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WTP Brings Federal Lawsuit to Stop AIG Bailout: U.S. Lacks Constitutional Authority for "Loan*

Written by Subject: Constitution

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.

 

 

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3 Comments in Response to

Comment by Ken Owens
Entered on:

A much needed lawsuit...Thank you Robert Schulz!!!

Comment by Jim Lorenz
Entered on:
Isn**Q**t BEN S. BERNANKI, spelled as BERNANKE? It**Q**s BEN S. BERNANKI, twice.

Isn**Q**t this a flaw in the action?

Comment by Jim Lorenz
Entered on:
The proper term is **QQ**ultra vires,**QQ** it may be spoken as ultra virus, but is not a virus, it is an overreaching of authority:
The proper legal term is, **QQ**ultra vires,**QQ** Main Entry: ul·tra vi·res Pronunciation Guide
Pronunciation: |ltr|v()rz
Function: adverb (or adjective)
Etymology: New Latin
: beyond the scope or in excess of legal power or authority (as vested in a corporation, an official, or a legislative body)

Citation format for this entry:

**QQ**ultra vires.**QQ** Webster**Q**s Third New International Dictionary, Unabridged. Merriam-Webster, 2002. http://unabridged.merriam-webster.com (18 Sep. 2008).s,**QQ**


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