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    4th Quarter 2001 Calulating The Cost of Terror

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    AntiCleptocrat
    This document summarizes the estimated costs from the September 11th terrorist attacks in 2001. It details the billions of dollars needed for rebuilding and infrastructure repairs in New York City, including $6.7 billion for the World Trade Center and $5.3 billion for surrounding structures. Other costs included loss of personal property ($3.2 billion), cleanup of debris ($4 billion), overtime pay for first responders ($7 billion), and lost economic activity ($60 billion+). The total estimated cost to New York City within two years was over $105 billion. Insurance losses from the attacks were estimated between $15-50 billion, greatly exceeding losses from past disasters like Hurricane Andrew. Many major insurance companies reported billions in losses.

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    4th Quarter 2001 Calulating The Cost of Terror

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    AntiCleptocrat
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    This document summarizes the estimated costs from the September 11th terrorist attacks in 2001. It details the billions of dollars needed for rebuilding and infrastructure repairs in New York City, including $6.7 billion for the World Trade Center and $5.3 billion for surrounding structures. Other costs included loss of personal property ($3.2 billion), cleanup of debris ($4 billion), overtime pay for first responders ($7 billion), and lost economic activity ($60 billion+). The total estimated cost to New York City within two years was over $105 billion. Insurance losses from the attacks were estimated between $15-50 billion, greatly exceeding losses from past disasters like Hurricane Andrew. Many major insurance companies reported billions in losses.

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    4th Quarter 2001 Calulating the Cost of Terror

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    This document summarizes the estimated costs from the September 11th terrorist attacks in 2001. It details the billions of dollars needed for rebuilding and infrastructure repairs in New York City, including $6.7 billion for the World Trade Center and $5.3 billion for surrounding structures. Other costs included loss of personal property ($3.2 billion), cleanup of debris ($4 billion), overtime pay for first responders ($7 billion), and lost economic activity ($60 billion+). The total estimated cost to New York City within two years was over $105 billion. Insurance losses from the attacks were estimated between $15-50 billion, greatly exceeding losses from past disasters like Hurricane Andrew. Many major insurance companies reported billions in losses.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views4 pages

    4th Quarter 2001 Calulating The Cost of Terror

    Uploaded by

    AntiCleptocrat
    This document summarizes the estimated costs from the September 11th terrorist attacks in 2001. It details the billions of dollars needed for rebuilding and infrastructure repairs in New York City, including $6.7 billion for the World Trade Center and $5.3 billion for surrounding structures. Other costs included loss of personal property ($3.2 billion), cleanup of debris ($4 billion), overtime pay for first responders ($7 billion), and lost economic activity ($60 billion+). The total estimated cost to New York City within two years was over $105 billion. Insurance losses from the attacks were estimated between $15-50 billion, greatly exceeding losses from past disasters like Hurricane Andrew. Many major insurance companies reported billions in losses.

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    of 4

    4th Quarter 2001

    Volume 9 Issue 4

    Calculating the Cost of Terror


    It is not that difficult to seek a dollar value for the destruction in New York City and The Pentagon. Figures lurk in every article on the subject. We will certainly calculate the dollar cost of terror, but other costs come into play and these will be examined as well. The cost of rebuilding the Trade Center is $6.7 Billion. Repair work to surrounding structures in the area, another $5.3 Billion. The cost to restore or replace the information technology and communications infrastructure that was affected within the immediate area will exceed $15 Billion. New public roads and infrastructure will cost about $9.4 Billion, with $4 Billion spent on subways, $3 Billion on utilities and $2.4 Billion on Rail services. Loss of collateral personal property is estimated at $3.2 Billion. Staggering sums though they are, lets not forget that the city has since signed contracts for $1 Billion so far to clear the 500,000 tons of concrete and steel. With 1.5 million more tons to go, thats another $3 Billion. Add in overtime for police, fire and sanitation officers, replacing vehicles owned by the city, the cost of new hire training, death benefits, funeral expenses and ceremonial costs and you have another $7 Billion. The value of lost economic activity could exceed $60 Billion. The New York Stock Exchange, American Stock Exchange and the Nasdaq closed for 4 days, causing the loss of business estimated at $7.5 Billion. Tourism, theatres, restaurants, hotels and are believed to have lost $2 Billion. This attack will cost New York City and its residents over $105 Billion during the next 2 years. skyrocketed at every major firm. Governments are discussing spending areas that did not even have a category before. Items like identification and detection equipment, bulkexplosives scanners and Passive wave millimeter imaging devices. Richard Clarke, the nation's computer security chief, told Congress that The White House wants to increase IT security spending from $2.7 Billion to $4.2 Billion. Total IT spending is budgeted at $52 Billion for next year. Even more frightening is the proposal of Senator Joseph Lieberman (D.-Conn.), to fund an "early-warning detection system" that would identify suspected terrorists if they tried to book flights. This system would actually include a secure computer database accessible to law enforcement agencies and wily computer hackers. It would feature the use of biometric smart cards to confirm identities and check fingerprints or facial differences on passport photos. All of this information would be compiled and made available via a national database of passport and visa holders. Computers of Immigration and Naturalization Service would be linked to all border patrol, immigration, offices, schools, universities and customs networks. The prospect of free, anonymous travel, is another postscript of history.

    Imagine, Hurricane Andrew..twice. The city spent $1 Billion so far just to clear the 500,000 tons of concrete and steel. With 1.5 million more tons to go, thats another $3 billion just for cleanup!
    Postmaster General, John E. Potter, estimated costs to the post office at $50 million for improved physical security and irradiation equipment, not to mention the massive cleanup bills. The damaged Pentagon wedge sections have to be torn down, cleared and rebuilt, and that will take about 18 months, said Walker Evey, Pentagon renovation project manager, further estimating it could cost around $1 Billion for repairs and renovations. Security costs have

    Andrew Gauses THE WORLD OF MONEY

    New records for Money Supply and Debt


    12/02/2001 Total Govt Debt 12/01/2001 Money Supply $5,943,438,563,436.13 $7,961,000,000,000.00

    Watch these numbers. Our debt ceiling is 5.9 trillion and were bumping against it. As for the money supply figures, we will exceed 8 trillion by January 25th, by my calculations. Of course, the amount of money added as a result of 09/11/01 has yet to be felt. See these numbers for yourself WWW.USGOLDCOINS.COM

    A Tax System for a Borderless World


    In September 2000, the gathering of the United Nations General Assembly concluded on an historic note, with the adoption of the Millennium Declaration. Recommended by this Declaration, governments are to work to free the world of extreme poverty. ...to reduce extreme poverty and access to safe drinking water by 50%; to achieve universal primary education and gender equality in education; to accomplish a 75% decline in maternal mortality and a 66% decline in mortality among children under five; to halt and to reverse the spread of HIV/AIDS, and to provide special assistance to AIDS orphans; and to improve the lives of 100 million slum dwellers. public finances, the condition of the financial system, and other basic elements of a countrys economic environment. That sounds reasonable. A country is responsible for its own well being, through sound fiscal policies. The Panel recommends that the following issues be addressed:

    The total elimination of remaining trade barriers in manufacturing. The Panel endorses the proposal of the Commission on Global Governance to create a global council at the highest political level to provide leadership on issues of global governance. Politically, taxing for the solution of global problems will be much more difficult than taxing for purely domestic purposes, new sources These sound like noble goals indeed, but like every of finance should be considered without other noble scheme, how do you pay for it? This prejudice by all parties involved. In particular, a highlights the major differences between this and currency transactions tax, and a tax on the all previous UN declarations. The Millennium consumption of fossil fuels, at rates that reflect Declaration highlighted the task of raising the the contribution of these fuels to CO2 emissions. financial resources needed to finance these lofty The Panel proposes an International Tax goals. At the upcoming Conference and Summit in Organization (ITO) to...sponsor a mechanism for Financing for Development, scheduled to be held multilateral sharing of tax information, so as to in March 2002, the UN will deal with these issues. curb the evasion and control the movement of These are the key areas identified: natural persons... Domestic Resource Mobilization. It is the actions Wow, now thats telling it like it is. A World Tax of domestic governments that determine the state Organization. One more bureaucracy to deal with of macroeconomic and microeconomic policies, the and one more hand in your pocket. Page 2

    Depending on your carrier, you may see a major increase in your insurance premiums. Listed at right are the biggest losses as a result of the attacks. Many of the re-insurance companies like Munich Re and Swiss Re, provide a way for smaller companies to lay-off their risk. With these folks taking major losses, it is easy to see how they might be reluctant to provide an avenue for smaller companies to reduce their risk. The total insurance losses from the attack won't be known for some time, but current estimates range from $15 billion to $50 billion, surpassing Hurricane Andrew, which created losses of $19 billion. This stands against industry wide surplus premiums of $318 billion at the end of 2000, according to UBS Warburg. Warren Buffetts Berkshire Hathaway (NYSE: BRK.A) pegged its losses at $2.2 billion. General Re, a subsidiary of Berkshire and one of the world's largest reinsurers, estimates it will have to pay 5% of the total losses by itself .The losses are accounted for in Berkshire's third-quarter results. Typically, the industry has responded to catastrophes by raising rates to deal with the losses, which means firms with the highest profits could benefit from the industry-wide price increases.

    Total 9 -11 Losses ( The companies provided these numbers - they are dubiously low)

    $2.20 $2.70 $1.90 $1.25

    Billion Billion Billion Billion

    Berkshire Hathaway Lloyd's of London Munich Re Swiss Re Allianz Zurich Financial AIG XL Capital St Paul Employers Re Axa Travelers (Citigroup) Partner Re Ace Hannover Re CNA Financial MetLife Scor Royal & Sun Alliance Fairfax Financial Cox One Beacon Brit Insurance Chubb Amlin Everest Re Wellington Underwriting Markel Hiscox Cigna Page 3

    $975 Million $900 Million $820 Million $700 Million $700 Million $600 Million $550 Million $500 Million $350 Million $400 Million $365 Million $350 Million $300 Million $250 Million $290 Million $200 Million $179 Million $175 Million $119 Million $100 Million $87 Million $75 Million $74 Million $75 Million $43 Million $25 Million

    The Bank for International Settlements, (BIS), has taken the time to figure the total amount of money, bet in one form of derivative or another. The figure is shocking. Consider that the total supply of money is just under 8 trillion. I find it appalling that the nations banks and institutions have allowed gamblers to bet the farm on derivatives or the future value of something. The notional or total value of on-the-books derivatives transactions is $98.835 trillion as of the end of June, 2001, of which $67 trillion were interest-rate contracts; $17 trillion were foreign exchange contracts; $1.9 trillion were equity contracts; $590 billion were commodity contracts; and $12 trillion in the other category. The total amount that could be lost on this total is about $1 trillion. The global on the books figure was $96 trillion at the end of 2000, and $88 trillion at the end of 1999. The reason I make the distinction is because there are untold trillions in off the books derivative transactions, which I believe will lead to ruin. To paraphrase; a trillion here a trillion there and pretty soon you are talking real money.

    Q & A with Andrew Gause


    Can the Federal Reserve Bank run out of money? No. The Federal Reserve Bank has the exclusive power to create money in the United States. In effect, this bank has been allowed to borrow money from our collective future, and our children's and grandchildren's futures, and loan it to our present government. That is taxation without representation. Future generations will need to pay from 80 to 85 percent of their total wages to satisfy America's debt obligation. What would happen if the supply of dollars was fixed and limited? You could save money throughout your life, and every dollar you saved would retain its full purchasing power. Clearly this is currently not the case. Retaining wealth in Federal Reserve Notes is a recipe for wealth deterioration. Can the Federal Reserve System continue indefinitely? One thing to realize about our fractional reserve banking system is that, like a child's game of musical chairs, as long as the music is playing, there are no losers. As long as people that own credit dollars ( these are notes that are not yet printed, but are simply "blips" in an account, mere computer entries ) do not turn these "blips" into paper money, the game can continue forever.

    WWW.USGoldCoins.com S.D.L. P.O. Box 198 Hawthorne, NJ 07507

    Important changes to our currency are just ahead. Keep yourself informed!

    Buy the Book

    The Secret World of Money 138 pages Q and A $15.95

    800-468-2646

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