
It's graphic enough that it could even be the subject for Madonna's next book.
It doesn't, it doesn't include the $60 billion, that's billion with a B, folks, that administration and Congress alike agreed was necessary to continue to resolve bankrupt SNLs, and doesn't count what's already been paid, and doesn't even make allowance for the fact that that $60 billion is way too low.
It doesn't include the eighty or so billion dollars that was looted out of the Social Security Trust Fund again this year to help reduce the apparent size of the deficit.
And it doesn't include the more than seventy billion dollars that has already been incurred by the taxpayer in not shutting down the ten or so largest bankrupt banks.
And that's coming.
Let me read you that last one again.
And it doesn't include the more than $70 billion that has already been incurred by the taxpayer in not shutting down the ten or so largest bankrupt banks.
Those bills are all coming due, so why not put them where they belong and say that the deficit is already about $500 billion this year?
Cut out the interest payment and you still have a $200 billion plus deficit.
Since three-quarters of the $4 trillion federal debt matures over the next five years, there is another $600 billion to be financed or refinanced each year on top of the current shortfall.
Folks, that leaves $800 billion after the interest payments are stopped, if you could even do that.
We are now at the point where the financing of the deficit And the amortization and rollover of federal debt is more each year than the revenues received by the Treasury from taxes collected from individuals.
This is rather more than 600 billion.
Revenues collected or received by the Treasury from taxes will also decrease in the coming years as more and more people find out that it's the biggest scam that's ever been conducted in this country.
and that they don't really even have to pay those taxes.
It's voluntary, you see, and they have been defrauded into thinking that they are taxpayers when the law clearly says that most of them are not.
Eliminating the interest payments won't do much about anything, either.
You see, it isn't a question of what the federal government spends its money on.
It's the way we insist on doing things that is the problem.
In the Constitution, folks, Article 1, Section 8, the Founding Fathers laid out how the government should manage its finances and economic policy.
In their view, the government, specifically Congress, is empowered to create money and protect its value.
Financing the operations of federal government by selling debt through the Federal Reserve is not mentioned, nor would it be.
The Revolution was fought to defeat exactly those kinds of practices as the Declaration of Independence, for those of you who have ever read it, makes perfectly clear.
The practice happens to be illegal.
Made worse because the Federal Reserve, after all, is merely a private institution and it has been illegal ever since the Federal Reserve was created.
To insist it was created by act of Congress doesn't change anything.
Congress does not have the power to hand away its own powers or to change the Constitution in any other way than that outlined within the Constitution allowing for its change.
The interest on the debt is not the problem.
Using the power of government to create debt to line the pockets of private interest and then farm out the tax revenues to service the debt you seriously created is the problem.
It is supposed to be very different.
Government is supposed to issue credit.
The credit is not secured against the tax revenues, but against the wealth generated through the extension of credit in the form of productivity increases in the economy.
In United States history, this has been done through financing of infrastructure projects, toll road, canal, and railway construction in the 19th century, down to NASA more recently.
NASA's budget line functions as credit for suppliers and subcontractors with relevant multiplier effects in the economy as a whole.
That's how it works.
Jobs are created through such means.
The tax revenues are increased, not by raising tax rates, but by increasing the number of taxpayers through putting people back to work building things that we need.
Until that is done, the out-of-control deficit will balloon.
You want to cut the deficit?
What exactly do you want to cut?
Your grandmother's medical payments?
Your aunt's retirement funds?
Cuts, folks, will translate into deaths, into job losses, into new claims for unemployment benefits, and soon enough they will translate into ever bigger deficits.
We've been through it before over the last twelve years.
Each time the deficit doubles, this time it is different.
Now America's largest corporations, starting with General Motors and IBM, are charging off their losses.
That means that jobs go, health plans go, retirement plans go, all to satisfy the claims of their creditors, the so-called outside directors in the case of General Motors.
That's the Depression.
When the government goes down that path and the corporations go down that path, then it's only a matter of time before the spiral thus created runs out of control.
That is what we have been warning you about.
That is the end of the article.
An article, by the way, that is right on the money, folks.
Now, back to this other stuff.
The number of fraudulent banks in the USA that will be published in the upcoming issue of the Kadji Newsletter is 26.
Fraudulent Canadian banks are 90 that we've been able to identify, and there are 50 fraudulent Caribbean banks, many of them operating inside this country.
Have you got your money in one of those banks?
And how are you going to survive what's coming on December the 19th?
Now, don't go off half-cocked, folks.
None of the banks are going to close their doors on December the 19th, as you've been told by all these fanatical, I don't know what you call them, rumor mongers.
It's not going to happen.
On December the 19th is when the law takes effect.
That's when banks will receive their rating.
That's when they will be categorized under one of the five categories and one of the three supervisory subgroups.
You should go to your bank after December the 19th and ask them which category they fall into under the new FDIC rating law and which supervisory subcategory they fall into.
If they fall into the lower categories, they will be required to submit a plan and restrictions will be put upon that bank.
Within a certain period of time, if they have not recovered or if they have not made significant progress toward an eventual recovery, then the bank will be placed into receivership So, understand that on December the 19th, the banks are not going to close their doors.
That's when the law goes into effect.
They will begin receiving their ratings.
They will have to submit a plan for recovery.
And then, depending upon how well they do, or how well they don't do, or whether they just stay the same, that will decide which banks actually close their doors.
Going to receivership.
Career bankruptcy.
Or become absorbed by some larger major bank.
So understand that, folks.
Understand it.
Don't go off half-cocked.
But you need to know what your bank rating is.
You should go down and ask them.
Now, for the ratings, those ratings, let me see here.
Here we go.
For those ratings which include the supervisory subgroups, there are three categories.
Well-capitalized, adequately capitalized, and undercapitalized.
The banks that fall in the undercapitalized subgroup category, and in the B or C supervisory subgroup, are in big, big trouble.
In fact, undercapitalized banks are in trouble anyway, and you should know Which banks those are?
Whatever bank you have your money in, go in and ask them what is their rating under the new FDIC law, including the supervisory subgroup rating of ABRC.
This determines what insurance premium they're going to pay for the federal deposit insurance coverage on the accounts.
Also, which accounts are covered and which are not have also been changed.
So, if you have certain types of accounts which you think are covered by the FDIC, they may no longer be covered, and you should make sure that you know which accounts those are, folks.
Make sure you know which accounts those are.
Now, it doesn't matter what you do with your money or where you put it.
It's in danger in this time.
But these are the country's top ten Blue Ribbon Banks.
Top ten Blue Ribbon Banks.
These banks, right now, are not in any danger of folding.
So, if you want to take advantage of this knowledge, that's up to you.
But here are the banks.
Citizens Commercial and Savings Bank, 1 Citizens Banking Center, Flint, Michigan, 48502.
Their phone number is 313-766-7500.
The Dauphin Deposit Bank & Trust Company, 213 Market Street, Post Office Box 2961 Harrisburg,
PA 17105 and their number is 717-255-2121.
The Davenport Bank & Trust Company, 203 West 3rd Street, Davenport, Iowa 52801.
And their number is 319-383-3211.
The Farmers and Merchants Bank of Long Beach.
This is the bank my grandmother had her account in for just about her whole life.
Farmers and Merchants Bank of Long Beach.
302 Pine Avenue, Box 1370, Long Beach, California 90802 and that number is 213-437-0011.
The First National Bank of Anchorage, 646 West 4th Avenue, Box 1370, Long Beach, California
1-00-720 Anchorage, Alaska 99510 and their phone number is 907-276-6300.
The First National Bank of Ohio, 106 South Main Street, Akron, Ohio 44308.
Their number is 216-384-800.
Their number is 216-384-800.
The National Bank of Alaska, 301 West Northern Lights Boulevard, Box 100600, Anchorage, Alaska,
National Bank of Alaska, 301 West Northern Lights Boulevard, Box 100600, Anchorage, Alaska
99510 and their number is 907-276-1132.
99510.
And their number is 907-276-1132.
The Roslyn Savings Bank, 1400 Old Northern Boulevard, Roslyn, New York, 11576.
And their number is 516-621-6000.
The Trust Company Bank, 25 Park Place, Northeast, Post Office Box 4418, Atlanta, Georgia, 30302.
And their number is 404-588-7711.
you.
The last, but not least, is United Counties Trust Company, 4 Commerce Drive, Cranford, New Jersey, 07016, and their number is 908-931-6600.
These are the country's top ten Blue Ribbon banks as of February 1992, and this is the latest listing that we could find.
So, if you want to take advantage of that, even if you have to do your banking by mail, That's better than being in the risky position which you are in at this time.
I cannot tell you where to invest your money or what to do with it, but I will tell you this.
I've gotten many letters after the Federal Reserve Program that was aired on WWCR asking me just exactly why I did not recommend numismatic coins.
It's simple, folks.
I just give it my grandmother's common sense test.
If this investment is going to appreciate a thousand percent over the next five to ten years, why is this guy trying to sell it to me?
Why doesn't he hang on to it and realize that profit for himself?
And how many investments have you ever seen that ever appreciate a thousand percent over ten years?
I mean, come on, folks.
You've taken a real chance.
If you ever get involved in anything like that, that's my opinion.
I'm not giving you financial advice.
This is my opinion.
This is what I believe.
I believe it because it doesn't make sense when you give it the common sense test.
None of these things ever do.
You see, back during the Great Depression of the late twenties and thirties, I went back and looked at what happened to people during that time.
And realistically, you want to hear the truth?
People who had coin collections and stamp collections were selling them at a very small fraction of what they even paid for those stamps and coins.
Because they were up against the wall and they were desperate.
And those people who they offered these collections to for sale knew this.
And anytime you're desperate for money and you want to sell something, you always end up taking a loss because your desperation shows on your face.
They can hear it in your voice.
They can see it in the tattered clothes.
So very few people are ever able to pull it off.
and get real worth for what they have to sell.
And the only thing that you'll get real worth for is what has real worth in it intrinsically.
That is the wealth that comes from the land.
The real value by weight of gold or silver in small denomination gold or silver coins that anyone can recognize as being legitimate and that they can recognize for the real value contained in that coin.
I recommend that you stick with what we know is worth something.
Small denomination gold or silver coins, foodstuffs, things that will be in great demand that people will always need in time of trouble, and land.
Land that you can grow crops upon.
Land that you can use to support and take care of your family in times of trouble.
Anything other than the things that I have just mentioned are a great risk.
A great risk, in my opinion.
If you wish to invest your money in those things, far be it from me to tell you not to.
But you ask me in your letters why, and I've just given you the reason why.
Now, for those of you who want to help save the Constitution, this nation, and thus freedom for the world, I highly recommend our intelligence organization, TAGI, the Citizens Agency for Joint Intelligence.
I've also published a book, Behold a Pale Horse.
I didn't publish it.
I wrote the book.
It's published by Light Technology in Sedona, Arizona.
Five hundred pages of the most well-documented, most suppressed information ever published in the history of the world.
have been told that by experts.
The book is now $20 for CAGI members plus $5 postage and handling, $25 for anyone else
plus $5 postage and handling.
If you want to join CAGI or if you would like an information packet, just write us a letter.
If you want to join, send $45.
If you want an information packet, write to us and ask for it.
To William Cooper, post office box 3299, Camp Verde, Arizona 86322.
That's William Cooper, post office box 3299, Camp Verde, Arizona 86322.
One more time, PO box 3299, Camp Verde, Arizona 86322.
Or you can call, scan, and talk to him personally at 602-567-6109.
That's 602-567-6109.
Don't forget to write your letters to WWCR and let them know that you want this program
to stay on the air.
Until next week, good night, and God bless each and every one of you.
God bless you.
you Sweeter air of liberty.
Of green rice and yeast.
Land where my father dies.
Land of the pilgrim's price.
From every mountainside, let freedom ring.
My native country, dear, Land of the noble free, I mean, I love you.
I love thy rocks and rills, thy woods and template hills.
My heart beats faster to life and love Let music swell the breeze
And reap the loveliest trees Sweet freedom song.
Let mortal turn away, let all that we part ways, let rocks their silence break the ground.
Oh Lord.
Our Father God to Thee, author of liberty, to Thee we sing.
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