Monday, March 19, 2012

New York City police brutalize, arrest Occupy Wall Street protesters - NOT ONE OF OBAMA'S CRIMINAL BANKSTER DONORS EVER ARRESTED!

New York City police brutalize, arrest Occupy Wall Street protesters



 “Records show that four out of Obama's top five contributors are employees of financial industry giants - Goldman Sachs ($571,330), UBS AG ($364,806), JPMorgan Chase ($362,207) and Citigroup ($358,054).”

WHEN A MAJOR JOURNALIST ASKED OBAMA WHY THERE HAD NOT BEEN ANY PROSECUTION OF CRIMINAL BANKSTERS, OBAMA REPLIED THAT THIS WAS BECAUSE (HIS OWN) DEPT. OF JUSTICE HAD NOT PURSUED ANY CRIMINAL PROSECUTIONS.

“I’m not here to punish banks!” OBAMA, STATE of the UNION MESSAGE, SENATE FLOOR.

THIS SAME DEPT. OF JUSTICE HAS NOW SUED FOUR STATES ON BEHALF OF OBAMA’S LA RAZA “THE RACE” MEXICAN PARTY BASE. OBAMA NOW SUES STATES IN THE NAME OF LA RAZA VOTING RIGHTS TO ASSURE ILLEGALS THEY WILL NOT HAVE TO PRODUCE EVEN ONE OF THEIR POCKETFULS OF FRAUDULENT IDs TO VOTE.

WHILE OBAMA’S DEPT. OF JUSTICE LOOKS THE OTHER WAY AT THE CRIMES OF HIS BANKSTER DONORS, THEY ARE QUITE PROACTIVE IN PUSHING OBAMA’S LA RAZA AGENDA!

“The Bloomberg story... about a crooked Treasury secretary handing a room full of crooked billionaires inside information worth billions of dollars... hardly caused a ripple. As far as I know, no actions are being planned against Henry Paulson or any of the hedge-fund managers involved. No other major media outlet picked up the story. I saw nothing about it from the Department of Justice or the Securities and Exchange Commission.”

THE MEXICAN INVASION, OCCUPATION AND EVER EXPANDING WELFARE STATE DEPRESSES WAGES, PARTICULARLY FOR BLACK AMERICANS, FROM $300 TO $400 MILLION PER YEAR. ON TOP OF THAT AMERICANS ARE FORCED AT ALL LEVELS TO PAY FOR THE STAGGERING COST OF MEXICO’S WELFARE STATE IN OUR BORDERS!

THERE ARE ONLY EIGHT STATES WITH A POPULATION GREATER THAN LOS ANGELES COUNTY WHERE HALF THE JOBS GO TO ILLEGALS USING STOLEN SOCIAL SECURITY NUMBERS. THIS SAME COUNTY PAYS OUT $600 MILLION PER YEAR IN WELFARE TO ILLEGALS, AND HAS A TAX-FREE MEXICAN UNDERGROUND ECONOMY CALCULATED TO BE IN EXCESS OF $2 BILLION PER YEAR. OH, AND 95% OF ALL ARREST WARRANTS FOR MURDER ARE FOR MEXICANS!

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THE CORRUPTION OF AMERICA

By Porter Stansberry
December 27, 2011
NewsWithViews.com

The numbers tell us America is in decline... if not outright collapse.

I say "the numbers tell us" because I've become very sensitive to the impact this kind of statement has on people. When I warned about the impending bankruptcy of General Motors in 2006 and 2007, readers actually blamed me for the company's problems – as if my warnings to the public were the real problem, rather than GM's $400 billion in debt.

The claim was absurd. But the resentment my work engendered was real.

So please... before you read this issue, which makes several arresting claims about the future of our country... understand I am only writing about the facts as I find them today. I am only drawing conclusions based on the situation as it stands. I am not saying that these conditions can't improve. Or that they won't improve.

The truth is, I am optimistic. I believe our country is heading into a crisis. But I also believe that... sooner or later... Americans will make the right choices and put our country back on sound footing.

Please pay careful attention to the data I cite. And please send me corrections to the facts. I will happily publish any correction that can be substantiated. But please don't send me threats, accusations against my character, or baseless claims about my lack of patriotism. If I didn't love our country, none of these facts would bother me. I wouldn't have bothered writing this letter.

I know this is a politically charged and emotional issue. My conclusions will not be easy for most readers to accept. Likewise, many of the things I am writing about this month will challenge my subscribers to re-examine what they believe about their country. The facts about America today tell a painful story about a country in a steep decline, beset by problems of its own making.

One last point, before we begin... I realize that this kind of macro-economic/political analysis is not, primarily, what you pay me for. You rightly expect me to provide you with investment opportunities – whether bull market, bear market, or total societal collapse. And that's what I've done every month for more than 15 years.

But that's not what I've done this month. You won't find any investment ideas at all in these pages. This issue is unlike any other I have ever written.

I'm sure it will spark a wave of cancellations – costing me hundreds of thousands of dollars. I fear it will spark a tremendous amount of controversy. Many people will surely accuse me of deliberately writing inflammatory things in order to stir the pot and gain attention. That's not my intention. The truth is, I've gone to great lengths throughout my career to protect my privacy.

I am speaking out now because I believe someone must. And I have the resources to do it. I am sharing these ideas with my subscribers because I know we have arrived at the moment of a long-brewing crisis.

Our political leaders, our business leaders, and our cultural leaders have made a series of catastrophic choices. The result has been a long decline in America's standard of living.

For decades, we have papered over these problems with massive amounts of borrowing. But now, our debts total close to 400% of GDP, and America is the world's largest borrower (after being the world's largest creditor only 40 years ago)... And the holes in our society can no longer be hidden...
We've reached the point where we will have to fix what lies at the heart of America's decline... or be satisfied with a vastly lower standard of living in the future.

How do I know? How do I statistically define the decline of America?

The broadest measure of national wealth is per-capita gross domestic product (GDP). Economists use this figure to judge standards of living around the world. It shows the value of the country's annual production divided by the number of its citizens. No, the production isn't actually divided among all the citizens, but this measure provides us with a fair benchmark to compare different economies around the world. Likewise, this measure shows the growth (or the decline) in wealth in societies across time.

So... is America growing richer or poorer based on per-capita GDP? Seems like a simple enough question, doesn't it? Is our economy growing faster than our population? Are we, as individuals, becoming more affluent? Or is the pie, measured on a per-person basis, growing smaller?

This is the most fundamental measure of the success or the failure of any political system or culture. Are the legal and social rules we live under aiding our economic development or holding us back? What do the numbers say?

Unfortunately, it's a harder question to answer than it should be. The problem is, we don't have a sound currency with which to measure GDP through time. Until 1971, the U.S. dollar was defined as a certain amount of gold. And the price of gold was fixed by international agreement. It didn't actually begin to trade freely until 1975. Therefore, the value of the U.S. dollar (and thus the value of U.S. production, which is measured in dollars) was manipulated higher for many years.

Even today, our government's nominal GDP figures are greatly influenced by inflation. The influence of inflation is particularly pernicious in GDP studies. You see, inflation, which actually reduces our standard of living, drives up the amount of nominal GDP. So it creates the appearance of a wealthier country... while the nation is actually getting poorer.

The only real way to accurately measure per-capita GDP is to build our own model. The need to build our own tools tells you something important – the government doesn't want anyone to know the answer to this question. It could easily publish data far more accurate than the indexes it puts out. But government doesn't want anyone to know. And it wants to be able to say "those aren't the real data" when studies like ours produce bad news.

So pay attention to how we built our charts. You can see for yourself that our data are far more accurate than the government's figures. Our data are based on the real purchasing power of the currency, not the nominal numbers, which are completely meaningless in the real world.

The question we are trying to answer is: What would per-capita GDP numbers look like, if we used a real-world currency, like gold, or a basket of commodity prices, instead of the paper-based U.S. dollar? What would the figures be if we measured GDP in sound money instead of the government's funny money?

Here's how we figured it out. We took the government numbers for nominal GDP and measured them first against commodity prices, and later (after it began to trade freely) gold. We used a standard commodity index (the CRB) up to 1975 and gold post-1975. The result of this analysis shows you the real trend in U.S. per-capita GDP, as measured on a real-world purchasing power basis.

Our analysis shows you what's actually happened to our real standard of living. The results, we suspect, will surprise even the most bearish among you.

America is in a steep decline.


Americans Are Getting Poorer – Fast

Let me anticipate the "official" criticism of our study. Many people will claim that our numbers aren't "real." They will say that we "mined" the data to produce a chart that showed a steep decline.

That's simply not so. All we've done is convert the government's nominal GDP stats into a fixed currency value that's based on real-world purchasing power. The fact is, our data are far more accurate than the government's because they represent the real-world experience. That's why our data are far more closely correlated to other real-world studies of wealth in America.

Consider, for example, annual sales of automobiles. Auto sales peaked in 1985 (11 million) and have been declining at a fairly steady rate since 1999. In 2009, Americans bought just 5.4 million passenger cars. As a result, the median age of a registered vehicle in the U.S. is almost 10 years.

Our data shows that real per-capita wealth peaked in the late 1960s. Guess when we find the absolutely lowest median age of the U.S. fleet? In 1969. At the end of the 1960s, the median age of all the cars on the road in the U.S. was only 5.1 years. Even as recently as 1990, the median age was only 6.5 years.

Rich people buy new cars. Poor people do not.

Most important, our data "proves" something I know many of you have felt or perceived for many years. You've seen the decline of your neighborhoods. You've gone years without being able to earn more money in your job. Or you've seen your purchasing power decrease to the point where you're now substituting lower-quality products on your grocery list for the brand-name products you used to buy.

You can see how much harder it is on your children to find good jobs, to buy good housing or a new car. As a result, few people under the age of 40 have the same kind of "life story" as their parents.

And because they can't "make it," many have decided to "fake it." The average college student now graduates with $24,000 in debt... and by his late 20s has racked up more than $6,000 in credit card debt. Meanwhile, median earnings for Americans aged 25-34 equals $34,000-$38,000. (Source: Demos.org, "The Economic State of Young America," November 2011.)

Can you imagine starting your life out as an adult with a personal debt-to-income level at close to 100%? What does this say about the state of our economy? What does this say about the state of our culture?

Who Suffers Most

It's not only the young that are having trouble in America. It is also the old.

Debt levels among households headed by people older than 62 have been rising for two decades.
The average mortgage size for this population is now $71,000 – five times larger than it was in 1987 (adjusted for inflation), according to William Apgar of Harvard's Joint Center for Housing Studies.

Older Americans are also more reliant on credit card debt than ever before... credit card debt. From 1992 through 2007 (which is the latest data available) older Americans took on credit card debt at a faster pace than the population as a whole. According to USA Today, lower- and middle-income Americans aged 65 and older now carry an average of more than $10,000 in credit card debt, up 26% since only 2005.

Given average interest rates of 20% for these debts, it's a fair bet that these obligations will never be repaid. But they will have a terrible impact on the standard of living of these older Americans.

What in the heck is going on? Don't Americans pay off their mortgages before they retire? Don't they work hard during their careers, save, and invest, so they can move to Florida and spend their retirement in comfort?

Older Americans living with credit card debt! This doesn't sound like America, does it? Or maybe it does.

My bet is that most of my subscribers know that something has gone terribly wrong with America. It's not easy to figure out how all of this happened... but you know from your own experiences that these numbers aren't wrong. It might not be pleasant to think about... but these figures paint a sad but accurate picture: America is not the country it was 40 years ago. These changes are warping our economy, politics, and culture.

In this month's issue, I'd like to try to define a few of the core reasons we're in this situation. I can't possibly analyze all the factors that have led to this decline. But I want to document the growth of graft in politics. I want to demonstrate – with real facts and examples – how public company leadership has deteriorated. And I want to document some of the things that are occurring in the broader society, all of which I believe are linked to this fundamental decline in our standard of living.


You see, I believe the decline of our country is primarily a decline of our culture.

We have lost our sense of honor, humility, and the dedication to personal responsibility that, for more than 200 years, made our country the greatest hope for mankind. I want to detail some of the factors that gave rise to the current entitlement society. We have become a country of people who believe their well-being is someone else's responsibility.

I've labeled these problems: The Corruption of America.

These problems manifest themselves in different ways across institutions in all parts of our society. But at their root, they are simply facets of the same stone. They are all part of the same essential problem.

The corruption of America isn't happening in one part of our country... or in one type of institution. It is happening across the landscape of our society, in almost every institution. It's a kind of moral decay... a kind of greed... a kind of desperate grasp for power... And it's destroying our nation.

The Ethos of 'Getting Yours'

Americans know, in their bones, that something terrible is happening. Maybe you can't articulate it. Maybe you don't have the statistics to understand exactly what's going on. But my bet is, you think about it a lot.

For me, a poignant moment of recognition came this month.

Bloomberg news published an article based on confidential sources about how Henry Paulson, the former CEO of Goldman Sachs and the Republican U.S. Treasury secretary during the financial crisis, held a secret meeting with the top 20 hedge-fund managers in New York City in late July 2008. This was about two weeks after he testified to Congress that Fannie Mae and Freddie Mac were "well-capitalized."

I knew for a fact that what Paulson told Congress wasn't true. I wrote my entire June 2008 newsletter detailing exactly why Fannie and Freddie certainly had billions in losses that they had not yet revealed to investors – $500 billion in losses, at least. There was no question in my mind, both companies were insolvent – "zeros," as I explained.

And yet, in front of Congress, the U.S. Treasury secretary was saying exactly the opposite. Either I was a liar... or he was.

Then... only a few days later... what did Paulson tell those hedge-fund managers?

He told them the same thing I had written in my newsletter. He told them the opposite of what he'd said publicly to Congress. He told these billionaire investors that Fannie and Freddie were a disaster... They would require an enormous, multibillion-dollar bailout... The U.S. government would have to take them over... And their shareholders would be completely wiped out.

Here you had a high-government official, explicitly lying to Congress (and by extension, the general public), while giving the real facts to a group of people who represented the financial interests of the world's wealthiest folks. The story didn't come to the public's attention for two years.

This was the most outrageous example of graft and corruption I have ever seen. Certainly it involves more billions of dollars in misappropriated value than any other similar story I can recall. These managers had the risk-free ability to make tens of billions of dollars, if not hundreds of billions, by using derivatives to capitalize on what they knew was the imminent collapse of the world's largest mortgage bank. Who picked up the tab? You know perfectly well. It was you and me, the taxpayers.

(One of the investment managers present at this meeting was Steve Rattner, who by that point was already deeply involved in another bit of graft, his efforts to bribe New York state pension-fund managers for large investments into his hedge fund, from which he earned perhaps as much as $100 million. He later settled the charges for a mere $10 million shortly after Andrew Cuomo was elected governor of New York.)

The Bloomberg story... about a crooked Treasury secretary handing a room full of crooked billionaires inside information worth billions of dollars... hardly caused a ripple. As far as I know, no actions are being planned against Henry Paulson or any of the hedge-fund managers involved. No other major media outlet picked up the story. I saw nothing about it from the Department of Justice or the Securities and Exchange Commission.

What does that say about our country when even the most egregious kind of corruption – involving hundreds of billions of dollars – is simply ignored?

It seems like everyone in our country has lost his moral bearing, from the highest government officials and senior corporate leaders all the way down to schoolteachers and local community leaders. The ethos of my fellow Americans seems to have changed from one of personal integrity and responsibility to "getting yours" – the all-out attempt, by any means possible, to get the most amount of benefits with the least amount of work.



You can see this in everything from the lowering of school standards (revising the SAT) to the widespread use of performance-enhancing drugs in professional, college, and high school sports. Cheating has become a way of life in America.

 I have an idea about how this happened... about the root cause of this kind of corruption and why it was inevitable, given some of the basic facts regarding how we've organized our government and our corporations.

Let me show you the numbers – the hard facts – behind what's happened to our country...

Editor’s note: This essay is excerpted from one of the most controversial documents in America right now… the December 2011 issue of Stansberry’s Investment Advisory. To access the full issue – where Porter walks readers through the facts behind the rampant and blatant corruption that has us on the brink of an economic crisis – click here. It’s the most important document you’ll read in the next year… and it’s completely, 100% free. Warning: Do not read this if you are easily offended.

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“Records show that four out of Obama's top five contributors are employees of financial industry giants - Goldman Sachs ($571,330), UBS AG ($364,806), JPMorgan Chase ($362,207) and Citigroup ($358,054).”


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IF YOU’RE NOT A BANKSTER, OR MEMBER OF THE MEXICAN FASCIST PARTY of LA RAZA, YOU WILL NOT FIND A POSITION IN THE OBAMA WHITE HOUSE.

THE REASON WHY OBAMA  BROUGHT IN BILL DALEY AS CHIEF OF STAFF, IS TO FURTHER HAND THE WHITE HOUSE  TO BIG BANKS, LIKE BUSH CHENEY WORKED FOR BIG BUSH SAUDIS (9-11 INVADERS) OIL, OR LA RAZA!

BILL DALEY IS A BANKSTERS’ MAN, AND ADVOCATE FOR OPEN BORDERS, AMNESTY OR OBAMA’S CONTINUED SABOTAGE OF OUR LAWS AND BORDERS FOR LA RAZA.



FROM CREOLE FOLKS



Obama Seeks Brother of "Chicago Mob Boss" for Top White House Post

The roaches and con-artist, fake journalist on cable news are all lying about William Daley being all this and all that, this man is an open borders, down with America, free trade globalist.  MSNBC and Gretta "the Scientology" Van Susteren from Fox News are knowingly deceiving the public about D. Issa & his letter to "business owners"=which they made into such a BIG DAM DEAL, but no one says anything when Barrack Hussein Obama, comes around with all of these shady bankers, hedge fund managers and Wall St. Tycoons, which he puts in his cabinet.  All of Obama's meeting with Wall Street asking, "What can I do for you?" is never something covered by Keith Oberman or Rachel Maddow. 

(Bloomberg) -- President Barack Obama is considering naming William Daley, a JPMorgan Chase & Co. executive and former U.S. Commerce secretary, to a high-level administration post, possibly White House chief of staff, people familiar with the matter said.



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Obamanomics: How Barack Obama Is Bankrupting You and Enriching His Wall Street Friends, Corporate Lobbyists, and Union Bosses




BY TIMOTHY P CARNEY





Editorial Reviews

Obama Is Making You Poorer—But Who’s Getting Rich?

Goldman Sachs, GE, Pfizer, the United Auto Workers—the same “special interests” Barack Obama was supposed to chase from the temple—are profiting handsomely from Obama’s Big Government policies that crush taxpayers, small businesses, and consumers. In Obamanomics, investigative reporter Timothy P. Carney digs up the dirt the mainstream media ignores and the White House wishes you wouldn’t see. Rather than Hope and Change, Obama is delivering corporate socialism to America, all while claiming he’s battling corporate America. It’s corporate welfare and regulatory robbery—it’s Obamanomics.

Congressman Ron Paul says, “Every libertarian and free-market conservative needs to read Obamanomics.” And Johan Goldberg, columnist and bestselling author says, “Obamanomics is conservative muckraking at its best and an indispensable field guide to the Obama years.”

If you’ve wondered what’s happening to America, as the federal government swallows up the financial sector, the auto industry, and healthcare, and enacts deficit exploding “stimulus packages,” this book makes it all clear—it’s a big scam. Ultimately, Obamanomics boils down to this: every time government gets bigger, somebody’s getting rich, and those somebodies are friends of Barack. This book names the names—and it will make your blood boil.

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Obama Is Making You Poorer—But Who’s Getting Rich?

Goldman Sachs, GE, Pfizer, the United Auto Workers—the same “special interests” Barack Obama was supposed to chase from the temple—are profiting handsomely from Obama’s Big Government policies that crush taxpayers, small businesses, and consumers.

Investigative reporter Timothy P. Carney digs up the dirt the mainstream media ignores and the White House wishes you wouldn’t see. Rather than Hope and Change, Obama is delivering corporate socialism to America, all while claiming he’s battling corporate America. It’s corporate welfare and regulatory robbery—it’s Obamanomics. In this explosive book, Carney reveals:

* The Great Health Care Scam—Obama’s backroom deals with drug companies spell corporate profits and more government control

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* The Global Warming Hoax—Obama has bought off industries with a pork-filled bill that will drain your wallet for Al Gore’s agenda

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* Obama and Wall Street—“Change” means more bailouts and a heavy Goldman Sachs presence in the West Wing (including Rahm Emanuel)

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* Stimulating K Street—The largest spending bill in history gave pork to the well-connected and created a feeding frenzy for lobbyists

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* How the GOP needs to change its tune—drastically—to battle Obamanomics

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If you’ve wondered what’s happening to our country, as the federal government swallows up the financial sector, the auto industry, and healthcare, and enacts deficit exploding “stimulus packages” that create make-work government jobs, this book makes it all clear—it’s a big scam. Ultimately, Obamanomics boils down to this: every time government gets bigger, somebody’s getting rich, and those somebodies are friends of Barack. This book names the names—and it will make your blood boil.

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Praise for Obamanomics

“The notion that ‘big business’ is on the side of the free market is one of progressivism’s most valuable myths. It allows them to demonize corporations by day and get in bed with them by night. Obamanomics is conservative muckraking at its best. It reveals how President Obama is exploiting the big business mythology to undermine the free market and stick it to entrepreneurs, taxpayers, and consumers. It’s an indispensable field guide to the Obama years.”
—Jonha Goldberg, LA Times columnist and best-selling author

“‘Every time government gets bigger, somebody’s getting rich.’ With this astute observation, Tim Carney begins his task of laying bare the Obama administration’s corporatist governing strategy, hidden behind the president’s populist veneer. This meticulously researched book is a must-read for anyone who wants to understand how Washington really works.”
—David Freddoso, best-selling author of The Case Against Barack Obama

“Every libertarian and free-market conservative who still believes that large corporations are trusted allies in the battle for economic liberty needs to read this book, as does every well-meaning liberal who believes that expansions of the welfare-regulatory state are done to benefit the common people.”
—Congressman Ron Paul

“It’s understandable for critics to condemn President Obama for his ‘socialism.’ But as Tim Carney shows, the real situation is at once more subtle and more sinister. Obamanomics favors big business while disproportionately punishing everyone else. So-called progressives are too clueless to notice, as usual, which is why we have Tim Carney and this book.”
—Thomas E. Woods, Jr., best-selling author of Meltdown and The Politically Incorrect Guideto American History

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·         Hardcover: 256 pages

·         Publisher: Regnery Press (November 30, 2009)

·         Language: English

·         ISBN-10: 1596986123

·         ISBN-13: 978-1596986121



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The Obamas’ new home has received a lot of attention in the corporate media and on the blogs. This post will discuss other perspectives.

Hyde Park, where the Obamas have lived since 1994, is home to the University of Chicago (UC) Law School and at least one of UC’s hospitals. Leo Struass taught in the university’s Committee on Social Thought. The Federalist Society was born at UC, and it is the alma mater of many Neo Cons, including Supreme Court Justice Antonin Scalia.

Kenwood, where the Obamas’ new home sits, is a small neighborhood, only 1.09 miles in area. It is bound on the south by Hyde Park, on the north by North Kenwood, and on the west by the neighborhood of Highland. Kenwood was once one of the most elite neighborhoods in all of Chicago.

This map shows the juxtaposition of the Hyde Park and Kenwood neighborhoods:

The Obamas had decided that politics was Barack’s ultimate future while still dating. In 1991, then Michelle Robinson, who was then Obama’s fiancĂ©e, left her job at the law firm of Sidley Austin Brown & Wood. She went to work for the city of Chicago, first as an assistant to Mayor Daley, then as the Executive Director of Public Allies Chicago, a nonprofit that provides leadership training to young adults interested in public service careers.

In 1996, she left the Public Allies to help create a student volunteer program at The University of Chicago. By the time of this interview, she was the Executive Director of Community Affairs for The University of Chicago Hospitals. This is how Michelle portrays her change of career:

She was devastated when her father died from MS complications. “That’s when I started analyzing my life, sitting in a firm,” she recalls, adding that in that same year she also lost one of her best friends from college to cancer. She soon left the firm to pursue a much lower-paying path in the public sector.

The fact is Michelle was actively recruited for City Hall by a close friend, Valerie Jarrett, who was Mayor Daley’s Deputy Chief of Staff at that time. Valerie later became the Finance Chair of Obama’s 2004 US Senate campaign and then First Treasurer of Barack’s political action committee, Hopefund.

It helps to have friends at City Hall. Among other positions, Michelle was appointed twice to sit on the board of the Commission of Chicago Landmarks for two consecutive terms. Michelle maintained this board seat from 1998 to March 2005, although normally a member only serves one 4 year term.

Flush from the success of Barack’s speech at the 2004 Democratic National Convention, the Obamas decided it was time to find a residence more fitting for their anticipated new status. Barack’s 1995 autobiography Dreams of My Father soared, and they knew Alan Keyes was no threat to their future success in the US Senate elections.

Sitting on the Commission of Chicago Landmarks board, Michelle knew of a permit, waiting for review and approval to sell, for a designated Historical Georgian revival home built in 1910 with four fireplaces, glass-door bookcases fashioned from Honduran mahogany, and a 1,000-bottle wine cellar owned by a doctor in Kenwood. The Commission is supported not only by donations and taxes but also by charges for permits. It’s a pretty extensive process, and they want a complete history of the house and property when a permit is requested. Once the Board approves a permit, the application goes to the city planning or zoning commission if more than a simple sale is involved.

The doctor who owned the Kenwood home wanted more than the Obamas could afford. As Barack has stated in numerous press interviews, buying the home would be a stretch. Barack contacted his patron Tony Rezko, despite knowing he was under investigation at the time, in order to see what could be done so the Obamas could afford their dream house. Sub-division was likely the agreed-on solution. In order to divide the lot, which the doctor purchased as one entity, he would have to:

– Hire an approved architect and general contractor, who had been involved in renovations and sub-divisions in Kenwood previously

– Have the lots surveyed and new plot plans drawn

– Re-start the Landmark Commission permit approval process

– Hold a public hearing (required).

On page 51 of the Commission on Landmarks Ordinances, one finds a justification for the doctor agreeing to subdividing the land.

The applicant bears the burden of proof that the existing use of the property is economically infeasible and that the sale, rental or rehabilitation of the property is not possible, resulting the property not being capable of earning any reasonable economic return.

Pages 51 and 52 of the Landmark ordinances show how many proofs and other forms of extensive documentation are required in order to subdivide the land. Can any rational person believe the doctor would have been willing to go along with having his property sub-divided, and all the work and time involved, without compensation and assistance? Who paid for this?

With Michelle sitting on the Landmarks board, Commission approval wasn’t expected to be an issue, even though I have not located notice of the Public Hearing from any of the involved boards. From there it would go to the City Planning Board and the Zoning Boards, which also require public hearings. Each of these steps average between 6 weeks and 3 months to complete.

The doctor’s property was located in what Chicago Zoning Terms refer to as Residential Single zone 1, or RS1. This means the house the Obamas bought required 6,250 sq. ft of area. Even if it had the designation lowered to RS2, it still would have required 5,000 square feet, as seen on page 5 of Chicago’s zoning ordinances. Starting on page 8, the ordinances specify setbacks and how much space must be available on each side of a building. The open space on the building’s sides normally conform to Fire Regulations, so that equipment can access all portions of a building during crises.

Public Records at the Chicago Commission on Landmarks, the Chicago Planning Department and Chicago Zoning Boards would show the exact dates of permits, hearings and approvals. Michelle was so confident she listed the Obamas’ condo, which was located on the first floor of a Hyde Park Brownstone. In October 2004, Michelle expressed surprise to a Chicago interviewer that the Condo had sold so quickly, which meant they either had to put off a closing date or write in a lease agreement for a specified amount of time in their Condo purchase contract.

2004 was a year flush with success for the Obamas: the autobiographical book sales increased; the DNC speech had been well received; Obama won his US Senate seat; and Michelle received a recent promotion to a $316,962-a-year position as Vice President at The University of Chicago Hospitals. Their income was over 1.67 million dollars, with anticipation of even greater gains ahead.

All that needed to be done, in the name of the doctor, on the Kenwood property was completed by March 2005, and the house was finally listed. Michelle Obama resigned her seat on the Chicago Commission on Landmarks at the same time. Barack and Michelle closed on their new home in June of 2005, for $1.65 million dollars, $300,000 less than the asking price, and most likely using the proceeds of their Condo for a down payment, while taking out a mortgage for $1.32 million from Northern Trust. Tony Rezko’s wife purchased the newly divided sub-plot for the full price of $625,000 and closed on the same day.

The City of Chicago requires parking permits, or people must rent space at parking garages for around $30 per diem. There is no overnight on-street parking. The Obamas had no yard to park on, and most likely parked on Rezko’s property.

Within in a month of purchasing their new home, the Obamas began the same process the doctor previously went through. Because Tony Rezko was being indicted, they needed to be distanced from him. So the Obamas hired a lawyer and an architect. Additionally, the Obama’s wanted to put up a fence separating the two properties. On page 21 of the Landmark Ordinances above, it states fences for Historic homes can be no more than 5’ high and must not be visible from the street. If the Obamas had purchased a prefab chain, picket or wooden fence, they would have lost the Historic designation and also the eight-year property tax freeze benefit accrued by agreeing to keep the house in conformance with Landmark regulations.

A picture of the front view of Obamas’ house reveals landmark and zoning requirements.

The concrete wall and evergreens were most likely done after the city appropriated land for sidewalks, and the paving of what has been noted as a wide and busy thoroughfare. If you notice, the trees were planted one to two feet behind the concrete wall, most probably a result of zoning constraints.

The new fence was specially fabricated to conform to historic standards, and the $14,000 cost was billed to Rezko per agreement by Obama and Rezko. Obama states he paid for the architect and Lawyer. Strangely enough the fence actually sits ON the property line between the two lots. Obama agreed to yard maintenance for both properties. And given Obama’s history with the Harvard Law Review and his limited known court experience from public records, Obama most likely either edited or personally wrote the legal documents for his sub-division and the fence. On January 12, 2006, the Obamas closed on the 1/6th of Rita Rezko’s property they purchased for $104,500.

Facts not specifically cited above, and much more, can be found in this Chicago Tribune article.

In all likelihood the driveway was previously on Rezko land. Behind the house is most likely an old carriage house converted into a garage. Parking on the street in that type of neighborhood is prohibited by zoning and fire safety laws, unless someone in authority had been previously notified of a large gathering.

One other event of note occurred in 2005. Daniel Mahru, Rezko’s partner in Rezmar for 16 years until the two men had, according to Mahru, “a difference of opinion,” resigned from Rezmar, Rezko’s slum landlord operation. Did Mahru leave because he knew any shady deals while Rezko was being investigated would lead to disaster?

There were lots of people involved in the purchase of the Obamas’ house, and they would all be owed some kind of consideration for their help and support. Obama’s favors from Rezko amount to $925,000, plus an additional $14,000 for the fence, bringing the total cash value to just one person to $939,000.

Will Rezko sit quietly in jail or will he bring Mayor Daley, Governor Blagojevich and Senator Obama down with him?

How will Obama repay the “favors” he owes all these people?
I am sure Patrick Fitzgerald will reveal all these connections and much more in Rezko’s upcoming trial at the end of this month