by AL Whitney (C) copyright 2011
Permission is granted for redistribution if linked to original and AntiCorruptionSociety acknowledged
Excerpts from article:
The Federal Reserve was set up by bankers for bankers, and it has served them well. Out of the blue, it came up with $12.3 trillion in nearly interest-free credit to bail the banks out of a credit crunch they created. That same credit crisis has plunged state and local governments into insolvency, but the Fed has now delivered its ultimatum: there will be no “quantitative easing” for municipal governments.
On January 7, according to the Wall Street Journal, Federal Reserve Chairman Ben Bernanke announced that the Fed had ruled out a central bank bailout of state and local governments. “We have no expectation or intention to get involved in state and local finance,” he said in testimony before the Senate Budget Committee. The states “should not expect loans from the Fed.”
So much for the proposal of President Barack Obama, reported in Reuters a year ago, to have the Fed buy municipal bonds to cut the heavy borrowing costs of cash-strapped cities and states.
Many states (and municipalities) have resorted to selling off their properties/assets to keep themselves afloat. Recently California Accepted Offers for 11 State Properties. Most of the general population in our country, however, is unaware that in 1992 George Bush, Sr signed Executive Order 12803 ORDERING the sale of state and municipal assets. Through the unconstitutional device known as the “Executive Order”, Presidents have been stealthily exercising dictatorial power for many years. 
By the authority vested in me as president by the laws of the United States of America, and in order to ensure that the United States achieves
the most beneficial economic use of its resources, it is hereby ordered as follows:
Section 1. Definitions. For purposes of this order: (a) “Privatization” means the disposition or transfer of an infrastructure asset, such as by
sale or by long-term lease, from a State or local government to a private party.
Since 1) the Executive Branch of USA INC has issued instructions for states and municipalities to sell off their assets and 2) the Federal Reserve has stated publicly that it will not offer assistance to the economically strapped states, the states are now facing insolvency as a consequence of the credit crisis the Federal Reserve (gangster banksters) created. There will be no recovery program coming from USA INC. Instead the liquidation process that was ordered years ago is well underway.
The only way to create jobs and start our country on the road to economic recovery is to rebuild . . . on a state by state level by establishing state banks. It will also be necessary for state legislators to understand the War and Emergency Powers Act and pass resolutions to ‘nullify it’ in their states. 
On February 10, 2011, Ms Brown explained how state banks could create their own seed money for new businesses.
From Ellen Brown:
In the meantime, the states could take matters in their own hands and set up their own state-owned banks, on the model of the Bank of North Dakota. They could then have their own very-low-interest credit lines, just as the Wall Street banks do. Rather than spending or selling off valuable public assets, or hoarding them in massive rainy day funds made necessary by the lack of ready credit, states could LEVERAGE their assets into a very strong and abundant local credit system, following the accepted business practices of the Wall Street banks themselves.
The Public Banking Institute was launched on January 13, 2011 to explore that alternative. For more information, see PublicBankingInstitute.org.
The ball is now in the court of state legislatures across the country. Please send them this information, so they can start understanding how very important they have become to the viability of our entire country. Fortunately a few are already awakening:
Senate Report 93-549 written in 1973, says “Since March 9, 1933, the United States has been in a state of declared national emergency…Under the powers delegated by these statutes, the president may: seize property;…seize commodities; assign military forces abroad; institute martial law; seize and control all transportation and communication;…restrict travel; and, in a plethora of particular ways, control the lives of all American citizens.”
The president can act through Executive Order, Presidential Proclamation, or through his many agencies, which include most of the alphabet agencies.
The framers of the Constitution asserted that Americans have certain inalienable, God-given rights. But under emergency rule, all these rights are declared null and void. The government charges us for these rights by requiring licenses and excessive paperwork, with strings attached, as long as restrictive and ill-defined requirements are met.