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Dear Lou Dobbs, Who Owns the Federal Reserve? - 0 views

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    This is the March of 2008 repub of the infamous Dear Lou letter, written by Jesse Richard. Tracks exactly with the March 2008 collapse of Bear Stearns and the subsequent Federal Reserve - US Treasury bailout. IMHO, the Bear Stearns bailout and conversion was a test run to determine how the public and Congress would react. The key factor was the massive conversion of private Bankster debt to public (taxpayer) debt. Another way of saying this: socialize the losses and privatize the profits. The go between in this mechanism is the secret connection between the Federal Reserve cartel of private Banksters, and the US Treasury. Congress, through war and social programs, racks up enormous debt. Currently about $4 Billion of debt per day. This is the amount of spending beyond taxes and other revenue sources. To fund this debt, the Treasury sells bonds, most of which are currently being purchased by Banksters and Financial interests closely associated with a cascading network of interconnected Federal Reserve shareholders. Foreign sovereign bond purchasers like China and Japan mostly dropped out of participation in the Treasury auctions in 2008, as they started dumping US Treasury holdings. Today, the circle of USA debt works like this; the Federal Reserve provides member Banksters and International Bankster associates with Trillions of dollars of near interest free money ($16.1 Trillion in 2009-2010). The Banksters then purchase the US treasury bonds at whatever the auction interest rate turns out to be. In essence, we are loaning ourselves the money to pay off our government debt, with interest. Exactly as Mr Richard claims in his infamous letter. excerpt: Let me ask you a simple question: what country in its right mind would create a system that would force it to lend itself money and have to repay the money WITH INTEREST? What country would charge itself interest? What nation would put itself out of business by making it bankrupt because
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India now world's 3rd largest economy, behind just US, China - Financial Express - 0 views

  • India is now the world's third largest economy in terms of purchasing power parity, ahead of Japan and behind the US and China which hold the top two spots. This was revealed by the 2011 round of the World Bank's International Comparison Program (ICP) released on Tuesday. "The United States remained the world’s largest economy, but it was closely followed by China when measured using PPPs. India was now the world’s third largest economy, moving ahead of Japan," the report said. (Read report) It highlighted the fact that the largest economies were not the richest, as shown in the ranking of GDP per capita. The middle-income economies with large economies also had large populations, setting the stage for continued growth, it added.
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McCain calls for dramatic increase in US airstrikes against Islamic State - Yahoo News ... - 0 views

  • (Reuters) - Republican Senator John McCain called on Wednesday for a dramatic increase in U.S. airstrikes against Islamic State targets in Iraq and said the attacks should also extend into Syria. McCain told Reuters that the beheading of American journalist James Foley by Islamic State militants should serve as a turning point for President Barack Obama's deliberations on how to deal with the group. "First of all, you've got to dramatically increase the airstrikes. And those airstrikes have to be devoted to Syria as well," McCain said in a telephone interview. Of the video of Foley's beheading, McCain said: "I don't think there's any doubt that this horrible video on the Internet is bound to have an impact on the American people. The nature of the brutality of this organization has been brought home by this." McCain said hitting Islamic State targets in Syria is necessary because the militants have captured military equipment in the Iraqi city of Mosul which they seized in June and moved it into enclaves inside Syria. "We have to defeat them, not stop them," he said.
  • The Arizona senator also said the United States should arm Iraqi Kurds and help arrange a reconciliation between Shi'ites and Sunnis in Iraq.
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    What I'm still waiting to hear from the hawks is any kind of plan with a shot at achieving either a victory that also includes an exit strategy. Fact: the last major war the U.S. won was against Japan in 1945. Since then, the U.S. has been defeated in every major war, Korea, Viet Nam, Iraq, and Afghanistan. I also want to hear a reasonable plan for funding such a war. Until I see those details filled in, I hear nothing but a politics of fear call for government subsidization of the military/industrial complex. As though we could afford it.  
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BBC News - UK support for China-backed Asia bank prompts US concern - 0 views

  • The US has expressed concern over the UK's bid to become a founding member of a Chinese-backed development bank. The UK is the first big Western economy to apply for membership of the Asian Infrastructure Investment Bank (AIIB). The US has raised questions over the bank's commitment to international standards on governance. "There will be times when we take a different approach," a spokesperson for Prime Minister David Cameron said about the rare rebuke from the US. The AIIB, which was created in October by 21 countries, led by China, will fund Asian energy, transport and infrastructure projects. The UK insisted it would demand the bank adhere to strict banking and oversight procedures. "We think that it's in the UK's national interest," said Mr Cameron's spokesperson.
  • In a statement announcing the UK's intention to join the bank, Mr Osborne said that joining the AIIB at the founding stage would create "an unrivalled opportunity for the UK and Asia to invest and grow together". The hope is that investment in the bank will give British companies an opportunity to invest in the world's fastest growing markets. But the US sees the Chinese effort as a ploy to dilute US control of the banking system, and has persuaded regional allies such as Australia, South Korea and Japan to stay out of the bank. In response to the move, US National Security Council spokesman Patrick Ventrell said: "We believe any new multilateral institution should incorporate the high standards of the World Bank and the regional development banks." "Based on many discussions, we have concerns about whether the AIIB will meet these high standards, particularly related to governance, and environmental and social safeguards," he added.
  • The Financial Times (FT) newspaper reported on Thursday that US officials had complained about the British move. The report cited an unnamed senior US administration official as saying the British decision was taken after "virtually no consultation with the US". "We are wary about a trend toward constant accommodation of China," the newspaper quoted the US official as saying.
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  • The founding member countries of the AIIB have agreed the basic parameters that would determine the capital structure of the new bank would be relative gross domestic product. Banking experts have estimated that, if taken at face value, this would give China a 67% shareholding in the new bank. That's significantly different than the Asia Development Bank, which has a similar structure to the World Bank and has been in existence 1966. There, the majority stakes are controlled by Japan and the US.
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    The line comes to mind about rats deserting a sinking ship. 
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U.S. urges allies to think twice before joining China-led bank - Yahoo Finance - 0 views

  • (Reuters) - The United States urged countries on Tuesday to think twice about signing up to a new China-led Asian development bank that Washington sees as a rival to the World Bank, after Germany, France and Italy followed Britain in saying they would join. The concerted move by U.S. allies to participate in Beijing's flagship economic outreach project is a diplomatic blow to the United States and its efforts to counter the fast-growing economic and diplomatic influence of China. Europe's participation reflects the eagerness to partner with China's economy, the world's second largest, and comes amid prickly trade negotiations between Brussels and Washington.
  • European Union and Asian governments are frustrated that the U.S. Congress has held up a reform of voting rights in the International Monetary Fund that would give China and other emerging powers more say in global economic governance.
  • Washington insists it has not actively discouraged countries from joining the new bank, but it has questioned whether the Asian Infrastructure Investment Bank (AIIB) will have sufficient standards of governance and environmental and social safeguards. "I hope before the final commitments are made anyone who lends their name to this organization will make sure that the governance is appropriate," Treasury Secretary Jack Lew told U.S. lawmakers. Lew warned the Republican-dominated Congress that China and other rising powers were challenging American leadership in global financial institutions, and he urged lawmakers to swiftly ratify stalled reform of the IMF.
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  • In a joint statement, the foreign and finance ministers of Germany, France and Italy said they would work to ensure the new institution "follows the best standards and practices in terms of governance, safeguards, debt and procurement policies." Luxembourg’s Finance Ministry confirmed the country, a big financial centre, has also applied to be a founding member of the $50 billion AIIB.
  • A spokeswoman for the European Commission, the EU's executive arm, endorsed member states' participation in the AIIB as a way of tackling global investment needs and as an opportunity for EU companies.
  • Lew told lawmakers that the U.S. delay in ratifying the agreement was undermining its credibility and influence as countries question the United States' commitment to international institutions. “It's not an accident that emerging economies are looking at other places because they are frustrated that, frankly, the United States has stalled a very mild and reasonable set of reforms in the IMF,” Lew said.
  • Some Republicans have complained the changes would cost too much at a time Washington is running big budget deficits. The reforms have also ran afoul of a growing isolationist trend among the party's influential Tea Party wing.
  • Washington says it sees a role for the IAAB given Asia's immense infrastructure needs and regards it as a potential partner for established institutions like the ADB. But its strategy of questioning the IAAB's standards has drawn criticism from some observers, who say the administration should have been more accepting of the new bank or offered alternatives within the existing institutions. "If you try to fight the rising power's peaceful ascent you sow big problems in the future," said Fred Bergsten, a former top international affairs official at the U.S. Treasury and currently a fellow at the Peterson Institute in Washington. Scott Morris, a former U.S. Treasury official who led U.S. engagement with the multilateral development banks during the first Obama administration, said Washington was paying the price for delay on IMF reform. "It's a clear sentiment among a pretty diverse group of countries: We would like to mobilize more capital for infrastructure through MDBs (multilateral development banks)," said Morris, now with the Washington-based Center for Global Development. "And the U.S. stands in the way of that and now finds itself increasingly isolated as a result.”
  • Japan, Australia and South Korea remain notable regional absentees from the AIIB. Australian Prime Minister Tony Abbott said at the weekend he would make a final decision on membership soon. South Korea has said it is still in discussions with China and other countries about possible participation. Japan is unlikely to join the AIIB, but ADB head Takehiko Nakao told the Nikkei Asian Review that the two institutions were in discussions and could work together.
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    Oh, man. Angela Merkel just hitched Germany's wagon to China's, which implictly means Russia's and the rest of BRICS too. Plus the European Commission, UK, France, Italy, and Luxembourg   Keep in mind that China will open its RMB trading centers in the major financial hubs in September and that the folks in Brussels are making noises about a European combined defense organization, independent of NATO anjd the U.S.   I want more information to be certain that there is more here than moves to create bargaining leverage with Washington, D.C.. but it might soon be time to buy a wheelbarrow to carry my walkabout spending money. Wow!
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Central Bankers: By 2019 Get Ready For the End of 'Too Big to Fail' | nsnbc international - 0 views

  • Mark Carney, chairman of the Financial Stability Board (FSB) and governor of the Bank of England (BoE) has proposed new rules to put an end to the concept of “too big to fail” and taxpayer banker bailouts. Carney said: Once implemented, these agreements will play important roles in enabling globally systemic banks to be resolved (wound down) without recourse to public subsidy and without disruption to the wider financial system.”
  • The total loss-absorbing capacity (TLAC) of the past has allowed for the banks to benefit from taxpayer injections of cash to compensate for speculative betting on the stock market. Now banks “will have to fund themselves with loss-absorbing capital equal to 16-20% of their risk-weighted assets.” The 30 largest banks in the world are considered “systematically important” and affected by TLAC rules; however certain loopholes in the new rules could facilitate “different market conditions” paving the way for a specific assessment of an individual case to “even the playing field”.
  • Proposed ideas include the inception of “Goldman Sachs and HSBC [to] have a buffer of bonds or equity equivalent to at least 16 to 20 percent of their risk-weighted assets, such as loans, from January 2019.” Set in motion in 2013, the Bank of International Settlements (BIS) and the Basel Committee on Banking Supervisors (BCBS) has applied the underlying pressure on US banks to liquidate to appease global markets. The American taxpayer is picking up the tab for this turn of events. BIS is giving these banks until 2019 to comply with their new rules. Capital to prop up the banks will be needed while they liquidate assets such as bonds, mortgages, loans and stock shares.
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  • The European Central Bank (ECB) is setting the stage of a complete financial collapse of fiat currencies across the globe. Joining in the scheme are other technocratic institutions such as the Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan and the Swiss National Bank.
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Top Stories - U.S. has Military Bases in at least 38 Countries and Sent Weapons to 94 C... - 0 views

  • The old recruiting slogan was “Join the Navy and See the World.” Those advertisements were prescient; the U.S. military has a presence of some kind in 171 nations and jurisdictions in addition to the United States and its possessions. Many times the presence is one officer as a military attaché or similar post or even a military dependent. But some countries host significant numbers of members of the U.S. armed forces. The two countries hosting the most members of the U.S. military are the two the U.S. conquered in World War II. There were 49,503 members of the military in Japan as of the end of last year, according to the Department of Defense. Germany was next with 38,826 members of the U.S. armed forces stationed there. Although it’s difficult to nail down the exact worldwide number of U.S. military sites, the most recent Department of Defense report lists buildings in 38 foreign nations and territories. The U.S. has 179 bases in Germany and 109 installations in Japan.
  • Other countries have much smaller U.S. contingents. Greenland is the home of 142 lucky Air Force personnel. Fourteen members of different military branches are now stationed in Vietnam, 40 years after U.S. troops abandoned the ill-fated war there. And there’s likely a very short line at the PX in Mongolia; only four U.S. military personnel are stationed in that land-locked Asian nation. Indeed, U.S. bases can come in a variety of shapes and sizes, according to David Vine, author of Base Nation: How US Military Bases Abroad Harm America and the World. They include “small radar facilities in Peru and Puerto Rico….Even military resorts and recreation areas in places like Tuscany and Seoul are bases of a kind; worldwide, the military runs more than 170 golf courses.” Even where the U.S. doesn’t send military personnel, the U.S. does send weapons. The United States is the world largest arms exporter. From 2010 to 2014, Americans sent weapons to at least 94 countries, according to a report (pdf) by the Stockholm International Peace Research Institute (SIPRI). The country that got the largest share of the weaponry was South Korea, at 9%, followed by the United Arab Emirates at 8% and Australia at 8%. The United States accounts for 31% of the world’s arms exports, followed by Russia at 27% and China at 5%.
  • These Are All the Countries Where the U.S. Has a Military Presence (by Annalisa Merelli, Quartz) Base Structure Report: Fiscal Year 2014 Baseline (Department of Defense) (pdf) Trends in International Arms Transfers, 2014 (by Pieter D. Wezeman and Siemon T. Wezeman, SIPRI) (pdf) U.S. Will Close 15 Military Bases in Europe, but Keep Troop Levels the Same (by Steve Straehley, AllGov) U.S. Dominates Weapons Export Market as Profits Grow with Sales to the Middle East (by Noel Brinkerhoff, AllGov)
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These Are all the Countries Where the US Has a Military Presence | Global Research - Ce... - 0 views

  • On Mar. 24, US president Barack Obama announced that all 9,800 US troops currently stationed in Afghanistan will remain until the end of 2015. This generated a fair amount of criticism: it was, after all, Obama’s promise that the last American troop would leave the country in 2014. How have Obama’s plans for pulling out of Afghanistan fared so far? http://t.co/avoxwJzzQw pic.twitter.com/3S5FJ3lgho — FiveThirtyEight (@FiveThirtyEight) March 26, 2015
  • Those expecting the US to leave Afghanistan, however, should take a minute to consider this: the US still hasn’t left Germany. In fact, there are quite a few places the US hasn’t left, and while certainly most of them don’t pose a threat to American soldiers, they reveal a pattern about the US staying, rather than leaving. According to official information provided by the Department of Defense (DoD) and its Defense Manpower Data Center (DMDC) there are still about 40,000 US troops, and 179 US bases in Germany, over 50,000 troops in Japan (and 109 bases), and tens of thousands of troops, with hundreds of bases, all over Europe. Over 28,000 US troops are present in 85 bases in South Korea, and have been since 1957. Altogether, based on information contained in the DoD’s latest Base Structure Report (BSR), the US has bases in at least 74 countries and troops practically all over the world, ranging from thousands to just one in some countries (it could be a military attaché, for instance).
  • By comparison, France has bases in 10 countries, and the UK has bases in seven. Calculating the extent of the US military presence abroad is not an easy task. The data released by the Department of Defense is incomplete, and inconsistencies are found within documents. Quartz has requested clarification from the Department of Defense, but hasn’t received a response. In his forthcoming book Base Nation: How US Military Bases Abroad Harm America and the World, David Vine, associate professor of anthropology at American University details the difficulties of assessing the US military presence abroad. He writes: according to the most recent publicized count, the U.S. military currently still occupies 686 “base sites” outside the fifty states and Washington, DC. While 686 base sites is quite a figure in its own right, that tally strangely excludes many well-known U.S. bases, like those in Kosovo, Kuwait, and Qatar. Less surprisingly, the Pentagon’s count also excludes secret (or secretive) American bases, like those reported in Israel and Saudi Arabia. There are so many bases, the Pentagon itself doesn’t even know the true total. That is not the only issue—even a definitive count of bases would include a wide range of facilities. “Base” itself is an umbrella term that includes locations referred to as “post,” “station,” “camp,” or “fort” by different military bodies. Vine explains:
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  • bases come in all sizes and shapes, from massive sites in Germany and Japan to small radar facilities in Peru and Puerto Rico. […] Even military resorts and recreation areas in places like Tuscany and Seoul are bases of a kind; worldwide, the military runs more than 170 golf courses. The map below represents US military bases abroad, according to the official BSR, and from independent research conducted by Vine (and Quartz) using verified news reports as well as cross-referencing information with Google Maps. This map does not take into account NATO bases, including a rumored base in Turkmenistan and a base in Algeria, reported by Wikileaks to be a suspected US base.
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Japan's Fukushima Prefecture Shows Wave of Mutations - nsnbc international | nsnbc inte... - 0 views

  • Japanese researchers are reluctant to comment, but more than 90 percent of fir trees in forests close to the crippled Fukushima Daiichi Nuclear Power Plant (NPP) show signs of mutations and abnormalities while plant lice species sampled in a town more than 30 kilometers from the disaster site either have deformed legs or are missing legs. The mutations are a probable precursor of what is in store for Japanese people who are being resettled in allegedly de-contaminated towns and villages.
  • Japanese scientists are reluctant to comment on the record. Several attempts by nsnbc to reach out resulted in off-protocol confirmations of suspicions and references to Japanese law that makes revealing of unauthorized information about the Fukushima disaster a criminal offense that can be punishable with up to ten years in prison. The official line is that Japanese scientists are trying to figure out whether there is a causal relation between the wave of mutations and the still ongoing release of radiation and radionucleides into the environment. Studies focus primarily on hos radioactive cesium spread in forests and forest soil after the catastrophic triple meltdown at the TEPCO operated Fukushima Daiichi NPP after it was struck by an earthquake and a subsequent tsunami in 2011. Results of a 2013 study already revealed that levels of the radioactive isotope cesium from the crippled Fukushima Daiichi power plant in northern Japanese forests had almost doubled within one year and that it will continue increasing as the forests bioaccumulate the isotope. The 2013 study and ongoing studies have major ramifications even though these studies largely ignore a cohort of other, potentially more dangerous isotopes such as plutonium.
  • The wave of mutations in insects, fir trees and other animals is according to Japanese experts who are relutant to speak on the record a precursor for what populations who live within a 100 km radius of the crippled power-plant can expect to see in human populations. The Japanese government’s push for resettling populations that were evacuated to so-called de-contaminated villages and towns is particularly problematic and controversial. The Japanese government’s definition of a de-contaminated village, for example, means that the village itself and an area of a few hundred meters leading to these villages have been de-contaminated by e.g. top-sol removal. Water and airborne isotopes will, however, move with the waters and winds and easily re-contaminate these so-called safe zones. Evacuees who refuse to be resettled risk losing government support. Another serious issue is that radioactive contaminated waste from the region is incinerated in facilities throughout Japan, thus spreading airborne contamination throughout the entire country. Some critics stress that this program may aim at making it extremely difficult to conduct epidemiological studies.
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  • In November 2015 the former Japanese Ambassador to Switzerland, Mitshei Murata, called on the President of the International Olympic Committee to move the 2020 Olympics from Tokyo or to cancel the games. Murata noted that he, as many others feel the Olympic Summer Games under these circumstances should be canceled and the preparations abandoned. Murata wrote: Not only do we have a continued contamination of the groundwater and the Pacific Ocean by the unstable plant, but the brittle structure of the damaged plant represents itself a serious threat, in particular in our earthquake prone region. Given the relative proximity of Tokyo, just some 200km South of Fukushima, represents in my view an ongoing risk for our largest city, for its citizens and all visitors. You might agree that one more alarming development as the recent earthquake of magnitude 8.1 just some weeks ago might indeed increase the pressure to stop the planning process of the 2020 games all together.
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Russia liquidates nearly all its holdings of US debt & invests money in gold - RT Busin... - 0 views

  • The Central Bank of Russia has continued getting rid of US Treasury bonds in August. The share of Russian investments in American debt is getting close to zero. Russian investments in US securities as of August have fallen to just $14 billion. Back in 2011, Russia was one of the largest holders of US debt with a $180 billion investment.The reason is not only about politics and US sanctions against Russia, a broker at Otkritie bank Timur Nigmatullin told RIA Novosti. The US Federal Reserve is hiking interest rates, which makes American bonds cheaper, he said. “Russia has almost dropped out of the list of holders of US government debt, being the 54th largest holder.”
  • “A further sale of US Treasury bonds by Russia will most likely be compensated by buying gold and opening short-term deposits at banks,” he said. The share of precious metals in the country's foreign reserves has reached a record 18 percent, closely approaching the share of dollar investments.The largest investors in US debt, China and Japan, have also cut their holdings. Chinese holdings of US sovereign debt dropped to $1.165 trillion in August, from $1.171 trillion in July, marking the third consecutive month of declines. Japan has slashed its holdings of US securities to $1.029 trillion in August, the lowest since October 2011.
  • India and Turkey have followed Russia's lead. Turkey has dropped out of the top-30 list of holders of American debt, while India has been liquidating its investment for five consecutive months to $140 billion in August.
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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.  
  • 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.
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The same motive for anti-US 'terrorism' is cited over and over | Glenn Greenwald | Comm... - 0 views

  • News reports purporting to describe what Dzhokhar Tsarnaev told US interrogators should, for several reasons, be taken with a huge grain of salt. The sources for this information are anonymous, they work for the US government, the statements were obtained with no lawyer present and no Miranda warnings given, and Tsarnaev is "grievously wounded", presumably quite medicated, and barely able to speak.
  • In the last several years, there have been four other serious attempted or successful attacks on US soil by Muslims, and in every case, they emphatically all say the same thing: that they were motivated by the continuous, horrific violence brought by the US and its allies to the Muslim world - violence which routinely kills and oppresses innocent men, women and children:
  • It should go without saying that the issue here is causation, not justification or even fault. It is inherently unjustifiable to target innocent civilians with violence, no matter the cause (just as it is unjustifiable to recklessly kill civilians with violence). But it is nonetheless vital to understand why there are so many people who want to attack the US as opposed to, say, Peru, or South Africa, or Brazil, or Mexico, or Japan, or Portugal. It's vital for two separate reasons.First, some leading American opinion-makers love to delude themselves and mislead others into believing that the US is attacked despite the fact that it is peaceful, peace-loving, freedom-giving and innocent. As these myth-makers would have it, we don't bother anyone; we just mind our own business (except when we're helping and liberating everyone), so why would anyone possibly want to attack us?
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  • Second, it's crucial to understand this causation because it's often asked "what can we do to stop Terrorism?" The answer is right in front of our faces: we could stop embracing the polices in that part of the world which fuel anti-American hatred and trigger the desire for vengeance and return violence.
  • There seems to be this pervasive belief in the US that we can invade, bomb, drone, kill, occupy, and tyrannize whomever we want, and that they will never respond. That isn't how human affairs function and it never has been. If you believe all that militarism and aggression are justified, then fine: make that argument. But don't walk around acting surprised and bewildered and confounded (why do they hate us??) when violence is brought to US soil as well. It's the inevitable outcome of these choices, and that's not because Islam is some sort of bizarre or intrinsically violent and uncivilized religion. It's because no group in the world is willing to sit by and be targeted with violence and aggression of that sort without also engaging in it
  • Being targeted with violence is a major cost of war and aggression. It's a reason not do it. If one consciously decides to incur that cost, then that's one thing. But pretending that this is all due to some primitive and irrational religious response and not our own actions is dangerously self-flattering and self-delusional. Just listen to what the people who are doing these attacks are saying about why they are doing them. Or listen to the people who live in the places devastated by US violence about the results. None of it is unclear, and it's long past time that we stop pretending that all this evidence does not exist.
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    "Terrorism is the price of empire. If you do not wish to pay the price, you must give up the empire"  - Pat Buchanan, Where the Right Went Wrong
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EXCLUSIVE: Snowden reveals more US cyberspying details | South China Morning Post - 0 views

  • US spies are hacking into Chinese mobile phone companies to steal text messages and attacking the servers at Tsinghua University, Edward Snowden has told the Sunday Morning Post. The latest explosive revelations about US National Security Agency cybersnooping in Hong Kong and on the mainland are based on further scrutiny and clarification of information Snowden provided on June 12. The former technician for the US Central Intelligence Agency and contractor for the National Security Agency provided documents revealing attacks on computers over a four-year period.
  • The documents listed operational details of specific attacks on computers, including internet protocol (IP) addresses, dates of attacks and whether a computer was still being monitored remotely. The Sunday Morning Post can now reveal Snowden's claims that the NSA is: Extensive hacking of major telecommunication companies in China to access text messages   Sustained attacks on network backbones at Tsinghua University, China’s premier seat of learning   Hacking of computers at the Hong Kong headquarters of Pacnet, which owns one of the most extensive fibre optic submarine cable networks in the region
  • Pacnet, which recently signed major deals with the mainland's top mobile phone companies, owns more than 46,000 kilometres of fibre-optic cables. The cables connect its regional data centres across the Asia-Pacific region, including Hong Kong, the mainland, Japan, South Korea, Singapore and Taiwan. It also has offices in the US. Snowden claims that data from Chinese mobile phone companies has been compromised, with millions of private text messages mined by the NSA. Cybersecurity experts on the mainland have long feared mobile phone companies had fallen victim to back-door attacks because they were forced to go overseas to buy core technology for their networks. In recent years, those security concerns became more vocal and as a result domestic network equipment suppliers such as Huawai, Datang and ZTE started to close the technology gap, enabling the phone companies to reduce their reliance on foreign suppliers.
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  • As for the attacks at Tsinghua University, the leaked information points to the NSA hacking into the institute's servers as recently as January. Tsinghua is widely regarded as China's top education and research institute and carries out extensive work on next-generation web technologies. It is home to one of the mainland's six major network backbones, the China Education and Research Network.
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US Attempts to Shame Asia for "Caving to China" | New Eastern Outlook - 0 views

  • It is becoming clear that US influence – despite its “pivot toward Asia” – is waning across the Asia Pacific region. Washington has suffered geopolitical setbacks in virtually every nation in Asia Pacific, including those now led by regimes it has meticulously organized, funded, and backed for decades. It is also waning, however, among those nations considered long-time and crucial US allies. This includes Southeast Asia’s Thailand, whom the US repeatedly reminds the world has been Washington’s ally since the Cold War and America’s war in Vietnam, and allegedly, even before that. Washington’s Waning Influence is Based on Floundering Fundamentals   However, in reality, Thailand has incrementally dismantled American influence over it, and has diversified its trade and cooperation with a large variety of nations – including China – as a means of depending on ties with no single nation in particular. Thailand’s economic trade is focused primarily within Asia, with the majority of its imports and exports divided equally between China, Japan, and ASEAN, with the West collectively representing a smaller – though not insignificant – market. It is no coincidence that Thailand’s geopolitical ties thus reflect its economic ties around the world – revealing that economic and sociopolitical realities are driving intentional relations regardless of the vast array of “soft power” means at Washington’s disposal. A look at Thailand’s military inventories reveals a similar strategy of diversifying weapon acquisitions and partnerships as well as developing systems through indigenous industry. What used to be a military dominated by American hardware and military exercises, is transforming with the acquisition of Chinese tanks, European warplanes, Middle Eastern assault rifles, Russian helicopters, and Thai-made armored vehicles – as well as joint drills held with a variety of nations, including for the first time, China. A similar shift is occurring throughout the rest of Asia, with China naturally assuming a large share of regional cooperation due to its geographic, economic, and demographic size. http://journal-neo.org/2016/10/24/us-attempts-to-shame-asia-for-caving-to-china/
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Is Hillary Double-Talking on Trade Deals? - Consortiumnews - 0 views

  • Did perennial Clinton rainmaker and current Virginia Governor Terry McAuliffe let the cat out of the bag? The “cat” is the widely-held suspicion that Democratic presidential candidate Hillary Clinton isn’t really opposed to the Trans Pacific Partnership (TPP). The “bag” is the campaign narrative that frames her election year reversal on the controversial trade accord as the outcome of an honest re-examination of a deal that she once hailed as “the gold standard in trade agreements.” Just to add to the confusion, Hillary Clinton failed to declare her opposition to the TPP in her historic acceptance speech. Instead, she asked assembled Democrats to join her if they “believe that we should say ‘no’ to unfair trade deals” and “stand up to China.”
  • It was an understandable omission given the grievances of Bernie loyalists poised to pounce on her every misstep. By avoiding the minefield completely she disappointed union leaders and deferred the issue until she debates Donald Trump. Until then, she — and notable surrogates like economist Joseph Stiglitz — will try to convince a trade-weary public that she’s truly committed to renegotiating the increasingly unpopular deal. She’ll also be beating-back the ghost of trade deals past. United Auto Workers President Dennis Williams claims Hillary assured him during the primary that she’s also committed to reopening the North American Free Trade Agreement (NAFTA). Like the TPP, she was for it before she was against it. And like Hillary’s campaign promise to tweak NAFTA, McAuliffe suggested in an interview with Politico that – if she wins the White House – Clinton would make a few tweaks in the Trans Pacific Partnership trade deal and then support it. These caveats fit into a long pattern of trade policy triangulation that raises the question: Is this policy reversal truly a switch or just another bait and switch? There is good reason for the buyer to beware.
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The TPP is Dead. What Happens Next? | Global Research - Centre for Research on Globaliz... - 0 views

  • On Monday, the US president-elect Donald Trump announced that the US will pull out of the Trans-Pacific Partnership (TPP) trade pact on his first day in office (January 20). In a video message outlining his policy plans for the first 100 days in the Oval Office, Trump stated: “I am going to issue a notification of intent to withdraw from TPP, a potential disaster for our country. Instead, we will negotiate fair, bilateral trade deals that bring jobs and industry back on to American shores.” The Obama administration was trying hard to seek US congressional ratification this year but it abandoned efforts after the victory of Trump. The TPP faced stiff political opposition cutting across party lines and ideologies. Both the major presidential candidates expressed their opposition to TPP and avowed to reject it once elected. Trump was very vocal in his opposition to TPP as well as NAFTA throughout his campaign. Whereas Hillary Clinton flip-flopped on the TPP pact. While serving as Secretary of State, she had praised TPP as setting the “gold standard in trade agreements” but reversed her position during the presidential campaign due to tough primary challenge from TPP critic Bernie Sanders.
  • Japan is the only member-country which voted to ratify the TPP deal early this month. As per the rules laid out in the TPP, the agreement allows a two-year ratification period in which at least six original member-countries, representing 85 percent of the combined GDP of the grouping, should approve the text for the agreement to be implemented. The US accounts for nearly 60 percent of the grouping’s GDP. With the US announcing its withdrawal, the TPP agreement simply cannot enter into force even if all the remaining 11 member-countries ratify it. In simple terms, the TPP, in its present form, is effectively dead.
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Trump, Kissinger and Ma playing on a crowded chessboard | Asia Times - 0 views

  • And that brings us once again to Henry Kissinger, the putative dalang — puppet master — of Trump’s foreign policy. As leaked late last year in Germany’s Bild Zeitung newspaper, Kissinger has drafted a plan to officially recognize Crimea as part of Russia and lift the Obama administration’s economic sanctions.
  • The plan fits into Kissinger’s overall strategy — call it a traditional British Balance of Power, or Divide and Rule, approach — of breaking up the Eurasian front (Russia-China-Iran) that constitutes the real “threat” to what Mattis defines as the “established world order.” The strategy consists in seducing the alleged weaker top “threat” (Russia) away from the stronger (China), while keeping on antagonizing/harassing the third and weakest pole, Iran. Kissinger is certainly more sophisticated than predictable US Think Tankland in his attempt to dismember the Shanghai Cooperation Organization, one of key nodes of the Russia-China strategic partnership. The SCO has been on the go for a decade and a half now. Iran, an observer, will soon become a full member, as will India and Pakistan; and Turkey — after the failed coup against Erdogan — is being courted by Moscow. German analyst Peter Spengler adds a juicy teaser — if Kissinger’s “Metternichian approach would include some degree of ‘harmonization’ with Russia, how will a Trump presidency then manage to contain the re-engineered ally Germany?” After all, a key priority for sanctions-averse German industrialists is to vastly expand business with Russia.
  • Kissinger’s strategy essentially tweaks the early 1970s Trilateral Commission, largely advanced by his rival dalang Dr Zbigniew “Grand Chessboard” Brzezinski, according to which geopolitics is to be managed by North America, Western Europe and Japan.
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  • The US deep state plutocracy never sleeps. Admitting both Russia and China, linked by a strategic partnership, as equal stakeholders in the “established world order” is anathema; that would imply the end of US hegemony. And that’s where the top Western would-be dalangs diverge, as they look for the most efficient Divide and Rule opening. Kissinger privileges Russia; Dr Zbig privileges China, painting it as a threat to Russia. Meanwhile, Russian Eurasianists — in frontal opposition to the Atlanticists — visualize the US, China and Russia on an equal geopolitical footing. It will be fascinating to watch how the New Great Game develops in the Central Asian “stans”. That’s a privileged theater in which to see the Russia-China strategic partnership, or division of labor, in action: China goes no holds barred on investment — via One Belt, One Road, aka the New Silk Roads — while Russia remains paramount in politics and security.
  • The bottom line: Moscow feels no existential “threat” from Beijing because for China, Central Asia and the Russian Far East register essentially as economic/investment opportunities along the New Silk Roads.
  • Once again, Kissinger’s strategy will run into a solidified Russia-China strategic partnership — already manifested in Pipelineistan (multibillion-dollar oil and gas projects); security deals; the SCO; cooperation inside BRICS; exchange of cutting-edge military technology; and the progressive interlocking of the New Silk Roads and the Eurasian Economic Union. When the New Silk Roads hit the next level, by the start of the next decade, the Eurasian heartland, as well as the rimland, will be deeply immersed in a connectivity frenzy. Welcome to Mackinder and Spykman revisited — and there’s no “offer” Washington can come up with to make it go away.
  • Into this crucial juncture steps Jack Ma. The Trump-Ma meeting at Trump Tower was niskala disguised as sekala. The House That Ma Built — Alibaba — is no less than the New Great Wall, resisting the assault of behemoth Amazon.com in the ultimate commercial arena of the 21st century: e-commerce. Ma also happens to be very close to Chinese President Xi Jinping. Like an upgraded we-mean-business Deng Xiaoping, Ma proposed, on the record, the creation of 1 million US jobs. That’s an offer Trump cannot possibly refuse. And this after shadow US Secretary of State Jared Kushner had a Chateau Lafite Rothschild-inundated lunch with another Chinese tycoon, Anbang Insurance Group’s Wu Xiahoui, who married Deng’s niece and whose company owns the Waldorf Astoria hotel in Manhattan.
  • Ma’s business firepower should not be underestimated. Alibaba is involved in a massive project to modernize even rural China. He’s the face of Chinese business not only internally but globally. Xi Jinping knows this all too well — who better than Ma as China’s top business ambassador? This is not, as Japanese interests spin it, about the “death” of Made in China; it is about globalized China exporting business and jobs to the West. All of the above points to a very crowded chessboard. Trump will do business and clinch deals with China, while his deep state-tinged cabinet barks the usually explosive national security rhetoric, dalang Kissinger plots a Russia-China split, and Moscow-Beijing secretly concoct concerted moves. Place your bets on who will be the major partner in the Trump, Kissinger and Ma law firm.
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Turnbull: Potential for China to join TPP after US exit | Australia News | Al Jazeera - 0 views

  • Australia and New Zealand have said they hope to salvage the Trans-Pacific Partnership (TPP) by encouraging China and other Asian countries to sign up, after President Donald Trump formally pulled the US out of the huge trade deal. The agreement, the biggest trade deal in history, was signed in 2015 by 12 countries, which together account for 40 percent of the global economy.
  • Malcolm Turnbull, Australia's prime minister, said on Tuesday his government was in "active discussions" with other signatories - including Japan, New Zealand and Singapore - on how to salvage the agreement. "It is possible that US policy could change over time on this, as it has done on other trade deals," Turnbull told reporters in Canberra, adding that the nominee for US Secretary of State Rex Tillerson and other Republicans supported the TPP. "There is also the opportunity for the TPP to proceed without the United States," he added. "Certainly there is the potential for China to join the TPP." The agreement, which has not yet gone into effect, was seen as a counter to China's rising economic influence. 
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HTTPS Deployment Growing by Leaps and Bounds: 2016 in Review | Electronic Frontier Foun... - 0 views

  • This was a great year for adoption of HTTPS encryption for secure connections to websites. HTTPS is an essential technology for security and privacy on the Web, and we've long been asking sites to turn it on to protect their users from spying (and from censorship and tampering with site content). This year, lots of factors came together to make it happen, including ongoing news about surveillance, advances in Web server capacity, nudges from industry, government, and Web browsers, and the Let's Encrypt certificate authority. By some measures, more than half of page loads in Firefox and in Chrome are now secured with HTTPS—the first time this has ever happened in the Web's history. That's right: for the first time ever, most pages viewed on the Web were encrypted! (As another year-in-review post will discuss, browsers are also experimenting with and rolling out stronger encryption technologies to better protect those connections.)
  • Sites large and small took turned on HTTPS in 2016, often using certificates from the Let's Encrypt certificate authority (sometimes with EFF's Certbot software, or a range of other options). In just a single year of broad public availability, Let's Encrypt has now helped enable secure connections for over 21 million websites, most of which never had certificates before.
  • A sizeable part of the growth in HTTPS came from very large hosting providers that decided to make HTTPS a default for sites that they host, including OVH, Wordpress.com, Shopify, Tumblr, Squarespace, and many others. Sites they host, and visitors to those sites, can get a boost in security without having to do anything. (And we're getting ongoing benefits from providers like CloudFlare who made the switch in previous years.) A single hosting provider's decision can result in enabling encryption for hundreds of thousands or millions of customers; we hope others will take the plunge too! U.S. government sites also made significant progress adopting HTTPS this year, responding to the administration's guidance in support of HTTPS—a clear and practical explanation of why secure connections should be the default. A caveat: data from Google shows that use of HTTPS varies significantly from country to country, remaining especially uncommon in Japan. We've also heard that it's still uncommon across much of East and Southeast Asia. Next year, we'll have to find ways to bridge those gaps.
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US tested biological weapons in Japan's Okinawa in the 60s - report - RT News - 0 views

  • The American army conducted experiments with biological weapons aimed at destroying rice crops on the Japanese island of Okinawa in the 60s, Kyodo news agency reports. The alleged target of the tests was the China and Southeast Asia region. Citing classified US documents, Japanese news agency Kyodo said the US military carried out experiments on their sovereign territory between 1961 and 1962. At this time Japan’s southern island of Okinawa was still under post-WWII, US jurisdiction. The US did similar tests in Taiwan and the American mainland, notes Kyodo.
  • "Field tests for stem rust of wheat and rice blast disease were begun at several sites in the (US) Midwest and south and in Okinawa with partial success in the accumulation of useful data," wrote Kyodo, citing its documents.
    • Paul Merrell
       
      This is only the latest disclosure of prior outrageous and criminal government behavior that was enabled only by unjustifiable government secrecy. Secrecy defeats accountability and is thus fundamentally anti-democratic, granting the government license to misbehave. 
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