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September 18, 2008


WTP Brings Federal Lawsuit to Stop AIG Bailout

U.S. Lacks Constitutional Authority for Loan



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 
<http://www.wethepeoplefoundation.org/PROJECTS/AIG/AIG-PressReleaseSept18-2008.pdf>
  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 
<http://www.wethepeoplefoundation.org/PROJECTS/AIG/AIG-Complaint-9-18-08.pdf> , 
the Memorandum 
<http://www.wethepeoplefoundation.org/PROJECTS/AIG/AIG-MemoLawSupptTRO-9-18-08.pdf>
  of Law supporting the TRO, and Schulz's 
<http://www.wethepeoplefoundation.org/PROJECTS/AIG/AIG-Decl-Schulz-9-18-08.pdf> 
 Declaration which includes several recent articles from the New York Times. 

 


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