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The Economic Scam of the Century

March 27, 2014 by · Leave a Comment 

The leaders of the U.S. Senate Banking Committee,  Sen. Tim Johnson (D., S.D.) and Sen. Mike Crapo (R., Idaho),  released a draft bill on Sunday that would provide explicit government guarantees on mortgage-backed securities (MBS) generated by privately-owned banks and financial institutions. The gigantic giveaway to Wall Street would put US taxpayers on the hook for 90 percent of the losses on toxic MBS the likes of which crashed the financial system in 2008 plunging the economy into the deepest slump since the Great Depression. Proponents of the bill say that new rules by the Consumer Financial Protection Bureau (CFPB) –which set standards for a “qualified mortgage” (QM)– assure that borrowers will be able to repay their loans thus reducing the chances of a similar meltdown in the future. However, those QE rules were largely shaped by lobbyists and attorneys from the banking industry who eviscerated strict underwriting requirements– like high FICO scores and 20 percent down payments– in order to lend freely to borrowers who may be less able to repay their loans.  Additionally, a particularly lethal clause has been inserted into the bill that would provide blanket coverage for all MBS  (whether they met the CFPB’s QE standard or not) in the event of another financial crisis. Here’s the paragraph:

“Sec.305. Authority to protect taxpayers in unusual and exigent market conditions….

If the Corporation, the Chairman of the Federal Reserve Board of Governors and the Secretary of the Treasury, in consultation with the Secretary of Housing and Urban Development, determine that unusual and exigent circumstances threaten mortgage credit availability within the U.S. housing market, FMIC may provide insurance on covered securities that do not meet the requirements under section 302 including those for first loss position of private market holders.” (“Freddie And Fannie Reform – The Monster Has Arrived”, Zero Hedge)

In other words, if the bill passes,  US taxpayers will be responsible for any and all bailouts deemed necessary by the regulators mentioned above.  And, since all of those regulators are in Wall Street’s hip-pocket, there’s no question what they’ll do when the time comes. They’ll bailout they’re fatcat buddies and dump the losses on John Q. Public.

If you can’t believe what you are reading or if you think that the system is so thoroughly corrupt it can’t be fixed; you’re not alone. This latest outrage just confirms that the Congress, the executive and all the chief regulators are mere marionettes performing whatever task is asked of them by their Wall Street paymasters.

The stated goal of the Johnson-Crapo bill is to “overhaul” mortgage giants Fannie Mae and Freddie Mac so that “private capital can play the central role in home finance.” (That’s how Barack Obama summed it up.) Of course, that’s not really the purpose at all. The real objective is to hand over the profit-generating mechanism to the private banks (Fannie and Freddie have been raking in the dough for the last three years) while the red ink is passed on to the public. That’s what’s really going on.

According to the Wall Street Journal,  the bill will

“construct an elaborate new platform by which a number of private-sector entities, together with a privately held but federally regulated utility, would replace key roles long played by Fannie and Freddie….”

“The legislation replaces the mortgage-finance giants with a new system in which the government would continue to play a potentially significant role insuring U.S. home loans.” (“Plan for Mortgage Giants Takes Shape”, Wall Street Journal) 

“Significant role”? What significant role? (Here’s where it gets interesting.)

The WSJ:

“The Senate bill would repurpose the firms’ existing regulator as a new “Federal Mortgage Insurance Corp.” and charge the agency with approving new firms to pool loans into securities. Those firms could then purchase federal insurance to guarantee payments to investors in those bonds. The FMIC would insure mortgage bonds much the way the Federal Deposit Insurance Corp. provides bank-deposit insurance.”

Unbelievable. So they want to turn F and F into an insurance company that backs up the garbage mortgages created by the same banks that just ripped us all off for trillions of dollars on the same freaking swindle?

You can’t be serious?

More from the WSJ:  “Mortgage guarantors would be required to maintain a 10% capital buffer against losses and to have that capital extinguished before the federal insurance would be triggered.”

10 percent? What the hell difference does 10 percent make; that’s a drop in the bucket.  If the banks are going to issue mortgages to people who can’t repay the debt, then they need to cover the damn losses themselves, otherwise they shouldn’t be in the banking biz to begin with, right?

This is such an outrageous, in-your-face ripoff, it shouldn’t even require a response. These jokers should be laughed out of the senate. All the same,  the bill is moving forward, and President Twoface has thrown his weigh behind it. Is there sort of illicit, under-the-table, villainous activity this man won’t support?

Not when it comes to his big bank buddies, there isn’t. Now check out this clip from an article by economist Dean Baker. Baker refers to the Corker-Warner bill, but the Crapo-Johnson fiasco is roughly the same deal. Here’s Baker:

“The Corker-Warner bill does much more than just eliminate Fannie and Freddie. In their place, it would establish a system whereby private financial institutions could issue mortgage-backed securities (MBS) that carry a government guarantee. In the event that a large number of mortgages in the MBS went bad, the investors would be on the hook for losses up to 10 percent of its value, after that point the government gets the tab.

If you think that sounds like a reasonable system, then you must not have been around during the housing crash and ensuing financial crisis. At the peak of the crisis in 2008-2009 the worst subprime MBS were selling at 30-40 cents on the dollar. This means the government would have been picking up a large tab under the Corker-Warner system, even if investors had been forced to eat a loss equal to 10 percent of the MBS price.

The pre-crisis financial structure gave banks an enormous incentive to package low quality and even fraudulent mortgages into MBS. The system laid out in the Corker-Warner bill would make these incentives even larger. The biggest difference is that now the banks can tell investors that their MBS come with a government guarantee, so that they most they stand to lose is 10 percent of the purchase price.” (“The disastrous idea for privatizing Fannie and Freddie”, Dean Baker, Al Jazeera)

Just ponder that last part for a minute: “The bill would make these incentives even larger.”

Do you really think we should create bigger incentives for these dirtbags to rip us off? Does that make sense to you? Here’s more from Baker:

“The changes in financial regulation are also unlikely to provide much protection. In the immediate wake of the crisis there were demands securitizers keep a substantial stake in the mortgages they put into their pools, to ensure that they had an incentive to only securitize good mortgages. Some reformers were demanding as much as a 20 percent stake in every mortgage.

Over the course of the debate on the Dodd-Frank bill and subsequent rules writing this stake got ever smaller. Instead of being 20 percent, it was decided that securitizers only had to keep a 5 percent stake. And for mortgages meeting certain standards they wouldn’t have to keep any stake at all.

Originally only mortgages in which the homeowner had a down payment of 20 percent or more passed this good mortgage standard. That cutoff got lowered to 10 percent and then was lowered further to 5 percent. Even though mortgages with just 5 percent down are four times as likely to default as mortgages with 20 percent or more down, securitizers will not be required to keep any stake in them when they put them into a MBS.”

Hold on there, Dean. You mean Dodd Frank didn’t ”put things right”?  What the heck? I thought that “tough new regulations” assured us that the banks wouldn’t blow up the system again in five years or so. Was that all baloney?

Yep, sure was. 100% baloney. Once the banks unleashed their army of attorneys and lobbyists on Capital Hill,  new regulations didn’t stand a chance. They turned Dodd Frank into mincemeat and now we’re back to square one.

And don’t expect the ratings agencies to help out either because they’re in the same shape they were before the crash. No changes at all.  They still get paid by the guys who issue the mortgage-backed securities (MBS) which is about the same as if you paid the salary of the guy who grades your midterm exam. Do you think that might cloud his judgment a bit? You’re damn right, it would; just like paying the ratings agencies guarantees you’ll get the rating you want. The whole system sucks.

And as far as the new Consumer Financial Protection Bureau, well, you guessed it. The banks played a role in drafting the new “Qualified Mortgage” standard too, which is really no standard at all, since no self-respecting lender would ever use the same criteria for issuing a loan or mortgage. For example, no banker is going to say, “Heck, Josh, we don’t need your credit scores. We don’t need a down-payment. We’re all friends here, right? So, how much do you need for that mortgage old buddy, $300,000, $400,000, $500,000.  You name it. The sky’s the limit.”

No down payment? No credit scores? And they have the audacity to call this a qualified mortgage?

Qualified for what? Qualified for sticking it to the taxpayers?  The real purpose of the qualified mortgage is to protect the banks from their own shifty deals. That’s what it’s all about. It provides them with “safe harbor” in the event that the borrower defaults. What does that mean?

It means that the government can’t get its money back if the loan blows up.   The qualified mortgage actually protects the banks, not the consumer. That’s why it’s such a farce,  just like Dodd Frank is a farce. Nothing has changed. Nothing. In fact, it’s gotten worse. Now we’re on the hook for whatever losses the banks run up peddling mortgage credit to anyone who can fog a mirror.

We’ll leave the last word for Dean Baker, since he seems like the only guy in America who has figured out what the hell is going on:

“In short, the Corker-Warner plan to privatize Fannie and Freddie is essentially a proposal to reinstitute the structure of incentives that gave us the housing bubble and the financial crisis, but this time with the added fuel of an explicit government guarantee on the subprime MBS. If that doesn’t sound like a great idea to you then you haven’t spent enough time around powerful people in Washington.”

The Johnson-Crapo bill doesn’t have anything to do with “winding down” Fannie and Freddie or “overhauling” the mortgage finance industry. It’s a bald-face ripoff engineered by two chiseling senators who are putting the country at risk to beef up Wall Street’s bottom line.

It’s the scam of the century.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Economic Suicide

March 25, 2014 by · Leave a Comment 

Abenomics has been great for stock speculators and corporate bigwigs, but for everyone else, not so much. The fact is–despite all the media hype and monetary fireworks–Prime Minister Shinzo Abe’s three-pronged strategy to end 20 years of deflation has been a total bust. But don’t take my word for it, check out this clip from Reuters and see for yourself:

“In the fourth quarter of last year, Japan’s economy grew at an annual rate of just 0.7 percent, revised figures show, slower than the initial estimate of 1.0 percent on weaker business investment and consumption….” (Japan fourth-quarter growth, external balance suffer blow in test for Abenomics, Reuters)

See? Japan’s economy is dead as a doornail. No sign of life at all. What more proof do you need than that?

And Abenomics won’t end deflation either. That’s another fiction. The weaker yen is just going to force working people and retirees on fixed income to reduce their consumption which will intensify the slump. Heck, even the IMF has figured that one out. Take a look at this clip from one of their recent pieces:

“The average Japanese worker has been dipping into his savings to finance consumption growth. But there’s a limit to how far he can do this. The savings rate as a percent of disposable income has declined from around 5 percent a decade ago to close to zero today, leaving little further room for spending from savings….Looking forward, real wages are set to come under even greater pressure this year and next with higher underlying inflation and successive increases in the consumption-tax rate.” (Abenomics—Time for a Push from Higher Wages, IMF-direct)

It sounds to me like the IMF is telling old Shinzo that his plan sucks, doesn’t it?

Whoever thought that dumping trillions of dollars into the financial system would end deflation had a couple screws loose. That’s not how it works. The Fed loaded up on $4 trillion in financial assets and inflation is still hovering at a measly 1 percent. So if the theory doesn’t work in the US, why would it work in Japan?

It won’t. The way to generate inflation is by circulating money in the economy and increasing the velocity. That means full employment and higher wages. That means fiscal stimulus and redistributive taxation. That means fixing the damn economy. But Abe’s not going to do that because it doesn’t jibe with his class war strategy which is what drives the current policy. Now check this out from Roger Arnold at The Street:

“The essential policy tools of Abenomics are massive monetary and fiscal stimulus aimed at forcing the yen lower, which should cause exports to rise and domestic production to increase, leading to increased domestic job production and consumption: the virtuous cycle. In the process, Japan also increased sovereign debt, which must be serviced by the government. The servicing of that debt is supposed to come from an increase in tax receipts to be made available by the increased domestic production and consumption.

But it isn’t working.

The failure of Abenomics to stimulate economic activity and raise tax receipts enough to pay for the stimulus is now causing the government to double back on these programs with a counter-cyclical consumer tax increase of about 3%, which will be implemented in April. In other words, Abenomics is making the real economic and fiscal situations in Japan worse, not better. They are digging a bigger sovereign debt hole and accelerating the trajectory toward insolvency…Investors would be wise to avoid Japan altogether now, and probably permanently.” (Arnold: Abenomics’ Failure Is the Global Canary, The Street)

That’s probably good advice, although I think Japan’s implosion will take much longer than Arnold seems to believe. But that’s beside the point. What matters is the that policy doesn’t work. The economy isn’t growing, personal consumption is weak, the trade deficit, the current account deficit and the national debt are all ballooning at the same time, and the Japanese people are growing more pessimistic. And on top of it all, a 3 percent sales tax is set to kick in at the beginning of April which is going to send the economy stumbling back into recession. (Abe pushed through the tax hike to placate his right-wing constituents even though the risks to the economy were obvious.)

So, it’s all bad, unless you’re high-flying stock trader or a money-grubbing corporate CEO, that is. Then things have never been better. Get a load of this in the Wall Street Journal:

“While Japan Inc. may be whistling a happy tune on the back of robust profit growth and a weaker yen thanks to the pro-business agenda of Prime Minister Shinzo Abe, a key survey released Wednesday shows that consumers aren’t in a similar Abenomics-induced state of rapture.

The Cabinet Office’s monthly Consumer Confidence Index contracted for the third straight month in February to 38.2. That’s the worst reading since Mr. Abe entered office in January 2013 and the lowest since September 2011. Respondents were even more pessimistic than during Mr. Abe’s year-long term as prime minister between September 2006 and September 2007…

Even though recent data showed the basic earnings of workers in the world’s third-largest economy rose for the first time in almost two years in January, respondents in the February survey were less optimistic about their income growth, the value of their assets, and their overall livelihood than they were a month earlier.

The downbeat reading prompted the government to downgrade its assessment, saying it is “on a weak note.” (Japanese Consumer Pessimism Hits New High Under Abe, WSJ)

To say the Japanese are depressed, would be an understatement. Your average Joe is “even more pessimistic” than he was when Abe stepped down in 2007 and the economy was on the brink of rigor mortis. Does that sound like the “Happy Days are here again” blabber you’ve been reading in the media or hearing from liberal pundits like the madcap Dr. Krugman?

Also, according to a Cabinet Office survey that appeared in the Japan Times on Saturday, only 22 percent of respondents “think the economy is headed in the right direction”, while 76 percent are worried about the impact the consumption tax will have on the economy.

How’s that for a ringing endorsement of Abe’s Kamikazenomics? The only people who still believe in Abe’s song and dance are the ivory tower set at Princeton and Yale. Everyone else has thrown in the towel.

Abenomics is a public relations scam designed to shift more payola to voracious stock speculators and their thieving corporate counterparts. It’s a fraud wrapped in a lie. That’s all there is to it. But there are victims, that’s for dang-sure. Just check out this article in Bloomberg and you’ll see what I mean:

“Japanese Prime Minister Shinzo Abe looks set to drive an indicator of economic hardship to a 33-year high by increasing taxes and prices amid stagnant wages. The misery index, which adds the jobless rate to the level of inflation, will climb to 7 percentage points in the three months starting April 1 when Japan raises its sales levy to 8 percent from 5 percent, based on the median estimates of economists in Bloomberg News surveys of unemployment and consumer prices. That would be the highest level for the measure since June 1981 when Japan was emerging out of depression after the oil shocks in the 1970s.

Bank of Japan monetary stimulus designed to spur economic growth and achieve 2 percent inflation has weakened the yen by 6.8 percent in the past 12 months, eroding the value of wages to a record low. Abe, the son of an ex-foreign minister who grew up in a house with servants, is under fire from the opposition party after the cost of living surged to a five-year high.

“Inflation is really tough,” said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees more than $77 billion. “Those who speak favorably about inflation might have been born in wealthy families and never experienced the hardship that inflation brought.” (Misery Index Rising to 33-Year High on Abenomics: Japan Credit, Bloomberg)

The Misery Index is peaking and all you hear in the US is a bunch of baloney about glorious Abenomics and the miraculous effect of money printing. What a joke. People are hurting big-time in Japan, and shifty Shinzo is only adding to their pain with his monetary Hara-kiri. It’s madness. Wages dropped for 19 months in a row before they got a “one-off” bump-up last month of 0.1 percent, which is a big nothingburger. The overall trend is down, down, down. On top of that, roughly 35 percent of Japan’s workforce is part-time employment; no pension, no bennies, no job security, no nothing. Things slow down, and you get booted down the stairwell with not as much as a “Goodbye, Charlie!” They probably don’t even bother with the perfunctory pink slip. Just grab your lunchbox, and “out you go.”

So how does Abe figure he’s going to generate inflation when workers are flat on their backs and don’t have enough scratch to buy the widgets that Japan Inc produces?

The whole thing is a non starter, which is why I think this “fighting deflation” trope is a big freaking smokescreen to hide what’s really going on, which is a massive transfer of wealth to the investor class via asset inflation. That’s what’s really happening, right? Abenomics is just a way to produce fat returns during extended periods of slow growth and deepening stagnation. The big boys figured out how to overcome the very conditions that they created with their unbounded avarice. I guess they figure that, just because everyone else has to suffer through a goddamn Depression, doesn’t mean they have to too.

You got to hand it to these guys, they think of everything.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

War Is A Certainty

March 17, 2014 by · 2 Comments 

Any country that is considering waging war against another country should first consider that the loser is almost always the country that runs out of money first.

Recently, an associate offered the following observation with regard to the likelihood of war in the immediate future:

“The big guys like to play chess with the world. It’s the biggest game. The bankers need ups and downs and wars to make money. The military needs wars to exist. The politicians need both to exist.

Whilst he was reiterating a concept we have discussed on many occasions, it occurred to me that I have never seen the subject defined so succinctly, nor so informatively.

Let’s break it down:

The bankers need ups and downs and wars to make money

Just as bankers increase their profit as a result of upward and downward economic fluctuations, so, too, do they benefit from war. It is not unusual for a given bank to finance those who would create armed conflict, and indeed, they sometimes bankroll both sides. Whilst banks have other means of making money, war is often more profitable than conventional banking.

The military needs war

The military-industrial complex is in the business of selling armaments to governments. Although armament sales may tick over nicely in peace time, they boom in war time. Therefore, any armament supplier will benefit from war. It matters little whether it is an all-out war or a series of smaller ventures. The object is sales.

The politicians need both banks and war

This is true in the sense that politicians need both bankers and an active military to thrive. Political campaigns depend upon funding. Banks and armament suppliers have long been a major source of campaign funds for candidates of the primary political parties. (If each party is well-paid before the election, favourable treatment towards banks and armament suppliers is assured, regardless of which party wins an election.)

But there is further necessity for armed conflict with regard to politicians. First, it is a truism that a country rarely changes leaders during times of war, and nothing is more imperative to the politician than gaining a further term of office.

Second, nothing distracts the voting public like war. If a politician is receiving increased criticism from the voters, a good war can be counted on to get the voters concentrating more on the war than on the politician’s poor stewardship.

Third, governments typically remove the freedoms of a populace over time. Whilst citizens may object to the loss of their freedoms in normal times, they are often more willing to relinquish them “temporarily” in times of war, “for the good of the country.” Not surprisingly, lost freedoms are seldom reinstated after a war.

Consider the words of James Madison, the fourth US President:

“Of all the enemies of public liberty, war is, perhaps, the most to be dreaded, because it comprises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes; and armies and debts and taxes are the known instruments for bringing the many under the dominion of the few. In war, too, the discretionary power of the Executive is extended…. No nation could preserve its freedom in the midst of continual warfare.”

Generally speaking, the citizens of most countries would prefer to avoid war. After all, they rarely benefit from it. But then, the impetus for war is almost never generated by the people of a country. Unless a nation is actually attacked, in nearly every case, the people need to be talked into going to war.

Convincing the People

A good example of this is the US, who, since World War I, have needed convincing on almost every occasion when political leaders proposed war. In World War I, the Lusitania incident was created jointly by the UK and the US to motivate them. In World War II, the goading of Japan was needed. In Vietnam, the trumped-up Gulf of Tonkin incident was needed, and so on.

Suffice to say that, when bankers, the military industrial complex, the politicians, or all three decide to instigate war, war will come to pass. Whether it is a conservative government or a liberal government, if a clear threat does not exist, one will be invented.

As Hermann Goering stated in the Nuremburg trials,

“Naturally, the common people don’t want war. But after all, it is the leaders of a country who determine the policy, and it is always a simple matter to drag people along, whether it is a democracy or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. This is easy. All you have to do is tell them they are being attacked, and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same in every country.”

At the present time in history, the countries of the First World have created the greatest pillaging of the state coffers that has ever occurred. As complacent as the peoples of both the EU and the US have been in recent decades, there does seem to be a growing understanding amongst the peoples that they have been scammed.

Aside from continuing quantitative easing until that scam also fails, the respective governments are running out of rabbits to pull out of the hat to distract the masses. It would therefore seem that there has been no time in history in which war was so neededby national leaders—both as a distraction to the populace and as a last squeeze at the monetary lemon, prior to the inevitable crash.

And so, what does that mean to the reader? Assuming he is not invited to take part, shouldn’t the drums of war be of little interest to him? Well, in terms of his own physical safety, that may well be true, but here is an historical fact to consider:

Any country that is considering waging war against another country should first consider that the loser is almost always the country that runs out of money first.

No venture is more costly than warfare. The EU and the US are bankrupt now. Those presently living in those locales may escape actual duty in the military, but they will unquestionably be expected to pick up the tab through taxation.

Those who presently feel that their obligations to their governments are already barely manageable might wish to consider what they will be, both during and after a major war.

Source:  Jeff Thomas  |  International Man

The State Department’s New World Order Agenda

March 11, 2014 by · Leave a Comment 

benghazi2.jpg

Flag waving Americans want to believe that their government is on the right side of history. Especially in the realm of foreign policy, the myth that the United States saved the world from despotic tyrants, popularly reflected in the victor’s account of post World War II, is the accepted viewpoint. Hidden from public education is that the New World Order was the actual winner. The specific inception of the globalist forces that originated the sub rosa directions behind formable institutions and governments dates well back over centuries. However, the modern technocratic era allows for the dramatic acceleration of a one-world system imposition, which was never possible in previous times.

Loyal citizens of the old republic want to trust that the State Department, commissioned to serve as the guardian and protector of the country, is conducting foreign policy in the best interests of the nation. There is a reason why the Secretary of State is third in line to succeed the President. That purpose, intended to defend diplomatically and promote the public safety and benefit, has served a very different master for a very long time.

Senator Arthur H. Vandenberg’s notorious adage, “politics stops at the water’s edge”, by no means ever really practiced by the political class a true national defense of the country because it was never the primary goal of the establishment.

The international corporate conglomerate of economic dominance sets the agenda for the imperium empire that deploys the worldwide military hegemony, which feeds upon endless manufactured conflicts and false flag operations. The State Department is the keeper of the keys that formulate policies, which serves only the globalist patrons that control the puppets who make up the federal bureaucracies.

The successors of the sinister cabal that planned World War I and II and created Hitler, Stalin and Mao Zedong are the same prodigy that dictates the constant regional conflicts, which engulfs the United States into destructive involvements that bleed unnecessary blood and squander national treasure.

It is this New World Order that is in charge. State Department lackeys; duped into thinking they serve the cause of freedom, implement tactics and objectives that cause profound hatred towards America by much of the world. Those who know the real score and direct the actual formulation of policy, seek to join the ranks of world dominators, who have no allegiance to country, principles or moral values.

Examine the pattern of State Department betrayal. What a great result from the liberation of Iraq to rid all those weapons of mass destruction. Expanding the opium trade in Afghanistan surely deserves praise. Then there is the killing Gaddafi that resulted in that Benghazi success. Next was the Egyptian coup d’état of Mubarak and the subsequent removal of the democratically elected Muslim Brotherhood government. Finally, leading up to the current campaign against Syria, that is proving more difficult than usual, demonstrates that keeping the orthodox mission in the protection of Israel does not always go smoothly.Yes, that New World Order playbook needs to produce a continuous crop of villains. How else can a permanent and undeviating condition of controlled chaos exist? Managing fashioned circumstances for the benefit of the crown elites is the prescribed procedure of the State Department.

Enter the bona fide “Big Dog”, Vladimir Putin Nemesis of the New World Order. Establishment reports by the Zionist owned mass media is a massive cover-up. The State Department conceived operation to expand the NWO and engulfing Ukraine into the European Union sphere of control goes unreported. The enforcement military machine of the New World Order is NATO. This pathetic attempt to reconstitute the cold war to save a dying economic banksters system is just the latest political propaganda to deceive the public.

The “so called” liberation thugs that engaged in street warfare are part of a western inspired scheme that used George Soros operative fronts as cover. When the US spent $5 billion to destabilize Ukraine, such illegal intervention undermines self-determination at its core. The correct conclusion to draw from such efforts follows:

“The protests in the western Ukraine are organized by the CIA, the US State Department, and by Washington-and EU-financed Non-Governmental Organizations (NGOs) that work in conjunction with the CIA and State Department. The purpose of the protests is to overturn the decision by the independent government of Ukraine not to join the EU.”

“Nuland “was expressing in shortened form the frustration with the inability of the EU to come up with any kind of sugar to make the medicine go down,” said Gati. “What she is saying is we’ve got a crisis here, we’ve got to move, we can’t go by EU business as usual.”

The New World Order is build upon factions of elites that pivot around crux interests, while guiding their own governments into accepting the long-term outlook. One such foundational precept requires that the central banksters manage countries that are already in arrears in their debt payments. With the selection of Arseniy Yatseniuk, the central banker politico as PM for the post-coup Ukraine, the real purpose behind the upheaval becomes clear.

“Yats is also ready to impose IMF austerity on Ukraine, already one of the poorest nations in Europe. “Yatsenyuk is the kind of technocrat you want if you want austerity, with the veneer of professionalism,” Vladimir Signorelli, president of boutique investment research firm Bretton Woods Research LLC in New Jersey, told Forbes last month.

“He’s the type of guy who can hobnob with the European elite. A Mario Monti type: unelected and willing to do the IMFs bidding.”

The announced EU $15B aid package to provide much needed cash to Ukraine accelerates the intrusion of NWO dominance into the heartland of the former Soviet empire. As the State Department Is Preparing Sanctions Against Russia, the NeoCons and International Libs in Congress eagerly want to ratchet up the appearance of a new cold war to divert away from domestic woes and a collapsing war on the terror hoax.Yet the internal motivations out of the United States government carry little weight, when viewed within the context of the long-term master plans, for extending the current New World Order into a non-compete global dominion. Pushing Russia into the arms of an already hostile China certainly does not serve the security of America. However, that is exactly the probable outcome from getting involved, (like this designed covert regime change) in the internal affairs of Eastern Europe.

Lest one forgets, that Communism was the invention of the international banksters, recognize that authoritarianism is the normal condition of human governments. The totalitarian collectivism that the phony western democracies practice produces corporate fascism. This is the preferred version of global rule that the New World Order seeks.

Therefore, when the non-elected pawns of the transitional Ukrainian NWO protectorate states, Crimea ‘was, is and will be an integral part of Ukraine’, you get the Yats effect of a CNN reported illusion. For the reality, the RT coverage that Sevastopol and Crimean parliament vote to join Russia, referendum to be held, describes the actual circumstances.

The pathetic hypocrisy when Obama says Crimea referendum would ‘violate international law’, fails to account for the capricious attitude and deadly methods employed to oust the Viktor Yanukovych government. What legitimate international law standard did the snipers use to kill both police and protestors in Kiev?Playing king maker is a very dangerous game that the State Department undertakes at its own risk. Applying these same tactics, what will be the response when the liberation dissenters surround the capital and start a national demonstration to oust the DC criminal class from power? Surely, calling out the tanks to restore the homeland order will be the official response.

With every assault orchestrated to establish a government regime change favorable to the New World Order, the prospects of meaningful resistance diminishes. When the State Department leads the parade to dump defiant state leaders, the actual legitimacy of our own government’s authority evaporates.

Calling on the world community for moral permission to eliminate opposition states is like applying for a loan from the World Bank. Strings are attached that only benefit the shylock.

One needs to distinguish the genuineness of Western Civilization from the immorality of US/EU/NATO interventionism. Permanent war is the lifeblood of the New World Order. The last thing this planet needs is a global empire, which removes any country that rejects and resists the NWO feudalist model. The essence of true liberty demands that ethnic populations organize around and among their own kind.


Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at: BATR

Sartre is a regular columnist for Veracity Voice

The Ukrainian Pendulum

March 9, 2014 by · Leave a Comment 

The stakes are high in the Ukraine: after the coup, as Crimea and Donbas asserted their right to self determination, American and Russian troops entered Ukrainian territory, both under cover.

The American soldiers are “military advisors”, ostensibly members of Blackwater private army (renamed Academi); a few hundred of them patrol Kiev while others try to suppress the revolt in Donetsk. Officially, they were invited by the new West-installed regime. They are the spearhead of the US invasion attempting to prop up the regime and break down all resistance. They have already bloodied their hands in Donetsk.

Besides, the Pentagon has doubled the number of US fighter jets on a NATO air patrol mission in the Baltics; the US air carrier entered the Black Sea, some US Marines reportedly landed in Lvov “as a part of pre-planned manoeuvres”.

The Russian soldiers ostensibly belong to the Russian Fleet, legally stationed in Crimea. They were in Crimea before the coup, in accordance with the Russian-Ukrainian treaty (like the US 5th fleet in Kuwait), but their presence was probably beefed up. Additional Russian troops were invited in by deposed but legitimately elected President Yanukovych (compare this with the US landing on Haiti in support of the deposed President Aristide ). They help the local pro-Russian militia maintain order, and no one gets killed in the process. In addition, Russia brought its troops on alert and returned a few warships to the Black Sea.

It is only the Russian presence which is described as an “invasion” by the Western media, while the American one is hardly mentioned. ”We have a moral duty to stick our nose in your business in your backyard a world away from our homeland. It’s for your own good”, wrote an ironic American blogger.

Moscow woke up to trouble in Ukraine after its preoccupation, nay obsession, with the Winter Olympic games had somewhat abated, — when people began to say that “Putin won the games and lost the Ukraine”. Indeed, while Putin watched sports in Sochi, the Brown Revolution succeeded in Ukraine. A great European country the size of France, the biggest republic of the former USSR (save Russia), was taken over by a coalition of Ukrainian ultra-nationalists and (mainly Jewish) oligarchs. The legitimate president was forced to flee for his very life. Members of Parliament were manhandled, and in some cases their children were taken hostage to ensure their vote, as their houses were visited by gunmen. The putsch was completed. The West recognised the new government; Russia refused to recognise it, but continued to deal with it on a day -to-day basis. However the real story is now developing in Crimea and Eastern Ukraine, a story of resistance to the pro-Western takeover.

The Putsch

The economic situation of Ukraine is dreadful. They are where Russia was in the 1990s, before Putin – in Ukraine the Nineties never ended. For years the country was ripped off by the oligarchs who siphoned off profits to Western banks, bringing it to the very edge of the abyss. To avoid default and collapse, the Ukraine was to receive a Russian loan of 15 billion euros without preconditions, but then came the coup. Now the junta’s prime minister will be happy to receive a mere one billion dollars from the US via IMF. (Europeans have promised more, but in a few years’ time…) He already accepted the conditions of the IMF, which will mean austerity, unemployment and debt bondage. Probably this was the raison d’être for the coup. IMF and US loans are a major source of profit for the financial community, and they are used to enslave debtor countries, asPerkins explained at length.

The oligarchs who financed the Maidan operation divided the spoils: the most generous supporter, multi-billionaire Igor “Benya” Kolomoysky, received the great Russian-speaking city of Dnepropetrovsk in fief. He was not required to give up his Israeli passport. His brethren oligarchs took other Russian-speaking industrial cities, including Kharkov and Donetsk, the Ukrainian Chicago or Liverpool. Kolomoysky is not just an ‘oligarch of Jewish origin’: he is an active member of the Jewish community, a supporter of Israel and a donor of many synagogues, one of them the biggest in Europe. He had no problem supporting the neo-Nazis, even those whose entry to the US had been banned because of their declared antisemitism. That is why the appeals to Jewish consciousness against the Brown putsch demonstrably failed.

Now came the nationalists’ crusade against Russian-speakers (ethnic Russians and Russian-speaking Ukrainians – the distinction is moot), chiefly industrial workers of East and South of the country. The Kiev regime banned the Communist Party and the Regions’ Party (the biggest party of the country, mainly supported by the Russian-speaking workers). The regime’s first decree banned the Russian language from schools, radio and TV, and forbade all official use of Russian. The Minister of Culture called Russian-speakers “imbeciles” and proposed to jail them for using the banned tongue in public places. Another decree threatened every holder of dual Russian/Ukrainian nationality with a ten-years jail sentence, unless he gives up the Russian one right away.

Not empty words, these threats: The storm-troopers of the Right Sector, the leading fighting force of the New Order, went around the country terrorising officials, taking over government buildings, beating up citizens, destroying Lenin’s statues, smashing memorials of the Second World War and otherwise enforcing their rule A video showed a Right Sector fighter mistreating the city attorney while police looked other way. They began to hunt down riot policemen who supported the ex-president, and they burned down a synagogue or two. They tortured a governor, and lynched some technicians they found in the former ruling party’s headquarters. They started to take over the Orthodox churches of the Russian rite, intending to transfer them to their own Greek-Catholic Church.

The instructions of US State Dept.’s Victoria Nuland were followed through: the Ukraine had had the government she prescribed in the famous telephone conversation with the US Ambassador. Amazingly, while she notoriously gave “fuck” to the EU, she did not give a fuck about the Russian view of Ukraine’s immediate future.

Russia was not involved in Ukrainian developments: Putin did not want to be accused of meddling in Ukrainian internal affairs, even when the US and EU envoys assisted and directed the rebels. The people of Russia would applaud him if he were to send his tanks to Kiev to regain the whole of Ukraine, as they consider it an integral part of Russia. But Putin is not a Russian nationalist, not a man of Imperial designs. Though he would like the Ukraine to be friendly to Russia, annexing it, in whole or in part, has never been his ambition. It would be too expensive even for wealthy Russia: the average income in the Ukraine is just half of the Russian one, and tits infrastructure is in a shambles. (Compare to the very costly West German takeover of the GDR.) It would not be easy, either, for every Ukrainian government in the past twenty years has drenched the people with anti-Russian sentiment. But involvement was forced upon Putin:

Hundreds of thousands of Ukrainians voted with their feet and fled to Russia, asking for asylum. Two hundred thousand refugees checked in during the weekend. The only free piece of land in the whole republic was the city of Sevastopol, the object of a French and British siege in 1852 and of a German siege in 1941, and the home base of the Russian Black Sea fleet. This heroic city did not surrender to the Kiev emissaries, though even here some local deputies were ready to submit. And at that last moment, the people began their resistance. The awful success of the putsch was the beginning of its undoing. The pendulum of Ukraine, forever swinging between East and West, began its return movement.

The Rising

The people of Crimea rose, dismissed their compromise-seeking officials and elected a new leader, Mr Sergey Aksyonov. The new leadership assumed power, took over Crimea and asked for Russian troops to save them from the impending attack by the Kiev storm troopers. It does not seem to have been necessary at this stage: there were plenty of Crimeans ready to defend their land from the Brown invaders, there were Cossack volunteers and there is the Russian Navy stationed in Crimea by treaty. Its Marines would probably be able to help the Crimeans in case of trouble. The Crimeans, with some Russian help, manned the road blocks on the narrow isthmus that connects Crimea to the mainland.

The parliament of Crimea voted to join Russia, but this vote should be confirmed by a poll on March 16 to determine Crimea’s future — whether it will revert to Russia or remain an autonomous republic within the Ukraine. From my conversation with locals, it seems that they would prefer to join the Russian Federation they left on Khrushchev’s orders only a half century ago. Given the Russian-language issue and the consanguinity, this makes sense: Ukraine is broke, Russia is solvent and ready to assume its protection. Ukraine can’t pay salaries and pensions, Russia had promised to do so. Kiev was taking away the lion’s share of income generated in Crimea by Russian tourists; now the profits will remain in the peninsula and presumably help repair the rundown infrastructure. Real estate would likely rise drastically in price, optimistic natives surmise, and this view is shared by Russian businessmen. They already say that Crimea will beat out Sochi in a few years’ time, as drab old stuff will be replaced by Russian Imperial chic.

Perhaps Putin would prefer the Crimea gain independence, like Kosovo, or even remain under a token Ukrainian sovereignty, as Taiwan is still nominally part of China. It could become a showcase pro-Russian Ukraine to allow other Ukrainians to see what they’re missing, as West Berlin was for the East Germans during the Cold War. Regaining Crimea would be nice, but not at the price of having a consolidated and hostile Ukraine for a neighbour. Still Putin will probably have no choice but to accept the people’s decision.

There was an attempt to play the Crimean Tatars against the Russians; apparently it failed. Though the majlis, their self-appointed organisation, supports Kiev, the elders spoke up for neutrality. There are persistent rumours that the colourful Chechen leader Mr Kadyrov, a staunch supporter of Mr Putin, had sent his squads to the Tatars to strong-arm them into dropping their objections to Crimea’s switch to Russia. At the beginning, the Tatars supported Kiev, and even tried to prevent the pro-Russian takeover. But these wise people are born survivors, they know when to adjust their attitudes, and there is no doubt they will manage just fine.

Russian Nazis, as anti-Putin as Ukrainian Nazis, are divided: some support a “Russian Crimea” whilst others prefer pro-European Kiev. They are bad as enemies, but even worse as friends: the supportive Nazis try to wedge between Russians and Ukrainians and Tatars, and they hate to see that Kadyrov’s Chechnya actually helps Russian plans, for they are anti-Chechen and try to convince people that Russia is better off without Chechens, a warlike Muslim tribe.

As Crimea defied orders from Kiev, it became a beacon for other regions of the Ukraine. Donbas, the coal and steel region, raised Russian banners and declared its desire for self-determination, “like Crimea”. They do want to join a Russian-led Customs Union; it is not clear whether they would prefer independence, autonomy or something else, but they, too, scheduled a poll – for March 30. There were big demonstrations against the Kiev regime in Odessa, Dnepropetrovsk, Kharkov and other Russian-speaking cities. Practically everywhere, the deputies seek accommodation with Kiev and look for a way to make some profit, but the people do not agree. They are furious and do not accept the junta.

The Kiev regime does not accept their quest for freedom. A popularly-elected Mayor of Donetsk was kidnapped by the Ukrainian security forces and taken to Kiev. There are now violent demonstrations in the city.

The Ukrainian navy in the Black Sea switched its allegiance from Kiev to Crimea, and they were followed by some units of the air force with dozens of fighter jets and ground troops. Troops loyal to Kiev were blocked off by the Crimeans, but there was no violence in this peaceful transfer of power.

The junta appointed an oligarch to rule Donbas, Mr Sergey Taruta, but he had difficulty assuming power as the local people did not want him, and with good reason: Taruta had bought the major Polish port of Gdansk and brought it to bankruptcy. It seems he is better at siphoning capital away than in running serious business. Ominously, Mr Taruta brought with him some unidentified, heavily armed security personnel, reportedly guns-for-hire from Blackwater (a.k.a. Academi) fresh from Iraq and Afghanistan. He will need a lot more of them if he wants to take Donbas by force.

In Kharkov, the biggest Eastern city, erstwhile capital of Soviet Ukraine, local people ejected the raiding force of the Right Sector from government offices, but police joined with the oligarchs. While the fake revolution took place in Kiev under the tutelage of US and EC envoys, the real revolution is taking place now, and its future is far from certain.

The Ukraine hasn’t got much of an army, as the oligarchs stole everything ever assigned to the military. The Kiev regime does not rely on its army anyway. Their attempt to draft able-bodied men failed immediately as hardly anybody answered the call. They still intend to squash the revolution. Another three hundred Blackwater mercenaries landed Wednesday in Kiev airport. The Kiev regime applied for NATO help and expressed its readiness to allow US missiles to be stationed in the Ukraine. Missiles in the Ukraine (as now stationed in Poland, also too close for Russian comfort) would probably cross Russia’s red line, just as Russian missiles in Cuba crossed America’s red line in 1962. Retired Israeli intelligence chief Yaakov Kedmi, an expert on Russia, said that in his view the Russians just can’t allow that, at any price, even if this means all-out war.

Putin asked the upper house of the Russian parliament for permission to deploy Russian troops if needed, and the parliament unanimously approved his request. They will probably be deployed in order to defend the workers in case of attack by a Right Sector beefed up by Blackwater mercenaries. Humanitarian catastrophe, large-scale disturbances, the flow of refugees or the arrival of NATO troops could also force Putin’s hand, even against his will.

The President in exile

President Yanukovych will be historically viewed as a weak, tragic figure, and he deserves a better pen with a more leisured pace than mine. He tried his best to avoid casualties, though he faced a full-scale revolt led by very violent Brown storm-troopers. And still he was blamed for killing some eighty people, protesters and policemen.

Some of the victims were killed by the Right Sector as they stormed the ruling party offices. The politicians left the building well in advance, but the secretarial staff remained behind — many women, janitors and suchlike. An engineer named Vladimir Zakharov went to the besieging rebels and asked them to let the women out. They killed him on the spot with their bats. Another man was burned alive.

But the majority of casualties were victims of sniper fire, also blamed on Yanukovych. The Kiev regime even asked the Hague tribunal to indict the President as they had President Milosevic. But now, a telephone conversation between EC representative Catherine Ashton and Estonian Foreign Minister Urmas Paet reveals that the EC emissaries were aware that dozens of victims of sniper fire at the Maidan were killed by Maidan rebel supporters, and not by police or by President Yanukovych, as they claimed. Urmas Paet acknowledged the veracity of this conversation at a press conference, and called for an independent enquiry. It turned out that the rebel snipers shot and killed policemen and Maidan protesters alike, in order to shed blood and blame it on the President.

This appears to be a staple feature of the US-arranged revolutions. Snipers killing both protesters and police were reported in Moscow’s 1991 and 1993 revolutions, as well as in many other cases. Some sources claim that famed Israeli snipers were employed on such occasions, which is plausible in view of Mr Kolomoysky’s Israeli connection. A personal friend of Mr Kolomoysky, prominent member of the then-opposition, Parliamentarian and present head of administration Sergey Pashinsky was stopped by police as he removed a sniper’s rifle with a silencer from the scene of murder. This discovery was briefly reported in the New York Times, but later removed. This revelation eliminates (or at least seriously undermines) the case against the President. Probably it will be disappear down the memory hole and be totally forgotten, as were the Seymour Hersh revelations about Syria’s sarin attack.

Another revelation was made by President Putin at his press-conference of March 4, 2014. He said that he convinced (read: forced) President Yanukovych to sign his agreement of February 21, 2014 with the opposition, as Western ministers had demanded. By this agreement, or actually capitulation act, the Ukrainian President agreed to all the demands of the Brown rebels, including speedy elections for the Parliament and President. However, the agreement did not help: the rebels tried to kill Yanukovych that same night as he travelled to Kharkov.

Putin expressed amazement that they were not satisfied with the agreement and proceeded with the coup anyway. The reason was provided by Right Sector goons: they said that their gunmen will be stationed by every election booth and that they would count the vote. Naturally, the agreement did not allow for that, and the junta had every reason to doubt their ability to win honest elections.

It appears Yanukovych hoped to establish a new power base in Kharkov, where a large assembly of deputies from East and South of Ukraine was called in advance. The assembly, says Mr Kolomoysky, was asked to assume powers and support the President, but the deputies refused. That is why President Yanukovych, with great difficulty, escaped to Russia. His landing in Rostov made quite an impression on people as his plane was accompanied by fighter jets.

Yanukovych tried to contact President Putin, but the Russian president did not want to leave the impression that he wants to force Yanukovych on the people of Ukraine, and refused to meet or to speak with him directly. Perhaps Putin had no time to waste on such a weak figure, but he publicly recognised him anyway as the legitimate President of the Ukraine. This made sense, as President Yanukovych requested Russian troops to bring peace to his country. He still may make a comeback – as the president of a Free Ukraine, if such should ever be formed in some part of the country, – or as the protagonist of an opera.

English language editing by Ken Freeland.


A native of Novosibirsk, Siberia, a grandson of a professor of mathematics and a descendant of a Rabbi from Tiberias, Palestine, he studied at the prestigious School of the Academy of Sciences, and read Math and Law at Novosibirsk University. In 1969, he moved to Israel, served as paratrooper in the army and fought in the 1973 war.

After his military service he resumed his study of Law at the Hebrew University of Jerusalem, but abandoned the legal profession in pursuit of a career as a journalist and writer. He got his first taste of journalism with Israel Radio, and later went freelance. His varied assignments included covering Vietnam, Laos and Cambodia in the last stages of the war in South East Asia.

In 1975, Shamir joined the BBC and moved to London. In 1977-79 he wrote for the Israeli daily Maariv and other papers from Japan. While in Tokyo, he wrote Travels with My Son, his first book, and translated a number of Japanese classics.

Email at: info@israelshamir.net

Israel Shamir is a regular columnist for Veracity Voice

Ukraine As The US Dollar Waterloo

March 7, 2014 by · Leave a Comment 

The desperation of the Anglo-American leadership, guided by the steady corrupt banker hands, has never been more acutely high, nor obvious in full view. The entire Ukraine situation is a travesty. It includes Langley agents killing police and street demonstrators from rooftops, the confirmation coming from the Estonian Embassy (translation of scripts). It includes thefts of official Ukrainian Govt funds, again sent to the Swiss hill sanctuary. It includes sanctions delivered by a US Paper Tiger, sure to cause horrific backlash. It involves the last gasp attempt to obstruct the Gazprom energy pipelines, which will inevitably corner the European market in monopoly. It involves subterfuge with the NATO card (aka Narcotics And Treachery Outlaws) with missiles placed on the Russian borders. Look for NATO members to find a back door to exit the spurious treaty. It involves playing with nitro-glycerine in the Petro-Dollar room. It involves putting tremendous risk for much more clear isolation of the United States. The more the USGovt pushes, the more the US will be isolated. Remember that Nazis steal from their enemy states, de-fraud from their allied states, and force themselves into an isolated state. In Ukraine, the United States has over-played its weak hand. Already, a secret document was leaked in London that the UKGovt would not support the US-led sanctions against Russia.

History repeats itself from the Kremlin phone calls made during the Syrian conflict just a few months ago, when the UKGovt withdrew its support and left the US isolated, looking very weak. Already, Putin has threatened to dump USTreasury Bonds. Putin aptly calls the Anglo-Americans as Mutants. Imagine the lunacy of trying to cut off the only Russian warm water military naval port in the Crimea. Just as stupid as the Trans Pacific Partnership faux pas, trying to cut off China from its Asian neighbors and partners in trade. The intelligence level of the USGovt has never been more stupid, destructive, and in full view. The lost ground for the United States is obvious and glaring in the Persian Gulf, the Mediterranean Sea, and the Caucasus region.

IMMEDIATE PETRO-DOLLAR RISK

If the Kremlin demands Gold bullion (or even Russian Rubles) for oil payments, then the interventions to subvert the Ruble currency by the London and Wall Street houses will backfire and blow up in the bankster faces. Expect any surplus Rubles would be converted quickly to Gold bullion. If the Chinese demand that they are permitted to pay for oil shipments in Yuan currency, then the entire Petro-Dollar platform will be subjected to sledge hammers and wrecking balls. The new Petro-Yuan defacto standard will have been launched from the Shanghai outpost. If the Saudis curry favor to the Russians and Chinese by accepting non-USDollar payments for oil shipments, then the Petro-Dollar is dead and buried. The rise of the Nat Gas Coop run by Gazprom is in progress, its gas pipelines to strangle the OPEC and its bastard Petro-Dollar child. The entire USDollar foundation with the USTreasury Bond bank reserve structure is at risk is collapsing, as consequence to the desperate adventure and criminal activity conducted in Ukraine.Just like with Syria, a hidden giant energy deposit is concealed under the table. Off the Lebanese and Syrian coast, a massive off-shore energy deposit was recently discovered. The US & UK & Israeli oligarchs wish to take it all. Confusion is their game. In the western plains of Ukraine, a massive gas deposit was recently discovered. The US & European oligarchs wish to take it all. Confusion is their game.

The danger level has never been higher. No resolution to the Global Monetary War can come, which we have been seeking, without a climax. It is hardly just a financial crisis amidst a stubborn economic recovery. The nature of the currencies and their underlying sovereign bond foundation is highly toxic, which requires a strong replacement as solution, using an alternative to the USDollar alongside its reserve ledger item the USTreasury Bond. A return to the Gold Standard is coming, but the birth will have loud pangs and possibly broad damage suffered. The Global Currency Reset is better named the Return to the Gold Standard. The United States and London will not give up their control of the Weimar Printing Press easily, used for elite self-dole of extreme wealth. It has served well as the Elite credit card. They will not go quietly, and assume their place in the backwater without taking the world to the brink. No climax can occur without enormous risk and loss. The Global Paradigm Shift is in full gear, with attendant risk huge here and now. My Jackass firm belief is that the US/UK fascist team face a Waterloo event in Ukraine, the victim to be the Imperial Dollar. This bulletin will not be a comprehensive note, as the situation is too vast. The information in the Hat Trick Letter is used to interweave a story of the impending removal of the USDollar from its corrupt throne.

UNITED STATES TRAPPED AND CORNERED

The Anglo Americans have fallen into a carefully designed trap by the Russians and Chinese in a clever designed sequence. More Sun Tzu tactics have been put into practice, which utilize the momentum from the enemy to be thrust back on them. Planning for final steps must have taken place during high level Putin meetings with Xi from the elite Sochi viewing box. The unfolding of events has been more carefully engineered and orchestrated than what appears. The US/UK team has been caught in a vise for months, as the rejection of the USDollar as global reserve currency is in high gear, the refusal of the USTBond a recognized trend in diversifications. The death process is slow and grueling. Much of the American Hemisphere is surrounded and controlled by Russia & China, whether the canal, the port facilities, the oil supply, the mineral deposits, even Yuan Swap facilities. Africa has largely gone under Chinese control, with Russia playing a hidden role as well.

The Persian Gulf is in transition, with the critical protectorate role shifting to China. The Qatar royals have just ordered a dismissal of USGovt ambassadors from their nation. Note that Qatar is the site of a giant USNaval base. To be sure, the Sochi Olympic Games are over, a successful event. The gloves have thus come off. The risks have reached acute levels. The US leadership seems cavalier to the risks that over half the USGovt debt is in foreign hands, over 30% of it in Russian & Chinese hands. A severe backlash cometh. The most vulnerable player in the room is the most aggressive, arrogant, vile, and obnoxious. The instability of the situation is far beyond acute. The victim will be the USDollar and its sidekick the USTreasury Bond. The USTBonds will be kicked out of the global banking system. The Third World awaits the United States, for its domestic betrayals, its financial failures, its criminal deeds, and its war aggression.

THE RUSSIAN BACKLASH TO BE SUDDEN

Russian President Vladimir Putin will slam the West, and very soon. The initial salvo might be a natural gas cutoff by Gazprom, the Russian giant which has fast moved into the global monopoly position. Eventually, Putin might demand gold payment for the natgas in the captured pipelines, that being the plan according to The Voice. Russia supplies one quarter of Western European gas needs. It will be the opening salvo for Gold Trade Settlement, for which the Iran workarounds to the sanctions provided the critical prototype. Combined with a formal announcement of USTreasury Bond sales in volume by Russia & China, the impact would be tremendous, even devastating. The reverberation will be soon seen as the pending demise of the defacto Petro-Dollar Standard, dictated by crude oil sales in USD terms. It will also be soon seen as the end of the USTBond as the global reserve standard in banking systems. Notice for over two years, the primary buyer of USGovt debt (and its refunded rollover) has been the US Federal Reserve via bond monetization, an absolute heresy to central banking. Hyper monetary inflation cannot stand as fixed policy. The world has responded by constructing an alternative to trade settlement. The forum has been the BRICS conferences and the G-20 Meetings of finance ministers. The US & UK will gradually be excluded from both forums, a process well along. Even traditional allies like Japan are buying gold in high volume, with suppressed lowball data so far. This is game over for the USDollar, the direct victim of Ukraine backlash. The war against Russia has been veiled, but the Jackass has exposed it.

VEILED ATTACKS AGAINST RUSSIAN GAZPROM

First was the attack against Russian Gazprom in Cyprus. It was a hidden attack made to look like a bank confiscation event. Notice no bank account confiscations outside the small but important island nation. The entire Russian banking clearance system had been done through Cyprus. Also, Russia was making significant transactions to purchase Gold bullion using Cyprus as clearing house for the purchases. Second was the attack against Russian Gazprom in Syria, another complicated event. The US had used the Libyan Embassy as a weapons running facility (major diplomatic violation), after which the US lost Egypt as a transfer station on the weapons running. The false flag attack in Syria was made to look like a chemical weapons event. However, the Saudis were the guilty party. The motive by the US was to block the advance of Russian Gazprom pipelines, which are to connect to the vast Iran supply centers. Iran has far more oil & gas than Iraq. In fact, Iran is the linchpin nation, which will throw its support toward Russia. Iran will push the Nat Gas Coop certain to eclipse Saudi Arabia and the loud gaggle of OPEC members. With the Russian Gazprom, together Iran and the Nat Gas Coop will usher in the Petro-Yuan Standard and bury the Petro-Dollar, the price set by Russia, the contracts set in Shanghai. Thus the Saudis will be expendable, and their Gold in London to be totally stolen.

Move to the present. Third was the attack against Russia Gazprom in Ukraine, done by the CIA and its partner security agents from the small ally nation on the SouthEast Med corner. The old game of destabilization, popular uprising, bank thefts, and now data files stolen has been put into action. The theft of significant funds in Ukraine has only started, funds gone to Swiss banks. The full betrayal will be seen soon. The US & UK have a lunatic plan to corral the Ukraine pipelines and possibly the vast farmlands of Ukraine. The wrong-footed plan will backfire, when Putin cuts off the natgas supply to Europe, when Putin demands a new type of energy supply payment structure, and when Putin engineers certain other steps. They might execute a Nat Gas Coop double in price, much like the OPEC event in 1973. Witness the upcoming Birth of the Eurasian Trade Zone, the birth pangs heard in Ukraine. The United States and Great Britain will not be included. The Eurasian Trade Zone will span 14 time zones and will settle in gold.

IRAN WORKAROUND AS KEY PROTOTYPE SOLUTION

The Anglo Americans have disrupted a key nation with longstanding historical and religious ties to Russia. The land of Ukraine also contains Russia’s only warm water naval port in the Crimea, the site of a recent suspicious earthquake. The response will be swift and firm. The Eastern nations (led by China & Russia) have been making detailed preparations in the last couple years to launch the alternative trade system founded in Gold Settlement. Its launch lacks a potential open door trigger, possibly offered by the Ukraine situation. The Gold Standard could return in a baptism by fire. The open door trigger appears to be the Western interventions into Ukraine, since the Western banking structures will not be permitted to collapse, the ugly reality. The abuse of the central bank monetary expansion and fraudulent bond redemption has gone totally out of control, forcing an endless cycle of alternative preparations and motivated reactions, including the Iran workaround with Turkey as intermediary in gold provision. Other attacks have taken place in the last few months against the Russian Ruble by Wall Street firms. The reaction will possibly be the launch of what could eventually be understood to be a gold-backed Ruble currency, combined with natgas cutoffs to Europe and USTBond dumps. At first it could be perceived as the oil-backed Ruble, but its quick hidden conversion to Gold bullion could be revealed later on. The USDollar will be discarded as obsolete, even toxic. The USDollar debt basis might be widely accepted to be the cause of the global financial crisis, and the USFed Quantitative Easing be widely understood to be the cause of the global financial collapse.

EUROPE AS KEY REGION TO TIP EASTWARD

Events inside Western Europe could unfold rapidly. Behind the scenes, much is happening. The important German-French Axis is breaking down, weakened by each passing month and bailout exercise. The motive for much of the German support of bailouts and rescue plans, as faulty as they have been, is the oversized German ownership of both French Govt debt and big French banks. They will fail, both the French sovereign debt and the big French banks. Germany must undergo a split, with a restructure from the devastating damage due to Southern European sovereign debt and related big bank losses. At the same time, Germany is on the verge of turning East to Russia. Already Russia is a large energy and mineral supplier to Germany, the heavy railway facilities in place. The core of Nordic Europe is firm. Austria and Finland are aligned with the pragmatic forces in Germany and the Netherlands. Italy is being transformed, but Spain might be lost to chaos. Turkey is also undergoing change during chaotic reform. The entire NATO Alliance has never been weaker. The military action in Ukraine is framed as a supposed NATO exercise to honor a treaty. Watch the loose end like Turkey fall off the NATO wagon, while Finland falls off the Euro currency wagon. The Jackass is eager to see the Snowden NSA files reveal key data on the illicit usage of NATO bases for narcotics distribution, the origin being Afghanistan. What a bombshell it would be if Turkey announced that their government would no longer permit heroin shipments from USMilitary aircraft on their Incirlik Airbase.

A key player in the mix is Israel. They have a Tamar floating platform, whose natgas has been pledged under contract to Russian Gazprom. The tiny nation is possibly changing its alliances out of pragmatism, seeing its drained weakened host that has duly served its purpose. The next big step is for Western Ukraine to suffer the drain of remaining resources (financial and agricultural) to the West, using all the diplomatic tools the Euro Elite can muster. The people in the East will realize that they have been betrayed once more by the Western powers. This is the critical final step. Several swing nations will consequently align with Germany, if only to make being integrated by Russia less painful. During all the transitions, China will take care of Asia in this game. The remaining overriding question is whether the US & Britain will go quietly in the night of faded empires, or else to wreck the world with nukes and viruses. The main exports out of the United States and its royal handlers have been fraudulent bonds, military hardware, genetically modified food, fast food with diabetes, pharmaceuticals, surveillance software, computer viruses, and jamming software technology. Such is the nature of the fascist transformation.

RUSSIA CANNOT BE ISOLATED

The West is in for a gigantic surprise in the sequence of events to unfold. They have placed criminal oligarchs into top government positions in Ukraine. Doing so might suit the West but not the Ukrainian people. The political brain trust in Berlin shows extremely errant strategy, still kowtowing to the USGovt and London Elite in an incomprehensible manner. The West cannot isolate Russia, which is the latest absurd bone-headed strategy. They need Russia in vital ways that will become apparent when the West faces energy supply cutoff or forced Gold payments during an open global USDollar rejection. The US will quickly feel the lost Petro-Dollar gear mechanisms. China has already aligned itself beside Russia, which makes isolation impossible. Consider the Russian commodity supply and Chinese industrial power, the new axis to the Eurasian Trade Zone.

The West cannot continue to bully Russia & China. Poking a stick in the bear’s face will not work for long. Disrespecting the Chinese creditor is deep folly. The risk that coincides is for the two Asian superpowers to threaten or actually execute a dumping initiative of USTreasury Bonds, and force the United States to use its last card in a grotesque display of hugely amplified monetary expansion. The US would collapse by falling on its own sword, the event occurring in the Weimar chamber. A super high volume bond monetization machine to cover globally dumped USTBonds is a strong likelihood as climax event, with a broken derivative mechanism that is revealed during its fracture. The London banker murders (another Jackass correct forecast, made in mid-2011) indicate a motive to keep covered up the extreme $100 billion JPMorgan derivative losses at the hands of the London Whale Bruno Iksil, first sighted in May 2012. The accelerated hyper monetary inflation in response to Russian & Chinese joint retaliation would finally kill the USDollar. The echo event, born from failure, would be for the USGovt to launch the new split Scheiss Dollar. Then the USGovt could have its domestic currency finally, and then wreck it with an assured painful sequence of devaluations. The fundamentals for the US domestic only currency are truly horrible, typical of a Third World nation. Ukraine is about the last gasp of the USDollar. It has no viable defense.

UKRAINE AS WATERLOO FOR THE US DOLLAR

Ukraine is the Waterloo event for Team Obama and the Wall Street handlers, the true controllers of the White House puppet. Ukraine will lead to wreckage to the USDollar and its USTBond partner in crime. Witness the death of the USDollar and the Birth of both the Gold Trade Standard, on the new Eurasian Trade Zone landscape. Neither Russia nor China will cooperate on the IMF super sovereign reformed currency basket at this point, not during extreme hostility and conflict. Hope and pray for cooler heads to prevail, since already many serious military attacks have occurred with advanced weapons off the Syrian coast. The Western Press prefers to frame the Ukraine situation as one more curious Orange Revolution event staged in Eastern Europe, akin to the other deceptive Arab Spring events. The old Soviet Union was trapped years ago, forced to use hyper monetary inflation in defense, as the nation imploded financially. The United States is now trapped in an ironic parallel manner, and will be exposed for its heretic inflationary response that ramps up to obscene volumes, followed by financial implosion. In fact, the events from here onward are the final hurrah for the USDollar regime and the criminal cabal.

Now has never been a better time to own a big stack of gold & silver coins & bars, stored in a secure place outside the United States, outside England, outside Switzerland, even outside Canada. The people must defend against a climax of systemic failure, led by arrogance, stupidity, desperation, and delusion, even armed aggression. It remains to be seen whether the Kremlin has some secret allies who might emerge in time, from other worlds. But that is an entire other story to be told someday maybe. We earthlings will all find out soon enough. Times are changing fast, and better to be alert than to get hurt. The Global Currency Reset lies directly ahead, complete with its doubled Gold price and doubled Silver price. The Russians & Chinese are motivated to respond to a military prod, poke, and nudge by delivering a financial response. The rejection of the USDollar is near. The rapid diversification away from the USTreasury Bond is near. The arrival of the new Global Gold Standard is imminent.

Source: GoldSeek.com | Jim Willie CB, GoldenJackass.com

Ukraine Crisis: Just Another Globalist-Engineered Powder Keg

March 5, 2014 by · Leave a Comment 

When one studies history, all events seem to revolve around the applications and degenerations of war. Great feats of human understanding, realization and enlightenment barely register in the mental footnotes of the average person. War is what we remember, idealize and aggrandize, which is why war is the tool most often exploited by oligarchy to distract the masses while it centralizes power.

With the exception of a few revolutions, most wars are instigated and controlled by financial elites, manipulating governments on both sides of the game to produce a preconceived result. The rise of National Socialism in Germany, for instance, was largely funded by corporate entities based in the U.S., including Rockefeller giant Standard Oil, JPMorgan and even IBM, which built the collating machines specifically used to organize Nazi extermination camps, the same machines IBM representatives serviced on site at places like Auschwitz. As a public figure, Adolf Hitler was considered a joke by most people in German society, until, of course, the Nazi Party received incredible levels of corporate investment. This aid was most evident in what came to be known as the Keppler Fund created through the Keppler Circle, a group of interests with contacts largely based in the U.S.

George W. Bush’s grandfather, Prescott Bush, used his position as director of the New York-based Union Banking Corporation to launder money for the Third Reich throughout the war. After being exposed and charged for trading with the enemy, the case against Bush magically disappeared in a puff of smoke, and the Bush family went on to become one of the most powerful political forces in America.

Without the aid of international conglomerates and banks, the Third Reich would have never risen to power.

The rise of communism in Russia through the Bolshevik Revolution was no different. As outlined in Professor Antony Sutton’s book Wall Street And The Bolshevik Revolution with vast detail and irrefutable supporting evidence, it was globalist financiers that created the social petri dish in which the communist takeover flourished.  The same financiers that aided the Nazis…

The two sides, National Socialism and communism, were essentially identical despotic governmental structures conjured by the same group of elites. These two sides, these two fraudulent ideologies, were then pitted against each other in an engineered conflict that we now call World War II, resulting in an estimated 48 million casualties globally and the ultimate formation of the United Nations, a precursor to world government.

Every major international crisis for the past century or more has ended with an even greater consolidation of world power into the hands of the few, and this is no accident.

When I discuss the concept of the false left/right paradigm with people, especially those in the liberty movement, I often see a light turn on, a moment of awareness in their faces. Many of us understand the con game because we live it day to day. We see past the superficial rhetoric of Republican and Democratic party leadership and take note of their numerous similarities, including foreign policy, domestic defense policy and economic policy. The voting records of the major players in both parties are almost identical. One is hard-pressed to find much difference in ideology between Bush and Barack Obama, for example; or Obama and John McCain; or Obama and Mitt Romney, for that matter.

When I suggest, however, that similar false paradigms are used between two apparently opposed nations, the light fades, and people are left dumbstruck. Despite the fact that globalist financiers shoveled capital into the U.S., British, German and Soviet military complexes all at the same time during World War II, many Americans do not want to believe that such a thing could be happening today.

In response, I present the crisis in Ukraine versus the crisis in Syria…

Ukraine Versus Syria

It seems as though much of the public has already forgotten that at the end of 2013, the U.S. came within a razor’s edge of economic disaster — not to mention the possibility of World War III. The war drums in Washington were thundering for “intervention” in Syria and the overthrow of Bashar Assad. The only thing that saved us, I believe, were the tireless efforts of the independent media in exposing the darker motives behind the Syrian insurgency and the bloodlust of the Obama Administration. The problem is that when the elites lose one avenue toward war and distraction, they have a tendency to simply create another. Eventually, the public is so overwhelmed by multiple trigger points and political powder kegs that they lose track of reality. I often call this the “scattergun effect.”

The crisis in the Ukraine is almost a carbon copy of the civil war in Syria, culminating in what I believe to be the exact same intent.

The Money

Money from globalist centers has been flowing into the Ukrainian opposition since at least 2004, when the Carnegie Foundation was caught filtering funds to anti-Russian political candidate Viktor Yushchenko, as well as to the groups who supported him.

The Ukrainian Supreme Court called for a runoff due to massive voter fraud and the rise of the pro-Western Orange Revolution, determining the winner to be Yushchenko over none other than Viktor Yanukovych. Yanukovych went on to win the 2010 elections, and the revolution returned to oust him this year.

It has been discovered that the current revolution has also been receiving funds from NATO and U.S. interests, not just from the State Department, but also from billionaires like Pierre Omidyar, the chairman of eBay and the new boss of journalist Glen Greenwald, the same journalist who is now famous for being the first to expose National Security Agency documents obtained by Edward Snowden.

Much of the monetary support from such financiers was being funneled to men like Oleh Rybachuk, the right-hand man to Yanukovych during the Orange Revolution and a favorite of neoconservatives and the State Department in the U.S.

The International Monetary Fund has also jumped at the chance to throw money at the new Ukrainian regime, which would prevent default of the country and allow the opposition movement to focus their attentions on Russia.

The revolution in Syria was also primarily driven by Western funds and arms transferred through training grounds like Benghazi, Libya. There is much evidence to suggest that theattack on the U.S. consulate in Benghazi was designed to possibly cover up the arming of Syrian rebels by the CIA, who had agents on the ground who still have not been allowed to testify in front of Congress.

After this conspiracy was exposed in the mainstream, globalist-controlled governments decided to openly supply money and weapons to the Syrian insurgency, instead of ending the subterfuge.

The ‘Rebels’

Some revolutions are quite real in their intent and motivations. But many either become co-opted by elites through financing, or they are created from thin air from the very beginning. Usually, the rebellions that are completely fabricated tend to lean toward extreme zealotry.

The Syrian insurgency is rife with, if not entirely dominated by, men associated with al-Qaida. Governments in the U.S. and Israel continue to support the insurgency despite their open affiliation with a group that is supposedly our greatest enemy. Syrian insurgents have been recorded committing numerous atrocities, including mass execution, the torture of civilians and even the cannibalism of human organs.

The revolution in Ukraine is run primarily by the Svoboda Party, a National Socialist (fascist) organization headed by Oleh Tyahnybok.  Here is a photo of Tyahnybok giving a familiar salute:

So far, the opposition in Ukraine has been mostly careful in avoiding the same insane displays of random violence that plagued the Syrians’ public image. It is important to remember though that mainstream outlets like Reuters went far out of their way in attempts to humanize Syrian al-Qaida. Their methods were exposed only through the vigilance of the independent media. With the fascist Svoboda in power in the Ukraine, I believe it is only a matter of time before we see video reports of similar atrocities, giving Russia a perfect rationalization to use military force.

John McCain?

I am now thoroughly convinced that John McCain is a pasty ghoul of the highest order. He claims to be conservative yet supports almost every action of the Obama Administration. He is constantly defending anti-Constitutional actions by the Federal government, including the Enemy Belligerents Act, which was eventually melded into the National Defense Authorization Act; NSA surveillance of U.S. citizens; and even gun control.

And for some reason, the guy makes appearances like clockwork right before or during major overthrows of existing governments. McCain was in Libya during the coup against Moammar Gadhafi.

McCain showed up to essentially buy off the rebels in Tunisia.

McCain hung out with al-Qaida in Syria.

And, what a surprise, McCain met with the Ukrainian opposition movement just before the overthrow of Viktor Yanukovych.  Here is a photo of McCain giving a speech to the opposition with none other than Neo-Nazi Oleh Tyahnybok standing over his left shoulder.

Why McCain? I have no idea. All I know is, if this guy shows up in your country, take cover.

Russia In The Middle

The great danger in Syria was not necessarily the chance of war with Assad. Rather, it was the chance that a war with Assad would expand into a larger conflagration with Iran and Russia. Russia’s only naval facility in the Mideast is on the coast of Tartus in Syria, and Russia has long-standing economic and political ties to Syria and Iran. Any physical action by the West in the region would have elicited a response from Vladimir Putin. The mainstream argument claims that the threat of Russian intervention scared off Obama, but I believe the only reason war actions were not executed by the White House and the globalists was because they didn’t have even minimal support from the general public. For any war, you need at least a moderate percentage of the population to back your play.

In Ukraine, we find the globalists creating tensions between the West and the East yet again. Russia’s most vital naval base sits in Crimea, an autonomous state tethered to the Ukrainian mainland. Currently, Russia has flooded Crimea with troops in response to the regime change in Ukraine. The new Ukrainian government (backed by NATO) has called this an “invasion” and an act of war, while Western warmongers like McCain and Lindsay Graham spread the propaganda meme that Russia made such a move only because Putin believes the Obama Administration to be “weak.”

Clearly, the idea here is to engineer either high tensions or eventual war between Russia and the United States. Syria failed to produce the desired outcome, so the Ukraine was tapped instead.

Energy Markets And The Dollar At Risk

In Syria, any U.S. led military action would have resulted in the immediate closing of the Straight of Hormuz by Iran, threatening to obstruct up to 30% of global petroleum shipments.  Foreign resentment could have easily led to the abandonment of the U.S. dollar as the petro-currency.  Both China and Russia implied the possibility of an economic response to American intervention, though they did not officially go into specifics.  In all likelihood, the dollar’s world reserve status would have been damaged irrevocably.

In the Ukraine, the chance of intervention has been countered with VERY specific threats from Russia, including a freeze on natural gas imports to the European Union through Gazprom, which supplies approximately 30% of the EU’s fuel.  In 2009, a temporary Ukranian pipeline closure led to widespread shortages across Europe.  While some in the mainstream claim that Russia’s influence over EU energy has “diminished” the fact is a loss of 30% of natural gas reserves for an extended period would inflate energy prices wildly and cripple the EU’s economy.

Another specific reaction given by Russia is the dumping of U.S. treasury bonds.  Russia’s bond holdings may not seem like much leverage, except for the fact that China has now publicly backed Russian efforts in the Ukraine, just as they backed Russian opposition to U.S. activities in Syria.  A dump of bonds by Russia would invariably be followed by a Chinese dump as well.  In fact, China and Russia have been setting the stage for a global dollar decoupling since at least 2008.   I have been warning for years that globalists and central bankers needed a “cover event”, a distraction or scapegoat imposing enough to provide a veil of chaos in which they could then destroy the greenback as the world reserve and usher in a global currency system.  The Ukraine crisis offers yet another opportunity for this plan to unfold.

The False Paradigm And The Globalist Chessboard

So far, I have outlined what appears to be a correspondence of conspiracy between Syria and the Ukraine and how each event has the continued potential to trigger regional conflict, dollar collapse, or world war. But is this conspiracy one-sided? Are only the West and NATO being manipulated by globalists to box in Russia and provoke a conflict? And what do globalists have to gain by sparking such disaster?

As with every other catastrophic fabricated war, the goal is the erasure of sovereign identity while consolidating of economic, political and social power. It is not enough that global financiers dominate the banking industry and own most politicians; they want to transform the public psyche. They want US to ask THEM for global governance. This manufacture of consent is often achieved by pitting two controlled governments against each other and then, in the wake of the tragedy, calling for global unification. The argument is always presented that if we simply abandoned the concept of nation states and reform under a single world body, all war would “disappear.”

The question is whether Russia’s Putin is aware of the plan. Is he a part of it?  Are we seeing repeat theater of a puppet Russia versus a puppet NATO like that witnessed during the Cold War?

What I do know is that Putin has, a number of times in the past, called for global control of the economy through the IMF and the institution of a new global currency using the IMF’s Special Drawing Rights (SDR).

Loans from the IMF are what saved Russia from debt default in the late 1990s. And Putin has recently called for consultations with the IMF concerning Crimea. Remember, this is the same IMF that is working to fund his opponents in Western Ukraine.

Bottom line, if you believe in national sovereignty and decentralization of power, Putin is NOT your buddy. Once again, we have the globalists injecting money into both sides of a conflict which could morph into something nightmarish.  Putin wants global economic governance and consolidation under the IMF just as much as the supposedly “American-run” IMF wants consolidation.  Global governance of finance and money creation ultimately means global governance of everything else.

Is a war being created through the false paradigm of East versus West in order to pave the road for global government?  Are East/West tensions being exploited as a smokescreen for the final destruction of the dollar’s world reserve status?  It is hard to say if the Ukraine will be the final trigger; however, the evidence suggests that if a conflict occurs, regardless of who “wins” such a scenario, the IMF comes out on top.

Imagine you are playing a game of chess by yourself. Which side wins at the end of that game: black or white? The answer is it doesn’t matter. You always win when you control both sides.

Source: Brandon Smith | Alt-Market

Fasten Your Seatbelts: The Coming Global Monetary Reset

February 27, 2014 by · Leave a Comment 

The big currency reset. It’s not a case of ‘if’ – it’s a case ofwhen.

Don’t expect your provincial Secretary of Treasury or Chancellor Exchequer to warn you about what is coming around the corner, because they are either too stupid to know, or too busy covering their own backsides.

To understand where we are, it’s very important to understand how we got here (another point which bureaucrats and backers do not want the general populace to know).

A quick history lesson then…

The Opposite of Emerging is Submerging

Lulled and distracted by the antics of developed country central banks and emerging economy central banks – to constantly “pump-up the jam” and flood the economy with paper casino chips from either Fort Knox or Mount Gox, the real tectonic shift of the global economy since 2008 has been more or less ignored by financial gurus and sages. It is taken as “normal” that deflation, ordisinflation is operating in the developed economies, but now we can see that rip-roaring inflation operating in the emerging economies.

Supposedly, this is ‘Muddle Through’, but since 2008 the North-South paradigm has all but dissolved – the developed OECD economies are locked in a death embrace with the Emerging economies. The developed economies are now locked into chronic globalization – exporting monetary inflation while importing cheap industrial goods, services and resources.

Since 2008 the always-promised ‘world shift’ of the economy from west to east, and from north to south has happened, but the net result is a shock. Pretending “we didn’t know” is comforting, but ultimately stupid.

This is an unstable equilibrium, or an interregnum – even a sideshow, because the current global economic context and process is the exact opposite of sustainable. Harm to both North and South is now the main impact of the post-2008 process of overreach and intense fiat paper shuffling. Listing the consequences and causes of this overreach is not easy and always open to argument, but possibly the best summary is to suggest that since 2008, ‘Ricardo’s comparative advantage‘ paradigm has been inverted. Economic and above all monetary globalization is now the path to ruin and poverty. From win-win to lose-lose. The worse it gets, expect the architects of ruin – establishment politicians, central bankers and financial pundits, to retreat into even deeper denial.

The Production Bubble That Triggers the Collapse

Another simple way to argue the global economy has overreached is that industrial and economic production capacity in the Emerging economies (EMs), starting with the BRICs, is now massively over-sized. This means the EMs can and will saturate the post-industrial, deflating North with industrial supply at every stage and opportunity as technology, design and product development throw up a new market openings everywhere. Examples like the car and cellphone, fashion wear and off-shore call center industries are relatively “classic”. All of these are already saturated with capacity – but the EMs are still adding more. Previous historical “classic examples” of this process for example included the ship building industry, but the scale paradigm has been woefully ignored.


BRAZILIAN SKILLZ: Production of top-line automobiles in Brazil has surpassed many of its ‘developed’ counterparts.

Since 2008, the process has intensified, creating an increasingly certain outlook for a forced and fiat end to the willingness of the EMs to accept the fiat currency endlessly printed to finance the deflating, de-industrializing DMs (developed economies).

This will not necessarily be a politicized process, of the type hinted at by India’s central bank governor (see http://finance.fortune.cnn.com/tag/raghuram-rajan/), due to the rapidity and scale of the crisis, but instead trigger the collapse of the current global fiat monetary orderdictated by national economic self-defence and survival in the EMs.

The economic jump start of the Ricardo model, which has run riot for the last quarter-century, and went into over-drived from 2008 – will be abandoned.

Deflation/Inflation: Two Sides of the Same Bitcoin

Ricardo’s original model held sunny Portugual as a producer of cork and sherry, while rainy England could produce wine casks from its oak forests and wool from its sheep flocks. The money used in a basically resource-based exchange using then-rapidly growing maritime transport capabilities was held to be stable and gold-linked (or based). Later on, low-cost labor resources were built into Ricardo’s paradigm called “comparative advantage”. The EMs since the 1980s have played the role of resource providers while the DMs were the solvent market suppliers.

While there was a clear limit on cork, wine, oak casks and woolens supply and demand, this does not really apply to modern global fiat money and modern industrial technology. These are high gain positive feedback processes which only stop when they hit a brick wall.

The Ricardo comparative advantage model does not apply to post-1980′s globalization and super economies – like those of China and India, where industrial technology has raced ahead of infrastructure development. This is simply a bomb waiting to explode, alongside the industrial capacity growth, the EMs engaged massive growth of credit, mushroom growth urbanization, neglect of the agriculture and food sector, and turning a blind eye to rampant or even “structural” corruption. Inflation was the sure and certain result.

The results do not stop there. While inflation took off inside the EMs, with their economies producing more than they can consume, and exporting to the DMs which consume more than they produce, the EMs are also exported deflation to the developed market economies. At the same time, the emerging market economies mined out their capital bases to maintain their breakneck growth of industrial capacity.

On an almost daily basis now, the EMs are all shifting to current account deficit with the inevitable consequences of national currency devaluation, further inflation, and of course – higher interest rates.

Win-Win to Lose-Lose: Global Fiat Currency Crisis

The post-1980′s economic globalization paradigm can be called an initial ‘Win-Win’ model which eventually morphed to Lose-Lose.

The industrial nations of the DMs, which formerly benefited from the resource nations of the EMs under the previous ‘Ricardo-type’ model, are now mired in debt and de-industrialization, making it impossible for them to “grow their way out of crisis”. The EMs on their present industrial expansion path can only grow themselves into rapidly-deepening crisis.

The “money-in-the-middle” especially concerns the US dollar and its subsidiary partner, theeuro, both of which are vastly overvalued fiat currencies – but against what? Almost inevitably, this will feature a big rebound for gold, playing the starring role of in this latest episode of “Canary in the Monetary Coal Mine”. From a personal standpoint, or national (for those who have any), physical gold and silver could end up providing solid protection against the exposure of a monetary reset.

Conversely, commodities are unlikely to profit on an enduring sustained basis, due to economic restructuring, re-centering and contraction being almost certain.

Commenting on the IMF’s latest report on global capital flows since 1980, Reuters on 30 January said that while the IMF estimates net capital inflows to emerging economies as $7 trillion or more only since 2005, this was a “legacy trend” hinged on the EMs running a much higher GDP growth differential above the DMs than present. The IMF report noted that for 2014, economic growth in the BRICs will go on declining, and for Russia and Brazil, they will be less even than the GDP growth of the US and Britain. While the IMF’s economists do not allow themselves to project break-of-series change to the global economy, the process of what Gordon T. Long calls “Global collateral impairment” can easily default as the net result of apparently ‘unrelated and complex’ runaway processes.

This collateral impairment will inevitably trigger multi-national currency protection measures, a situation already clear in countries like Turkey, India, Argentina and other EMs.

For DMs in the North, plans are likely already underway. Will the reset feature a brand new reserve currency, or the introduction a fledgling single global, or virtual currency? If so, what will it be backed by (or maybe it won’t). It’s hard to know right now, but a shift of that magnitude could provide for the introduction of something new in the mix.

It’s a case of problem, reaction, solution, and one can assume that this Hegelian equation has already been mapped out on the back of a napkin in an executive dining floor of the one of the world leading central banks, possibly written using Christine Lagarde’s lip stick.

As a result, sacrificing GDP growth to protect the national money in the EMs will be inevitable. In turn, this will send a severe shock wave North to the DMs ,which have surfed on the latter-day version of the Ricardo paradigm for the last 30 years, and are now left unable to adapt.

The basic conclusion is that a global monetary reset is now overdue.

There will be shock waves, and haircuts too.

Brace yourself for impact, because it’s coming.

Source: Andrew McKillop | 21st Century Wire

The Brown Revolution of the Ukraine

February 26, 2014 by · Leave a Comment 

I am a great fan of Kiev, an affable city of pleasing bourgeois character, with its plentiful small restaurants, clean tree-lined streets, and bonhomie of its beer gardens. A hundred years ago Kiev was predominantly a Russian resort, and some central areas have retained this flavour. Now Kiev is patrolled by armed thugs from the Western Ukraine, by fighters from the neo-Nazi -Right Sector, descendants of Stepan Bandera, the Ukrainian Quisling’s troopers, and by their local comrades-in-arms of nationalist persuasion.

After a month of confrontation, President Viktor Yanukovych gave in, signed the EC-prepared surrender and escaped their rough revolutionary justice by the skin of his teeth. The ruling party MPs were beaten and dispersed, the communists almost lynched, the opposition have the parliament all to themselves, and they’ve  appointed new ministers and taken over the Ukraine. The Brown Revolution has won in the Ukraine. This big East European country of fifty million inhabitants has gone the way of Libya. The US and the EU won this round, and pushed Russia back eastwards, just as they intended.

It remains to be seen whether the neo-Nazi thugs who won the battle will agree to surrender the sweet fruits of victory to politicians, who are, God knows, nasty enough. And more importantly, it remains to be seen whether the Russian-speaking East and South East of the country will accept the Brown rule of Kiev, or  split off and go their own way, as the people of Israel (so relates the Bible) after King Solomon’s death rebelled against his heir saying “To your tents, o Israel!” and proclaimed independence of their fief (I Kings 12:16). Meanwhile it seems that the Easterners’ desire to preserve Ukrainian state integrity is stronger than their dislike for the victorious Browns. Though they assembled their representatives for what could be a declaration of independence, they did not dare to claim power. These peaceful people have little stamina for strife.

Their great neighbour, Russia, does not appear overtly concerned with this ominous development. Both Russian news agencies, TASS and RIA, didn’t even place the dire Ukrainian news at the top, as Reuters and BBC did: for them, the Olympics and the biathlon were of greater importance.

This “ostrich” attitude is quite typical of the Russian media: whenever they find themselves in an embarrassing position, they escape into showing the Swan Lake ballet on TV. That’s what they did when the Soviet Union collapsed in 1991. This time it was the Olympics instead of the ballet.

Anti-Putin opposition in Russia heartily approved of the Ukrainian coup.Yesterday Kiev, tomorrow Moscow, they chanted. Maidan (the main square of Kiev, the site of anti-government demos) equals Bolotnaya (a square in Moscow, the site of anti-government protests in December 2012) is another popular slogan.

The majority of Russians were upset but not surprised. Russia decided to minimise its involvement in the Ukraine some weeks ago as if they wished to demonstrate to the world their non-interference. Their behaviour bordered on recklessness. While foreign ministers of EC countries and their allies crowded Kiev, Putin sent Vladimir Lukin, a human rights emissary, an elder low-level politician of very little clout, to deal with the Ukrainian crisis. The Russian Ambassador Mr Zurabov, another non-entity, completely disappeared from public view. (Now he was recalled to Moscow). Putin  made not a single public statement on the Ukraine, treating it as though it were Libya or Mali, not a neighbouring country quite close to the Russian hinterland.

This hands-off approach could have been expected: Russia did not interfere in the disastrous Ukrainian elections 2004, or in the Georgian elections that produced extremely anti-Russian governments. Russia gets involved only if there is a real battle on the ground, and a legitimate government asks for help, as in Ossetia in 2008 or in Syria in 2011. Russia supports those who fight for their cause, otherwise Russia, somewhat disappointingly, stands aside.

The West has no such inhibitions and its representatives were extremely active: the US State Department representative Victoria “Fuck EC’’ Nuland had spent days and weeks in Kiev, feeding the insurgents with cookies, delivering millions of smuggled greenbacks to them, meeting with their leaders, planning and plotting the coup. Kiev is awash with the newest US dollars fresh from its mint (of a kind yet unseen in Moscow, I’ve been told by Russian friends). The US embassy spread money around like a tipsy Texan in a night club. Every able-bodied young man willing to fight received five hundred dollar a week, a qualified fighter – up to a thousand, a platoon commander had two thousand dollars – good money by Ukrainian standards.

Money is not all. People are also needed for a successful coup. There was an opposition to Yanukovych who won democratic elections, and accordingly, three parties lost elections. Supporters of the three parties could field a lot of people for a peaceful demonstration, or for a sit-in. But would they fight when push comes to shove? Probably not. Ditto the recipients of generous US and EC grants (Nuland estimated the total sum of American investment in “democracy building” at five billion dollars). They could be called to come to the main square for a demo. However, the NGO beneficiaries are timid folk, not likely to risk their well-being. And the US needed a better fighting stock to remove the democratically elected president from power.

Serpent Eggs

In the Western Ukraine, the serpent eggs hatched: children of Nazi collaborators who had imbibed hatred towards the Russians with their mothers’ milk. Their fathers had formed a network under Reinhard Gehlen, the German spymaster. In 1945, as Germany was defeated, Gehlen swore allegiance to the US and delivered his networks to the CIA. They continued their guerrilla war against the Soviets until 1956. Their cruelty was legendary, for they aimed to terrify the population into full compliance to their command. Notoriously, they strangulated the Ukrainians suspected of being friendly to Russians with their bare hands.

A horrifying confession of a participant tells of their activities in Volyn: “One night, we strangulated 84 men. We strangulated adults, as for little kids, we held their legs, swung and broke their heads at a doorpost. …Two nice kids, Stepa and Olya, 12 and 14 years old… we tore the younger one into two parts, and there was no need to strangulate her mother Julia, she died of a heart attack” and so on and so on. They slaughtered hundreds of thousands of Poles and Jews; even the dreadful Baby Yar massacre was done by them, with German connivance, somewhat similar to Israeli connivance in the Sabra and Chatila massacres of Palestinians by the Lebanese fascists of the Phalange.

The children of these Bandera murderers were brought up to hate Communism,  Soviets and Russians, and in adoration of their fathers’ deeds. They formed the spearhead of the pro-US anti-government rebels in the Ukraine, the Right Sector led by out-and-out fascist Dmytro Yarosh. They were ready to fight, to die and kill. Such units attract potential rebels of differing backgrounds: their spokesman is young Russian -turned -Ukrainian -nationalist Artem Skoropadsky, a journalist with the mainstream oligarch-owned Kommersant-UA daily. There are similar young Russians who join Salafi networks and become suicide-bombers in the Caucasus mountains – young people whose desire for action and sacrifice could not be satisfied in the consumer society. This is a Slav al-Qaeda — real neo-Nazi storm troopers, a natural ally of the US.

And they did not fight only for association with EC and against joining a Russia-led TC. Their enemies were also the Russians in the Ukraine, and Russian-speaking ethnic Ukrainians. The difference between the twain is moot. Before independence in 1991, some three quarters of the population preferred to speak Russian. Since then, successive governments have tried to force people to use Ukrainian. For the Ukrainian neo-Nazis, anyone who speaks Russian is an enemy. You can compare this with Scotland, where people speak English, and nationalists would like to force them to speak the language of Burns.

Behind the spearhead of the Right Sector, with its fervent anti-communist and anti-Russian fighters, a larger organisation could be counted on: the neo-Nazi Freedom (Svoboda), of Tyagnibok. Some years ago Tyagnibokcalled for a fight against Russians and Jews, now he has become more cautious regarding the Jews. He is still as anti-Russian as John Foster Dulles. Tyagnibok was tolerated or even encouraged by Yanukovych, who wanted to take a leaf from the French president Jacques Chirac’s book. Chirac won the second round of elections against nationalist Le Pen, while probably he would have lost against any other opponent. In the same wise, Yanukovych wished Tyagnibok to become his defeatable opponent at the second round of presidential elections.

The parliamentary parties (the biggest one is the party of Julia Timoshenko with 25% of seats, the smaller one was the party of Klitschko the boxer with 15%) would support the turmoil as a way to gain power they lost at the elections.

Union of nationalists and liberals

Thus, a union of nationalists and liberals was formed. This union is the trademark of a new US policy in the Eastern Europe. It was tried in Russia two years ago, where enemies of Putin comprise of these two forces, of pro-Western liberals and of their new allies, Russian ethnic nationalists, soft and hard neo-Nazis. The liberals won’t fight, they are unpopular with the masses; they include an above-average percentage of Jews, gays, millionaires and liberal columnists; the nationalists can incite the great unwashed masses almost as well as the Bolsheviks, and will fight. This is the anti-Putin cocktail preferred by the US. This alliance actually took over 20% of vote in Moscow city elections, after their attempt to seize power by coup was beaten off by Putin. The Ukraine is their second, successful joint action.

Bear in mind: liberals do not have to support democracy. They do so only if they are certain democracy will deliver what they want. Otherwise, they can join forces with al Qaeda as now in Syria, with Islamic extremists as in Libya, with the Army as in Egypt, or with neo-Nazis, as now in Russia and the Ukraine. Historically, the liberal–Nazi alliance did not work because the old Nazis were enemies of bankers and financial capital, and therefore anti-Jewish. This hitch could be avoided: Mussolini was friendly to Jews and had a few Jewish ministers in his government; he objected to Hitler’s anti-Jewish attitude saying that “Jews are useful and friendly”. Hitler replied that if he were to allow that, thousands of Jews would join his party. Nowadays, this problem has vanished: modern neo-Nazis are friendly towards Jews, bankers and gays. The Norwegian killer Breivik is an exemplary sample of a Jew-friendly neo-Nazi. So are the Ukrainian and Russian neo-Nazis.

While the original Bandera thugs killed every Jew (and Pole) that came their way, their modern heirs receive some valuable Jewish support. The oligarchs of Jewish origin (Kolomoysky, Pinchuk and Poroshenko) financed them, while a prominent Jewish leader, Chairman of the Association of Jewish Organizations and Communities of the Ukraine, Josef Zissels, supported them and justified them. There are many supporters of Bandera in Israel; they usually claim that Bandera was not an anti-Semite, as he had a Jewish doctor. (So did Hitler.) Jews do not mind Nazis who do not target them. The Russian neo-Nazis target Tajik gastarbeiters, and the Ukrainian neo-Nazis target Russian-speakers.

Revolution: the Outline

The revolution deserves to be described in a few lines: Yanukovych was not too bad a president, prudent though weak. Still the Ukraine came to the edge of financial abyss. (You can read more about it in my previous piece) He tried to save the situation by allying with the EC, but the EC had no money to spare. Then he tried to make a deal with Russia, and Putin offered him a way out, without even demanding from him that the Ukraine join the Russian-led TC. This triggered the violent response of the EC and the US, as they were worried it would strengthen Russia.

Yanuk, as people call him for short, had few friends. Powerful Ukrainian oligarchs weren’t enamoured with him. Besides the usual reasons, they did not like the raider habits of Yanuk’s son, who would steal other men’s businesses. Here they may have had a point, for the leader of Belarus, the doughty Lukashenko, said that Yanuk’s son’s unorthodox ways of acquiring businesses brought disaster.

Yanuk’s electorate, the Russian-speaking people of the Ukraine (and they are a majority in the land, like English-speaking Scots are majority in Scotland) were disappointed with him because he did not give them the right to speak Russian and teach their children in Russian. The followers of Julia Timoshenko disliked him for jailing their leader. (She richly deserved it: she hired assassins, stole billions of Ukrainian state money in cahoots with a former prime minister, made a crooked deal with Gazprom at the expense of Ukrainian consumers, and what not.) Extreme nationalists hated him for not eradicating the Russian language.

The US-orchestrated attack on the elected President followed Gene Sharp’s instructions to a tee, namely: (1) seize a central square and organise a mass peaceful sit-in, (2) speak endlessly of danger of violent dispersal, (3) if the authorities do nothing, provoke bloodshed, (4) yell bloody murder, (5) the authority is horrified and stupefied and (6) removed and (7) new powers take over.

The most important element of the scheme has never been voiced by the cunning Sharp, and that is why the Occupy Wall Street movement (who thumbed through the book) failed to achieve the desired result. You have to have the Masters of Discourse™ i.e., Western mainstream media, on your side. Otherwise, the government will squash you as they did with the Occupy and many other similar movements. But here, the Western media was fully on the rebels’ side, for the events were organised by the US embassy.

At first, they gathered for a sit-in on the Independence Square (aka “Maidan Square”) some people they knew: recipients of USAID grants via the NGO network, wrote a Ukrainian expert Andrey Vajra, networks of fugitive oligarch Khoroshkovski, neo-Nazis of the Right Sector and radicals of the Common Cause. The peaceful assembly was lavishly entertained by artists; food and drink were served for free, free sex was encouraged – it was a carnival in the centre of the capital, and it began to attract the masses, as would happen in every city in the known universe. This carnival was paid for by the oligarchs and by the US embassy.

But the carnival could not last forever. As per (2), rumours of violent dispersal were spread. People became scared and drifted away. Only a small crowd of activists remained on the square. Provocation as per (3) was supplied by a Western agent within the administration, Mr Sergey Levochkin. He wrote his resignation letter, posted it and ordered police to violently disperse the sit-in. Police moved in and dispersed the activists. Nobody was killed, nobody was seriously wounded, – today, after a hundredfold dead, it is ridiculous even to mention this thrashing, – but the opposition yelled bloody murder at the time. The world media, this powerful tool in the hands of Masters of Discourse, decried “Yanukovych massacred children”. The EC and the US slapped on sanctions, foreign diplomats moved in, all claiming they want to protect peaceful demonstrators, while at the same time beefing up the Maidan crowd with armed gunmen and Right Sector fighters.

We referred to Gene Sharp, but the Maidan had an additional influence, that of Guy Debord and his concept of Society of Spectacle. It was not a real thing, but a well-done make-believe, as was its predecessor, the August 1991 Moscow “coup”. Yanukovych did everything to build up the Maidan resistance: he would send his riot police to disperse the crowd, and after they did only half of the job, he would call them back, and he did this every day. After such  treatment, even a very placid dog would bite.

The Spectacle-like unreal quality of Kiev events was emphasized by arrival of the imperial warmonger, the neocon philosopher Bernard-Henri Levy. He came to Maidan like he came to Libya and Bosnia, claiming human rights and threatening sanctions and bombing. Whenever he comes, war is following. I hope I shall be away from every country he plans to visit.

First victims of the Brown Revolution were the monuments – those of Lenin, for they do hate communism in every form, and those of the world war, because the revolutionaries solidarise with the lost side, with the German Nazis.

History will tell us to what extent Yanuk and his advisors understood what they were doing. Anyway, he encouraged the fire of Maidan by his inefficient raids by a weaponless police force. The neo-Nazis of Maidan used snipers against the police force, dozens of people were killed, but President Obama called upon Yanuk to desist, and he desisted. After renewed shooting, he would send the police in again. An EC diplomat would threaten him with the Hague tribunal dock, and he would call his police back. No government could function in such circumstances.

Eventually he collapsed, signed on the dotted line and departed for unknown destination. The rebels seized power, forbade the Russian language and began sacking Kiev and Lvov. Now the life of the placid people of Kiev has been turned into a living hell: daily robberies, beating, murder abound. The victors are preparing a military operation against the Russian-speaking areas in the South East of Ukraine. The spectacle of the revolution can yet turn really bloody.

Some Ukrainians hope that Julia Timoshenko, freshly released from jail, will be able to rein the rebels in. Others hope that President Putin will pay heed to the Ukrainian events, now that his Olympic games are, mercifully, finished. The spectacle is not over until the fat lady sings, but sing she will – her song still remains to be seen and heard.

English language editing by Ken Freeland.


A native of Novosibirsk, Siberia, a grandson of a professor of mathematics and a descendant of a Rabbi from Tiberias, Palestine, he studied at the prestigious School of the Academy of Sciences, and read Math and Law at Novosibirsk University. In 1969, he moved to Israel, served as paratrooper in the army and fought in the 1973 war.

After his military service he resumed his study of Law at the Hebrew University of Jerusalem, but abandoned the legal profession in pursuit of a career as a journalist and writer. He got his first taste of journalism with Israel Radio, and later went freelance. His varied assignments included covering Vietnam, Laos and Cambodia in the last stages of the war in South East Asia.

In 1975, Shamir joined the BBC and moved to London. In 1977-79 he wrote for the Israeli daily Maariv and other papers from Japan. While in Tokyo, he wrote Travels with My Son, his first book, and translated a number of Japanese classics.

Email at: info@israelshamir.net

Israel Shamir is a regular columnist for Veracity Voice

“Firesales” Could Trigger Another Financial Crisis

February 22, 2014 by · Leave a Comment 

“The repo market wasn’t just a part of the meltdown. It was the meltdown.” – David Weidner, Wall Street Journal, May 29, 2013.

Ask your average guy-on-the-street ‘what caused the financial crisis’, and you’ll either get a blank stare followed by a shrug of the shoulders or a brusque, three-word answer: “The housing bubble”. Even people who follow the news closely are usually sketchy on the details. They might add something about subprime mortgages or Lehman Brothers, but not much more than that. Very few people seem to know that the crisis began in a shadowy part of the financial system called repo, which is short for repurchase agreement. In 2008, repo was ground zero, the epicenter of the meltdown. That’s where the bank run took place that froze the credit markets and sent the financial system into freefall. Unfortunately, nothing has been done to fix the problems in repo, which means that we’re just as vulnerable today as we were five years ago when Lehman imploded and all hell broke loose.

Repo is a critical part of today’s financial architecture. It allows the banks to fund their long-term securities cheaply while giving lenders, like money markets, a place where they can park their money overnight and get a small return. The entire repo market is roughly $4.5 trillion, although the more volatile tri-party repo market is around $1.6 trillion. (Note: That’s $1.6 trillion that’s rolled over every day.)

Repo works a lot like a pawn shop. You bring your rusty bike and your imitation Van Gogh “Starry Night” to Rosie’s E-Z-Pawn, and the guy with the gold earring behind the counter gives you 15 bucks in return. That’s how repo works too, the only difference is that repo is a loan. The banks post collateral –mostly pools of mortgages (MBS) or US Treasuries– and get overnight loans from a cash-heavy lenders, like money markets, insurance companies or pension funds. Borrowers repay the loan with interest added to the original sum.

The problem that arose in 2008, and that will likely crop up in the future, was that the value of the underlying collateral (subprime MBS) was steadily downgraded forcing the banks to take steep haircuts. (which means they couldn’t borrow as much on their collateral) The bigger the haircuts, the less money the banks had to fund their securities which forced them to sell assets to make up the difference. When banks and other financial institutions deleverage quickly, asset prices plunge and capital is wiped out forcing the Fed to step in and backstop the system to prevent a full-blown meltdown. And that’s exactly what the Fed did in 2008. It slashed rates to zero, set up myriad lending facilities and provided unlimited backing for both regulated and unregulated financial institutions. It was the biggest financial rescue operation of all time and it cost somewhere in the neighborhood of 12 to 13 trillion dollars in loans and other guarantees. Under the provisions of the Dodd Frank financial reforms, the Fed is forbidden from carrying out a similar bailout in the future, although you can bet-your-bippy that Yellen and Co. will bend the rules if there’s another catastrophe.

Fixing repo is not a left-right issue. Among the people who follow these things, there is general agreement about what needs to be done to make the system safer. Even New York Fed President William C. Dudley –who’s no “liberal” by any stretch–admits that the system is broken. In October, 2013, at a bank conference Dudley opined, “Current reforms do not address the risk that a dealer’s loss of access to tri-party repo funding could precipitate destabilizing asset fire sales, whether by the dealer itself, or by the dealer’s creditors following a default.” In other words, the chances of another 5-alarm fire sometime in the future are pretty darn good.

Dudley’s description of what happened during the acute phase of the crisis is also worth reviewing. He said:

“Higher margins on repo and increased collateral calls due to credit ratings downgrades reduced the quantity of assets that could be financed in repo markets and elsewhere, prompting further asset sales. As wholesale investors started to exit, this set in motion a bad dynamic—a fire sale of assets that cut into earnings and capital. This just increased the incentives of investors to run and for banks to hoard liquidity against the risk that they could themselves face a run. This downward spiral of fire sales and funding runs was a key feature of the financial crisis …”

And, that, dear reader, is a first-rate account of what happened in 2008 when panic gripped the markets and the dominoes started to tumble. Former Fed chairman Ben Bernanke’s version of events is also worth a look if only because he describes the crash in terms of what it really was, a modern day bank run. Here’s what he said:

“What was different about this crisis was that the institutional structure was different. It wasn’t banks and depositors. It was broker-dealers and repo markets. It was money market funds and commercial paper.”

While most analysts agree about the origins of the crisis and the type of changes that are needed to avoid a repeat, the banks have blocked all attempts at reforming the system.

But, why?

It’s because the reforms would cost the banks more money, and they don’t want that. They’d rather put the entire system at risk, then cough up a little more dough to make repo safer. Here’s how the New York Fed summed it up in a paper titled “Shadow Bank Monitoring”:

“One clear motivation for intermediation outside of the traditional banking system is for private actors to evade regulation and taxes. … Regulation typically forces private actors to do something which they would otherwise not do: pay taxes to the official sector, disclose additional information to investors, or hold more capital against financial exposures. Financial activity which has been re-structured to avoid taxes, disclosure, and/or capital requirements, is referred to as arbitrage activity.” (“Shadow Bank Monitoring”, Federal Reserve Bank of New York Staff Reports, September, 2013)

That says it all, doesn’t it? They don’t want to pay taxes, they don’t want to hold capital against their collateral, and they want to continue to run their businesses in the shadows so nosy shareholders and regulators can’t see what the heck they’re up to. So, what else is new? The banks are running a crooked, black box operation, and they aim to keep it that way come hell or high water.

The banks can’t be reasoned with, that’s obvious from the position they’ve taken. They’ve put profits above everything, even the viability of the system. How can you reason with people like that? Just get a load of what the New York Fed said on the matter:

“Intermediaries create liquidity in the shadow banking system by levering up the collateral value of their assets. However, the liquidity creation comes at the cost of financial fragility as fluctuations in uncertainty cause a flight to quality from shadow liabilities to safe assets. The collapse of shadow banking liquidity has real effects via the pricing of credit and generates prolonged slumps after adverse shocks.”

This sounds more complicated than it is. What the Fed is saying is: “Hey, guys, you’re creating all this fake money (credit) by loading up on leverage (borrowing), and that’s pushing us closer to another crisis. Once the money markets figure out that all those nifty subprime CDOs you’ve been trading for overnight loans aren’t worth Jack-crap, then they’re going to cut you off at the knees and move into risk-free assets like US Treasuries. So why don’t you wise-the-hell-up, and start playing by the rules like everyone else so we don’t have to deal with another big, freaking meltdown. Okay?”

(Of course, I’m paraphrasing here.)

The only way to fix repo is by backstopping collateral with more capital, forcing all trading onto central clearing platforms (where regulators can see what’s going on), and regulating shadow banks like traditional, commercial banks. The editors at Bloomberg said it best nearly a year ago. They said: ” If an entity engages in banking activity… it must register as a bank, with all the backstops and capital requirements that entails.”

Right on.

If we’re not going to nationalize the banks and turn them into public utilities, which is what we should have done in 2009 when we had the chance, then we need to put safeguards in place to keep them from crashing the system every few years.

Regulate, Regulate, Regulate. That’s the ticket.

Stricter regulations could have prevented the last crisis, and stricter regulations can prevent the next one. It’s just a matter of finding the political will to get the job done.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Where Do We Go From Here?

February 22, 2014 by · 2 Comments 

Do You Really Want To Know?

G. Edward Griffin is a leader in the effort to inform the public about the dark blanket of imperialism being stretched across the Globe.  The blanket is still light and much of the free world is still breathing the air of peace, prosperity, and freedom.  But the Specter of the blanket can be seen in the long thin clouds of spray that fill our skies and in the United Nations signs that appear outside our parks.  Strands have invaded our town meetings where the phrase “Sustainable Development” has become common.  It can be affirmed by the death of privacy in Swiss Banks, by massive purchases of arms and ammunition by Homeland Security, and by the burgeoning piles of information being accumulated at the National Security Agency.  As light gives-way to darkness a solitary flame of freedom still burns brightly.

Informative messengers like the John Birch Society, G. Edward Griffin, Paul Craig Roberts, Rev. Chuck Baldwin and dozens of other talented internet speakers and writers have been conveying the message of clandestine danger for decades but the sparks have been too weak to ignite a fire.  The sweet wine of propaganda has sated many of our citizens and the evils of centralization have been erased from their self-censored minds.

Though most of our citizens claim to be Christian there is wide spread ignorance of the government our Christian God demands.  Preachers stress pietism and evangelism and assure their congregations that God’s Law is no longer valid.  Efforts to please God by studying and seeking to obey His commandments have been replaced by church Bible studies where in wicked arrogance God’s children critique their Creator and King.  Real Christianity has been left like a pot of gold in the middle of a Harlem street – defenseless and vulnerable.

Libertarians resist the looming tyranny with considerable energy.  They monitor the strands of control and publish informative warnings.  Their goal is a form of freedom with few moral restraints.  Some Christians are sprinkled through their midst and a few seek a Godly legal structure but the party contains a strong band of license seeking anarchists.

R. J. Rushdoony describes this problem: “The great illusion promoted by the United States and others is that freedom, by which they mean voting, will bring wealth and prosperity, but it does not.  What is required is character, moral standards put to work, a governing faith that creates its own environment.  Lacking that, the people will curse freedom and democracy as much as they did Marxism and dictatorship.  Freedom is a relative good: freedom can have an evil use as well as a good one.  The faith and morality of a people determine their use of freedom.”

A righteous, unchangeable, overarching legal structure and an obedient people provide the basis for maximum freedom.  Human beings were designed to live under the Will of their Creator; they are intrinsically unable to maintain peace and freedom any other way.  Without willing obedience to The Higher Authority diverse human opinion always produces tyranny

There are several concerns with current dissenting solutions to the world’s problems.  The major complaint against the progressive American entanglement in world government has been obedience to the Constitution.  The Constitution encodes religious freedom.  Rushdoony comments on this problem: “A multiverse of values means that men can choose their values and their lifestyles.  Homosexuality, necrophilia, incest bestiality, theft, murder, lies, and more all gain an equal validity as lifestyles.  In a world that affirms democracy, this means that all men have an equal right to play god and to live according to the morality of their choice.  Our present moral decay is a product of this polytheistic faith.  We cannot recover as a people and a culture without obedience to this first commandment. “Thou shalt have none other gods before me.”

In United States voting is considered a virtue in itself and hundreds of thousands of uninformed voters cast a ballot hoping to support their self-interest.  The entire process is conducted in a sea of slanted propaganda spewed through a biased media that seeks to keep voters ignorant and thinking they can actually influence the Federal Government.

Many citizens who fail to understand the malignant nature of both political parties become addicted to the process and continue year after year to believe the contrived lies that make up political campaigns.  If their candidate is elected and does exactly the opposite of what was promised they speak and write vigorous complaints. Some are so severely captivated that they make excuses for rank mendacity.  It is a form of insanity!

Dislike for the existing system provides fertilizer for numerous alternatives.  Waiting in the wings are powerful Communistic and Socialist organizations.  In unsettled times adrenalin begins to flow through the veins of despots of all stripes.  Promises of peace and prosperity come from every direction but the history of anarchic overthrows of repressive regimes is almost always another, that is often worse.

Distracting two party politics was not a product of the Constitution but was incipient before it was written.  The original division was between those who favored a strong, authoritative federal government and those who championed limited federal power.  This division created two political parties from the outset.   Humanism had seeped into the minds of our founders.  Biblical principles still lurked in their heads and though they crafted a document that showcased their desire to preserve freedom it was maligned with their prejudices.

Power seekers centralize; freedom seekers decentralize.  Biblical government decentralizes power into individual families.  The federal government should be a servant to the family which is overseen by the father.  The law should support the family and the church should arbitrate righteousness.  With God’s unchanging law standing supreme this governmental pattern could provide utmost freedom for the world and its citizens.

The United States of America has been overcome by powerful people who are willing to go along to get along.  Political parties are tightly controlled by their leaders and by a handful of shadowy but powerful owners of banks, corporations, press, and media.  Voters have been convinced that compromise is a component of good government.  When a nation functions without absolute rights and wrongs compromise allows politicians to legislate change.   Tragically, by allowing consistently inferior decisions, the change produces a constant deterioration in excellence.

Existentialism is a bane.   Widespread foreboding contributes to our concern for the moment; get all the gusto we can, for tomorrow we die!   The God of the Bible is concerned with the past, present, and future.  God reminds His people regularly of His former merciful and miraculous actions and has designed His commandments to produce a peaceful, prosperous and free future.  Rushdoony writes, “The anarchistic individualism of our time makes us mindless of the importance of our past and of our histories as people.”

God’s intentions for His people cannot be realized under a civil government that destroys the past with names like “Presidents Day”, threatens property ownership with ever increasing taxation, and the family structure by flaunting God’s directives.

Aggrandizing and distorting history sets society on a foundation of shifting sand.  Our first president, George Washington, is a hero to Americans and particularly to Christians.  He was, indeed, an admirable man.  Nevertheless, he was not without faults and some seriously injured the future of our nation.  Income to finance the Revolutionary war was always a problem to General Washington.  His ability to find funds to feed and equip his troops was hampered by the lack of a legal tax structure and when His considerable power was brought to bear on the construction of our Constitution the ability to tax was successfully included.  He was also very active in the Masons and religious freedom was another serious concern.  He sought to create a nation of free citizens but, ultimately, his prejudices have hampered its existence.

Lou Rockwell’s internet site and a host of Libertarian writers and speakers are doing a commendable job of ferreting out the dangers our imperial government is creating but their solution is not only vague but often utopian.

Freedom is a product of a righteous and obedient society.  God knows that we are sinners who require the rod and the staff of the Law if we wish to live in peace and freedom.  As our Creator and King He knows us better than we know ourselves.  When we become obsessed with our importance we need to consider that we had nothing to do with our entrance into this world and will not be able to control our exit.  We are sojourners in a wonderful world that we did not create but that we have a responsibility to contribute to, to enjoy and preserve.  We are tiny in relation the vast universe and unable to comprehend the infinite nature of its creator.   We have obeyed God’s command to subdue the earth but for our own ends not for those of our Ruler

The God of the Bible is sovereign and there is no doubt that the captivity that threatens the earth is a form of punishment.  We are self-ruled rebels who have forsaken God’s Commandments and thumbed our noses at His Person.  We need to thank Him for his mercy since the penalty for treason is death.  The Bible reports that when people repented and changed their ways He forgave them and restored them.  When all else fails will we repent?

Gentle reader, do you understand that when God fights on the side of righteousness victory is assured and numbers mean nothing.   We have people praying but God will not answer the prayers of a people who are under judgment.  Christians who use the end times as an excuse for disobedience bring God’s judgment on themselves and on our nation.  Every Christian must seek to obey God’s Commandments and to bring the nation and the world under His authority by the same obedience.  Much of our law has already been changed from righteousness to evil.  Changes in the law enforce confiscatory taxation, staggering debt, illegal wars, despotism, abortion and homosexuality.  We must support God’s Law.  The Constitution is ancillary; it is God’s Law that both we and our government must obey.

The legal codes contained in the Bible seem utopian by today’s standards but before the Constitution was ratified they were the foundation of our nation; though lonely, they are still the gold medal solution.

The Rushdoony quotes are from his book “Deuteronomy”.


Al Cronkrite is a writer living in Florida, reach him at: trueword13@yahoo.com

Visit his website at:http://www.verigospel.com/

Al Cronkrite is a regular columnist for Veracity Voice

Missing Military-Industrial-Complex Money

February 19, 2014 by · Leave a Comment 

When Major General Smedley Butler made his case,”War is a Racket” he did not pull any punches. “The normal profits of a business concern in the United States are six, eight, ten, and sometimes twelve percent. But war-time profits – ah! That is another matter – twenty, sixty, one hundred, three hundred, and even eighteen hundred per cent – the sky is the limit. All that traffic will bear. Uncle Sam has the money. Let’s get it.” The business of military procurement has multiplied since his fateful revelations.Not satisfied with fair profits or feasible competition, the practices of the defense corporatists illustrate one aspect of waste, graft and systemic bribery. William D. Hartung describes the consolidation and expanse of a select group of companies in the paper, The Military-Industrial Complex Revisited: Shifting Patterns of Military Contracting in the Post-9/11 Period

“Many of the same companies that benefited from increased Pentagon and war spending were top contractors for other security related agencies. For example, Lockheed Martin was not only the top contractor for the Pentagon, but it also ranked number one at the Department of Energy; number eight at the Department of Homeland Security (Boeing was number one); number two at the State Department; and number three at the National Aeronautics and Space Administration (NASA). Contracts let by these agencies were only a fraction of the levels awarded by the Pentagon, but they were significant nonetheless. For example, the Department of Homeland Security issued $13.4 billion in contracts in FY2008, NASA $15.9 billion, the State Department $5.5 billion, and the Department of Energy $24.6 billion.”

us-military-spending-vs-rest-of-world-from-sipri-from-globalissues-org.jpg

This dramatic growth in budgets is even more significant, when viewed in the context of world expenditures of other counties. Leaving aside the relative merits of the dangers and risk of external threats, the gigantic enterprise of fostering the biggest military apparatus in history has made select factions rich at the expense of the many.

Jonathan Turley in Pentagon Plugs: New Study Finds Pentagon Has Hidden Trillions In Missing Money And Equipment, references an example on how the overall avoidance of financial accountability, outright fraud and intentional concealment operates.

“A new report has detailed how the military has cooked the books to hide trillions, that’s right trillions, in missing money and equipment. The military calls them “plugs,” a curious term for fraud. These are knowingly fake figures used to hide the fact that there is no accurate record of the money.

The plugs are generally the work of the office of the Defense Finance and Accounting Service, the Pentagon’s main accounting agency. Required to complete an audit, the staff simply faked the numbers.”

Reuter’s reports on a Special Report: The Pentagon’s doctored ledgers conceal epic waste.

“Over the past 10 years, the Defense Department has signed contracts for the provision of more than $3 trillion in goods and services. How much of that money is wasted in overpayments to contractors, or was never spent and never remitted to the Treasury, is a mystery. That’s because of a massive backlog of “closeouts” – audits meant to ensure that a contract was fulfilled and the money ended up in the right place.”

Now trillions are sums that are unimaginable The Department of the Treasury acknowledges that U.S. gold reserves (if you believe their figures) total $11,041,059,958.16 as of their Current Report: January 31, 2014.

An eleven billion dollars equivalent is a mere drop in the bucket to the monies allocated to the military and homeland security. Taxpayers are regularly deceived about the costs. Congress is kept in the dark about black programs. And the war racket keeps funneling and siphoning off unknown sums to accounts that only a super computer can track.

 

Corporatocracy: How the Corporate Welfare State Divides and Conquers is a video by James Corbertt that provides an insightful analysis which establishes a surreal account how the oligarchy operates. The financial shenanigans of corporatists contribute to the interlocking directorates, which run the money pit that keeps the empire operating.

A rational reform of a depraved money laundering arrangement is impossible without a fundamental repudiation of the internationalist foreign policy doctrines that permeates the State Department. Funding advance technological warfare platforms that are unheard of to even congressional oversight is profoundly unconstitutional.

When such practices become routine, the economic incentives breed crooked abuses. The obligations for responsible public policy are methodically destroyed, when transparency is eliminated.

The Washington Blog provides several useful sources that document the extent of the problem in “$8.5 TRILLION In Taxpayer Money Doled Out By Congress To The Pentagon Since 1996 … Has NEVER Been Accounted For” and sums up with a bleak assessment.

“The Pentagon is the only federal agency that has not complied with a law that requires annual audits of all government departments. That means that the $8.5 trillion in taxpayer money doled out by Congress to the Pentagon since 1996, the first year it was supposed to be audited, has never been accounted for. That sum exceeds the value of China’s economic output last year.”

Evidently, the elites that benefit from bilking appropriations and the board members that steer the defense contractors want the con to continue. For all the money directed towards maintaining the war machine, our actual security become less secure.

Banks laundry ill-gotten gain, as prevailing practice, in the normal course of business because the arm merchants are protected players in the trade. The reprehensible circle that the dogs of war unleash the cash flow from their illicit drug sales, through arms sales, allows for the smooth transfer of hidden blood money into number accounts.

Such an organized system of mutual payoffs greases the ever growing industry of fear and destruction. All the missing money is buried in the unknown cashes of subterranean tyranny. Creating false flag threats allows for imaginary scourges to be new enemies. Protection from such manufactured foes is the real business of the military-industrial-complex.

So, when more details surface about the lost and unaccounted military funding money, it is just part of the price of keeping you safe.


Sartre is the publisher, editor, and writer for Breaking All The Rules. He can be reached at: BATR

Sartre is a regular columnist for Veracity Voice

How Big Banks Are Cashing In On Food Stamps

February 18, 2014 by · Leave a Comment 

Many benefit programs have gone high tech with debit cards and J.P. Morgan Chase and others are making a pretty penny charging users fees. What is there to be done?

The Agricultural Act of 2014, signed into law by President Obama last Friday, includes $8 billion in cuts to the Supplemental Nutrition Assistance Program (SNAP) over the next decade. One way the bill proposes to accomplish these savings is by reducing food stamp fraud. When the new farm bill is enacted, many of America’s hardest working families will experience cuts in services and have trouble putting food on their family’s table. But there will be major gains for an industry that most Americans might not expect: banking.

Banks reap hefty profits helping governments make payments to individuals, business that only got better when agencies switch from making payments on paper—checks and vouchers—to electronic benefits transfer (EBT) cards. EBT cards look and work like debit cards, and by 2002, had entirely replaced the stamp booklets that gave the food stamp program its name. SNAP is the most well-known program delivered via EBT, but they also carry payments for Temporary Aid to Needy Families (TANF); Women, Infants and Children (WIC); childcare subsidies; state general assistance; and many other programs. EBT use is widespread, from the corner store to the supercenter. According to a 2012 USDA report, SNAP funds, averaging $133 per family member per month, can be spent at more than 246,000 authorized stores, farmers’ markets, farms, and meal providers nationwide.

Not only are the operating costs of delivering benefits by EBT lower—no paper checks to cut, envelopes to stuff, or postage to pay—but electronic forms of payment allow banks to multiply opportunities for revenue generation. Banks hold contracts with federal, state, and municipal agencies to provide EBT cards and services, collect interest on federal reserve money held for government programs (though not on SNAP funds), charge transaction fees for merchant use of bank technology and infrastructure, and levy penalties on users for EBT card loss, out-of-network use, and balance inquiries. Banks make money distributing government benefits if the economy is bad, because more people sign up for assistance; they make money if the economy is good, because rising interest rates mean more profit on the money they hold to distribute to beneficiaries.

Distributing government benefits is a lucrative industry. According to theGovernment Accountability Institute, J.P. Morgan Chase, which currently controls EBT contracts in 21 states, Guam, and the Virgin Islands, made more than half a billion dollars between 2004 and 2012 providing government benefits to U.S. citizens. In New York alone, J.P. Morgan Electronic Financial Services (EFS) holds a nine-year, $177 million EBT services contract with the State Office of Temporary and Disability Services (OTDA). New York currently pays $0.95 per month for each its 1.7 million SNAP cases. In addition, J.P. Morgan EFS collects penalties and fees from benefit recipients: $5 to replace a lost EBT card, $0.40 for each balance inquiry, $0.50 each time their cards are declined for insufficient funds, and $1.50 per withdrawal if they use ATMs to get cash more than once a month. While information about profit margins on EBT contracts is neither collected at the national level nor released by banks, EBT is a significant growth area for big banks. Last year, the Federal Reserve Payments Study reported that the number of EBT transactions more than doubled since 2006.

Electronic benefits delivery is such a rewarding business that banks seem to fear only two things: policy changes and bad publicity. The publicity problems of EBT programs became obvious over the last three months of 2103 when three major EBT system failure scandals erupted. The threat of policy change is perhaps less visible. New regulations could take distribution of these benefits out of the hands of for-profit banks, limit the fees they are able to collect, or mandate a switch from EBT cards to different kinds of electronic funds transfer with fewer opportunities for generating revenue, such as direct deposit. But banks have nothing to fear in the new Agricultural Act; it’s only good news for the finance sector.

The new farm bill lowers benefit levels somewhat, exempts new categories of people—college students, ex-felons, and lottery winners—from SNAP eligibility, and prohibits advertising to increase enrollment of eligible individuals, like radio and television campaign launched by the USDA in 2004. But the bill’s sponsor, Representative Frank Lucas (R-OK), and other members of the House Committee on Agriculture seem to trust that detecting and preventing fraud will accomplish much of the hoped-for savings. The new Act includes numerous fraud-fighting provisions, including those that:

  • Require merchants to maintain unique terminal identification numbers for point of sale machines, further restrict the kinds of food that can be bought with SNAP, and bar manual sales of food items without bar codes;
  • Improve procedures and technologies to facilitate state-to-state and state-to-federal information sharing;
  • Invite federal-state collaborative pilot projects to “identify, investigate, and reduce fraud” by merchants; and
  • Set aside $40 million to help the USDA store information, such as food purchase data from chain stores and loyalty card companies, and data-mine it, by linking store sales and EBT transaction data at the household level to uncover purchasing patterns, for example.

In short, the SNAP fraud provisions will increase the ability of state and federal agencies to track who bought what food, where, and for how much. A vast amount of information on the purchases of millions of U.S. citizens will be collected by state agencies and private entities, stored by the USDA, and data-mined for patterns of EBT use that indicate fraud.

Why will this intensified focus on fraud work out so well for banks? First, banks innovate and control the most cutting-edge technologies that detect and prevent fraud in electronic funds transfer. The financial sector employs armies of computer programmers, IT specialists, and software engineers, and banks hold dozens of patents on biometric technology, data-mining systems, and payment tracking software. State and federal agencies can develop fraud-fighting code and procedures themselves, but many lack sufficient capacity and choose instead to contract with banks. Florida, for example, piloted an eight-month EBT abuse detection project in 2012 that was staffed by both J.P. Morgan and state employees, as Peter Schweizer reported in The Daily Beast. The anti-fraud provisions of the farm bill, thus, provide a significant opportunity for more, and more lucrative, contracts for banks.

Second, fraud in food stamps, despite public perceptions, is already low, and getting from very little fraud to zero fraud is prohibitively expensive. This is especially true for trafficking—the trading of SNAP benefits for cash—the most common form of SNAP fraud. Merchants and recipients must work together to traffic SNAP benefits. Recipients approach a merchant, who might offer 50 cents on the dollar to convert food stamps to cash. The merchant runs the EBT card, hands over cash, and then reports sales for reimbursement by the Treasury. Current fraud detection and prevention focuses on suspicious patterns—merchants who claim lots of even-dollar sales, recipients who spend all of their SNAP benefits in the first week of the month—but traffickers have adjusted quickly, learning to input odd dollar amounts and to spread requests for reimbursement over time.

The USDA estimates that the amount of SNAP benefits being trafficked has been reduced by 145 percent since 1993. According to a March 2011 Food and Nutrition Service (FNS) report, for the period of 2006-2008, trafficking diverted about 1 cent of each benefit dollar. Trafficking is difficult to detect and prevent, because retailers and recipients who commit fraud adapt as fast as banks, states, and the USDA can develop new data-mining and investigative procedures. This fraud-detection arms race is expensive and time-consuming for government agencies and contractors, and adds cumbersome limits and procedures for users—both merchants and recipients—most of whom aren’t committing fraud.

What cost are we willing to bear to reduce SNAP fraud to less than a penny per dollar? Federal and state government agencies invest astronomical sums in high-tech tools to address a financially negligible problem. For comparison’s sake, while we lose $330 million a year to SNAP trafficking, Ashlea Ebeling of Forbesestimates that the U.S. government loses $40 to $70 billion a year to offshore tax evasion. Nevertheless, in 2012, the FNS conducted 4,396 undercover investigations of retail grocers suspected of fraud, at an undisclosed cost to taxpayers, identifying violations in about 40 percent of cases. In 2011, Alabama’s RFP for EBT services strongly encouraged potential vendors to “recommend the use of new and innovative technologies” to “improve detection and prevention of fraud” and integrate biometrics in their proposals for the state’s SNAP program. The five-year Alabama contract, worth $51 million, went to Xerox, the same company that denied SNAP users in 17 states access to food for several hours when they shut down their EBT system without any warning last October.

Third, only three firms handle the majority of EBT contracts with states and U.S. territories: J.P. Morgan EFS (23 contracts); Xerox State and Local Solutions, Inc. (17 contracts); and eFunds Corporation, a subsidiary of FIS Global (11 contracts). On February 10, J.P. Morgan confirmed that it plans to sell its prepaid card business, including U.S. Public Sector and EBT programs, after suffering a serious data breach on debit cards used at Target stores and facing inquiries from Connecticut and New York about its lack of sufficient privacy safeguards and high card fees. This may leave even fewer players in the mix, and that’s a bad thing, according to Michele Simon, author of the report, “Food Stamps, Follow the Money: Are Corporations Profiting From Hungry Americans?”, who provided a copy of the New York/J.P. Morgan EBT contract for this story. When so few firms control such significant market share, it implies limited competition and excessive market power. Simon suggests, in fact, that the recent changes to SNAP represent a large, mostly overlooked corporate subsidy. “The real policy challenge in SNAP is not fraud. It is the fact that we have an $80 billion a year program that does not solve hunger, and certainly does not provide good nutrition, but instead is a boon for banks, big box retailers, and junk food companies.”

If banks are secret winners, the losers are pretty clear: taxpayers, particularly those who receive nutritional support through the SNAP program. That’s one in seven Americans at this moment, and 52 percent of all Americans at some point in their lifetimes, according to Mark Rank, author of One Nation, Underprivileged: Why American Poverty Affects Us All. Put simply, the Agricultural Act of 2014 takes money from a program that serves the majority of Americans and gives it to banks and high-tech companies.

But it does something else. These provisions improve a system meant to collect information on the food purchases of more than half of the U.S. population, and fund the development of increasingly sophisticated technology to sift and analyze it. In the same year that we expressed shock and outrage that the NSA is collecting meta-information on our cellphone calls and Google searches, why are we acquiescing, even welcoming, a sophisticated new program to collect American consumer information? Do we really want the federal and state governments data-mining our grocery lists?

We need a solution that contains bank profits and prevents this kind of mass surveillance. The answer’s simple: stop trying to predict fraud, eliminate complicated rules about what can and cannot be bought with food stamps, and switch to direct deposit.

A key challenge of this solution is connecting benefits recipients with affordable bank accounts, because for-profit banks are not particularly interested in low-balance, high-transaction customers. But, according to Aleta Sprague, policy analyst in the Asset Building Program at the New America Foundation, strategies that focus on eliminating barriers to bank accounts will provide significant benefits for poor and working Americans. Connecting benefits recipients to the financial mainstream poses real challenges to both the public assistance system and current financial practices, but there are intriguing experiments already underway. In Washington state, for example, a collaboration of the Department of Commerce and Burst for Prosperity is connecting households on public assistance with affordable banking services and requiring that no-fee accounts be included in future EBT provider contracts.

“Instead of seeking to monitor and regulate every purchase a low-income consumer makes,” says Sprague, “we should recognize and capitalize on the potential of the public assistance system to serve as a mechanism for financial inclusion. That way, rather than constructing the safety net around distrust of the poor, we would leverage the system to increase families’ financial autonomy and capabilities.”

Direct deposit is more efficient, cheaper, and requires less administrative oversight. That’s why the IRS, Social Security, and Unemployment Insurance encourage us to use it. What direct deposit would not allow is paternalistic rules about how public assistance beneficiaries choose to use their resources to best support their families. Treating SNAP recipients like the reasonable, hard-working adults they are is not only simpler and less expensive; it is most just.

Source: VIRGINIA EUBANKS | THE AMERICAN PROSPECT

Caught Red Handed

February 12, 2014 by · Leave a Comment 

Secret Tape Reveals US-backed Plot to Topple Ukraine’s Democratically-Elected President…

“In the latest debacle for the US State Department and the Obama Administration, US Assistant Secretary of State Victoria Nuland was caught on tape micro-managing Ukraine opposition party strategies with US Ambassador to Ukraine, Geoffrey Pyatt. That the Ukraine regime-change operation is to some degree being directed from Washington can no longer be denied….The taped conversation demonstrates in clear detail that while Secretary of State John Kerry decries any foreign meddling in Ukraine’s internal affairs, his State Department is virtually managing the entire process.”

– Daniel McAdams, “‘F**k the EU’: Tape Reveals US Runs Ukraine Opposition“, Ron Paul Institute

Washington is at it again, up to its old tricks. You’d think that after the Afghanistan and Iraq fiascos someone on the policymaking team would tell the fantasists to dial-it-down a bit. But, no. The Obama claque is just as eager to try their hand at regime change as their predecessors, the Bushies. This time the bullseye is on Ukraine, the home of the failed Orange Revolution, where US NGOs fomented a populist coup that brought down the government and paved the way for years of social instability, economic hardship and, eventually, a stronger alliance with Moscow.

That sure worked out well, didn’t it? One can only wonder what Obama has in mind for an encore.

Let’s cut to the chase: The US still clings to the idea that it can dominate the world with its ham-fisted military (that hasn’t won a war in 60 years) its scandalized Intel agencies, its comical Rambo-style “Special Ops” teams, and its oh-so-brilliant global strategists who think the days of the nation-state will soon be over hastening the onset of the glorious New World Order. Right. Ukraine is a critical part of that pipe dream, er, strategy which is why the US media puts demonstrations in Kiev in the headlines while similar protests in the US are consigned to the back pages just below the dog food ads. In any event, the crisis is likely to intensify in the months ahead as Washington engages in a no-holds-barred tug-o-war with Moscow over the future of civilization.

For bigwig strategists, like Zbigniew Brzezinski, Ukraine is a war that Washington must win to maintain its position as the world’s only superpower. As he sees it, the US must establish outposts throughout Eurasia to diminish Russia’s influence, control China, and capitalize off the new century’s fastest growing region. Here’s how Brzezinski sums it up in Foreign Affairs in an article titled “A Geostrategy for Eurasia”:

“America’s emergence as the sole global superpower now makes an integrated and comprehensive strategy for Eurasia imperative…Eurasia is home to most of the world’s politically assertive and dynamic states. All the historical pretenders to global power originated in Eurasia. The world’s most populous aspirants to regional hegemony, China and India, are in Eurasia, as are all the potential political or economic challengers to American primacy…

Eurasia is the world’s axial supercontinent. A power that dominated Eurasia would exercise decisive influence over two of the world’s three most economically productive regions, Western Europe and East Asia. A glance at the map also suggests that a country dominant in Eurasia would almost automatically control the Middle East and Africa…

What happens with the distribution of power on the Eurasian landmass will be of decisive importance to America’s global primacy and historical legacy.” ( “A Geostrategy for Eurasia”, Zbigniew Brzezinski, Foreign Affairs, 1997)

Okay, so the not-so-subtle Brzezinski is telling US policymakers that if they want to rule the world, they’ve got to take over Eurasia. That’s pretty clear. It’s the Great Game all over again and Ukraine is one of the biggest trophies, which is why the US has allied itself to all kinds crackpot, rightwing groups that are stirring up trouble in Kiev. It’s because Washington will stop at nothing to achieve its objectives. Of course, there’s nothing new about any of this. The US frequently supports violent, far-right organizations if their interests coincide. Here’s a little background on the topic from Eric Draitser in an article in CounterPunch titled “Ukraine and the Rebirth of Fascism”:

“In an attempt to pry Ukraine out of the Russian sphere of influence, the US-EU-NATO alliance has, not for the first time, allied itself with fascists. Of course, for decades, millions in Latin America were disappeared or murdered by fascist paramilitary forces armed and supported by the United States. The mujahideen of Afghanistan, which later transmogrified into Al Qaeda, also extreme ideological reactionaries, were created and financed by the United States for the purposes of destabilizing Russia. And of course, there is the painful reality of Libya and, most recently Syria, where the United States and its allies finance and support extremist jihadis against a government that has refused to align with the US and Israel. There is a disturbing pattern here that has never been lost on keen political observers: the United States always makes common cause with right wing extremists and fascists for geopolitical gain.” (Ukraine and the rebirth of Fascism“, Eric Draitser, CounterPunch)

Death squads here, jihadis there; what difference does it make to the big shots in Washington?

Not much, apparently.

But, wait, what’s all this talk about the US being on the side of anti-Semites and fascists in Ukraine? Is that true?

It sure looks that way. In fact, there was a funny story in the World Socialist Web Site about Assistant Secretary of State Victoria “Fuck the EU” Nuland which shows how far these people will go to achieve their objectives. In this case, Nuland, who — according to the WSWS — is “the grand-daughter of Jewish immigrants who fled to America to escape pogroms in Tsarist Russia”…was seen “handing out cookies in Maidan square to Svoboda thugs who venerate the mass murderers of Hitler’s SS.” (“Leaked phone call on Ukraine lays bare Washington’s gangsterism“, Bill Van Auken, World Socialist Web Site)

Nice, eh? So Vickie was having a little snacktime with guys who’d probably shove a knife in her back if they were given half a chance. That’s what you call dedication. By the way, Nuland’s “husband is Robert Kagan, the right-wing foreign policy pundit who served as the founding chairman of the Project for a New American Century, the neo-conservative Washington think tank that played a key role in the political and ideological preparation for the wars against Iraq and Afghanistan.”

The fact that Obama and Co. are directly involved in this latest would-be coup, doesn’t surprise anyone. According to a recent poll conducted by the All-Russian Public Opinion Research Center, “almost a half (45%) of Russian citizens think that protests in Ukraine have been provoked by Western special services.” By “special services” we presume the survey’s authors mean US Intel agencies and US-funded NGOs which have a long history of poking their noses in other country’s affairs. Here’s a statement by Rep Ron Paul in 2004 to the US House International Relations Committee which helps to throw a little light on the issue:

“It is clear that a significant amount of US taxpayer dollars went to support one candidate in Ukraine. …. What we do not know, however, is just how much US government money was spent to influence the outcome of the Ukrainian election.

Dozens of organizations are granted funds under the PAUCI program alone, (Poland-America-Ukraine Cooperation Initiative, which is administered by the US-based Freedom House.) and this is only one of many programs that funneled dollars into Ukraine. We do not know how many millions of US taxpayer dollars the National Endowment for Democracy (NED) sent to Ukraine through NED’s National Democratic Institute and International Republican Institute. Nor do we know how many other efforts, overt or covert, have been made to support one candidate over the other in Ukraine.

That is what I find so disturbing: there are so many cut-out organizations and sub-grantees that we have no idea how much US government money was really spent on Ukraine, and most importantly how it was spent.” (“What has the NED done in Ukraine?“, Ron Paul, Lew Rockwell)

The fact is, the USG gives away tons of money to all types of shady groups who carry out their agenda. As far as Ukraine is concerned, we actually have a better idea of the money that’s been spent than Paul thinks. Check out this video of Nuland addressing various industry groups and admitting that, “Since the declaration of Ukrainian independence in 1991, the United States supported the Ukrainians in the development of democratic institutions and skills in promoting civil society and a good form of government…We have invested more than 5 billion dollars to help Ukraine to achieve these and other goals.” (“Washington’s cloned female warmongers“, Finian Cunningham, Information Clearinghouse)

5 billion smackers to topple a democratically-elected government in Ukraine while 8 million Americans still can’t find a damn job in the US. That tells you a lot about Obama’s priorities, doesn’t it?

Last week’s fiasco surrounding Nuland’s leaked phone conversation has clarified what’s really going on behind the scenes. While the media has focused on Nuland’s obscenity, (“Fuck the EU”) it’s the other parts of the conversation that grabbed our attention. Here’s a brief summary by the WSWS’s Bill Van Auken:

“The call (exposes) the criminal and imperialist character of US policy in Ukraine …What the tape makes clear, is that Washington is employing methods of international gangsterism, including violence, to effect a political coup aimed at installing a regime that is fully subordinate to US geo-strategic interests…

The precise goal of US efforts is to shift political power into the hands of a collection of Western-aligned Ukrainian oligarchs who enriched themselves off of the private appropriation—theft—of state property carried out as part of the Stalinist bureaucracy’s dissolution of the Soviet Union in 1991. In doing so, it aims to turn Ukraine into a US imperialist beachhead on the very border of Russia, whose territory it also wants to divide and subjugate to neocolonial status as part of its drive to assert American hegemony throughout the strategic landmass of Eurasia…

Nuland makes clear that behind the scenes, Washington is dictating which leaders of the opposition…should enter the government to swing it behind Washington and what role the others will play…”(“Leaked phone call on Ukraine lays bare Washington’s gangsterism“, Bill Van Auken, World socialist Web Site)

Same old, same old. Like we said earlier, there’s nothing new here, nothing at all. All the blabber about “democracy” is just public relations crappola. It means nothing. US elites want to trim Moscow’s wings, set up shop in Eurasia, control China’s growth, be a bigger player in the continent’s oil and natural gas markets, export its financial services model, and make as much money as possible in the 21st century’s hottest market, Asia. It’s all about profits. Profits and power.

But then, you probably knew that already.


Mike Whitney is a regular columnist for Veracity Voice

Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com

Non-Participation And Decentralization As Primers For Revolution

February 12, 2014 by · Leave a Comment 

When writing investigative examinations on the corrupt state of American government and American economy, invariably one is met with the same set of ever cycling broken-record questions and assertions. One of the primary responses I have received and I’m sure most Liberty Movement analysts have received is this:

“Okay, now we know what the problem is, but when are YOU going to tell US what the solution is…?”

The question seems “reasonable”, but in reality, everything that is weak minded in our culture today is summed up in its content.

First, the question insinuates that there is no utility in exploring the nature of a crisis without “fixing” the situation right then and there. Often, the most complex problems of our world require years if not decades of thought and action, trial and error, before a single working solution is generated. When the problem involves a criminal government run by corporatist oligarchs bent on total globalization and centralized control of finance, society, and law, you have to expect that there will be some difficulties in finding a remedy. You will never defeat your enemy without knowing your enemy, and our particular fight requires endless analysis.

Second, I wish I could convey the palm-to-forehead agony I feel every time I hear someone begging for myself, or anyone for that matter, to overnight mail them a solution on a silver platter wrapped in perfect little pink bow. Why is it that so many Americans today refuse to offer THEIR OWN solutions to the problems they perceive in the world? Is it laziness, or stupidity, or both? They are so busy waiting for a “white knight” to come and save them they have forgotten to learn how to save themselves. Don’t sit idle expecting analysts to make your life better. Become industrious. Take initiative. Think of something we haven’t thought of yet. Stop being followers and start becoming leaders within your own communities.

Third, the worst of all dilemmas when dealing with the above question is that most of the time, it is being asked by people who already have a preconceived answer they want to hear. Many in our movement today want a silver bullet solution. They want magic and fairy dust. They want to end tyranny with a snap of their fingers, the press of the button, within the span of a day, or perhaps a week. They don’t want to have to work beyond their normal capacity, they don’t want to struggle, they don’t want to sacrifice, and they certainly don’t want to risk their property, livelihood, or life.

They want a civil rights style MLK/Ghandi march on Washington D.C., which has already been done over and over again leading to nothing but ever more corruption (you don’t ask tyrants to police themselves, nor do you ask for their permission to change government). They want an armed march on Washington D.C. (perhaps the most tactically moronic strategy ever to be suggested year after year), leading to nothing more than a bloodbath which would only make the Liberty Movement appear weak, or insane, all in a failed attempt to unseat a bunch of politicians who are merely puppets and middle men for the financial elites. They want Generals grandstanding as purveyors of constitutionalism to initiate a military coup to remove the “evil Muslim” from his seat of power (is Obama a Muslim, or an atheist Communist? These methodologies tend to negate each other…), while the truth is, Obama is nothing more that a minor obstacle compared to the greater evil of central banking and internationalism, and a Neo-Con Republican (or provocateur General) could easily continue Obama’s work without missing a beat.

And, most of all, they want something flashy, something new, something technological and glorious to solve all their woes. How many times have you heard the claim, for instance, that digital currencies like Bitcoin would “bring down” the central banks and turn the globalist empire to dust at our feet? Yet, Bitcoin’s very existence relies on the web, a government dominated networking system which they can remove from our hands any time they wish.

These are not solutions, they are distractions, or worse, con-games. They are designed to fool you into thinking that you can lounge behind your computer, or walk blindly down the street with a sign or a gun, and the nation will attain renaissance without a tear or a drop of blood shed. They are pleasant lies that many people want to have whispered to them.

I have no interest in making people feel comfortable, or safe, or at ease in the nature of the task before us. I’m only interested in the truth, and the truth is, REAL solutions have already been offered to the Liberty Movement. For years we’ve been talking about them, implementing them, and attempting to convince others to implement them. These solutions are not easy. They are not pleasant or quick. They will require much sacrifice, and unimaginable suffering. There is no way around these tasks if we are to succeed and dismantle centralized totalitarianism in our lifetimes…

Non-Participation

This is a simple concept that for some reason tends to confound people. If you march to the steps of the White House motivated by a desire to educate others on the hidden dangers of our political situation, then this is all well and good. But, if you march to the steps of the White House with the expectation that this gesture will somehow impress or frighten the military industrial complex into forsaking its criminal ways and step down from power, then you have fallen into a delusional paradigm.

If you are using a government controlled communications medium like the internet to educate others while the system still exists, then this is practical. But, if you really believe that you are going to exploit that same network as an offensive tool to destroy Big Brother, you are living in techno-geek dreamland.

And, if you still think that the diseased political arena has any merit whatsoever and that the system can be inoculated from the within, or that you can rewrite the rules on a whim (constitutional convention) and have those rules followed, at this point I don’t hold much hope for you.

Now, I want you to imagine, just for a moment, that the government does not exist. The internet does not exist. Corporate banking chains and department stores and grocery outlets do not exist. State law enforcement organizations do not exist. State run schools do not exist. How would you go about living day to day without the bureaucracy, the welfare, the infrastructure, the safety nets? This is how ALL Liberty Movement activists are going to have to start thinking if they want to change anything.

The Non-Participation Principle is best summarized like this:

When facing a corrupt system, provide for yourself and your community those necessities that the system cannot or will not. Become independent from establishment-controlled paradigms. If you and your community do this, the system will have one of two choices:

1)  Admit that you do not need them anymore and fade into the fog of history, OR…

2)  Reveal its tyrannical nature in full and attempt to force you back into dependence.

In either case, you win. You have taken proactive measures to remove yourself as a cog in the machine. The machine can then of course try to demonize you, or attack you, but ultimately, they will attack from a place of social and moral weakness, and you will defend from a position of logistical and moral strength.

Stop waiting for the system to change, or collapse. Change the way YOU live and survive. Build your own localized systems and walk away.

Decentralization

Learn a vital trade skill, grow your own food, purchase resource rich raw land, learn self defense methods beyond what law enforcement personnel are trained in (which is not too difficult), take EMT training courses so that you can provide general and emergency medical care for your family, get your children out of the state run common core indoctrination centers and homeschool them, build neighborhood watch groups, emergency response groups, barter markets and alternative economies.

Decentralization is about dissolving our unbalanced relationship with the state and taking away their power to dictate how we live. If a core necessity is centralized in the hands of a select few, then we start producing it ourselves and remove that option from their deck of cards. You cannot fight a corrupt system if you are dependent on a corrupt system.

The very essence of globalism is centralized oversight of every aspect of our lives. When we allow ourselves to feed from the government or corporate trough because it’s “easier”, we are essentially volunteering to be herded like animals. It is within the power of every single individual, no matter their age or financial circumstances, to find creative ways in becoming more independent. It is up to you. There are no excuses.

Revolution

We should have no illusions that the criminal elements of our government will simply shrug their shoulders and give up. When we decentralize, we show the world how irrelevant they are. Tyrants must remain relevant to the masses, otherwise, they have no means to dominate except pure force. When that force is eventually applied, the ONLY logical response is revolution. Decentralization is not a means to “avoid” such revolution, it is only a means to strengthen our position in preparation for revolution.

There is no ideal revolutionary model because the unique nature of one’s epoch determines the nature of one’s rebellion. However, I can say that any revolution that does not focus on the foundational culprits behind the offending tyranny is doomed to failure. When I see the overt obsession with Barack Obama as some kind of linchpin in the development of socialism in America, I have to remind people that Obama has merely stood on the legislative efforts of George W. Bush, and so many other globalist presidents before him, in order to bring the U.S. to the current point of catastrophe. And who made these men, these so-called “leaders”? Who financed their campaigns? Who taught them the internationalist methodologies they now implement? Who really controls money, and thus economy, and thus politics in this country?

Revolution must be directed at the oligarchs, not just their mascots, and if anyone asks you to rally around a revolution that does not name central banking and international banking entities and the men who run them as direct culprits, they are probably controlled opposition. We don’t need a French or Bolshevik Revolution to replace old puppets with new puppets, we need to go to the very heart of the cancer that has stricken our nation and remove it. If this means we have to physically fight back, then so be it, but we must be smart in how we fight.

In the end, the average citizen is his own defender, his own governor, his own industrialist, his own “king maker”. He may consciously realize this, or he may be oblivious. All of the solutions, all of the tools, are right there, in his hands, waiting to be used. The saddest truth of all is that the only thing holding him back from legitimate freedom is his own fear. Only when we stop avoiding the pain required to procure independence, will we finally have it.

Source: Brandon Smith | Alt-Market

You Are The Enemy

February 10, 2014 by · 2 Comments 

There is now a New American War.  It is inside America. It is called the “War on Terror”. The enemy is YOU!

It is a staged, Phony War that has been created by the International Zionist Crime Syndicate (IZCS).

This New War on Terror has an enemy. That enemy is the American People, You and Me.

Every Military Force needs an enemy. Without an ongoing or perpetual war, the War profiteers quickly go bankrupt.

In order to keep their profit stream going from war, war-profiteers need to create successive new wars or a significant threat of impending war.

Creating pretexts for these much needed wars is very hard work and quite expensive too. But war is a business, a very big business, and war-profiteers need to invest big money to make even more in return.

Members of Congress must be bought, and top Generals and Admirals of the Military High Command too.

This costs a great deal of hard cold cash, but that’s okay because the IZCS gets all it needs from fat US foreign aid to Israel, fat contracts with Israeli Defense providers, and fat donations from those wealthy zionist businessmen that the IZCS manipulates, guilts or shakes down.

At this point, a select group of 70,000 K-Street Lobbyists go to work distributing funds to get elected officials on Board. The several select Generals and Admirals are handled more covertly.

If this is not enough revenue to pay off the necessary officials, the IZCS gets the rest directly from its private Central Banksters who can create all the money they want digitally, anytime they want, and give it to tribal brothers or anyone else, anytime they want.

Of course the key thing here is a significant portion of these fat revenues are kicked back to the corrupt, bought and owned members of Congress who voted for them, and to select top Generals and Admirals of the High Military Command who support the IZCS intended proxy wars by America on their behalf.

Under President Obama’s Administration, for whatever reasons, the High Military Command has not been willing to take payoffs and favors and has not been blackmail-able by the IZCS.

[Note: this is a long article and one option is to read the caps first and then any areas you are interested in if you have time]

Here is the new game in the so-called American Defense Industry.  It is a stateside game and it involves magically transforming any and all innocent, Constitutional, law-abiding citizens into Domestic Dissenters, aka “Domestic Terrorists” or something close enough to declare war on “Potential Domestic Dissenters, aka “Potential Domestic Terrorists”. This is an occult, alchemical symbolic processing of the American people (aka “we the people”) into an defined domestic enemy that can be waged war against on many fronts–phone and email tapping, massive spying and infiltration of all domestic groupings, even neighborhood coffee parties or local church charities–you name it, everything.

This new redefinition of normal law-abiding Americans into “Enemies of the State” and its internal security apparatus as a threat to national security IS a magical conversion or transformation of the normal American Society, mainstream law abiding America, into a huge domestic national security market. This is all an horrendous BIG LIE.

Actually the real situation is just the opposite–it is the USG and specifically the Fusion Centers and the Department of Homeland Security run by perverts and enemies of “we the people” that are the real risk to the true and actual national security of America the republic and to all honest, law abiding, Constitutional Americans. And the USG and DHS and Fusion Center officials are nothing less than world class criminals committing both High Treason and Sedition against America the Republic. The USG has been hijacked and is being run by those who have turned everything upside down.

This redefinition of course involves placing cameras and microphones on almost every street corner in the light-poles and pulsed beam psychotronic generators in many street lamps, turned on full power during rush hour to sedate and subdue the populace in order to keep the masses in line.

Some say that the new Chairman of the JCS, General Martin Dempsey, is a breath of fresh air, a real American Patriot who honors his Oath to defend the US Constitution from all enemies foreign and domestic.

So far, General Dempsey has resisted major efforts to coerce him to support and engage in any new major American Mideast Air and Ground invasion (another American proxy war for Israel).

And many believe that our new Secretary of Defense Chuck Hagel is another America-firster who takes his oath to defend the US Constitution seriously also.

JCS Chairman Dempsey’s independence and commitment to America on this matter has elevated him to the status of a “rock star” in the view of many who appreciate his steadfastness, and he is regarded as a true America-firster.

Some experts view JCS Chairman Dempsey’s integrity and commitment to America the Republic as a major turning point, signaling the realization by the High Military Command that the 9/11 attacks were an inside-job, a false-flag attack run by the IZCS with the help of several Traitors within the USAF, JCS, and NORAD.

And that it also signals a shocking realization, for the first time, that most of the Institutions of the USG have been deeply hijacked by the IZCS and their Cutouts have included the Bush Cabal which is now struggling to maintain a thin hold on power.(1)

Obviously, Chairman Dempsey’s and Defense Secretary Hagel’s steadfast resistance to being manipulated by the IZCS into fighting another major Mideast ground and Air proxy war for Israel appears to be driving the IZCS to desperation.  So far these America-firsters are holding fast against any and all IZCS manipulations and pressure and doing an excellent job staying on course.

The IZCS knows that unless it gets another American proxy war in the Mideast for Israel, they are finished.  They also know that if the American masses ever start finding out that 9/11 was planned and controlled by those owned by the IZCS, they are done too.

Actually the 9/11 attacks of the IZCS were in a sense a going-for-broke gamble of everything they have against the House (America the Republic). There is a very strong new American Populism which is emerging rapidly as a spontaneous by-product of the world-wide Internet and the Alternative news it carries, which provides truth to the masses for the first time.

Top insiders know all the names of who did the 9/11 inside-job false-flag attacks and are are ready to testify if an independent prosecutor is assigned and a special Grand Jury is called, and appropriate  immunity agreements are offered for “coming clean”. At least one, Steve Pieczenik, MD, Ph.D., (former Assistant Secretary of State and father of many deep cover black ops, and also the main character in many Tom Clancy books) has already gone public and named names and has said he is willing to testify in a Federal Court as to who did it.(2) Obviously Dr. Pieczenik is another great American Hero.

Some top insiders close to to the High Command have suggested that America is so deeply hijacked by the IZCS that it will take some years of the actions of high officials like JCS Chairman General Dempsey and Defense Secretary Chuck Hagel to turn the tide and neutralize the rampant influence peddling of the IZCS over almost every member of Congress and many officials in the Department of Justice and the Alphabets.

Certainly the Department of Homeland Security is now recognized as a major IZCS beach-head inside America and part of a long term plan to establish a foreign controlled IZCS neo-Bolshevik military force inside America to Tyrannize, wage war against, and eventually serially mass murder most Americans.

This is why some top insiders refer to DHS as the New American Gestapo or Stasi.  Some see it now morphing into a New Red Cheka mass-murder machine for dispensing Bolshevik-style Red Terror and mass-murder to Americans.

The Cold War was a great boon to the defense Industry even though it never went hot anywhere but Korea and Vietnam, which were limited to prevent an all out nuclear exchange.

The first Iraq War (aka the Gulf War) under Bush1 resulted from covert trickery using Kuwaiti cross drilling, which was reported to Saddam Hussein by April Glaspie, who convinced him that the USG wouldn’t care if he invaded Kuwait to stop the theft of his oil from his main oil field. The second Mideast war was an Invasion of Iraq and Afghanistan to get even with the alleged perps who supposedly did the 9/11 attacks, but actually never were involved at all.

President Obama is now unwilling to deploy American troops in any major new American land war or massive air bombardment campaign in the Mideast. Nor is the current US Military High Command willing to allow it at this time. In order to appease the so-called Defense Industry and their lobbyists, he has apparently deployed numerous teams of “special operators” and mercenaries but these have been fighting terrorists supported by America, a self-defeating exercise.

He has also continued to deploy drones with air-to-ground missiles to mass murder numerous innocent women, children and non-combatants. All these Mideast and African wars are illegal, unConstitutional, undeclared and unprovoked.  They have been sold to the American People and the Congress based on the BIG LIE that they are preemptive strikes necessary to prevent any more 9/11 attacks.

The need for preemptive strikes to prevent terrorist attacks inside America is an obvious lie for numerous reasons. Anyone who examines all the available evidence on 9/11, including the BBC live TV announcement by Jane Standley that WTC7 fell to the ground 20 minutes before it happened (due to top MI-6 control officers forgetting about American Daylight savings time (too much personal coke use perhaps?).(3)

In addition, if DHS’s main concern is spying on normal Americans who dissent and crushing them because DHS believes they are “domestic terrorists or “potential Domestic terrorists” or “lone wolf” spontaneously emerging domestic terrorists, this obviates any lies about the need for preemptive foreign attacks. The reason?  Because DHS now claims that the emergence of these ordinary lone wolf domestic terrorists inside America is a spontaneous phenomenon, as well as a completely independent problem that has nothing to do with foreign terrorists in the Mideast.

And beside DHS allows open borders, “sanctuary cities” where illegals can not be checked for legal immigration status, given traffic tickets for minor violations, and must be granted drivers licenses and social security cards without any proof of residency. Plus, thousands of Mideast Immigrants are allowed in to America when there is already a shortage of jobs, and the Muslim Brotherhood is invited into the White House to meet with President Obama.(4)

It is obvious that as the major American Defense Contractors who are either owned or controlled by the IZCS have realized that American Mideast war efforts are waning and have worked hard to create their phony War on Terror, first in foreign countries and now in America.

They have worked hard to generate massive public fear in reaction to the 9/11 attacks in order to engender public support and vast expenditures of taxpayer dollars for a large national security market and internal security apparatus, like the Fusion Centers and its specialized assassination teams disguised as corporate or political protection squads, the DHS and the TSA with its Vipr Teams.

This phony, staged War on Terror has been very craftily engineered to be an unending war that will assure perpetual war profits for Defense Contractors and a perpetual supply of artificially created enemies inside America to feed that war. How is this possible you might ask?

This new War on Terror has been socially engineered to provide a continual stream of degradations and provocations against the average American, provoking many in a never-ending stream to resist, and causing them to be labeled dissenters.

Once they have been labeled dissenters they are put on a Department of Homeland Security (DHS) Main Core Terror Watch List, which top insiders know is a targeted assassination list for later eradication of all Freedom-loving Americans who want to restore the American Constitutional Republic.

At present the Main Core list has over ten million Americans on it, and it is growing every day with thousands of new additions. Get a ticket for a driving offense or any arrest (even if later proven innocent) and it is highly likely you will be placed on this Main Core Terror Watch and Assassination list.

If you have a prior drug arrest many years ago or any arrest, it is likely you have already been placed on this list. If a USG web troll or fusion Center Officer comes across any patriotic postings or anything they consider subversive like the East German Stasi, that poster will likely be placed on this list.

Over time these provocations are designed to result in a continuing stream of America dissenters that want to take their Republic back from the zionist hijackers and will meet DHS tyranny and force with the like. Any and all Dissenters are now being defined as “Enemies of the State”.

And anyone who wants to restore the American Republic will also be defined as a “Domestic Terrorist”. DHS is a terrorist group, hand assembled by American/Israeli dual citizen Traitors and is designed to tyrannize, capture and eventually be deployed against Americans to serially mass murder them.  This is why they have been called the New American Gestapo of the Neo-Bolshevik Red Cheka Terror Machine.

If you were a Ron Paul supporter or a Libertarian, you are likely on the Main Core list. If NSA routine scans of any and all of your digital emissions and have picked up enough key trigger words, then you have perhaps already been placed on the List. After all, Marcus Wolfe the former head of the East German Stasi, a vicious torturer and murder of innocent Germans, was hired as a USG consultant to set up DHS two years before he died.(5)

Note the recent admission by US Supreme Court judge Antonin Scalia that it is without question that the Prison Camps now being built by the USG will eventually be used just like they were in WW2 when innocent Japanese Citizens were wrongly captured, completely asset stripped and placed in USG Prison Camps. (6)

President Eisenhower was an insider placed in position by the Rockefellers early in his Military career and eventually propelled into the Presidency by them. But even Ike started being bothered by strong pangs of Patriotism and became alarmed at the undue influence of the Military Industrial complex over Congress. In his final public speech as President, he delivered a warning to Americans.

Ike never imagined that the Israelis would serve as the chief action agent for the City of London zionists and would eventually hijack, buy off, bribe, compromise or honey-trap almost every single member of Congress and also use their vast Central Bankster and manipulated donor funds to hijack almost all American defense and Intel contractors and American communication companies, many of which have been moved to Israel or have been located there in the first place.

Originally his speech included the phrase Military, Industrial, Congressional Complex.  He took out “Congressional” after his political aides informed him that this could end up harming the Republican Party. When he referred to “Military” in the phrase “Military Industrial Complex”, he was actually thinking of the whole new peacetime defense Industry, which was driving the Military Industrial Complex and formation of a permanent armament industry.

Ike became concerned that this permanent armament industry could assert undue influence on the American political process and could hijack American society and harm its spiritual character.

Disarming the public is a key goal of the IZCS for everyone in America but them and their stooges at the DHS and the Alphabets or their militarized police now trained by the ADL.

Many Police Chiefs are taken to Israel on all-paid Anti-Terror training Junkets where they drink the Kool-aid and are subjected to some of the most sophisticated Psi powered and Psychotronic mind-kontrol ever deployed. In years past, many were given lavish gifts and provided personal escorts of their age and choice. Perhaps this practice continues?

Any Tyrannical Government must always get rid of we the people’s guns in order to be able to stay in power and concentrate it. A major goal of any tyranny, like what we have in IZCS-hijacked America now, is to gain maximum power by eliminating (as in serial mass-murdering) all political opponents and dissenters. Doubt this? Then check world history the last couple of hundred years.

The USG and DHS is now ramping up the militarization of the Police of American Cities and Suburbs under DOD Program 1033 under the ‘Transfer of Excess Military Property to Local Police Program”.

According to a video from ‘TheLipTV’, “Over the last decade, we have seen over 5,000 people killed by police in the United States,” when “4,489 soldiers have been killed since the beginning of the Iraq war. Since 9-11, you are 29-times more likely to be killed by a police officer than you are by a terrorist.”(7)

Most local urban and suburban police departments have been “militarized”, that is, received heavy armament including armored cars, MP5 and M-16 fully-automatic machine guns, grenades, grenade launchers and ballistic shields.

We the people are the new enemy of the militarized police. The police were set up to “protect and serve”, but their new mission is to wage war against “we the people” on behalf of the IZCS and the ADL.

Every military force must have a designated enemy. The common American is the new enemy of the now militarized police in their new war against Americans on behalf of the IZCS and the ADL.

Whether they realize it or not, the ADL has trained most police to view most Americans (we the people) as the enemy of the police and the Nation State. Ever attended a police training seminar put on by the ADL? Often they hide who really is running it. It’s the biggest bunch of twisted, sick paranoid crap one can ever imagine, and all designed to make police trigger-happy murderers of any citizen who questions their authority in any way or questions any detainment or arrest. Yes, ADL training is a crafty set of lies that produces trigger-happy cops who believe there is a domestic terrorist hiding behind every bush who want to murder them so the police cannot go home to their family at night.

This paranoid belief system will eventually produce this result as a self-fulfilling prophecy, as police tyranny and trigger-happy police continue to murder the innocent and use grossly excessive force for minor offenses. Almost all police abuse of the citizen is delivered “for your own safety”, when that is another big lie.  It is done for the arrogance and authority complex of the police officer–an artifact of over 25 years of ADL training for your local police, who have almost all sold out to the feds in order to get military weapons and gear.  All in return for signing over jurisdiction to DHS and the Feds.

Police are instructed to “charge up” anyone who questions them in any way, and any slight hesitation must be met with false charges of assault and/or battery towards the officer. Officers are told, an arrestee can beat the rap, but they cannot get out of the “ride” (i.e. the arrest and hassle of it.) They are taught that this deters deviance and crime, when actually it provokes the American people to hate police officers.

The new militarized police have one new main function.  It is to continually provoke law-abiding, honest citizens with acts of selfishness and tyranny in order to “role force” them to act out so that “punishment” can be delivered.  The goal, especially with inner urban kids is to make sure they are sold all the drugs they want, in order to dirty them up and get them into the system for life. Big prisons are a private business–a very big business–and quotas or guaranteed imprisonment rates are in place to reduce costs.

Since the IZCS is actually functioning as a neo-Bolshevik political block with East German Stasi and Nazi undertones, this reveals the actual goal of DHS–to serially mass-murder all American dissenters and political opponents. Doubt this?  Then consider the purchase of over 2 Billion 40 Caliber hollow-point rounds and 7,000 M-16 fully-automatic (real assault rifles, not the mere look-a-like AR-15) and thousands of armored vehicles and armored booths, raised spy-towers and grenade launchers.(8) Many of these armored vehicles have been given to local police who have Police Chiefs who are Traitors to America the Republic in exchange for complete submission to Federal Jurisdiction of DHS.

Some of these traitors are just stupid and overly impressed by Feds or DHS Spooks, others have been paid off in very large cash donations (hundreds of thousands of USD in military duffel bags, untraceable CIA drug profits. Some have been sexually compromised by Pedophile or Honey Traps and then blackmailed into submission. Some have succumbed after being threatened or having their families threatened. This is the lowest scum-bag manipulation (aka Humint) ever deployed, and it is everyday stock and trade for the IZCS, the world’s biggest sexual compromisers, and pedophile and sex-slave operators.

Lessons of History: Any serious study of History quickly shows that war is a vehicle for a nation’s leaders to maintain control over their nation-states. The infamous Iron Mountain Report gave an inside glimpse of how the super-elite criminal Psychopaths running America thought about the need for ongoing war or a suitable state crisis to unify the society and solidify their control over society.

Wars are craftily engineered by criminal super-elites who rule nation-states and their advisers. There are various, crafty ways for a nation’s leaders to covertly start wars. The well-established standby is to stage False-Flag attacks and then wage war on the nation state or entity that you have framed for the attack that you did.

Another way to create a terrorist with a long and successful track record is to capture abandoned children in Mideast Countries, provide for their daily needs, while mind-kontrolling them to become terrorists with psychotic suicidal delusions of revenge toward what has been identified to them as their religious enemy which needs destruction to please their god.

The British, the Israelis, and the Saudi are experts at this, and American Taxpayers have unknowingly provided a large portion of the funding for this. One trick well known among intel insiders is the practice of acts of terror against the nation of the mind-kontrolled children to create an enemy for them to later attack in revenge.

Lots of American Taxpayer dollars were covertly dispensed to create and finance terrorists for future Mideast wars. American Intel has spent a great deal of money paying others,  such as the Israelis, to do this. Otherwise, American Intel has not been very successful themselves.  Their only real success is their arming, funding and training of the Mexican Drug Cartels and the training and deployment of the disgusting mass-murdering death squads in Central and South America, who murdered over one hundred thousand innocent women, children and young men.(9)

The 9/11 attacks were an inside job by the USAF and the IZCS. The staged Gladio-style False-Flag attack was the choice selected for the attack on the Twin Towers in NYC and the Pentagon in Washington, DC, on 9-11-2001. This attack was done by the USAF, under the authority of a zionist-controlled Criminal Cabal inside the JCS and the Secret Shadow Government (SSG).(10)

The 9/11 attack was planned, set up and run by NeoCon top Policy-Makers, Israeli Intel and their stateside Sayanims, utilizing a small criminal cabal inside the USAF, NORAD and the JCS. These are facts that can no longer be disputed by any reasonable person who has examined all the available evidence.

And it is exceedingly clear to any reasonable person who examines the pre-announcement of WTC-7 destruction that the whole attack was pre-scripted in London and Israel, and that WTC-7 was wired in advance with conventional demolition charges.

Typically, it takes a considerable amount of time and labor to wire up a building, which suggests complete access at the security level.  This means that since it was a federalized building, with CIA and NYC Emergency Center occupants, building security had to be involved one way or another. And now that it has been proved that WTC-7 was wired up beforehand and demo’ed on 9-11, this means the Twin Towers had to have been pre-wired, too.

The War on Terror is obviously a Phony. But it has been the greatest boon to the American Defense Complex ever, with many times more net American Taxpayer dollars spent on this war than any other war in history, including WW2 or the Vietnam War.

Another way to establish a war is to create and fund so-called foreign terrorist groups. This is a costly exercise that take years and can involve as much work as fighting a war.  Yes, creating terrorist groups is very hard and expensive work.

But enemies for necessary wars can be created if you have the technological help of a nation that has hundreds of years experience in creating its own enemies. This nation is the City of London (Financial District), a separate nation state like the Vatican, located within England.

There is a reason England has been referred to as “Perfidious Albion” for centuries. They have been known for their ability to instigate chaos inside nations they want to control by their standard well-developed strategy of “Divide and Conquer”. They are experts at creating long term provocations between different nations that have competing economic interests.

They do this in order to establish a beach-head from which to control the removal of natural resources and accrued wealth.

Remember the Opium Wars (Boxer Rebellions) where England brought opiate addiction to China as a covert act of war in order to recover all the silver and gold paid to import Tea, spices and silk from China? This was low intensity (covert) warfare that twice led to a short hot war.

The creation of the nation state Israel was created to serve as a long term provocation for numerous Mideast perpetual wars. This is why the Balfour Declaration was made, why the Nazi sent the “low Jews” to the labor camps, while the “High Jews” were able to either emigrate elsewhere or become collaborators like George Soros.

This is why the City of London created the New Israel and took land away from the Palestinians to set up a nation of Khazarian Judaic converts (aka “fake Hebrews”), a racially paranoid group mind-kontrolled to believe the delusion that they were of ancient Abrahamic Hebrew Blood.

The IZCS believes in preemptive strikes against Goyim and their institutions. Judaics have also been mind-kontrolled by Zionists (many of whom are not Judaics at all) to believe that they must hijack the American political system to preemptively crush Christianity and American Goyim Culture.

And that if they didn’t succeed in this, they would be persecuted again, just like what they call the “holocaust”–translated from Old English as “a fiery sacrifice”.

This philosophy of striking first and eliminating the Goyim to prevent another “holocaust” from ever occurring” is a Bolshevik ideology based on the “End Justifies the Means”.

This paranoid strike-first obsession will produce push back and persecution eventually, thus serving as a self-fulfilling prophecy. Of course the Zionists who control Talmudic, Noahide Judaism know that the 6-million-dead figure is untrue, because this had appeared in the late 1800′s andearly 1900′s in Judaic literature long before the work camps of WW2.

New Genetics research exposes a vast, paranoid race-based delusion. Recent Johns Hopkins genetic research has shown conclusively that approximately 80% of the Palestinians are of Hebrew (Abrahamic) bloodlines, and approximately 90% of Judaic converts living in greater Israel are not of ancient Hebrew (Abrahamic) bloodlines. Thus, the world’s greatest anti-Semites appear to be Israelis who have stolen Palestinian land and continue to do so against all UN rulings and International Law.

The nation of Israel was set up as the private nation state and Tribal Intel front for the City of London Zionist private Central Banksters, to serve as a beach-head to control the production and distribution of Mideast oil. This delusion that the Khazarian Judaic converts were God’s Chosen People (ancient Hebrews from the Ten Tribes) was then en-cultured into these Judaics who were sent to Palestine and armed so they could use terrorism to expand their region of control.

Greater Israel has no real boundaries and is ever expedient, as Israeli militants keep taking land and murdering unarmed Palestinians.

A serious spell, a racial delusion of superiority has been cast on many Judaics no matter where they live, but especially so among those living in greater Israel, where the Luciferian Hex Flag flies. Whether true or not, the flag signifies the merger of demonic fallen angel Beast-Bloodlines from above, bred with Human female bloodlines below.

If we accept this Hex Flag at face value, does this mean that the top Zionists running the IZCS are perhaps alien/human hybrids, or at least claim to be in their own secret ceremonies that Stew Webb has exposed numerous times in articles and radio appearances over many years?

It is obvious that the IZCS has hijacked the US Department of State and the US Military Defense Complex as well as Congress. Listen to what Kay Griggs had to say about this.  She was married to a top USM officer and mind-kontrolled “wetboy” who became out of control and beat her and then tried to have her shut up. He and/or his controllers serious stalked and harassed Kay Griggs for years.

She went to live with Sarah McClendon for protection and was interviewed by Pastor Rick Strawcutter, which probably raised her profile so much that it saved her life.  Kay is another Great American Hero and is a courageous standup person, one of the best you could ever meet anytime, anyplace. If you get a chance, be sure and listen to her 8-hour video affidavit with Pastor Rick Strawcutter, who is another Great American Hero. You will be amazed and angered at who has been running the USG and the Military.(11)

Kay’s video affidavit is packed with insider secrets known only by top Intel insiders. How much do you want to know about what is really going on in the background? How much do you dare to pull the curtain back to expose the Wizard Of Oz (as in Ounce)? You will need a great deal of courage to handle what Kay Griggs reveals. By the way, a great deal of her testimony has been cross-corroborated by experts.  Any errors she makes are minor and not directly related to her main claims.

Two sides of the same coin: Of course those on the inside of the Ruling Cabal know that Nazi-ism and Zionism are two sides of the same coin and run by the City of London Central bank controllers. This entity is the Old Black Nobility (OBN), which prefers to stay in the background.

The IZCS controls Private Central Fiat, Fractional Reserve Banking: This reality that the IZCS owns and controls private Central Banking means that they have access to and can utilize Babylonian Money-Magick to make the money they need to control the USG officials and Congress from nothing.  This access provides vast sums of money in seemingly endless quantities.  Thus, they have access to all the cash they need to buy, own, compromise or blackmail almost every single Congressman/woman and Senator in America.

The serious down-side of this system of Babylonian Money-Magick is that it is based on fiat or fake-money with nothing but debt behind it. Actually this debt is imaginary, but has a stranglehold on most of the members of the societies it has hijacked. But it cannot go on without catastrophic readjustments, which will occur at some point.

A worldwide Web of Debt: The private Central Banksters in America have been so adept and successful at extracting wealth in America and all over the world, replacing it with debt, that nearly the whole world is now engulfed in extreme debt.

And this debt has now reached the point it cannot be paid off. This of course is the IZCS’s age-old plan which will result in massive chaos that engulfs the world and destroys all social systems, family systems, sex roles, and systems of government.

After this destruction of conventional society occurs, it is expected by the IZCS top leadership that a pure Luciferian NWO System will arise from the globalist framework they have put in place.  They expect this NWO System emerging from the ashes to be their Phoenix, like the legendary Phoenix of Greek and Roman mythology.

All this tidal wave of debt is phony and a big charade.  If all the people of the world unite, nationalize their monetary systems and declare all debt null and void, and if they assign all such debt directly to Central Banksters responsible for creating it, prosperity to “we the people” can return like it did to the Colonists who left England.

Babylonian Money-Magick has been used to create a debt based economy.  It does this by producing “onerous usury” and allows the easy transformation of “all the money created from nothing which is worth nothing at face value” into the vast amounts of ever-increasing wealth.  This wealth–fiat money–is covertly stripped from the common man these Banksters provide the money for and use as a means to extract real value and wealth from.

The Zionist IZCS vehicle used to gain control over almost every single member of Congress and to buy, compromise and control almost every top USG official and Judge, is the 70,000+ K Street Lobbyists, AIPAC and others who distribute the money to their marks, often through campaign contributions, cash to offshore accounts, and various other expensive luxury perks, such as ridiculously high honorariums for meaningless propaganda speeches.

And AIPAC, the ADL, the SPLC and the like are also zionist tools of espionage against America the Republic.

They should all be investigated by the FBI and fully prosecuted and convicted and sentenced for espionage by the Department of Justice. Note, espionage in many cases is a Capital Crime.

If the Rosenbergs were prosecuted, convicted and executed for their espionage against America, why should these IZCS Cutouts go free without identification and full prosecution?

These entities are really Intel fronts for espionage against America the Republic on behalf of the IZCS which includes the City of London zionist Central banksters, Israel, American NeoCons, and Israeli-American dual citizens who have betrayed America, putting Israel first over America.

Vast Funding for zionist Cutouts. These entities receive vast funding from the zionist Central Banksters and from the wealthy Judaic businessmen they shake-down or manipulate for large donations by playing on their paranoid tribal delusions.

These tribal delusions are that donations are necessary to prevent excessive antisemitism and future persecutions or “holocausts” by Goyims and Christians.

Many Judaics in America and elsewhere have been en-cultured with the false ideation that Nazi-ism was a Christian phenomena and Christians and Goyim must be destroyed.

This of course this is as far from the truth as possible because Hitler was a British Agent and Nazi-ism was created by the Tavistock Institute and the City of London Central Banksters and a counter-force to the Bolshevism they created and deployed in Russia in 1917.

What does the International Zionist Crime Syndicate (IZCS) run out of the City of London through its main Cutouts Israel and the hijacked USG attain? Obviously the IZCS’s unlimited funds and the fact it owns and/or controls almost every member of Congress and most USG officials and Judges, means that the ICS has been able to determine USG Policy.

It can do this because it owns and/or controls all USG top Policy-Makers, most of whom just happen to be outside of the visible USG and within the Secret Shadow Government (SSG).

Obviously the crimes of the IZCS and their espionage fronts like AIPAC, the ADL, SPLC and the like against the American Republic are far worse than the Rosenbergs.

Listed below are some of the IZCS crimes against America:

1. The NSA and all American Intel has been completely hijacked by the IZCS and all NSA intel data goes directly to Israeli Defense Contractors and Israeli communication Corporations that process all American phone calls and data transmissions. This means that the Five Eyes International Intel System is really a Six Eyes System controlled by Israeli Intel entities and proprietaries.

Thus, America has no real Intel, and Israeli Intel has control over all American politicians, judges and officials by use of this Intel for human compromise, blackmail and sophisticated mind-kontrol operations. Any time factions within American Intel agencies (there are 37 and growing) form opposition to the IZCS, this is readily discovered through Israeli Intel intercepts of NSA raw Intel and actions to neutralize such efforts are quickly deployed–whatever is required.

The conclusion here is that America no longer has any real Intel of its own–none at all–it is all compromised and hijacked by Israeli and City of London Cutouts and contractors.

2. Because the IZCS has hijacked all American Intel directly from NSA feeds, the IZCS has a long history of stealing American intellectual property and providing it to their corporations. The IZCS can also hijack American corporate bids and defeat them repeatedly until many companies go out of business.

3. The IZCS has compromised almost every single member of Congress, US Supreme Court Judges, most Federal, and almost every single USG official and American Intel Director.

4. The IZCS’s new DHS is a zionist terrorist front, a new Internal American Army that has been deployed against YOU as their NEW ENEMY. The IZCS has created and deployed DHS as the New American Stasi and a New American Neo-Bolshevik Red Cheka. It is controlled by an Israeli-American dual citizen who made millions of USD from selling unshielded X-ray machines to the TSA, which is creating numerous cancer clusters among TSA officers.

5. The principal goal of the IZCS in America is to deploy DHS to tyrannize and degrade Americans and then eventually to start a live “shoot to kill” war against ordinary Americans who organize to take their government back and restore the American Constitutional Republic. This tyranny by DHS is planned to culminate in serial mass-murder of up to 80% of Americans–one way or another.

6. The IZCS has set up and deployed AIPAC, the ADL, the SPLC and others to serve as agents of espionage inside America, to work to destroy its institution of government, dirty up Americans and to destroy the American Family, America’s language borders and culture and to destroy Christianity and Deism in general.

7. The IZCS has hijacked top factions in the CIA, DEA and other American Intel and uses them to traffick illegal narcotics and drugs into America to raise money for deep-cover covert ops.

8. The IZCS has compromised almost every major Urban and Suburban police Department, coercing them to sign secret transfer of jurisdiction agreements giving the Feds, DHS and the Fusion Centers complete jurisdiction in any matter they choose.  In return, they are bribed with “stolen” war materials, machine guns, rounds, armored cars and, even in some cases, grenade launchers.

9. The IZCS has stolen numerous loads of nuclear materials from US DOD contractors and refiners for their Dimona Plant and nuclear storage center.

10. The IZCS has used NSA-provided intel to murder hundreds of witnesses to their crimes and federal Whistleblowers. The rest that they don’t murder are watched and often become victims of targeted harassments, placed on DHS and Fusion Center “Terror Watch Lists”, “No-Fly” Lists and “No work lists”. Take the example of Ronald Reagan’s Secret Agent, the Great American Hero Lee Wanta who was instrumental in “bringing down” the Soviet Union. Lee Wanta has been wrongfully imprisoned, tortured, and endures ongoing harassment.

Or consider Mark Novitsky, another Great American Hero who refused to do wrong and coverup crimes while working for an NSA contractor. Both of these American Heroes have paid a terrible price for obeying the law and for putting the welfare of the American People first.

11. The IZCS has hijacked the America Monetary Production and Distribution System and transformed Americans into debt-slaves, drastically reduced the Middle Class and the standard of living, and done this by massive asset-stripping of American wealth and prosperity.

12. The IZCS has used its Cutouts to debase American culture, take the God of our Founding Fathers out of the schools and institutions where they had certain Bible verses and phrases etched in stone, destroy traditional male and female sex roles, destroy the family, promote sexual perversion, promote promiscuity and sexual irresponsibility and addiction, promote diversity and political correctness and illegal immigration and multi-culturalism.

13. The IZCS has completely compromised all of the Major Mass media, transforming it into a propaganda dispenser for the USG and the Central Banksters which are completely under their control. Thus the Major media is now the Controlled Major Mass Media (CMMM).

14. The IZCS has hijacked American seed companies and most major food processors and is in the process of deploying sophisticated GMO’s which will, over time, radically increase the death rate of Americans.

15. The IZCS has hijacked Big Pharma and Big medicine and has used it to deploy vaccines containing monkey viruses like SV40 and numerous harmful adjuvants like squalene and aluminum or formaldehyde, as well as so-called preservatives like ethyl mercury.

16. The IZCS has hijacked many large Insurance Companies and used them for its own designated purposes.

17. The IZCS has deployed contract aircraft through their hijacked intel groups like the CIA that are spraying toxic weather and eugenic substances in the atmosphere. They have also been able to covertly add these toxic substances to ordinary jet fuel.

Numerous samples of these substances have been collected by researchers and scientists who have had them analyzed.  What they found were toxic levels of nano-particulized aluminum, barium slats, Hemophilus Influenza, red blood cells, white blood cells, toxic molds, and other strange fiber like substances and compounds.

18. The IZCS has used its vast criminal networks and resources to launder its drug money by buying up large real estate entities and banks and is able to finance almost every new major corporate building with laundered drug money.

19. The IZCS has used a great deal of its money from illegal drug trafficking to build deep underground military bases (DUMBS). Some of these bases are claimed by top insiders to be joint ventures with alien entities and have special genetic labs involved in the development of alien ET/human hybrids.

20. The IZCS is the world’s top Mind-kontroller.  It has used hijacked American Intel and its defense contractors to develop and deploy advanced high technology for psychotronic, direct brain entrainment and sound-based subliminal mind-kontrol.

21. Israel used advanced mind-kontrol on those who accept its all-paid junkets. Visitors end up drinking their special Kool-aide and are hit with sophisticated psychotronics, becoming significantly mind-kontrolled to operate as functional zionists without even being aware of it.

22. The IZCS has created what they call the federal family. They have done this by creating Fusion Centers, the DHS, the TSA and numerous armed (previously unarmed) agencies like the Department of Education. Unduly large salaries and extremely liberal benefits have been provided, as well as a special anointing with authoritarian powers to kill with very little accountability if any, due to the War on Terror.

Many of these federal Family folks have been mind-kontrolled by shoulder-held constant on pulsed beam microwave radios and other highly advanced psychotronics, which increases their tendencies to tyrannize and become violent with the public and minimizes their ability to control violent impulses which may crop up.

23. The IZCS has militarized local police departments and many Sheriff’s departments. Their ADL provides most of the police training and drives a hard line against any public dissent, describing it as “domestic terrorism”. It controls what the Fusion Centers and DHS put out as war propaganda which labels the public as “Domestic Terrorists”.

Here is the first part of one of their confidential lists of Domestic Terrorists or Suspected Domestic Terrorists:  Catholics, Evangelical Christians, Veterans, Libertarians, Constitutionalists, Tax protestors, Gun owners…..These reports of course are pure ADL propaganda lies and complete smear jobs, all intended to provoke police and Federal Family officers to tyrannize and easily become violent with innocent ordinary Americans or anyone who decides to peacefully protest, an American Constitutional Right.

Remember that the operational goal of the top Policy-Makers who are tools of the IZCS is to provoke a full scale shooting war between ordinary Americans and their police and Federal family Members such as DHS.

Conclusion:  The IZCS has hijacked America and has deployed numerous weapons against it now culminating in a phony, staged War on Terror, and if you are an American or live in America, one way or another YOU will soon become THEIR NEW ENEMY. Yes, from here on out if you live in America, you are the designated enemy in this new War On Terror.

If you are a member of the federal family, it is suggested that you read and study up on the Night of the Longknives (Operation Hummingbird) and the various purges under Lenin, Stalin and Mao. Maybe you should reconsider the oath you took to UPHOLD the US Constitution from ALL ENEMIES, FOREIGN and DOMESTIC.

Now for some good news about all this.  Despite how bleak this all seems it is far from hopeless and American are beginning to wake up in mass. This is due to the worldwide Internet and the massive dissemination and diffusion of the alternative news.  Once facts are published they sink into the hearts of “we the people” with a certain resonance that makes them take hold.

It’s almost instinctive how truth sticks like glue in people hearts and minds and spreads like wildfire all around the Earth. At least 1% of the American population has woken up. Some estimates are 11%. Proof of this is the massive first time gun buyers, the massive sales of high powered handguns, rifles and 12 gauge shotguns and massive ammo sales.

Guns and ammo have literally been flying off the shelves the last several years and there have been serious ammo shortages due to the massive DHS and USG stockpiling of 40 Caliber Hollow Pints and M-16 ammo rounds.

Once 12% of the population wakes up a critical mass turning point will spontaneously occur and through various very strange mass societal changes will occurs and new very powerful, unstoppable populism will emerge and the IZCS will be driven out.

If they are stupid enough to take us into a live shooting war, Internal Civil War with mass killing, the public will suffer great losses but the Federal Family will split and it and the IZCS and any of their forces will be defeated.

All wars are always won by what is in the hearts and minds.  In America the American Spirit lives and is getting stronger every day. Soon the foreign filth and their Cutouts run by the Kingpins from City of London and Israel, the perps that have hijacked America, the IZCS, will be completely exposed, stopped, or routed out, one way or another.

And there is good evidence that many retired Intel Cowboys have gone back to work to bring the IZCS Beast down and destroy its grip on American Intel and private Central Banking. Some of the covert operators have long records of success and can create and use numerous different identities.

Many of these Intel Cowboys can use make up and make their own credentials to impersonate officers, draw military and USG paychecks from multiple sources, all at the same time and hack into any computer system anywhere in the USG or American Intel, anywhere anytime. Most of them just did not realize that the IZCS has taken control because of unlimited money provided by zionist Central Banksters and Judaic supporters.

And the best news of all is that more than a few seasoned Intel Cowboys that served the Bush Cabal at its center as well as the IZCS, have now woken up, pulled away from the Bush cabal and are targeting the IZCS with deep cover covert ops that would make your hair stand on end if you were allowed to know.

Some of these Intel Cowboys have now admitted that they were kept so narrowly compartmented that they did not realize the whole picture until the Internet and the numerous Federal Whistle-blowers coming forward and spilling the beans. the simple fact is this, the worldwide Internet and the alternative news it provides spreads truth like a wildfire that cannot be put out even with the application of military force.

The Internet is the New Gutenberg Press, the Achilles Heel of the IZCS.  The Internet will turn out to be the greatest trick in history played on the IZCS by the young men at Drapa.  They sold the Internet to the IZCS and its SSG promising the greatest spying and surveillance system imaginable.  Yes the IZCS got much of what was promised but also a very big hidden surprise which assures their complete exposure and destruction, piece by piece. And this disassembling of the IZCS is already well under way.

The IZCS is now in its death throes and is like a rabid, cornered dog.  That makes it very dangerous for the next year or two until it is completely defanged which is coming. If they use the Samson option which they have been threatening numerous nation-states with (they already used it on japan with the nukes planted in the sea bed and in the security camera on site because Japanese turned against them).

New factions within the Military High Command and the USN have already taken note and are working carefully in the background to defang Dimona by utilizing secret satellite activated back-doors in various hardware circuits.

During the height of the bush Cabal (Bush1) those Intel Cowboys that did know were arrested and jailed on trumped up charges to discredit any possible testimony before Congress or in the courts. Now that many have been informed of what really happened on 9-11-01, they are hopping mad that America has been hijacked and the Constitution and its Bill of Rights, and the Rule of Law has been suppressed and ignored by this world’s largest criminal cabal.

The IZCS attacks on America on 9-11-01 have proved to have been a “going for broke” attempt to build a expanded Israeli in greatest intended form. We now know that it was the greatest and final reckless mistake of Israel so far. Even far worse than Israel’s False-Flag attack on the USS Liberty in their attempt to draw America into a Mideast War at the time which even President Johnson, their crypto Judaic stooge refused.

And now many Americans have finally been informed that the Murrah Building attack as well as the first NYC Twin Towers attack using a 55 drum of cyanide stolen from Louis Champon’s Natural Cherrie Flavoring Plant in Boca Raton, Florida, financed by Dr. Ishan Barbouti, the IZCS Cutout that has died at least three times and always come back to life.

As few know, only the top NeoCons 911 Planners, Dr. Barbouti rose again and came back to life to assist with many of the 9/11 attacks subplots which were designed to provide numerous false leads. A few of the most Patriotic Intel Cowboys who have “traveled” very close to the very “top of the pyramid” now believe that Israel provided the anti-matter positron micro-nukes which were installed in the Twin Towers elevators approximately every ten floors.

Most retired Intel Cowboys had previously thought Israel was a supportive Intel partner but didn’t realize that Israel murdered 135 Americans on the Liberty ship as a False-Flag attack and also murdered another 3,000 humans being in NYC and at the Pentagon on 911, assisted by Traitors within the USAF, NORAD and the JCS.

Now that these Intel Cowboys know the truth, they have woken up and back at work serving America’s true “National Security”. I don’t know exactly what they will do but I would expect some very, very crafty covert moves to expose, drive the IZCS out of America or demo it irreparably if necessary.

References:

(1) http://www.veteranstoday.com/2013/11/10/was-ronald-reagan-the-last-duly-elected-president/

(2) http://www.youtube.com/watch?feature=player_detailpage&v=bU2n1UiY3I0

(3) Jane Standley BBC announcer, http://www.youtube.com/watch?feature=player_detailpage&v=ltP2t9nq9fI

(4) http://freebeacon.com/muslim-brotherhood-leader-meets-obama-in-white-house/

(5) http://thecommonsenseshow.com/2013/04/19/dismantle-the-department-of-homeland-stasi/

(6) http://www.informationclearinghouse.info/article37553.htm

(7) http://americanfreepress.net/?p=15289

(8) http://rt.com/usa/dhs-ammo-investigation-napolitano-645/

(9) http://www.washingtontimes.com/news/2011/aug/11/was-cia-behind-operation-fast-and-furious/

http://www.corbettreport.com/the-cia-and-the-drug-trade-eyeopener-preview/

(10) http://ehpg.wordpress.com/israel-did-911/

(11) Part 1: http://www.youtube.com/watch?feature=player_detailpage&v=1pyMMfqS6Kc

Part 2: http://www.youtube.com/watch?feature=player_detailpage&v=vdv8g6k2AP8

Part 3: http://www.youtube.com/watch?feature=player_detailpage&v=IJrKFkZ_uMo

Part 4: http://www.youtube.com/watch?feature=player_detailpage&v=U8r8-AHMgsI

Note: Kay Grigg’s video affidavit has numerous other backup versions.  Some have more than four parts and some additional material lost due to editing.

Source: Preston James | Veterans Today

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