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Paul Merrell

Goldman Non-Prosecution: AG Eric Holder Has No Balls | Matt Taibbi | Rolling Stone - 0 views

  • I’ve been on deadline in the past week or so, so I haven't had a chance to weigh in on Eric Holder’s predictable decision to not pursue criminal charges against Goldman, Sachs for any of the activities in the report prepared by Senators Carl Levin and Tom Coburn two years ago. Last year I spent a lot of time and energy jabbering and gesticulating in public about what seemed to me the most obviously prosecutable offenses detailed in the report – the seemingly blatant perjury before congress of Lloyd Blankfein and other Goldman executives, and the almost comically long list of frauds committed by the company in its desperate effort to unload its crappy “cats and dogs” mortgage-backed inventory.
  • In the notorious Hudson transaction, for instance, Goldman claimed, in writing, that it was fully "aligned" with the interests of its client, Morgan Stanley, because it owned a $6 million slice of the deal. What Goldman left out is that it had a $2 billion short position against the same deal. If that isn’t fraud, Mr. Holder, just what exactly is fraud?
Paul Merrell

The U.S. Government And The Sinaloa Cartel - Business Insider - 0 views

  • An investigation by El Universal found that between the years 2000 and 2012, the U.S. government had an arrangement with Mexico's Sinaloa drug cartel that allowed the organization to smuggle billions of dollars of drugs while Sinaloa provided information on rival cartels. Sinaloa, led by Joaquin "El Chapo" Guzman, supplies 80% of the drugs entering the Chicago area and has a presence in cities across the U.S.
  • There have long been allegations that Guzman, considered to be "the world’s most powerful drug trafficker," coordinates with American authorities. But the El Universal investigation is the first to publish court documents that include corroborating testimony from a DEA agent and a Justice Department official. The written statements were made to the U.S. District Court in Chicago in relation to the arrest of Jesus Vicente Zambada-Niebla, the son of Sinaloa leader Ismael "El Mayo" Zambada and allegedly the Sinaloa cartel’s "logistics coordinator."
  • El Universal, citing court documents, reports that DEA agents met with high-level Sinaloa officials more than 50 times since 2000.
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  • "The DEA agents met with members of the cartel in Mexico to obtain information about their rivals and simultaneously built a network of informants who sign drug cooperation agreements, subject to results, to enable them to obtain future benefits, including cancellation of charges in the U.S.," reports El Universal, which also interviewed more than one hundred active and retired police officers as well as prisoners and experts. Zambada-Niebla's lawyer claimed to the court that in the late 1990s, Castro struck a deal with U.S. agents in which Sinaloa would provide information about rival drug trafficking organizations while the U.S. would dismiss its case against the Sinaloa lawyer and refrain from interfering with Sinaloa drug trafficking activities or actively prosecuting Sinaloa leadership. "The agents stated that this arrangement had been approved by high-ranking officials and federal prosecutors," Zambada-Niebla lawyer wrote.
  • After being extradited to Chicago in February 2010, Zambada-Niebla argued that he was also "immune from arrest or prosecution" because he actively provided information to U.S. federal agents. Zambada-Niebla also alleged that Operation Fast and Furious was part of an agreement to finance and arm the cartel in exchange for information used to take down its rivals. (If true, that re-raises the issue regarding what Attorney General Eric Holder knew about the gun-running arrangements.)
  • El Universal reported that the coordination between the U.S. and Sinaloa, as well as other cartels, peaked between 2006 and 2012, which is when drug traffickers consolidated their grip on Mexico. The paper concluded by saying that it is unclear whether the arrangements continue. The DEA and other U.S. agencies declined to comment to El Universal.
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    Another chapter in the long-running history of U.S. government participation in drug-smuggling and gun-running. This one breathes new life into the notorious Fast & Furious scandal.
Paul Merrell

Obama DOJ's New Abuse of State-Secrets Privilege Revealed - The Intercept - 0 views

  • For nine years, the U.S. government refused to let a Stanford PhD student named Rahinah Ibrahim back in the country after putting her on the no-fly list for no apparent reason. For eight years, U.S. government lawyers fought Ibrahim’s request that she be told why. Last April, despite his promise in 2009 to do so only in only the most extreme cases, Attorney General Eric Holder tried to block Ibrahim’s case by asserting the state secrets privilege, declaring under penalty of perjury that the information she wanted “could reasonably be expected to cause significant harm to national security.” Last week, a federal judge publicly revealed the government’s explanation for Ibrahim’s long ordeal: an FBI agent had “checked the wrong box,” resulting in her falling under suspicion as a terrorist. Even when the government found and corrected the error years later, they still refused to allow Ibrahim to return to the country or learn on what grounds she had been banned in the first place.
  • Holder, in his April declaration, restated his own new state secrets policy, that “[t]he Department will not defend an invocation of the privilege in order to: (i) conceal violations of the law, inefficiency, or administrative error; (ii) prevent embarrassment to a person, organization, or agency of the United States Government”. Then he did exactly what he had said he wouldn’t do. The bogus national security claims invoked were even more outrageous because they were used to continue the persecution of someone the government knew to be innocent.
Paul Merrell

Victory! Federal Court Recognizes Constitutional Rights of Americans on the No-Fly List... - 0 views

  • A federal court took a critically important step late yesterday towards placing a check on the government's secretive No-Fly List. In a 38-page ruling in Latif v. Holder, the ACLU's challenge to the No-Fly List, U.S. District Court Judge Anna Brown recognized that the Constitution applies when the government bans Americans from the skies. She also asked for more information about the current process for getting off the list, to inform her decision on whether that procedure violates the Fifth Amendment guarantee of due process. We represent 13 Americans, including four military veterans, who are blacklisted from flying. At oral argument in June on motions for partial summary judgment, we asked the court to find that the government violated our clients' Fifth Amendment right to due process by barring them from flying over U.S. airspace – and smearing them as suspected terrorists – without giving them any after-the-fact explanation or a hearing at which to clear their names. The court's opinion recognizes – for the first time – that inclusion on the No-Fly List is a draconian sanction that severely impacts peoples' constitutionally-protected liberties. It rejected the government's argument that No-Fly list placement was merely a restriction on the most "convenient" means of international travel.
  • Such an argument ignores the numerous reasons an individual may have for wanting or needing to travel overseas quickly such as for the birth of a child, the death of a loved one, a business opportunity, or a religious obligation. According to the court, placement on the No-Fly List is like the revocation of a passport because both actions severely burden the right to international travel and give rise to a constitutional right to procedural due process: Here it is undisputed that inclusion on the No-Fly List completely bans listed persons from boarding commercial flights to or from the United States or over United States air space.  Thus, Plaintiffs have shown their placement on the No-Fly List has in the past and will in the future severely restrict Plaintiffs' ability to travel internationally. Moreover, the realistic implications of being on the No-Fly List are potentially far-reaching. For example, TSC [the Terrorist Screening Center] shares watchlist information with 22 foreign governments and United States Customs and Boarder [sic] Protection makes recommendations to ship captains as to whether a passenger poses a risk to transportation security, which can result in further interference with an individual's ability to travel as evidenced by some Plaintiffs' experiences as they attempted to travel abroad by boat and land and were either turned away or completed their journey only after an extraordinary amount of time, expense, and difficulty. Accordingly, the Court concludes on this record that Plaintiffs have a constitutionally-protected liberty interest in traveling internationally by air, which is affected by being placed on the list. The court also found that the government's inclusion of our clients on the No-Fly List smeared them as suspected terrorists and altered their ability to lawfully board planes, resulting in injury to another constitutionally-protected right: freedom from reputational harm.
  • The importance of these rulings is clear. Because inclusion on the No-Fly List harms our clients' liberty interests in travel and reputation, due process requires the government to provide them an explanation and a hearing to correct the mistakes that led to their inclusion. But under the government's "Glomar" policy, it refuses to provide any information confirming or denying that our clients are on the list, let alone an after-the-fact explanation and hearing. The court has asked the ACLU and the government for more information about the No-Fly List redress procedure to help it decide the ultimate question of whether that system violates the Fifth Amendment right to due process. We are confident the court will recognize that the government's "Glomar" policy of refusing even to confirm or deny our clients' No-Fly List status (much less actually providing the reasons for their inclusion in the list) is fundamentally unfair and unconstitutional.
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    A case decision in August that I had missed, right here in Oregon. One of our Oregon federal judges gets it right after being reversed the first time by the 9th U.S. Circuit Court of Appeals. I've read the opinion. Looks quite solid. Plaintiffs were carefully chosen for this test case, 13 citizens placed on the no-fly list, all with compelling stories of winding up stranded, some overseas. Several are U.S. military veterans. All were told by government officials that the reason they could not board was because they were on the TSA no-fly list. At issue is whether they have a right to be informed of the information that resulted in them being placed on the no-fly list and a right to a hearing to seek correction of the information. Their constitutional interest in their reputations is also in play, since they have been classified by their government as too dangerous to allow to travel by commercial airline.   The district court case is not done; the judge has ordered further briefing on some issues. But the government is trying to defend a process in which no one is ever formally notified that they are on the no-fly list and is never advised of the reasons they are on the no-fly list. The number of Americans on the no-fly list is now over 700,000. But the judge has recognized that there is a constitutional right to travel and that it extends to international travel. From the opinion: "Plaintiffs contend the government has deprived them of their protected liberty interest in travel. In Kent v. Dulles, 357 U.S. 116 (1958), the Supreme Court held "[t]he right to travel is part of the 'liberty' of which the citizen cannot be deprived without due process of law under the Fifth Amendment."  Id. at 125. As noted by the Ninth Circuit, "the [Supreme] Court has consistently treated the right to international travel as a liberty interest that is protected by the Due Process Clause of the Fifth Amendment." DeNieva v. Reyes, 966 F.2d 480, 485 (9th Cir. 1992)(emp
Paul Merrell

NSA can eavesdrop on Americans' phone calls, documents show | Politics and Law - CNET News - 0 views

  • The National Security Agency has been secretly granted legal authority to operate a massive domestic eavesdropping system that vacuums up Americans' phone calls and Internet communications, newly leaked documents show. A pair of classified government documents (No. 1 and No. 2) signed by Attorney General Eric Holder and posted by the Guardian on Thursday show that NSA analysts are able to listen to Americans' intercepted phone calls without asking a judge for a warrant first. That appears to be at odds with what President Obama said earlier this week in defense of the NSA's surveillance efforts. "I can say unequivocally is that if you are a U.S. person, the NSA cannot listen to your telephone calls and the NSA cannot target your e-mails," Obama said. The new documents indicate, however, that NSA, CIA, and FBI analysts are granted broad access to data vacuumed up by the world's most powerful intelligence agency -- but are supposed to follow certain "targeting" and "minimization" procedures to limit the number of Americans who become individual targets of warrantless surveillance.
  • Analysts are expected to exercise "reasonable judgment" in determining which data to use, according to the documents, and "inadvertently acquired communications of or concerning a United States person may be retained no longer than five years." The documents also refer to "content repositories" that contain records of devices' "previous Internet activity," and say the NSA keeps records of Americans' "electronic communications accounts/addresses/identifiers" in an apparent effort to avoid targeting them in future eavesdropping efforts. The Holder procedures were blessed in advance by the secret Foreign Intelligence Surveillance Court, the Guardian reported, meaning that the judges would have issued a general order that authorizes the NSA to engage in warrantless surveillance as long as it's primarily aimed at foreign targets, subject to some limited judicial oversight. Today's disclosure jibes with what Edward Snowden, the former NSA contractor who leaked top-secret documents, alleged in an online chat earlier this week. Snowden said, referring to the contents of e-mail and phone calls, that "Americans' communications are collected and viewed on a daily basis on the certification of an analyst rather than a warrant."
  • On Sunday, Director of National Intelligence James Clapper released a carefully-worded statement in response to a CNET article and other reports questioning when intelligence analysts can listen to domestic phone calls. Clapper said: "The statement that a single analyst can eavesdrop on domestic communications without proper legal authorization is incorrect and was not briefed to Congress." Clapper's statement was viewed as a denial, but it wasn't. Today's disclosures reveal why: Because the Justice Department granted intelligence analysts "proper legal authorization" in advance through the Holder regulations. "The DNI has a history of playing games with wording, using terms with carefully obscured meanings to leave an impression different from the truth," Kurt Opsahl, a senior staff attorney at the Electronic Frontier Foundation who has litigated domestic surveillance cases, told CNET earlier this week.
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  • Jameel Jaffer, the American Civil Liberties Union's deputy legal director, said in a statement today that: After Congress enacted the FISA Amendments Act in 2008, we worried that the NSA would use the new authority to conduct warrantless surveillance of Americans' telephone calls and emails. These documents confirm many of our worst fears. The "targeting" procedures indicate that the NSA is engaged in broad surveillance of Americans' international communications. The "minimization" procedures that supposedly protect Americans' constitutional rights turn out to be far weaker than we imagined they could be. For example, the NSA claims the authority to collect and disseminate attorney-client communications -- and even, in some circumstances, to turn them over to Justice Department prosecutors. The government also claims the authority to retain Americans' purely domestic communications in certain situations.
  • The documents suggest there are some significant loopholes in domestic surveillance: if an NSA analyst reviews an intercepted communication and finds "evidence of a crime that has been, is being, or is about to be committed," it can be forwarded to the FBI or other federal law enforcement agencies. Another loophole is "a serious harm to life or property" -- which could sweep in intellectual property -- and "enciphered" data. Communications that contain "enciphered" data, which would likely include PGP but also could mean encrypted Web connections using SSL, may be kept indefinitely. Earlier reports have indicated that the NSA has the ability to record nearly all domestic and international phone calls -- in case an analyst needed to access the recordings in the future. A Wired magazine article last year disclosed that the NSA has established "listening posts" that allow the agency to collect and sift through billions of phone calls through a massive new data center in Utah, "whether they originate within the country or overseas." That includes not just metadata, but also the contents of the communications.
  • Section 702 of the FAA says surveillance may be authorized by the attorney general and director of national intelligence without prior approval by the secret Foreign Intelligence Surveillance Court, as long as minimization requirements and general procedures blessed by the court are followed.
Paul Merrell

Republicans Want Obama to Send Benghazi Suspect to Guantanamo - 0 views

  • Republicans want President Barack Obama to send the first suspect arrested in the 2012 attack in Benghazi, Libya, that left four Americans dead to the prison in Guantánamo Bay, Cuba. Sen. John McCain of Arizona was among a group of Senate Republicans urging for Ahmed Abu Khatallah to be sent to Guantánamo — even as Attorney General Eric H. Holder Jr. put out a statement declaring his intent to try Khatallah in U.S. courts. “That’s where the detention facilities are. … It’s totally inappropriate to keep him anywhere else,” McCain said. Sen. Lindsey Graham, R-S.C., said Guantánamo has yielded significant intelligence over the years. “We’re turning war into a crime and it’s going to bite us in the butt,” he said. Democrats, however, dismissed the idea, and Holder made clear Khatallah would stand trial. “Khatallah currently faces criminal charges on three counts, and we retain the option of adding additional charges in the coming days,” Holder said. “Even as we begin the process of putting Khatallah on trial and seeking his conviction before a jury, our investigation will remain ongoing as we work to identify and arrest any co-conspirators.”
Gary Edwards

The Great Deceiver - The Federal Reserve - 0 views

  • From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds. Certainly Belgium did not have a budget surplus of $141.2 billion. Was Belgium running a trade surplus during a 3-month period equal to 29 percent of Belgium GDP? No, Belgium's trade and current accounts are in deficit. Did Belgium's central bank print $141.2 billion worth of euros in order to make the purchase? No, Belgium is a member of the euro system, and its central bank cannot increase the money supply. So where did the $141.2 billion come from?
  • There is only one source. The money came from the US Federal Reserve, and the purchase was laundered through Belgium in order to hide the fact that actual Federal Reserve bond purchases during November 2013 through January 2014 were $112 billion per month. In other words, during those 3 months there was a sharp rise in bond purchases by the Fed. The Fed's actual bond purchases for those three months are $27 billion per month above the original $85 billion monthly purchase and $47 billion above the official $65 billion monthly purchase at that time. (In March 2014, official QE was tapered to $55 billion per month and to $45 billion for May.) Why did the Federal Reserve have to purchase so many bonds above the announced amounts and why did the Fed have to launder and hide the purchase? Some country or countries, unknown at this time, for reasons we do not know dumped $104 billion in Treasuries in one week.
  • What are the reasons for this deception by the Federal Reserve?
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  • The Fed realized that its policy of Quantitative Easing initiated in order to support the balance sheets of "banks too big to fail" and to lower the Treasury's borrowing cost was putting pressure on the US dollar's value. Tapering was a way of reassuring holders of dollars and dollar-denominated financial instruments that the Fed was going to reduce and eventually end the printing of new dollars with which to support financial markets. The image of foreign governments bailing out of Treasuries could unsettle the markets that the Fed was attempting to soothe by tapering.
  • A hundred billion dollar sale of US Treasuries is a big sale. If the seller was a big holder of Treasuries, the sale could signal the bond market that a big holder might be selling Treasuries in large chunks. The Fed would want to keep the fact and identity of such a seller secret in order to avoid a stampede out of Treasuries. Such a stampede would raise interest rates, collapse US financial markets, and raise the cost of financing the US debt. To avoid the rise in interest rates, the Fed would have to accept the risk to the dollar of purchasing all the bonds. This would be a no-win situation for the Fed, because a large increase in QE would unsettle the market for US dollars.
  • Washington's power ultimately rests on the dollar as world reserve currency. This privilege, attained at Bretton Woods following World War 2, allows the US to pay its bills by issuing debt. The world currency role also gives the US the power to cut countries out of the international payments system and to impose sanctions.
  • As impelled as the Fed is to protect the large banks that sit on the board of directors of the NY Fed, the Fed has to protect the dollar. That the Fed believed that it could not buy the bonds outright but needed to disguise its purchase by laundering it through Belgium suggests that the Fed is concerned that the world is losing confidence in the dollar. If the world loses confidence in the dollar, the cost of living in the US would rise sharply as the dollar drops in value. Economic hardship and poverty would worsen. Political instability would rise. If the dollar lost substantial value, the dollar would lose its reserve currency status. Washington would not be able to issue new debt or new dollars in order to pay its bills.
  • Its wars and hundreds of overseas military bases could not be financed.
  • The withdrawal from unsustainable empire would begin. The rest of the world would see this as the silver lining in the collapse of the international monetary system brought on by the hubris and arrogance of Washington.
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    Incredible.  Since 2009, the Fed has been pumping $85 Billion per month into the Wall Street hedge funds of it's member banks.  Economist Paul Craig Roberts noticed some funny business the past few months regarding the Fed's numbers.  It turns out that while the Fed has been trying to convince the world that they are tapering off on their $85 Billion per month debt printing spree, the truth is just the opposite.  They have increased the debt spree to $112 Billion per month; with the help of a secret money laundering operation involving Belgium! Incredible!
Paul Merrell

House Holds Lois Lerner in Contempt in IRS Scandal - 0 views

  • The House voted Wednesday to hold former IRS official Lois Lerner in contempt of Congress and to instruct the Justice Department to probe her for criminal charges. The actions mark the culmination of two simultaneous committee investigations into allegations that Lerner knowingly presided over the improper targeting of conservative outside groups seeking tax-exempt status with the agency, including stalling the application process and giving special scrutiny to organizations that appeared to be affiliated with the tea party movement.
  • One resolution (H Res 574), agreed to on a 231-187 vote, will make Lerner the sixth public official since 1982 to be held in contempt for her refusal to testify before the Oversight and Government Reform Committee. Lerner cited her Fifth Amendment right to remain silent in an appearance last year. The other resolution (H Res 565), referred by the Ways and Means Committee and supported Wednesday by a 250-168 vote, would call upon Attorney General Eric H. Holder Jr. to appoint a special prosecutor to evaluate whether Lerner should face criminal charges on specific counts of misconduct related to the scandal. Neither resolution is likely to yield results: The Justice Department is actually under no obligation to appoint a special counsel, and the criminal contempt statute says the U.S. attorney has a “duty” to convene a grand jury in an event of a contempt citation, but it doesn’t appear to be mandatory.
Gary Edwards

New Study shows Liberals have a lower average IQ than Conservatives | International Ass... - 0 views

  • A new study conducted at Harvard University shows that in America, Liberals have a significantly lower IQ than Conservatives. The study was conducted on 100,000 registered voters in 40 different states over the last twelve years, and has concluded its results.
  • The first part of the study lists the correlation between political beliefs and intelligence. Subjects of the study were chosen at random and requested to come to an unmarked van to take a test and answer some questions for a reasonable amount of money. Of the 100,000 people, there were people from many doctrines, from conservative to liberal to marxist to fascist. Socialists came out on bottom, with an average IQ of 87. The second worst were Liberals and then Marxists, with 88 and 89 respectively. Conservatives received an average score of 110, which is significantly above average. However, the conservatives did not score the highest. The holder of second place were Communists with an average I.Q of 115, and the first place was apolitical people who did not follow any specific doctrine, who received a whopping score on average of 135.
  •   IAHYM News attempted to interview President Barack Obama on the new find, but he refused to speak directly. Instead, while walking down the strange hallway, he told correspondent Joseph Ducreux that the study was ridiculous and false, but failed to provide any reason as to why or how the science of the study is at fault. Hilary Rodham Clinton was also contacted, but she immediately hung up the phone when she figured out that the study was being mentioned at all.
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  • Other parts of the study included the daily activities of the various people based on their doctrines. Apparently, Liberals are five times more likely to commit a crime, steal or cheat on a test than anybody else except for Socialists, 52% of which have committed a major felony while being watched. Conservatives not only did not commit any crimes, but they actually prevented them, as the few events where a Conservative was threatened by a thief or mugger was hindered by a concealed handgun.  Also, Communists are the most likely to commit rape or sexual assault, second to socialists.
  • The study was conducted in other countries as well, where 81% of Muslim Extremists admitted to following the Liberal doctrine and idolizing President Barack Obama. The study was conducted by a group of roughly 900 different scientists across the country over the past twelve years, each one taking on a little over a hundred people per person.
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    "A new study conducted at Harvard University shows that in America, Liberals have a significantly lower IQ than Conservatives. The study was conducted on 100,000 registered voters in 40 different states over the last twelve years, and has concluded its results. The first part of the study lists the correlation between political beliefs and intelligence. Subjects of the study were chosen at random and requested to come to an unmarked van to take a test and answer some questions for a reasonable amount of money. Of the 100,000 people, there were people from many doctrines, from conservative to liberal to marxist to fascist. Socialists came out on bottom, with an average IQ of 87. The second worst were Liberals and then Marxists, with 88 and 89 respectively. Conservatives received an average score of 110, which is significantly above average. However, the conservatives did not score the highest. The holder of second place were Communists with an average I.Q of 115, and the first place was apolitical people who did not follow any specific doctrine, who received a whopping score on average of 135."
Gary Edwards

Eric Holder for AG should not be put forward: Debra Burlingame » 9/11 Familie... - 0 views

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    At the time Mr. Holder was pushing for the release of these terrorists in September of 1999, the suicide pilots for the 9/11 attacks had been selected and were already here or on their way here. Domestic and transnational terrorism was ramping up, as illustrated by the 1993 World Trade Center bombing, the 1995 Tokyo subway Sarin attack, the 1995 Oklahoma City bombing, the 1995 "Bojinka" conspiracy to hijack airplanes and crash them into buildings, the 1996 Khobar Towers bombing, the 1996 Summer Olympics bombing, Osama bin Laden's 1996 and 1998 "Declarations of War" on America, the 1998 East African embassy bombings, the 2000 USS Sullivans bombing attempt, the 2000 USS Cole bombing, and the 2000 Millennium bombing plot. It is within this context which the FBI stated that "the release of these individuals will psychologically and operationally enhance the ongoing violent and criminal activities of terrorist groups, not only in Puerto Rico, but throughout the world."
Gary Edwards

Hussman Funds: Timothy Geithner Meets Vladimir Lenin - January 4, 2010 - 0 views

  • Rick Santelli of CNBC is exactly right. If this is how the U.S. government is going to operate in a democratic, free-market society, ‘we might as well put a hammer and sickle on the flag.'
  • Rick Santelli of CNBC is exactly right. If this is how the U.S. government is going to operate in a democratic, free-market society, ‘we might as well put a hammer and sickle on the flag.'
  • Rick Santelli of CNBC is exactly right. If this is how the U.S. government is going to operate in a democratic, free-market society, ‘we might as well put a hammer and sickle on the flag.'
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  • “In effect, the Federal Reserve decided last week to overstep its legal boundaries – going beyond providing liquidity to the banking system and attempting to ensure the solvency of a non-bank entity. Specifically, the Fed agreed to provide a $30 billion “non-recourse loan” to J.P. Morgan, secured only by the worst tranche of Bear Stearns' mortgage debt. But the bank – J.P. Morgan – was in no financial trouble. Instead, it was effectively offered a subsidy by the Fed at public expense. Rick Santelli of CNBC is exactly right. If this is how the U.S. government is going to operate in a democratic, free-market society, ‘we might as well put a hammer and sickle on the flag.'
  • the Treasuries purchased by the Fed have always been accompanied directly or indirectly by revenue to the government that could be spent on behalf of its citizens for government programs that had the vote of Congress.
  • What has happened over the past two years is that the Federal Reserve has purchased about $1.25 trillion dollars in mortgage-backed securities issued by Fannie Mae and Freddie Mac – securities that the Treasury has now made an unlegislated (or at minimum, unintentionally legislated), bureaucratic decision to fully back.
  • Fiscal policy was always the domain of Congress alone.
  • Prior to 2008, the total amount of monetary base created in the history of the United States was about $800 billion.
  • the Treasury has committed to “allow the cap on Treasury's funding commitment under these agreements to increase as necessary to accommodate any cumulative reduction in net worth.”
  • In a sharp break from the past, the issuance of these Treasury securities will not be accompanied by any revenue to the government for Congressionally approved programs.
  • Every dollar of bad mortgage debt that should have been written off is now enshrined as two dollars of government-backed debt. One dollar as the original debt, which will now be made whole, and one dollar of new Treasury securities, which must be issued to make that original debt whole. Accordingly, the holders of both securities will have claims against our national assets and future wealth.
  • Rick Santelli of CNBC is exactly right. If this is how the U.S. government is going to operate in a democratic, free-market society, ‘we might as well put a hammer and sickle on the flag.'
  • Rick Santelli of CNBC is exactly right. If this is how the U.S. government is going to operate in a democratic, free-market society, ‘we might as well put a hammer and sickle on the flag.
  • “In effect, the Federal Reserve decided last week to overstep its legal boundaries – going beyond providing liquidity to the banking system and attempting to ensure the solvency of a non-bank entity. Specifically, the Fed agreed to provide a $30 billion “non-recourse loan” to J.P. Morgan, secured only by the worst tranche of Bear Stearns' mortgage debt. But the bank – J.P. Morgan – was in no financial trouble. Instead, it was effectively offered a subsidy by the Fed at public expense. Rick Santelli of CNBC is exactly right. If this is how the U.S. government is going to operate in a democratic, free-market society, ‘we might as well put a hammer and sickle on the flag.'
  • “The deal was made under duress, to the benefit of a private company, on the basis of financial assurances that the bureaucrats involved had no business making.
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    the Fed is now engaging in unlegislated, back-door fiscal policy. excerpt:  "The best way to destroy the capitalist system is to debauch the currency." Vladimir Lenin, leader of the 1917 Russian Revolution Last week, while Congress and the nation were preoccupied with the holidays, the Treasury made a Christmas eve announcement that it would be providing Fannie Mae and Freddie Mac unlimited financial support for the next three years. Put simply, in a single, coordinated stroke, the Treasury and the Federal Reserve have encroached on spending powers that are enumerated for the Congress alone. Under the Housing and Economic Recovery Act of 2008 (HERA), the Treasury has no such open-ended authority. Indeed, the applicable portion of the Act explicitly limits the total amount of mortgage principal (not losses, but total principal) as follows: .......... In a sharp break from the past, the issuance of these Treasury securities will not be accompanied by any revenue to the government for Congressionally approved programs. The Treasuries will be issued, the money will be handed over the Fannie Mae and Freddie Mac, and those funds will go largely to the Federal Reserve and other holders of existing mortgage debt simply to replace the bad, but bailed-out agency securities with cash as they mature. The public gets nothing for something - the issuance of the Treasuries is in itself their expenditure.
Paul Merrell

Sunday show wrap-up: Attacks dominate | TheHill - 0 views

  • PARIS TERROR ATTACKS Holder: French attacks point to threats to United States  "This is the nature of the new threat we must confront," he said.  http://ow.ly/H7Y6N Holder: US at war with terrorists who 'corrupt' Islam  "We are determined to take the fight to them," he said.  http://ow.ly/H80nw Holder: US does not stereotype in identifying terror suspects  “I think we’re doing a good job monitoring those people," he said.  http://ow.ly/H89Vu Homeland Security chairman: Foreign fighters a threat to US  Rep. Michael McCaul (R-Texas) said Europe should tighten its travel restrictions.  http://ow.ly/H8kEu Senate Intel chief: Terrorist attacks could start happening every week  Sen. Richard Burr (R-N.C.) pointed to the number of sleeper cells in Europe.  http://ow.ly/H87bW Former Intel chairwoman: Major attack on US 'in the realm of possibility'  Sen. Dianne Feinstein (D-Calif.) said sleeper terrorist cells exist in the United States.  http://ow.ly/H82PL
  • Visa waiver program poses security threat, Dem senator says  "The visa waiver program is the Achilles heel of America," Feinstein said.  http://ow.ly/H83qO McCain: Obama has no plan to defeat terrorists  The senator said the number of threats are the result of "leading from behind."  http://ow.ly/H86xO Top GOP senator: Call it a war on terror  "There is a tendency toward political correctness," Sen. John Cornyn said.  http://ow.ly/H8iBE Top Obama military adviser: No al Qaeda link to Paris attacks  Gen. Martin Dempsey said the gunmen have been linked by family and school ties.  http://ow.ly/H825h
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    "The sky is falling; the sky is falling," shouted Henny Penny, as the little red hen fled for her life.  
Paul Merrell

Blacklisted: The Secret Government Rulebook For Labeling You a TerroristThe Intercept - 0 views

  • The Obama administration has quietly approved a substantial expansion of the terrorist watchlist system, authorizing a secret process that requires neither “concrete facts” nor “irrefutable evidence” to designate an American or foreigner as a terrorist, according to a key government document obtained by The Intercept. The “March 2013 Watchlisting Guidance,” a 166-page document issued last year by the National Counterterrorism Center, spells out the government’s secret rules for putting individuals on its main terrorist database, as well as the no fly list and the selectee list, which triggers enhanced screening at airports and border crossings. The new guidelines allow individuals to be designated as representatives of terror organizations without any evidence they are actually connected to such organizations, and it gives a single White House official the unilateral authority to place entire “categories” of people the government is tracking onto the no fly and selectee lists. It broadens the authority of government officials to “nominate” people to the watchlists based on what is vaguely described as “fragmentary information.” It also allows for dead people to be watchlisted. Over the years, the Obama and Bush Administrations have fiercely resisted disclosing the criteria for placing names on the databases—though the guidelines are officially labeled as unclassified. In May, Attorney General Eric Holder even invoked the state secrets privilege to prevent watchlisting guidelines from being disclosed in litigation launched by an American who was on the no fly list. In an affidavit, Holder called them a “clear roadmap” to the government’s terrorist-tracking apparatus, adding: “The Watchlisting Guidance, although unclassified, contains national security information that, if disclosed … could cause significant harm to national security.”
  • The rulebook, which The Intercept is publishing in full, was developed behind closed doors by representatives of the nation’s intelligence, military, and law-enforcement establishment, including the Pentagon, CIA, NSA, and FBI. Emblazoned with the crests of 19 agencies, it offers the most complete and revealing look into the secret history of the government’s terror list policies to date. It reveals a confounding and convoluted system filled with exceptions to its own rules, and it relies on the elastic concept of “reasonable suspicion” as a standard for determining whether someone is a possible threat. Because the government tracks “suspected terrorists” as well as “known terrorists,” individuals can be watchlisted if they are suspected of being a suspected terrorist, or if they are suspected of associating with people who are suspected of terrorism activity. “Instead of a watchlist limited to actual, known terrorists, the government has built a vast system based on the unproven and flawed premise that it can predict if a person will commit a terrorist act in the future,” says Hina Shamsi, the head of the ACLU’s National Security Project. “On that dangerous theory, the government is secretly blacklisting people as suspected terrorists and giving them the impossible task of proving themselves innocent of a threat they haven’t carried out.” Shamsi, who reviewed the document, added, “These criteria should never have been kept secret.”
Gary Edwards

Porter Stansberry- Porter Stansberry: These events confirm my greatest fears - 0 views

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    The Central Banksters of the World are printing money as fast as possible, and using this paper to buy up tons of GOLD.  Rather than lending to productive businesses, the Banksters are using their fiat paper volumes to buy up hard assets, with land, precious metals, and controlling positions in asset rich productive or leading commodity enterprises.  This is not going to end well for those left holding paper when it all crashes. "If you didn't take our warnings or strategies seriously before, I hope now you can see that we have been right: The authorities mean to print their bad sovereign debts away through an ongoing and massive inflation. Just how big is this inflation likely to be? When you look at the world's largest external debt positions, two economic areas appear as outliers: the European Union ($16 trillion) and the U.S. ($14.7 trillion). Even on a per-capita basis, the external foreign debts of the U.S. are enormous ($50,000 per person). Many countries in the European Union are in an even more precarious position. France has $74,000 in external debt per person. Germany has $57,000. These countries obviously have much to gain by printing the currency necessary to repay their obligations. I estimate we'll see at least another doubling of the monetary base in both the U.S. and the ECB. The question is how these nations' creditors will respond. In response... the West's creditors are piling into the one reserve asset no one can print: gold. Since the beginning of quantitative easing in America, Russia has almost doubled its holdings of gold, buying 500 tons. China bought 454 tons during the same period. And it's not only America's economic and military rivals who obviously no longer trust the U.S. dollar or the euro. In the last year, Switzerland's central bank has quietly increased its holdings of gold by nearly 25%. We are approaching the moment of a global paper currency collapse: In the second quarter of this year, central banks around the world
Paul Merrell

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

  • 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.  
  • 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:
  • 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.
  • 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.
  • . . . 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.
Gary Edwards

PETITION URGING CONGRESS TO IMPEACH PRESIDENT BARACK OBAMA - 0 views

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    "PETITION URGENTLY REQUESTING THAT CONGRESS LAUNCH AN INDEPENDENT AND COMPREHENSIVE INVESTIGATION INTO UNCONSTITUTIONAL AND IMPEACHABLE OFFENSES ON THE PART OF PRESIDENT BARACK OBAMA To: All members of the U.S. Congress: Whereas, President Barack Obama not only failed to aid U.S. personnel under lethal and prolonged terrorist attack in Benghazi, Libya, on Sept. 11, 2012, resulting in the deaths of a U.S. ambassador and three other Americans, but also led an outrageously deceitful cover-up for weeks afterward, rivaling the Watergate-era cover-up that ended the presidency of Richard Nixon; Whereas, the IRS under Obama - in accord with direct instructions from congressional Democrats - has engaged in the most egregious and widespread attack on conservative groups in modern history, with the knowledge of top agency officials; Whereas, the Obama Justice Department, on top of its many first-term scandals, has spied on and harassed journalists at Fox News and the Associated Press, prompting widespread, bipartisan condemnation of the DOJ for "criminalizing journalism"; Whereas, top constitutional attorneys from across the political spectrum now agree that Obama has committed certain specific offenses that unquestionably rise to the level of impeachable "high crimes and misdemeanors"; Whereas, one of these offenses - that of illegally conducting war against Libya - has been deemed by a bipartisan panel of constitutional experts to be "clearly an impeachable offense" and "gross usurpation of the war power"; Whereas, Obama's policy of targeted assassinations of U.S. citizens without any constitutionally required due process - including the drone assassination of an American-born 16-year-old as he was eating dinner - is unanimously deemed by experts, both liberal and conservative, as "an impeachable offense"; Whereas, Obama's Justice Department has presided over the disastrous "Fast and Furious" operation in which approximately 2
Paul Merrell

The Torture Chronicle | The American Conservative - 0 views

  • If there is one word missing from the United States government’s post-9/11 lexicon it is “accountability.” While perfectly legal though illicit sexual encounters apparently continue to rise to the level of high crimes and misdemeanors, leading to resignations, no one has been punished for malfeasance, torture, secret prisons, or extraordinary renditions. Indeed, the Obama administration stated in 2009 that it would not punish CIA torturers because it prefers to “look forward and not back,” a decision not to prosecute that was recently confirmed by Attorney General Eric Holder in two cases involving the deaths of detainees after particularly brutal Agency interrogations. What the White House decision almost certainly means is that the president would prefer to avoid a tussle with the Republicans in congress over national security that would inevitably reveal a great deal of dirty laundry belonging to both parties.
  • The bipartisan willingness to avoid confrontation over possible war crimes makes the recently completed 6,000 page long Senate Intelligence Committee report on CIA torture an extraordinary document. Though it is still classified and might well never see the light of day even in any sanitized or bowdlerized form, its principal conclusions have been leaking out in the media over the past two weeks. It directly addresses the principal argument that has been made by Bush administration devotees and continues to be advanced regarding the CIA torture agenda:  that vital information obtained by “enhanced interrogation techniques” led to the killing of Osama bin Laden. According to the report, no information obtained by torture was critical to the eventual assassination of the al-Qaeda leader, nor has it been found to be an indispensable element in any of the other terrorism cases that were examined by the Senate committee.
  • What exactly does that mean? It means that torture, far from being an essential tool in the counter-terrorism effort, has not provided information that could not be obtained elsewhere and using less coercive methods. Senator Diane Feinstein, who sits on the Senate Intelligence Committee and has had access to the entire classified document, elaborated, explaining that the investigation carried out by the Senate included every detainee held by CIA, examining “the conditions under which they were detained, how they were interrogated, the intelligence they actually provided and the accuracy or inaccuracy of CIA descriptions about the program to the White House, Department of Justice, Congress and others.” It “uncovers startling details about the CIA detention and interrogation program…” The report has 35,000 footnotes and investigators perused 6 million pages of official records, which is why it has taken more than two years to produce. The Senate inquiry’s conclusions inevitably lead to the assumption that there has been a whole lot of lying and obfuscation going on in connection with the so-called war on terror.
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  • There are also other good reasons to oppose torture and torture by proxy through CIA rendition. Most people and governments worldwide believe that torture is immoral, a view that is generally shared by most Americans. Legally there is also a long tradition condemning torture. German and Japanese officers were executed after the Second World War for torturing prisoners and the principle was firmly established that torture, specifically including waterboarding, is a war crime. The US is signatory to the UN’s anti-torture convention and both the United States Code and specific acts of congress require prosecution of any government employee engaging in such activity. In practical terms, torture also opens up a door that should never be opened by anyone who genuinely cares about US soldiers, diplomats, and intelligence officers stationed at their peril around the world. To put it succinctly, if we do it to them, they will do it to us.
  • Torture advocates have assiduously cultivated a number of myths, most prominent of which is the “ticking time bomb.” This is a particular favorite of the redoubtable Alan Dershowitz and a number of prominent neocons. It goes like this – a terrorist is captured who has knowledge of an impending attack on a major civilian target, but he won’t cooperate. How to get the information?  Simple. Get an accommodating judge to issue a legal finding that enables you to torture him until he talks, thereby saving lives of innocent civilians. The only problem with the Dershowitz narrative is that there has never been an actual ticking time bomb. No terrorist has ever been captured, subjected to torture, and provided information that foiled an attack, not even in Israel where routine torture of suspected terrorists captured in flagrante used to be the case (but is now illegal). Advocating a policy of torture, with all that entails, based on a “what if” is fighting evil with more evil, not a solution.
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    The "ticking time bomb" justification for extraordinary rendition and torture holds no water under the U.S. Constitution. Consider the situation of a person suspected of kidnapping a child who may still be alive; might government lawfully discard the suspect's right to remain silent, the presumption of innocence, and the right to trial by jury in order to torture the suspect for information about the child's whereabouts? Our Constitution commands otherwise. 
Paul Merrell

Obama, Biden are war criminals under UN Charter: Analyst - 0 views

  • Most Americans, their minds focused at the moment on the tragic slaughter of 20 young children aged 5 and 6, along with five teachers and a school principal in Connecticut by a heavily-armed psychotic 21-year-old, are blissfully unaware that their previous president, George W. Bush, along with five key members of his administration, were recently convicted in absentia of war crimes at a tribunal in Kuala Lumpur, Malaysia. They are unaware because the US corporate media have ignored the story, just as that same corporate media have failed to note that the crimes of which Bush, Vice President Dick Cheney, former Defense Secretary Donald Rumsfeld and five White House lawyers, were convicted all could apply equally well to current President Barack Obama and his administration. Bush, Cheney, White House counsel (and later Attorney General) Alberto Gonzalez and others were found guilty earlier this month of war crimes and crimes against humanity relating to the executive orders that launched the wars against Iraq and Afghanistan, as well as of authorizing and failing to punish torture and other war crimes by US forces, including the military and the CIA.
  • But as international law expert Francis Boyle, a professor of law at the University of Illinois, notes, under the Geneva Convention, failing to take action to prosecute those guilty of war crimes such as the “Crime against Peace” (invading a country that does not pose an imminent threat to the attacker), and torture, are war crimes in and of themselves. Speaking last week at a Summit Conference on Human Rights held at the University of the Sacred Heart in the US island colony of Puerto Rico, Boyle said US authorities, including President Obama, are engaged in an “ongoing criminal conspiracy under international law” both to cover up and protect criminals like Bush, Cheney and Rumsfeld, and to continue the commission of war crimes by the US government.
  • Obama, when initially campaigning in 2008 for the presidency, vowed that he wanted to restore the respect for the law and the Constitution, once elected President, he and his attorney general Eric Holder quickly made it clear that they were “looking forward, not backward,” and that there would be no prosecutions or indictments for war crimes of any Bush administration people.   The thing is, at that moment, both President Obama and AG Holder became war criminals themselves under the UN Charter and the Nuremberg Principles, which declare that covering up war crimes by prior government and military leaders, and failure to prosecute such war crimes, are in themselves war crimes.
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  • But as Boyle noted in his address in San Juan, P.R., Obama, Vice President Joseph Biden, and the various secretaries of defense and state, the head of the CIA and the Pentagon Chiefs of Staff, as well as other Obama administration personnel, are also guilty of perpetrating ongoing war crimes themselves. Boyle accuses the Obama administration of continuing to conduct a “bogus” war on “international terrorism” including the ever escalating campaign of drone strikes in Pakistan, Afghanistan, Somalia, Yemen and other jurisdictions. He termed the president’s program of “targeted killings,” in which President Obama himself draws up the “kill list,” to be simply a case of “pure murder” under both traditional British common law and international law, and says these attacks constitute a “Crime against Humanity under Article 7(1)(a) of the Rome Statute for the International Criminal Court.”
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    While the charge that Obama and other administration officials committed crimes under the Rome Statute for the International Criminal Court might seem odd because the U.S. never acceded to that treaty or to the jurisdiction of the ICC, the statute applies to those who commit war crimes within the jurisdictions of nations that have acceded to the treaty and to their superiors who either knew of should have known that such crimes would be committed and did not act to prevent them.  Pakistan  and Yemen have acceded to the treaty. The Rome treaty requires the arrest of those classified as war criminals under that treaty if they set foot in any nation that has acceded to the treaty. So just as Bush administration figures have done, Obama and crew will need to restrict where they travel after he leaves office.
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    The linked article should have mentioned that it was a mock tribunal, without legal authority or powers.
Gary Edwards

Major Banksters, Governmental Officials and Their Comrade Capitalists Targets of Spire ... - 0 views

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    "NEW YORK, Oct. 25, 2012 /PRNewswire via COMTEX/ -- Spire Law Group, LLP's national home owners' lawsuit, pending in the venue where the "Banksters" control their $43 trillion racketeering scheme (New York) - known as the largest money laundering and racketeering lawsuit in United States History and identifying $43 trillion ($43,000,000,000,000.00) of laundered money by the "Banksters" and their U.S. racketeering partners and joint venturers - now pinpoints the identities of the key racketeering partners of the "Banksters" located in the highest offices of government and acting for their own self-interests. In connection with the federal lawsuit now impending in the United States District Court in Brooklyn, New York (Case No. 12-cv-04269-JBW-RML) - involving, among other things, a request that the District Court enjoin all mortgage foreclosures by the Banksters nationwide, unless and until the entire $43 trillion is repaid to a court-appointed receiver - Plaintiffs now establish the location of the $43 trillion ($43,000,000,000,000.00) of laundered money in a racketeering enterprise participated in by the following individuals (without limitation): Attorney General Holder acting in his individual capacity, Assistant Attorney General Tony West, the brother in law of Defendant California Attorney General Kamala Harris (both acting in their individual capacities), Jon Corzine (former New Jersey Governor), Robert Rubin (former Treasury Secretary and Bankster), Timothy Geitner, Treasury Secretary (acting in his individual capacity), Vikram Pandit (recently resigned and disgraced Chairman of the Board of Citigroup), Valerie Jarrett (a Senior White House Advisor), Anita Dunn (a former "communications director" for the Obama Administration), Robert Bauer (husband of Anita Dunn and Chief Legal Counsel for the Obama Re-election Campaign), as well as the "Banksters" themselves, and their affiliates and conduits. The lawsuit alleges serial violations of the United States Patri
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    This is the first time anyone has tried to go after the Bankster class of midievil (mediæval) elites to recover theft of funds. Charges include racketeering, fraud and international money laundering. The mass tort action is now in the Brooklyn Federal Courts. Dead bodies are starting to show up as the Banksters move to shut down press coverage. Amazing stuff.
Paul Merrell

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

  • 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.
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    Time to get your money out of the bank and into gold or silver, kept somewhere other than in a bank safety deposit box. 
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