Irreversible Decline?

Did the U.S. and the Saudis Conspire to Push Down Oil Prices?

“Saudi oil policy… has been subject to a great deal of wild and inaccurate conjecture in recent weeks. We do not seek to politicize oil… For us it’s a question of supply and demand, it’s purely business.” – Ali al Naimi, Saudi Oil Minister

“There is no conspiracy, there is no targeting of anyone. This is a market and it goes up and down.” – Suhail Bin Mohammed al-Mazroui, United Arab Emirates’ petroleum minister

“We all see the lowering of oil prices. There’s lots of talk about what’s causing it. Could it be an agreement between the U.S. and Saudi Arabia to punish Iran and affect the economies of Russia and Venezuela? It could.” – Russian President Vladimir Putin

Are falling oil prices part of a US-Saudi plan to inflict economic damage on Russia, Iran and Venezuela?

Venezuelan President Nicolas Maduro seems to think so. In a recent interview that appeared in Reuters, Maduro said he thought the United States and Saudi Arabia wanted to drive down oil prices “to harm Russia.”

Bolivian President Evo Morales agrees with Maduro and told journalists at RT that: “The reduction in oil prices was provoked by the US as an attack on the economies of Venezuela and Russia. In the face of such economic and political attacks, the nations must be united.”

Iranian President Hassan Rouhani said the same thing,with a slightly different twist: “The main reason for (the oil price plunge) is a political conspiracy by certain countries against the interests of the region and the Islamic world … Iran and people of the region will not forget such … treachery against the interests of the Muslim world.”

US-Saudi “treachery”? Is that what’s really driving down oil prices?

Not according to Saudi Arabia’s Petroleum Minister Ali al-Naimi. Al-Naimi has repeatedly denied claims that the kingdom is involved in a conspiracy. He says the tumbling prices are the result of “A lack of cooperation by non-OPEC production nations, along with the spread of misinformation and speculator’s greed.” In other words, everyone else is to blame except the country that has historically kept prices high by controlling output. That’s a bit of a stretch, don’t you think? Especially since–according to the Financial Times — OPEC’s de facto leader has abandoned the cartel’s “traditional strategy” and announced that it won’t cut production even if prices drop to $20 per barrel.

Why? Why would the Saudis suddenly abandon a strategy that allowed them to rake in twice as much dough as they are today? Don’t they like money anymore?

And why would al-Naimi be so eager to crash prices, send Middle East stock markets into freefall, increase the kingdom’s budget deficits to a record-high 5 percent of GDP, and create widespread financial instability? Is grabbing “market share” really that important or is there something else going on here below the surface?

The Guardian’s Larry Elliot thinks the US and Saudi Arabia are engaged a conspiracy to push down oil prices. He points to a September meeting between John Kerry and Saudi King Abdullah where a deal was made to boost production in order to hurt Iran and Russia. Here’s a clip from the article titled “Stakes are high as US plays the oil card against Iran and Russia”:

“…with the help of its Saudi ally, Washington is trying to drive down the oil price by flooding an already weak market with crude. As the Russians and the Iranians are heavily dependent on oil exports, the assumption is that they will become easier to deal with…

John Kerry, the US secretary of state, allegedly struck a deal with King Abdullah in September under which the Saudis would sell crude at below the prevailing market price. That would help explain why the price has been falling at a time when, given the turmoil in Iraq and Syria caused by Islamic State, it would normally have been rising.

The Saudis did something similar in the mid-1980s. Then, the geopolitical motivation for a move that sent the oil price to below $10 a barrel was to destabilize Saddam Hussein’s regime. This time, according to Middle East specialists, the Saudis want to put pressure on Iran and to force Moscow to weaken its support for the Assad regime in Syria… (Stakes are high as US plays the oil card against Iran and Russia, Guardian)

That’s the gist of Elliot’s theory, but is he right?

Vladimir Putin isn’t so sure. Unlike Morales, Maduro and Rouhani, the Russian president has been reluctant to blame falling prices on US-Saudi collusion. In an article in Itar-Tass, Putin opined:

“There’s a lot of talk around” in what concerns the causes for the slide of oil prices, he said at a major annual news conference. “Some people say there is conspiracy between Saudi Arabia and the US in order to punish Iran or to depress the Russian economy or to exert impact on Venezuela.”

“It might be really so or might be different, or there might be the struggle of traditional producers of crude oil and shale oil,” Putin said. “Given the current situation on the market the production of shale oil and gas has practically reached the level of zero operating costs.” (Putin says oil market price conspiracy between Saudi Arabia and US not ruled out, Itar-Tass)

As always, Putin takes the most moderate position, that is, that Washington and the Saudis may be in cahoots, but that droopy prices might simply be a sign of over-supply and weakening demand. In other words, there could be a plot, but then again, maybe not. Putin is a man who avoids passing judgment without sufficient evidence.

The same can’t be said of the Washington Post. In a recent article, WP journalist Chris Mooney dismisses anyone who thinks oil prices are the result of US-Saudi collaboration as “kooky conspiracy theorists”. According to Mooney:

“The reasons for the sudden (price) swing are not particularly glamorous: They involve factors like supply and demand, oil companies having invested heavily in exploration several years ago to produce a glut of oil that has now hit the market — and then, perhaps, the “lack of cohesion” among the diverse members of OPEC.” (Why there are so many kooky conspiracy theories about oil, Washington Post)

Oddly enough, Mooney disproves his own theory a few paragraphs later in the same piece when he says:

“Oil producers really do coordinate. And then, there’s OPEC, which is widely referred to in the press as a “cartel,” and which states up front that its mission is to “coordinate and unify the petroleum policies” of its 12 member countries…. Again, there’s that veneer of plausibility to the idea of some grand oil related strategy.” (WP)

Let me get this straight: One the one hand Mooney agrees that OPEC is a cartel that “coordinates and unify the petroleum policies”, then on the other, he says that market fundamentals are at work. Can you see the disconnect? Cartels obstruct normal supply-demand dynamics by fixing prices, which Mooney seems to breezily ignore.

Also, he scoffs at the idea of “some grand oil related strategy” as if these cartel nations were philanthropic organizations operating in the service of humanity. Right. Someone needs to clue Mooney in on the fact that OPEC is not the Peace Corps. They are monopolizing amalgam of cutthroat extortionists whose only interest is maximizing profits while increasing their own political power. Surely, we can all agree on that fact.

What’s really wrong with Mooney’s article, is that he misses the point entirely. The debate is NOT between so-called “conspiracy theorists” and those who think market forces alone explain the falling prices. It’s between the people who think that the Saudis decision to flood the market is driven by politics rather than a desire to grab “market share.” That’s where people disagree. No denies that there’s manipulation; they merely disagree about the motive. This glaring fact seems to escape Mooney who is on a mission to discredit conspiracy theorists at all cost. Here’s more:

(There’s) “a long tradition of conspiracy theorists who have surmised that the world’s great oil powers — whether countries or mega-corporations — are secretly pulling strings to shape world events.”…

“A lot of conspiracy theories take as their premise that there’s a small group of people who are plotting to control something, to control the government, the banking system, or the main energy source, and they are doing this to the disadvantage of everybody else,” says University of California-Davis historian Kathy Olmsted, author of “Real Enemies: Conspiracy Theories and American Democracy, World War I to 9/11″. (Washington Post)

Got that? Now find me one person who doesn’t think the world is run by a small group of rich, powerful people who operate in their own best interests? Here’s more from the same article:

(Oil) “It’s the perfect lever for shifting world events. If you were a mad secret society with world-dominating aspirations and lots of power, how would you tweak the world to create cascading outcomes that could topple governments and enrich some at the expense of others? It’s hard to see a better lever than the price of oil, given its integral role in the world economy.” (WP)

“A mad secret society”? Has Mooney noticed that — in the last decade and a half — the US has only invaded nations that have huge natural resources (mainly oil and natural gas) or the geography for critical pipeline routes? There’s nothing particularly secret about it, is there?

The United States is not a “mad secret society with world-dominating aspirations”. It’s a empire with blatantly obvious “world-dominating aspirations” run by political puppets who do the work of wealthy elites and corporations. Any sentient being who’s bright enough to browse the daily headlines can figure that one out.

Mooney’s grand finale:

“So in sum, with a surprising and dramatic event like this year’s oil price decline, it would be shocking if it did not generate conspiracy theories. Humans believe them all too easily. And they’re a lot more colorful than a more technical (and accurate) story about supply and demand.” (WP)

Ah, yes. Now I see. Those darn “humans”. They’re so weak-minded they’ll believe anything you tell them, which is why they need someone as smart as Mooney tell them how the world really works.

Have you ever read such nonsense in your life? On top of that, he gets the whole story wrong. This isn’t about market fundamentals. It’s about manipulation. Are the Saudis manipulating supply to grab market share or for political reasons? THAT’S THE QUESTION. The fact that they ARE manipulating supply is not challenged by anyone including the uber-conservative Financial Times that deliberately pointed out that the Saudis had abandoned their traditional role of cutting supply to support prices. That’s what a “swing state” does; it manipulates supply keep prices higher than they would be if market forces were allowed to operate unimpeded.

So what is the motive driving the policy; that’s what we want to know?

Certainly there’s a strong case to be made for market share. No one denies that. If the Saudis keep prices at rock bottom for a prolonged period of time, then a high percentage of the producers (that can’t survive at prices below $70 per barrel) will default leaving OPEC with greater market share and more control over pricing.

So market share is certainly a factor. But is it the only factor?

Is it so far fetched to think that the United States–which in the last year has imposed harsh economic sanctions on Russia, made every effort to sabotage the South Stream pipeline, and toppled the government in Kiev so it could control the flow of Russian gas to countries in the EU–would coerce the Saudis into flooding the market with oil in order to decimate the Russian economy, savage the ruble, and create favorable conditions for regime change in Moscow? Is that so hard to believe?

Apparently New York Times columnist Thomas Freidman doesn’t think so. Here’s how he summed it up in a piece last month: “Is it just my imagination or is there a global oil war underway pitting the United States and Saudi Arabia on one side against Russia and Iran on the other?”

It sounds like Freidman has joined the conspiracy throng, doesn’t it? And he’s not alone either. This is from Alex Lantier at the World Socialist Web Site:

“While there are a host of global economic factors underlying the fall in oil prices, it is unquestionable that a major role in the commodity’s staggering plunge is Washington’s collaboration with OPEC and the Saudi monarchs in Riyadh to boost production and increase the glut on world oil markets.

As Obama traveled to Saudi Arabia after the outbreak of the Ukraine crisis last March, the Guardian wrote, “Angered by the Soviet invasion of Afghanistan in 1979, the Saudis turned on the oil taps, driving down the global price of crude until it reached $20 a barrel (in today’s prices) in the mid-1980s… [Today] the Saudis might be up for such a move—which would also boost global growth—in order to punish Putin over his support for the Assad regime in Syria. Has Washington floated this idea with Riyadh? It would be a surprise if it hasn’t.” (Alex Lantier,Imperialism and the ruble crisis, World Socialist Web Site)

And here’s an intriguing clip from an article at Reuters that suggests the Obama administration is behind the present Saudi policy:

“U.S. Secretary of State John Kerry sidestepped the issue (of a US-Saudi plot) after a trip to Saudi Arabia in September. Asked if past discussions with Riyadh had touched on Russia’s need for oil above $100 to balance its budget, he smiled and said: “They (Saudis) are very, very well aware of their ability to have an impact on global oil prices.” (Saudi oil policy uncertainty unleashes the conspiracy theorists, Reuters)

Wink, wink.

Of course, they’re in bed together. Saudi Arabia is a US client. It’s not autonomous or sovereign in any meaningful way. It’s a US protectorate, a satellite, a colony. They do what they’re told. Period. True, the relationship is complex, but let’s not be ridiculous. The Saudis are not calling the shots. The idea is absurd. Do you really think that Washington would let Riyadh fiddle prices in a way that destroyed critical US domestic energy industries, ravaged the junk bond market, and generated widespread financial instability without uttering a peep of protest on the matter?

Dream on! If the US was unhappy with the Saudis, we’d all know about it in short-order because it would be raining Daisy Cutters from the Persian Gulf to the Red Sea, which is the way that Washington normally expresses its displeasure on such matters. The fact that Obama has not even alluded to the shocking plunge in prices just proves that the policy coincides with Washington’s broader geopolitical strategy.

And let’s not forget that the Saudis have used oil as a political weapon before, many times before. Indeed, wreaking havoc is nothing new for our good buddies the Saudis. Check this out from Oil Price website:

“In 1973, Egyptian President Anwar Sadat convinced Saudi King Faisal to cut production and raise prices, then to go as far as embargoing oil exports, all with the goal of punishing the United States for supporting Israel against the Arab states. It worked. The “oil price shock” quadrupled prices.

It happened again in 1986, when Saudi Arabia-led OPEC allowed prices to drop precipitously, and then in 1990, when the Saudis sent prices plummeting as a way of taking out Russia, which was seen as a threat to their oil supremacy. In 1998, they succeeded. When the oil price was halved from $25 to $12, Russia defaulted on its debt.

The Saudis and other OPEC members have, of course, used the oil price for the obverse effect, that is, suppressing production to keep prices artificially high and member states swimming in “petrodollars”. In 2008, oil peaked at $147 a barrel.” (Did The Saudis And The US Collude In Dropping Oil Prices?, Oil Price)

1973, 1986, 1990, 1998 and 2008.

So, according to the author, the Saudis have manipulated oil prices at least five times in the past to achieve their foreign policy objectives. But, if that’s the case, then why does the media ridicule people who think the Saudis might be engaged in a similar strategy today?

Could it be that the media is trying to shape public opinion on the issue and, by doing so, actually contribute to the plunge in oil prices?

Bingo. Alert readers have probably noticed that the oil story has been splashed across the headlines for weeks even though the basic facts have not changed in the least. It’s all a rehash of the same tedious story reprinted over and over again. But, why? Why does the public need to have the same “Saudis refuse to cut production” story driven into their consciousness day after day like they’re part of some great collective brainwashing experiment? Could it be that every time the message is repeated, oil sells off, and prices go down? Is that it?

Precisely. For example, last week a refinery was attacked in Libya which pushed oil prices up almost immediately. Just hours later, however, another “Saudis refuse to cut production” story conveniently popped up in all the major US media which pushed prices in the direction the USG wants them to go, er, I mean, back down again.

This is how the media helps to reinforce government policy, by crafting a message that helps to push down prices and, thus, hurt “evil” Putin. (This is called “jawboning”) Keep in mind, that OPEC doesn’t meet again until June, 2015, so there’s nothing new to report on production levels. But that doesn’t mean we’re not going to get regular updates on the “Saudis refuse to cut production” story. Oh, no. The media is going to keep beating that drum until Putin cries “Uncle” and submits to US directives. Either that, or the bond market is going to blow up and take the whole damn global financial system along with it. One way or another, something’s got to give.

Bottom line: Falling oil prices and the plunging ruble are not some kind of free market accident brought on by oversupply and weak demand. That’s baloney. They’re part of a broader geopolitical strategy to strangle the Russian economy, topple Putin, and establish US hegemony across the Asian landmass. It’s all part of Washington’s plan to maintain its top-spot as the world’s only superpower even though its economy is in irreversible decline.

American Exceptionalism and American Torture

In 1964, the Brazilian military, in a US-designed coup, overthrew a liberal (not more to the left than that) government and proceeded to rule with an iron fist for the next 21 years. In 1979 the military regime passed an amnesty law blocking the prosecution of its members for torture and other crimes. The amnesty still holds.

That’s how they handle such matters in what used to be called The Third World. In the First World, however, they have no need for such legal niceties. In the United States, military torturers and their political godfathers are granted amnesty automatically, simply for being American, solely for belonging to the “Good Guys Club”.

So now, with the release of the Senate Intelligence Committee report on CIA torture, we have further depressing revelations about US foreign policy. But do Americans and the world need yet another reminder that the United States is a leading practitioner of torture? Yes. The message can not be broadcast too often because the indoctrination of the American people and Americophiles all around the world is so deeply embedded that it takes repeated shocks to the system to dislodge it. No one does brainwashing like the good ol’ Yankee inventors of advertising and public relations. And there is always a new generation just coming of age with stars (and stripes) in their eyes.

The public also has to be reminded yet again that – contrary to what most of the media and Mr. Obama would have us all believe – the president has never actually banned torture per se, despite saying recently that he had “unequivocally banned torture” after taking office.

Shortly after Obama’s first inauguration, both he and Leon Panetta, the new Director of the CIA, explicitly stated that “rendition” was not being ended. As the Los Angeles Times reported at the time: “Under executive orders issued by Obama recently, the CIA still has authority to carry out what are known as renditions, secret abductions and transfers of prisoners to countries that cooperate with the United States.”

The English translation of “cooperate” is “torture”. Rendition is simply outsourcing torture. There was no other reason to take prisoners to Lithuania, Poland, Romania, Egypt, Jordan, Kenya, Somalia, Kosovo, or the Indian Ocean island of Diego Garcia, amongst other torture centers employed by the United States. Kosovo and Diego Garcia – both of which house large and very secretive American military bases – if not some of the other locations, may well still be open for torture business, as is the Guantánamo Base in Cuba.

Moreover, the key Executive Order referred to, number 13491, issued January 22, 2009, “Ensuring Lawful Interrogations”, leaves a major loophole. It states repeatedly that humane treatment, including the absence of torture, is applicable only to prisoners detained in an “armed conflict”. Thus, torture by Americans outside an environment of “armed conflict” is not explicitly prohibited. But what about torture within an environment of “counter-terrorism”?

The Executive Order required the CIA to use only the interrogation methods outlined in a revised Army Field Manual. However, using the Army Field Manual as a guide to prisoner treatment and interrogation still allows solitary confinement, perceptual or sensory deprivation, sensory overload, sleep deprivation, the induction of fear and hopelessness, mind-altering drugs, environmental manipulation such as temperature and noise, and stress positions, amongst other charming examples of American Exceptionalism.

After Panetta was questioned by a Senate panel, the New York Times wrote that he had “left open the possibility that the agency could seek permission to use interrogation methods more aggressive than the limited menu that President Obama authorized under new rules … Mr. Panetta also said the agency would continue the Bush administration practice of ‘rendition’ … But he said the agency would refuse to deliver a suspect into the hands of a country known for torture or other actions ‘that violate our human values’.”

The last sentence is of course childishly absurd. The countries chosen to receive rendition prisoners were chosen precisely and solely because they were willing and able to torture them.

Four months after Obama and Panetta took office, the New York Times could report that renditions had reached new heights.

The present news reports indicate that Washington’s obsession with torture stems from 9/11, to prevent a repetition. The president speaks of “the fearful excesses of the post-9/11 era”. There’s something to that idea, but not a great deal. Torture in America is actually as old as the country. What government has been intimately involved with that horror more than the United States? Teaching it, supplying the manuals, supplying the equipment, creation of international torture centers, kidnaping people to these places, solitary confinement, forced feeding, Guantánamo, Abu Ghraib, Bagram, Chile, Brazil, Argentina, Chicago … Lord forgive us!

In 2011, Brazil instituted a National Truth Commission to officially investigate the crimes of the military government, which came to an end in 1985. But Mr. Obama has in fact rejected calls for a truth commission concerning CIA torture. On June 17 of this year, however, when Vice President Joseph Biden was in Brazil, he gave the Truth Commission 43 State Department cables and reports concerning the Brazilian military regime, including one entitled “Widespread Arrests and Psychophysical Interrogation of Suspected Subversives.”

Thus it is that once again the United States of America will not be subjected to any accountability for having broken US laws, international laws, and the fundamental laws of human decency. Obama can expect the same kindness from his successor as he has extended to George W.

“One of the strengths that makes America exceptional is our willingness to openly confront our past, face our imperfections, make changes and do better.” – Barack Obama, written statement issued moments after the Senate report was made public.

And if that pile of hypocrisy is not big enough or smelly enough, try adding to it Bidens’ remark re his visit to Brazil: “I hope that in taking steps to come to grips with our past we can find a way to focus on the immense promise of the future.”

If the torturers of the Bush and Obama administrations are not held accountable in the United States they must be pursued internationally under the principles of universal jurisdiction.

In 1984, an historic step was taken by the United Nations with the drafting of the “Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment” (came into force in 1987, ratified by the United States in 1994). Article 2, section 2 of the Convention states: “No exceptional circumstances whatsoever, whether a state of war or a threat of war, internal political instability or any other public emergency, may be invoked as a justification of torture.”

Such marvelously clear, unequivocal, and principled language, to set a single standard for a world that makes it increasingly difficult for one to feel proud of humanity. We cannot slide back. If today it’s deemed acceptable to torture the person who supposedly has the vital “ticking-bomb” information needed to save lives, tomorrow it will be acceptable to torture him to learn the identities of his alleged co-conspirators. Would we allow slavery to resume for just a short while to serve some “national emergency” or some other “higher purpose”?

If you open the window of torture, even just a crack, the cold air of the Dark Ages will fill the whole room.

Cuba … at long, long last … maybe …

Hopefully, it’s what it appears to be. Cuba will now be treated by the United States as a country worthy of at least as much respect as Washington offers to its highly oppressive, murdering, torturing allies in Saudi Arabia, Egypt, Honduras, Israel, Pakistan, Afghanistan, and elsewhere.

It’s a tough decision to normalize relations with a country whose police force murders its own innocent civilians on almost a daily basis, and even more abroad, but Cuba needs to do it. Maybe the Cubans can civilize the Americans a bit.

Let’s hope that America’s terrible economic embargo against the island will go the way of the dinosaurs, and Cuba will be able to demonstrate more than ever what a rational, democratic, socialist society can create. But they must not open the economy for the Yankee blood-suckers to play with as they have all over the world.

And I’ll be able to go to Cuba not as a thief in the night covering my tracks and risking a huge fine.

But with the Republicans taking over Congress next month, all of this may be just a pipe dream.

Barack Obama could have done this six years ago when he took office; or five years ago when American Alan Gross was first arrested and imprisoned in Cuba. It would have been even easier back then, with Obama’s popularity at its height and Congress not as captured by the Know-Nothings as now.

So, Cuba outlasted all the punishment, all the lies, all the insults, all the deprivations, all the murderous sabotage, all the assassination attempts against Fidel, all the policies to isolate the country. But for many years now, it’s the United States that has been isolated in the Western Hemisphere.

Reason Number 13,336 why capitalism will be the death of us.

Antibiotic-resistant bacteria – the “superbugs” – if left unchecked, could result in 10 million deaths a year by 2050. New drugs to fight the superbugs are desperately needed. But a panel advising President Obama warned in September that “there isn’t a sufficiently robust pipeline of new drugs to replace the ones rendered ineffective by antibiotic resistance.”

The problem, it appears, is that “Antibiotics generally provide low returns on investment, so they are not a highly attractive area for research and development.”

Aha! “Low returns on investment”! What could be simpler to understand? Is it not a concept worth killing and dying for? Just as millions of Americans died in the 20th century so corporations could optimize profits by not protecting the public from tobacco, lead, and asbestos.

Corporations are programmed to optimize profits without regard for the society in which they operate, in much the same way that cancer cells are programmed to proliferate without regard for the health of their host.

Happy New Year. Here’s what you have to look forward to in 2015.

• January 25: 467 people reported missing from a university in Mexico. US State Department blames Russia.
• February 1: Military junta overthrows President Nicolás Maduro in Venezuela. Washington decries the loss of democracy.
• February 2: US recognizes the new Venezuelan military junta, offers it 50 jet fighters and tanks.
• February 3: Revolution breaks out in Venezuela endangering the military junta; 40,000 American marines land in Caracas to quell the uprising.
• February 16: White police officer in Chicago fatally shoots a 6-year old black boy holding a toy gun.
• March 6: Congress passes a new law which states that to become president of the United States a person must have the surname Bush or Clinton.
• April 30: The Department of Homeland Security announces plan to record the DNA at birth of every child born in the United States.
• May 19: The Supreme Court rules that police may search anyone if they have reasonable grounds for believing that the person has pockets.
• May 27: The Transportation Security Administration declares that all airline passengers must strip completely nude at check-in and remain thus until arriving at their destination.
• June 6: White police officer in Oklahoma City tasers a 7-month-old black child, claiming the child was holding a gun; the gun turns out to be a rattle.
• July 19: Two subway trains collide in Manhattan. The United States demands that Moscow explain why there was a Russian citizen in each of the trains.
• September 5: The Democratic Party changes its name to the Republican Lite Party, and announces the opening of a joint bank account with the Republican Party so that corporate lobbyists need make out only one check.
• September 12: White police officer in Alabama shoots black newborn, confusing the umbilical cord for a noose.
• November 16: President Obama announces that Iran, Syria, Lebanon, Palestine, North Korea, Sudan, Nicaragua, Venezuela, Bolivia and Cuba all possess weapons of mass destruction; have close ties to the Islamic State, al Qaeda, and the Taliban; are aiding pro-Russian rebels in Ukraine; were involved in 9-11; played a role in the assassination of John F. Kennedy and the attack on Pearl Harbor; are an imminent threat to the United States and all that is decent and holy; and are all “really bad guys”, who even (choke, gasp) use torture!
• November 21: The United States invades Iran, Syria, Lebanon, Palestine, North Korea, Sudan, Nicaragua, Venezuela, Bolivia and Cuba.
• December 10: Barack Obama is awarded his second Nobel Peace Prize
• December 11: To celebrate his new peace prize, Obama sends out drones to assassinate wrong-thinking individuals in Somalia, Afghanistan and Yemen.
• December 13: Members of Ukraine’s neo-Nazi parties, which hold several high positions in the US-supported government, goose-step through the center of Kiev in full German Storm Trooper uniforms, carrying giant swastika flags, shouting “Heil Hitler”, and singing the Horst Wessel song. Not a word of this appears in any American mainstream media.
• December 15: US Secretary of State warns Russia to stop meddling in Ukraine, accusing Moscow of wanting to re-create the Soviet Union.
• December 16: White police officer shoots a black 98-year-old man sitting in a wheel chair, claiming the man pointed a rifle at him. The rifle turns out to be a cane.
• December 28: The Washington Redskins football team finish their season in last place. The White House blames Vladimir Putin.

Notes

1. Associated Press, December 11, 2014
2. New York Times, December 11, 2014
3. Los Angeles Times, February 1, 2009
4. New York Times, February 6, 2009
5. New York Times, May 24, 2009
6. Washington Post, December 11, 2014
7. National Security Archive’s Brazil Documentation Project
8. Washington Post, December 10, 2014
9. See note 7
10. Washington Post, December 13, 2014

“The Beat Goes On”

The hit song by Sonny and Cher is an apt description of what happens in Washington, D.C. I’m referring to their Top 10 hit song, “The Beat Goes On.” No matter which party controls Congress, the beat goes on. No matter which party’s candidate is elected President, the beat goes on. Rhetoric and campaign promises notwithstanding, the beat goes on.

Here is how the “Potomac Shuffle” is played: Democrats openly and boldly promote Big Government. Oh, it’s masked under the rubric of “compassion,” of course. But there is little doubt that the modern Democrat Party is known far and wide as the party of Big Government. And when they are elected, they keep their word and implement big-government policies.

At some point, the American people awaken to the draconian nature of the big-government policies implemented by Democrats and demand a return to smaller government. The Republican Party is there to answer the bell. They postulate “conservative” ideals and loudly proclaim themselves to be the champions of smaller government and individual liberty. The message of smaller government resonates with voters and Republicans are swept to large victories in national elections. However, instead of reversing the big-government policies that had been passed by Democrats, the newly-ensconced GOP leadership actually SOLIDIFIES those policies. And, as they say, the beat goes on.

The basic difference between the two major parties in Washington, D.C., is that the Democrats tell the truth about promoting Big Government, while Republicans lie about promoting smaller government and then turn around and join Democrats in promoting Big Government. Both parties in Washington, D.C., are the parties of Big Government. Another distinction between the two parties is that Democrats want to tax-and-spend, while Republicans want to borrow-and-spend. But both parties are staunch supporters of massive federal spending.

Both major parties are also twin sisters when it comes to fighting perennial foreign wars abroad and supporting the creation of a Police State at home. Oh, the Democrats love to whine about police abuse any time an apparent (whether real or fabricated) injustice is committed within the black community by a white police officer (never the other way around). But, in truth, Democrats are as eager to impose more and more limitations on individual liberties (including those within the black community) as are Republicans.

And Republicans will get on their soap boxes and talk loquaciously about more freedom and smaller government. They will send out a barrage of fund-raising letters to the constituents back home about reining in “big-government Democrats.” Their leadership might even allow an occasional vote to be held where Republican lawmakers can make a symbolic–albeit meaningless–vote against a specific big-government policy, all the while knowing that such a bill is destined to fail in the other chamber or be completely diluted of its original language in subsequent conference committees. And, once again, the beat goes on.

We are witnessing this redundant fraud take place once again. The American people, fed up with the big-government machinations of Barack Obama, swept Republicans into the majority in both houses of the U.S. Congress. In fact, Obama now holds the unenviable distinction of having lost more of his own party’s congressional seats in a mid-term election than any President in history.

And there is no question that the reason voters put Republicans in charge of Congress was due to their outrage against two of Obama’s pet policies: Obamacare and amnesty. And of the two, amnesty was the straw that broke the back of the Democrats’ dominance in D.C. As for Obamacare, forget it! It’s settled. Republicans will spend no capital trying to reverse it. And most Americans (even Republicans) know this is the case. However, amnesty is another issue altogether.

The American people are fed up with what the deluge of illegal immigration is doing to their country–as well as their communities. And they sent Republicans to Capitol Hill to do something about it. But instead of doing anything to reverse Obama’s executive amnesty, House Speaker John Boehner and his fellow elitists in the GOP are going to SOLIDIFY an amnesty deal. And the beat goes on.

Let me provide readers with just a few samples of how pro-amnesty Republicans like John Boehner and Mitch McConnell are betraying their constituents in working to solidify amnesty for illegal aliens.

*The recent vote by House Republicans that was sold to House members as a vote that would block Obama’s amnesty was actually a vote that STRENGTHENED the amnesty order. In other words, House Speaker Boehner, Majority Leader Kevin McCarthy, and Majority Whip Steve Scalise deliberately TRICKED their fellow Republicans. The bill they passed will significantly strengthen Obama’s amnesty order.

See the report here:

*The GOP 2015 “omnibus” spending bill includes nearly $1 billion in funding for illegals that are being granted amnesty.

According to a published report, “The GOP’s draft 2015 ‘omnibus’ spending bill reportedly includes $948 million to help poor and unskilled Central American migrants establish themselves in the United States, but includes no effective restrictions on President Barack Obama’s plan to provide work permits and tax payments to millions of resident illegal immigrants.”

The report continued, saying, “Much of the $948 million may also be used to care for the next wave of illegals who could flood across the border during the summer. The influx in the summer of 2015 is expected to be large, because Obama is offering work permits and social security numbers to at least five million illegals already in the country.

“The $948 million fund is part of the one-year, $1 trillion 2015 spending plan described in a late-night report from The New York Times.”

Also see this report:

*GOP Congressman Pete Sessions (R-TX) revealed that the Republican leadership intends to push an amnesty bill in next year’s congressional session that would subject only the “most dangerous illegal immigrant criminals” to deportation.

According to Breitbart.com, “One of the top House Republican leaders, Rep. Pete Sessions (R-TX), revealed this week that GOP leaders intend to push an amnesty bill in the next Congress that would subject only the most dangerous illegal immigrant criminals to deportation so that ‘not one person’ who is in the country illegally and has not committed a violent crime is ‘thrown out.’”

The report continued, “Sessions said, ‘We intend to push a bill that would operate under the activity of trying to do under rule of law… But that, even in our wildest dream, would not be to remove any person that might be here unless they were dangerous to this country and committed a crime…that was never even in a plan that I thought about.’”

Sessions went on to condemn Obama’s executive amnesty (just like Boehner does), but not because he, or the GOP leadership, is opposed to amnesty, but because they (GOP leaders) want to enact LEGISLATIVE amnesty.

See the report here:

The preoccupation and fascination with the two major parties is killing America. Neither party in Washington, D.C., has the liberties and wellbeing of the American people in mind. NOT THE LEAST LITTLE BIT! At the leadership level, both parties are controlled by the same establishment elitists who are working to enrich themselves on the backs of the American people and the Bill of Rights.

Republican toadies love to talk about “compromise.” But it’s not compromise; it’s CONSPIRACY. For the most part, the leadership of both parties is nothing more than the worst kind of sycophants.

As long as the American electorate is stuck in this Republican vs. Democrat, “liberal” vs. “conservative,” and “right” vs. “left” illusion, nothing will change in this country. The American people are being played by D.C.’s “game makers” the way Katniss and Peeta are played by the Capital’s “game makers” in “The Hunger Games” movies.

After two years of capitulation, Republicans will pout, “We couldn’t get anything done, because we didn’t have the White House. Elect a Republican President in 2016, and we will get things done.” It’s the old “Potomac Shuffle,” folks. And the beat goes on.

Mystery, Fear, And Confusion

The Product of The American Government…

I have vowed not to watch programs on TV Channels that select the majority of their participants from two particular racial minorities. C-Span has been guilty of that distortion and I have purposely neglected it as a result.  However, I like Brian Lamb’s interviews when he is not stuck with the anointed races.  Recently he interviewed James Risen http://www.c-span.org/video/?322401-1/qa-james-risen , a New York Times writer and the author of a couple of investigative books that have gotten him indicted by our tyrannical government.

It is difficult to comprehend how in about two centuries the United States of America has evolved from a new nation whose leaders advised that it not become involved with foreign intrigues to a nation that seeks to dominate the entire world.

There were clues.  Even in its infancy it was avaricious.  Expansion seemed to be in its blood.  It captured the land from the Atlantic to the Pacific and garnered the Far Eastern island of the Philippines, Cuba in the Caribbean, and Alaska to our North.  It imposed its will on South American nations and fought several wars including one with our Southern neighbor, Mexico.  It even tried to annex Canada.

Following the devious imposition of the Federal Reserve System it flowered into international leadership.  Wars became a means for gaining control over other nations and no longer had anything to do with the nation’s welfare.  From that time on a mysterious power seemed to have hand on the rudder of the America ship.  The League of Nations, founded after WWI, was unable to gain widespread support but following WWII the United Nations, a second similar organization, emerged and has been working behind the scenes to gain control over various entities within nations around the world.

Suddenly, after the mysterious 9/11 event, United States separated itself from the United Nations and became the leader of an operation called the “War on Terror”.  The War on Terror did not specify an enemy; the dictionary defines terror as a “state of intense fear”.  From that definition it appears that the United States has embarked on a mission to eliminate fear by bombing, invading, and tyrannizing a series of Middle Eastern nations most of which are Muslim and enemies of neo-Israel.

While we fight the endless war on terror Muslims have been encouraged to immigrate into Western nation in both Europe and America.  Allowing the so-called enemy to infiltrate the adversary’s borders is a seeming contradiction in intent and has caused serious conflicts.

Near the end of the interview with Brian Lamb, Risen tells Lamb that the purpose of the War on Terror is mysterious and that many things are hard to understand.  He says it is difficult to determine what is real and what is fiction.  Lamb made no comment and did not pursue the subject.

Risen recounted a story about Senator Ron Wyden who for several months spoke of some injurious action that would upset the American people but he could not say what it was.  Only after Edward Snowden’s NSA revelation did the Senator admit that this was the thing he had not mentioned.  Risen used this to illustrate the lack of oversight that surrounds our intelligence agencies and the war in general.

If James Risen with his extensive investigation cannot understand the war on terror it is not wonder that United States citizens neither understand it nor pay much attention it.  Life goes on as if continuous war is normal. Trillions of dollars of debt accumulate to the account of American citizens and neither congress nor the people, nor the press mounts a substantial challenge.

This mysterious war on terror has caused the structure of a police state to rise over freedom.  Most of the laws enacted to protect the people from the government have been abolished and the structure that has been erected can be activated at will.

Risen has challenged a tiny part of the monster.  He seeks freedom of the press as indispensable for the maintenance of a free nation.  He is not challenging the entire series of questionable events that have brought us to this point nor the pervasive press control that has saturated all of our news outlets. The destruction of the World Trade Centers has never been properly investigated.  The evidence available defies the government’s story but our timid elected officials fail to provide a challenge. The mysterious power that seems to control us has frightened everyone and the highly visible, small, though brave, challenge Risen has mounted is a drop in the bucket.

As airplanes fly over our cities and create long slender clouds citizens ignore them.  The mention of this startling operation brings a hush to the conversation.  People know that a mysterious force is operating and are afraid of it.  In previous times a shocking appearance of this kind would have brought a crowd to government offices demanding to know what was going on.  Today, like frogs in the boiling pot we are accepting more and more serious infractions without protest.

The Bush family has been pawns in the quest for world tyranny for several generations.  In the coming national election Jeb Bush, the former Governor of Florida, is positioning himself to be the Republican nominee.  The American people will not be given a choice.  Jeb Bush affixed his signature to the Project for the New American Century (PNAC). https://en.wikipedia.org/wiki/Project_for_the_New_American_Century  This organization bears substantial responsibility for the war on terror.  It signers and crafters were stained with the philosophies of Leon Trotsky.

As a presidential election looms the press and media begin to give the pre-selected candidates free publicity.  Widely hated former President George W. Bush wrote a book and is now seen on TV doing light and jolly sessions with former President William J. Clinton.  Though Jeb Bush is not shown the publicity is designed to create a favorable impression of the candidate in the minds of the public.  It is effective.  One need only look to the inappropriate candidacy of President Barak Obama to understand the ability of the press and media to manipulate the electorate.

Any candidate for President of the United States that sincerely means to act in the best interests of the people of the United States will be purposely marginalized by the press and media.  Both Congressman Dr. Ron Paul and Patrick Buchanan had to fight a negative press.  Though these candidates had a sizeable following their platform was never given serious coverage.  They were lucky to be allowed to join the presidential debates and when they did they were marginalized and were made to look foolish.

The next President of the United States of America will continue the policies set in place by President George W. Bush and President Barak Obama.  Massive debt will continue to accumulate, perpetual war will continue, moral deterioration will progress, the presidency will increase in power, and freedom will continue to deteriorate.  It is in the best interests of the world power seekers to maintain peace but that does not mean the riots will not continue.  Trotskyites in the press and media view riots as an opportunity to consolidate power.

We have forgotten the Creator, the Triune Christian God who was the power behind the founding of our nation.  We have forsaken the humility of the creature and usurped the station of the Creator, a position we are ill equipped to occupy.  We are created beings, unable to govern ourselves; the confusion of cognitive dissonance is a result.   Peace tarries until we begin to allow the Master to assume His role of King and Ruler.

African-Americans Self-Destructing In America: Here’s Why

Ferguson, Missouri with its race-riots; Chicago, Illinois with its 50 black on black shootings over the 4th of July weekend and New York City’s latest African-American death portend something deeper and much deadlier than a Grand Jury verdict that exonerated a white police officer.

Today in America, a sizeable population of Americans shoplift $25 million daily out of mercantile stores. Millions drive drunk in the face of strict and punishing laws for intoxicated driving. Tens of thousands text while driving at 70 mph, which kills 3,000 people annually. It matters not that it’s against the law and against common sense. Thousands of black on white and black on black murders accelerate into the national news. Black on black rapes, black on white rapes and violence toward children in the inner cities continues without causing riots or national concern.

In Detroit, Chicago, New York, Denver, LA, New Orleans and elsewhere across America, black schools suffer 50 to as high as 76 percent flunkout-dropout rates. Result: millions of teens hit the streets illiterate every June. Currently in America today, 42 million people cannot read or write—which equates to functional illiteracy. Note: we feed 48 million people on food stamps because they cannot earn money with a job.

A profoundly disturbing 73 percent of African-American children arrive out of wedlock to single mothers who subsist on welfare. One famous video of an African-American woman in Florida with 15 children living in a motel defies understanding. She screamed at the news reporter, “Somebody’s got to take responsibility for all these kids.”

A sense of personal responsibility and accountability never occurred to her. It’s everyone else’s fault that her illegitimate kids don’t enjoy a home or three meals a day or a father(s).

In Ferguson, 6’4”, 290 pound, 18 year old, African-American Michael Brown robbed a convenience store, and nearly choked the storeowner when the owner tried to stop Brown. A few minutes later, Officer Darren Wilson stopped the giant of a teenager who boasted a rap sheet history of robberies. The teen attacked the officer in his own squad car. Then, minutes later, after being shot in the hand, the teenager ran, but turned back to charge toward the police officer. After many shouts to halt, the officer, fearing for his life, shot the young man dead.

A Grand Jury, including six African-Americans, heard all the facts and all the witnesses to the case. They voted to not indict Officer Wilson because the behemoth of a man charged toward him with the ability to crush the officer, take his gun and kill the officer.

That decision, made by lawful citizens, morphed into the Ferguson riots and burnings. It caused race-baiter Al Sharpton to create the false flag of, “Hands up, don’t shoot” motto.

Also, when the 6’4”, 350 pound, 45-year-old Eric Garner, died because of an arrest chokehold that cut off his air, more demonstrations raged across the country.

While emotions ran high, Sharpton raced to the head of the crowd to claim his almighty righteousness. Burning buildings and cars costs millions, but settles nothing. Blaming everyone else for personal behavior solves nothing.

When a police officer stops me for a traffic infraction, I say, “Yes sir and yes ma’am.” I don’t argue. I don’t make excuses. I don’t attempt to fight them. I don’t try to pull their gun. I keep my hands on the wheel and look them in the eye. If I get a ticket, I sign for it and pay for it. Yes, it ruined my day, but I got caught speeding. I am responsible. When a police officer has you in his or her sights, you don’t argue because they command you for time being. If you don’t want a police officer to stop you, obey the law.

Both Brown and Garner broke the law and fought the police officers. If they chose to put their hands into cuffs and be led away to their day in court, both would be alive today. They didn’t so they died. If you break the law, you pay the consequences.

That’s why we engage laws to maintain a civil society.

Right now, the African-American community, black on black crime, suffers 6,000 murders annually. You never hear a word about it. With 73 percent of African-American children living with a single mother, the African-American “family” lives in shambles that create more anger, illiteracy, violence, poverty and killings. It’s the greatest tragedy since slavery. But in this case, African-Americans do it to themselves. No other ethnic group in America suffers so much death and poverty. Why? My bet: it started with Lyndon Baines Johnson’s “War on Poverty” and the “Great Society” that created endless welfare for those who enjoy doing nothing with their lives.

How about this idea? Why doesn’t the Congressional Black Caucus investigate the “whys” of black poverty, crime and killings? Then, pass laws to create jobs, fund schooling and vocational training. How about a national network to educate teen African-American girls on the dangers of early pregnancy. Intense-disciplined training and schooling must be introduced into the inner city ghettos. Separate male and female schools to cut down on the sexual intrigue that creates so many fatherless children.

How about the African-American educated leaders like Barack Obama, Eric Holder, Colin Powell and mega-rich black entertainers step up to the plate to solve the problems facing African-Americans in America—rather than ignore them as they have for the past 40 years?

Instead of sending foreign aid over to countries that hate us, why not spend it on our own citizens for their and our benefit? Instead of 10 to 13 year wars overseas that accomplish nothing, why not use the money for jobs and training for African-Americans? And all our poor citizens?

How about a Master Mind Group Think Tank that coordinates to discover the causes of black poverty and crime—then solve it, change it and turn it around?

We cannot endure high school kids marching down the streets of our cities yelling, “F*** the cops.”

I think Bill O’Reilly presented America with the best five-minute speech on the African-American predicament.

We need to teach young people personal accountability, personal responsibility and a sense of community. We need to teach respect for law. We need to teach all teens the ramifications of teen pregnancies and how to prevent them. We need to examine ourselves as a society, what means something to us, and how to regain the family unit.

If not, millions of Michael Brown’s and Eric Garners will kill each other, steal and cheat, and impregnate endless teen girls into motherhood without fathers. We need to get this done. If not, more Ferguson riots face all of them and all of us.

Talking Turkey

Putin Gobsmacks Obama and Euro-Leaders with Surprise Gas Deal…

On Monday, Russian President Vladimir Putin clinched a groundbreaking deal with Turkish President Recep Tayyip Erdoğan that will strengthen economic ties between the two nations and make Turkey the major hub for Russian gas in the region. Under the terms of the agreement, Russia will pump additional natural gas to locations in central Turkey and to a “hub at the Turkish-Greek border” which will eventually provide Putin with backdoor access to the lucrative EU market, although Turkey will serve as the critical intermediary. The move creates a de facto Russo-Turkey alliance that could shift the regional balance of power decisively in Moscow’s favor, thus creating another formidable hurtle for Washington’s “pivot to Asia” strategy.  While the media is characterizing the change in plans (Putin has abandoned the South Stream pipeline project that would have transported gas to southern Europe) as a “diplomatic defeat” for Russia, the opposite appears to be the case.  Putin has once again outmaneuvered the US on both the energy and geopolitical fronts adding to his long list of policy triumphs. Here’s a brief summary from Andrew Korybko at Sputnik News:

“Russia has abandoned the troubled South Stream project and will now be building its replacement with Turkey. This monumental decision signals that Ankara has made its choice to reject Euro-Atlanticsm and embrace Eurasian integration.

In what may possibly be the biggest move towards multipolarity thus far,..Turkey, has done away with its former Euro-Atlantic ambitions. A year ago, none of this would have been foreseeable, but the absolute failure of the US’ Mideast policy and the EU’s energy one made this stunning reversal possible in under a year. Turkey is still anticipated to have some privileged relations with the West, but the entire nature of the relationship has forever changed as the country officially engages in pragmatic multipolarity.

Turkey’s leadership made a major move by sealing such a colossal deal with Russia in such a sensitive political environment, and the old friendship can never be restored…The reverberations are truly global.”  (“Cold Turkey: Ankara Buckles Against Western Pressure, Turns to Russia”, Sputnik News)

Korybko seems to be alone in grasping the magnitude of what happened in Ankara on Monday, although –judging by the Obama administration’s silence on the topic–the gravity of the transaction is beginning to sink in.  Grandmaster Vlad’s latest move has caught US powerbrokers flat-footed and left them speechless. This is a scenario that no one had anticipated and, if it’s not handled correctly, could turn out to be a real nightmare. Here’s more on Monday’s press conference from Russia Today:

“Putin said that Russia is ready to build a new pipeline to meet Turkey’s growing gas demand, which may include a special hub on the Turkish-Greek border for customers in southern Europe.

For now, the supply of Russian gas to Turkey will be raised by 3 billion cubic meters via the already operating Blue Stream pipeline…Moscow will also reduce the gas price for Turkish customers by 6 percent from January 1, 2015, Putin said.

“We are ready to further reduce gas prices along with the implementation of our joint large-scale projects,” he added.”  (“Putin: Russia forced to withdraw from S. Stream project due to EU stance”, RT)

How can this happen? How can Putin waltz into Ankara, scribble his name on a few sheets of paper, and abscond with a key US ally right under Washington’s nose?  Isn’t there anyone at the White House who’s smart enough to anticipate a scenario like this or have they all been replaced with warmongering ding-dongs like Susan Rice and Samantha Powers?

The Obama administration has been doing everything in its power to control the flow of gas from east to west and to undermine Russian-EU economic integration. Now it looks like the nimble Putin has found a way to avoid the economic sanctions, (Turkey rejected sanctions on Russia)  avoid US coercion and blackmail (which was used on Bulgaria, Hungary, and Serbia), and avoid Washington’s endless belligerence and hostility, and achieve his objectives at the same time.   But– then again– isn’t that what you’d expect from a level-headed martial arts pro like Putin?

“I won’t beat you,” says Bad Vlad.  “I’ll let you to beat yourself.”

And, so he has. Just ask the befuddled Obama who has yet to prevail in any of his encounters with Putin.

But why the silence? Why hasn’t the White House issued a statement about the big Russian-Turkey gas deal that everyone’s talking about?

I’ll tell you why. It’s because they don’t know what the hell just hit them, that’s why. They were completely blindsided by the announcement and can’t quite figure out what it means for the issues that are on the very top of their foreign policy agenda, like the pivot to Asia, or the wars in Syria and Ukraine, or the much-ballyhooed gas pipeline from Qatar to the EU, that was supposed to transit– you guessed it– Turkey.  Is that plan still in the works or has the Putin-Erdogan alliance put the kibosh on that gem too?   Let’s face it, Putin has really knocked it out of the park this time. Team Obama is clearly out of its league and has no idea of what’s going on. If Turkey turns eastward and joins the growing Russian bloc, US policymakers are going to have to scrap the better part of their strategic plans for the coming century and go back to Square 1. What a headache.

There’s a good article in Wednesday’s New York Times that summarizes Washington’s ambivalence towards South Stream perfectly. Here’s an excerpt:

“Moscow has long presented the project, proposed in 2007, as making good business sense because it would provide a new route for Russian gas to reach Europe. Washington and Brussels have opposed the project on the grounds that it was a vehicle for cementing Russian influence over southern Europe and for bypassing Ukraine, whose price disputes with Gazprom twice interrupted supplies to Europe in recent years.”

Putin’s Surprise Call to Scrap South Stream Gas Pipeline Leaves Europe Reeling”, New York Times)

This has been the argument from the get-go, that selling gas to people in the EU somehow strengthens Putin’s maniacal grip on the continent. What a joke. Would you, dear reader, be willing turn off the heat, tear up your energy bill, and freeze to death in the dark to prove to your gas company that you’re not willing to capitulate to their tyrannical rule?

Of course not, because the idea is ridiculous. Just like blocking South Stream is ridiculous. Putin is selling gas, not tyranny.  He doesn’t want people clicking their heels and goosestepping to work. That’s just propaganda from the people in the oil industry who lost the competition for supplying fuel to the EU. Call it sour grapes if you want, because that’s what it is. Their pipeline failed, (Nabucco) and Putin’s won. End of story. It’s called capitalism. Deal with it.

And here’s another thing: The countries that South Stream would have served, do not have a back-up supplier to meet their growing gas needs. So by following Washington’s lead, they’ve basically shot themselves in the foot. Analysts figure that any replacement for Russian gas will probably be 30 percent more expensive then they would have paid Gazprom.

Hurrah for the US! Hurrah for stupidity!

The US has been determined to sabotage South Stream from the very beginning, mainly because Washington wants its corporations and banks to control the flow of gas to the EU market through privately-owned pipelines in Ukraine. That way they can rake in bigger profits for their moneybags shareholders. Without going into too much detail about the various methods the US has used to torpedo the project, there’s one story that’s worth a look. This is from Zero Hedge:

“…two months before the Ukraine government was overthrown the prime  minister of Bulgaria, Plamen Oresharski,  ordered a halt to work on the South Stream on the recommendation of the EU. The decision was announced after his talks with US senators.

“At this time there is a request from the European Commission, after which we’ve suspended the current works, I ordered it,” Oresharski told journalists after meeting with John McCain, Chris Murphy and Ron Johnson during their visit to Bulgaria on Sunday. “Further proceedings will be decided after additional consultations with Brussels.”

At the time McCain, commenting on the situation, said that “Bulgaria should solve the South Stream problems in collaboration with European colleagues,” adding that in the current situation they would want “less Russian involvement” in the project.

“America has decided that it wants to put itself in a position where it excludes anybody it doesn’t like from countries where it thinks it might have an interest, and there is no economic rationality in this at all,” (said)Ben Aris, editor of Business New Europe told RT.”  (“Europe Gives Bulgaria A Bank System Lifeline As Battle Over “South Stream” Pipeline Heats Up”, Zero Hedge)

Let me get this straight: Madman McCain strolls into town and immediately starts ordering people around telling them he wants  “less Russian involvement”, and that’s enough to bring South Stream to a screeching halt? Is that what you’re telling me?

Yep. Sure sounds like it.

Does that help you see what’s really going here? This isn’t about Putin. It’s about gas, and who’s going to profit from that gas, and in whose currency that gas will be denominated. That’s what it’s about. The rest of the nonsense about “Russian involvement” or terrorism or human rights or national sovereignty is just gibberish. The people who run this country (like McCain), don’t care about that kind of stuff.  What they care about is money; money and power. That’s it.

So what are they going to do now?  How are the big powerboys in Washington going to express their rage over this new threat created by Putin and Erdogan?

It doesn’t take a genius to figure that one out, after all, we’ve seen it a million times before.

They’re going to go after Erdogan hammer and tongs. That’s what they always do, isn’t it?

The only reason they haven’t started in already is because they’re getting their propaganda ducks in a row, which usually takes a day or two. But as soon as that’s taken care of, they’ll start dismantling old Recep one excruciating headline at a time. Erdogan is going to be the new Hitler and the greatest threat to humanity the world has ever seen.  You can bet on it.

Whistleblower Sibel Edmonds thinks that Washington has had-it-in for Erdogan a long time now, dating back to a  dust up he had with the CIA a few years back. In any event, she gives a pretty good account of what we can expect now that Erdogan is on Washington’s enemies list.  Here’s a clip from her post at Boiling Frogs:

“We all know what happens to those puppets when they end up in a rift with the CIA. Don’t we? The rift always brings expiration. Once a puppet is considered expired, then lo and behold, all of a sudden, the reversal branding and marketing begins: All old skeletons are dug out of the deep closets and leaked to the media. His previously overlooked human rights violations are looked at and scrutinized under a microscope. The terrorist card is brought into the equation. And the list goes on…

… All Empire-installed puppets and regimes must commit to the Empire’s commandments….Thou shall not violate the Imperial commandments. Because if you do, thou shall be disgraced, exposed, uninstalled, and may even be given death. All you have to do is look at the past century’s history. See what happens when an installed puppet gets too confident and inflicted with hubris, and ignores one or more commandments. This is when they are reborn as dictators, despots, torturers, and yes, terrorists. This is when their backyards get dug up to find a few grams of weapons of mass destruction.”…

No matter how we look at it Erdogan’s days are numbered … Anyone who ever dares to be this reckless will be punished and made an example for all other installed-puppets…”  (“Turkish PM Erdogan: The Speedy Transformation of an Imperial Puppet”, BFP)

So there it is. That’s what you can expect by the end of the week when the media starts their full-throttle demonizing of Erdogan, the man who dared to act independently and put the interests of his own people above those of the Washington mob bosses.  As anyone who’s followed US foreign policy for the last 60 years will tell you; that’s a big no-no.

Trotsky At The IMF

Does the Name “Strauss-Kahn” Ring a Bell?

The International Monetary Fund has finally admitted that it was wrong to recommend austerity as early as it did in 2010-2011. The IMF now agrees that it should have waited until the US and EU economies were on a sustainable growth-path before advising them to trim their budget deficits and reduce public spending.  According to a report issued by the IMF’s research division, the Independent Evaluation Office (IEO):  “IMF advocacy of fiscal consolidation proved to be premature for major advanced economies, as growth projections turned out to be optimistic…This policy mix was less than fully effective in promoting recovery and exacerbated adverse spillovers.”

Now there’s an understatement.

What’s so disingenuous about the IMF’s apology,  is that the bank knew exactly what the effects of its policy would be, but stuck with its recommendations to reward its constituents.  That’s what really happened. The only reason it’s trying to distance itself from those decisions now, is to make the public think it was all  just a big mistake.

But it wasn’t a mistake. It was deliberate and here’s the chart that proves it:

There it is, six years of policy in one lousy picture. And don’t kid yourself, the IMF played a critical role in this wealth-shifting fiasco. It’s job was to push for less public spending and deeper fiscal cuts while the Central Banks flooded the financial markets with liquidity (QE). The results are obvious, in fact, one of the Fed’s own officials, Andrew Huszar,  admitted that QE was a massive bailout for the rich.  “I’ve come to recognize the program for what it really is,” said Huszar who actually worked on the program, “the greatest backdoor Wall Street bailout of all time.”  There it is, straight from the horse’s mouth.

So now the IMF wants to throw a little dust in everyone’s eyes by making it look like it was a big goof-up by well-meaning but misguided bankers. And the media is helping them by its omissions.

Let me explain: Of the more than 455 articles on Google News covering the IMF’s mea culpa, not one piece refers to the man who was the IMF’s Managing Director at the time in question. Doesn’t that strike you as a bit odd?

Why would the media scrub any mention of Dominique Strauss-Kahn from its coverage? Could it be that (according to NPR):

“The IMF’s managing director wanted to give Greece, Portugal and Ireland the time needed to put their accounts in order, and he also argued for softening the austerity measures associated with the bailouts for those countries.

Greek economists say that under Strauss-Kahn’s leadership, the IMF was a counterbalance to the strict austerity policies favored by northern European leaders. In fact, according to the daily Le Monde, Strauss-Kahn is fond of calling those who argue for tighter austerity “fous furieux,” which roughly translates as “mad men.”

Strauss-Kahn’s view is that shock-therapy measures imposed on Greece and other European countries with sovereign debt crises will lead only to economic recession and severe social unrest.

Several commentators pointed out Monday that at a time of turmoil in the eurozone and division among European leaders, it was the IMF, under Strauss-Kahn’s leadership, that kept the eurozone’s rescue strategy on track.

The Financial Times said that the IMF’s single most important influence in the resolution of the eurozone crisis was political — amid a lack of political leadership, the paper said, the IMF filled a vacuum.
(IMF Chief’s Arrest Renews Euro Debt Crisis Fears, NPR)

Ah-ha! So Strauss-Kahn wasn’t on board with the IMF’s shock doctrine prescription. In fact, he was opposed to it.  So there were voices for sanity within the IMF, they just didn’t prevail in the policy debate.

But why would that be, after all, Strauss-Kahn was the IMF’s Managing Director, his views should have carried greater weight than anyone else’s, right?

Right. Except DSK got the ax for a sexual encounter at New York’s ritzy Sofitel Hotel. So the changes he had in mind never took place, which means that the distribution of wealth continued to flow upwards just like the moneybags constituents of the IMF had hoped for.

Funny how that works, isn’t it? Funny how it’s always the Elliot Spitzers, and the Scott Ritters, and the Dominique Strauss-Kahn’s who get nailed for their dalliances, but the big Wall Street guys never get caught.
Why is that?

The fact is, Strauss-Kahn was off the reservation and no longer supported the policies that the establishment elites who run the IMF wanted to see implemented.  They felt threatened by DSK’s Keynesian approach and wanted to get rid of him. That’s it in a nutshell.

Do you know why the bigwig plutocrats hated DSK?

It had nothing to do with his sexual acrobatics at the Sofitel Hotel. Nobody cares about that shite.   What they were worried about were his plans for the IMF which he laid out in a speech he gave at the Brookings Institution in April 2011, one month before he got the boot. The speech got very little attention at the time, but– for all practical purposes– it was DSK’s swan song.  And, I think you’ll see why.

The experience must have been a real shocker for the gaggle of tycoons and hangers-on who attend these typically-tedious gatherings. Instead of praise for “market discipline”, “labor flexibility” and “fiscal consolidation”, Strauss-Kahn delivered a rousing 30 minute tribute to leftist ideals and wealth-sharing sounding more like a young Leon Trotsky addressing the Forth International than a cold-hearted bureaucrat heading the world’s most notorious loan sharking operation. By the time the speech ended, I’m sure the knives were already being sharped for the wayward Managing Director. To put it bluntly, DSK’s goose was cooked. Here’s a clip from the speech that will help to explain why:

“…The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes”…
Not everyone will agree with the entirety of this statement. But what we have learnt over time is that unemployment and inequality can undermine the very achievements of the market economy, by sowing the seeds of instability…

.. the IMF cannot be indifferent to distribution issues…

Today, we need a similar full force forward response in ensuring that we get the recovery we need. And that means not only a recovery that is sustainable and balanced among countries, but also one that brings employment and fair distribution…

But growth alone is not enough. We need direct labor market policies…

Let me talk briefly about the second lung of the social crisis—inequality…IMF research also shows that sustainable growth over time is associated with a more equal income distribution…

We need policies to reduce inequality, and to ensure a fairer distribution of opportunities and resources. Strong social safety nets combined with progressive taxation can dampen market-driven inequality. Investment in health and education is critical. Collective bargaining rights are important, especially in an environment of stagnating real wages. Social partnership is a useful framework, as it allows both the growth gains and adjustment pains to be shared fairly…

We have also supported a tax on financial activities (and) organized jointly with the ILO … to better understand the policies behind job-creating growth…

Ultimately, employment and equity are building blocks of economic stability and prosperity, of political stability and peace. This goes to the heart of the IMF’s mandate. It must be placed at the heart of the policy agenda. Thank you very much.”   (The Global Jobs Crisis— Sustaining the Recovery through Employment and Equitable Growth, Dominique Strauss-Kahn, Managing Director IMF, April 13, 2011)

Can you imagine the chorus of groans that must have emerged from the crowd when Strauss-Kahn made his pitch for “progressive taxation”, “collective bargaining rights”, “protecting social safety nets”, “direct labor market policies” and  “taxes on financial activities”? And how do you think the crowd reacted when he told them he’d settled on a more enlightened way to distribute the wealth they’d accumulated over a lifetime of insider trading, crooked backroom deals and shady business transactions?

Do you think they liked that idea or do you suppose they lunged for their blood pressure medication before scuttling pell-mell towards the exits?

Let’s face it; Strauss-Kahn was headed in a direction that wasn’t compatible with the interests of the cutthroats who run the IMF. That much is clear. Now whether these same guys concocted the goofy “honey trap” at the Sofitel Hotel, we may never know.  But what we do know is this: If you’re Managing Director of the IMF, you’d better not use your power to champion “distribution” or collective bargaining rights or you’re wind up like Strauss-Kahn, dragged off to the hoosegow in manacles wondering where the hell you went wrong.

DSK was probably done-in by the people who hated his guts. Now they want to polish-up their image by rewriting history.

And, you know, they’re rich enough to pull it off, too.

Russia Invades Ukraine. Again. And Again. And Yet Again… Using Saddam’s WMD

“Russia reinforced what Western and Ukrainian officials described as a stealth invasion on Wednesday [August 27], sending armored troops across the border as it expanded the conflict to a new section of Ukrainian territory. The latest incursion, which Ukraine’s military said included five armored personnel carriers, was at least the third movement of troops and weapons from Russia across the southeast part of the border this week.”

None of the photos accompanying this New York Times story online showed any of these Russian troops or armored vehicles.

“The Obama administration,” the story continued, “has asserted over the past week that the Russians had moved artillery, air-defense systems and armor to help the separatists in Donetsk and Luhansk. ‘These incursions indicate a Russian-directed counteroffensive is likely underway’, Jen Psaki, the State Department spokeswoman, said. At the department’s daily briefing in Washington, Ms. Psaki also criticized what she called the Russian government’s ‘unwillingness to tell the truth’ that its military had sent soldiers as deep as 30 miles inside Ukraine territory.”

Thirty miles inside Ukraine territory and not a single satellite photo, not a camera anywhere around, not even a one-minute video to show for it. “Ms. Psaki apparently [sic] was referring to videos of captured Russian soldiers, distributed by the Ukrainian government.” The Times apparently forgot to inform its readers where they could see these videos.

“The Russian aim, one Western official said, may possibly be to seize an outlet to the sea in the event that Russia tries to establish a separatist enclave in eastern Ukraine.”

This of course hasn’t taken place. So what happened to all these Russian soldiers 30 miles inside Ukraine? What happened to all the armored vehicles, weapons, and equipment?

“The United States has photographs that show the Russian artillery moved into Ukraine, American officials say. One photo dated last Thursday, shown to a New York Times reporter, shows Russian military units moving self-propelled artillery into Ukraine. Another photo, dated Saturday, shows the artillery in firing positions in Ukraine.”

Where are these photographs? And how will we know that these are Russian soldiers? And how will we know that the photos were taken in Ukraine? But most importantly, where are the fucking photographs?

Why am I so cynical? Because the Ukrainian and US governments have been feeding us these scare stories for eight months now, without clear visual or other evidence, often without even common sense. Here are a few of the many other examples, before and after the one above:

• The Wall Street Journal (March 28) reported: “Russian troops massing near Ukraine are actively concealing their positions and establishing supply lines that could be used in a prolonged deployment, ratcheting up concerns that Moscow is preparing for another [sic] major incursion and not conducting exercises as it claims, US officials said.”
• “The Ukrainian government charged that the Russian military was not only approaching but had actually crossed the border into rebel-held regions.” (Washington Post, November 7)
• “U.S. Air Force Gen. Philip M. Breedlove told reporters in Bulgaria that NATO had observed Russian tanks, Russian artillery, Russian air defense systems and Russian combat troops enter Ukraine across a completely wide-open border with Russia in the previous two days.” (Washington Post, November 13)
• “Ukraine accuses Russia of sending more soldiers and weapons to help rebels prepare for a new offensive. The Kremlin has repeatedly denied aiding the separatists.” (Reuters, November 16)

Since the February US-backed coup in Ukraine, the State Department has made one accusation after another about Russian military actions in Eastern Ukraine without presenting any kind of satellite imagery or other visual or documentary evidence; or they present something that’s very unclear and wholly inconclusive, such as unmarked vehicles, or unsourced reports, or citing “social media”; what we’re left with is often no more than just an accusation. The Ukrainian government has matched them.

On top of all this we should keep in mind that if Moscow decided to invade Ukraine they’d certainly provide air cover for their ground forces. There has been no mention of air cover.

This is all reminiscent of the numerous stories in the past three years of “Syrian planes bombing defenseless citizens”. Have you ever seen a photo or video of a Syrian government plane dropping bombs? Or of the bombs exploding? When the source of the story is mentioned, it’s almost invariably the rebels who are fighting against the Syrian government. Then there’s the “chemical weapon” attacks by the same evil Assad government. When a photo or video has accompanied the story I’ve never once seen grieving loved ones or media present; not one person can be seen wearing a gas mask. Is it only children killed or suffering? No rebels?

And then there’s the July 17 shootdown of Malaysia Flight MH17, over eastern Ukraine, taking 298 lives, which Washington would love to pin on Russia or the pro-Russian rebels. The US government – and therefore the US media, the EU, and NATO – want us all to believe it was the rebels and/or Russia behind it. The world is still waiting for any evidence. Or even a motivation. Anything at all. President Obama is not waiting. In a talk on November 15 in Australia, he spoke of “opposing Russia’s aggression against Ukraine – which is a threat to the world, as we saw in the appalling shoot-down of MH17”. Based on my reading, I’d guess that it was the Ukranian government behind the shootdown, mistaking it for Putin’s plane that reportedly was in the area.

Can it be said with certainty that all the above accusations were lies? No, but the burden of proof is on the accusers, and the world is still waiting. The accusers would like to create the impression that there are two sides to each question without actually having to supply one of them.

The United States punishing Cuba

For years American political leaders and media were fond of labeling Cuba an “international pariah”. We haven’t heard that for a very long time. Perhaps one reason is the annual vote in the United Nations General Assembly on the resolution which reads: “Necessity of ending the economic, commercial and financial embargo imposed by the United States of America against Cuba”. This is how the vote has gone (not including abstentions):

 
This year Washington’s policy may be subject to even more criticism than usual due to the widespread recognition of Cuba’s response to the Ebola outbreak in Africa.

Each fall the UN vote is a welcome reminder that the world has not completely lost its senses and that the American empire does not completely control the opinion of other governments.

Speaking before the General Assembly before last year’s vote, Cuban Foreign Minister Bruno Rodriguez declared: “The economic damages accumulated after half a century as a result of the implementation of the blockade amount to $1.126 trillion.” He added that the blockade “has been further tightened under President Obama’s administration”, some 30 US and foreign entities being hit with $2.446 billion in fines due to their interaction with Cuba.

However, the American envoy, Ronald Godard, in an appeal to other countries to oppose the resolution, said:

The international community … cannot in good conscience ignore the ease and frequency with which the Cuban regime silences critics, disrupts peaceful assembly, impedes independent journalism and, despite positive reforms, continues to prevent some Cubans from leaving or returning to the island. The Cuban government continues its tactics of politically motivated detentions, harassment and police violence against Cuban citizens.

So there you have it. That is why Cuba must be punished. One can only guess what Mr. Godard would respond if told that more than 7,000 people were arrested in the United States during the Occupy Movement’s first 8 months of protest in 2011-12 ; that many of them were physically abused by the police; and that their encampments were violently destroyed.

Does Mr. Godard have access to any news media? Hardly a day passes in America without a police officer shooting to death an unarmed person.

As to “independent journalism” – What would happen if Cuba announced that from now on anyone in the country could own any kind of media? How long would it be before CIA money – secret and unlimited CIA money financing all kinds of fronts in Cuba – would own or control most of the media worth owning or controlling?

The real reason for Washington’s eternal hostility toward Cuba has not changed since the revolution in 1959 – The fear of a good example of an alternative to the capitalist model; a fear that has been validated repeatedly over the years as many Third World countries have expressed their adulation of Cuba.

How the embargo began: On April 6, 1960, Lester D. Mallory, US Deputy Assistant Secretary of State for Inter-American Affairs, wrote in an internal memorandum: “The majority of Cubans support Castro … The only foreseeable means of alienating internal support is through disenchantment and disaffection based on economic dissatisfaction and hardship. … every possible means should be undertaken promptly to weaken the economic life of Cuba.” Mallory proposed “a line of action which … makes the greatest inroads in denying money and supplies to Cuba, to decrease monetary and real wages, to bring about hunger, desperation and overthrow of government.”

Later that year, the Eisenhower administration instituted its suffocating embargo against its everlasting enemy.

The United States judging and punishing the rest of the world

In addition to Cuba, Washington currently is imposing economic and other sanctions against Burma, Democratic Republic of the Congo, Iran, China, North Korea, South Korea, United Arab Emirates, Pakistan, Sri Lanka, Switzerland, Turkey, Germany, Malaysia, South Africa, Mexico, South Sudan, Sudan, Russia, Syria, Venezuela, India, and Zimbabwe. These are sanctions mainly against governments, but also against some private enterprises; there are also many other sanctions against individuals not included here.

Imbued with a sense of America’s moral superiority and “exceptionalism”, each year the State Department judges the world, issuing reports evaluating the behavior of all other nations, often accompanied by sanctions of one kind or another. There are different reports rating how each lesser nation has performed in the previous year in areas such as religious freedom, human rights, the war on drugs, trafficking in persons, and sponsors of terrorism. The criteria used in these reports are often political. Cuba, for example, is always listed as a sponsor of terrorism whereas anti-Castro exile groups in Florida, which have committed literally hundreds of terrorist acts over the years, are not listed as terrorist groups or supporters of such.

Cuba, which has been on the sponsor-of-terrorism list longer (since 1982) than any other country, is one of the most glaring anomalies. The most recent State Department report on this matter, in 2012, states that there is “no indication that the Cuban government provided weapons or paramilitary training to terrorist groups.” There are, however, some retirees of Spain’s Basque terrorist group ETA (which appears on the verge of disbanding) in Cuba, but the report notes that the Cuban government evidently is trying to distance itself from them by denying them services such as travel documents. Some members of the Revolutionary Armed Forces of Colombia (FARC) have been allowed into Cuba, but that was because Cuba was hosting peace talks between the FARC and the Colombian government, which the report notes.

The US sanctions mechanism is so effective and formidable that it strikes fear (of huge fines) into the hearts of banks and other private-sector organizations that might otherwise consider dealing with a listed state.

Some selected thoughts on American elections and democracy

In politics, as on the sickbed, people toss from one side to the other, thinking they will be more comfortable.
– Johann Wolfgang von Goethe (1749-1832)

• 2012 presidential election:
  223,389,800 eligible to vote
  128,449,140 actually voted
  Obama got 65,443,674 votes
  Obama was thus supported by 29.3% of eligible voters
• There are 100 million adults in the United States who do not vote. This is a very large base from which an independent party can draw millions of new votes.
• If God had wanted more of us to vote in elections, he would give us better candidates.
• “The people can have anything they want. The trouble is, they do not want anything. At least they vote that way on election day.” – Eugene Debs, American socialist leader (1855-1926)
• “If persons over 60 are the only American age group voting at rates that begin to approximate European voting, it’s because they’re the only Americans who live in a welfare state – Medicare, Social Security, and earlier, GI loans, FHA loans.” – John Powers
• “The American political system is essentially a contract between the Republican and Democratic parties, enforced by federal and state two-party laws, all designed to guarantee the survival of both no matter how many people despise or ignore them.” – Richard Reeves (1936- )
• The American electoral system, once the object of much national and international pride, has slid inexorably from “one person, one vote”, to “one dollar, one vote”.
• Noam Chomsky: “It is important to bear in mind that political campaigns are designed by the same people who sell toothpaste and cars. Their professional concern in their regular vocation is not to provide information. Their goal, rather, is deceit.”
• If the Electoral College is such a good system, why don’t we have it for local and state elections?
• “All the props of a democracy remain intact – elections, legislatures, media – but they predominantly function at the service of the oligarchy.” – Richard Wolff
• The RepDem Party holds elections as if they were auctions; indeed, an outright auction for the presidency would be more efficient. To make the auction more interesting we need a second party, which must at a minimum be granted two privileges: getting on the ballot in all 50 states and taking part in television debates.
• The US does in fact have two parties: the Ins and the Outs … the evil of two lessers.
• Alexander Cockburn: “There was a time once when ‘lesser of two evils’ actually meant something momentous, like the choice between starving to death on a lifeboat, or eating the first mate.”
• Cornel West has suggested that it’s become difficult to even imagine what a free and democratic society, without great concentrations of corporate power, would look like, or how it would operate.
• The United States now resembles a police state punctuated by elections.
• How many voters does it take to change a light bulb? None. Because voters can’t change anything.
• H.L. Mencken (1880-1956): “As democracy is perfected, the office represents, more and more closely, the inner soul of the people. We move toward a lofty ideal. On some great and glorious day the plain folks of the land will reach their heart’s desire at last, and the White House will be adorned by a downright moron.”
• “All elections are distractions. Nothing conceals tyranny better than elections.” – Joel Hirschhorn
• In 1941, one of the country’s more acerbic editors, a priest named Edward Dowling, commented: “The two greatest obstacles to democracy in the United States are, first, the widespread delusion among the poor that we have a democracy, and second, the chronic terror among the rich, lest we get it.”
• “Elections are a necessary, but certainly not a sufficient, condition for democracy. Political participation is not just a casting of votes. It is a way of life.” – UN Human Development Report, 1993
• “If you don’t vote, you can’t complain!” I reply, “You have it backwards. If you DO vote, you can’t complain. You asked for it, and they’re going to give it to you, good and hard.”
• “How to get people to vote against their interests and to really think against their interests is very clever. It’s the cleverest ruling class that I have ever come across in history. It’s been 200 years at it. It’s superb.” – Gore Vidal
• We can’t use our democracy/our vote to change the way the economy functions. This is very anti-democratic.
• What does a majority vote mean other than that the sales campaign was successful?
• Roman Emperor Marcus Aurelius: “The opinion of 10,000 men is of no value if none of them know anything about the subject.”
• We do have representative government. The question is: Who does our government represent?
• “On the day after the 2002 election I watched a crawl on the bottom of the CNN news screen. It said, ‘Proprietary software may make inspection of electronic voting systems impossible.’ It was the final and absolute coronation of corporate rights over democracy; of money over truth.” – Mike Ruppert, RIP
• “It’s not that voting is useless or stupid; rather, it’s the exaggeration of the power of voting that has drained the meaning from American politics.” – Michael Ventura
• After going through the recent national, state and local elections, I am now convinced that taxation without representation would have been a much better system.
• “Ever since the Constitution was illegally foisted on the American people we have lived in a blatant plutocracy. The Constitution was drafted in secret by a self-appointed elite committee, and it was designed to bring three kinds of power under control: Royalty, the Church, and the People. All were to be subjugated to the interests of a wealthy elite. That’s what republics were all about. And that’s how they have functioned ever since.” – Richard K. Moore
• “As demonstrated in Russia and numerous other countries, when faced with a choice between democracy without capitalism or capitalism without democracy, Western elites unhesitatingly embrace the latter.” – Michael Parenti
• “The fact that a supposedly sophisticated electorate had been stampeded by the cynical propaganda of the day threw serious doubt on the validity of the assumptions underlying parliamentary democracy as a whole.” – British Superspy for the Soviets Kim Philby (1912-1988), explaining his reasons for becoming a Communist instead of turning to the Labour Party
• US Supreme Court Justice Louis Brandeis (1856-1941): “We may have democracy in this country, or we may have wealth concentrated in the hands of a few, but we cannot have both.”
• “We don’t need to run America like a business or like the military. We need to run America like a democracy.” – Jill Stein, Green Party presidential candidate 2012

Notes

1. Democracy Now!, October 30, 2013
2. Huffingfton Post, May 3, 2012
3. Department of State, Foreign Relations of the United States, 1958-1960, Volume VI, Cuba(1991), p.885 (online here)
4. For the complete detailed list, see U.S. Department of State, Nonproliferation Sanctions
5. U.S. Department of State, “Country Reports on Terrorism 2012, Chapter 3: State Sponsors of Terrorism,” May 20, 2013

What’s Going On With Our Police?

What’s going on with our police? More and more, it seems that our men in blue have been transformed from a friendly neighborhood peace office, whose mission is to protect and serve, to a hostile military force, whose mission is to harass and intimidate.

I am going to broach a subject in this syndicated column this week that people such as me are not supposed to talk about. By people such as me, I mean Christians, “conservatives,” Republican-types, etc. “We” are NEVER supposed to criticize the police–not in any shape, manner, or form. ANY criticism of all things police (and military, for that matter) is immediately deemed to be “left-wing,” “unpatriotic,” etc. To criticize the police in any way brings immediate and vehement accusations that one is against law and order or is a “bleeding heart liberal,” etc. But, in all probability, the vast majority of “our” folks will simply ignore this column. My observation is “WE” are mostly very closed-minded and don’t tolerate ideas that are outside the box of what is heard on FOX NEWS or from today’s milquetoast preachers.

However, it is an absolute fact that today’s law enforcement agencies are more and more being militarized and are becoming more and more hostile to the American citizenry. More and more, police officers view the American people as “enemy combatants” and are developing a deeply imbedded “us versus them” mindset. More and more, police officers are behaving like soldiers, not peace officers. Examples of police abuse are becoming more and more frequent and more and more severe. If this breach of the public trust is not reined in soon, it is going to get very ugly in this country.

When I grew up, we were all taught that policemen were our friends and that we could always trust them. Hardly anyone teaches that to their children anymore–and for good reason. Too many policemen have abused and misused the trust that the American people have placed in them. I’m sorry if you don’t like to hear that–I don’t enjoy saying that–but it is the honest truth.

More and more often, routine traffic stops quickly escalate into full-fledged police abuse over the most innocent conduct. Too many police officers today have developed an “I-have-a-badge-and-a-gun-and-therefore-I-can-do-anything-I-want” attitude. More and more police officers seem to feel that the law they are sworn to enforce is whatever they determine the law to be. More and more often, bringing up constitutional rights to a police officer today or merely questioning what a police officer is doing often invites physical beating, incarceration, or even death. This is especially true if one attempts to film a police officer.

One does not have to search long to find limitless examples of what I am talking about.

In the State of New York, a police sergeant is under investigation for slapping around a law-abiding young man simply because he asked the officer why he was demanding to search his vehicle. After the young man questioned the sergeant, who is a 27-year veteran of the police force, the officer slapped the man and yelled that he could “rip your f****** head off and s*** down your neck.” The only reason an internal investigation is going on is because another passenger video-recorded the event.

See the report:

In Philadelphia, Pennsylvania, a police officer threatened to “beat the s***” out of a young man for simply looking at him. That’s right. All the young man did was look at him as he walked down the street.

In Miami, Florida, a police officer went ballistic with rage after a young man, whom he had just given a traffic ticket to, said, “God bless you.” That simple remark set off a profanity-laced tirade from the officer in which he took out his handcuffs and threatened to put the young man in jail.

See the report:

In East Dublin, Georgia, drug task force police officers gunned down an innocent grandfather in his own home on the word of a self-confessed meth addict. Police executed a no-knock invasion of the home and killed the innocent 59-year-old businessman who had armed himself to protect his family from what he could only determine were armed home invaders. The resident was killed in a hail of gunfire by police. He was completely innocent of any drug offenses. Police acted as judge, jury, and executioner of the poor man.

See the report:

In Boynton Beach, Florida, two young men were pulled over by police in a traffic stop. One of the young men began to video-record the officers. Quickly, the policemen became enraged and began physically assaulting the young men. One officer pointed his pistol at the boys and threatened to immediately shoot them. At no point did the young men display a weapon or physically assault the officers. Granted, the young men acted rudely and disrespectfully. But since when in America is cockiness and rudeness a potential death sentence?

But the worst part of the story came afterward when the chief of police issued a statement defending the conduct of the officers. Chief Jeffrey Katz viewed the video tape (recorded by a passenger in the car) and said the following: “When I watch this video, I don’t see a car full of young men who are behaving in a manner consistent with FEAR OF THE POLICE.” (Emphasis added)

See the report here:

Did you get that? The police chief and his officers were angry that the young men didn’t FEAR the police enough.

So, that’s it. We are supposed to FEAR the police. Really? Then, pray tell, who are the police supposed to fear? My father didn’t teach me to fear the police. He taught me to respect the police. And he taught me that the police were my friends. He did not teach me that I had to fear for my rights and my very life every time I’m pulled over for a traffic stop. And that’s not the way that Sheriff Cliff Arnold’s deputies behaved while I was growing up.

And, again in the State of Georgia, Henry County Police forced a small group of fifth graders to the ground at gunpoint as they attempted to build a tree fort in their neighborhood. Can you imagine? Throwing 11-year-old children to the ground and putting a gun to their heads for building a tree fort? This is reality in modern America’s burgeoning Police State.

See the report here:

These kinds of reports are virtually endless.

Am I suggesting that all sheriff’s deputies and police officers behave in such fashion? Of course not! I am confident that the vast majority of our men and women in blue (and brown for sheriff’s deputies) are honest, law-abiding people who are doing their best to keep the peace and who respect the rights of the citizens they are charged to serve. But I am saying that the training procedures and mindset of our police agencies nationwide IS quickly developing into a police-state mentality. And the everyday occurrences such as those listed above absolutely prove my assertion. It is also an undeniable fact that more and more police training omits teaching the Constitution and, accordingly, more and more police officers are truly ignorant of the rights and liberties of the American people under the U.S. Constitution.

Based on current statistical data, you and I are eight times more likely to be killed by a police officer than we are an actual terrorist. Since 2001, over 5,000 American citizens have been killed by policemen. How many of these deaths were truly justified we will never know as police departments and courts of law have a proven track record of hardly ever charging an officer with wrongful death.

Add to the above the fact that even many minor incidents will often result in SWAT teams being deployed. In fact, Eastern Kentucky University professor Peter Kraska documents research showing, “There has been more than a 1,400% increase in the total number of police paramilitary deployments, or callouts, between 1980 and 2000. Today, an estimated 45,000 SWAT-team deployments are conducted yearly among those departments surveyed; in the early 1980s there was an average of about 3,000.”

See Kraska’s report here:

Has violent crime increased 1,400 percent during that time? Not at all. In fact, for the last several years, violent crime has been decreasing to the point that currently it is at record lows. So, how can the need for SWAT teams increase by 1,400 percent? It is the result of Washington, D.C., deliberately militarizing our police agencies.

I am convinced that the Department of Homeland Security (DHS) is intentionally turning our State and local police agencies against us. Washington, D.C., is deliberately militarizing our police agencies. Give them military equipment, weapons, training, etc., and they will start acting like soldiers, not policemen. And that is exactly what is happening.

The phrase that we hear constantly repeated today by law enforcement personnel and spokesmen is “the safety of the officer.” But wait a minute! The sworn duty of a police officer is to obey the Constitution (including the Bill of Rights), which is designed to protect the rights, liberties, and safely of the American people. The role of the police officer is to protect the safety of the public. Any man or woman who volunteers to put on a badge should be consciously willing to put his or her life on the line to protect the public. That’s what their job is all about. And no one forces them to take this risk; they take it of their own volition.

Of course the men and women of law enforcement want to go home at the end of their shift. But so do the people of their community. Policemen are not the only ones who face hostility and threats of violence. I have had my life threatened too many times to count. I have even been shot at. (I would venture to say that the vast majority of police officers in the country have never actually been shot at.) I have had my family threatened. And none of us wear Kevlar vests and helmets and can call backup with the push of a button (calling 911 is not the same as a policeman calling for back up–not even close).

If the safety of the officer is the primary duty of policemen, they should just shoot suspects on sight and eliminate the threat before it exists. And that is pretty much what they do in totalitarian countries. But this is America where the rule of law and the rights of the individual reign supreme. In a free country, people are judged to be innocent until proven guilty. Plus, the only lawful reason a police officer has to fire his weapon at someone is for the same reason that the rest of us can do so: for self-defense against an imminent threat to their (our) lives.

Again, the impetus of the militarization of police is coming directly from DHS. In addition to receiving military equipment, hardware, attack helicopters, tanks, etc., from the DOD and DHS, more and more often U.S. military Special Forces troops are being employed to train our local police personnel. To the miscreants inside the Beltway, the American people are seen as the real terrorists, not foreign enemies or the criminal gang members that are pouring across our southern border. In truth, DHS is using our local police agencies in much the same way that the Nazi government used the local police agencies inside the occupied countries of Europe. And, unfortunately, it seems that most of our Christians, “conservatives,” and Republican-types are completely oblivious to the problem.

I applaud the numerous constitutionalist sheriffs around the country who are doing their best to maintain constitutional government within their counties and who are courageously resisting the efforts of DHS to turn their deputies into Storm Troopers. I just wish we had a lot more of these stalwart defenders of liberty. The American people are not doing a very good job of electing these kinds of patriots to public office, including the sheriff’s office. But on the whole, our sheriff’s offices around the country are far less oppressive than their counterparts in city police departments. The obvious reason for this is due to the fact that, while the sheriff is a constitutionally elective office, our chiefs of police are usually appointed by some sort of city council and are not answerable directly to the public. Bureaucrats are seldom known for any kind of allegiance to constitutional government.

And, again, this column is not an indictment against any of our law-abiding, liberty-loving, policemen and sheriff’s deputies. And I suggest that any policeman who would take umbrage at this column is subconsciously incriminating him or herself. Of all people, police officers, themselves, should be the most angry when their fellow officers betray the public trust and violate fundamental rights. A bad cop reflects badly on good cops. Therefore, instead of reacting angrily against a column such as this, it should behoove honest policemen to lead the charge against this kind of unlawful conduct being committed by their brethren in blue. They should also be the ones to most doggedly resist the militarization of their agencies by DHS.

However, this column IS an indictment against the current trend within law enforcement to become increasingly federalized, militarized, and Gestapo-like. I suppose it is also an indictment against the American people (including Christians, “conservatives,” and Republican-types) who seem to be blind and apathetic to what is becoming a major problem within our country.

Subprime Loans And Auto Sales: Debt On Wheels

“It’s not the underlying economics that’s driving things, it’s central bank liquidity.”

— Matt King, Citigroup

Soaring auto sales are not so much a sign of a strong economy as they are an indication of financial hanky-panky. We saw this same type of fakery play out in housing between 2004 – 2006, when prices went through the roof due to a mortgage-lending scam (“subprime”) that crashed the stock market and sent the economy reeling. Now the bigtime money guys are at it again, writing up auto loans for anyone who can sit upright in a chair and scribble an “X” on the dotted line. As a result, car sales have surged to over 16 million for the last 6 months. (A full 7 million more than the low point in January, 2009.)   And it’s not hard to see why either. The finance gurus are packaging these sketchy subprimes into bonds, offloading them on eager investors, and recycling the profits into more crappy loans. It’s a perfect circle and it won’t end until the loans start blowing up, jittery investors head for the exits,  and Uncle Sugar rides to the rescue with more bailouts.

But we’re getting ahead of ourselves.  First take a look at these charts by House of Debt which shows the disparity between auto spending and other types of spending since the end of the slump in 2009.

House of Debt:  “New auto purchases have driven the consumer spending recovery to a large degree. The chart below shows the spending recovery for new auto sales and for all other retail spending…

From 2009 to 2013, spending on new autos increased by 40% in nominal terms. All other spending increased by only 20%. Further, excluding autos, 2013 saw lower growth in nominal retail spending than 2012…

The concern is that a lot of auto purchases are being fueled with debt, given a strong recovery in the auto loan market. Below is the net flow of auto loans from 2002 to 2013. It is a net flow because it includes pay downs in addition to new originations. As it shows, auto lending in 2012 and 2013 tops any other year during the previous expansion from 2002 to 2007 (although it is still below the amount of new auto loans in 2000 and 2001).

(“Another Debt-Fueled Spending Spree?” House of Debt) 

How about that? So there’s a bigger debt bubble in auto loans today than there was before the bust. But why? Is it because demand is strong,  jobs are plentiful, wages are rising, the economy is growing, and people are optimistic about the future?

Heck, no. It’s because rates are low, credit is easy, and dealers are ready to put anyone with a license and a heartbeat into a brand-spanking new car no questions asked.  Here are the details from an article in the New York Times titled “In a Subprime Bubble for Used Cars, Borrowers Pay Sky-High Rates” by Jessica Silver-Greenberg and Michael Corkery:

”Auto loans to people with tarnished credit have risen more than 130 percent in the five years since the immediate aftermath of the financial crisis, with roughly one in four new auto loans last year going to borrowers considered subprime — people with credit scores at or below 640.

The explosive growth is being driven by some of the same dynamics that were at work in subprime mortgages. A wave of money is pouring into subprime autos, as the high rates and steady profits of the loans attract investors. Just as Wall Street stoked the boom in mortgages, some of the nation’s biggest banks and private equity firms are feeding the growth in subprime auto loans by investing in lenders and making money available for loans.

And, like subprime mortgages before the financial crisis, many subprime auto loans are bundled into complex bonds and sold as securities by banks to insurance companies, mutual funds and public pension funds — a process that creates ever-greater demand for loans.

The New York Times examined more than 100 bankruptcy court cases, dozens of civil lawsuits against lenders and hundreds of loan documents and found that subprime auto loans can come with interest rates that can exceed 23 percent. The loans were typically at least twice the size of the value of the used cars purchased, including dozens of battered vehicles with mechanical defects hidden from borrowers. Such loans can thrust already vulnerable borrowers further into debt, even propelling some into bankruptcy, according to the court records, as well as interviews with borrowers and lawyers in 19 states.

In another echo of the mortgage boom, The Times investigation also found dozens of loans that included incorrect information about borrowers’ income and employment, leading people who had lost their jobs, were in bankruptcy or were living on Social Security to qualify for loans that they could never afford.” (“In a Subprime Bubble for Used Cars, Borrowers Pay Sky-High Rates”, New York Times)

Can you believe that this kind of chicanery is going on in broad daylight without the regulators stepping in? Think about it for a minute: If the NYT’s journalists can find “dozens of loans that included incorrect information about borrowers’ income and employment”, then why can’t the government regulators? It’s ridiculous. What we’re talking about here is a new version of “liar’s loans” where dealers are helping people who don’t have the means to repay the debt, to fudge the details on their loan application so they can drive off in a shiny new Impala.

Haven’t we seen this movie before?

Here’s more from USA Today: “In the first quarter of 2014, 24.9% of all new-car loans were 73 to 84 months long. Four years ago, less than 10% of loans were that long. In fact, such lengthy terms have pulled the average new-car loan to 66 months. That’s an all-time record.”

7 years to pay off a car?  You got to be kidding me? It’s like a second mortgage. And there’s more, too. The average monthly payment and average amount financed hit record highs in the first quarter too. This is from Auto News:

“The average monthly new-vehicle payment was $474 in the first quarter, up 3.3 percent from a year ago. The average monthly used-vehicle payment was $352, up 1.1 percent, Experian Automotive said.

Also in the first quarter, the average amount financed on a new-vehicle loan was $27,612, an increase of $964, or 3.6 percent. For used vehicles, the average amount financed was $17,927, up $395 or 2.3 percent.”

(“Auto loan terms, monthly payments hit high in Q1, Experian says“, Auto News)

So Americans are not just loading on more debt, they’re also assuming that they’re financial situation is going to be stable enough to make these large payments well into the future.  Good luck with that.

It’s also worth noting that, in many transactions, dealers are actually lending more than the value of the vehicle. According to Reuters David Henry,

“The average loan-to-value on new cars rose to 110.6 percent… On used cars it rose to 133.2 percent…

Auto lenders often provide loans that exceed the value of cars they are financing because borrowers want cash to pay sales taxes and fees.”

(“U.S. car buyers borrow more as rates fall and standards loosen“, David Henry, Reuters)

Let me see if I got this straight: You walk onto a car lot without a dime in your pocket, and drive off in a brand new car with everything paid for upfront? Such a deal! Can you see why we think that the sales numbers are a big fake?  This isn’t the sign of a strong economy. It’s the sign of another gigantic credit bubble rip-off. But what do the dealers get out of this thing? Is it really worth their while to botch the underwriting when they know that eventually they’ll have to repossess the vehicle? Sure, it is, because there’s big money in stuffing people into loans they can’t afford.

Here’s how the Times explains it: ”Auto loans to borrowers considered subprime, those with credit scores at or below 640, have spiked in the last five years. The jump has been driven in large part by the demand among investors for securities backed by the loans, which offer high returns at a time of low interest rates. Roughly 25 percent of all new auto loans made last year were subprime, and the volume of subprime auto loans reached more than $145 billion in the first three months of this year.”

Bingo. So not only do they make dough on the high interest rates they charge their subprime borrowers, (Sometimes 23 percent or more.) they also make it by selling the loan to investors who are eager to buy any manner of crappy bond provided it offers a better return than US Treasuries. This is the mess Bernanke created by fixing interest rates at zero for nearly 6 years.  Zirp (zero interest rate policy) unavoidably leads to excessive risk taking by yield-crazed speculators.    The voracious appetite for subprime securities (ABS–Asset-Backed Securities) has even surprised the bond issuers who are constantly beating the bushes looking for sketchier products.  This is from the same article by the NY Times:

“Investors, seeking a higher return when interest rates are low, recently flocked to buy a bond issue from Prestige Financial Services of Utah. Orders to invest in the $390 million debt deal were four times greater than the amount of available securities.

What is backing many of these securities? Auto loans made to people who have been in bankruptcy.

An affiliate of the Larry H. Miller Group of Companies, Prestige specializes in making the loans to people in bankruptcy, packaging them into securities and then selling them to investors.

“It’s been a hot space,” Richard L. Hyde, the firm’s chief operating officer, said during an interview in March. Investors are betting on risky borrowers. The average interest rate on loans bundled into Prestige’s latest offering, for example, is 18.6 percent, up slightly from a similar offering rolled out a year earlier…. To meet that rising demand, Wall Street snatches up more and more loans to package into the complex investments.” (NYT)

HA! Now there’s a good way to feather the old retirement fund; load up on bonds made up of loans to people who’ve gone bust.

This is the impact that zero rates have on investor behavior. The abundance of cheap and plentiful liquidity invariably leads to trouble. And there are victims in this Central Bank-authored gold rush too, namely the unsophisticated borrowers who pay prohibitively high rates on beater vehicles that are typically worth less-than-half the value of the loan. (Check the NYT article for examples.)

The Times also notes that the ratings agencies have been playing along with the finance companies just as they did during the subprime mortgage fiasco. Here’s more from the Times:

“Rating agencies, which assess the quality of the bonds, are helping fuel the boom. They are giving many of these securities top ratings, which clears the way for major investors, from pension funds to employee retirement accounts, to buy the bonds. In March, for example, Standard & Poor’s blessed most of Prestige’s bond with a triple-A rating. Slices of a similar bond that Prestige sold last year also fetched the highest rating from S.&P. A large slice of that bond is held in mutual funds managed by BlackRock, one of the world’s largest money managers.” (NYT)

Ask yourself this, dear reader: How are the ratings agencies able to give “many of these securities top ratings”, when the investigators from the Times found “dozens of loans that included incorrect information about borrowers’ income and employment, leading people who had lost their jobs, were in bankruptcy or were living on Social Security to qualify for loans that they could never afford”?

Let’s face it: The regulatory changes in Dodd-Frank haven’t done a damn thing to protect the victims of these dodgy subprime schemes. Borrowers and investors are both getting gouged by a system that only protects the interests of the perpetrators. The sad fact is that nothing has changed. The system is just as corrupt as it was when Lehman went down.

So, how long can this go on before the market implodes?

According to the Times:

“financial firms are beginning to see signs of strain. In the first three months of this year, banks had to write off as entirely uncollectable an average of $8,541 of each delinquent auto loan, up about 15 percent from a year earlier, according to Experian…

In another sign of trouble ahead, repossessions, while still relatively low, increased nearly 78 percent to an estimated 388,000 cars in the first three months of the year from the same period a year earlier, according to the latest data provided by Experian. The number of borrowers who are more than 60 days late on their car payments also jumped in 22 states during that period….” (NYT)

(According to Amber Nelson at loan.com: “In the second quarter, the value of all auto loans late by 60 days or more was more than $4 billion, up 27 percent from the prior year, according to Experian.”)

So, yeah, the trouble is mounting, but that doesn’t mean that this madness won’t continue for some time to come. It probably will. It’ll probably drag-on until the economy turns south and more borrowers start falling behind on their payments. That will lead to more defaults, heavier losses on auto bonds, and a hasty race to the exits by investors. Isn’t that how the subprime mortgage scam played out?

Indeed. But at least there are signs of hope on the regulatory front. Check out this clip from an article at CNBC:

“In August, both Santander Consumer and General Motors Financial Co. acknowledged receiving Justice Department subpoenas in connection with a probe over possible violations of civil-fraud laws. And the Consumer Financial Protection Bureau and the Securities and Exchange Commission have both stepped up their scrutiny of the auto-loan market.” (“New debt crisis fear: Subprime auto loans“, CNBC)

So the SEC, the DOJ, and the CFPB are actually investigating the underwriting practices of these behemoth finance companies to see if they violated “civil fraud laws”?

Will wonders never cease?

Just don’t hold your breath waiting for convictions.

The Enemy Within

Sabotage…

It was several decades ago when I began to understand that there were powerful forces loose in the world bent on destroying the United States of America.  It happened when our markets were thrown open to foreign goods and our domestic industry was forced into a contrived world market.

I was working for a company that provided fabricated steel products to American manufacturers.  When our markets were opened the U. S. companies that supplied our raw material began to shut down their operations being unable to compete with foreign manufactures.  It was at this point that I began to wonder why powerful forces in our nation would intentionally harm their fellow citizens.

The process of using unreasonable competition to export manufacturing and technical knowhow has continued. Knowledgeable writers and film makers have written and produced many films and articles documenting the results of this malignant intent. During the 1930s a popular radio show called “The Shadow”,  involved an invisible person that could enter the room, hear all that was being said but never be seen.  Our nation is being controlled by a Shadow Government.

In reviewing Tom Engelhardt’s new book “Shadow Government” Philip Giraldi writes “Shadow government operates invisibly and is accountable to no one —,.”  From his review it appears that Engelhardt has confirmed the existence of a shadow government and enumerated many of it policies and machinations but failed to identify it.  Read the review here. http://www.unz.com/article/skewering-the-shadow-government/

When lists of the wealthiest families in the world are compiled the name of Rothschild is always missing.  The Rothschild wealth is shadow wealth.  Their dominant presence in world financial circles is usually hidden.

Recently, I ran across an article by Lew Rockwell www.lewrockwell.com  about an attack on his Website by the Neocons.  If the Neocons have the power Rockwell describes (I believe they do.) they are surely a major force in the Shadow government of the United States of America.  The article is entitled “The Neocons Hate Our Guts”

It begins with these words::

“The most despicable group of political gangsters in America want to destroy this site, and everything it stands for. Who are they? The neoconservatives.”

“Originating in Trotskyism, through their cells in New York City in the 1930s, this bunch now controls much of the American right, on which they have fastened their ideology of constant war, the police state, the welfare state, militarism, and Soviet-like thought control. The Trots sought, and seek, world power for themselves, through bloody world revolution. Trotsky even sought to have the state determine who could marry and who could have children, long before Hitler, to create a new, subservient man.”

“If you read their own books, they are open about their devotion to the “noble lie,” an idea they got from Plato. It is a virtue, they claim, to lie to the people, so that the right characters stay in power, under the guidance of the right advisors.” Read here http://lewrockwell.com/rockwell/neocons-hate-our-guts.html

There are serious problems in the United States of America.  Some of these problems are a result of the efforts of these same neoconservatives Rockwell deplores.  They are wealthy, powerful and ruthless and, as Rockwell laments, not unwilling to attach the weak and relatedly defenseless. They control the mass media allowing them to squelch any public discussion of their policies. Under their skirts hide the largest portion of so called American Christians who vapidly support an arch enemy of the God they pretend to worship.. Those that challenge their policies are threatened and, if possible, destroyed.

Voltaire is credited with this quote: “To learn who rules over you simply find out who you are not allowed to criticize.”  If Voltaire was correct we had better wake up because the American people have lost control of their nation which is now being ruled by the neoconservatives.

Being disciples of Plato, Machiavelli, and Strauss; Neocons manipulate the nation with lies, half lies, and distortions.  Their agenda for America is moral degradation, racial strife, suffocating multi-culturalism, open borders, stifling debt, pandemic mendacity, constant self-serving war, and ultimate destruction.

Their strategy is to use the United States of America to conquer the world with them as the “philosopher kings”. As we fight their war we accumulate debt to their kin who control the monetary system. Rockwell nails their agenda: “constant war, the police state, the welfare state, militarism, and Soviet-like thought control”.

The U. S. media is a source of constant propaganda, outright distortion, serious omissions, lies and detrimental manipulation; it serves a neocon agenda, at the expense of our citizens.

It is their lucre that motivates Presidential candidates and their media that controls them. True reformers like candidate Ron Paul are not allowed to gain traction.   Elections are a sham.

Neocon promotion of immigration has destroyed our culture and open borders are jeopardizing national sovereignty.

We are on life support!  Our manufacturing base has been perforated, our integrity is gone, our people are mostly ignorant, and our government is controlled by aliens. The neocon infusion of money will keep us afloat for as long as we are needed but what then?

At the founding of our nation we heard a lot about natural law.  Natural law is a humanistic substitute for the Law God gave us in His Word.  When we forsook Biblical Law we also forsook natural law.  Homosexuality and homosexual marriage defy the created order while. centralization and multiculturalism destroy God-given diversity.

The legal system is in shambles.  The courts fail to provide justice and the jails overflow with people that should never have been arrested.  We lead the world in jailing our own citizens.

In a 1575 sermon entitled “Armed for the Fight Against Grave and Serious Error” John Calvin said, “—when a sin is deepening and spreading because of silent acquiescence in it, we must deal with it.  If we only respond when the illness is deep-rooted we will be too late. — Anything that might hold us back must be cast aside, even if it involves family or friends, or those joined by the closes possible ties in this world.  All such thing must be disregarded if souls purchased by the blood of the Lord Jesus Christ are being led astray to be ruined and lost forever, and if things that were once well established are being overturned.  Other- wise, we will have a state of total confusion, to the extent that no one will know that the Gospel came from Jesus Christ.”

In 1575 Calvin spoke from the power of the Reformation backdrop.  He understood the need to protect and defend the true Gospel.  We have long since passed the “too late” point.  Christianity has had open borders for too long.  Error is pandemic making Calvin’s call for effective, prompt confrontation impossible.  We are living in utter confusion where millions of Christians have forsaken the power of the Gospel and are lost forever.  The dark clouds of despotism have already covered the United States of America and serious judgment seems imminent.

Notable dissident Adam Kokesh recently wrote: As long as we remain as pack animals, we will be restrained by those who would exploit us. As long as we willingly accept the subversion of our own potential, we will remain in such a childlike state of immaturity, uncertainty, and subservience. This is about how you think, how you act, how you treat other people, what you eat, what you buy, who you associate with, and how you appreciate the unique gift that is your own will. The message of freedom demands better people. Step up.

Kokesh does not set a specific criterion for “better people”. His admonition is on target – America will not change until its people change.  Groups of humans may agree on principles of right and wrong but their agreement is based on the opinions of men and the opinions of men can be permanently changed by another more powerful man.  Human concepts of right and wrong always lead to tyranny.

There is only one viable source of right and wrong – the Word of God.  Human sources of right and wrong are mutable; Biblical right and wrong is immutable.

It was their distant relative, Moses, who received the Law from the Creator – Neocons need the perfect Law along with the rest of God’s creation.  Disobedience got us into this mess and obedience is the only way out.

We exist at the pleasure of those who hold our debt.  When we are no longer useful the nation will self-destruct.

Risky Business “Easy Money”

Here we go again.

Last week, the country’s biggest mortgage lenders scored a couple of key victories that will allow them to ease lending standards, crank out more toxic assets, and inflate another housing bubble.  Here’s what’s going on.

On Monday,  the head of the Federal Housing Finance Agency (FHFA), Mel Watt, announced that Fannie and Freddie would slash the minimum down-payment requirement on mortgages from 5 percent to 3 percent while making loans more available to people with spotty credit. If this all sounds hauntingly familiar, it should. It was less than 7 years ago that shoddy lending practices blew up the financial system precipitating the deepest slump since the Great Depression. Now Watt wants to repeat that catastrophe by pumping up another credit bubble. Here’s the story from the Washington Post:

“When it comes to taking out a mortgage, two factors can stand in the way: the price of the mortgage,…and the borrower’s credit profile.”

On Monday, the head of the agency that oversees the mortgage giants Fannie Mae and Freddie Mac outlined … how he plans to make it easier for borrowers on both fronts. Mel Watt, director of the Federal Housing Finance Agency, did not give exact timing on the initiatives. But most of them are designed to encourage the industry to extend mortgages to a broader swath of borrowers.

Here’s what Watt said about his plans in a speech at the Mortgage Bankers Association annual convention in Las Vegas:

Saving enough money for a downpayment is often cited as the toughest hurdle for first-time buyers in particular. Watt said that Fannie and Freddie are working to develop “sensible and responsible” guidelines that will allow them to buy mortgages with down payments as low as 3 percent, instead of the 5 percent minimum that both institutions currently require.”

Does Watt really want to “encourage the industry to extend mortgages to a broader swath of borrowers” or is this just another scam to enrich bankers at the expense of the public?  It might be worth noting at this point that Watt’s political history casts doubt on his real objectives.   According to Open Secrets, among the Top 20 contributors to Watt’s 2009-2010 campaign were Goldman Sachs, Bank of America, Citigroup Inc., Bank of New York Mellon, American bankers Association, US Bancorp, and The National Association of Realtors. (“Top 20 Contributors, 2009-2010“, Open Secrets)

Man oh man,  this guy’s got all of Wall Street rooting for him. Why is that, I wonder? Is it because he’s faithfully executing his office and defending the public’s interests or is it because he’s a reliable stooge who brings home the bacon for fatcat bankers and their brood?

This is such a farce, isn’t it? I mean, c’mon, do you really think that the big banks make political contributions out of the kindness of their heart or because they want something in return?  And do you really think that a guy who is supported by Goldman Sachs has your “best interests” in mind?  Don’t make me laugh.

The reason that Obama picked Watt was because he knew he could be trusted to do whatever Wall Street wanted, and that’s precisely what he’s doing. Smaller down payments and looser underwriting are just the beginning; teaser rates, balloon payments, and liars loans are bound to follow. In fact, there’s a funny story about credit scores in the Washington Post that explains what’s really going on behind the scenes. See if you can figure it out:

“Most housing advocates agree that a bigger bang for the buck would come from having lenders lower the unusually high credit scores that they’re now demanding from borrowers.

After the housing market tanked, Fannie and Freddie forced the industry to buy back billions of dollars in loans. In a bid to protect themselves from further financial penalties, lenders reacted by imposing credit scores that exceed what Fannie and Freddie require. Housing experts say the push to hold lenders accountable for loose lending practices of the past steered the industry toward the highest-quality borrowers, undermining the mission of Fannie and Freddie to serve the broader population, including low- to moderate- income borrowers.

Today, the average credit score on a loan backed by Fannie and Freddie is close to 745, versus about 710 in the early 2000s, according to Moody’s Analytics. And lenders say they won’t ease up until the government clarifies rules that dictate when Fannie and Freddie can take action against them.” (Washington Post)

Can you see what’s going on? The banks have been requiring higher credit scores than Fannie or Freddie.

But why? After all, the banks are in the lending business, so the more loans they issue the more money they make, right?

Right. But the banks don’t care about the short-term dough. They’d rather withhold credit and slow the economy in order to blackmail the government into doing what they want.

And what do they want?

They want looser regulations and they want to know that Fannie and Freddie aren’t going to demand their money back (“put backs”) when they sell them crappy mortgages that won’t get repaid. You see, the banks figure that once they’ve off-loaded a loan to Fannie and Freddie, their job is done.  So, if the mortgage blows up two months later, they don’t think they should have to pay for it. They want the taxpayer to pay for it. That’s what they’ve been whining about for the last 5 years. And that’s what Watt is trying to fix for them. Here’s the story from Dave Dayen:

“Watt signaled to mortgage bankers that they can loosen their underwriting standards, and that Fannie and Freddie will purchase the loans anyway, without much recourse if they turn sour. The lending industry welcomed the announcement as a way to ease uncertainty and boost home purchases, a key indicator for the economy. But it’s actually a surrender to the incorrect idea that expanding risky lending can create economic growth.

Watt’s remarks come amid a concerted effort by the mortgage industry to roll back regulations meant to prevent the type of housing market that nearly obliterated the economy in 2008. Bankers have complained to the media that the oppressive hand of government prevents them from lending to anyone with less-than-perfect credit. Average borrower credit scores are historically high, and lenders make even eligible borrowers jump through enough hoops to garner publicity. Why, even Ben Bernanke can’t get a refinance done! (Actually, he could, and fairly easily, but the anecdote serves the industry’s argument.)

(“The Mortgage Industry Is Strangling the Housing Market and Blaming the Government“, Dave Dayen, The New Republic)

Can you see what a fraud this is?  6 years have passed since Lehman crashed and the scum-sucking bankers are still  fighting tooth-and-nail to unwind the meager provisions that have been put in place to avoid another system-shattering disaster. It’s crazy. These guys should all be in Gitmo pounding rocks and instead they’re setting the regulatory agenda. Explain that to me? And this whole thing about blackmailing the government because they don’t want to be held responsible for the bad mortgages they sold to the GSE’s is particularly irritating. Here’s more from Dave Dayen:

“After the housing market tanked, Fannie and Freddie forced the industry to buy back billions of dollars in loans. In a bid to protect themselves from further financial penalties, lenders reacted by imposing credit scores that exceed what Fannie and Freddie require. ….And lenders say they won’t ease up until the government clarifies rules that dictate when Fannie and Freddie can take action against them.”

So the industry has engaged in an insidious tactic: tightening lending well beyond required standards, and then claiming the GSEs make it impossible for them to do business. For example, Fannie and Freddie require a minimum 680 credit score to purchase most loans, but lenders are setting their targets at 740. They are rejecting eligible borrowers….so they can profit much more from a regulation-free zone down the line.

So, I ask you, dear reader; is that blackmail or is it blackmail?

And what does Watt mean when he talks about “developing sensible and responsible guidelines’ that will allow them (borrowers) to buy mortgages with down payments as low as 3 percent”?

What a joke.  Using traditional underwriting standards, (the likes of which had been used for  the entire post-war period until we handed the system over to the banks) a lender would require a 10 or 20 percent down, decent credit scores, and a job. The only reason Watt wants to wave those requirements is so the banks can fire-up the old credit engine and dump more crap-ass mortgages on Uncle Sam.  That’s the whole thing in a nutshell. It’s infuriating!

Let me fill you in on a little secret: Down payments matter! In fact, people who put more down on a home (who have “more skin in the game”) are much less likely to default.  According to David Battany, executive vice president of PennyMac, “there is a strong correlation between down payments to mortgage default. The risk of default almost doubles with every 1%.”

Economist Dean Baker says the same thing in a recent blog post:

“The delinquency rate, which closely follows the default rate, is several times higher for people who put 5 percent or less down on a house than for people who put 20 percent or more down.

Contrary to what some folks seem to believe, getting moderate income people into a home that they subsequently lose to foreclosure or a distressed sale is not an effective way for them to build wealth, even if it does help build the wealth of the banks.”

(“Low Down Payment Mortgages Have Much Higher Default Rates“, Dean Baker, CEPR)

Now take a look at this chart from Dr. Housing Bubble which helps to illustrate the dangers of low down payments in terms of increased delinquencies:

Data on mortgage delinquencies by downpayment. Source:  Felix Salmon 

“When the mortgage industry starts complaining about the 14 million people who would be denied the chance to buy a qualified mortgage if they don’t have a 5% downpayment, it’s worth remembering that qualified mortgages for people who don’t have a 5% downpayment have a delinquency rate of 16% over the course of the whole housing cycle.” (“Why a sizable down payment is important“, Dr. Housing Bubble)

So despite what Watt thinks,  higher down payments mean fewer defaults, fewer foreclosures, fewer shocks to the market, and greater financial stability.

And here’s something else that Watt should mull over:  The housing market isn’t broken and doesn’t need to be fixed.  It’s doing just fine, thank you very much. First of all, sales and prices are already above their historic trend. Check it out from economist Dean Baker:

“If we compare total sales (new and existing homes) with sales in the pre-bubble years 1993-1995, they would actually be somewhat higher today, even after adjusting for population growth. While there may be an issue of many people being unable to qualify for mortgages because of their credit history, this does not appear to be having a negative effect on the state of market. Prices are already about 20 percent above their trend levels.” (“Total Home Sales Are At or Above Trend“, Dean Baker, CEPR)

Got it? Sales and prices are ALREADY where they should be, so there’s no need to lower down payments and ease credit to start another orgy of speculation. We don’t need that.

Second, the quality of today’s mortgages ARE BETTER THAN EVER, so why mess with success? Take a look at this from Black Knight Financial Services and you’ll see what I mean:

“Today, the Data and Analytics division of Black Knight Financial Services … released its November Mortgage Monitor Report, which found that loans originated in 2013 are proving to be the best-performing mortgages on record…..

“Looking at the most current mortgage origination data, several points become clear,” said Herb Blecher, senior vice president of Black Knight Financial Services’ Data & Analytics division. “First is that heightened credit standards have resulted in this year being the best-performing vintage on record. Even adjusting for some of these changes, such as credit scores and loan-to-values, we are seeing total delinquencies for 2013 loans at extremely low levels across every product category.”

(“Black Knight Financial Services’ Mortgage Performance Data Shows 2013 Loans Best Performing on Record“, LPS)

Okay, so sales and prices are fine and mortgage quality is excellent. So why not leave the bloody system alone? As the saying goes: If it ain’t broke, don’t fix it.

But you know why they’re going to keep tinkering with the housing market. Everyone knows why. It’s because the banks can’t inflate another big-honking credit bubble unless they churn out zillions of shi**y mortgages that they offload onto Fannie and Freddie. That’s just the name of the game: Grind out the product (mortgages), pack it into sausages (securities and bonds), leverage up to your eyeballs (borrow as much as humanly possible), and dump the junk-paper on yield-chasing baboons who think they’re buying triple A “risk free” bonds.

Garbage in, garbage out.  Isn’t this how the banks make their money?

You bet it is, and in that regard things have gotten a helluva a lot scarier since last Wednesday’s announcement that the banks are NOT going to be required to hold any capital against the securities they create from bundles of mortgages.

Huh?

You read that right. According to the New York Times:  “there will be no risk retention to speak of, at least on residential mortgage loans that are securitized.”

But how can that be, after all, it wasn’t subprime mortgages that blew up the financial system (subprime mortgages only totaled $1.5 at their peak), but the nearly $10 trillion in subprime infected mortgage-backed securities (MBS) that stopped trading in the secondary market after a French Bank stopped taking redemptions in July 2007. (a full year before the crisis brought down Lehman Brothers) . That’s what brought the whole rattling financial system to a grinding halt. Clearly, if the banks had had a stake in those shabby MBS— that is, if they were required to set aside 5 or 10 percent capital as insurance in the event that some of these toxic assets went south– then the whole financial collapse could have been avoided, right?

Right. It could have been avoided. But the banks don’t want to hold any capital against their stockpile of rancid assets, in fact, they don’t want to use their own freaking money at all, which is why 90 percent of all mortgages are financed by Uncle Sugar. It’s because the banks are just as broke as they were in 2008 when the system went off the cliff. Here’s a summary from the New York Times:

“Once upon a time, those who made loans would profit only if the loan were paid back. If the borrower defaulted, the lender would suffer.

That idea must have seemed quaint in 2005, as the mortgage lending boom reached a peak on the back of mushrooming private securitizations of mortgages, which were intended to transfer the risk away from those who made the loans to investors with no real knowledge of what was going on.

Less well remembered is that there was a raft of real estate securitizations once before, in the 1920s. The securities were not as complicated, but they had the same goal — making it possible for lenders to profit without risking capital.

The Dodd-Frank Act of 2010 set out to clean that up. Now, there would be “risk retention.” Lenders would have to have “skin in the game.” Not 100 percent of the risk, as in the old days when banks made mortgage loans and retained them until they were paid back, but enough to make the banks care whether the loans were repaid.

At least that was the idea. The details were left to regulators, and it took more than four years for them to settle on the details, which they did this week.

The result is that there will be no risk retention to speak of, at least on residential mortgage loans that are securitized.

“…..Under Dodd-Frank, the general rule was to be that if a lender wanted to securitize mortgages, that lender had to keep at least 5 percent of the risk…….But when the final rule was adopted this week, that idea was dropped.”  (“Banks Again Avoid Having Any Skin in the Game”, New York Times)

No skin in the game, you say?

That means the taxpayer is accepting 100 percent of the risk. How fair is that?

Let’s review: The banks used to lend money to creditworthy borrowers and keep the loans on their books.

They don’t do that anymore, in fact, they’re not really banks at all, they’re just intermediaries who sell their loans to the USG or investors.

This arrangement has changed the incentives structure. Now the goal is quantity not quality.  “How many loans can I churn-out and dump on Uncle Sam or mutual funds etc.” That’s how bankers think now.  That’s the objective.

Regulations are bad because regulations stipulate that loans must be of a certain quality, which reduces the volume of loans and shrinks profits. (Can’t have that!) Therefore, the banks must use their money to hand-pick their own regulators  (“You’re doin’ a heckuva job, Mel”) and ferociously lobby against any rules that limit their ability to issue credit to anyone who can fog a mirror. Now you understand how modern-day banking works.

It would be hard to imagine a more corrupt system.

The Fix Is In: Fed Stops Stock Slide With Talk of QE Extension

Unbelievable.

On Wednesday, stocks were hammered after economic data showed that the US and global economies were headed for a major slowdown. By mid-day, the Dow was down 460 points before clawing its way back to minus 173 points. It looked like the market was set for another triple-digit flogging on Thursday when the Fed stepped in and started talking-up an extension to QE3. That’s all it took to ease investors jitters, stop the meltdown and send equities rocketing back into space. By the end of Friday’s session, all the markets were back in the green with the Dow logging an impressive 263 points on the day. Here’s more background from Wolf Street:

“But just when some profusely sweating souls on Wall Street thought that the bottom was falling out, a savior appears. St. Louis Fed President James Bullard got on Bloomberg TV and pressed the red panic button (and) handed them what they wanted….That was enough.

Using declining inflation expectations as a pretext, he proposed to delay the end of QE. The Fed should continue buying $15 billion in securities a month…. it instantly turned around the markets. The spoiled brats on Wall Street were ecstatic to imagine that the Fed might continue to deliver the goodies they’ve become addicted to, and without which life seems unbearable.” (This Market is Driven by Psychology and Momentum,’ which ‘Works Really Painfully on the Way Down, Wolf Street)

For those readers who still think that the Fed doesn’t meddle in the markets: Think again. Friday’s stock surge had nothing to do with productivity, price, earnings, growth or any of the other so called fundamentals. It was all about manipulation; telling people what they want to hear, so they do exactly what you want them to do. The pundits calls this jawboning, and the Fed has turned it into an art-form. All Bullard did was assure investors that the Fed “has their back”, and , sure enough, another wild spending spree ensued. One can only imagine the backslapping and high-fives that broke out at the Central Bank following this latest flimflam.

As most people now realize, stocks haven’t tripled in the last 5 years because the economy is expanding. Heck, no. The economy is still on all-fours and everyone knows it. The reason stocks have been flying-high is because the Fed added a hefty $4 trillion in red ink to its balance sheet. Naturally, when someone buys $4 trillion in financial assets, the price of financial assets go up.

Who would’ve known?

And here’s something else to chew on: On Thursday I wrote an article titled “Stocks Plunge 460 Points on QE Exit”. Among the 2 or 3 thousand other articles on the topic in the mainstream, not one mentioned the fact that QE was set to end at the end of October. Instead, they pointed to sluggishness in Europe and China, and weaker-than-expected economic data in the US as the proximate causes of the downturn.

So let me ask you this, dear reader, if the end of QE was not the real trigger for the Dow’s 460 point bungee jump, then why did the markets do a quick 180 right after Bullard made his statement on Thursday? In fact, the media even admits that point now. Check out this article on Marketwatch on Friday titled “Bullard’s surprise suggestion of continuing QE lifts markets”:

“A comment from a hawkish Federal Reserve official on Thursday that central-bank bond buying should continue beyond its scheduled end lifted stock markets and surprised many observers.

The Federal Reserve should consider extending its bond-buying program beyond October due to the market selloff to see how the U.S. economic outlook evolves, said James Bullard, the president of the St. Louis Fed, on Thursday. …

If the economy is still as robust as I am describing it, then I think we could just end the program in December. But if the market is right, and this is portending something more serious for the U.S. economy, than the committee would have an option of ramping up QE at that point,” he said.

The S&P 500 SPX, +1.65% jumped from its session low of a 0.9% drop after Bullard’s remarks came out.” (Bullard’s surprise suggestion of continuing QE lifts markets, Marketwatch)

How do you like that? Just one word from the Fed and the markets do an immediate about-face. Now that’s power.

It’s too bad the Fed can’t put in a good word for the real economy while they’re at it. But, oh, I forgot that the real economy is stuffed with working stiffs who don’t warrant the same kind of treatment as the esteemed supermen who trade stocks for a living. Besides, the Fed doesn’t give a rip about the real economy. If it did, it would have loaded up on infrastructure bonds instead of funky mortgage backed securities (MBS). The difference between the two is pretty stark: Infrastructure bonds put people to work, circulate money, boost economic activity, and strengthen growth. In contrast, MBS purchases help to fatten the bank accounts of the fraudsters who created the financial crisis while doing bupkis for the economy. Guess who the Fed chose to help out?

Do you really want to know why the Fed isn’t going to end QE? Here’s how Nomura’s chief economist Bob Janjuah summed it up:

“I want to remind readers of a message that may be buried in the past: When QE1 ended, the S&P 500 fell just under 20% in a roughly three-month period before the QE2 recovery.

When the QE2 ended, the S&P 500 fell about 20% in a three-month period before the next Fed-inspired bounce (aided by the ECB). QE3 is ending this month…”

Is that why the Fed started jawboning QE4, to avoid the inevitable 20 percent correction?

You bet it is. But what’s odd is that stocks hadn’t even dropped 10 percent before the Fed hit the panic button. Why is that?

Could it be that they have no confidence in the market? Could it be that they know that their loosy-goosey monetary policies have inflated the biggest bubble of all time which has created a fragile, crisis prone system that can’t even withstand a measly 10 percent drop before bank balance sheets start going up in flames and the whole wobbly financial house of cards comes crashing to earth in a thud?

Of course, it is. They’re scared sh**less, which is why they dispatched bigmouth Bullard to promise investors the moon as long as they keep loading up on equities. Yellen an Co. are going to do everything in their power to keep this runaway train from going off the cliff, even if they kill us all in the process.

Now check out this blurb from Allianz ‘s chief economic adviser, Mohamed A. El-Erian, one of the few analysts who got it right:

“Due to excessive confidence in central banks, investors eagerly decoupled high market valuations from what was warranted by the sluggish fundamentals.”… That disconnect has been undermined over the last few weeks by signs that the global economy’s fundamentals are weaker than they seemed and concern that the European Central Bank will not adequately fight that continent’s economic drift…” (New York Times)

What El Erian is saying, is that, stocks are vastly overpriced given “sluggish fundamentals”. The only reason investors have been buying is because the Fed has been shoving money into the market hand-over-fist. That’s what’s kept equities airborne. But on Wednesday, investors woke up and said to themselves, “Hey, the economy’s circling the plughole, the Fed is bailing out, and I’m left with a boatload of dodgy stocks that might be worth $.30 on the dollar. Maybe I’ll get out now while I still can.” That’s why the market tanked.

So, what’s the lesson here?

The lesson is that the Fed is driving the markets. The whole “free market” trope is baloney. No one is loading up on stocks because they’re a good deal or because they think the economy is going gangbusters. Investors are buying stocks because they still believe in the power of money. They still think the Fed can pump a few more wisps of helium into the equities balloon and keep the rally going for a bit longer. And that’s why stocks surged on Friday, because, at least for now, greed still trumps fear.

But what’s the overall effect of this loony policy on the economy, or is that a fair question to ask after 6 years of falling incomes, flatlining wages, widening inequality and widespread economic stagnation?

The truth is, we already know what the impact is: The rich have gotten richer while the poor have been shunted off to tent cities, food pantries and under freeway off-ramps. Isn’t that what’s happened? Get a load of this brief summary in Friday’s WSWS:

“The richest one percent of the world’s population now controls 48.2 percent of global wealth, up from 46 percent last year, according to the most recent global wealth report issued by Credit Suisse, the Swiss-based financial services company.

Hypothetically, if the growth of inequality were to proceed at last year’s rate, the richest one percent for all intents and purposes would control all the wealth on the planet within 23 years.

The report found that the growth of global inequality has accelerated sharply since the 2008 financial crisis, as the values of financial assets have soared while wages have stagnated and declined…

The study revealed that the richest 8.6 percent of the world’s population—those with a net worth of more than $100,000—control 85 percent of the world’s wealth. Meanwhile, the bottom 70 percent of the world’s population—those with less than $10,000 in net worth—hold a mere 2.9 percent of global wealth.

The growth in inequality is bound up with a worldwide surge in paper wealth, fueled by the trillions of dollars pumped into the financial system by central banks via zero interest rate and “quantitative easing” policies…

As the report noted, “The overall global economy may remain sluggish, but this has not prevented personal wealth from surging ahead during the past year. Driven by … robust equity prices, total wealth grew by 8.3% worldwide … the first time household wealth has passed the $250 trillion threshold.” (Richest one percent controls nearly half of global wealth, Andre Damon)

That says it all, doesn’t it? The widening chasm between rich and poor is traceable to the policies that were adopted in 2008. That’s why things are so fu**ed up, it’s because the “surge in paper wealth, fueled by the trillions of dollars pumped into the financial system by central banks via zero interest rate and “quantitative easing” policies.”

In other words, it’s all deliberate. Robbing the poor and giving to the rich is all part of the plan.

That strikes me as an important point, and one that’s worth mulling over for awhile; that crushing the middle class isn’t an accident. It’s what they want. It’s the policy.

The Islamist State

You can’t believe a word the United States or its mainstream media say about the current conflict involving The Islamic State (ISIS).

You can’t believe a word France or the United Kingdom say about ISIS.

You can’t believe a word Turkey, Saudi Arabia, Qatar, Kuwait, Jordan, or the United Arab Emirates say about ISIS. Can you say for sure which side of the conflict any of these mideast countries actually finances, arms, or trains, if in fact it’s only one side? Why do they allow their angry young men to join Islamic extremists? Why has NATO-member Turkey allowed so many Islamic extremists to cross into Syria? Is Turkey more concerned with wiping out the Islamic State or the Kurds under siege by ISIS? Are these countries, or the Western powers, more concerned with overthrowing ISIS or overthrowing the Syrian government of Bashar al-Assad?

You can’t believe the so-called “moderate” Syrian rebels. You can’t even believe that they are moderate. They have their hands in everything, and everyone has their hands in them.

Iran, Hezbollah and Syria have been fighting ISIS or its precursors for years, but the United States refuses to join forces with any of these entities in the struggle. Nor does Washington impose sanctions on any country for supporting ISIS as it quickly did against Russia for its alleged role in Ukraine.

The groundwork for this awful mess of political and religious horrors sweeping through the Middle East was laid – laid deeply – by the United States during 35 years (1979-2014) of overthrowing the secular governments of Afghanistan, Iraq, Libya, and Syria. (Adding to the mess in the same period we should not forget the US endlessly bombing Pakistan, Somalia and Yemen.) You cannot destroy modern, relatively developed and educated societies, ripping apart the social, political, economic and legal fabric, torturing thousands, killing millions, and expect civilization and human decency to survive.

Particularly crucial in this groundwork was the US decision to essentially throw 400,000 Iraqis with military training, including a full officer corps, out onto the streets of its cities, jobless. It was a formula for creating an insurgency. Humiliated and embittered, some of those men would later join various resistance groups operating against the American military occupation. It’s safe to say that the majority of armored vehicles, weapons, ammunition, and explosives taking lives every minute in the Middle East are stamped “Made in USA”.

And all of Washington’s horses, all of Washington’s men, cannot put this world back together again. The world now knows these places as “failed states”.

Meanwhile, the United States bombs Syria daily, ostensibly because the US is at war with ISIS, but at the same time seriously damaging the oil capacity of the country (a third of the Syrian government’s budget), the government’s military capabilities, its infrastructure, even its granaries, taking countless innocent lives, destroying ancient sites; all making the recovery of an Assad-led Syria, or any Syria, highly unlikely. Washington is undoubtedly looking for ways to devastate Iran as well under the cover of fighting ISIS.

Nothing good can be said about this whole beastly situation. All the options are awful. All the participants, on all sides, are very suspect, if not criminally insane. It may be the end of the world. To which I say … Good riddance. Nice try, humans; in fact, GREAT TRY … but good riddance. ISIS … Ebola … Climate Change … nuclear radiation … The Empire … Which one will do us in first? … Have a nice day.

Is the world actually so much more evil and scary today than it was in the 1950s of my upbringing, for which I grow more nostalgic with each new horror? Or is it that the horrors of today are so much better reported, as we swim in a sea of news and videos?

After seeing several ISIS videos on the Internet, filled with the most disgusting scenes, particularly against women, my thought is this: Give them their own country; everyone who’s in that place now who wants to leave, will be helped to do so; everyone from all over the world who wants to go there will be helped to get there. Once they’re there, they can all do whatever they want, but they can’t leave without going through a rigorous interview at a neighboring border to ascertain whether they’ve recovered their attachment to humanity. However, since very few women, presumably, would go there, the country would not last very long.

The Berlin Wall – Another Cold War Myth

November 9 will mark the 25th anniversary of the tearing down of the Berlin Wall. The extravagant hoopla began months ago in Berlin. In the United States we can expect all the Cold War clichés about The Free World vs. Communist Tyranny to be trotted out and the simple tale of how the wall came to be will be repeated: In 1961, the East Berlin communists built a wall to keep their oppressed citizens from escaping to West Berlin and freedom. Why? Because commies don’t like people to be free, to learn the “truth”. What other reason could there have been?

First of all, before the wall went up in 1961 thousands of East Germans had been commuting to the West for jobs each day and then returning to the East in the evening; many others went back and forth for shopping or other reasons. So they were clearly not being held in the East against their will. Why then was the wall built? There were two major reasons:

1) The West was bedeviling the East with a vigorous campaign of recruiting East German professionals and skilled workers, who had been educated at the expense of the Communist government. This eventually led to a serious labor and production crisis in the East. As one indication of this, the New York Times reported in 1963: “West Berlin suffered economically from the wall by the loss of about 60,000 skilled workmen who had commuted daily from their homes in East Berlin to their places of work in West Berlin.”

It should be noted that in 1999, USA Today reported: “When the Berlin Wall crumbled [1989], East Germans imagined a life of freedom where consumer goods were abundant and hardships would fade. Ten years later, a remarkable 51% say they were happier with communism.” Earlier polls would likely have shown even more than 51% expressing such a sentiment, for in the ten years many of those who remembered life in East Germany with some fondness had passed away; although even 10 years later, in 2009, the Washington Post could report: “Westerners [in Berlin] say they are fed up with the tendency of their eastern counterparts to wax nostalgic about communist times.”

It was in the post-unification period that a new Russian and eastern Europe proverb was born: “Everything the Communists said about Communism was a lie, but everything they said about capitalism turned out to be the truth.”

It should be further noted that the division of Germany into two states in 1949 – setting the stage for 40 years of Cold War hostility – was an American decision, not a Soviet one.

2) During the 1950s, American coldwarriors in West Germany instituted a crude campaign of sabotage and subversion against East Germany designed to throw that country’s economic and administrative machinery out of gear. The CIA and other US intelligence and military services recruited, equipped, trained and financed German activist groups and individuals, of West and East, to carry out actions which ran the spectrum from juvenile delinquency to terrorism; anything to make life difficult for the East German people and weaken their support of the government; anything to make the commies look bad.

It was a remarkable undertaking. The United States and its agents used explosives, arson, short circuiting, and other methods to damage power stations, shipyards, canals, docks, public buildings, gas stations, public transportation, bridges, etc; they derailed freight trains, seriously injuring workers; burned 12 cars of a freight train and destroyed air pressure hoses of others; used acids to damage vital factory machinery; put sand in the turbine of a factory, bringing it to a standstill; set fire to a tile-producing factory; promoted work slow-downs in factories; killed 7,000 cows of a co-operative dairy through poisoning; added soap to powdered milk destined for East German schools; were in possession, when arrested, of a large quantity of the poison cantharidin with which it was planned to produce poisoned cigarettes to kill leading East Germans; set off stink bombs to disrupt political meetings; attempted to disrupt the World Youth Festival in East Berlin by sending out forged invitations, false promises of free bed and board, false notices of cancellations, etc.; carried out attacks on participants with explosives, firebombs, and tire-puncturing equipment; forged and distributed large quantities of food ration cards to cause confusion, shortages and resentment; sent out forged tax notices and other government directives and documents to foster disorganization and inefficiency within industry and unions … all this and much more.

The Woodrow Wilson International Center for Scholars, of Washington, DC, conservative coldwarriors, in one of their Cold War International History Project Working Papers (#58, p.9) states: “The open border in Berlin exposed the GDR [East Germany] to massive espionage and subversion and, as the two documents in the appendices show, its closure gave the Communist state greater security.”

Throughout the 1950s, the East Germans and the Soviet Union repeatedly lodged complaints with the Soviets’ erstwhile allies in the West and with the United Nations about specific sabotage and espionage activities and called for the closure of the offices in West Germany they claimed were responsible, and for which they provided names and addresses. Their complaints fell on deaf ears. Inevitably, the East Germans began to tighten up entry into the country from the West, leading eventually to the infamous wall. However, even after the wall was built there was regular, albeit limited, legal emigration from east to west. In 1984, for example, East Germany allowed 40,000 people to leave. In 1985, East German newspapers claimed that more than 20,000 former citizens who had settled in the West wanted to return home after becoming disillusioned with the capitalist system. The West German government said that 14,300 East Germans had gone back over the previous 10 years.

Let’s also not forget that while East Germany completely denazified, in West Germany for more than a decade after the war, the highest government positions in the executive, legislative, and judicial branches contained numerous former and “former” Nazis.

Finally, it must be remembered, that Eastern Europe became communist because Hitler, with the approval of the West, used it as a highway to reach the Soviet Union to wipe out Bolshevism forever, and that the Russians in World War I and II, lost about 40 million people because the West had used this highway to invade Russia. It should not be surprising that after World War II the Soviet Union was determined to close down the highway.

For an additional and very interesting view of the Berlin Wall anniversary, see the article “Humpty Dumpty and the Fall of Berlin’s Wall” by Victor Grossman. Grossman (née Steve Wechsler) fled the US Army in Germany under pressure from McCarthy-era threats and became a journalist and author during his years in the (East) German Democratic Republic. He still lives in Berlin and mails out his “Berlin Bulletin” on German developments on an irregular basis. You can subscribe to it at. His autobiography: “Crossing the River: a Memoir of the American Left, the Cold War and Life in East Germany” was published by University of Massachusetts Press. He claims to be the only person in the world with diplomas from both Harvard University and Karl Marx University in Leipzig.

Al Franken, the liberal’s darling

I receive a continuous stream of emails from “progressive” organizations asking me to vote for Senator Franken or contribute to his re-election campaign this November, and I don’t even live in Minnesota. Even if I could vote for him, I wouldn’t. No one who was a supporter of the war in Iraq will get my vote unless they unequivocally renounce that support. And I don’t mean renounce it like Hillary Clinton’s nonsense about not having known enough.

Franken, the former Saturday Night Live comedian, would like you to believe that he’s been against the war in Iraq since it began. But he went to Iraq at least four times to entertain the troops. Does that make sense? Why does the military bring entertainers to soldiers? To lift the soldiers’ spirits of course. And why does the military want to lift the soldiers’ spirits? Because a happier soldier does his job better. And what is the soldier’s job? All the charming war crimes and human-rights violations that I and others have documented in great detail for many years. Doesn’t Franken know what American soldiers do for a living?

A year after the US invasion in 2003, Franken criticized the Bush administration because they “failed to send enough troops to do the job right.” What “job” did the man think the troops were sent to do that had not been performed to his standards because of lack of manpower? Did he want them to be more efficient at killing Iraqis who resisted the occupation? The volunteer American troops in Iraq did not even have the defense of having been drafted against their wishes.

Franken has been lifting soldiers’ spirits for a long time. In 2009 he was honored by the United Service Organization (USO) for his ten years of entertaining troops abroad. That includes Kosovo in 1999, as imperialist an occupation as you’ll want to see. He called his USO experience “one of the best things I’ve ever done.” Franken has also spoken at West Point (2005), encouraging the next generation of imperialist warriors. Is this a man to challenge the militarization of America at home and abroad? No more so than Barack Obama.

Tom Hayden wrote this about Franken in 2005 when Franken had a regular program on the Air America radio network: “Is anyone else disappointed with Al Franken’s daily defense of the continued war in Iraq? Not Bush’s version of the war, because that would undermine Air America’s laudable purpose of rallying an anti-Bush audience. But, well, Kerry’s version of the war, one that can be better managed and won, somehow with better body armor and fewer torture cells.”

While in Iraq to entertain the troops, Franken declared that the Bush administration “blew the diplomacy so we didn’t have a real coalition,” then failed to send enough troops to do the job right. “Out of sheer hubris, they have put the lives of these guys in jeopardy.”

Franken was implying that if the United States had been more successful in bribing and threatening other countries to lend their name to the coalition fighting the war in Iraq the United States would have had a better chance of WINNING the war.

Is this the sentiment of someone opposed to the war? Or in support of it? It is the mind of an American liberal in all its beautiful mushiness.

Notes

1. Derived from William Astore, “Investing in Junk Armies”, TomDispatch, October 14, 2014
2. New York Times, June 27, 1963, p.12
3. USA Today, October 11, 1999, p.1
4. Washington Post, May 12, 2009; see a similar story November 5, 2009
5. Carolyn Eisenberg, “Drawing the Line: The American Decision to Divide Germany, 1944-1949” (1996); or see a concise review of this book by Kai Bird in The Nation, December 16, 1996
6. See William Blum, “Killing Hope: US Military and CIA Interventions Since World War II”, p.400, note 8, for a list of sources for the details of the sabotage and subversion.
7. The Guardian (London), March 7, 1985
8. Washington Post, February 16, 2004
9. Star Tribune, Minneapolis, March 26, 2009
10. Huffington Post, June 2005
11. Washington Post, February 16, 2004

In Search of An Ebola And ISIS Free Zone

The Comité De Salut Public during the French Revolution exhibited a pattern for nightmares far removed from their stated purpose as a Committee of Public Safety. The reign of terror that arose from the shambles created by the Society of the Jacobins, based upon extreme egalitarianism, actually produced a most violent outcome.  If you are one of those lost souls who cling to the latest narrative from the designer media reporting machine, the fear factor is working overtime. What can be more impartial than the threat of succumbing to an Ebola epidemic? Well, if you believe this hysteria, maybe the imminent acts of terror from those Islamic fascists; now called ISIS, will get your blood pressure to spike. Both share a paranoia manufactured in the labs of mind control more than in the actuary records of fact.

Worry that a global pandemic is in the making causes more psychosis than any screenplay coming out of tinsel town. Ebola has much in common with “The stuff that dreams are made of” for the social engineers and population control psychopaths. While human life is lost to this virus, when did this planet ever value the existence of individual human beings?

One viewpoint purports that The 5 Biggest Lies About Ebola Being Pushed by Government & Mass Media are inhibiting a proper response.

Lie #1) Ebola won’t ever come to the United States

Well, that one has been disproved.

Lie #2) Ebola is only spread via direct contact with body fluids

Nice to ignore those aerosols – airborne particles

Lie #3) Don’t worry: Health authorities have everything under control

Now who in their right mind is going to believe this nonsense?

Lie #4) The only defense against Ebola is a vaccine or a pharmaceutical drug

This one starts to shed light on some of the motivation behind the response.

Lie #5) Ebola came out of nowhere and was a random fluke of nature

The big lie theory always seems to work on the naïve public.

Think outside the box. Pose the question that no one in the mainstream culture dares to ask. Why expend extreme dread about a mutating infection when most of the “so called” civilized world is currently consumed on intentionally taking a road to annihilation. If the Ebola outbreak is the ultimate culling of the herd, the argument of the disinformation artists already won the day.

Wearing down the natural immunized capacity of people to discount and reject the hype and fabricated perception of reality, is far more lethal than the actual threat of a medical disease. Prudence prescribes preparative precautions. However, ignoring the far more dangerous menaces to our well being can truly be terminable.

Survival seems paramount to secular society. Since this is the case, why is so much energy and mental attention devoted to chasing false Armageddons? ISIS is an obvious example of the playing out the same old strategy of creating an enemy in order that the ruling class can come to the rescue. Alas, delivering a solution or victory is intentionally unattainable.

Senators like Lindsay Graham and John McCain revel in juicing up their NeoCon followers with their fright campaign to keep the war machine rumbling along. Their manta is not just old, it is laughable. So many Americans are deluded by the fantasy of fighting a war against terrorism for generations to come, that they are oblivious from learning the history that created this madness.

The New York Times publishes an article, For Many Iranians, the ‘Evidence’ Is Clear: ISIS Is an American Invention. Oh dear, who could believe any observation from that axis of evil regime?

“Ayatollah Khamenei reminded them that Al Qaeda — a creation of the Central Intelligence Agency, Iran has said — and the Taliban were, in the eyes of Iranian intelligence, devised by the West as a counterweight to Iran.”

When Iranian television aired images of Senator John McCain, the hawkish Arizona Republican, at a meeting with the current caliph of ISIS, Abu Bakr al-Baghdadi, an announcer added.

“These say more than a thousand words regarding the links between the United States and this group.”

So when Iranians express their distrust, the full thrust of the NWO establishment condemns their conclusions.

“But the claim that ISIS is a creation of the Obama administration has gained wide traction here. From the Iranian viewpoint, shaped by their spotty exposure to Western culture, analysts say, creating a terrorist organization opposed to Iranian interests is the obvious thing for a superpower to do.”

Exactly what is the advantage of being under the spell of exposure to Western culture, when the flagship of approved news reporting refuses to admit that interventionism into the Middle East has been a total disaster for ordinary Americans?

That old JFK trademark, “in the final analysis” the betrayal of real national security has become the hallmark of U.S. foreign policy.

Wasting time on all the breaking news about the latest development on ISIS is pure folly. The absurd assertions that ISIS is about to initiate attacks on domestic soil, only serves to alarm an already high-anxiety induced citizenry.

Both Ebola and ISIS alleged scourges could be precluded with very basic border control measures. Common sense is a prime casualty in preventive national protection. Yet, the Homeland Security culture asserts the same delusional rhetoric as the Committee of Public Safety exhibited as the bloodbath of the French Revolution flowed into the streets of Paris.

The difference in this age of instant communication and immediate gratification is that the speed and scope of scares spread instantaneously. Where is the prioritization of risk? What will it take to focus on true distress targets of momentous calamities, which are consistently ignored in our brainwashed culture?

When was the last time you read or heard a significant report of the ongoing Fukushima contamination from the radiation meltdown? Or has that little catastrophe been wiped from the consciousness of the collective mind? All these questions become taxing. People are not used to thinking beyond the sound bites from yesterday.

Energy News provides the following:  US gov’t analysis says Fukushima is more serious than ‘China Syndrome’ — Destroyed reactors suffered worst type of containment failure. Review the best resources on this topic from Rense.com links. Nonetheless, most would reply that an Ebola epidemic is an immediate health hazard, while radiation migration will only cause cancer deaths over time.

Gee, another acquiescence that open borders are inevitable – the prevailing wind and currents know no national boundary. Well, to the simple mind, that must mean the same is true for blocking air flights from West African contaminated zones or for CIA trained jihad Islamists.

Government boasts that their mission to protect the public takes precedent over civil liberties or constitutional law. Just how well are these Jacobin thugs doing in keeping you safe?

Listing all the steps that have practical probability for success to eliminate the Ebola and ISIS dilemmas are futile to debate as long as the intended purpose of the careerist political class and globalist financial elite is to implement their reign of terror.

That infamous New World Order icon Franklin D. Roosevelt’s First Inaugural Address quote: “Only Thing We Have to Fear Is Fear Itself”, actually should read “Only Thing We Have to Fear Is Government Itself”. The Bull S#$& that constitutes the 24/7 news cycle which expounds and rationalizes government policy and the police state is the true plague.

In order to establish a “Free Zone” from all the Ebola and ISIS propaganda, folks need to escape the BS and engage the real world by dropping out from the controlled grid of establishment lunacy.

Most of the literal risks that people are susceptible to encounter are avoidable with behavioral modifications. While life itself is the supreme adventure, avoiding perilous circumstances should be a component of sensible conduct. Regrettably, government rejects this standard and most of the time is devoted to create the circumstance that endangers their citizens.

Treacherous planning for martial law imposition thrives on the outbreak of Ebola hysteria. The frenzy amplifies calls for cures. Healing by quarantine is not a medical remedy, it is a reactionary response. What an ideal environment to foster even greater control. Keep illness intact, while reducing free association among the healthy.

ISIS may want to spread this deadly version of wellness destruction when they capture their next stash of armament weapons. Keeping the threat alive is much more important than merely killing non-combatants. A free zone of analysis accepts the Iranian interruption over the MSM version. The same analytic thinking leads to the inference that a mass phobia stampede leads to the desired public demand for government salvation.

Tune out this effort to herd the sheeple to slaughter. Start protecting yourself and prepare for your own safety. The hazmat response team will not rescue you from a system based upon deception, fraud and disinformation. Then what is the difference, the Fukushima contagion illustrates that the cockroaches will inherent the planet. Maybe they will do better than this mentally ill society.

Financial Regulators Bend Rules For Banksters

The cozy relationship between financial institutions and their respective regulators has long been known. Concern from reformers and activists comes from all stripes of ideological perspectives. With the attention that Carmen Segarra, the whistleblower of Wall Street, has gained, the noise from the banking establishment pushes back. Here comes the expected spin from the Fed, The New York Fed Slams Tape-Recording Whistleblower, Says She Was Fired After Just 7 Months Over Performance. Read their Statement Regarding New York Fed Supervision. So what is this controversy all about?

How dare a mere low level regulator document the goings on within the financial establishment, Inside the New York Fed: Secret Recordings and a Culture Clash, writes.

“As ProPublica reported last year, Segarra sued the New York Fed and her bosses, claiming she was retaliated against for refusing to back down from a negative finding about Goldman Sachs. A judge threw out the case this year without ruling on the merits, saying the facts didn’t fit the statute under which she sued.

At the bottom of a document filed in the case, however, her lawyer disclosed a stunning fact: Segarra had made a series of audio recordings while at the New York Fed. Worried about what she was witnessing, Segarra wanted a record in case events were disputed. So she had purchased a tiny recorder at the Spy Store and began capturing what took place at Goldman and with her bosses.

Segarra ultimately recorded about 46 hours of meetings and conversations with her colleagues. Many of these events document key moments leading to her firing. But against the backdrop of the Beim report, they also offer an intimate study of the New York Fed’s culture at a pivotal moment in its effort to become a more forceful financial supervisor. Fed deliberations, confidential by regulation, rarely become public.”

In an attempt at damage control, the Fed was looking for a favorable review. What they got was not what they wanted, N.Y. Fed Staff Afraid to Speak Up, Secret Review Found.

“The investigation, conducted by Columbia University finance professor David Beim, was initially confidential but was later released by the Financial Crisis Inquiry Commission.

Mr. Beim’s report called on the New York Fed to demand that its regulatory staffers maintain a “more distanced, high-level and skeptical view” of how the banks they oversee make money.”

A Short History of the Breathtaking Cluelessness of U.S. Financial Regulators, is outlined by the Motley Fool analysis. Any serious observer of the cozy relationships that permeate the financial community knows all too well, that the revolving door turns when favorable regulation decisions spin in the right direction.

The significance of this latest scandal, points out just how the regulation process is conducted in the suites of money manipulation. This next account is most telling; You Should Listen To The Goldman New York Fed Story.

“This American Life has a banking supervision story that turns on secret recordings made by a former employee of the New York Fed, Carmen Segarra, and it’s pretty good, because it shows how regulators basically do a lot of their regulating of banks through meetings, with no action items after. That’s weird, and it’s instructive to see how intertwined banking and supervision are. There’s a killer meeting after a meeting with Goldman Sachs where Fed employees talk about what happened, and – though we don’t know what was left on the cutting room floor – the modesty of the regulatory options being considered is fascinating. Nothing about fines, stopping certain sorts of deals, stern letters, or anything else. The talk is self-congratulation (for having that meeting with Goldman) and “let’s not get too judgmental, here, guys.”

The takeaway of the story, which is blessedly not an example of the “me mad, banksters bad!” genre, is that this kind of regulation isn’t very effective. It clearly hasn’t prevented banks from being insanely profitable until recently, in a way that you’d think would get competed away in open markets.”

Why is Goldman exempt from any meaningful oversight? William D. Cohen over at Politico provides an answer to the question, Why the Fed Will Always Wimp Out on Goldman.

“Although Michael Silva, Segarra’s superior, didn’t doubt that the Goldman-Santander transaction was legal, he didn’t think it passed the smell test. “It’s pretty apparent when you think this thing through that it’s basically window dressing that’s designed to help Banco Santander artificially enhance its capital position,” he told his New York Fed team before a meeting on the topic with Goldman executives.”

Segarra thought her boss’s pre-occupation with whether Goldman “should” have done the deal, or been allowed to do the deal, was all just a big waste of time and obfuscated the larger issue that Goldman, and other Wall Street banks, were busy pushing around a key regulator – the New York Fed – rather than the other way around. She worried that her bosses were focusing on “fuzzy” and “esoteric” issues such as Goldman’s “reputational risk.” Silva also shared with Segarra that it was all moot anyway, because Tom Baxter, the New York Fed’s general counsel, had, he said, “reined him in” on the subject. “I was all fired up, and he doesn’t want me getting the Fed to assert powers it doesn’t have,” Silva tells Segarra, according to the tape recording.”

Breaking down all the details and dialogues that transpire in the normal course of banking reviews comes down to the undeniable fact that Goldman is in charge of the process. The ownership of the Federal Reserve, a private entity, is ultimately owned by the shadow families that control the major financial institutions. Only a very naïve analysis or a compromised minion of the financial elite Plutocracy would dispute the power and clout that is applied to the political nature of regulatory oversight.

Bankster’s earn this graphic title by the way they conduct their protection racket. Courageous regulators like Carmen Segarra are treated as traitors to a system that is designed to facilitate every abuse that firms like Goldman can devise. Now you know who really owns the gold, because they make up whatever rules that foster their financial corruption.

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