Why did chimpy McCokeSpoon do this? Anyone?

Executive Order: European Central Bank

By the authority vested in me as President by the Constitution and the laws of the United States of America, including sections 1 and 15 of the International Organizations Immunities Act (22 U.S.C. 288 and 288f-5), I hereby extend to the European Central Bank the privileges, exemptions, and immunities provided to public international organizations designated by the President under the International Organizations Immunities Act.

This extension of such privileges, exemptions, and immunities is not intended to abridge in any respect privileges, exemptions, or immunities that the European Central Bank otherwise may have acquired or may acquire by international agreements or by law.

GEORGE W. BUSH
THE WHITE HOUSE,
May 29, 2003.

http://www.whitehouse.gov/news/releases/2003/05/20030529-7.html

Is the International Organizations Immunities Act?

http://www.un.int/usa/host_io.htm

"Property and assets of international organizations, wherever located and by whomsoever held, shall be immune from search, unless such immunity be expressly waived, and from confiscation. The archives of international organizations shall be inviolable."


To me, it looks like something is being buried behind the barn.

The way I read the text of the bill...To me it looks as if they are giving "Foreign Organizations" a major tax break.

" (16) Service performed in the employ of an international organization entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act."

(b) No tax sliall be collected under title VIII or IX of the Social Security Act or under the Federal Insurance Contributions Act or the Federal Unemployment Tax Act, with respect to services rendered prior to January 1., 1946, which are described in paragraph (16) of sections 1426 (6) and 1607 (c) of the Internal Revenue Code, as amended, and any such tax heretofore collected (including penalty and interest with respect thereto, if any) shall be refunded in accordance with the provisions of law applicable in the case of erroneous or illegal collection of the tax. No interest shall be allowed or paid on the amount of any such refund. No payment shall be made under title 11 of the Social Security Act with respect to services rendered prior to January 1, 1946, which are described in paragraph (16) of section 209 (b) of such Act, as amended.

SEC. 6. International organizations shall be exempt from all property taxes imposed by, or under the authority of, any Act of Congress, including such Acts as are applicable solely to the District of Columbia or the Territories. "

look here for the truth.

n/t

its an old law, circa 1940s......did some light reading from it, dont quite grasp the purpose of this executive order though

google "International Organizations Immunities Act"

Do we not have a banker around here, or is this like, the way wrong web site for a banker????

Here's a house bill it looks like they were trying to pass, then Bush just signed it in instead I guess. Looks like they've given the European Central Bank the same status as our own Central Banks????

http://www.gop.gov/committeecentral/docs/bills/107/1/bill.asp?bill=hr3656

is moving "offshore" This would be an huge tax saving for them. Or is it something else?

European money is no longer flowing into the US government auctions of T-Bills by which we need to extract sufficient loans from investors to support our profligate spending practices.

European money flows have fallen off drastically since the Iraq controversy began, and especially so in view of the weakness of the dollar vis-a-vis the Euro.

As I read it, this act essentially extends immunity from seizure of funds to the European Central Bank's institutional investments--meaning the investment of the funds it must keep on hand to satisfy its legal reserve requirements. We want them buying USGov bonds with those funds.

It was probably needed because of the new financial institutions being established in Europe which may not otherwise have been included in prior legislation. I'm sure this is the equivalent of what we offer all foreign banking systems, except those in places like Cuba, Iran, N Korea, etc.

They have started seizing money from banks that are suspected of doing business with "terrorists". It doesn't come out of the individual account of the terrorist, it comes out of the bank, and it is up to the bank to deal with the loss.

If the person is later found innocent, the money will be returned. Meanwhile, the bank is without the money.

Does anyone else remember this?

P.S. I don't remember clearly the part about the money being returned, but I presume that.

could it have something to do with the weakness in the dollar? There are some who believe that dollar demoninated assets aren't something one wants to own right now. Given the exploding deficit (budget and trade), the low interest rates, and the real possibility of commodity inflation, the folks with dollar based assets might want to transition to something in euros.