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Paul Merrell

Bail-In and the Financial Stability Board: The Global Bankers' Coup | nsnbc international - 0 views

nsnbc.me/...lity-board-global-bankers-coup

banksters G20 Financial-Stability-Board must-read

shared by Paul Merrell on 13 Dec 14 - No Cached
  • Ellen H. Brown (WoD) : On December 11, 2014, the US House passed a bill repealing the Dodd-Frank requirement that risky derivatives be pushed into big-bank subsidiaries, leaving our deposits and pensions exposed to massive derivatives losses. The bill was vigorously challenged by Senator Elizabeth Warren; but the tide turned when Jamie Dimon, CEO of JPMorganChase, stepped into the ring. Perhaps what prompted his intervention was the unanticipated $40 drop in the price of oil. As financial blogger Michael Snyder points out, that drop could trigger a derivatives payout that could bankrupt the biggest banks. And if the G20’s new “bail-in” rules are formalized, depositors and pensioners could be on the hook. The new bail-in rules were discussed in my last last article entitled “New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners.” They are edicts of the Financial Stability Board (FSB), an unelected body of central bankers and finance ministers headquartered in the Bank for International Settlements in Basel, Switzerland. Where did the FSB get these sweeping powers, and is its mandate legally enforceable?
  • Those questions were addressed in an article I wrote in June 2009, two months after the FSB was formed, titled “Big Brother in Basel: BIS Financial Stability Board Undermines National Sovereignty.” It linked the strange boot shape of the BIS to a line from Orwell’s 1984: “a boot stamping on a human face—forever.” The concerns raised there seem to be materializing, so I’m republishing the bulk of that article here. We need to be paying attention, lest the bail-in juggernaut steamroll over us unchallenged. The Shadowy Financial Stability Board Alarm bells went off in April 2009, when the Bank for International Settlements (BIS) was linked to the new Financial Stability Board (FSB) signed onto by the G20 leaders in London. The FSB was an expansion of the older Financial Stability Forum (FSF) set up in 1999 to serve in a merely advisory capacity by the G7 (a group of finance ministers formed from the seven major industrialized nations). The chair of the FSF was the General Manager of the BIS. The new FSB was expanded to include all G20 members (19 nations plus the EU).
  • Formally called the “Group of Twenty Finance Ministers and Central Bank Governors,” the G20 was, like the G7, originally set up as a forum merely for cooperation and consultation on matters pertaining to the international financial system. What set off alarms was that the new Financial Stability Board had real teeth, imposing “obligations” and “commitments” on its members; and this feat was pulled off without legislative formalities, skirting the usual exacting requirements for treaties. It was all done in hasty response to an “emergency.” Problem-reaction-solution was the slippery slope of coups. Buried on page 83 of an 89-page Report on Financial Regulatory Reform issued by the US Obama administration was a recommendation that the FSB strengthen and institutionalize its mandate to promote global financial stability. It sounded like a worthy goal, but there was a disturbing lack of detail. What was the FSB’s mandate, what were its expanded powers, and who was in charge? An article in The London Guardian addressed those issues in question and answer format:
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  • For three centuries, private international banking interests have brought governments in line by blocking them from issuing their own currencies and requiring them to borrow banker-issued “banknotes” instead. Political colonialism is now a thing of the past, but under the new FSB guidelines, nations could still be held in feudalistic subservience to foreign masters. Consider this scenario: the new FSB rules precipitate a massive global depression due to contraction of the money supply. XYZ country wakes up to the fact that all of this is unnecessary – that it could be creating its own money, freeing itself from the debt trap, rather than borrowing from bankers who create money on computer screens and charge interest for the privilege of borrowing it. But this realization comes too late: the boot descends and XYZ is crushed into line. National sovereignty has been abdicated to a private committee, with no say by the voters. Marilyn Barnewall, dubbed by Forbes Magazine the “dean of American private banking,” wrote in an April 2009 article titled “What Happened to American Sovereignty at G-20?”: It seems the world’s bankers have executed a bloodless coup and now represent all of the people in the world. . . . President Obama agreed at the G20 meeting in London to create an international board with authority to intervene in U.S. corporations by dictating executive compensation and approving or disapproving business management decisions.  Under the new Financial Stability Board, the United States has only one vote. In other words, the group will be largely controlled by European central bankers. My guess is, they will represent themselves, not you and not me and certainly not America.
  • Are these commitments legally binding? Adoption of the FSB was never voted on by the public, either individually or through their legislators. The G20 Summit has been called “a New Bretton Woods,” referring to agreements entered into in 1944 establishing new rules for international trade. But Bretton Woods was put in place by Congressional Executive Agreement, requiring a majority vote of the legislature; and it more properly should have been done by treaty, requiring a two-thirds vote of the Senate, since it was an international agreement binding on the nation. “Bail-in” is not the law yet, but the G20 governments will be called upon to adopt the FSB’s resolution measures when the proposal is finalized after taking comments in 2015. The authority of the G20 has been challenged, but mainly over whether important countries were left out of the mix. The omitted countries may prove to be the lucky ones, having avoided the FSB’s net.
Paul Merrell

New Snowden docs show U.S. spied during G20 in Toronto - Politics - CBC News - 0 views

www.cbc.ca/...uring-g20-in-toronto-1.2442448

surveillance state NSA Canada CSEC G8 G20

shared by Paul Merrell on 29 Nov 13 - No Cached
  • Top secret documents retrieved by U.S. whistleblower Edward Snowden show that Prime Minister Stephen Harper's government allowed the largest American spy agency to conduct widespread surveillance in Canada during the 2010 G8 and G20 summits.
  • The briefing notes, stamped "Top Secret," show the U.S. turned its Ottawa embassy into a security command post during a six-day spying operation by the National Security Agency while U.S. President Barack Obama and 25 other foreign heads of government were on Canadian soil in June of 2010. The covert U.S. operation was no secret to Canadian authorities.
  • Notably, the secret NSA briefing document describes part of the U.S. eavesdropping agency's mandate at the Toronto summit as "providing support to policymakers." Documents previously released by Snowden, a former NSA contractor who has sought and received asylum in Russia, suggested that support at other international gatherings included spying on the foreign delegations to get an unfair advantage in any negotiations or policy debates at the summit. It was those documents that first exposed the spying on world leaders at the London summit. More recently, Snowden's trove of classified information revealed Canada's eavesdropping agency had hacked into phones and computers in the Brazilian government's department of mines, a story that touched off a political firestorm both in that country and in Ottawa.
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  • The secret documents do not reveal the precise targets of so much espionage by the NSA — and possibly its Canadian partner — during the Toronto summit. But both the U.S. and Canadian intelligence agencies have been implicated with their British counterpart in hacking the phone calls and emails of foreign politicians and diplomats attending the G20 summit in London in 2009 — a scant few months before the Toronto gathering of the same world leaders.
  • The spying at the Toronto summit in 2010 fits a pattern of economic and political espionage by the powerful U.S. intelligence agency and its partners such as Canada. That espionage was conducted to secure meeting sites and protect leaders against terrorist threats posed by al-Qaeda but also to forward the policy goals of the United States and Canada. The G20 summit in Toronto had a lot on its agenda that would have been of acute interest to the NSA and Canada.
  • The world was still struggling to climb out of the great recession of 2008. Leaders were debating a wide array of possible measures including a global tax on banks, an idea strongly opposed by both the U.S. and Canadian governments. That notion was eventually scotched. The secret NSA documents list all the main agenda items for the G20 in Toronto — international development, banking reform, countering trade protectionism, and so on — with the U.S. snooping agency promising to support "U.S. policy goals." Whatever the intelligence goals of the NSA during the Toronto summit, international security experts question whether the NSA spying operation at the G20 in Toronto was even legal.
  • "If CSEC tasked NSA to conduct spying activities on Canadians within Canada that CSEC itself was not authorized to take, then I am comfortable saying that would be an unlawful undertaking by CSEC," says Craig Forcese, an expert in national security at University of Ottawa's faculty of law. By law, CSEC cannot target anyone in Canada without a warrant, including world leaders and foreign diplomats at a G20 summit. But, the Canadian eavesdropping agency is also prohibited by international agreement from getting the NSA to do the spying or anything that would be illegal for CSEC.
  • The NSA warns the more likely security threat would come from "issue-based extremists" conducting acts of vandalism. They got that right. Protest marches by about 10,000 turned the Toronto G20 into an historic melee of arrests by more than 20,000 police in what would become one of the largest and most expensive security operations in Canadian history. By the time the tear gas had cleared and the investigations were complete, law enforcement agencies stood accused of mass-violations of civil rights. Add to that dubious legacy illegal spying by an American intelligence agency with the blessing of the Canadian government.
Paul Merrell

The West Dethroned -- Paul Craig Roberts - PaulCraigRoberts.org - 0 views

www.paulcraigroberts.org/...t-dethroned-paul-craig-roberts

war & peace G20-summit obama Israel AIPAC decline of the American Empire

shared by Paul Merrell on 09 Sep 13 - No Cached
  • The “New American Century” proclaimed by the neoconservatives came to an abrupt end on September 6 at the G20 meeting in Russia. The leaders of most of the world’s peoples told Obama that they do not believe him and that it is a violation of international law if the US government attacks Syria without UN authorization. Putin told the assembled world leaders that the chemical weapons attack was “a provocation on behalf of the armed insurgents in hope of the help from the outside, from the countries which supported them from day one.” In other words, Israel, Saudi Arabia, and Washington–the axis of evil. China, India, South Africa, Brazil, Indonesia, and Argentina joined Putin in affirming that a leader who commits military aggression without the approval of the UN Security Council puts himself “outside of law.” In other words, if you defy the world, obama, you are a war criminal.
  • We are yet to see an american president who can stand up to Israel. Or, for that matter, a Congress that can. Or a media. The obama regime tried to counter its smashing defeat at the G20 Summit by forcing its puppet states to sign a joint statement condemning Syria. However the puppet states qualified their position by stating that they opposed military action and awaited the UN report.
  • What this reveals is that the support behind the liar obama is feeble and limited. The ability of the Western countries to dominate international politics came to an end at the G20 meeting. The moral authority of the West is completely gone, shattered and eroded by countless lies and shameless acts of aggression based on nothing but lies and self-interests. Nothing remains of the West’s “moral authority,” which was never anything but a cover for self-interest, murder, and genocide.
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  • The idiot Western governments have pissed away their clout. There is no prospect whatsoever of the neoconservative fantasy of US hegemony being exercised over Russia, China, India, Brazil, South Africa, South America, Iran. These countries can establish their own system of international payments and finance and leave the dollar standard whenever they wish. One wonders why they wait. The US dollar is being printed in unbelievable quantities and is no longer qualified to be the world reserve currency. The US dollar is on the verge of total worthlessness. The G20 Summit made it clear that the world is no longer willing to go along with the West’s lies and murderous ways. The world has caught on to the West. Every country now understands that the bailouts offered by the West are merely mechanisms for looting the bailed-out countries and impoverishing the people.
  • In the 21st century Washington has treated its own citizens the way it treats citizens of third world countries. Untold trillions of dollars have been lavished on a handful of banks, while the banks threw millions of Americans out of their homes and seized any remaining assets of the broken families. US corporations had their taxes cut to practically nothing, with few paying any taxes at all, while the corporations gave the jobs and careers of millions of Americans to the Chinese and Indians. With those jobs went US GDP, tax base, and economic power, leaving Americans with massive budget deficits, a debased currency, and bankrupt cities, such as Detroit, which once was the manufacturing powerhouse of the world. How long before Washington shoots down its own homeless, hungry, and protesting citizens in the streets?
  • Washington represents Israel and a handful of powerful organized private interests. Washington represents no one else. Washington is a plague upon the American people and a plague upon the world. http://rt.com/news/g20-against-syria-strike-527/
  • About Dr. Paul Craig Roberts Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments.
  • Paul Merrell on 09 Sep 13
     
    Paul Craig Roberts makes a compelling case that the just-completed G20 summit is a historic event, marking the virtual end of U.S. ability to influence other nations to assist in imposing the Neocon/right-wing Israeli hegemonic agenda on the world. The Israel-first AIPAC lobbyists hit the hill beginning Monday morning to produce the authorization for war against Syria, painting it as essential to the Israeli goal of destroying the Iranian government. http://www.politico.com/story/2013/09/aipac-syria-96344.html The Israel-first lobby almost invariably attains its Congressional goals, regardless of those goals' damage to America. They are willing to fight to the very last drop of American blood to fulfill the Eeretz Israel dream of a Jewish empire in the Mideast and North Africa. Will Congress roll over for Israel's right-wing government yet again? We will know very soon. The key members of Congress to watch on their position in regard to war against Syria are those who are up for re-election next year. None will want to disturb voters this close to election by voting for war. Will that give them sufficient spine to withstand the Israel-firsters?  One can hope.  But the citizen message to Congress needs to be: "No to Obama. No to AIPAC. No to war."
Paul Merrell

Securing Our Digital Economy | Internet Society - 0 views

www.internetsociety.org/...securing-our-digital-economy

surveillance state Internet encryption G20 Internet-Society

shared by Paul Merrell on 10 May 17 - No Cached
  • Germany wants G20 leaders to agree to a concrete plan – one that includes affordable Internet access across the world by 2025, common technical standards and a focus on digital learning. Today, the G20 economies, like so many other economies around the world, are digital and interconnected. Digital services have opened up new avenues for sustainable economic growth. But, the digital economy will only continue to thrive and generate opportunities for citizens if the Internet is strong, secure, and trusted. Without this foundation, the global digital economy is at risk. Currently, there are 360 million people that take part in cross-border e-commerce. 28% of output in mature economies is digital. The Internet is set to contribute $6.6 trillion a year, or 7.1% of the total GDP in the G20 countries. And, by 2020, it’s estimated that more than 1 billion users will be added and there will be 30-50 billion additional connected devices. This level of interconnection will only boost the market. However, this cannot happen without a serious commitment by all parties to security and privacy. The truth is that economies can only function within a secure and trusted environment. Which brings us to encryption. Strong encryption is an essential piece to the future of the world’s economy and the Internet Society believes it should be the norm for all online transactions. It allows us to do our banking, conduct local and global business, run our power grids, operate, communications networks, and do almost everything else.
  • Encryption is a technical building block for securing infrastructure, communications and information. It should be made stronger and universal, not weaker. However, rather than being recognized as the way to secure our online transactions or our conversations, all too often the debate focuses on the use of encryption as a way to thwart law enforcement. To undermine the positive role of encryption in the name of security could have devastating consequences. Many great minds have already devoted considerable effort to resolving the conundrum posed by competing public policy objectives: providing security, safety and trust on the one hand, and law enforcement and legitimate policy goals on the other. But, it is time to stop kicking the encryption football up and down the field. Instead, we should recognize that encryption is key to the future digital economy and stop treating it as simply an obstacle to law enforcement. We need to deconstruct the issues faced by law enforcement and policy makers and agree together how we can achieve a trusted digital economy underpinned by encryption. This is the first time the G20 countries are holding a Ministerial on digital matters. It is also the first time that the G20 is inviting non-government stakeholders to contribute to these issues. This is a turning point that should not be missed. All views, including the technical perspective, must be at the table if we are to achieve progress on the G20’s ICT goals. If the G20 countries are serious about strengthening their economies and continuing to deliver economic and social prosperity to their citizens in future, there are three key principles they should endorse and implement immediately:
  • 1. Encryption is an important technical foundation for trust in the digital economy and should be the norm. All users (whether government, business or individual) should use encryption to protect infrastructure, communications and the privacy and integrity of their data. Encryption technologies should be strengthened, not weakened. 2. The security of the digital economy is a shared responsibility that needs the expertise and experience of all stakeholders, across border and across disciplines. It is an urgent need that will require open, inclusive collaboration. 3. Users’ rights should be at the heart of any decisions related to the digital economy. They are both the customers and the contributors to the success of the digital economy. The Internet Society calls for ubiquitous encryption for the Internet. We strongly believe that this is the best foundation for trust in the digital economy, and we urge the G20 nations to stand behind encryption.
Paul Merrell

Putin Outed ISIS's G20 Financiers - But Not a Single Western Media Outlet Has Reported ... - 1 views

www.globalresearch.ca/...5490047

war & peace ISIL-funding Putin news-blackout

shared by Paul Merrell on 20 Nov 15 - No Cached
  • We’ve been very patient. For the last 12 hours we’ve been constantly refreshing Google News for just one — one — western article about Putin’s bombshell comments at the G20 summit in Antalya. You would think that the Russian President stating publicly that ISIS is receiving money from 40 different countries, including G20 members, would be “newsworthy”. Right?  But the western media has defied even our worst expectations: Not a single mainstream western outlet reported on Putin’s comments. Typically, at least the Daily Beast has the common courtesy to distort or misrepresent the most recent Putin press conference. But in this instance, there is literally no written western record of Putin saying anything about who finances ISIS during the G20 summit in Turkey. This is insane.
Paul Merrell

Vladimir Putin Quoting Russian Intelligence: The Islamic State (ISIS) is Financed from ... - 0 views

www.globalresearch.ca/...5489485

war & peace Syria Russia Putin ISIL-funders

shared by Paul Merrell on 16 Nov 15 - No Cached
  • President Vladimir Putin says he’s shared Russian intelligence data on Islamic State financing with his G20 colleagues: the terrorists appear to be financed from 40 countries, including some G20 member states. During the summit, “I provided examples based on our data on the financing of different Islamic State (IS, formerly ISIS/ISIL) units by private individuals. This money, as we have established, comes from 40 countries and, there are some of the G20 members among them,” Putin told the journalists.
  • “It’s really difficult to criticize us,” he said, adding that Russia has repeatedly asked its foreign partners to provide data on terrorist targets in Syria. “They’re afraid to inform us on the territories which we shouldn’t strike, fearing that it is precisely where we’ll strike; that we are going to cheat everybody,” the president said. “Apparently, their opinion of us is based on their own concept of human decency,” he added. Putin told the media that Russia has already established contact with the Syrian opposition, which has asked Moscow not to carry out airstrikes in the territories it controls.
Gary Edwards

The Daily Bell - Occupy Wall Street Demands Global UN Tax and Worldwide G20 Protest - 0 views

www.thedailybell.com/...-Tax-and-Worldwide-G20-Protest

Banksters OWS

shared by Gary Edwards on 25 Oct 11 - No Cached
  • Gary Edwards on 25 Oct 11
     
    Occupy's busting out on a new path ... So Adbusters is asking people all around the world to march on Oct. 29. "We want to send a clear message that we the people want to slow down this global casino." And Adbusters does have one specific demand, a 1 percent tax on financial-sector transactions (perhaps stocks, bonds, foreign-currency trades and derivatives). Some form of that idea, known as the "Robin Hood" tax, has been around for a while and might actually fly. - Jerry Large/Seattle Times Dominant Social Theme: We want justice for the world and the UN will give it to us. Free-Market Analysis: Kalle Lasn, founder of Adbusters magazine, based in Vancouver, B.C. - the magazine that issued the call for the initial Occupy Wall Street protests - has called on people to protest the upcoming G20 while demanding a one-percent tax on financial transactions. The revenue raised would be enormous and the lingering question is where this incredible revenue stream would be directed. The answer is obvious to those who follow what we call "directed history." The intention is likely to fund the UN as part of a final push to rationalize and perfect the initial stages of true world government. As we have written before, the movement toward world government is happening very quickly now. The ramifications are enormous and people who write off these protests as spontaneous and short-lived are not grasping what is taking place, in our humble opinion. The financial sales tax has been around for a very long time but has found its most recent voice in a column by Jerry Large of the Seattle Times. He recently gained an exclusive interview with Kalle Lasn, who sounds as if he hopes that a large protest on Oct 29th will mark the beginning of a push for such a tax. What's going on is pure one-worldism, an OWS ideology that is gradually revealing itself in dribs and drabs. It is one reason that that the OWS leaders have made no specific demands. They have hoped to create a momentu
Paul Merrell

New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners | nsnbc internati... - 0 views

nsnbc.me/...-ins-hit-depositors-pensioners

banksters G20-summit deposits Cyprus bail-ins

shared by Paul Merrell on 02 Dec 14 - No Cached
  • On the weekend of November 16th, the G20 leaders whisked into Brisbane, posed for their photo ops, approved some proposals, made a show of roundly disapproving of Russian President Vladimir Putin, and whisked out again.
  • It was all so fast, they may not have known what they were endorsing when they rubber-stamped the Financial Stability Board’s “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution,” which completely changes the rules of banking. Russell Napier, writing in ZeroHedge, called it “the day money died.” In any case, it may have been the day deposits died as money. Unlike coins and paper bills, which cannot be written down or given a “haircut,” says Napier, deposits are now “just part of commercial banks’ capital structure.” That means they can be “bailed in” or confiscated to save the megabanks from derivative bets gone wrong.
  • Rather than reining in the massive and risky derivatives casino, the new rules prioritize the payment of banks’ derivatives obligations to each other, ahead of everyone else. That includes not only depositors, public and private, but the pension funds that are the target market for the latest bail-in play, called “bail-inable” bonds. “Bail in” has been sold as avoiding future government bailouts and eliminating too big to fail (TBTF). But it actually institutionalizes TBTF, since the big banks are kept in business by expropriating the funds of their creditors. It is a neat solution for bankers and politicians, who don’t want to have to deal with another messy banking crisis and are happy to see it disposed of by statute. But a bail-in could have worse consequences than a bailout for the public. If your taxes go up, you will probably still be able to pay the bills. If your bank account or pension gets wiped out, you could wind up in the street or sharing food with your pets.
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  • In theory, US deposits under $250,000 are protected by federal deposit insurance; but deposit insurance funds in both the US and Europe are woefully underfunded, particularly when derivative claims are factored in. The problem is graphically illustrated in a chart from a March 2013 ZeroHedge post. OCC Chart (Image, upper left).
  • Paul Merrell on 02 Dec 14
     
    With commercial banks overloaded by investment bank derivative debt, a bank is the very last place one should park their money. See http://tinyurl.com/3oj7vbs and http://tinyurl.com/3ovf6ze FDIC insurance is now of value only to senior debtors, not to deposit account holders.
Paul Merrell

Snowden document shows Canada set up spy posts for NSA - Politics - CBC News - 0 views

www.cbc.ca/...up-spy-posts-for-nsa-1.2456886

surveillance state Canada CSEC NSA Privacy-Act

shared by Paul Merrell on 11 Dec 13 - No Cached
  • A top secret document retrieved by American whistleblower Edward Snowden reveals Canada has set up covert spying posts around the world and conducted espionage against trading partners at the request of the U.S. National Security Agency. The leaked NSA document being reported exclusively by CBC News reveals Canada is involved with the huge American intelligence agency in clandestine surveillance activities in “approximately 20 high-priority countries."
  • Sections of the document with the highest classification make it clear in some instances why American spymasters are particularly keen about enlisting their Canadian counterparts, the Communications Security Establishment Canada. "CSEC shares with the NSA their unique geographic access to areas unavailable to the U.S," the document says. The briefing paper describes a "close co-operative relationship" between the NSA and its Canadian counterpart, the Communications Security Establishment Canada, or CSEC — a relationship "both sides would like to see expanded and strengthened. "The intelligence exchange with CSEC covers worldwide national and transnational targets."
  • The briefing notes make it clear that Canada plays a very robust role in intelligence-gathering around the world in a way that has won respect from its American equivalents.
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  • The intimate Canada-U.S. electronic intelligence relationship dates back more than 60 years. Most recently, another Snowden document reported by CBC News showed the two agencies co-operated to allow the NSA to spy on the G20 summit of international leaders in Toronto in 2010. But what the latest secret document reveals for the first time is just how expansive Canada's international espionage activities have become.
  • The NSA document depicts CSEC as a sophisticated, capable and highly respected intelligence partner involved in all manner of joint spying missions, including setting up listening posts at the request of the Americans. "CSEC offers resources for advanced collection, processing and analysis, and has opened covert sites at the request of NSA," the document states.
  • Aside from compromising the actual intelligence operation, Wark says, an exposed spy mission can imperil Canada's other diplomatic operations — "the political contacts, the trade contacts, the generation of goodwill between the countries and any sense of co-operation." Wark says if a country feels targeted by a Canadian embassy, it can put everyone working there under a cloud of suspicion: “Are they really diplomats or are they spies?” As a result of those risks, Wark says, approval for CSEC to establish a covert spying post at the request of the NSA would have to come from the ministerial level of the Canadian government — or even from the prime minister himself.
  • Canada and the U.S. have long shared security intelligence with sister agencies in the U.K., Australia and New Zealand – the so-called "Five Eyes" partnership. But the latest secret Snowden missive shows CSEC and the NSA becoming physically intertwined. "Co-operative efforts include the exchange of liaison officers and integrees," the document reveals, a reference to CSEC operatives working inside the NSA, and vice-versa. It notes the NSA also supplies much of the computer hardware and software CSEC uses for encryption, decoding and other state-of-the-art essentials of electronic spying needed for "collection, processing and analytic efforts."
  • CSEC employs about 2,000 people, has an annual budget of roughly $450 million and will soon move into an architecturally spectacular new Ottawa headquarters costing Canadian taxpayers almost $1.2 billion. By comparison, the NSA employs an estimated 40,000 people plus thousands of private contractors, and spends over $40 billion a year NSA whistleblower Drake says the problem is that both CSEC and the NSA lack proper oversight, and without it, they have morphed into runaway surveillance. "There is a clear and compelling danger to democracy in Canada by virtue of how far these secret surveillance operations have gone."
  • Paul Merrell on 11 Dec 13
     
    "'Co-operative efforts include the exchange of liaison officers and integrees,'the document reveals, a reference to CSEC operatives working inside the NSA, and vice-versa." And that fact raises potential U.S. Privacy Act issues. Under the Privacy Act, all U.S. agencies are prohibited from sharing information containing personal identifiers of U.S. citizens with any foreign government and requires that agencies make full disclosure to all persons  whose rights are thus violated. The Act also creates a cause of action for redress by the federal courts, with a minimum $1,500 damages plus attorney's fees and litigation expenses. Note that the other NSA documents show that NSA is sharing U.S. citizens' information that includes personal identifiers with Israeli intelligence. The NSA has been by another statute excused from compliance with some portions of the Privacy Act but not those discussed above.
Paul Merrell

NSA Spied on World Bank, IMF, UN, Pope, World Leaders, and American Politicians and Mil... - 0 views

www.zerohedge.com/...and-american-politicians-and-m

surveillance state NSA NSA-targets

shared by Paul Merrell on 02 Nov 13 - No Cached
  • He says the NSA started spying on President Obama when he was a candidate for Senate: 
  • Another very high-level NSA whistleblower – the head of the NSA’s global intelligence gathering operation – says that the NSA targeted CIA chief Petraeus. Of course, the NSA also spied on the leaders of Germany, Brazil and Mexico, and at least 35 world leaders total. The NSA also spies on the European Union, the European Parliament, the G20 summit and other allies.
  • The NSA conducts widespread industrial espionage on our allies. That has nothing to do with terrorism, either.  And the  NSA’s industrial espionage has been going on for many decades.
  • Paul Merrell on 02 Nov 13
     
    Nice collection of links in a list of targets of NSA surveillance. 
Paul Merrell

Russell Napier Declares November 16, 2014 The Day Money Dies | Zero Hedge - 0 views

www.zerohedge.com/...ovember-16-2014-day-money-dies

banksters G20-summit deposits Cyprus bail-ins

shared by Paul Merrell on 02 Dec 14 - No Cached
  • It is with regret and sadness we announce the death of money on November 16th 2014 in Brisbane, Australia
  • On Sunday in Brisbane the G20 will announce that bank deposits are just part of commercial banks’ capital structure, and also that they are far from the most senior portion of that structure. With deposits then subjected to a decline in nominal value following a bank failure, it is self-evident that a bank deposit is no longer money in the way a banknote is. If a banknote cannot be subjected to a decline in nominal value, we need to ask whether banknotes can act as a superior store of value than bank deposits? If that is the case, will some investors prefer banknotes to bank deposits as a form of savings? Such a change in preference is known as a "bank run."
  • Each country will introduce its own legislation to effect the ‘ bail-in’ agreed by the G20 this coming weekend. The consultation document from the UK’s Treasury lists the following bank creditors who will rank ABOVE depositors in a ‘failing’ financial institution:
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  • The above list makes it clear that deposits larger than GBP85,000 will rank ahead of the bond holders of banks, but they will rank above little else. Importantly, both borrowings of the banks of less than 7 days maturity from other financial institutions and sums owed by banks in their role as counterparties to OTC derivatives will rank above large deposits. Large deposits at banks are no longer money, as this legislation will formally push them down through the capital structure to a position of material capital risk in any "failing" institution. In our last financial crisis, deposits were de facto guaranteed by the state, but from November 16th holders of large-scale deposits will be, both de facto and de jure, just another creditor squabbling over their share of the assets of a failed bank.
  • If we have another Lehman Brothers collapse, large-scale depositors could find themselves in the courts for years before final adjudication on the scale of their losses could be established. During this period would this illiquid asset, formerly called a deposit and now subject to an unknown capital loss, be considered money? Clearly it would not, as its illiquidity and likely decline in nominal value would make it unacceptable as a medium of exchange.
  • From November 16th 2014 the large-scale deposit at a commercial bank is, at best, a lesser form of money, and to many it will cease to be money at all as its nominal value can fall and it could cease to be accepted as a medium of exchange.
  • As the world’s smartest lawyer Charlie Munger is fond of saying, "Show me the incentive and I will show you the outcome." Some simple mathematics reveals that the November 16th announcement will create a very major incentive for investors to change deposits into banknotes.
Paul Merrell

Turkey could cut off Islamic State's supply lines. So why doesn't it? | David Graeber |... - 0 views

www.theguardian.com/...tate-supply-lines-erdogan-isis

war & peace Turkey ISIL PKK YPG

shared by Paul Merrell on 20 Nov 15 - No Cached
  • n the wake of the murderous attacks in Paris, we can expect western heads of state to do what they always do in such circumstances: declare total and unremitting war on those who brought it about. They don’t actually mean it. They’ve had the means to uproot and destroy Islamic State within their hands for over a year now. They’ve simply refused to make use of it. In fact, as the world watched leaders making statements of implacable resolve at the G20 summit in Antalaya, these same leaders are hobnobbing with Turkey’s president Recep Tayyip Erdoğan, a man whose tacit political, economic, and even military support contributed to Isis’s ability to perpetrate the atrocities in Paris, not to mention an endless stream of atrocities inside the Middle East.
  • How could Isis be eliminated? In the region, everyone knows. All it would really take would be to unleash the largely Kurdish forces of the YPG (Democratic Union party) in Syria, and PKK (Kurdistan Workers’ party) guerillas in Iraq and Turkey. These are, currently, the main forces actually fighting Isis on the ground. They have proved extraordinarily militarily effective and oppose every aspect of Isis’s reactionary ideology. But instead, YPG-controlled territory in Syria finds itself placed under a total embargo by Turkey, and PKK forces are under continual bombardment by the Turkish air force. Not only has Erdoğan done almost everything he can to cripple the forces actually fighting Isis; there is considerable evidence that his government has been at least tacitly aiding Isis itself. It might seem outrageous to suggest that a Nato member like Turkey would in any way support an organisation that murders western civilians in cold blood. That would be like a Nato member supporting al-Qaida. But in fact there is reason to believe that Erdoğan’s government does support the Syrian branch of al-Qaida (Jabhat al-Nusra) too, along with any number of other rebel groups that share its conservative Islamist ideology. The Institute for the Study of Human Rights at Columbia University has compiled a long list of evidence of Turkish support for Isis in Syria.
  • And then there are Erdoğan’s actual, stated positions. Back in August, the YPG, fresh from their victories in Kobani and Gire Spi, were poised to seize Jarablus, the last Isis-held town on the Turkish border that the terror organisation had been using to resupply its capital in Raqqa with weapons, materials, and recruits – Isis supply lines pass directly through Turkey. Commentators predicted that with Jarablus gone, Raqqa would soon follow. Erdoğan reacted by declaring Jarablus a “red line”: if the Kurds attacked, his forces would intervene militarily – against the YPG. So Jarablus remains in terrorist hands to this day, under de facto Turkish military protection.
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  • How has Erdoğan got away with this? Mainly by claiming those fighting Isis are “terrorists” themselves. It is true that the PKK did fight a sometimes ugly guerilla war with Turkey in the 1990s, which resulted in it being placed on the international terror list. For the last 10 years, however, it has completely shifted strategy, renouncing separatism and adopting a strict policy of never harming civilians. The PKK was responsible for rescuing thousands of Yazidi civilians threatened with genocide by Isis in 2014, and its sister organisation, the YPG, of protecting Christian communities in Syria as well. Their strategy focuses on pursuing peace talks with the government, while encouraging local democratic autonomy in Kurdish areas under the aegis of the HDP, originally a nationalist political party, which has reinvented itself as a voice of a pan-Turkish democratic left.
  • They have proved extraordinarily militarily effective and with their embrace of grassroots democracy and women’s rights, oppose every aspect of Isis’ reactionary ideology. In June, HDP success at the polls denied Erdoğan his parliamentary majority. Erdoğan’s response was ingenious. He called for new elections, declared he was “going to war” with Isis, made one token symbolic attack on them and then proceeded to unleash the full force of his military against PKK forces in Turkey and Iraq, while denouncing the HDP as “terrorist supporters” for their association with them. There followed a series of increasingly bloody terrorist bombings inside Turkey – in the cities of Diyarbakir, Suruc, and, finally, Ankara – attacks attributed to Isis but which, for some mysterious reason, only ever seemed to target civilian activists associated with the HDP. Victims have repeatedly reported police preventing ambulances evacuating the wounded, or even opening fire on survivors with tear gas.
  • As a result, the HDP gave up even holding political rallies in the weeks leading up to new elections in November for fear of mass murder, and enough HDP voters failed to show up at the polls that Erdoğan’s party secured a majority in parliament. The exact relationship between Erdoğan’s government and Isis may be subject to debate; but of some things we can be relatively certain. Had Turkey placed the same kind of absolute blockade on Isis territories as they did on Kurdish-held parts of Syria, let alone shown the same sort of “benign neglect” towards the PKK and YPG that they have been offering to Isis, that blood-stained “caliphate” would long since have collapsed – and arguably, the Paris attacks may never have happened. And if Turkey were to do the same today, Isis would probably collapse in a matter of months. Yet, has a single western leader called on Erdoğan to do this? The next time you hear one of those politicians declaring the need to crack down on civil liberties or immigrant rights because of the need for absolute “war” against terrorism bear all this in mind. Their resolve is exactly as “absolute” as it is politically convenient. Turkey, after all, is a “strategic ally”. So after their declaration, they are likely to head off to share a friendly cup of tea with the very man who makes it possible for Isis to continue to exist.
Gary Edwards

Take A Break From The Snowden Drama For A Reminder Of What He's Revealed So Far - Forbes - 0 views

www.forbes.com/...er-of-what-hes-revealed-so-far

NSA-Patriot-Act-NDAA NSA-Whistleblower Edward-Snowden

shared by Gary Edwards on 26 Jun 13 - No Cached
  • Here’s a recap of Snowden’s leaked documents published so far, in my own highly subjective order of importance.
  • The publication of Snowden’s leaks began with a top secret order from the Foreign Intelligence Surveillance Court (FISC) sent to Verizon on behalf of the NSA, demanding the cell phone records of all of Verizon Business Network Services’ American customers for the three month period ending in July. The order, obtained by the Guardian, sought only the metadata of those millions of users’ calls–who called whom when and from what locations–but specifically requested Americans’ records, disregarding foreigners despite the NSA’s legal restrictions that it may only surveil non-U.S. persons. Senators Saxby Chambliss and Diane Feinstein defended the program and said it was in fact a three-month renewal of surveillance practices that had gone for seven years.
  • A leaked executive order from President Obama shows the administration asked intelligence agencies to draw up a list of potential offensive cyberattack targets around the world. The order, which suggests targeting “systems, processes and infrastructure” states that such offensive hacking operations “can offer unique and unconventional capabilities to advance U.S. national objectives around the world with little or no warning to the adversary or target and with potential effects ranging from subtle to severely damaging.” The order followed repeated accusations by the U.S. government that China has engaged in state-sponsored hacking operations, and was timed just a day before President Obama’s summit with Chinese President Xi Jinping.
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  • Another leaked slide deck revealed a software tool called Boundless Informant, which the NSA appears to use for tracking the origin of data it collects. The leaked materials included a map produced by the program showing the frequency of data collection in countries around the world. While Iran, Pakistan and Jordan appeared to be the most surveilled countries according to the map, it also pointed to significant data collection from the United States.
  • In a congressional hearing, NSA director Keith Alexander argued that the kind of surveillance of Americans’ data revealed in that Verizon order was necessary to for archiving purposes, but was rarely accessed and only with strict oversight from Foreign Intelligence Surveillance Court judges. But another secret document published by the Guardian revealed the NSA’s own rules for when it makes broad exceptions to its foreign vs. U.S. persons distinction, accessing Americans’ data and holding onto it indefinitely. Those exceptions include anytime Americans’ data is judged to be “significant foreign intelligence” information or information about a crime that has been or is about to be committed, any data “involved in the unauthorized disclosure of national security information,” or necessary to “assess a communications security vulnerability.” Any encrypted data that the NSA wants to crack can also be held indefinitely, regardless of whether its American or foreign origin.
  • Documents leaked to the Guardian revealed a five-year-old British intelligence scheme to tap transatlantic fiberoptic cables to gather data. A program known as Tempora, created by the U.K.’s NSA equivalent Government Communications Headquarters (GCHQ) has for the last 18 months been able to store huge amounts of that raw data for up to 30 days. Much of the data is shared with the NSA, which had assigned 250 analysts to sift through it as of May of last year.
  • Another GCHQ project revealed to the Guardian through leaked documents intercepted the communications of delegates to the G20 summit of world leaders in London in 2009. The scheme included monitoring the attendees’ phone calls and emails by accessing their Blackberrys, and even setting up fake Internet cafes that used keylogging software to surveil them.
  • Snowden showed the Hong Kong newspaper the South China Morning Post documents that it said outlined extensive hacking of Chinese and Hong Kong targets by the NSA since 2009, with 61,000 targets globally and “hundreds” in China. Other SCMP stories based on Snowden’s revelations stated that the NSA had gained access to the Chinese fiberoptic network operator Pacnet as well as Chinese mobile phone carriers, and had gathered large quantities of Chinese SMS messages.
  • The Guardian’s Glenn Greenwald has said that Snowden provided him “thousands” of documents, of which “dozens” are newsworthy. And Snowden himself has said he’d like to expose his trove of leaks to the global media so that each country’s reporters can decide whether “U.S. network operations against their people should be published.” So regardless of where Snowden ends up, expect more of his revelations to follow.
  • Gary Edwards on 26 Jun 13
     
    Nice tight summary
Paul Merrell

World leaders at G20 summit uncertain about who launched Syria chemical weapons attack ... - 0 views

www.washingtonpost.com/...3-961c-f22d3aaf19ab_story.html

war & peace Syria Obama Hollande WMD responsibility

shared by Paul Merrell on 06 Sep 13 - No Cached
  • World leaders are venting over Syria’s civil war but look no closer to agreeing on international military intervention to stop it. A French official says leaders at a summit of the Group of 20 leading world economies in Russia agreed with President Barack Obama and French President Francois Hollande that chemical weapons had been used in an Aug. 21 attack in Syria, and condemned it.
  • But many leaders remain in doubt about whether Syrian President Bashar Assad’s regime was behind the attack, or Syria’s rebels. The U.S. and France are preparing possible military action against Assad, and are trying at the G-20 summit to get backing from other world powers.
  • The French official, speaking Friday in St. Petersburg, was not authorized to be publicly named according to presidential policy.
Gary Edwards

The Four Scenarios: Debt Deflation, Hyperinflation, Quadrillion Play and Muddle Through... - 0 views

www.siliconvalleywatcher.com/...saturday_post_a.php

acta foremski cds credit-default-swaps finacial-crisis politics economy

shared by Gary Edwards on 24 Nov 08 - Cached
  • Gary Edwards on 24 Nov 08
     
    From the vantage point of November 15th, 2008, whilst the Washington, DC, summit is underway amongst the leaders of the G20 nations, it would appear that there are four distinct global economic scenarios that may unfold towards the tail end of this year, 2009 and 2010:
Paul Merrell

Washington Misses Bigger Picture of New Chinese Bank « LobeLog - 0 views

www.lobelog.com/er-picture-of-new-chinese-bank

shared by Paul Merrell on 22 Mar 15 - No Cached
  • Bibi Netanyahu’s election, persistent violence through much of the Middle East and North Africa, and intensified efforts to forge a nuclear deal between the P5+1 and Iran topped the news here in Washington this week. But a much bigger story in terms of the future order of global politics was taking place in Europe and Beijing. The story was simply this: virtually all of the closest European allies of the United States, beginning with Britain, defied pressure from Washington by deciding to apply for founding membership in the Asian Infrastructure Investment Bank (AIIB). This Chinese initiative could quickly rival the World Bank and the Asia Development Bank as a major source of funding for big development projects across Eurasia. The new bank, which offers a serious multilateral alternative to the Western-dominated international financial institutions (IFIs) established in the post-World War II order, is expected to attract about three dozen initial members, including all of China’s Asian neighbors (with the possible exception of Japan). Australia, Russia, Saudi Arabia, and other Gulf states are also likely to join by the March 31 deadline set by Beijing for prospective co-founders to apply. Its $50 billion in initial capital is expected to double with the addition of new members, and that amount could quickly grow given China’s $3 trillion in foreign-exchange reserves. More details about the bank can be found in a helpful Q&A here at the Council on Foreign Relations website.
  • Along with the so-called BRICS bank—whose membership so far is limited to Brazil, Russia, India, China and South Africa—the AIIB poses a real “challenge to the existing global economic order,” which, of course, Western nations have dominated since the establishment of the International Monetary Fund (IMF) and the World Bank in the final days of World War II. As one unnamed European official told The New York Times, “We have moved from the world of 1945.” That Washington’s closest Western allies are now racing to join the AIIB over U.S. objections offers yet more evidence that the “unipolar moment” celebrated by neoconservatives and aggressive nationalists 25 years ago and then reaffirmed by the same forces after the 2003 Iraq invasion is well and truly. And yet, these same neoconservatives continue to insist that—but for Obama’s weakness and defeatism—the United States remains so powerful that it really doesn’t have to take account of anyone’s interests outside its borders except, maybe, Israel’s. (That Washington’s closest Western allies are now racing to join the new bank over U.S. objections could also presage a greater willingness to abandon the international sanctions regime against Iran if Washington is seen as responsible for the collapse of the P5+1 nuclear negotiations with Tehran. Granted, Iran’s economy—and its potential as a source of investment capital—is itsy-bitsy compared to China.)
  • Indeed, commentators are depicting US allies’ decision to join the AIIB (see here, here, and here as examples) as a debacle for U.S. diplomacy. The Wall Street Journal editorial board has predictably blamed Obama for defeat, calling it a “case study in declining American influence” (although it also defended Washington’s decision against joining and accused Britain of “appeasing China for commercial purposes.”) What the Journal predictably didn’t mention was a key reason why the administration did not seek membership in the new bank: there was virtually no chance that a Republican-dominated Congress would approve it. Indeed, one reason Beijing launched its initiative and so many of our allies in both Asia and Europe have decided to join is their frustration with Republicans in Congress who have refused to ratify a major reform package designed to give developing countries, including China, a little more voting power on the Western-dominated governing boards of the IMF and the World Bank. The Group of 20 (G20) biggest economic powers actually proposed this reform in 2010, and it doesn’t even reduce Washington’s voting power, which gives it an effective veto over major policy changes in both institutions. As a result of this intransigence, the United States is the only G-20 member that has failed to ratify the reforms, effectively blocking their implementation.
  • Paul Merrell on 22 Mar 15
     
    U.S. global hegemony is rapidly disintegrating as former puppet states in Europe jump from the dwindling dollar economy to the rising remnimbi/ruble BRICS economies. And many of the "stans" south of Russia threatened by U.S. mercenaries provided by the Gulf Coast States are jumping in that direction too, along with Turkey, a NATO member. The Stans involved are oil and natural gas rich; combined with Russian oil and gas, they have enough oil and gas reserves to rival the Gulf Coast States.  The most interesting part to me is the debate now under way in the EU over dropping out of NATO and creating a replacement European mutual defense force that excludes the U.S. I'm beginning to hit some chatter about inviting Russia into that hypoethesized treaty. That makes sense for the EU because it would give Europe the benefit of Russian nuclear deterrence, both in land and submarine-based ICBMs. I'm not convinced that Russia would sign on. Russia is already running joint military exercises with China, which is playing the role of Russia's economic savior at this point. So China might have the final say on that scenario. A pan-Eurasian mutual defense treaty? What would be left of the U.S. Empire without NATO, particularly given that the dollar would surely collapse before such a treaty were signed? The War Party in Congress has only one tool to work with, war, and when all you have is a hammer, all problems look like nails. Current U.S. military power is built around the capacity to wage two major wars concurrently, but is very heavily dependent on NATO to do so. I'm not sure at all that the War Party has what it takes to cope with a peaceful group boycott by other NATO members. 
Paul Merrell

Putin's Revenge? The Fight for the Border - 0 views

www.counterpunch.org/...venge-the-fight-for-the-border

war & peace Syria Turkey U.S.-foreign-policy Russia border-closure

shared by Paul Merrell on 02 Dec 15 - No Cached
  • “We have received additional information confirming that the oil controlled by Islamic State militants (ISIS) enters Turkish territory on an industrial scale. We have every reason to believe that the decision to down our plane was guided by a desire to ensure the security of this oil’s delivery routes to ports where they are shipped in tankers.” –Russian President Vladimir Putin, Paris, 11-30-15
  • In candid remarks to the Russian media, Putin implicated the US in the downing of the Su-24 stating that the US military was briefed on the warplane’s flight path and then immediately passed along that information to Turkey. Here’s what he said: “We told our US partners in advance where, when at what altitudes our pilots were going to operate. The US-led coalition, which includes Turkey, was aware of the time and place where our planes would operate. And this is exactly where and when we were attacked. Why did we share this information with the Americans? Either they don’t control their allies, or they just pass this information left and right without realizing what the consequences of such actions might be. We will have to have a serious talk with our US partners.” Putin’s damning remarks have not appeared in any of the western media. The censorship of this information is similar to the blackout of comments Putin made just two weeks earlier at the G-20 summit where he announced that “40 countries” are financing ISIS including members of the G-20.
  • Here’s an except of Putin’s bombshell announcement: “I provided examples based on our data on the financing of different Islamic State units by private individuals. This money, as we have established, comes from 40 countries and, there are some of the G20 members among them,” Putin told the journalists. “I’ve shown our colleagues photos taken from space and from aircraft which clearly demonstrate the scale of the illegal trade in oil and petroleum products. The motorcade of refueling vehicles stretched for dozens of kilometers, so that from a height of 4,000 to 5,000 meters they stretch beyond the horizon,” Putin added, comparing the convoy to gas and oil pipeline systems.” (Putin: ISIS financed from 40 countries, including G20 members, RT)
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  • It’s clear that Russia’s bombardment of jihadi groups operating near the Turkish-Syrian border has Turkish President Recep Tayyip Erdogan worried. Erdogan has long hoped that the area would be turned into a Safe Zone where Sunni militants– committed to removing Assad from power– could receive weapons and other support from their sponsors while coming and going as they pleased. The Russian-led coalition’s attempt to retake the area and seal the border to stop the flow of terrorists from Turkey, is probably what precipitated the attack on the Russian warplane. It was a desperate attempt to wave-off the Russian offensive and reverse the course of the war which has turned decisively in Assad’s favor. As for the militant groups that are operating in this area, analyst Pepe Escobar sums it up like this in a recent post at Sputnik News: “The Su-24s were actually after Chechens and Uzbeks — plus a few Uyghurs — smuggled in with fake Turkish passports (Chinese intel is also on it), all of these operating in tandem with a nasty bunch of Turkish Islamo-fascists. Most of these goons transit back and forth between the CIA-weaponized Free Syrian Army (FSA) and Jabhat al-Nusra. These were the goons who machine-gunned the Russian pilots as they parachuted down after the hit on the Su-24…. Turkey, for all practical purposes, has been a handy, sprawling Salafi-jihadi Infrastructure and Logistics Center; it offers everything from porous borders enabling countless jihadi return tickets from Syria to Europe, facilitated by corrupt police, to a convenient crossroads for all kinds of smuggling and a hefty money laundering ops.” (Sultan Erdogan’s War on…Russia, Pepe Escobar, Sputnik)
  • Escobar sums up Ankara’s role in Syria as succinctly as anyone. Erdogan has been ISIS best friend, of that, there is little doubt. The problem that Turkey faces now is that the Russian-led coalition is rapidly destroying the infrastructure that provides funding for ISIS, (oil refineries, fields and transport) while gradually retaking territory that was formally-controlled by the many anti-regime or al Qaida-linked groups in the north, west and central parts of the country. In the last few days alone, Russia and Co. have concluded the encirclement of Syria’s biggest city, Aleppo, vaporized a convoy of over 500 oil trucks in the vicinity of Raqqa, and intensified their bombing in the Turkmen Mountains, the Kurdish Mountains, and the Prophet Jonah Mountains. The coalition has moved as far north as Azaz along the Turkish border and recaptured the strategic Aleppo-Raqqa highway which completely cuts off ISIS supply-route from the east in Raqqa. All of the recent progress comes in the wake of the retaking of the strategic Kuweris Airbase which was the tipping point in the 4 and a half year-long conflict. Now the Russian coalition has focused on closing the border, a move that will sever vital supply-lines to pro-Turkish militias operating in Syria and force the terrorists to either flee or surrender. Russian Foreign Minister Sergei Lavrov emphasized this point last week saying, “We are convinced that by blocking the border we will in many respects solve the tasks to eradicate terrorism on Syrian soil.”
  • Keep in mind, that Erdogan is not the only one with designs on the so-called “Afrin-Jarabulus corridor” east of the Euphrates. Powerful politicians in the US, including John McCain, Lindsay Graham, Jeb Bush, Hillary Clinton and others, have all alluded to this area as the most suitable location for a no-fly zone. And, despite the fact that Obama refuses to send US ground forces to fight in Syria, he has continued to fuel the conflict in other less conspicuous ways. Just last Wednesday, under the cover of the Thanksgiving holiday when the media was preoccupied with other matters, Obama signed the National Defense Authorization Act of 2016 which provides another $800 million in aid to armed extremists in Syria and Ukraine. The NDAA, which effectively prevents the closing down of US concentration camp at Guantanamo Bay (Gitmo), reflects Obama’s determination to continue Washington’s vicious policy in Syria which has resulted in the deaths of more than 250,000 and the displacement of 11 million more. This helps to explain why the Russian offensive has set alarms off in Washington; it’s because the US plan to establish a permanent staging ground for terrorists in N Syria is quickly going up in smoke.
  • Seen in this light, Obama’s recent request for Turkey to deploy “30,000 (troops) to seal the border on the Turkish side”, (See: Wall Street Journal) should be viewed with extreme skepticism. Clearly, Washington has not relented in its “Assad must go” policy at all, in fact, Obama reiterated that mantra less than a week ago. That means the Obama crew may be hoping that Turkish ground forces can succeed where his jihadi proxies failed, that is, that the 30,000 troops will be used to clear and hold a 60×20-mile stretch of Syrian territory that can be used as the proposed safe zone. All Turkey would need is a pretext to invade and a little bit of air cover from the USAF. It wouldn’t be the first time a false flag was used to start a war. The bottom line is this: Putin had better move quickly before Washington and Ankara get their ducks in a row and begin to mobilize. The time to seize the border is now.
Paul Merrell

It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors - 0 views

www.informationclearinghouse.info/article34442.htm

banksters confiscation financial-collapse FDIC

shared by Paul Merrell on 29 Mar 13 - No Cached
  • Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.  
  • Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.”  The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.
  • The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.”  It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state: An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.
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  • No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks.
  • If our IOUs are converted to bank stock, they will no longer be subject to insurance protection but will be “at risk” and vulnerable to being wiped out, just as the Lehman Brothers shareholders were in 2008.  That this dire scenario could actually materialize was underscored by Yves Smith in a March 19th post titled When You Weren’t Looking, Democrat Bank Stooges Launch Bills to Permit Bailouts, Deregulate Derivatives.  She writes: In the US, depositors have actually been put in a worse position than Cyprus deposit-holders, at least if they are at the big banks that play in the derivatives casino. The regulators have turned a blind eye as banks use their depositaries to fund derivatives exposures. And as bad as that is, the depositors, unlike their Cypriot confreres, aren’t even senior creditors. Remember Lehman? When the investment bank failed, unsecured creditors (and remember, depositors are unsecured creditors) got eight cents on the dollar. One big reason was that derivatives counterparties require collateral for any exposures, meaning they are secured creditors. The 2005 bankruptcy reforms made derivatives counterparties senior to unsecured lenders.
  • One might wonder why the posting of collateral by a derivative counterparty, at some percentage of full exposure, makes the creditor “secured,” while the depositor who puts up 100 cents on the dollar is “unsecured.” But moving on – Smith writes: Lehman had only two itty bitty banking subsidiaries, and to my knowledge, was not gathering retail deposits. But as readers may recall, Bank of America moved most of its derivatives from its Merrill Lynch operation [to] its depositary in late 2011. Its “depositary” is the arm of the bank that takes deposits; and at B of A, that means lots and lots of deposits. The deposits are now subject to being wiped out by a major derivatives loss. How bad could that be? Smith quotes Bloomberg:
  • . . . Bank of America’s holding company . . . held almost $75 trillion of derivatives at the end of June . . . . That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show. $75 trillion and $79 trillion in derivatives! These two mega-banks alone hold more in notional derivatives each than the entire global GDP (at $70 trillion).
  • Are you safe, then, if your money is in gold and silver? Apparently not – if it’s stored in a safety deposit box in the bank.  Homeland Security has reportedly told banks that it has authority to seize the contents of safety deposit boxes without a warrant when it’s a matter of “national security,” which a major bank crisis no doubt will be.
  • Another alternative was considered but rejected by President Obama in 2009: nationalize mega-banks that fail. In a February 2009 article titled “Are Uninsured Bank Depositors in Danger?“, Felix Salmon discussed a newsletter by Asia-based investment strategist Christopher Wood, in which Wood wrote: It is . . . amazing that Obama does not understand the political appeal of the nationalization option. . . . [D]espite this latest setback nationalization of the banks is coming sooner or later because the realities of the situation will demand it. The result will be shareholders wiped out and bondholders forced to take debt-for-equity swaps, if not hopefully depositors.
  • President Obama acknowledged that bank nationalization had worked in Sweden, and that the course pursued by the US Fed had not worked in Japan, which wound up instead in a “lost decade.”  But Obama opted for the Japanese approach because, according to Ed Harrison, “Americans will not tolerate nationalization.” But that was four years ago. When Americans realize that the alternative is to have their ready cash transformed into “bank stock” of questionable marketability, moving failed mega-banks into the public sector may start to have more appeal.
Paul Merrell

It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors | WEB OF D... - 0 views

webofdebt.wordpress.com/...anned-for-us-and-uk-depositors

financial-collapse Cyprus banksters U.S. confiscation

shared by Paul Merrell on 12 Apr 13 - No Cached
  • Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.  
  • Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.”  The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.
  • No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks.  The directive is called a “resolution process,” defined elsewhere as a plan that “would be triggered in the event of the failure of an insurer . . . .”
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  • The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.”  It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state: An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.
  • If our IOUs are converted to bank stock, they will no longer be subject to insurance protection but will be “at risk” and vulnerable to being wiped out, just as the Lehman Brothers shareholders were in 2008.  That this dire scenario could actually materialize was underscored by Yves Smith in a March 19th post titled When You Weren’t Looking, Democrat Bank Stooges Launch Bills to Permit Bailouts, Deregulate Derivatives.  She writes: In the US, depositors have actually been put in a worse position than Cyprus deposit-holders, at least if they are at the big banks that play in the derivatives casino. The regulators have turned a blind eye as banks use their depositaries to fund derivatives exposures. And as bad as that is, the depositors, unlike their Cypriot confreres, aren’t even senior creditors. Remember Lehman? When the investment bank failed, unsecured creditors (and remember, depositors are unsecured creditors) got eight cents on the dollar. One big reason was that derivatives counterparties require collateral for any exposures, meaning they are secured creditors. The 2005 bankruptcy reforms made derivatives counterparties senior to unsecured lenders.
  • Smith writes: Lehman had only two itty bitty banking subsidiaries, and to my knowledge, was not gathering retail deposits. But as readers may recall, Bank of America moved most of its derivatives from its Merrill Lynch operation [to] its depositary in late 2011. Its “depositary” is the arm of the bank that takes deposits; and at B of A, that means lots and lots of deposits. The deposits are now subject to being wiped out by a major derivatives loss. How bad could that be? Smith quotes Bloomberg: . . . Bank of America’s holding company . . . held almost $75 trillion of derivatives at the end of June . . . . That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show.
  • $75 trillion and $79 trillion in derivatives! These two mega-banks alone hold more in notional derivatives each than the entire global GDP (at $70 trillion).
  • Smith goes on: . . . Remember the effect of the 2005 bankruptcy law revisions: derivatives counterparties are first in line, they get to grab assets first and leave everyone else to scramble for crumbs. . . . Lehman failed over a weekend after JP Morgan grabbed collateral. But it’s even worse than that. During the savings & loan crisis, the FDIC did not have enough in deposit insurance receipts to pay for the Resolution Trust Corporation wind-down vehicle. It had to get more funding from Congress. This move paves the way for another TARP-style shakedown of taxpayers, this time to save depositors. Perhaps, but Congress has already been burned and is liable to balk a second time. Section 716 of the Dodd-Frank Act specifically prohibits public support for speculative derivatives activities.
  • An FDIC confiscation of deposits to recapitalize the banks is far different from a simple tax on taxpayers to pay government expenses. The government’s debt is at least arguably the people’s debt, since the government is there to provide services for the people. But when the banks get into trouble with their derivative schemes, they are not serving depositors, who are not getting a cut of the profits. Taking depositor funds is simply theft. What should be done is to raise FDIC insurance premiums and make the banks pay to keep their depositors whole, but premiums are already high; and the FDIC, like other government regulatory agencies, is subject to regulatory capture.  Deposit insurance has failed, and so has the private banking system that has depended on it for the trust that makes banking work.
  • The Cyprus haircut on depositors was called a “wealth tax” and was written off by commentators as “deserved,” because much of the money in Cypriot accounts belongs to foreign oligarchs, tax dodgers and money launderers. But if that template is applied in the US, it will be a tax on the poor and middle class. Wealthy Americans don’t keep most of their money in bank accounts.  They keep it in the stock market, in real estate, in over-the-counter derivatives, in gold and silver, and so forth. Are you safe, then, if your money is in gold and silver? Apparently not – if it’s stored in a safety deposit box in the bank.  Homeland Security has reportedly told banks that it has authority to seize the contents of safety deposit boxes without a warrant when it’s a matter of “national security,” which a major bank crisis no doubt will be.
  • Paul Merrell on 12 Apr 13
     
    Time to get your money out of the bank and into gold or silver, kept somewhere other than in a bank safety deposit box. 
Paul Merrell

OpEdNews - Article: Our Man In Moscow - 0 views

www.opednews.com/...y-Pepe-Escobar-130802-867.html

security state NSA Snowden asylum extradition

shared by Paul Merrell on 06 Aug 13 - No Cached
  • Barack Obama virtually screamed his lungs out telling Russian President Vladimir Putin he had to hand him Snowden "under international law." Putin repeatedly said this was not going to happen.  Obama even phoned Putin. Nothing. Washington even forced European poodles to down Bolivian President Evo Morales' plane. Worse. Moscow kept following the letter of Russian law and eventually granted temporary asylum to Snowden.  The Edward Snowden saga has turned the Pentagon's Full Spectrum Dominance doctrine on its Hydra-head. Not only because of the humbling of the whole US security state apparatus, but also for exploding the myth of Full Spectrum Dominance by POTUS.  Obama revealed himself once again as a mediocre politician and an incompetent negotiator. Putin devoured him as a succulent serving of eggs benedict. Glenn Greenwald will be inflicting death by a thousand leaks -- because he is in charge of Snowden's digital treasure chest. And Snowden took a taxi and left the airport -- on his own terms.  Layers and layers of nuances have been captured in this fascinating discussion at Yves Smith's blog -- something impossible to find across Western corporate media. For POTUS, all that's left is to probably boycott a bilateral meeting with Putin next month, on the sidelines of the G20 summit in St Petersburg. Pathetic does not even begin to explain it. 
  • There's got to be a serious glitch with the collective IQ of these people. The Obama administration as well as the Orwellian/Panopticon complex are in shock because they simply cannot stop death by a thousand leaks. The Roving Eye is among those who suspect the NSA has no clue about what Snowden, as a systems administrator, was able to download (especially because someone with his skills can easily delete traces of access). Even the top NSA robot -- General Keith Alexander -- admitted on the record the "no such agency" does not know how Snowden pulled it off. He could have left a bug, or infected the system with a virus. The fun may have not even started. 
  • This Big Brother obsession with watching, tracking, monitoring, controlling, decoding virtually everything we do digitally is leading to monumental stupidities like Google searches attracting armed US government's agents to one's house, as is pricelessly detailed here. And still Paranoia Paradise has not isolated Washington from a major ass-kicking in Afghanistan and Iraq, or has foreseen the 2008 financial crisis; but then again it probably did, and the elites who arbitraged all that massive inside information royally profited from it.  For the moment, what we have is an Orwellian/Panopticon complex that will persist with its unchecked powers; an aphasic populace; a quiet, invisible man in a Moscow multitude; and a POTUS consumed with boundless rage. Watch out. He may be tempted to wag the (war) dog. 
  • Paul Merrell on 06 Aug 13
     
    Pepe Escobar's take on the Obama Administration and Edward Snowden's leaked documents, and on the forthcoming Balkanization of the Internet. Will Obama be remembered most for destroying the Global Internet? 
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