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Paul Merrell

Latin American Herald Tribune - Former Owners of Failed Ecuadorian Bank Sentenced in Ab... - 0 views

  • QUITO – Brothers Roberto and William Isaias, former owners of a bank at the center of a 1990s financial meltdown that cost Ecuadorian taxpayers more than $8 billion, were sentenced in absentia to eight years in prison for embezzlement.The two men have been living in the United States since 2000, when courts in Ecuador first began looking into the collapse of Filanbanco, where Roberto was president and William held the post of vice president.Quito has begun the process of seeking their extradition and Interpol issued a Red Notice for the Isaias brothers last year.The Ecuadorian National Court concluded, based on an audit by PricewaterhouseCoopers, that the brothers falsified Filanbanco’s financial statements for 1998.Filanbanco was one of 30 banks that passed into government receivership in 1998-1999 amid the worst financial crisis in Ecuador’s history. Bank clients lost millions of dollars and the government spent more than $8 billion to clean up the mess.Besides the Isaias brothers, the National Court sentenced six other former Filanbanco executives to jail terms ranging from three to eight years.Five other defendants were acquitted.
Paul Merrell

Obama Gave Up on Ukraine, Press Simply Ignored It Washington's Blog - 0 views

  • On Tuesday, May 12th, U.S. Secretary of State John Kerry was asked at a press conference in Sochi Russia, to respond to Ukrainian President Petro Poroshenko’s recent statements promising renewed war against Donbass, which were made first on April 30th, “The war will end when Ukraine regains Donbass and Crimea,” and which were repeated on May 11th, by his saying, “I have no doubt, we will free the [Donetsk] Airport, because it is our land.” In other words, Poroshenko had repeatedly made clear that he plans a third invasion of Donbass, and, ultimately, also to invade and retake Crimea. (The Western press, however, had not reported any of these threats that were being made by Poroshenko.) Kerry responded: “ I have not had a chance – I have not read the speech. I haven’t seen any context. I have simply heard about it in the course of today [which would be shocking if true]. But if indeed President Poroshenko is advocating an engagement in a forceful effort at this time, we would strongly urge him to think twice not to engage in that kind of activity, that that would put Minsk in serious jeopardy. And we would be very, very concerned about what the consequences of that kind of action at this time may be.”
  • None of this was reported by Western ‘news’ media. Even Russia’s own Sputnik News, which was Russia’s main English-language medium reporting on Kerry’s comment, ignored this shocking assertion by the U.S. Secretary of State contradicting the nominal leader of the Ukrainian Government that the U.S. itself had installed in February 2014.  The Obama Administration now had slammed Poroshenko down on the key issue of whether to resume the war against Ukraine’s former Donbass region, and also slammed him on whether Ukraine should invade Crimea, which is Russian territory and would therefore mean a war against the Russian armed forces. America’s stooge-regime in Kiev was here being publicly taken to the woodshed about the advisability of yet another Ukrainian invasion of Ukraine’s former southeastern breakaway regions, Donbass and, even Crimea. 
  • Western ‘news’ media were far worse than a botch; they were outright dishonest. Typical was BBC, which headlined on May 12th, “Ukraine Crisis: Kerry Has ‘Frank’ Meeting with Putin,” and their article said nothing whatsoever about Kerry’s shocking slam-down of his Ukrainian stooge. To that ‘news’ report was also appended an “Analysis: Bridget Kendall, BBC News, Sochi,” which simply blathered, and concluded, “There was no breakthrough on anything.” That statement was the exact opposite of the truth. The one good, and, really, brilliant, news-analysis on this important matter, was from the legendary specialist on “the Empire’s [Washington’s] War on Russia,” the anonymous blogger who goes by the name, “The Saker.” His was not really a news-report, because he, too, failed to quote Kerry’s pathbreaking and shocking statement. He didn’t even quote the insignificant squib that Sputnik itself had quoted from Kerry’s remarks. Instead, he merely paraphrased Kerry, which is far less reliable than a quotation, and also far less informative than the packed shocker that Kerry actually delivered. Saker’s paraphrase was far briefer than was Kerry’s statement which is quoted here; it was merely: “Kerry made a few rather interesting remarks, saying that the Minsk-2  Agreement (M2A) was the only way forward and that he would strongly caution Poroshenko against the idea of renewing military operations.” That’s all there was to it. So, The Saker failed to provide a news-report on Kerry’s shocker. But his news-analysis  of its significance was superb, and it’s extremely worth reading (it’s worth clicking onto the link which will now be provided on the article’s title). That analysis was dated May 13th, and it was bannered, “Yet Another Huge Diplomatic Victory for Russia.”  
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  • But also there was just a slice of real news in The Saker’s article, when he said, only in passing (as if it were insignificant, which it was not), “Then, there was the rather interesting behavior of [Victoria] Nuland, who was with Kerry’s delegation, she refused to speak to the press and left looking rather unhappy.” Nothing more than that, but that’s plenty. In other words: Nuland, the agent whom President Obama had placed in charge of arranging the February 2014 coup in Ukraine, and of selecting the leader of the junta that would be imposed upon Ukraine (“Yats” Yatsenyuk), and who told the U.S. Ambassador to Ukraine what to do and how to do it, was now exceedingly disturbed to find herself overridden at this late date in her Ukrainian escapade, publicly overridden by her own immediate boss, Secretary of State Kerry.  In other words: she is now sidelined. That’s important news, but The Saker there merely hinted at it, and only in passing. So, as a news-report, The Saker’s article was poor but perhaps the best around; but as a news-analysis, it was excellent, and by far the best.
  • Nuland now knows that she has lost, and that Obama has thrown in the towel on the original plan for Ukraine, which had been for an all-out military conquest of the region, Donbass, where the people had voted over 90% for the man whom Nuland’s team had overthrown on 22 February 2014, Viktor Yanukovych, and so Obama had wanted those people to be either killed or else expelled from Ukraine (so that they’d never again be able to vote in a Ukrainian national election and thus possibly restore a neutralist leadership of Ukraine, such as had existed under the man Obama deposed, Yanukovych). Consequently, clearly, now, Obama is on-board with the “Plan B” for Ukraine, which Francois Hollande and Angela Merkel had put into place, the Minsk II Agreement, which brought about the present ceasefire, which now has become clearly the utter (even accepted by Kerry) capitulation of Obama’s Plan A on Ukraine, which plan Nuland had been carrying out. Kerry’s public statement there was a public slap in the face to his own #2 official on Ukraine; and it could not have been asserted by him if he were not under Obama’s instruction that the previous plan, to exterminate or drive out all the residents of Donbass, was no longer worth trying, and that the Hollande-Merkel plan would be America’s fall-back position.
  • Obama’s message in this, through Kerry, to Ukraine’s President Poroshenko, and indirectly also to Ukraine’s Prime Minister Yatsenyuk (the leader whom Nuland herself had selected), is: we’ll back you only as long as you accept that you have failed our military expectations and that we will be stricter with you in the future regarding how you spend our military money. We’re getting in line now behind the Hollande-Merkel peace plan for Ukraine. Dmitriy Yarosh, and the other outright nazis who had been threatening to overthrow Poroshenko if he doesn’t renew the war against Donbass and seize Crimea; Dmitriy Yarosh, who was the man who had led the Ukrainian coup for the U.S., and whose thugs had dressed as Yanukovych’s security forces when gunning down both police and demonstrators in the February 2014 coup, in order for Yanukovych to become blamed for the bloodshed on that occasion; is now, in effect, being told: if you will try another coup, this time to overthrow our own stooges in Ukraine, then you’re finished, Mr. Yarosh. Don’t do it.
  • Merkel and Hollande thus won. Putin had decidedly won. Obama and the nazis he had empowered in Ukraine have now, clearly, been defeated. But the mess that Obama’s people have created in Ukraine by their coup and subsequent ethnic-cleansing to eliminate the residents of Donbass, will take decades, if ever, to repair. Western ‘news’ media can cover it all up, but they can’t change this reality, which, increasingly as time goes by, will expose the press’s failure to have even reported on this historically important U.S. coup in Ukraine and its ultimate failure. As a story about  the press, it is about yet another system-wide press-deceit upon the public, comparable to their ‘news coverage’ of ‘Saddam’s WMD,’ and other lies, in 2002 and 2003. 
Paul Merrell

Profiled From Radio to Porn, British Spies Track Web Users' Online Identities | Global ... - 0 views

  • One system builds profiles showing people’s web browsing histories. Another analyzes instant messenger communications, emails, Skype calls, text messages, cell phone locations, and social media interactions. Separate programs were built to keep tabs on “suspicious” Google searches and usage of Google Maps. The surveillance is underpinned by an opaque legal regime that has authorized GCHQ to sift through huge archives of metadata about the private phone calls, emails and Internet browsing logs of Brits, Americans, and any other citizens  all without a court order or judicial warrant.
  • The power of KARMA POLICE was illustrated in 2009, when GCHQ launched a top-secret operation to collect intelligence about people using the Internet to listen to radio shows. The agency used a sample of nearly 7 million metadata records, gathered over a period of three months, to observe the listening habits of more than 200,000 people across 185 countries, including the U.S., the U.K., Ireland, Canada, Mexico, Spain, the Netherlands, France, and Germany.
  • GCHQ’s documents indicate that the plans for KARMA POLICE were drawn up between 2007 and 2008. The system was designed to provide the agency with “either (a) a web browsing profile for every visible user on the Internet, or (b) a user profile for every visible website on the Internet.” The origin of the surveillance system’s name is not discussed in the documents. But KARMA POLICE is also the name of a popular song released in 1997 by the Grammy Award-winning British band Radiohead, suggesting the spies may have been fans. A verse repeated throughout the hit song includes the lyric, “This is what you’ll get, when you mess with us.”
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  • GCHQ vacuums up the website browsing histories using “probes” that tap into the international fiber-optic cables that transport Internet traffic across the world. A huge volume of the Internet data GCHQ collects flows directly into a massive repository named Black Hole, which is at the core of the agency’s online spying operations, storing raw logs of intercepted material before it has been subject to analysis. Black Hole contains data collected by GCHQ as part of bulk “unselected” surveillance, meaning it is not focused on particular “selected” targets and instead includes troves of data indiscriminately swept up about ordinary people’s online activities. Between August 2007 and March 2009, GCHQ documents say that Black Hole was used to store more than 1.1 trillion “events”  a term the agency uses to refer to metadata records  with about 10 billion new entries added every day. As of March 2009, the largest slice of data Black Hole held  41 percent  was about people’s Internet browsing histories. The rest included a combination of email and instant messenger records, details about search engine queries, information about social media activity, logs related to hacking operations, and data on people’s use of tools to browse the Internet anonymously.
  • Throughout this period, as smartphone sales started to boom, the frequency of people’s Internet use was steadily increasing. In tandem, British spies were working frantically to bolster their spying capabilities, with plans afoot to expand the size of Black Hole and other repositories to handle an avalanche of new data. By 2010, according to the documents, GCHQ was logging 30 billion metadata records per day. By 2012, collection had increased to 50 billion per day, and work was underway to double capacity to 100 billion. The agency was developing “unprecedented” techniques to perform what it called “population-scale” data mining, monitoring all communications across entire countries in an effort to detect patterns or behaviors deemed suspicious. It was creating what it saidwould be, by 2013, “the world’s biggest” surveillance engine “to run cyber operations and to access better, more valued data for customers to make a real world difference.” HERE WAS A SIMPLE AIM at the heart of the top-secret program: Record the website browsing habits of “every visible user on the Internet.” Before long, billions of digital records about ordinary people’s online activities were being stored every day. Among them were details cataloging visits to porn, social media and news websites, search engines, chat forums, and blogs.
  • The mass surveillance operation — code-named KARMA POLICE — was launched by British spies about seven years ago without any public debate or scrutiny. It was just one part of a giant global Internet spying apparatus built by the United Kingdom’s electronic eavesdropping agency, Government Communications Headquarters, or GCHQ. The revelations about the scope of the British agency’s surveillance are contained in documents obtained by The Intercept from National Security Agency whistleblower Edward Snowden. Previous reports based on the leaked files have exposed how GCHQ taps into Internet cables to monitor communications on a vast scale, but many details about what happens to the data after it has been vacuumed up have remained unclear.
Paul Merrell

The Honduran Coup's Ugly Aftermath | Consortiumnews - 0 views

  • As Secretary of State in 2009, Hillary Clinton helped a right-wing coup in Honduras remove an elected left-of-center president, setting back the cause of democracy and enabling corrupt and drug-tainted forces to tighten their grip on the poverty-stricken country, as Jonathan Marshall explains.
  • Bowing to pressure from conservative Republicans in Congress, Secretary of State Hillary Clinton refused to condemn the ouster of leftist President Manuel Zelaya in 2009. By her own admission, she began plotting within days to prevent him from returning to office.Her recently released emails show that she sought help from a pro-coup lobbyist for Honduran business interests to establish communications with the new military-backed president. She also approved the continuation of U.S. aid to the illegitimate new regime, blocked demands by the Organization of American States for Zelaya’s return, and accepted subsequent presidential elections that were condemned by most international observers as unfair and marred by violent intimidation.
  • In 2011, President Obama officially welcomed Honduras’s dubious new president to the White House and praised his “strong commitment to democracy.” (His wife is the target of the shoe purchase investigation noted above.)A year later, two leading human rights organizations reported that more than 100 political killings had occurred since the coup, accompanied by “death threats against activists, lawyers, journalists, trade unionists, and campesinos, as well as attempted killings, torture, sexual violence, arbitrary arrests and detentions.”The coup represented a disastrous step backward for Honduran society as well as its politics. University of California historian Dana Frank observed that “A vicious drug culture already existed before the coup, along with gangs and corrupt officials. But the thoroughgoing criminality of the coup regime opened the door for it to flourish on an unprecedented scale.
Paul Merrell

Greek Voters Return Alexis Tsipras to Power in Snap Elections | TIME - 0 views

  • Despite unhappiness with his capitulation to European creditors, Tsipras remains in power after snap elections It was a “victory of the people” said Greek Prime Minister Alexis Tsipras as he was swept back to power following a snap general election on Sunday. Despite his failure to rid Greece of the troika as he’d once promised; and instead, dragging the country into a yet another austerity program, Tsipras told a band of over 2,000 Syriza loyalists near Syntagma Square on Sunday night that “justice had been done.”
  • In comparison to January’s lightning victory for Syriza, and the defiance and righteousness that emerged during the bailout referendum held n July, celebrations were relatively low-key. And no surprise—the government has a mountain of harsh policies to implement, including full reassessment of the welfare system with savings worth 0.5 per cent of GDP, reconstruction of a broken tax collection system and full liberalization of the energy market. Tsipras told the audience that starting on Monday morning he will “fight corruption”—a key strategy plank during the election campaign. Tsipiras lost of some of his strongest comrades in the run up to the election, including the former president of the parliament, Zoe Konstantopoulou who joined several other splitters from Sryiza in a new party called Popular Unity. They were angry about what they saw as Tsipiras’ capitulation to Germany and other creditor nations. But the Prime Minister’s legions of fans remain undeniably behind him. “Tsipras is strong in his game; he’s playing chess and we’re following him”, said 32-year-old Ugur from Athens. “He is a realist, and a leftist; he had to sign the memorandum because we were on the edge and were going to fall over.”
  • “I’m very happy with the result—Syriza is the only party that will support the poor people and workers rights; he’s one of the best politicians to renegotiate the memorandum,” said 50-year-old Kostas Dianis. Although a former communist, some critics say Tsipras can no longer claim to represent the far left; not after his capitulation in Brussels earlier this summer when he agreed to a third bailout worth over $95 billion based on the demands of European creditors. “Tsipras is an agent for capitalism; he is not from the left; he is part of the system, and will continue the system, rather than changing it”, said 32-year-old Yannis; a taxi driver who voted for Syriza in January, but this time voted for the Communist party because “they’re the only ones that say what they mean.” And although Tsipras was unable to free Greece from austerity, as he had initially promised, the alternative left—the MP’s that split from Tsipras earlier this summer, provided few viable alternatives to Greek voters.
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  • Though she remains personally popular, the strident Zoe Konstantopoulou didn’t win back her seat after Popular Unity failed to reach the 3 per cent threshold. “The mandate of the people on the 5th of July was a clear ‘No’ to the extortion, the violation of human rights and ‘No’ to austerity”, she told TIME in an interview. Many Greek voters may well have agreed with Konstantopoulou, but they were still willing to give Tsipras a chance. “I voted for Tsipras because the others are worse and they got us into this mess” said 43 year old Elaney Depoli. “People in Greece are depressed from 5 years of austerity; this is the best opportunity to get better results. He signed the memorandum to save Greece, and he is saving Greece.”
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    Sounds like no Grexit before the Greek far left reorganizes in a new party separate from Syrisa. And it may be the Communist Party that leads Greece out from under the tyranny of the Eurozone. That would have an anti-communists in the U.S. State Dept. in a true tizzy and might result in NATO intervention. 
Paul Merrell

US's Saudi Oil Deal from Win-Win to Mega-Loose | nsnbc international - 0 views

  • Who would’ve thought it would come to this? Certainly not the Obama Administration, and their brilliant geo-political think-tank neo-conservative strategists. John Kerry’s brilliant “win-win” proposal of last September during his September 11 Jeddah meeting with ailing Saudi King Abdullah was simple: Do a rerun of the highly successful State Department-Saudi deal in 1986 when Washington persuaded the Saudis to flood the world market at a time of over-supply in order to collapse oil prices worldwide, a kind of “oil shock in reverse.” In 1986 was successful in helping to break the back of a faltering Soviet Union highly dependent on dollar oil export revenues for maintaining its grip on power. So, though it was not made public, Kerry and Abdullah agreed on September 11, 2014 that the Saudis would use their oil muscle to bring Putin’s Russia to their knees today.
  • It seemed brilliant at the time no doubt. On the following day, 12 September 2014, the US Treasury’s aptly-named Office of Terrorism and Financial Intelligence, headed by Treasury Under-Secretary David S. Cohen, announced new sanctions against Russia’s energy giants Gazprom, Gazprom Neft, Lukoil, Surgutneftgas and Rosneft. It forbid US oil companies to participate with the Russian companies in joint ventures for oil or gas offshore or in the Arctic. Then, just as the ruble was rapidly falling and Russian major corporations were scrambling for dollars for their year-end settlements, a collapse of world oil prices would end Putin’s reign. That was clearly the thinking of the hollowed-out souls who pass for statesmen in Washington today. Victoria Nuland was jubilant, praising the precision new financial warfare weapon at David Cohen’s Treasury financial terrorism unit. In July, 2014 West Texas Intermediate, the benchmark price for US domestic oil pricing, traded at $101 a barrel. The shale oil bonanza was booming, making the US into a major oil player for the first time since the 1970’s. When WTI hit $46 at the beginning of January this year, suddenly things looked different. Washington realized they had shot themselves in the foot.
  • They realized that the over-indebted US shale oil industry was about to collapse under the falling oil price. Behind the scenes Washington and Wall Street colluded to artificially stabilize what then was an impending chain-reaction bankruptcy collapse in the US shale oil industry. As a result oil prices began a slow rise, hitting $53 in February. The Wall Street and Washington propaganda mills began talking about the end of falling oil prices. By May prices had crept up to $62 and almost everyone was convinced oil recovery was in process. How wrong they were.
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  • Since that September 11 Kerry-Abdullah meeting (curious date to pick, given the climate of suspicion that the Bush family is covering up involvement of the Saudis in or around the events of September 11, 2001), the Saudis have a new ageing King, Absolute Monarch and Custodian of the Two Holy Mosques, King Salman, replacing the since deceased old ageing King, Abdullah. However, the Oil Minister remains unchanged—79-year-old Ali al-Naimi. It was al-Naimi who reportedly saw the golden opportunity in the Kerry proposal to use the chance to at the same time kill off the growing market challenge from the rising output of the unconventional USA shale oil industry. Al-Naimi has said repeatedly that he is determined to eliminate the US shale oil “disturbance” to Saudi domination of world oil markets. Not only are the Saudis unhappy with the US shale oil intrusion on their oily Kingdom. They are more than upset with the recent deal the Obama Administration made with Iran that will likely lead in several months to lifting Iran economic sanctions. In fact the Saudis are beside themselves with rage against Washington, so much so that they have openly admitted an alliance with arch foe, Israel, to combat what they see as the Iran growing dominance in the region—in Syria, in Lebanon, in Iraq.
  • This has all added up to an iron Saudi determination, aided by close Gulf Arab allies, to further crash oil prices until the expected wave of shale oil company bankruptcies—that was halted in January by Washington and Wall Street manipulations—finishes off the US shale oil competition. That day may come soon, but with unintended consequences for the entire global financial system at a time such consequences can ill be afforded. According to a recent report by Wall Street bank, Morgan Stanley, a major player in crude oil markets, OPEC oil producers have been aggressively increasing oil supply on the already glutted world market with no hint of a letup. In its report Morgan Stanley noted with visible alarm, “OPEC has added 1.5 million barrels/day to global supply in the last four months alone…the oil market is currently 800,000 barrels/day oversupplied. This suggests that the current oversupply in the oil market is fully due to OPEC’s production increase since February alone.” The Wall Street bank report adds the disconcerting note, “We anticipated that OPEC would not cut, but we didn’t foresee such a sharp increase.” In short, Washington has completely lost its strategic leverage over Saudi Arabia, a Kingdom that had been considered a Washington vassal ever since FDR’s deal to bring US oil majors in on an exclusive basis in 1945.
  • That breakdown in US-Saudi communication adds a new dimension to the recent June 18 high-level visit to St. Petersburg by Muhammad bin Salman, the Saudi Deputy Crown Prince and Defense Minister and son of King Salman, to meet President Vladimir Putin. The meeting was carefully prepared by both sides as the two discussed up to $10 billion of trade deals including Russian construction of peaceful nuclear power reactors in the Kingdom and supplying of advanced Russian military equipment and Saudi investment in Russia in agriculture, medicine, logistics, retail and real estate. Saudi Arabia today is the world’s largest oil producer and Russia a close second. A Saudi-Russian alliance on whatever level was hardly in the strategy book of the Washington State Department planners.…Oh shit! Now that OPEC oil glut the Saudis have created has cracked the shaky US effort to push oil prices back up. The price fall is being further fueled by fears that the Iran deal will add even more to the glut, and that the world’s second largest oil importer, China, may cut back imports or at least not increase them as their economy slows down. The oil market time bomb detonated in the last week of June. The US price of WTI oil went from $60 a barrel then, a level at which at least many shale oil producers can stay afloat a bit longer, to $49 on July 29, a drop of more than 18% in four weeks, tendency down. Morgan Stanley sounded loud alarm bells, stating that if the trend of recent weeks continues, “this downturn would be more severe than that in 1986. As there was no sharp downturn in the 15 years before that, the current downturn could be the worst of the last 45+ years. If this were to be the case, there would be nothing in our experience that would be a guide to the next phases of this cycle…In fact, there may be nothing in analyzable history.”
  • October is the next key point for bank decisions to roll-over US shale company loans or to keep extending credit on the (until now) hope that prices will slowly recover. If as strongly hinted, the Federal Reserve hikes US interest rates in September for the first time in the eight years since the global financial crisis erupted in the US real estate market in 2007, the highly-indebted US shale oil producers face disaster of a new scale. Until the past few weeks the volume of US shale oil production has remained at the maximum as shale producers desperately try to maximize cash flow, ironically, laying the seeds of the oil glut globally that will be their demise. The reason US shale oil companies have been able to continue in business since last November and not declare bankruptcy is the ongoing Federal Reserve zero interest rate policy that leads banks and other investors to look for higher interest rates in the so-called “High Yield” bond market. Back in the 1980’s when they were first created by Michael Millken and his fraudsters at Drexel Burnham Lambert, Wall Street appropriately called them “junk bonds” because when times got bad, like now for Shale companies, they turned into junk. A recent UBS bank report states, “the overall High-Yield market has doubled in size; sectors that witnessed more buoyant issuance in recent years, like energy and metals mining, have seen debt outstanding triple or quadruple.”
  • Assuming that the most recent downturn in WTI oil prices continues week after week into October, there well could be a panic run to sell billions of dollars of those High-Yield, high-risk junk bonds. As one investment analyst notes, “when the retail crowd finally does head for the exits en masse, fund managers will be forced to come face to face with illiquid secondary corporate credit markets where a lack of market depth…has the potential to spark a fire sale.” The problem is that this time, unlike in 2008, the Federal Reserve has no room to act. Interest rates are already near zero and the Fed has bought trillions of dollars of bank bad debt to prevent a chain-reaction US bank panic. One option that is not being discussed at all in Washington would be for Congress to repeal the disastrous 1913 Federal Reserve Act that gave control of our nation’s money to a gang of private bankers, and to create a public National Bank, owned completely by the United States Government, that could issue credit and sell Federal debt without the intermediaries of corrupt Wall Street bankers as the Constitution intended. At the same time they could completely nationalize the six or seven “Too Big To Fail” banks behind the entire financial mess that is destroying the foundations of the United States and by extension of the role of the dollar as world reserve currency, of most of the world.
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    I give a lot of credibility to this article's author when it comes to matters involving the oil market. Remember when reading that the only thing propping up the U.S. dollar is the Saudi (later extended to all OPEC nations) insistence that they be paid for their oil and natural gas in U.S. dollars, which creates artificial demand for the dollar globally. If the Gulf Coast States begin accepting payment in rubles or yuan, it is curtains for the U.S. dollar in global markets.  
Gary Edwards

Empire of Debt Book Review | Silver Monthly - The Silver Investor's Resource - 2 views

  • America’s delusion is this: debt doesn’t matter, and “the rest of the world will take American IOUs forever.”
  • It’s a delusion that may well signal the end of the American financial system.
  • There’s only thing wrong with the American Empire. “Instead of getting paid for providing protection, the United States is on the receiving end of loans from its tributary states and trading partners.” In other words, instead of functioning as a proper empire, which means making a profit, America malfunctions as an Empire of Debt.
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  • The authors suggest that America has sold its birthright to China for a mess of pottage. They point out that “consumer spending is 71% of the U.S. economy. Current U.S. debt is about $37 trillion. The total value of all assets in America is only about $50 trillion.”
  • there are three ways for America to reduce its debt. The U.S. dollar can be devalued. The dollar can be made less valuable because of inflation. Or the debt may be forsaken.
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    Empire of Debt was published in 2006. It stated bluntly that the housing market occupied the center of an inflated bubble. The authors asserted the bubble would pop, leaving a sticky residue everywhere. They were right. The authors stated that Alan Greenspan's policies were detrimental to the U.S. economy. They were right. Empire of Debt not only identified the problems, but it provided a solution. Invest in gold or the Japanese yen. It would appear that once again they were right. The yen is strong and gold has made a phenomenal run, selling for over $1000 per ounce.
Gary Edwards

AEI - The Error at the Heart of the Dodd-Frank Act - 0 views

  • The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers.
  • This is evident in the statements of officials and the principal elements of the act, which would tighten the regulation of large financial institutions to prevent their failing, and establish an "orderly resolution" system outside of bankruptcy if they do.
  • The financial crisis, however, was caused by the mortgage meltdown, a sudden and sharp decline in housing and mortgage values as a massive housing bubble collapsed in 2007. This scenario is known to scholars as a "common shock"—a sudden decline in the
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  • 27 million loans—were subprime or otherwise weak and risky loans.
  • The reason for this was the US government's housing policy, which—in the early 1990s—began to require that government agencies and others regulated or controlled by government reduce their mortgage underwriting standards so borrowers who had not previously had access to mortgage credit would be able to buy homes. The government-sponsored enterprises Fannie Mae and Freddie Mac, the Federal Housing Administration, and banks and savings and loan associations (S&Ls) subject to the Community Reinvestment Act were all required to increase their acquisition of loans to homebuyers at or below the median income in their communities. Often, government policies required Fannie, Freddie, and the others to acquire loans to borrowers at or below 80 percent, and in some cases 60 percent, of median income.
  • Sometimes it is argued that the Troubled Asset Relief Program (TARP) prevented more failures. That seems highly unlikely. The first funds were made available under TARP on October 28, 2008, about six weeks after the panic following Lehman's failure. By that time, any firm that had been mortally wounded by Lehman's collapse would have collapsed itself. Moreover, most of the TARP funds were quickly repaid by the largest institutions, and many of the smaller ones, only eight months later, in mid-June 2009. This is strong ¬evidence that the funds were not needed to cover losses coming from the Lehman bankruptcy. If there were such losses, they would still have been embedded in the balance sheets of those institutions. If the funds were needed at all—and many of the institutions took them reluctantly and under government pressure—it was to restore investor confidence that the recipients were not so badly affected by the common shock of the decline in housing and mortgage values that they could not fund orderly withdrawals, if necessary. However, even if we assume that TARP funds prevented the failure of some large financial institutions, it seems clear that the underlying cause of each firm's weakness was the decline in the value of its MBS holdings, and not any losses suffered as a result of Lehman's bankruptcy.
  • This analysis leads to the following conclusion. Without a common shock, the failure of a single Lehman-like firm is highly unlikely to cause a financial crisis. This conclusion is buttressed by the fact that in 1990 the securities firm Drexel Burnham Lambert—then, like Lehman, the fourth largest securities firm in the United States—was allowed to declare bankruptcy without any adverse consequences for the market in general. At the time, other financial institutions were generally healthy, and Drexel was not brought down by the failure of a widely held class of assets. On the other hand, in the presence of a common shock, the orderly resolution of one or a few Lehman-like financial institutions will not prevent a financial crisis precipitated by a severe common shock.
  • In effect, by giving the government the power to resolve any financial firm it believes to be failing, the act has added a whole new policy objective for the resolution of failing firms. Before Dodd-Frank, insolvency law embodied two basic policies—retain the going concern value of the firm and provide a mechanism by which creditors could realize on the assets of an insolvent firm that cannot be saved.
  • DFA will have important adverse effects on ¬insolvency law.
  •  
    The underlying assumption of the Dodd-Frank Act (DFA) is that the 2008 financial crisis was caused by the disorderly bankruptcy of Lehman Brothers. This is evident in the statements of officials and the principal elements of the act, which would tighten the regulation of large financial institutions to prevent their failing, and establish an "orderly resolution" system outside of bankruptcy if they do. The financial crisis, however, was caused by the mortgage meltdown, a sudden and sharp decline in housing and mortgage values as a massive housing bubble collapsed in 2007. This scenario is known to scholars as a "common shock"-a sudden decline in the value of a widely held asset-which causes instability or insolvency among many financial institutions. In this light, the principal elements of Dodd-Frank turn out to be useless as a defense against a future crisis. Lehman's bankruptcy shows that in the absence of a common shock that weakens all or most financial institutions, the bankruptcy of one or a few firms would not cause a crisis; on the other hand, given a similarly severe common shock in the future, subjecting a few financial institutions to the act's orderly resolution process will not prevent a crisis. Apart from its likely ineffectiveness, moreover, the orderly resolution process in the act impairs the current insolvency system and will raise the cost of credit for all financial institutions. 
Gary Edwards

American Thinker: Whose Mess? - 0 views

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    Economic comparison that describes the prosperity differences between a Republican led congress and a Democratic controlled congress. Excerpt: If you want to give Bill Clinton credit for economic results during his terms, you have to link those results to his policies.  If you want to give him credit for those policies, you must admit that they were virtually all in line with Republican rhetoric and antithetical to modern liberalism. But here's what you can't do and remain intellectually honest:  praise Clinton and damn Bush, and then encourage Obama to do the exact opposite of what Clinton did and to add multiple trillions of dollars to Bush's spending and deficit levels. Conservatives like me have always encouraged tax rate cuts, spending cuts, free trade and eliminating government programs like welfare and the byzantine farm program.  Reagan did what he could (with a Democrat-controlled House the entire time), and the economy grew 3.5% annually over his eight years.  Clinton did these things as well (with Republicans controlling both houses of Congress his last six years), and the economy grew 3.8% annually over his eight years. This is not hard: cut taxes, cut spending, cut programs.  Oh, and elect Republicans to the Senate.  At least that's what the facts say.
Paul Merrell

The US's Vicious Colonial War - LewRockwell.com - 0 views

  • The last British soldiers were airlifted out of Afghanistan last week, marking the sorry end of Britain’s fourth failed invasion of Afghanistan. With them went the last detachment of US Marines in Helmand. Well has Afghanistan earned its title, “Graveyard of Empires.” To be more precise, this honor belongs to Afghanistan’s Pashtun (or Pathan) mountain tribes, who bend their knees for no man and take pride in war.
  • The US garrison in Kabul will continue to make Afghanistan safe for opium, which is the base for heroin. Americans have simply turned a blind eye to their ownership if the world’s top producer of heroin. As Washington orates about the so-called War on Drugs, Afghan opium production rose in 2013 from $2 billion to $3 billion. The UN says over 500,000 acres of land in Afghanistan are now devoted to the opium poppy – right under the eyes of the US garrison. While US-installed rulers in Kabul pay lip service to opium eradication, the rural warlords who support them, and receive stipends from CIA, continue to grow rich on the opium trade. Trying to blame Taliban for the scourge of opium is dishonest: when Taliban was in power it eradicated almost all of the nation’s opium production, reported he UN Drug Agency, except in the region controlled by the Communist Northern Alliance – which today shares power in Kabul. When the full history of the Afghan war is finally written, CIA’s involvement in that nation’s drug trade will become a notorious episode. French intelligence became deeply involved in the Laotian opium trade to pay its Lao mercenaries. The US was up to its ears with its Contra allies in the Central American cocaine trade.
  • Any native “disturbance” would be bombed and strafed by the RAF. In the 1920’s, Winston Churchill authorized RAF to use poison gas bombs against restive Pashtun and Kurdish tribesmen. Ironically, seven decades later I discovered British scientists who had been sent by HM government to Iraq to build germ weapons for Saddam Hussein to use against Iran. Similarly, the “Pax Americana” will be enforced by US airpower based at Bagram. US warplanes flying from Bagram, Qatar, and aircraft carriers on 24 hour call have been the only force keeping the Pashtun movement Taliban at bay. Without intense employment of US air power, western occupation forces, like the Imperial British armies before them, would have been driven from Afghanistan. Without US air power, garrison troops and large numbers of “civilian contractors” and old-fashioned mercenaries the Kabul puppet regime would soon be swept away. Afghanistan’s government army is likely to collapse as quickly as Iraq’s did before ISIS. Most of southern Afghanistan would declare for Taliban which, however harsh, is the nation’s only authentic political movement apart from the Tajik and Uzbek Communists in the north.
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  • The old imperialists are gone, but the occupation of Afghanistan continues. The new regime in Kabul just installed by Washington to replace uncooperative former ally Hamid Karzai, rushed to sign an “agreement” allowing the United States to keep some 10,000 soldiers in Afghanistan for years. This garrison will be exempt from all Afghan laws. However, there’s much more to this arrangement. The US combat troops, tactfully labeled “trainers” or “counter-terrorist forces,” are too few in number to dominate all Afghanistan. Their task is to defend Kabul’s sock puppet government from its own people and to defend the all-important US Bagram airbase. Washington clearly plans to continue ruling Afghanistan and Iraq the same way that the British Empire did. Small numbers of British troops garrisoned the capital; white officers led the native mercenary army. But Britain’s real power was exercised by RAF units based in Iraq and Northwest Frontier Province.
  • Now, US intelligence has besmirched its name once again aiding and abetting Afghan drug lords so as to supposedly wage war on “terrorists.” In dirt-poor Afghanistan, there are only two sources of income: money from Washington, and from narcotics. The collusion of senior members of government, military and police is necessary to export tons of opium to either Pakistan, Central Asia or Russia – where morphine addiction is now a major epidemic. Adding to this shameful record, the US Congressional auditor for Special Reconstruction of Afghanistan just reported that much of the $104 billion appropriated for Afghan “reconstruction” has to no surprise been wasted or stolen. Some of it has been used to irrigate opium poppy fields. Spare parts are unavailable for Russian helicopters bought by the US for use in battling Taliban and supposed opium fighting. Why? Because the US-imposed trade sanctions on Russia bars the US from buying the spare part. Catch-22.
  • By now, the longest war in US history has cost some $1 trillion, maybe more. No one can properly account for the billions and billions of US dollars flown into Afghanistan and Iraq and dished out to the natives – or the numbers of Afghans killed. For Washington’s allies, like Canada and Britain, the war has been a total waste of lives and treasure. For Canada, 158 dead for nothing; for Britain 453. Forget all the phony claims about “mission” and “nation building.” This has been yet another dirty little colonial war that is better forgotten – and never repeated. So this war will simmer on, at least until Washington finds some face-saving way out of the mess in the Hindu Kush. If the US was wise, it would simply quit Afghanistan. But power, like opium, is highly addictive. So America’s longest war will drag on and on.
Paul Merrell

For Turkey and U.S., at odds over Syria, a 60-year alliance shows signs of crumbling - ... - 0 views

  • The increasingly hostile divergence of views between Turkey and the United States over Syria is testing the durability of their 60-year alliance, to the point where some are starting to question whether the two countries still can be considered allies at all. Turkey’s refusal to allow the United States to use its bases to launch attacks against the Islamic State, quarrels over how to manage the battle raging in the Syrian border town of Kobane and the harsh tone of the anti-American rhetoric used by top Turkish officials to denounce U.S. policy have served to illuminate the vast gulf that divides the two nations as they scramble to address the menace posed by the extremists. Whether the Islamic State even is the chief threat confronting the region is disputed, with Washington and Ankara publicly airing their differences through a fog of sniping, insults and recrimination over who is to blame for the mess the Middle East has become.
  • At stake is a six-decade-old relationship forged during the Cold War and now endowed with a different but equally vital strategic dimension. Turkey is positioned on the front line of the war against the Islamic State, controlling a 780-mile border with Iraq and Syria. Without Turkey’s cooperation, no U.S. policy to bring stability to the region can succeed, analysts and officials on both sides say. “If Turkey is not an ally, then we and Turkey are in trouble,” said Francis Ricciardone, who served as the U.S. ambassador to Turkey until the summer. “It is probably the most important ally.”
Paul Merrell

Obama Knew Arming Rebels Was Useless, But Did It Anyway - The Intercept - 0 views

  • What’s worse: Launching a disastrous military campaign under false pretenses to achieve goals you wrongly believe are attainable? Or launching a disastrous military campaign you know is doomed in order to help your party win an election? I ask in light of today’s New York Times story about how President Obama asked the CIA a while back whether arming rebel forces – pretty much the agency’s signature strategy — had ever worked in the past. He was told that it almost never has. But then in June, once the political pressure for intervention in Syria got too great, he did just that — sending weapons to rebels fighting the Syrian military. Yes: He knew better, but he did it anyway.
  • Obama’s biggest such decision killed a lot of American servicemembers who he sent to fight and die in Afghanistan. During his 2008 presidential campaign, which was marked by his opposition to the war in Iraq, then-Senator Obama’s vow to re-engage in Afghanistan was seen by many as a ploy to avoid being cast as a dove, first by Hillary Clinton and then by John McCain. What’s not clear to this day is precisely when Obama knew better; when he realized that the war in Afghanistan was hopeless. By inauguration time, that conclusion seemed fairly obvious to many foreign-policy watchers. So why not him?
  • But one month into his presidency, Obama announced he was sending more troops there – 30,000, as it would turn out. Despite the obvious lack of what he himself had frequently described as a must — an exit strategy – he increased the number of troops in Afghanistan by 50 percent. And the monthly death tolls shot up. Over 1,600 American servicemembers  have died in Afghanistan since the summer of 2009 — well over half of all the dead during the entire war – along with countless Afghans. There were public signs in November 2009 that Obama was “rethinking” his plan. David Sanger, in his book Confront and Conceal, wrote that Obama actually began a “reassessment of whether the war was as necessary as he first believed” even earlier, in the summer of 2009. (At an off-the-record June 2009 dinner with historians the “main point” his guests tried to make was “that pursuit of war in Afghanistan would be for him what Vietnam was to Lyndon Johnson,” Garry Wills wrote  later.)
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  • And according to Sanger’s murky sources, the recognition that things were hopeless came at the latest by June 2011. But it wasn’t for three more long years —  until this May — that Obama finally announced U.S. troops would be out of Afghanistan by the end of 2016. Which brings us to the question I raised at the top. George W. Bush’s decision to go to war in Iraq sent vastly more people to their deaths than anything Obama did – nearly 5,000 U.S. servicemembers, plus over 100,000 Iraqi civilians – and left as many as half a million U.S. servicemembers wounded or otherwise permanently damaged
  • (Obama’s latest doomed-to-fail show of force explicitly keeps U.S. servicemembers out of harm’s way. ) But Bush at least thought the war in Iraq would do some good. He was incredibly wrong, mind you. He was both delusional — and actively manipulated by neocons like Dick Cheney (who believe the application of American power is always and inherently a good thing). He intentionally misled the public about his real reasons for going to war (the terrorist attacks of 9/11 were an excuse, not a reason; there were no Iraqi weapons of mass destruction). His eventual goal was both unachievable (a sudden flowering of pro-Western democracy in the Middle East) and perverse (American control of Iraqi oil fields). His methods (firing all the Baathists; trying to install a corrupt puppet) were spectacularly misguided. Much of the rest of his presidency was consumed with sectarian warfare in Iraq and new lies to  cover up the old ones at home. And the end result was a massive human rights catastrophe, including torture of U.S. detainees, a refugee crisis, mass casualties, social disorder and – finally – the Islamic State.
  • Bush also certainly saw – and exploited — the political upside of being a war president. But he didn’t let loose the dogs of war simply because his political operatives told him it would poll well.
Paul Merrell

2015 Will Be All About Iran, China and Russia / Sputnik International - 0 views

  • Fasten your seatbelts; 2015 will be a whirlwind pitting China, Russia and Iran against what I have described as the Empire of Chaos.
  • Considering that this swift move was conceived as a checkmate, Moscow’s defensive strategy was not that bad. On the key energy front, the problem remains the West’s – not Russia’s. If the EU does not buy what Gazprom has to offer, it will collapse. Moscow’s key mistake was to allow Russia's domestic industry to be financed by external, dollar-denominated debt. Talk about a monster debt trap  which can be easily manipulated by the West. The first step for Moscow should be to closely supervise its banks. Russian companies should borrow domestically and move to sell their assets abroad. Moscow should also consider implementing a system of currency controls so the basic interest rate can be brought down quickly. And don’t forget that Russia can always deploy a moratorium on debt and interest, affecting over $600 billion. That would shake the entire world's banking system to the core. Talk about an undisguised “message” forcing the US/EU economic warfare to dissolve.
  • Global oil prices are bound to remain low. All bets are off on whether a nuclear deal will be reached by this summer between Iran and the P5+1. If sanctions (actually economic war) against Iran remain and continue to seriously hurt its economy, Tehran’s reaction will be firm, and will include even more integration with Asia, not the West.
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  • Now let’s take a look at Russian fundamentals. Russia’s government debt totals only 13.4% of its GDP. Its budget deficit in relation to GDP is only 0.5%.  If we assume a US GDP of $16.8 trillion (the figure for 2013), the US budget deficit totals 4% of GDP, versus 0.5% for Russia. The Fed is essentially a private corporation owned by regional US private banks, although it passes itself off as a state institution. US publicly held debt is equal to a whopping 74% of GDP in fiscal year 2014. Russia’s is only 13.4%. The declaration of economic war by the US and EU on Russia – via the run on the ruble and the oil derivative attack – was essentially a derivatives racket. Derivatives – in theory – may be multiplied to infinity. Derivative operators attacked both the ruble and oil prices in order to destroy the Russian economy. The problem is, the Russian economy is more soundly financed than America's.
  • So yes – it will be all about further moves towards the integration of Eurasia as the US is progressively squeezed out of Eurasia. We will see a complex geostrategic interplay progressively undermining the hegemony of the US dollar as a reserve currency and, most of all, the petrodollar. For all the immense challenges the Chinese face, all over Beijing it's easy to detect unmistakable signs of a self-assured, self-confident, fully emerged commercial superpower. President Xi Jinping and the current leadership will keep investing heavily in the urbanization drive and the fight against corruption, including at the highest levels of the Chinese Communist Party (CCP). Internationally, the Chinese will accelerate their overwhelming push for new 'Silk Roads' – both overland and maritime – which will underpin the long-term Chinese master strategy of unifying Eurasia with trade and commerce.
  • Russia does not need to import any raw materials. Russia can easily reverse-engineer virtually any imported technology if it needs to. Most of all, Russia can generate — from the sale of raw materials – enough credit in US dollars or euros. Russia's sale of its energy wealth — or sophisticated military gear — may decline. However, they will bring in the same amount of rubles — as the ruble has also declined.  Replacing imports with domestic Russian manufacturing makes total sense. There will be an inevitable “adjustment” phase – but that won’t take long. German car manufacturers, for instance, can no longer sell their cars in Russia due to the ruble's decline. This means they will have to relocate their factories to Russia. If they don’t, Asia – from South Korea to China — will blow them out of the market.
  • The EU's declaration of economic war against Russia makes no sense whatsoever. Russia controls, directly or indirectly, most of the oil and natural gas between Russia and China: roughly 25% of the world's supply. The Middle East is bound to remain a mess. Africa is unstable. The EU is doing everything it can to cut itself off from its most stable supply of hydrocarbons, prompting Moscow to redirect energy to China and the rest of Asia. What a gift for Beijing – as it minimizes the alarm about the US Navy playing with "containment" across the high seas.  Still, an unspoken axiom in Beijing is that the Chinese remain extremely worried about an Empire of Chaos losing more and more control, and dictating the stormy terms of the relationship between the EU and Russia. The bottom line is that Beijing would never allow itself to be in a position where the US could interfere with China's energy imports – as was the case with Japan in July 1941 when the US declared war by imposing an oil embargo, cutting off 92% of Japanese oil imports. Everyone knows a key plank of China’s spectacular surge in industrial power was the requirement for manufacturers to produce in China. If Russia did the same, its economy would be growing at a rate of over 5% per year in no time. It could grow even more if bank credit was tied only to productive investment.
  • Now imagine Russia and China jointly investing in a new gold, oil and natural resource-backed monetary union as a crucial alternative to the failed debt "democracy" model pushed by the Masters of the Universe on Wall Street, the Western central bank cartel, and neoliberal politicians. They would be showing the Global South that financing prosperity and improved standards of living by saddling future generations with debt was never meant to work in the first place. Until then, a storm will be threatening our very lives – today and tomorrow. The Masters of the Universe/Washington combo won’t give up their strategy to make Russia a pariah state cut off from trade, the transfer of funds, banking and Western credit markets and thus prone to regime change. Further on down the road, if all goes according to plan, their target will be (who else) China. And Beijing knows it. Meanwhile, expect a few bombshells to shake the EU to its foundations. Time may be running out – but for the EU, not Russia. Still, the overall trend won’t be altered; the Empire of Chaos is slowly but surely being squeezed out of Eurasia.
Paul Merrell

Loopholes, Filing Failures, and Lax Enforcement: How the Foreign Agents Registration Ac... - 0 views

  • Why This Matters The Foreign Agents Registration Act requires American lobbyists working on behalf of foreign clients to disclose significantly more information about their activities than what is required of domestic lobbyists. This includes the actual documents used to influence policy makers, called informational materials. These materials include draft legislation, speeches, press releases and more, all created to influence U.S. policy. But the lobbyists do not always follow the letter of the law and enforcement by the Justice Department has been lax in recent years. Furthermore, the law itself seems to have loopholes that make enforcement difficult if not impossible. The Foreign Agents Registration Act is intended to bring transparency into the world of foreign lobbying. But when American lobbyists working on behalf of foreign interests fail to follow the law, or the Justice Department fails to enforce it, the American people are left in the dark.
  • Why This Matters The Foreign Agents Registration Act requires American lobbyists working on behalf of foreign clients to disclose significantly more information about their activities than what is required of domestic lobbyists. This includes the actual documents used to influence policy makers, called informational materials. These materials include draft legislation, speeches, press releases and more, all created to influence U.S. policy. But the lobbyists do not always follow the letter of the law and enforcement by the Justice Department has been lax in recent years. Furthermore, the law itself seems to have loopholes that make enforcement difficult if not impossible. The Foreign Agents Registration Act is intended to bring transparency into the world of foreign lobbying. But when American lobbyists working on behalf of foreign interests fail to follow the law, or the Justice Department fails to enforce it, the American people are left in the dark.
  • Executive Summary The Foreign Agents Registration Act (FARA) requires that all American citizens working to influence U.S. policy on behalf of foreign governments register with the Department of Justice and to disclose information on any and all political activity in which they engaged for foreign clients. This includes filing, within 48 hours, any informational materials disseminated to two or more people.
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  • Table of Contents Executive SummaryIntroductionBackgroundWhat the Foreign Influence Database ShowsEgypt: A Case Study Of Foreign InfluenceSame-Day ContributionsSystemic Foreign InfluenceQuid Pro Quo or Coincidence?Foreign Money and the LawLax Compliance with and Enforcement of FARAEnforcementConclusionRecommendationsEndnotes
  • The law requires lobbyists for foreign interests to plainly and conspicuously identify themselves as such in any materials distributed in the course of their lobbying—for example, emails, other correspondence, or publications. We found that many documents filed with the Justice Department lack this identification statement; furthermore, many lobbyists admitted that they did not comply with this requirement. More than half (51 percent) of the registrants we examined in a sample from 2010 checked a box on a the semi-annual Justice Department questionnaire saying they had filed informational materials, and checked another box saying they had not met the legal requirement that they identify themselves in those materials as working on behalf of foreign interests. Toby Moffett, a former Member of Congress from Connecticut who is now Chairman of the Moffett Group and one of its registered lobbyists, told POGO that “Around the edges there’s a lot of loosey-goosey stuff going on. People representing foreign interests and not reporting.”[4] But even when lobbyists do report to the Justice Department, the information they provide is not easily accessible to the public. Astonishingly, informational materials are not available online, despite the fact that the Justice Department has an electronic filing system. Instead, these documents are kept in an office at the Justice Department that is only open for four hours each weekday. Hard copies of the documents are kept in folders that are often disorganized and susceptible to misfiling. This archaic system undermines the intended transparency of the law.
  • We set out to determine the extent to which lobbyists for foreign interests were filing lobbying materials at the Justice Department within the required time frame. Based on a review of filings made in 2012, in those instances where it was possible to answer the question, POGO estimates that almost half—46 percent—were filed late. Fifteen percent were filed more than 30 business days after they were distributed, and 12 percent were filed more than 100 business days after they were distributed. In many instances, the Justice Department would be hard pressed to enforce the filing deadline. Based on the records the Department maintains to enforce the law, we found that in more than a quarter (26 percent) of the 2012 filings, it was impossible to determine whether the lobbyists complied. For example, in many cases, the records did not show when the lobbyists disseminated the materials to the targets of their lobbying. In a glaring omission, the law does not require lobbyists to provide that information. Without it, there may be no way for the government or the public to know whether lobbying materials were filed on time.
  • Though federal law bars foreign money from U.S. political campaigns, there appears to be a gray area in the law that can let in such money indirectly. POGO found many instances in which members of lobbying firms made political contributions to Members of Congress on the same day that those firms were lobbying the Members of Congress or their legislative staffs on behalf of foreign clients.[1] Lobbyists who fail to comply with certain FARA requirements may have little to fear from the Justice Department. “The cornerstone of the Registration Unit’s enforcement efforts is encouraging voluntary compliance,” a Justice Department website says.[2] When lobbyists do not voluntarily comply, the Justice Department rarely uses one of the key tools at its disposal to enforce the law—seeking a court injunction. A representative of the Department’s FARA unit told POGO: “While the FARA statute and regulations authorize the pursuit of formal legal proceedings, such as injunctive remedy options, the FARA Unit [has] not pursued injunctive remedy options recently and has instead utilized other mechanisms to achieve compliance.”[3] It appears that some registered foreign agents have been distributing materials but not filing them with the Justice Department. It’s unclear the extent to which that illustrates a lack of compliance with the law or loopholes in the law. In the process of researching this report, POGO noticed that many more lobbyists were registering as foreign agents than had filed informational materials that we could locate at the FARA office. To determine what was happening, we looked at a sampling of questionnaires that the Justice Department requires registered agents to complete every six months. Some checked one box indicating they had distributed materials and another box stating they did not file them with the FARA office.
  • The Project On Government Oversight examined thousands of these materials spanning four years, as well as additional public records related to the Justice Department’s oversight of lobbyists for foreign interests. We found that lobbyists for foreign interests have routinely failed to comply with the law—a failure that prevents journalists and watchdogs from scrutinizing the lobbying activities while foreign interests are trying to influence U.S. policy. We found a pattern of lax enforcement of FARA requirements by the Justice Department. We found that the Justice Department office responsible for administering the law is a record-keeping mess. And we found loopholes in the law that often makes it difficult if not impossible for the government to police compliance or to discipline lobbyists who fail to comply. Here are some highlights of our investigation:
  • When lobbyists for foreign interests do not follow the law, when the U.S. government fails to enforce it, and when the Justice Department makes it difficult for the American people to access records to which they are legally entitled, the public is left in the dark. To bring more transparency to this opaque realm, POGO has made four years of informational materials available for the first time online with our Foreign Influence Database, allowing the public to see how lobbyists attempt to influence American policies on behalf of their foreign clients.
  • With the release of the Foreign Influence Database, the Project On Government Oversight (POGO) is making years of documents from this key set of FARA filings electronically available for the first time. The materials were previously only available in hard copy at the FARA Registration Unit in Washington, DC, which is only open to the public from 11am to 3pm on weekdays.[12] In this digital age it is surprising that these materials could not be read online and are instead stored in file folders, where they are disorganized and susceptible to misfiling. Even those that were electronically filed by the registrants are not available to the public in an electronic format. POGO’s database includes informational materials filed in 2009, 2010, 2011, and 2012.[13]
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    POGO does thorough work and doesn't let up until it gets results. Forcing DoJ to puts its foreign agents registration materials online should be a fairly trivial battle. The real war, though, will be forcing better enforcement. The new database is at http://www.pogo.org/tools-and-data/foreign-influence-database/ I punched up the word "Israel" and came up with 113 documents in the search results. Each search hit lists the name of the nation involved that the lobbying was done for. Of those 113 document hits, only two were for the nation of Israel, both for its Ministry of Tourism. The rest were by other nations who had mentioned Israel in their lobbying materials.  Now that is fairly incredible, given that Israel outright controls Congress when it comes to Middle East policy.  The last administration to attempt to do something about Israeli lobbyists not registering was the the Kennedy Administration. The result was that the major Israeli lobbying group disbanded and was promptly reformed under a new corporate charter and name. That was the very last attempt at enforcing the Foreign Agents Registration Act against Israel's lobbyists in the U.S., despite the fact that the reformed group, AIPAC, has even been caught more than once being passed highly classified U.S. documents by double agents working inside the U.S. military establishment. The leakers went to prison but the AIPACers were never prosecuted. AIPAC rules.  
Paul Merrell

US General Says Venezuela Coup Possible, Denies Involvement | News | teleSUR - 0 views

  • The high-ranking military official has made confusing statements about possible U.S. involvement in coup plans in Venezuela. Contrary to the statements by White House and State Department officials, the head of U.S. Sourthern Command said Thursday that an unconstitutional change in government could be planned for Venezuela. “A coup? You know, I don't know anyone that would want to take that mess over, but it might be that we see, whether it's at the end of his term or whatever, I wouldn't say -- I wouldn't (say) necessarily a coup, but there might be with -- the same ruling party … some arrangements to change leadership,” said Marine General John Kelly, Commander of U.S. Southern Command. The Southern Command, or Southcom, is a joint command of the Army, Navy, Air Force, Marine Corps, Coast Guard, and several other U.S. federal agencies, with more than 1,200 military and civilian personnel. It is responsible for military planning and operations in Latin America and the Caribbean.
  • The Venezuelan government has claimed, and shown proof, of thwarting a plan to overthrow it. The goverment says opposition leaders worked together with members of the Venezuelan navy and U.S. embassy offiicals. To date, U.S. officials have denied their involvement in such plans. The U.S. military leader continued with statements denying involvement in or knowledge of any coup plans. “I’m certainly not involved in any way, shape or form with coup planning. I don't know anyone who is. And I probably would know if someone was,” Kelly said in a press gathering speaking about Soutcom's 2015 Posture Statement to Congress. “And as far as the Air Force -- or, they claimed it was a U.S. Air Force pilot. This would really be a question for the State Department. But I believe it was a U.S. pilot,” he continued, referring to Venezuela detaining a U.S. pilot and accusing him of spying and recruiting Venezuelans to join the coup plot.
  • In the statement, Southcom identifies regional organizations such as the Community of Latin American and Caribbean States (CELAC) and the Bolivarian Allliance for our Americas (ALBA) as “challenges … which deliberately exclude the United States and seek to limit (the United States') role in the hemisphere.” On Monday, U.S. President Barack Obama issued an executive order declaring Venezuela an “unusual and extraordinary threat to the national security and foreign policy of the United States.” Venezuelan and Latin American leaders have blasted the declaration as a form of U.S. intervention in the internal affairs of Latin American countries.
Paul Merrell

57 Years Ago: U.S. and Britain Approved Use of Islamic Extremists to Topple Syrian Gove... - 0 views

  • BBC reports that – in 1957 – the British and American leaders approved the use of Islamic extremists and false flag attacks to topple the Syrian government: Nearly 50 years before the war in Iraq, Britain and America sought a secretive “regime change” in another Arab country… by planning the invasion of Syria and the assassination of leading figures.   Newly discovered documents show how in 1957 [former Prime Minister of the United Kingdom] Harold Macmillan and President Dwight Eisenhower approved a CIA-MI6 plan to stage fake border incidents as an excuse for an invasion by Syria’s pro-western neighbours, and then to “eliminate” the most influential triumvirate in Damascus.   ***   Although historians know that intelligence services had sought to topple the Syrian regime in the autumn of 1957, this is the first time any document has been found showing that the assassination of three leading figures was at the heart of the scheme. In the document drawn up by a top secret and high-level working group that met in Washington in September 1957, Mr Macmillan and President Eisenhower were left in no doubt about the need to assassinate the top men in Damascus.
  • Kermit Roosevelt had a proven track record in this sort of thing.  According to the New York Times, he was the leader of the CIA’s coup in Iran in 1953, which – as subsequently admitted by the CIA - used false flag terror to topple the democratically elected leader or Iran. BBC continues: More importantly, Syria also had control of one of the main oil arteries of the Middle East, the pipeline which connected pro-western Iraq’s oilfields to Turkey.   ***   The report said that once the necessary degree of fear had been created, frontier incidents and border clashes would be staged to provide a pretext for Iraqi and Jordanian military intervention. Syria had to be “made to appear as the sponsor of plots, sabotage and violence directed against neighbouring governments,” the report says. “CIA and SIS should use their capabilities in both the psychological and action fields to augment tension.”   ***   The plan called for funding of a “Free Syria Committee” [hmmm ... sounds vaguely familiar], and the arming of “political factions with paramilitary or other actionist capabilities” within Syria. The CIA and MI6 would instigate internal uprisings, for instance by the Druze [a Shia Muslim sect] in the south, help to free political prisoners held in the Mezze prison, and stir up the Muslim Brotherhood in Damascus.
  • In 1982, a prominent Israeli journalist formerly attached to the Israeli Foreign Ministry allegedly wrote a book expressly calling for the break up of Syria: All the Arab states should be broken down, by Israel, into small units ….   Dissolution of Syria and Iraq later on into ethnically or religiously unique areas such as in Lebanon, is Israel’s primary target on the Eastern front in the long run. In any event, it is well-documented that – in 1996 – U.S. and Israeli Neocons advocated: Weakening, containing, and even rolling back Syria ….
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  • [Background:  Governments from Around the World – Including Western, Islamic, Asian and African Nations – ADMIT They Carry Out False Flag Terror] Is it purely coincidence that the U.S. has heavily armed Al Qaeda Muslim extremists in Syria (and see this), and trained the jihadis who later became ISIS? Regime change in Syria was not a once-off plan.   Neoconservatives also planned regime change in Syria more than 20 years ago … in 1991. The West Has Been Arbitrarily Breaking Up Middle Eastern Countries for 100 Years The Western powers agreed 100 years ago to arbitrarily divvy up the Middle East, without regard for historical boundries. Neooconservatives in the U.S. and Israel have long advocated for the balkanization of Syria into smaller regions based on ethnicity and religion. The goal was to break up the country, and to do away with the sovereignty of Syria as a separate nation. (The same goal has long applied to Iraq and other Arab states as well.)
  • In summary, we don’t have conclusive proof that the U.S., Israeli or their allies have intentionally broken up Syria. But in light of such claims – and the 57-year old American-British plan to stir up Muslim Brotherhood and other religious extremists  in Syria – maps showing the Islamic jihadi group ISIS’ carving up of Syria (and Iraq) into “the Islamic State” are interesting, indeed:
Paul Merrell

Venezuelan Opposition Leaders call for Regime Change and "National Transition Agreement... - 0 views

  • Three leading figures of the Venezuelan opposition have released a statement amounting to a demand for regime change and the establishment of a transitional government in the country. Entitled “The Call for a National Transition Agreement,” the statement was circulated this Wednesday and appeals to Venezuelans to unite behind a national plan aimed at supplanting the current socialist administration of President Nicolas Maduro, elected on April 14th 2013 with approximately 51% of the vote.
  • Its signatories include currently jailed leader of the Popular Will Party, Leopoldo Lopez, former National Assembly Legislator, Maria Corina Machado and current Mayor of the Metropolitan Capital District of Caracas, Antonio Ledezma. All of the signatories are linked to the violent guarimbas or barricades which began in February 2014, when violent protestors and paramilitaries blocked the streets for several months in response to calls by Lopez and Machado to force the “exit” of the Maduro government.
  • “Our call is to construct an agreement to take the lead in the transition to peace. It is the obligation of all democrats to help resolve the current crisis, defend the cause of liberty, and prevent the unavoidable fall of the regime from disrupting the peace and constitutionality of the country, to make the transition, that’s to say, the change from one failed system to another which is full of hope,” reads the text. The publication of the statement comes just a day before the first anniversary of the barricades and represents a clear violation of the country’s Bolivarian Constitution, which only allows for the removal of the elected President of the Republic via a national referendum or indictment by the Supreme Court of Justice. In the text, the current government is described as a “failed” “corrupt” and “inefficient” regime, made up of an “elite of no more 100 people” who have pilfered public funds “which could have been used for the benefit of all”. It also states that Venezuela is on the brink of a “humanitarian crisis” whilst the Maduro government is “delegitimised” and in its “terminal phase”. The move comes amidst a mounting economic war against the country’s socialist revolution which has seen private businesses hoarding essential goods in order to cause public unrest, as well as a fresh round of US sanctions imposed on Venezuelan officials earlier in February.
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  • The economic plan of the would-be transitional government is detailed in the last section of the agendas, where the signatories state their intention to designate a new management body for Venezuelan state oil company, PDVSA, and reinsert Venezuela into “international financial organisations, and to secure from them the funds needed to overcome short term difficulties”. The economic agenda also suggests that the future of Venezuela under an opposition government would include a liberalised economy and a reversal of State nationalisations. This would include “reaching an agreement for just reparations for damages caused by arbitrary expropriations, revising the real condition of all non-oil enterprises which ended up in the hands of the State due to the greed of the regime, and deciding on the forms of property and management which they can take on in order to assure their productive recovery”. “It is necessary to dismantle the tangled mess of controls which are strangling the economy and rebuild the juridic and economic bases which are necessary to attract productive investment with guarantees stable growth into the future,” continues the text.
  • All three of the politicians to have signed the document participated in the 2002 attempted coup against President Hugo Chavez.
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    Privatization of Venezuela's oil seems to be the big driving force. 
Paul Merrell

US-Saudi Blitz into Yemen: Naked Aggression, Absolute Desperation | Global Research - C... - 0 views

  • The “proxy war” model the US has been employing throughout the Middle East, Eastern Europe, and even in parts of Asia appears to have failed yet again, this time in the Persian Gulf state of Yemen. Overcoming the US-Saudi backed regime in Yemen, and a coalition of sectarian extremists including Al Qaeda and its rebrand, the “Islamic State,” pro-Iranian Yemeni Houthi militias have turned the tide against American “soft power” and has necessitated a more direct military intervention. While US military forces themselves are not involved allegedly, Saudi warplanes and a possible ground force are. Though Saudi Arabia claims “10 countries” have joined its coalition to intervene in Yemen, like the US invasion and occupation of Iraq hid behind a “coalition,” it is overwhelmingly a Saudi operation with “coalition partners” added in a vain attempt to generate diplomatic legitimacy. The New York Times, even in the title of its report, “Saudi Arabia Begins Air Assault in Yemen,” seems not to notice these “10” other countries. It reports:
  • Saudi Arabia announced on Wednesday night that it had launched a military campaign in Yemen, the beginning of what a Saudi official said was an offensive to restore a Yemeni government that had collapsed after rebel forces took control of large swaths of the country.  The air campaign began as the internal conflict in Yemen showed signs of degenerating into a proxy war between regional powers. The Saudi announcement came during a rare news conference in Washington by Adel al-Jubeir, the kingdom’s ambassador to the United States.
  • Indeed, the conflict in Yemen is a proxy war. Not between Iran and Saudi Arabia per say, but between Iran and the United States, with the United States electing Saudi Arabia as its unfortunate stand-in. Iran’s interest in Yemen serves as a direct result of the US-engineered “Arab Spring” and attempts to overturn the political order of North Africa and the Middle East to create a unified sectarian front against Iran for the purpose of a direct conflict with Tehran. The war raging in Syria is one part of this greater geopolitical conspiracy, aimed at overturning one of Iran’s most important regional allies, cutting the bridge between it and another important ally, Hezbollah in Lebanon. And while Iran’s interest in Yemen is currently portrayed as yet another example of Iranian aggression, indicative of its inability to live in peace with its neighbors, US policymakers themselves have long ago already noted that Iran’s influence throughout the region, including backing armed groups, serves a solely defensive purpose, acknowledging the West and its regional allies’ attempts to encircle, subvert, and overturn Iran’s current political order.
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  • What may result is a conflict that spills over Yemen’s borders and into Saudi Arabia proper. Whatever dark secrets the Western media’s decades of self-censorship regarding the true sociopolitical nature of Saudi Arabia will become apparent when the people of the Arabian peninsula must choose to risk their lives fighting for a Western client regime, or take a piece of the peninsula for themselves. Additionally, a transfer of resources and fighters arrayed under the flag of the so-called “Islamic State” and Al Qaeda from Syria to the Arabian Peninsula will further indicate that the US and its regional allies have been behind the chaos and atrocities carried out in the Levant for the past 4 years. Such revelations will only further undermine the moral imperative of the West and its regional allies, which in turn will further sabotage their efforts to rally support for an increasingly desperate battle they themselves conspired to start.
  • The aerial assault on Yemen is meant to impress upon onlookers Saudi military might. A ground contingent might also attempt to quickly sweep in and panic Houthi fighters into folding. Barring a quick victory built on psychologically overwhelming Houthi fighters, Saudi Arabia risks enveloping itself in a conflict that could easily escape out from under the military machine the US has built for it. It is too early to tell how the military operation will play out and how far the Saudis and their US sponsors will go to reassert themselves over Yemen. However, that the Houthis have outmatched combined US-Saudi proxy forces right on Riyadh’s doorstep indicates an operational capacity that may not only survive the current Saudi assault, but be strengthened by it. Reports that Houthi fighters have employed captured Yemeni warplanes further bolsters this notion – revealing tactical, operational, and strategic sophistication that may well know how to weather whatever the Saudis have to throw at it, and come back stronger.
  • The unelected hereditary regime ruling over Saudi Arabia, a nation notorious for egregious human rights abuses, and a land utterly devoid of even a semblance of what is referred to as “human rights,” is now posing as arbiter of which government in neighboring Yemen is “legitimate” and which is not, to the extent of which it is prepared to use military force to restore the former over the latter. The United States providing support for the Saudi regime is designed to lend legitimacy to what would otherwise be a difficult narrative to sell. However, the United States itself has suffered from an increasing deficit in its own legitimacy and moral authority. Most ironic of all, US and Saudi-backed sectarian extremists, including Al Qaeda in Yemen, had served as proxy forces meant to keep Houthi militias in check by proxy so the need for a direct military intervention such as the one now unfolding would not be necessary. This means that Saudi Arabia and the US are intervening in Yemen only after the terrorists they were supporting were overwhelmed and the regime they were propping up collapsed. In reality, Saudi Arabia’s and the United States’ rhetoric aside, a brutal regional regime meddled in Yemen and lost, and now the aspiring global hemegon sponsoring it from abroad has ordered it to intervene directly and clean up its mess.
  • the Yemeni people are not being allowed to determine their own affairs. Everything up to and including military invasion has been reserved specifically to ensure that the people of Yemen do not determine things for themselves, clearly, because it does not suit US interests. Such naked hypocrisy will be duly noted by the global public and across diplomatic circles. The West’s inability to maintain a cohesive narrative is a growing sign of weakness. Shareholders in the global enterprise the West is engaged in may see such weakness as a cause to divest – or at the very least – a cause to diversify toward other enterprises. Such enterprises may include Russia and China’s mulipolar world. The vanishing of Western global hegemony will be done in destructive conflict waged in desperation and spite. Today, that desperation and spite befalls Yemen.
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    Usually I agree with Tony Cartalucci, but I think it's too early to pick winners and losers in Yemen. At least a couple of other nations allied with the Saudis are flying aerial missions and there's a commitment of troops and air support by Egypt, although it isn't clear that these would enter Yemen, but may just deploy to "protect" the waters approaching the Suez Canal from the Yemenis. The Saudis have a surfeit of U.S. weaponry but their military is inexperienced. The House of Saud has preferred proxy wars conducted by Salafist mercenaries over direct military intervention. How effective its military will be is a very big unknown at this point. But I like Cartalucci's point that if the House of Saud has to send in its ISIL mercenaries, it will go a long way toward unmasking the U.S. excuse for invading Syria and resuming boots on the ground in Iraq.
Paul Merrell

Magna Carta Messed Up the World, Here's How to Fix It | The Nation - 0 views

  • In a few months, we will be commemorating the 800th anniversary of the sealing of Magna Carta—commemorating, but not celebrating; rather, mourning the blows it has suffered.
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    On the Charter of the Forest, see https://en.wikipedia.org/wiki/Charter_of_the_Forest For a translation of the Magna Carta of 1215 from the original Latin to English, see http://www.bl.uk/magna-carta/articles/magna-carta-english-translation Note that the Magna Carta of 1215 -- signed by King John at the point of a sword -- was immediately repudiated by him upon being freed. Subsequent Magna Carta suffered similar fates until one finally stuck.  
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