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Paul Merrell

US Military Uses IMF and World Bank to Launder 85% of Its Black Budget | Global Researc... - 1 views

  • hough transparency was a cause he championed when campaigning for the presidency, President Obama has largely avoided making certain defense costs known to the public. However, when it comes to military appropriations for government spy agencies, we know from Freedom of Information Act requests that the so-called “black budget” is an increasingly massive expenditure subsidized by American taxpayers. The CIA and and NSA alone garnered $52.6 billion in funding in 2013 while the Department of Defense black ops budget for secret military projects exceeds this number. It is estimated to be $58.7 billion for the fiscal year 2015. What is the black budget? Officially, it is the military’s appropriations for “spy satellites, stealth bombers, next-missile-spotting radars, next-gen drones, and ultra-powerful eavesdropping gear.” However, of greater interest to some may be the clandestine nature and full scope of the black budget, which, according to analyst Catherine Austin Fitts, goes far beyond classified appropriations. Based on her research, some of which can be found in her piece “What’s Up With the Black Budget?,” Fitts concludes that the during the last decade, global financial elites have configured an elaborate system that makes most of the military budget unauditable. This is because the real black budget includes money acquired by intelligence groups via narcotics trafficking, predatory lending, and various kinds of other financial fraud.
  • The result of this vast, geopolitically-sanctioned money laundering scheme is that Housing and Urban Devopment and other agencies are used for drug trafficking and securities fraud. According to Fitts, the scheme allows for at least 85 percent of the U.S. federal budget to remain unaudited. Fitts has been researching this issue since 2001, when she began to believe that a financial coup d’etat was underway. Specifically, she suspected that the banks, corporations, and investors acting in each global region were part of a “global heist,” whereby capital was being sucked out of each country. She was right.
  • As Fitts asserts, “[She] served as Assistant Secretary of Housing at the US Department of Housing and Urban Development (HUD) in the United States where I oversaw billions of government investment in US communities…..I later found out that the government contractor leading the War on Drugs strategy for U.S. aid to Peru, Colombia and Bolivia was the same contractor in charge of knowledge management for HUD enforcement. This Washington-Wall Street game was a global game. The peasant women of Latin America were up against the same financial pirates and business model as the people in South Central Los Angeles, West Philadelphia, Baltimore and the South Bronx.” This is part of an even larger financial scheme. It is fairly well-established by now that international financial institutions like the World Trade Organization, the World Bank, and the International Monetary Fund operate primarily as instruments of corporate power and nation-controlling infrastructure investment mechanisms. For example, the primary purpose of the World Bank is to bully developing countries into borrowing money for infrastructure investments that will fleece trillions of dollars while permanently indebting these “debtor” nations to West. But how exactly does the World Bank go about doing this? John Perkins wrote about this paradigm in his book, Confessions of an Economic Hitman. During the 1970s, Perkins worked for the international engineering consulting firm, Chas T. Main, as an “economic hitman.” He says the operations of the World Bank are nothing less than “pure economic colonization on behalf of powerful corporations and banks that use the United States government as their tool.”
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  • In his book, Perkins discusses Joseph Stiglitz, the Chief Economist for the World Bank from 1997-2000, at length. Stiglitz described the four-step plan for bamboozling developing countries into becoming debtor nations: Step One, according to Stiglitz, is to convince a nation to privatize its state industries. Step Two utilizes “capital market liberalization,” which refers to the sudden influx of speculative investment money that depletes national reserves and property values while triggering a large interest bump by the IMF. Step Three, Stiglitz says, is “Market-Based Pricing,” which means raising the prices on food, water and cooking gas. This leads to “Step Three and a Half: The IMF Riot.” Examples of this can be seen in Indonesia, Bolivia, Ecuador and many other countries where the IMF’s actions have caused financial turmoil and social strife. Step 4, of course, is “free trade,” where all barriers to the exploitation of local produce are eliminated. There is a connection between the U.S. black budget and the trillion dollar international investment fraud scheme. Our government and the banking cartels and corporatocracy running it have configured a complex screen to block our ability to audit their budget and the funds they use for various black op projects. However, they can not block our ability to uncover their actions and raise awareness.
Gary Edwards

Why the Ruling Class is So Upset About Edward Snowden » CounterPunch: Tells t... - 0 views

  • the networks now compete with one another to generate outrage—not at the spying, mind you, but at Snowden for violating the law.
  • O’Reilly’s current position is that while a hero, Snowden should be placed on trial and judged by a jury. Which is to say, he should be apprehended abroad, brought back in handcuffs and treated to the same benefits of the U.S. judicial system enjoyed by a Bradley Manning or a Guantanamo detainee.
  • He broke the law! He told us: “Any analyst at any time can target anyone.”
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  • “He took an oath,” thunders Dianne Feinstein
  • chair of the Senate Intelligence Committee (and thus someone complicit in the spying programs).
  • What she means by this is that he broke his pledge, made when he became an employee of the CIA contractor Booz Allen Hamilton—which helps handle the massive effort to monitor all of us daily—to conceal any secrets he obtained as an employee.
  • She is of course not referring to the oath he made at the same time, to uphold the Constitution of the United States, which says very clearly that “the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated…”
  • Snowden has not merely revealed that the U.S. government has forced service providers Microsoft, Yahoo, Google, Facebook, PalTalk, AOL, Skype, YouTube and Apple to share all their records with itself, in the form of mega-data that can only be accessed for content following the issuance of warrants from (secret) courts, in order to thwart real or imagined terrorist plots. He hasn’t merely shown that the NSA intercepts 1.7 billion electronic records every day (in order, of course, to thwart the terrorists). He has charged the following:
  • The FBI’s “Counterintelligence Program” (COINTELPRO), active from 1956 to 1971, collected information through wiretaps and other means with the specific objective of destroying civil rights and left-wing organizations.
  • Snowden indicates that those with that power can indeed gain access to what Bill Clinton recently called the “meat” of your communications.
  • That is, every word you’ve spoken on the phone recently, or maybe for several years; or test-messaged or instant-messaged online; can be accessed by government “analysts” at their whim.
  • in 2008, ABC News revealed that National Security Agency staffers enjoyed monitoring satellite phone sex involving U.S. officers in Iraq. It’s worth quoting at length.
  • “‘These were just really everyday, average, ordinary Americans who happened to be in the Middle East, in our area of intercept and happened to be making these phone calls on satellite phones,’ said Adrienne Kinne, a 31-year old US Army Reserves Arab linguist assigned to a special military program at the NSA’s Back Hall at Fort Gordon from November 2001 to 2003. Kinne described the contents of the calls as ‘personal, private things with Americans who are not in any way, shape or form associated with anything to do with terrorism.’ [...] Another intercept operator, former Navy Arab linguist, David Murfee Faulk, 39, said he and his fellow intercept operators listened into hundreds of Americans picked up using phones in Baghdad’s Green Zone from late 2003 to November 2007. ‘Calling home to the United States, talking to their spouses, sometimes their girlfriends, sometimes one phone call following another,’ said Faulk. [...] ‘Hey, check this out,’ Faulk says he would be told, ‘there’s good phone sex or there’s some pillow talk, pull up this call, it’s really funny, go check it out. It would be some colonel making pillow talk and we would say, ‘Wow, this was crazy,’ Faulk told ABC News.”
  • If that’s the way NSA analysts could deal with U.S. military officers in Iraq—fellow cogs in the system, fighting on behalf of U.S. imperialism—how much respect do you suppose they have for you and your privacy? For your security from their searches, their violations?
  • But the main issue is not your protection from phone-sex interlopers, but protection from those who want to do you harm.
  • “Any analyst at any time can target anyone. Any selector, anywhere… I, sitting at my desk, certainly had the authorities to wiretap anyone, from you or your accountant, to a federal judge, to even the President…”
  • One of its stated missions was to use surveillance on activists to release negative personal information to the public to discredit them. In many instances the agents succeeded, and they ruined lives. And their abilities to do so pale in comparison with the abilities of Obama’s NSA.
  • the Bush administration would be willing to learn a thing or two about domestic spying from the experts of the former Stasi. What ruling elite has ever gained more total information awareness about its citizens than the old German Democratic Republic?  And done it with such elegant legal scaffolding?
  • As historians such as Katherine Pence and Paul Betts have shown, the GDR authorities operated within scrupulously observed legal constraints. One sees this in the film Das Leben der Anderen (The Lives of Others) produced in the reunited Germany in 2006. It depicts the surveillance culture of the former East Germany, leaving the viewer nauseated.
  • Everything according to law.
  • I thought of that film while reading the lead Boston Globe editorial on June 13. It concludes that the “policies that [Snowden revealed], however objectionable, are properly authorized” while Snowden himself “broke the law.”
  • It all, in my humble opinion, boils down to thi
  • U.S. to World: “You Must View Snowden as a Criminal, and Give Him Back”
  • Suddenly, the Cold War has reappeared. Snowden is charged with espionage, some of his critics alleging that he’s in the service of the PRC and/or Russia or other “enemies.” It in fact appears that Beijing and Moscow both were taken by surprise by this episode, and that both have attempted to handle Snowden’s unexpected presence carefully to avoid annoying the U.S.
  • The entirety of the ruling elite and the journalistic establishment are keen on defending the programs Snowden has exposed; keen on punishing him for his whistle-blowing; determined to vilify him as a punk, narcissist, egoist, attention-hungry ne’er-do-well (anything but a thoughtful man who made a moral choice that has enlightened people about the character of the U.S. government); feverishly working on damage control while anticipating more damning revelations; and determined to get those four laptops with their incriminating content back into the bosom of the national security state.
  • Thus, you see, he’s not a whistle-blower but a criminal.
  • No, there are us, and there are them. The tiny power elite that controls the mainstream press and cable channels, the corporations that dutifully hand over mega-data to the state (and then deny doing so to allay consumer outrage), the twin political parties, are sick to their stomachs that they’ve been so exposed. We in our turn should feel, if not terrorized, nauseated.
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    This is a fun and enlightening read.  Extremely well written!  Maybe the most complete statement of both the facts of the Snowden - NSA disclosure event, and the mix of heartache and anger I feel about it.  Gut wrenching, nauseating and sick to my soul over what these clowns are doing to this great Republic, the Constitution, and the brief history of individual liberty this country represents.  Nicely written summary.
Paul Merrell

Leaked Draft of Trump's Religious Freedom Order Reveals Sweeping Plans to Legalize Disc... - 0 views

  • leaked copy of a draft executive order titled “Establishing a Government-Wide Initiative to Respect Religious Freedom,” obtained by The Investigative Fund and The Nation, reveals sweeping plans by the Trump administration to legalize discrimination.
  • The four-page draft order, a copy of which is currently circulating among federal staff and advocacy organizations, construes religious organizations so broadly that it covers “any organization, including closely held for-profit corporations,” and protects “religious freedom” in every walk of life: “when providing social services, education, or healthcare; earning a living, seeking a job, or employing others; receiving government grants or contracts; or otherwise participating in the marketplace, the public square, or interfacing with Federal, State or local governments.” The draft order seeks to create wholesale exemptions for people and organizations who claim religious or moral objections to same-sex marriage, premarital sex, abortion, and trans identity, and it seeks to curtail women’s access to contraception and abortion through the Affordable Care Act. The White House did not respond to requests for comment
  • Language in the draft document specifically protects the tax-exempt status of any organization that “believes, speaks, or acts (or declines to act) in accordance with the belief that marriage is or should be recognized as the union of one man and one woman, sexual relations are properly reserved for such a marriage, male and female and their equivalents refer to an individual’s immutable biological sex as objectively determined by anatomy, physiology, or genetics at or before birth, and that human life begins at conception and merits protection at all stages of life.”
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    Let's not forget that it was the Obama Administration that threw First Amendment jurisprudence into disarray by arguing in the Hobby Lobby case that 501(c)(3) corporations owned by churches should not be required to obey the First Amendment. Now we see the result.
Paul Merrell

EXCLUSIVE: Chase to Charge Customers Fees For Handing Cash Deposits - Top US World News... - 0 views

  • Beginning August 1st of this year, JP Morgan & Chase Co. will charge their customers for depositing cash into their accounts. According to an internal document sent to account holders, in less than a month from now “the fee for all types of Cash Deposit Processing (CDP) will be $0.25 per $100 [deposited]. The CDP fee will only apply after you exceed your account’s cash deposit limit.” One reason for Chase to charge their customers a fee on cash deposits may reside in the fact that the major banks are “charging customers who deposit lots of cash.” Wherein Chase is charging customers for every $100 in cash deposited, other banks are charging on every cash deposit of $10,000; or $0.20 on every $100 deposited. Kris Dawsey, economist for Goldman Sachs, warned about banks charging customers fees for simply depositing cash into their account in 2013.
  • When asked about a meeting of the Federal Reserve (Fed) Board and the Federal Open Market Committee (FOMC), wherein it was revealed that the 0.25% annual interest rate on money that the banks keep in the Fed would be reduced, Dawsey said: “One risk is that the move could prompt charges … on bank deposits.” Last November, Kristin Lemkau, spokesperson for JP Morgan & Chase Co said: “We have no intention of charging for retail customer deposits.” However this promise has not been kept. David George, analyst for Robert W. Baird & Co, explains that the financial institutions “would need to find alternative revenue sources to compensate” because of this decline in the Fed’s interest rate and fees on deposits “would be the most likely” option.
  • George said: “Having a bank account is a service, like the water and electric bill. And it has become less and less profitable.” Wayne Abernathy, executive vice president of the American Bankers Association confirmed: “Banks could respond to a drop in the Fed’s interest rate by charging a fee to large business customers that hold millions of dollars in savings accounts. Banks must bear the expense of managing that money.” Analysts say the Durbin Amendment within the Dodd Frank Act which limited fees imposed by merchant retailers onto banks who issue debit cards “has effectively hit consumer-banking revenues pretty hard.” When accessing debits, banks view checking accounts as high-risk and costing “a lot of money” to the banks.
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    Remember the days when banks' only source of money to lend was customer deposits?
Paul Merrell

Latest FBI Claim of Disrupted Terror Plot Deserves Much Scrutiny and Skepticism - The I... - 0 views

  • The Justice Department on Wednesday issued a press release trumpeting its latest success in disrupting a domestic terrorism plot, announcing that “the Joint Terrorism Task Force has arrested a Cincinnati-area man for a plot to attack the U.S. Capitol and kill government officials.” The alleged would-be terrorist is 20-year-old Christopher Cornell (above), who is unemployed, lives at home, spends most of his time playing video games in his bedroom, still addresses his mother as “Mommy” and regards his cat as his best friend; he was described as “a typical student” and “quiet but not overly reserved” by the principal of the local high school he graduated in 2012.
  • The DOJ’s press release predictably generated an avalanche of scary media headlines hailing the FBI. CNN: “FBI says plot to attack U.S. Capitol was ready to go.” MSNBC: “US terror plot foiled by FBI arrest of Ohio man.” Wall St. Journal: “Ohio Man Charged With Plotting ISIS-Inspired Attack on U.S. Capitol.”
  • Just as predictably, political officials instantly exploited the news to justify their powers of domestic surveillance. House Speaker John Boehner claimed yesterday that “the National Security Agency’s snooping powers helped stop a plot to attack the Capitol and that his colleagues need to keep that in mind as they debate whether to renew the law that allows the government to collect bulk information from its citizens.” He warned: “We live in a dangerous country, and we get reminded every week of the dangers that are out there.”  The known facts from this latest case seem to fit well within a now-familiar FBI pattern whereby the agency does not disrupt planned domestic terror attacks but rather creates them, then publicly praises itself for stopping its own plots.
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  • First, they target a Muslim: not due to any evidence of intent or capability to engage in terrorism, but rather for the “radical” political views he expresses. In most cases, the Muslim targeted by the FBI is a very young (late teens, early 20s), adrift, unemployed loner who has shown no signs of mastering basic life functions, let alone carrying out a serious terror attack, and has no known involvement with actual terrorist groups. They then find another Muslim who is highly motivated to help disrupt a “terror plot”: either because they’re being paid substantial sums of money by the FBI or because (as appears to be the case here) they are charged with some unrelated crime and are desperate to please the FBI in exchange for leniency (or both). The FBI then gives the informant a detailed attack plan, and sometimes even the money and other instruments to carry it out, and the informant then shares all of that with the target. Typically, the informant also induces, lures, cajoles, and persuades the target to agree to carry out the FBI-designed plot. In some instances where the target refuses to go along, they have their informant offer huge cash inducements to the impoverished target. Once they finally get the target to agree, the FBI swoops in at the last minute, arrests the target, issues a press release praising themselves for disrupting a dangerous attack (which it conceived of, funded, and recruited the operatives for), and the DOJ and federal judges send their target to prison for years or even decades (where they are kept in special GITMO-like units). Subservient U.S. courts uphold the charges by applying such a broad and permissive interpretation of “entrapment” that it could almost never be successfully invoked. As AP noted last night, “defense arguments have repeatedly failed with judges, and the stings have led to many convictions.”
  • There are countless similar cases where the FBI triumphantly disrupts its own plots, causing people to be imprisoned as terrorists who would not and could not have acted on their own. Trevor Aaronson has comprehensively covered what amounts to the FBI’s own domestic terror network, and has reported that “nearly half [of all DOJ terrorism] prosecutions involved the use of informants, many of them incentivized by money (operatives can be paid as much as $100,000 per assignment) or the need to work off criminal or immigration violation.” He documents “49 [terrorism] defendants [who] participated in plots led by an agent provocateur—an FBI operative instigating terrorist action.” In 2012, Petra Bartosiewicz in The Nation reviewed the post-9/11 body of terrorism cases and concluded: Nearly every major post-9/11 terrorism-related prosecution has involved a sting operation, at the center of which is a government informant. In these cases, the informants — who work for money or are seeking leniency on criminal charges of their own — have crossed the line from merely observing potential criminal behavior to encouraging and assisting people to participate in plots that are largely scripted by the FBI itself. Under the FBI’s guiding hand, the informants provide the weapons, suggest the targets and even initiate the inflammatory political rhetoric that later elevates the charges to the level of terrorism.
Gary Edwards

Larry Summers and the Secret End Game Memo - by Greg Palast | Investigative Reporter - 1 views

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    excerpt: "The year was 1997.  US Treasury Secretary Robert Rubin was pushing hard to de-regulate banks.  That required, first, repeal of the Glass-Steagall Act to dismantle the barrier between commercial banks and investment banks.  It was like replacing bank vaults with roulette wheels. Second, the banks wanted the right to play a new high-risk game:  "derivatives trading."  JP Morgan alone would soon carry $88 trillion of these pseudo-securities on its books as "assets." Deputy Treasury Secretary Summers (soon to replace Rubin as Secretary) body-blocked any attempt to control derivatives. But what was the use of turning US banks into derivatives casinos if money would flee to nations with safer banking laws? The answer conceived by the Big Bank Five:  eliminate controls on banks in every nation on the planet - in one single move.    It was as brilliant as it was insanely dangerous. How could they pull off this mad caper?  The bankers' and Summers' game was to use the Financial Services Agreement, an abstruse and benign addendum to the international trade agreements policed by the World Trade Organization. Until the bankers began their play, the WTO agreements dealt simply with trade in goods-that is, my cars for your bananas.  The new rules ginned-up by Summers and the banks would force all nations to accept trade in "bads" - toxic assets like financial derivatives. Until the bankers' re-draft of the FSA, each nation controlled and chartered the banks within their own borders.  The new rules of the game would force every nation to open their markets to Citibank, JP Morgan and their derivatives "products." And all 156 nations in the WTO would have to smash down their own Glass-Steagall divisions between commercial savings banks and the investment banks that gamble with derivatives. The job of turning the FSA into the bankers' battering ram was given to Geithner, who was named Ambassador to the World Trade Organization. "
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    Greg Palast does good work. I'm reminded of a passage from Carl Oglesby's The Yankee and Cowboy War where he argued rather convincingly that conspiracy is the norm rather than the exception at the boundary line between government and big business.
Paul Merrell

Ukraine, Georgia and Moldova to obtain non-NATO ally status, increase in transfer of mi... - 0 views

  • The U.S. Congress passed in two readings a Russian aggression prevention bill that provides major non-NATO ally status for Ukraine, Georgia, and Moldova (during the period in which each of such countries meets specified criteria) for purposes of the transfer or possible transfer of defense articles or defense services. The bill was submitted to the competent commission for being prepared for the final reading, APA reports, quoting the official website of the U.S. Congress. The bill directs President Barack Obama to increase U.S. Armed Forces interactions with the armed forces of Ukraine, Georgia, Moldova, Azerbaijan, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro, and Serbia; and U.S and NATO security assistance to such states. Armenia is not included in the list. The bill also amends the Natural Gas Act to apply the expedited application and approval process for natural gas exports to World Trade Organization members, and urges the U.S. Agency for International Development (USAID), the Trade and Development Agency, the Overseas Private Investment Corporation (OPIC), the World Bank Group, and the European Bank for Reconstruction to promote assistance to Ukraine, Georgia, and Moldova in order to exploit natural gas and oil reserves and to develop alternative energy sources.
  • The document prohibits any federal department or agency from taking any action that recognizes Russian Federation sovereignty over Crimea or otherwise endorses the Russian Federation’s illegal annexation of Crimea, and directs the Secretary of State to strengthen democratic institutions, the independent media, and political and civil society organizations in countries of the former Soviet Union; and increase educational and cultural exchanges with countries of the former Soviet Union.
Paul Merrell

The Untouchables: How the Obama administration protected Wall Street from prosecutions ... - 0 views

  • PBS' Frontline program on Tuesday night broadcast a new one-hour report on one of the greatest and most shameful failings of the Obama administration: the lack of even a single arrest or prosecution of any senior Wall Street banker for the systemic fraud that precipitated the 2008 financial crisis: a crisis from which millions of people around the world are still suffering. What this program particularly demonstrated was that the Obama justice department, in particular the Chief of its Criminal Division, Lanny Breuer, never even tried to hold the high-level criminals accountable. What Obama justice officials did instead is exactly what they did in the face of high-level Bush era crimes of torture and warrantless eavesdropping: namely, acted to protect the most powerful factions in the society in the face of overwhelming evidence of serious criminality. Indeed, financial elites were not only vested with immunity for their fraud, but thrived as a result of it, even as ordinary Americans continue to suffer the effects of that crisis.
  • Worst of all, Obama justice officials both shielded and feted these Wall Street oligarchs (who, just by the way, overwhelmingly supported Obama's 2008 presidential campaign) as they simultaneously prosecuted and imprisoned powerless Americans for far more trivial transgressions. As Harvard law professor Larry Lessig put it two weeks ago when expressing anger over the DOJ's persecution of Aaron Swartz: "we live in a world where the architects of the financial crisis regularly dine at the White House." (Indeed, as "The Untouchables" put it: while no senior Wall Street executives have been prosecuted, "many small mortgage brokers, loan appraisers and even home buyers" have been).
Joe La Fleur

Disgraceful: Obama adds socialist Buffett rule to Reagan's White House bio pa... - 1 views

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    Reagan's exact words in pushing his "tax fairness" plan in that speech: "Just a few moments ago, I told some people inside the building here of a letter that I just received the day before yesterday. It's a letter from a man out here in the country, an executive who's earning in six figures -- well above $100,000 a year. He wrote me in support of the tax plan because he said, 'I am legally able to take advantage of the present tax code -- nothing dishonest, doing what the law prescribes -- and wind up paying a smaller salary than my secretary gets -- or I mean, paying a smaller -- I'm sorry, *paying a smaller tax than my secretary pays.'* And he wrote me the letter to tell me he'd like to come to Washington and testify before Congress as to how that's possible for him to do and why it is wrong. So, this is the kind of spirit that is going on throughout the country." http://www.reagan.utexas.edu/archives/speeches/1985/62885b.htm Read the whole speech. Reagan was pushing the Buffet rule long before Buffet did. What's said on Reagan's bio page is accurate. And Reagan signed the Tax Equity and Fiscal Responsibility Act of 1982, the largest peacetime tax increase in U.S. history. Reagan was no saint, just another big-spending politician willing to bend with the political winds. He did far more talking about supply-side economics than he did even attempting to implement the concept. Just more politician hot air. I'm going to vote for Ron Paul even if I have to write in his name on the ballot. I don't truck with the anti-Obama propaganda. That's just playing into Romney's hands. But Romney is just the flip side of the same coin Obama's on, two corporatist- bankster sycophants eager to run this nation into the ground to keep waging expensive foreign wars for the military-industrial types. Trading Obama for Romney leaves us neither better nor worse off. Two peas in the same pod. Better to send a message than to become a co-conspirator by voting for either Obama or Rom
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