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Gary Edwards

Limbaugh on Obama's 'Chip on His Shoulder,' the Phenomenon of the 'Not-Romney' and the ... - 0 views

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    Awesome!  Once again Rush takes us to school. excerpt: VAN SUSTEREN: I guess I mean a motive to -- an intentional motive to hurt the country, versus his (Obama) ideology is one that the way you achieve ideals is different values. LIMBAUGH: This is the question. We are living under a number of assumptions about Obama that have been presented to us by elites of both parties. One of the illusions is Obama's brilliant, that he's smarter than anybody else in the room, messianic. We have never had a politician like this in our midst, we were told in 2007, 2008. Nobody like Obama has ever trod our soil. He was going to unify us. The world was going to love us again. It's going to lower the sea levels. I mean, ridiculous stuff. So the question is, is he just dumb? Does he really believe this economic stuff? Does he really believe that taking capital, money out of the private sector and transferring it to government and unions is the way you grow the private sector? Is that the way (INAUDIBLE) Does he really believe that? Is he that ill educated? Is he the product of nothing other than the American education system and whoever influenced him at home when he was young? Or is he an ideologue? Is he a Marxist socialist who has an agenda that's oriented toward cutting the country down to size? I mean, that's the question. For me, the answer to the question is irrelevant. I think that whatever he's doing, why he's doing it, it's obvious he is doing it. He is taking steps, these 10 policies that are injurious to the country, injurious to individuals, targeting as the enemy the people who work in this country, targeting as the enemy that people that pay taxes. This business of this Occupy Wall Street crowd, which is his -- it was created I think on the basis that Romney was going to be the Republican nominee. Romney's Wall Street, so you get Obama's band out there, Occupy Wall Street, protesting. It was set up to oppose Romney -- Wall Street blamed for all these ills in the e
Gary Edwards

Robosigning Credit Cards: The Next Major Bank Scandal? | The Reformed Broker - 0 views

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    This article is definately a "must read".  The summary is that the credit card debt mess is far worse than the mortgage foreclosure mess.  The Banksters are guilty of massive illegal activities in foreclosure gate, including forging documents and signatures.  Apparently the same thing has happened with Credit Card Debt Collection!!!! excerpt:   From American Banker: "If sloppy record keeping and problems with false affidavits is a problem with mortgages, it's 100 times bigger in credit card accounts," says Michelle Weinberg of the Legal Assistance Foundation of Metropolitan Chicago. Worse than mortgages, even? Let's just review the mortgage situation: Robosigning consists of blatantly illegal practices in which banks and mortgage companies had their employees sign affidavits and other documents without verifying the information therein; forge signatures on documents; backdate documents; falsely notarize documents; create new documents to replace missing ones; or some combination of all the above. Did I mention that all of this is illegal? Contrary to what the banks would have you believe, robosigning was not a one-off - it happened on a systematic level. So much so that some of the nation's largest banks (including Bank of America Corp. and  JPMorgan Chase & Co., ) were forced to halt foreclosures to "review" these practices in late 2010. The companies that did this claimed that they had to cut corners because they couldn't keep up with all of the paperwork created by the housing boom last decade. But we now know that this is not true - there's evidence that robo-signing goes back all the way to at least 1998. This all means that thousands of Americans were foreclosed upon erroneously and that even homebuyers and sellers in good standing may be unable to prove their rightful ownership. The problem is so big that Sheila Bair, the former head of the FDIC, acknowledged that they don't even know how big it is. It's so big that the b
Gary Edwards

» For the GOP, Moderate Is the New Conservative - Big Government - 1 views

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    Whoa! Great read!   I think i've met my doppleganger. And he can write.  Funny but earlier today Marbux and i had a lengthy eMail exchange about this exact same topic.  Clearly we are not alone in wondering what has happened to the Tea Party?   I have been trying to get my thoughts together about the rope-a-dope of Rush Limbaugh, which predictably resulted in the fragmentation and total route of the Tea Party Patriot movement. Thirty three days into the election primary cycle and the hands down winner is, The Big Government Establishment".  How did the establishment of trough feeding repubicans, democrats and corporatist/banksters do this? And do it so quickly and efficiently? This article attempts to describe the gradual push towards big government socialism.  No doubt the democratic party is the party of socialism, running the gamut from liberals, to progressives, to Euro socialist, to Marxist, communists and hard core Stalinist. Obammunism itself is a rather unique blend of Marxist enviro socialism driven and funded by fascist crony corporatism/banksterism.    The article further describes what used to be moderates as big government social progressives with a strong dose of military merchatilist interventionism.  The artile also calls these types "neo conservatives"  I guess because the neo moderates are describing themselves as new conservatives. Which is an insult to any Goldwater - Reagan conservative.  Like me.  Or at least i was until this past summer when a kind group of libertarians educated me on the Constitution.  I was Federalist  style, social/militarist conservative.  Now i'm a Jefferson-Madison libertarian strict Constitutionalist. So i've been there.  And "neo conservative" is not conservative in any sense other than that of militarist-merchantilist make the world safe for democracy through big, really big, government social and military programs.  And oh yeah, the neo moderate is a Federal Reserve big corporatist/bankster ty
Gary Edwards

1913: The Blow That Killed America 100 Years Ago - 0 views

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    "There is a lot of ruin in a nation," wrote Adam Smith. His point was that it takes a long time for nations to fall, even when they're dead on their feet. And he was certainly right. America took its fatal blow in 1913, one hundred years ago; it just hasn't hit the ground yet. This is a slow process, but it's actually fast compared to the Romans. It took them several centuries to collapse . The confusing thing about our current situation is that America - and by that I mean the noble America that so many of us grew up believing was real - has long been poisoned. Its liver, kidneys, and spleen have all stopped functioning. Its heart beats slowly and irregularly. But it still stands on its feet and presents itself as alive to all those who would let their eyes fool them. And I'm not without sympathy for those who want to believe. They find themselves in a world where politics is almighty, and where their comfort, prosperity, and perhaps their survival all hang in a delicate balance. They don't want to upset anything, and questioning the bosses is a good way to get yelled at. But just because someone wants to believe doesn't make it so. We are not children and we are not powerless. We Producers should never be intimidated by those who live at our expense. So let's start looking at the facts. 1913: The Horrible Year For all the problems America had prior to 1913 (including the unnecessary and horrifying Civil War), nothing spelled the death of the nation like the horrors of 1913. Here are the key dates: February 3rd : The 16th Amendment to the United States Constitution was ratified, authorizing the Federal government to impose income taxes on individuals. An amendment to a tariff act in 1894 had attempted to do this, but since it was clearly unconstitutional, the Supreme Court struck it down. As a result - and mostly under the banner of bleeding the rich - the 16th amendment was promoted and passed. As a result, the Revenue Act of 1
Gary Edwards

You Won't BELIEVE What's Going On with Government Spying on Americans - BlackListedNews... - 1 views

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    "New Revelations Are Breaking Every Day" This web page is very well sourced and filled with links where you will get lost for hours. Excellent reference document ............................ Revelations about the breathtaking scope of government spying are coming so fast that it's time for an updated roundup: - Just weeks after NSA boss Alexander said that a review of NSA spying found not even one violation, the Washington Post published an internal NSA audit showing that the agency has broken its own rules thousands of times each year - 2 Senators on the intelligence committee said the violations revealed in the Post article were just the "tip of the iceberg" - Glenn Greenwald notes:  "One key to the WashPost story: the reports are internal, NSA audits, which means high likelihood of both under-counting & white-washing".(Even so, the White House tried to do damage control by retroactively changing on-the-record quotes) - The government is spying on essentially everything we do. It is not just "metadata" … although that is enough to destroy your privacy - The government has adopted a secret interpretation of the Patriot Act which allows it to pretend that "everything" is relevant … so it spies on everyone - NSA whistleblowers say that the NSA collects all of our conversations word-for-word - It's not just the NSA … Many other agencies, like the FBI and IRS - concerned only with domesticissues - spy on Americans as well - The information gained through spying is shared with federal, state and local agencies, and they are using that information to prosecute petty crimes such as drugs and taxes.  The agencies are instructed to intentionally "launder" the information gained through spying, i.e. to pretend that they got the information in a more legitimate way … and to hide that from defense attorneys and judges - Top counter-terror experts say that the government's mass spying doesn't keep us
Gary Edwards

The List: Unnecessarily Shut Down by Obama to Inflict Public Pain - 0 views

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    "The media may or may not report on these individual occurrences, but what they will never do is provide the American people with the full context and scope of Obama's shrill pettiness. Below is a list of illogical, unnecessary, and shockingly spiteful moves our government is making in the name of essential and non-essential. This list will be regularly updated, and if you have something you feel should be added, please email me at jnolte@breitbart.com or tweet me @NolteNC.Please include a link to the news source. -- 1. Treatments for Children Suffering From Cancer - The GOP have agreed to a compromise by funding part of the government, including the National Institutes of Health, which offers children with cancer last-chance experimental treatment. Obama has threatened to veto this funding. 2. The World War II Memorial - The WWII memorial on the DC Mall is a 24/7 open-air memorial that is not regularly staffed. Although the White House must have known that WWII veterans in their eighties and nineties had already booked flights to visit this memorial, the White House still found the resources to spitefully barricade the attraction.  The Republican National Committee has offered to cover any costs required to keep the memorial open. The White House refused. Moreover, like the NIH, the GOP will pass a compromise bill that would fund America's national parks. Obama has threatened to veto that bill. 3. Furloughed Military Chaplains Not Allowed to Work for Free - Furloughed military chaplains willing to celebrate Mass and baptisms for free have been told they will be punished for doing so. 4. Business Stops In Florida Keys - Although the GOP have agreed to compromise in the ongoing budget stalemate and fund the parks, Obama has threatened to veto that funding. As a result, small businesses, hunters, and commercial fisherman can't practice their trade. While the feds have deemed the personnel necessary to keep this area open "non-essential," the "enforcement office
Paul Merrell

Asia Times Online :: It was Putin's missile! - 0 views

  • And here's the spin war verdict: the current Malaysia Airlines tragedy - the second in four months - is "terrorism" perpetrated by "pro-Russian separatists", armed by Russia, and Vladimir Putin is the main culprit. End of story. Anyone who believes otherwise, shut up. Why? Because the CIA said so. Because Hillary "We came, we saw, he died" Clinton said so. Because batshit crazy Samantha "R2P" Power said so - thundering at the UN, everything duly printed by the neo-con infested Washington Post. [1] Because Anglo-American corporate media - from CNN to Fox (who tried to buy Time Warner, which owns CNN) - said so. Because the President of the United States (POTUS) said so. And mostly because Kiev had vociferously said so in the first place.
  • Right off the bat they were all lined up - the invariably hysterical reams of "experts" of the "US intelligence community" literally foaming at their palatial mouths at "evil" Russia and "evil" Putin; intel "experts" who could not identify a convoy of gleaming white Toyotas crossing the Iraqi desert to take Mosul. And yet they have already sentenced they don't need to look any further, instantly solving the MH17 riddle.
  • It doesn't matter that President Putin has stressed the MH17 tragedy must be investigated objectively. And "objectively" certainly does not mean that fictional "international community" notion construed by Washington - the usual congregation of pliable vassals/patsies. And what about Carlos?
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  • A simple search at reveals that MH17 was in fact diverted 200 kilometers north from the usual flight path taken by Malaysia Airlines in the previous days - and plunged right in the middle of a war zone. Why? What sort of communication MH17 received from Kiev air control tower? Kiev has been mute about it. Yet the answer would be simple, had Kiev released the Air Traffic Control recording of the tower talking to flight MH17; Malaysia did it after flight MH370 disappeared forever. It won't happen; SBU security confiscated it. So much for getting an undoctored explanation on why MH17 was off its path, and what the pilots saw and said before the explosion. The Russian Defense Ministry, for its part, has confirmed that a Kiev-controlled Buk anti-aircraft missile battery was operational near the MH17's crash. Kiev has deployed several batteries of Buk surface-to-air missile systems with at least 27 launchers; these are all perfectly capable of bringing down jets flying at 33,000 ft.
  • Radiation from a battery's Kupol radar, deployed as part of a Buk-M1 battery near Styla (a village some 30km south of Donetsk) was detected by the Russian military. According to the ministry, the radar could be providing tracking information to another battery which was at a firing distance from MH17's flight path. The tracking radar range on the Buk system is a maximum of 50 miles. MH17 was flying at 500 mph. So assuming the "rebels" had an operational Buk and did it, they would have had not more than five minutes to scan all the skies above, all possible altitudes, and then lock on. By then they would have known that a cargo plane could not possibly be flying that high. For evidence supporting the possibility of a false flag, check here.
  • "Everything has been recorded on radar. For those that don't believe it, it was taken down by Kiev; we know that here (in traffic control) and the military air traffic control know it too (7.14)" "The Ministry of the Interior did know that there were fighter aircraft in the area, but the Ministry of Defense didn't. (7.15)" "The military confirm that it was Ukraine, but it is not known where the order came from. (7.31)" Carlos's assessment (a partial compilation of his tweets is collected here http://slavyangrad.wordpress.com/2014/07/18/spanish-air-controller-kiev-borispol-airport-ukraine-military-shot-down-boeing-mh17/ ): the missile was fired by the Ukraine military under orders of the Ministry of Interior - NOT the Ministry of Defense. Security matters at the Ministry of the Interior happen to be under Andriy Parubiy, who was closely working alongside US neo-cons and Banderastan neo-nazis on Maidan.
  • And then there's the curiouser and curiouser story of Carlos, the Spanish air traffic controller working at Kiev's tower, who was following MH17 in real time. For some Carlos is legit - not a cipher; for others, he's never even worked in Ukraine. Anyway he tweeted like mad. His account - not accidentally - has been shut down, and he has disappeared; his friends are now desperately looking for him. I managed to read all his tweets in Spanish when the account was still online - and now copies and an English translation are available. These are some of his crucial tweets: "The B777 was escorted by 2 Ukrainian fighter jets minutes before disappearing from radar (5.48 pm)" "If the Kiev authorities want to admit the truth 2 fighter jets were flying very close a few minutes before the incident but did not shoot down the airliner (5.54)" "As soon as the Malaysia Airlines B777 disappeared the Kiev military authority informed us of the shooting down. How did they know? (6.00)"
  • Assuming Carlos is legit, the assessment makes sense. The Ukrainian military are divided between Chocolate king President Petro Poroshenko - who would like a d?tente with Russia essentially to advance his shady business interests - and Saint Yulia Timoshenko, who's on the record advocating genocide of ethnic Russians in Eastern Ukraine. US neo-cons and US "military advisers" on the ground are proverbially hedging their bets, supporting both the Poroshenko and Timoshenko factions. So who profits? The key question remains, of course, cui bono? Only the terminally brain dead believe shooting a passenger jet benefits the federalists in Eastern Ukraine, not to mention the Kremlin. As for Kiev, they'd have the means, the motive and the window of opportunity to pull it off - especially after Kiev's militias have been effectively routed, and were in retreat, in the Donbass; and this after Kiev remained dead set on attacking and bombing the population of Eastern Ukraine even from above. No wonder the federalists had to defend themselves.
  • And then there's the suspicious timing. The MH17 tragedy happened two days after the BRICS announced an antidote to the IMF and the World Bank, bypassing the US dollar. And just as Israel "cautiously" advances its new invasion/slow motion ethnic cleansing of Gaza. Malaysia, by the way, is the seat of the Kuala Lumpur War Crimes Commission, which has found Israel guilty of crimes against humanity. Washington, of course, does profit. What the Empire of Chaos gets in this case is a ceasefire (so the disorganized, battered Kiev militias may be resupplied); the branding of Eastern Ukrainians as de facto "terrorists" (as Kiev, Dick Cheney-style, always wanted); and unlimited mud thrown over Russia and Putin in particular until Kingdom Come. Not bad for a few minutes' work. As for NATO, that's Christmas in July. From now on, it all depends on Russian intelligence. They have been surveying/tracking everything that happens in Ukraine 24/7. In the next 72 hours, after poring over a lot of tracking data, using telemetry, radar and satellite tracking, they will know which type of missile was launched, where from, and even produce communications from the battery that launched it. And they will have access to forensic evidence.
  • Unlike Washington - who already knows everything, with no evidence whatsoever (remember 9/11?) - Moscow will take its time to know the basic journalistic facts of what, where, and who, and engage on proving the truth and/or disproving Washington's spin. The historical record shows Washington simply won't release data if it points to a missile coming from its Kiev vassals. The data may even point to a bomb planted on MH17, or mechanical failure - although that's unlikely. If this was a terrible mistake by the Novorossiya rebels, Moscow will have to reluctantly admit it. If Kiev did it, the revelation will be instantaneous. Anyway we already know the hysterical Western response, no matter what; Russia is to blame. Putin is more than correct when he stressed this tragedy would not have happened if Poroshenko had agreed to extend a cease-fire, as Merkel, Hollande and Putin tried to convince him in late June. At a minimum, Kiev is already guilty because they are responsible for safe passage of flights in the airspace they - theoretically - control. But all that is already forgotten in the fog of war, tragedy and hype. As for Washington's hysterical claims of credibility, I leave you with just one number: Iran Air 655.
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    Pepe Escobar again.  Cui bono, indeed. It's the first question that should be asked when investigating any mystery.  
Joseph Skues

Noam Chomsky: The Real Reasons the U.S. Enables Israeli Crimes and Atrocities | World |... - 0 views

  • But the major change in relationships took place in 1967. Just take a look at USA aid to Israel. You can tell that right off. And in many other respects, it’s true, too. Similarly, the attitude towards Israel on the part of the intellectual community -- you know, media, commentary, journals, and so on -- that changed very sharply in 1967, from either lack of interest or sometimes even disdain, to almost passionate support. So what happened in 1967?
  • And Nasserite secular nationalism was considered a serious threat, because it was recognized that it might seek to take control of the immense resources of the region and use them for regional interest, rather than allow them to be centrally controlled and exploited by the United States and its allies. So that was a major issue.
  • While the U.S. was mired in Southeast Asia at the time -- it was right at the time, a little after the Cambodia invasion and everything was blowing up -- the U.S. couldn't do a thing about it. So, it asked Israel to mobilize its very substantial military forces and threaten Syria so that Syria would withdraw. Well, Israel did it. Syria withdrew. That was another gift to U.S. power and, in fact, U.S. aid to Israel shot up very sharply -- maybe quadrupled or something like that -- right at that time. Now at that time, that was the time when the so-called Nixon Doctrine was formulated.
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  • which will protect the Arab dictatorships from their own populations or any external threat.
  • what were called “cops on the beat” by Melvin Laird, Secretary of Defense
  • A part of the Nixon Doctrine was that the U.S., of course, has to control Middle-East oil resources -- that goes much farther back -- but it will do so through local, regional allies
  • a whole network
  • Pakistan
  • Israel
  • that was sometimes called the periphery strategy: non-Arab states protecting the Arab dictatorships from any threat,
  • primarily the threat of what was called radical nationalism -- independent nationalism -- meaning taking over the armed resources for their own purposes.
  • But, anyway, that “cop” [Iran] was lost and Israel's position became even stronger in the structure that remained.
  • through the '80s Congress, under public pressure, was imposing constraints on Reagan's support for vicious and brutal dictatorship
  • Congress blocked i
  • which the Reagan administration was strongly supporting
  • So] that it [could] support South-African apartheid and the Guatemalan murderous dictatorship and other murderous regimes, Reagan needed a kind of network of terrorist states to help out, to evade the congressional and other limitations, and he turned to, at that time, Taiwan, but, in particular, Israel. Britain helped out. And that was another major service.
  • By far the most rabid pro-Israel newspaper in the country is the Wall Street Journal
  • the journal of the business community, and it reflects the support of the business world for Israel, which is quite strong
  • high-tech investment in Israe
  • military industry is very close to Israeli
  • probably it's carried out terrorist acts, but by the standards of the U.S. and Israel, they're barely visible
  • Intel, for example, is building its next facility for construct development of the next generation of chips in Israel.
  • Most Jewish money goes to Democrats and most Jews vote Democratic
  • Turkey
  • AIPAC, which is a very influential lobby
  • there's Christian Zionism
  • they're facing virtually no opposition. Who's calling for support of the Palestinians?  
  • the occupation and the blockade on Gaz
  • , the occupation of East Jerusalem
  • the West Bank
  • here were free elections in Palestine in January 2006
  • recognized to be free
  • Israel and the United States instantly, within days, undertook perfectly public policies to try to punish the Palestinians for voting the wrong way in a free election
  • you couldn't see a more dramatic illustration of hatred and contempt for democracy unless it comes out the right way.    
  • tried to carry out a military coup to overthrow the elected government. Well, it failed. Hamas won and drove Fatah out of the Gaza Strip. Now, here, that's described as a demonstration of Hamas terror or something. What they did was preempt and block a U.S.-backed military coup
  • The terrorist list has been a historic joke, in fact, a sick joke
  • Up until 1982, Iraq -- Saddam Hussein's Iraq -- was on the terrorist list. 
  • 1982, the Reagan administration removed Iraq from the terrorist list. Why? Because they were moving to support Iraq, and, in fact, the Reagan administration and, in fact, the first Bush administration strongly supported Iraq right through its worst – Saddam, right through his worst atrocities. In fact, they tried to ... they succeeded, in fact, in preventing even criticism of condemnation of the worst atrocities, like the Halabja massacre -- and others
  • So they removed Iraq from the terrorist list because they wanted to support one of the worst monsters and terrorists in the region, namely Saddam Hussein.
  • Republican Party is much more strongly supportive of Israeli power and atrocities than the Democrats are
  • The main reason why Hezbollah is on the terrorist list is because it resisted Israeli occupation of Southern Lebanon and, in fact, drove Israel out of Southern Lebanon after 22 years of occupation -- that's called terrorism. In fact, Lebanon has a national holiday, May 25th, which is called Liberation Day. That's the national holiday in Lebanon commemorating, celebrating the Israeli withdrawal from southern Lebanon in year 2000, and largely under Hezbollah attack.  
  • which would be a major competitor in Egypt's elections, if Egypt permitted democratic elections,
  • The Egyptian dictatorship -- which the U.S. strongly backs, Obama personally strongly backs -- doesn't permit anything remotely like elections and is very brutal and harsh
  • I mean, Europe, the non-aligned countries -- the Arab League, the Organization of Islamic States, which includes Iran -- have all accepted the international consensus on the two-state settlement
  • They chose expansion.  The crucial question is what would the United States do? Well, there was an internal bureaucratic battle in the U.S., and Henry Kissinger won out. He was in favor of what he called “stalemate.” A stalemate meant no negotiations, just force.
  • So, sure, if Israel continues to settle in the occupied territories -- illegally, incidentally, as Israel recognized in 1967 (it's all illegal; they recognized it) -- it's undermining the possibilities for the viable existence of any small Palestinian entity. And as long as the United States and Israel continue with that, yes, there will be insecurity
Paul Merrell

Fellow soldiers call Bowe Bergdahl a deserter, not a hero - CNN.com - 0 views

  • The sense of pride expressed by officials of the Obama administration at the release of Army Sgt. Bowe Bergdahl is not shared by many of those who served with him: veterans and soldiers who call him a deserter whose "selfish act" ended up costing the lives of better men.
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    I've been disgusted with American mainstream media and our political class for a very long time. Every now and then I get super-disgusted.  I'll begin with the Obama Administration. They tried to make political hay with something that should not have been made public other than notifying the released American prisoners' parents before the prisoner had been debriefed. Moreover, while I have no problems with swapping Taliban prisoners to get the American prisoner back even if it meant not giving Congress the full 30-day notice required by statute, the Administration certainly could have done a better job of it, notifying key committee members earlier that the deal might be pulled off. Waiting until the Taliban prisoners were up to the steps of the airplane bound for the exchange was not the way this should have happened. Next up, we have the members of Congress who have done their level best to turn the situation into a partisan issue. Obama may have deserved criticism given that he tried to make political hay with the release. But prisoner swaps during wartime have been a feature of most U.S. wars. It is an ancient custom of war and procedures for doing so are even enshrined in the Geneva Conventions governing warfare. So far, I have not heard any war veteran member of Congress scream about releasing terrorists. During my 2+ years in a Viet Nam combat role, the thought of being captured was horrifying. Pilots shot down over North Viet Nam were the lucky ones. No American soldier captured in South Viet Nam was ever released. The enemy was fighting a guerrilla war in the South. They had no means to confine and care for prisoners. So captured American troops were questioned for intelligence and then killed.  Truth be told, American combat troops were prone to killing enemy who surrendered. War is a very ugly situation and feelings run high. It is perhaps a testament to the Taliban that they kept Sgt. Berdahl alive. Certainly that fact clashes irreconcilably with
Paul Merrell

Why Obama is bombing the Caliph - RT Op-Edge - 0 views

  • This is the way the multi-trillion dollar Global War on Terror (GWOT) ends: not with a bang, but with a bigger bang. The GWOT, since its conceptualization 13 years ago, in the aftermath of 9/11, is the gift that keeps on giving. And no gift is bigger than a Transformer Al-Qaeda on steroids – bigger, brasher, and wealthier than anything Osama Bin Laden and Ayman al-Zawahiri had ever dreamt of; the IS (Islamic State, formerly known as ISIS) of Caliph Ibrahim, former Abu Bakr al-Baghdadi. US President Barack Obama, before deploying his golf holidays in Martha’s Vineyard, casually dropped that bombing the Caliph’s goons in Iraq will take months. One may interpret it as another layer of the Obama administration’s self-avowed “Don't Do Stupid Stuff” foreign policy doctrine, not so subtly mocked by prospective presidential candidate Hillary Clinton. Shock and Awe in 2003 destroyed the whole of Baghdad’s infrastructure in only a few hours. Obama also confirmed the US was showering Iraq again with humanitarian bombing “to protect American interests” (first and foremost) and, as an afterthought, “human rights in Iraq.” One could not possibly expect Obama to declare the US would now bomb “our” allies the House of Saud, who have supported/financed/weaponized IS, in Syria and Iraq. The same erstwhile ISIS that thoroughly enjoyed the marvels of US military training in a secret base in Jordan.
  • Obama also could not possibly explain why the US always supported ISIS in Syria and now decides to bomb them in Iraq. Oh, the perils of ‘Don’t Do Stupid Stuff’. So a quick translation applies.
  • Obama’s bombing of the Caliph’s goons has absolutely nothing to do with US ambassador to the UN Samantha Power’s much beloved R2P (‘responsibility to protect’) doctrine – as in the responsibility to protect up to 150,000 Yazidis, not to mention Kurds and remaining Christians, from a ‘potential’ genocide carried out by the Caliph’s goons. The whole fighter jets + drones bombing exercise, lasting ‘months’, has to do with the Benghazi syndrome. The Caliph’s goons were dead set on conquering Irbil - the capital of Iraqi Kurdistan. The Kurdistan Regional Government (KRG) is led by the wily Massoud Barzani – a long-time US client/vassal. The US maintains a consulate in Irbil. Crammed with CIA types. Or, as the New York Times so lovingly puts it, “thousands of Americans.” Enter Benghazi. This is an electoral year. Obama is absolutely terrified of another Benghazi – which Republicans have been trying non-stop to blame on his administration’s incompetence. The last thing Obama needs is the Caliph’s goons killing ‘diplomats’ in Erbil. That would certainly raise a tsunami of questions all over again about the shady CIA weapon-smuggling racket – as in arming Syrian ‘rebels’ with weapons from Libya - at the time Benghazi took place. As secretary of state, Hillary Clinton, of course, also knew about it all. But then, and especially now, no one should know that the CIA was weaponizing the bulk of the future Caliph’s forces.
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  • Obama said this humanitarian bombing adventure could last “months,” but in fact it could last only days. The price is cheap: regime change. As in former Iraqi Prime Minister Nouri al-Maliki blocked from having a third term. That explains why all hell broke loose in Baghdad, as Iraqi parliamentarians clearly saw which way the wind is blowing. Haider al-Abadi was chosen by new President Fuad Masoum, a Kurd, as the new prime minister – hours after Maliki positioned Special Forces in strategic sites in and around the Green Zone and may (or may not) have tried to stage a coup. Maliki maintains that Masoum violated the Iraqi constitution by not selecting him to form a new cabinet; after all, his State of Law bloc got the most votes in last April’s parliamentary elections.
  • Obama, predictably, was delighted. But whatever happens next, Maliki won’t go down quietly – to say the least. Even as the predominant narrative among Sunnis, a substantial number of Kurds and even some Shiite political blocs is that Maliki antagonized Sunnis all-out; and that’s what drove them to support the Caliph en masse (although now many are having second thoughts.) As for the KRG and Barzani, in the Obama administration scheme of things, what matters is that they should not declare independence. As long as Barzani promises to Obama that Kurdistan stays inside Iraq, the KRG will get more bombs and drones and the ‘humanitarian’ operation will speed up. US Special Forces are already deployed all over the huge area where the Caliphate borders the KRG, in so-called desert forward operating positions. And the US for all practical purposes is now the Iraqi Air Force against the Caliph. Watch ‘the Hillarator’ This Obama administration warped R2P – protection for Americans first, refugees second – will accomplish nothing for a key reason; no bombing – ‘humanitarian’ or otherwise - exterminates a political/religious movement, even one as demented as IS. The Caliphate prospers, somewhat, and expands, because unlike that pathetic Free Syrian Army (FSA) it’s winning territory, desert and urban, in both Syria and Iraq; an area bigger than Great Britain already, holding at least 6 million people.
  • As for the much-peddled Washington myth of ‘good’ and ‘bad’ jihadists, the Caliphate also exploded it. Virtually every jihadi Washington - and Riyadh – weaponized and trained in Jordan and in the Turkey-Syria border is now among the Caliph’s goons, wallowing in cash raised from oil smuggling, hardcore blackmail and ‘donations’, and weaponized to their teeth after looting four Iraqi divisions and a Syrian brigade. As for the GWOT gift, it will keep on giving in a bigger and bigger bang because of the dream narrative now displayed for every aspiring multinational jihadi; we are now defending our Caliphate from the mighty Crusader Air Force, no less. The US lost the war in Iraq, miserably, only nine days after the fall of Baghdad, in April 2003. No ‘humanitarian’ bombing will turn it into a victory. And no ‘humanitarian’ bombing will finish the Caliphate off. As for prospective presidential candidate Hillary Clinton, she’s taking no prisoners. She insists the US should have bombed Syria in the first place; then there would be no Caliphate. But now she worries the Caliph will attack Europe and even the US (“I’m thinking a lot about containment, deterrence and defeat”). Predictably positioning herself, Clinton could not but totally dismiss Obama’s foreign policy doctrine, a.k.a. ‘Don’t do stupid stuff’: “‘Don’t do stupid stuff’ is not an organizing principle.” So the world will have to wait until 2017, when she’s finally able to implement her own doctrine/organizing principle: “We came, we saw, he died.”
  • This is the way the multi-trillion dollar Global War on Terror (GWOT) ends: not with a bang, but with a bigger bang. The GWOT, since its conceptualization 13 years ago, in the aftermath of 9/11, is the gift that keeps on giving. And no gift is bigger than a Transformer Al-Qaeda on steroids – bigger, brasher, and wealthier than anything Osama Bin Laden and Ayman al-Zawahiri had ever dreamt of; the IS (Islamic State, formerly known as ISIS) of Caliph Ibrahim, former Abu Bakr al-Baghdadi. US President Barack Obama, before deploying his golf holidays in Martha’s Vineyard, casually dropped that bombing the Caliph’s goons in Iraq will take months. One may interpret it as another layer of the Obama administration’s self-avowed “Don't Do Stupid Stuff” foreign policy doctrine, not so subtly mocked by prospective presidential candidate Hillary Clinton. Shock and Awe in 2003 destroyed the whole of Baghdad’s infrastructure in only a few hours. Obama also confirmed the US was showering Iraq again with humanitarian bombing “to protect American interests” (first and foremost) and, as an afterthought, “human rights in Iraq.”
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    "Enter Benghazi. This is an electoral year. Obama is absolutely terrified of another Benghazi - which Republicans have been trying non-stop to blame on his administration's incompetence. The last thing Obama needs is the Caliph's goons killing 'diplomats' in Erbil. "That would certainly raise a tsunami of questions all over again about the shady CIA weapon-smuggling racket - as in arming Syrian 'rebels' with weapons from Libya - at the time Benghazi took place. As secretary of state, Hillary Clinton, of course, also knew about it all. But then, and especially now, no one should know that the CIA was weaponizing the bulk of the future Caliph's forces." Yup. It's the same reason that the House investigation of the Benghazi incident will never punch through to the truth. The War Party doesn't want its Benghazi CIA ratline for Libyan weapons to Turkey being exposed because that leads directly to the fact that ISIS is a U.S.-Saudi creation. Remember Wayne Madsen's article on why Obama backed down from his planned missile and bombing attack on Syria after the Ghouta false flag Sarin attack in August 2013: ""Some within the Pentagon ranks are so displeased with Obama's policies on Syria, they have let certain members of Congress of both parties know that «smoking gun» proof exists that Obama and CIA director John O. Brennan personally authorized the transfer of arms and personnel from Al-Qaeda-linked Ansar al Sharia Islamist rebels in Libya to Syria's Jabhat al Nusra rebels, who are also linked to Al Qaeda, in what amounts to an illegal «Iran-contra»-like scandal." http://www.strategic-culture.org/news/2013/09/04/american-generals-stand-between-war-and-peace.html And the detailed confirmation that events had actually transpired in accordance with that plan by Yossef Bodansky - Director of the Congressional Task Force on Terrorism and Unconventional Warfare of the US House of Representatives from 1988 to 2004 and the center of an enormous global
Paul Merrell

Isis gains in Syria put pressure on west to deliver more robust response | World news |... - 0 views

  • As US aircraft continued to pound the Islamist militants in northern Iraq, the Obama administration was studying a range of options for pressuring Isis in Syria, primarily through training "moderate" Syrian rebels as a proxy force, with air strikes as a possible backup.
  • The favoured option, according to two administration officials, is to press forward with a training mission, led by elite special operations forces, aimed at making non-jihadist Syrians an effective proxy force. But the rebels are outgunned and outnumbered by Isis and the administration still has not received $500m from Congress for its rebel training plans. Pentagon officials said they had yet to work out what the training program would actually look like, where it will be hosted, or if air strikes on Isis targets in Syria will support it. For all the internal administration focus on propping up moderate Syrian rebels, the US military would not be able to begin training them until October, the earliest that Congressional approval could be obtained for the required funding and authorisation. Kirby said he was unaware of any "plan to accelerate it". Nor have critical details for the training program been worked out, despite it being effectively the lynchpin of what the administration considers a long-term plan to defeat Isis. "I can't tell you where it would take place, or how many people would be trained, and there's still a vetting process that needs to be fully developed here," Kirby conceded.
  • the White House went further than before in its condemnation of Isis, describing the killing of Foley as an act of terrorism. "When we see somebody killed in such a horrific way, that represents a terrorist attack against our country and against an American citizen, Rhodes said, saying the US would do whatever necessary to protect Americans in future."We are actively considering what is necessary to deal with that threat and we are not going to be restricted by borders," said Rhodes, briefing reporters at Martha's Vineyard, where the president is on vacation.
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    That is not a winning strategy. The Free Syrian Army has been a joke from the beginning, a largely fictional entity composed of "moderates" used as political cover for the U.S. to smuggle weapons to mercenaries paid by Saudi Arabia that operated under the "Al Nusrah" flag. Most of Al Nusrah and the FSF joined ISIS after the U.S. attack on Syria was called off last year. The real "moderates" in Syria are fighting for the Syrian government. So I view this "strategy" as mere window dressing so the Obama Administration can claim that it has one. 
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    That is not a winning strategy. The Free Syrian Army has been a joke from the beginning, a largely fictional entity composed of "moderates" used as political cover for the U.S. to smuggle weapons to mercenaries paid by Saudi Arabia that operated under the "Al Nusrah" flag. Most of Al Nusrah and the FSF joined ISIS after the U.S. attack on Syria was called off last year. The real "moderates" in Syria are fighting for the Syrian government. So I view this "strategy" as mere window dressing so the Obama Administration can claim that it has one. 
Paul Merrell

Responding to Failure: Reorganizing U.S. Policies in the Middle East | Middle East Poli... - 0 views

  • I want to speak with you today about the Middle East. This is the region where Africa, Asia, and Europe come together. It is also the part of the world where we have been most compellingly reminded that some struggles cannot be won, but there are no struggles that cannot be lost. It is often said that human beings learn little useful from success but can learn a great deal from defeat. If so, the Middle East now offers a remarkably rich menu of foreign-policy failures for Americans to study. • Our four-decade-long diplomatic effort to bring peace to the Holy Land sputtered to an ignominious conclusion a year ago. • Our unconditional political, economic, and military backing of Israel has earned us the enmity of Israel’s enemies even as it has enabled egregiously contemptuous expressions of ingratitude and disrespect for us from Israel itself.
  • • Our attempts to contain the Iranian revolution have instead empowered it. • Our military campaigns to pacify the region have destabilized it, dismantled its states, and ignited ferocious wars of religion among its peoples. • Our efforts to democratize Arab societies have helped to produce anarchy, terrorism, dictatorship, or an indecisive juxtaposition of all three. • In Iraq, Libya, and Syria we have shown that war does not decide who’s right so much as determine who’s left. • Our campaign against terrorism with global reach has multiplied our enemies and continuously expanded their areas of operation. • Our opposition to nuclear proliferation did not prevent Israel from clandestinely developing nuclear weapons and related delivery systems and may not preclude Iran and others from following suit.
  • • At the global level, our policies in the Middle East have damaged our prestige, weakened our alliances, and gained us a reputation for militaristic fecklessness in the conduct of our foreign affairs. They have also distracted us from challenges elsewhere of equal or greater importance to our national interests. That’s quite a record.
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  • One can only measure success or failure by reference to what one is trying achieve. So, in practice, what have U.S. objectives been? Are these objectives still valid? If we’ve failed to advance them, what went wrong? What must we do now to have a better chance of success? Our objectives in the Middle East have not changed much over the course of the past half century or more. We have sought to 1. Gain acceptance and security for a Jewish homeland from the other states and peoples of the region; 2. Ensure the uninterrupted availability of the region’s energy supplies to sustain global and U.S. security and prosperity; 3. Preserve our ability to transit the region so as to be able to project power around the world; 4. Prevent the rise of a regional hegemon or the deployment of weapons of mass destruction that might threaten any or all of these first three objectives; 5. Maximize profitable commerce; and 6. Promote stability while enhancing respect for human rights and progress toward constitutional democracy. Let’s briefly review what’s happened with respect to each of these objectives. I will not mince words.
  • Israel has come to enjoy military supremacy but it remains excluded from most participation in its region’s political, economic, and cultural life. In the 67 years since the Jewish state was proclaimed, Israel has not made a single friend in the Middle East, where it continues to be regarded as an illegitimate legacy of Western imperialism engaged in racist removal of the indigenous population. International support for Israel is down to the United States and a few of the former colonial powers that originally imposed the Zionist project on the Arabs under Sykes-Picot and the related Balfour Declaration. The two-state solution has expired as a physical or political possibility. There is no longer any peace process to distract global attention from Israel’s maltreatment of its captive Arab populations. After years of deference to American diplomacy, the Palestinians are about to challenge the legality of Israel’s cruelties to them in the International Criminal Court and other venues in which Americans have no veto, are not present, or cannot protect the Jewish state from the consequences of its own behavior as we have always been able to do in the past. Israel’s ongoing occupation of the West Bank and siege of Gaza are fueling a drive to boycott its products, disinvest in its companies, and sanction its political and cultural elite. These trends are the very opposite of what the United States has attempted to achieve for Israel.
  • Despite Mr. Netanyahu’s recent public hysteria about Iran and his efforts to demonize it, Israel has traditionally seen Iran’s rivalry with the Arabs as a strategic asset. It had a very cooperative relationship with the Shah. Neither Israelis nor Arabs have forgotten the strategic logic that produced Israel's entente with Iran. Israel is very much on Daesh’s list of targets, as is Iran. For now, however, Israel’s main concern is the possible loss of its nuclear monopoly in the Middle East. Many years ago, Israel actually did what it now accuses Iran of planning to do. It clandestinely developed nuclear weapons while denying to us and others that it was doing so. Unlike Iran, Israel has not adhered to the Nuclear Non-Proliferation Treaty or subjected its nuclear facilities to international inspection. It has expressed no interest in proposals for a nuclear-free zone in the Middle East. It sees its ability to bring on nuclear Armageddon as the ultimate guarantee of its existence.
  • The late King `Abdullah of Saudi Arabia engineered a reversal of decades of Arab rejectionism at Beirut in 2002. He brought all Arab countries and later all 57 Muslim countries to agree to normalize relations with Israel if it did a deal — any deal — with the Palestinians that the latter could accept. Israel spurned the offer. Its working assumption seems to be that it does not need peace with its neighbors as long as it can bomb and strafe them. Proceeding on this basis is not just a bad bet, it is one that is dividing Israel from the world, including Jews outside Israel. This does not look like a story with a happy ending. It’s hard to avoid the thought that Zionism is turning out to be bad for the Jews. If so, given the American investment in it, it will also have turned out to be bad for America. The political costs to America of support for Israel are steadily rising. We must find a way to divert Israel from the largely self-engineered isolation into which it is driving itself, while repairing our own increasing international ostracism on issues related to Israel.  
  • In a stunning demonstration of his country’s most famous renewable resource — chutzpah — Israel’s Prime Minister chose this very moment to make America the main issue in his reelection campaign while simultaneously transforming Israel into a partisan issue in the United States. This is the very opposite of a sound survival strategy for Israel. Uncertainties about their country’s future are leading many Israelis to emigrate, not just to America but to Europe. This should disturb not just Israelis but Americans, if only because of the enormous investment we have made in attempts to gain a secure place for Israel in its region and the world. The Palestinians have been silent about Mr. Netanyahu’s recent political maneuvers. Evidently, they recall Napoleon’s adage that one should never interrupt an enemy when he is making a mistake. This brings me to an awkward but transcendently important issue. Israel was established as a haven from anti-Semitism — Jew hatred — in Europe, a disease of nationalism and Christian culture that culminated in the Holocaust. Israel’s creation was a relief for European Jews but a disaster for the Arabs of Palestine, who were either ethnically cleansed by European Jewish settlers or subjugated, or both.  But the birth of Israel also proved tragic for Jews throughout the Middle East — the Mizrahim. In a nasty irony, the implementation of Zionism in the Holy Land led to the introduction of European-style anti-Semitism — including its classic Christian libels on Jews — to the region, dividing Arab Jews from their Muslim neighbors as never before and compelling them to join European Jews in taking refuge in Israel amidst outrage over the dispossession of Palestinians from their homeland. Now, in a further irony, Israel’s pogroms and other injustices to the Muslim and Christian Arabs over whom it rules are leading not just to a rebirth of anti-Semitism in Europe but to its globalization.
  • To many, Israel now seems to have acquired the obnoxious habit of biting the American hand that has fed it for so long. The Palestinians have despaired of American support for their self-determination. They are reaching out to the international community in ways that deliberately bypass the United States. Random acts of violence herald mayhem in the Holy Land. Daesh has proclaimed the objective of erasing the Sykes-Picot borders and the states within them. It has already expunged the border between Iraq and Syria. It is at work in Lebanon and has set its sights on Jordan, Palestine, and Israel. Lebanon, under Saudi influence, has turned to France rather than America for support. Hezbollah has intervened militarily in Iraq and Syria, both of whose governments are close to Iran. Egypt and Turkey have distanced themselves from the United States as well as from each other. Russia is back as a regional actor and arms supplier. The Gulf Arabs, Egypt, and Turkey now separately intervene in Libya, Syria, and Iraq without reference to American policy or views. Iran is the dominant influence in Iraq, Syria, parts of Lebanon, and now Yemen. It has boots on the ground in Iraq. And now Saudi Arabia seems to be organizing a coalition that will manage its own nuclear deterrence and military balancing of Ir
  • To describe this as out of control is hardly adequate. What are we to do about it? Perhaps we should start by recalling the first law of holes — “when stuck in one, stop digging.” It appears that “don’t just sit there, bomb something” isn’t much of a strategy. When he was asked last summer what our strategy for dealing with Daesh was, President Obama replied, “We don’t yet have one.” He was widely derided for that. He should have been praised for making the novel suggestion that before Washington acts, it should first think through what it hopes to accomplish and how best to do it. Sunzi once observed that “tactics without strategy is the noise before defeat." America’s noisy but strategy-free approach to the Middle East has proven him right. Again the starting point must be what we are trying to accomplish. Strategy is "the discipline of achieving desired ends through the most efficient use of available means" [John Lewis Gaddis].Our desired ends with respect to the Middle East are not in doubt. They have been and remain to gain an accepted and therefore secure place for Israel there; to keep the region's oil and gas coming at reasonable prices; to be able to pass through the area at will; to head off challenges to these interests; to do profitable business in the markets of the Middle East; and to promote stability amidst the expansion of liberty in its countries. Judging by results, we have been doing a lot wrong. Two related problems in our overall approach need correction. They are “enablement” and the creation of “moral hazard.” Both are fall-out from  relationships of codependency.
  • Enablement occurs when one party to a relationship indulges or supports and thereby enables another party’s dysfunctional behavior. A familiar example from ordinary life is giving money to a drunk or a drug addict or ignoring, explaining away, or defending their subsequent self-destructive behavior.  Moral hazard is the condition that obtains when one party is emboldened to take risks it would not otherwise take because it knows another party will shoulder the consequences and bear the costs of failure. The U.S.-Israel relationship has evolved to exemplify codependency. It now embodies both enablement and moral hazard. U.S. support for Israel is unconditional.  Israel has therefore had no need to cultivate relations with others in the Middle East, to declare its borders, or to choose peace over continued expansion into formerly Arab lands. Confidence in U.S. backing enables Israel to do whatever it likes to the Palestinians and its neighbors without having to worry about the consequences. Israel is now a rich country, but the United States continues to subsidize it with cash transfers and other fiscal privileges. The Jewish state is the most powerful country in the Middle East. It can launch attacks on its neighbors, confident that it will be resupplied by the United States. Its use of U.S. weapons in ways that violate both U.S. and international law goes unrebuked. 41 American vetoes in the United Nations Security Council have exempted Israel from censure and international law. We enable it to defy the expressed will of the international community, including, ironically, our own.
  • We Americans are facilitating Israel's indulgence in denial and avoidance of the choices it must make if it is not to jeopardize its long-term existence as a state in the Middle East. The biggest contribution we could now make to Israel's longevity would be to ration our support for it, so as to cause it to rethink and reform its often self-destructive behavior. Such peace as Israel now enjoys with Egypt, Jordan, and the Palestinians is the direct result of tough love of this kind by earlier American administrations. We Americans cannot save Israel from itself, but we can avoid killing it with uncritical kindness. We should support Israel when it makes sense to do so and it needs our support on specific issues, but not otherwise. Israel is placing itself and American interests in jeopardy. We need to discuss how to reverse this dynamic.
  • Moral hazard has also been a major problem in our relationship with our Arab partners. Why should they play an active role in countering the threat to them they perceive from Iran, if they can get America to do this for them? Similarly, why should any Muslim country rearrange its priorities to deal with Muslim renegades like Daesh when it can count on America to act for it? If America thinks it must lead, why not let it do so? But responsible foreign and defense policies begin with self-help, not outsourcing of military risks. The United States has the power-projection and war-fighting capabilities to back a Saudi-led coalition effort against Daesh. The Saudis have the religious and political credibility, leadership credentials, and diplomatic connections to organize such an effort. We do not. Since this century began, America has administered multiple disappointments to its allies and friends in the Middle East, while empowering their and our adversaries. Unlike the Gulf Arabs, Egypt, and Turkey, Washington does not have diplomatic relations with Tehran. Given our non-Muslim identity, solidarity with Israel, and recent history in the Fertile Crescent, the United States cannot hope to unite the region’s Muslims against Daesh.  Daesh is an insurgency that claims to exemplify Islam as well as a governing structure and an armed force. A coalition led by inhibited foreign forces, built on papered-over differences, and embodying hedged commitments will not defeat such an insurgency with or without boots on the ground.
  • When elections have yielded governments whose policies we oppose, we have not hesitated to conspire with their opponents to overthrow them. But the results of our efforts to coerce political change in the Middle East are not just failures but catastrophic failures. Our policies have nowhere produced democracy. They have instead contrived the destabilization of societies, the kindling of religious warfare, and the installation of dictatorships contemptuous of the rights of religious and ethnic minorities. Frankly, we have done a lot better at selling things, including armaments, to the region than we have at transplanting the ideals of the Atlantic Enlightenment there. The region’s autocrats cooperate with us to secure our protection, and they get it. When they are nonetheless overthrown, the result is not democracy or the rule of law but socio-political collapse and the emergence of  a Hobbesian state of nature in which religious and ethnic communities, families, and individuals are able to feel safe only when they are armed and have the drop on each other. Where we have engineered or attempted to engineer regime change, violent politics, partition, and ethno-religious cleansing have everywhere succeeded unjust but tranquil order. One result of our bungled interventions in Iraq and Syria is the rise of Daesh. This is yet another illustration that, in our efforts to do good in the Middle East, we have violated the principle that one should first do no harm.
  • Americans used to believe that we could best lead by example. We and those in the Middle East seeking nonviolent change would all be better off if America returned to that tradition and forswore ideologically motivated hectoring and intervention. No one willingly follows a wagging finger. Despite our unparalleled ability to use force against foreigners, the best way to inspire them to emulate us remains showing them that we have our act together. At the moment, we do not. In the end, to cure the dysfunction in our policies toward the Middle East, it comes down to this. We must cure the dysfunction and venality of our politics. If we cannot, we have no business trying to use an 8,000-mile-long screwdriver to fix things one-third of the way around the world. That doesn’t work well under the best of circumstances. But when the country wielding the screwdriver has very little idea what it’s doing, it really screws things up.
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    Chas Freeman served as US ambassador to Saudi Arabia during the war to liberate Kuwait and as Assistant Secretary of Defense from 1993-94. He was the editor of the Encyclopedia Britannica entry on "diplomacy" and is the author of five books, including "America's Misadventures in the Middle East" and "Interesting Times: China, America, and the Shifting Balance of Prestige."  I have largely omitted highlighting portions of the speech dealing with Muslim nations because Freeman has apparently lost touch with the actual U.S., Saudi, UAE, Kuwait, and Turish roles in creating and expanding ISIL. But his analysis of Israel's situation and recommendations for curing it seem quite valid, as well as his overall Mideast recommendation to heed the First Law of Holes: "when stuck in one, stop digging."   I recommend reading the entire speech notwithstanding his misunderstanding of ISIL. There is a lot of very important history there ably summarized.
Paul Merrell

Edward Snowden asks for asylum in Ecuador: live updates | World news | guardian.co.uk - 0 views

  • The NSA whistleblower left Hong Kong on an Aeroflot flight to Moscow, two days after the US charged him with espionage, before applying for asylum in Ecuador
  • WikiLeaks has released a statement claiming that Snowden is "bound for Ecuador" and is awaiting the processing of his application for asylum:  Mr Edward Snowden, the American whistleblower who exposed evidence of a global surveillance regime conducted by US and UK intelligence agencies, has left Hong Kong legally. He is bound for the Republic of Ecuador via a safe route for the purposes of asylum, and is being escorted by diplomats and legal advisors from WikiLeaks. Mr Snowden requested that WikiLeaks use its legal expertise and experience to secure his safety. Once Mr Snowden arrives in Ecuador his request will be formally processed. Former Spanish Judge Mr Baltasar Garzon, legal director of Wikileaks and lawyer for Julian Assange has made the following statement: "The WikiLeaks legal team and I are interested in preserving Mr Snowden’s rights and protecting him as a person. What is being done to Mr Snowden and to Mr Julian Assange - for making or facilitating disclosures in the public interest - is an assault against the people".
  • It’s past midnight in Hong Kong and late evening in Moscow, so time for a summary of the events so far on a day of extraordinary drama: • Edward Snowden, the NSA contractor whose revelations to the Guardian about the scale and scope of US spying and hacking activities has prompted global headlines, has fled Hong Kong and is now in Moscow. • His plane arrived in Russia shortly after 5pm local time. Snowden is not believed to have a Russian visa and is thought to be staying overnight at a capsule hotel inside Moscow's Sheremetyevo airport after reportedly being met on the tarmac by diplomatic cars.
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  • • Snowden was allowed to leave despite the US having filed a request for Hong Kong to arrest him. Hong Kong’s government said the documents sent by Washington did not fully meet legal requirements, the statement added, so Snowden was allowed to leave. It has since been reported that the US revoked Snowden’s passport on Saturday. It is not clear how he was allowed to leave Hong Kong if this happened. • Snowden is reportedly booked on a flight on Monday from Moscow to Havana, after which he is believed to be heading for another Latin American destination, reported variously as Venezuela or Ecuador. • The Ecuadorean ambassador to Russia is at the airport but said he had not met Snowden and was not entirely sure where he is.  • WikiLeaks has claimed in tweets it "assisted Mr Snowden's political asylum in a democratic country" and that its "legal advisers" are with him, including Sarah Harrison, a WikiLeaks staffer.
  • • There has been an angry reaction in the US to news of Snowden’s departure. Keith Alexander, head of the NSA, called Snowden “an individual who is not acting, in my opinion, with noble intent". • Snowden's departure came on the same day the South China Morning Post carried detailed reports of claims from him about US actions against China, including allegations of the hacking of phone text messages. China has said it is “gravely concerned” about the revelations. The country’s Xinhua news agency called the US “the biggest villain in our age" when it comes to hacking.
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    My favorite part so far, NSA head Gen. Keith Alexander called Snowden "an individual who is not acting, in my opinion, with noble intent". Let's consider for a moment that as a U.S. Army officer, Gen. Alexander, initially and upon each promotion, was required to "solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic, that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservations or purpose of evasion; and that I will well and faithfully discharge the duties of the office upon which I am about to enter; So help me God."  http://www.army.mil/values/officers.html So what part of "support and defend the Constitution of the United States" is it that he didn't catch? U.S. military officers are required by law to disobey illegal commands. Can this man seriously believe that his mission does not violate the U.S. Constitution?  The Fourth and Fifth Amendments were direct reactions to the British Army's practice of invading Colonist's homes at will. destroying their privacy and seizing anything in sight including its residents, their papers, their personal effects, and their property without judicial warrant or due process and just compensation. But that is just what Gen. Alexander assists in. He is a usurper of our Constitution. But let's compare the courage of Edward Snowden and Keith Alexander: "Common experience shows how much rarer is moral courage than physical bravery.  A thousand men will march to the mouth of the cannon where one man will dare espouse an unpopular cause." - Clarence Darrow   "Few are willing to brave the disapproval of their fellows, the censure of the colleagues, the wrath of their society. Moral courage is a rarer commodity than bravery in battle or great intelligence. Yet it is the one essential, vital quality for those who seek to change a world that yields most painfully to change." -
Paul Merrell

Israel's Raid On Syria, Russia Enters The Fray - 0 views

  • The Russians have now formally confirmed earlier media reports that following the Israeli air raid on Syria on Friday the Israeli ambassador in Moscow was called in to the Russian Foreign Ministry to be handed a stern lecture and a stiff protest. Moscow’s confirmation of the Russian protest to Israel, and the fact that the Israeli ambassador was summoned to the Russian Foreign Ministry within hours of the raid taking place, shows how seriously the Russians are treating this incident. What is most interesting – and worrying – about this incident is not whether or not an Israeli aircraft was shot down.  The Syrians regularly claim to have shot down Israel aircraft, and the Israelis equally regularly deny this was the case.  The Syrians have provided no evidence of any Israeli aircraft being shot down, and it is unlikely one was.
  • Rather what is worrying about this incident is that the Syrians claim that the air raid targeted Syrian military facilities near Palmyra – deep inside Syria – and that the Syrians were sufficiently concerned about the air strike that they in turn attempted to shoot the Israeli aircraft down whilst they were flying over Israeli territory.
  • The Israelis have not admitted that the target of the strike was near Palmyra.  However they have not denied it either, and unofficial reports from Israel suggest the target of the strike was in fact Syria’s Tiyas or T4 air base, which is located in the general area of Palmyra.
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  • The Russians for their part have never been known to call in the Israeli ambassador over an Israeli air raid in Syria at any time since Russia began its intervention in Syria in September 2015.  That they have done so in this case shows how seriously they are treating this incident. Lastly, the blustering response from the Israelis, with Netanyahu issuing thinly veiled warnings to Moscow and the Israelis bragging about their ability to destroy Syria’s air defenses and threatening to do so “without the slightest hesitation”, suggests that they are rattled, and that they have been taken by surprise and are alarmed by the Syrian and Russian response.
  • Contrary to some claims, the Tiyas air base has never been captured by ISIS or by any other Jihadi group, though ISIS did unsuccessfully attempt to capture it following its temporary capture of Palmyra last December. Tiyas is one of Syria’s biggest air bases, and was the base from which the Syrian army launched its counter-offensive which recaptured Palmyra a few weeks ago.  Tiyas is now providing critical support to the ongoing Syrian military offensive against ISIS, whose ultimate objective appears to be the relief of the besieged eastern desert city of Deir Ezzor. Unofficially, the Israelis always claim that their air strikes in Syria are intended to prevent weapons supplies to Hezbollah.  In this case unofficial claims are circulating in Israel that the air strike was intended to stop a handover of Scud missiles at the Tiyas air base by Syria to Hezbollah. This is on the face of it extremely unlikely.  There are no reports of Hezbollah fighters present in any number near Palmyra or at the Tiyas base, or of them being involved in the ongoing Syrian military offensive against ISIS.  It is anyway unlikely that the Syrians would use the Tiyas air base – close to the front line in the fight against ISIS and far away from Hezbollah’s bases in Lebanon – in order to supply Scud missiles to Hezbollah.  If the Syrians really were transferring such powerful weapons to Hezbollah, a far more likely place for them to do it would be Damascus. A far more natural explanation for the Israeli raid is that it was intended to disrupt the ongoing Syrian army offensive against ISIS, which relies heavily on smooth operation of the Tiyas air base.  This after all is what the Syrian military is quoted by SANA (see above) as saying was the reason for the raid “This blatant Israeli act of aggression came as part of the Zionist enemy’s persistence with supporting ISIS terrorist gangs and in a desperate attempt to raise their deteriorating morale and divert attention away from the victories which Syrian Arab Army is making in the face of the terrorist organizations.” There have been persistent reports throughout the Syrian war that Israel would prefer a Jihadi victory or even an ISIS victory in Syria to the restoration of the Syrian government’s full control over Syria.
  • The Syrian government’s major regional allies are Iran and Hezbollah, which Israel has come to see as its major enemies, so the possibility that Israel might wish to see the Syrian government defeated is not in itself unlikely.  Possibly rather than an outright Jihadi victory, which might cause Israel serious problems in the future, what some tough minded people in Israel want is an indefinite prolongation of the war, so as to tie down the Syrian military, Hezbollah and Iran, preventing them from challenging Israel. If that is indeed the thinking of some people in Tel Aviv, then it would explain the raid on the Tiyas air base.  It would however be an astonishingly reckless and cynical thing to do, to support an organisation like ISIS in order to disrupt the alliance between Syria, Iran and Hezbollah. Of course there is a widespread view that it was precisely in order to disrupt this alliance between Syria, Iran and Hezbollah that the Syrian war was launched in the first place.   Whether or not that is so, and whether or not Israel had any part in that, the Israelis now need to reconsider their stance.  On any objective assessment their tactic of providing discrete backing to ISIS and to the other Jihadi groups fighting the Syrian government is achieving the opposite of Israel’s interests. Instead of weakening or breaking the alliance between Syria, Iran and Hezbollah, the Syrian war has made it stronger, with Iran and Hezbollah both coming to Syria’s rescue, and Iraq increasingly cooperating with them in doing so.  The result is that Iran’s influence in Syria has grown stronger so that there is now even talk of Iran establishing a naval base in Syria, whilst Hezbollah is probably stronger than it has ever been before. The Syrian military is also becoming significantly stronger, with the incident of the raid showing that technical help from Russia has now made it possible for the Syrians to track and intercept Israeli aircraft over Israeli territory. The Syrian war has also caused Russia to intervene in Syria, making Russia a de facto ally of Syria, Iran and Hezbollah.
  • The result is that Russia is now busy establishing a massive air defense and military base complex in Syria, which for the first time has brought a military superpower with far greater technological and military resources than Israel’s own close to Israel’s border. The result is that for the first time in its history – apart from the brief period of the so-called War of Attrition (‘Operation Kavkaz’) of 1970 – Israel’s military dominance in the region of the region is being seriously challenged.  Already there are reports that the Russian air defence system in Syria is too advanced for the Israelis to defeat, and that the Russians have the ability to track every single Israeli aircraft that takes off in Israel itself. Lastly, the Russian protest to Israel on Friday shows that the Russians are prepared to speak up for Syria if it is being attacked or threatened.
  •  
    The big question is whether Russia said it would --- and will --- use its S5 missile systems now located in Syria to defend the Syrian military.
Paul Merrell

BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit - Bloomberg - 0 views

  • Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation. The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
  • Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms. “The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”
  • Moody’s Investors Service downgraded Bank of America’s long-term credit ratings Sept. 21, cutting both the holding company and the retail bank two notches apiece. The holding company fell to Baa1, the third-lowest investment-grade rank, from A2, while the retail bank declined to A2 from Aa3.
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  • The Moody’s downgrade spurred some of Merrill’s partners to ask that contracts be moved to the retail unit, which has a higher credit rating, according to people familiar with the transactions. Transferring derivatives also can help the parent company minimize the collateral it must post on contracts and the potential costs to terminate trades after Moody’s decision, said a person familiar with the matter. Bank of America estimated in an August regulatory filing that a two-level downgrade by all ratings companies would have required that it post $3.3 billion in additional collateral and termination payments, based on over-the-counter derivatives and other trading agreements as of June 30. The figure doesn’t include possible collateral payments due to “variable interest entities,” which the firm is evaluating, it said in the filing.
  • Derivatives are financial instruments used to hedge risks or for speculation. They’re derived from stocks, bonds, loans, currencies and commodities, or linked to specific events such as changes in the weather or interest rates. Dodd-Frank Rules Keeping such deals separate from FDIC-insured savings has been a cornerstone of U.S. regulation for decades, including last year’s Dodd-Frank overhaul of Wall Street regulation. The legislation gave the FDIC, which liquidates failing banks, expanded powers to dismantle large financial institutions in danger of failing. The agency can borrow from the Treasury Department to finance the biggest lenders’ operations to stem bank runs. It’s required to recoup taxpayer money used during the resolution process through fees on the largest firms.
  • Bank of America’s holding company -- the parent of both the retail bank and the Merrill Lynch securities unit -- held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades. 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.
  • Moving derivatives contracts between units of a bank holding company is limited under Section 23A of the Federal Reserve Act, which is designed to prevent a lender’s affiliates from benefiting from its federal subsidy and to protect the bank from excessive risk originating at the non-bank affiliate, said Saule T. Omarova, a law professor at the University of North Carolina at Chapel Hill School of Law. “Congress doesn’t want a bank’s FDIC insurance and access to the Fed discount window to somehow benefit an affiliate, so they created a firewall,” Omarova said. The discount window has been open to banks as the lender of last resort since 1914. As a general rule, as long as transactions involve high- quality assets and don’t exceed certain quantitative limitations, they should be allowed under the Federal Reserve Act, Omarova said.
  • In 2009, the Fed granted Section 23A exemptions to the banking arms of Ally Financial Inc., HSBC Holdings Plc, Fifth Third Bancorp, ING Groep NV, General Electric Co., Northern Trust Corp., CIT Group Inc., Morgan Stanley and Goldman Sachs Group Inc., among others, according to letters posted on the Fed’s website. The central bank terminated exemptions last year for retail-banking units of JPMorgan, Citigroup, Barclays Plc, Royal Bank of Scotland Plc and Deutsche Bank AG. The Fed also ended an exemption for Bank of America in March 2010 and in September of that year approved a new one. Section 23A “is among the most important tools that U.S. bank regulators have to protect the safety and soundness of U.S. banks,” Scott Alvarez, the Fed’s general counsel, told Congress in March 2008.
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    So according to Bloomberg, JPMorgan's commercial bank was the recipient of 99 percent of JPMorgan's $79 trillion (face value of derivatives) in bad bets. So adding JPMorgan's $78 trillion or so to the $75 trillion in bad bets Bank of America unloaded on its FDIC insured subsidiary, we arrive at $153 trillion in bad bets moved by two investment banks alone under the FDIC umbrella. Meanwhile, FDIC has authority under Dodd-Frank to liquidate these insolvent banks but doesn't, despite several successful lawsuits to recover the value of toxic derivatives that they sold to smaller banks that failed (which implies that FDIC could tell JPMorgan and BoA's investment banksters that they've got to pay off the toxic assets they transferred to their commercial banks, rather than diluting the insurance for normal depositors. Problem: the two big investment banks don't have sufficient assets to absorb those losses, so the too-politically-connected-to-fail factor kicks in. Note that I have not done any legal research in regard to these issues and am basing these observations on what has been stated about legal requirements in various media articles.
Gary Edwards

Is Obama the Head of a Secret Cult? A 15-Point Test. | Casey Research - 0 views

  • But what really amazes me are those ideas that even a little reflection and study reveal as ridiculous, but that nonetheless gain a large and devoted following. For instance, that big government—in truth, little more than a motley collection of meddlesome bureaucrats advised by rent-seeking, ivory-tower academics—are in possession of the solutions to all of society's ills.
  • All of which got me to thinking about this odd trait of humans to form associations around bad ideas, and that, in turn, led me to think about the nature of cults. After all, can there be a more ridiculous idea than becoming a trained lapdog to some modern-day messiah? Yet, how does one go from being a go-along-to-get-along kind of person one day to lining up for a fatal dose of poison, thoughtfully flavored with grape Kool-Aid, the next? Or signing up to become a gunman willing to kill or be killed in a foreign adventure in support of a half-baked idea that's cast as somehow being in the "national interest," when even a cursory examination would tell you it's not?
  • Both of those examples are in diametric opposition to self-preservation, the most fundamental of all human instincts.
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  • Less dramatically but yet still with serious consequences, how is it that otherwise rational people come to accept the idea that widespread economic success can flow from the loins of a bureaucracy that produces nothing but regulatory chains on the aspirations of individuals looking to better their lives and those of their families? And when that success fails to materialize, readily accept the idea that the Fed can pump money out by the trillions with no negative effect? In any event, I started poking around the literature of various organizations specializing in the study of mind control and found what I think are some interesting lessons for us all in the studies of cults. After all, if psychological buttons can be pushed in a combination that leads to drinking poisoned Kool-Aid, you can sure as hell bet they can be pushed to get you to vote for a string of sociopathic poseurs… or to dedicate a large chunk of your life and charitable giving to causes that have little connection to reality. Or to decide to create a Facebook page titled, "I love it when I wake up in the morning and Barack Obama is President." In fact, based on the guidelines provided by the International Cult Studies Association (ICSA), you or someone you know may already be in a cult and not even be aware of it. Worse, the president himself might be the head of a cult! There are 15 separate traits the ICSA identifies as common among cults. Ticking through them should prove informative.
  • The group displays excessively zealous and unquestioning commitment to its leader and regards his belief system, ideology, and practices as "the Truth."
  • Questioning, doubt, and dissent are discouraged or even punished.
  • Mind-altering practices are used in excess and serve to suppress doubts about the group and its leader(s).
  • The leadership dictates, sometimes in great detail, how members should think, act, and feel
  • The group is elitist, claiming a special, exalted status for itself, its leader(s), and members.
  • Members are encouraged or required to live and/or socialize only with other group members.
  • The leader is not accountable to any authorities.
  • The group teaches or implies that its supposedly exalted ends justify whatever means it deems necessary.
  • The leadership induces feelings of shame and/or guilt in order to influence and/or control members. Often, this is done through peer pressure and subtle forms of persuasion.
  • Subservience to the leader or group requires members to cut ties with family and friends, and radically alter the personal goals and activities they had before joining the group.
  • The group is preoccupied with bringing in new members.
  • The group is preoccupied with making money.
  • Members are expected to devote inordinate amounts of time to the group and group-related activities.
  • The group has a polarized us-versus-them mentality, which may cause conflict with the wider society.
  • The most loyal members (the "true believers") feel there can be no life outside the context of the group. They believe there is no other way to be, and often fear reprisals to themselves or others if they leave (or even consider leaving) the group.
  • How to Spot a Pathological Liar
  • In researching the nature of cults, I took a side street to investigate the mental condition called "pseudologia fantastica," or in lay terms, a mental condition where individuals become pathological liars. I did so because I wondered how politicians can spew forth their untruths with straight faces.
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    "So is Obama really the leader of a cult? Based on the above checklist, I'd have to say he is-and it's a pretty big cult, at that. If you agree, it behooves us to define the overarching beliefs of the cult over which he presides. In my view, those beliefs were accurately summed up by Thomas Sowell in his classic, A Conflict of Visions, as revolving around the idea that we humans can and should be made ever-more perfect by government policy. With that idea at the core of the cult's belief, almost no action, no matter how extreme, is off the table when it comes to government action. Deception, artifice, bullying, war-making, spying, money-printing, regulation, forcing Ritz crackers on children, taking over large swaths of the economy, or propping up companies in favored industries are all justifiable parts and parcels of the whole. Unfortunately, because the cult offers financial handouts to join, the ranks of this particular cult have swelled in recent decades. So much so that it has reached the point where, like an uninfected human in a world full of zombies, those who don't belong increasingly have to maintain a low profile or risk having their faces eaten (or, perhaps less dramatically, being subjected to a forensic audit by the IRS). This is equally true, and maybe more so, with private corporations, which keep their mouths shut as the healthcare burden of non-workers is transferred to their balance sheets, or which trumpet the fact that they're "green" in order to avoid being targeted by cult members."
Paul Merrell

Tomgram: Engelhardt, The Escalation Follies | TomDispatch - 0 views

  • Whatever your politics, you’re not likely to feel great about America right now.  After all, there’s Ferguson (the whole world was watching!), an increasingly unpopular president, a Congress whose approval ratings make the president look like a rock star, rising poverty, weakening wages, and a growing inequality gap just to start what could be a long list.  Abroad, from Libya and Ukraine to Iraq and the South China Sea, nothing has been coming up roses for the U.S.  Polls reflect a general American gloom, with 71% of the public claiming the country is “on the wrong track.”  We have the look of a superpower down on our luck. What Americans have needed is a little pick-me-up to make us feel better, to make us, in fact, feel distinctly good.  Certainly, what official Washington has needed in tough times is a bona fide enemy so darn evil, so brutal, so barbaric, so inhuman that, by contrast, we might know just how exceptional, how truly necessary to this planet we really are.
  • When you think about it, from the moment the first bombs began falling on Afghanistan in October 2001 to the present, not a single U.S. military intervention has had anything like its intended effect.  Each one has, in time, proven a disaster in its own special way, providing breeding grounds for extremism and producing yet another set of recruitment posters for yet another set of jihadist movements.  Looked at in a clear-eyed way, this is what any American military intervention seems to offer such extremist outfits -- and ISIS knows it.
  • In the nick of time, riding to the rescue comes something new under the sun: the Islamic State of Iraq and Syria (ISIS), recently renamed Islamic State (IS).  It’s a group so extreme that even al-Qaeda rejected it, so brutal that it’s brought back crucifixion, beheading, waterboarding, and amputation, so fanatical that it’s ready to persecute any religious group within range of its weapons, so grimly beyond morality that it’s made the beheading of an innocent American a global propaganda phenomenon.  If you’ve got a label that’s really, really bad like genocide or ethnic cleansing, you can probably apply it to ISIS's actions.
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  • Americans prefer to believe that all problems have solutions.  There may, however, be no obvious or at least immediate solution when it comes to ISIS, an organization based on exclusivity and divisiveness in a region that couldn’t be more divided.  On the other hand, as a minority movement that has already alienated so many in the region, left to itself it might with time simply burn out or implode.  We don’t know.  We can’t know.  But we do have reasonable evidence from the past 13 years of what an escalating American military intervention is likely to do: not whatever it is that Washington wants it to do.
  •  
    Great essay. Of course the War Party doesn't care if the U.S. wins or loses. They just want war and more "Defense" spending.
Gary Edwards

Global Financial Meltdown Coming? Clear Signs That The Great Derivatives Crisis Has Now... - 0 views

  • No one “understands” derivatives. How many times have readers heard that thought expressed (please round-off to the nearest thousand)? Why does no one understand derivatives? For many; the answer to that question is that they have simply been thinking too hard. For others; the answer is that they don’t “think” at all. Derivatives are bets. This is not a metaphor, or analogy, or generalization. Derivatives are bets. Period. That’s all they ever were. That’s all they ever can be.
  • One very large financial institution that appears to be in serious trouble with these financial weapons of mass destruction is Glencore.  At one time Glencore was considered to be the 10th largest company on the entire planet, but now it appears to be coming apart at the seams, and a great deal of their trouble seems to be tied to derivatives.  The following comes from Zero Hedge… Of particular concern, they said, was Glencore’s use of financial instruments such as derivatives to hedge its trading of physical goods against price swings. The company had $9.8 billion in gross derivatives in June 2015, down from $19 billion in such positions at the end of 2014, causing investors to query the company about the swing. Glencore told investors the number went down so drastically because of changes in market volatility this year, according to people briefed by Glencore. When prices vary significantly, it can increase the value of hedging positions. Last year, there were extreme price moves, particularly in the crude-oil market, which slid from about $114 a barrel in June to less than $60 a barrel by the end of December.
  • That response wasn’t satisfying, said Michael Leithead, a bond fund portfolio manager at EFG Asset Management, which managed $12 billion as of the end of March and has invested in Glencore’s debt.
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  • According to Bank of America, the global financial system has about 100 billion dollars of exposure overall to Glencore.  So if Glencore goes bankrupt that is going to be a major event.  At this point, Glencore is probably the most likely candidate to be “the next Lehman Brothers”. And it isn’t just Glencore that is in trouble.  Other financial giants such as Trafigura are in deep distress as well.  Collectively, the global financial system has approximately half a trillion dollars of exposure to these firms… Worse, since it is not just Glencore that the banks are exposed to but very likely the rest of the commodity trading space, their gross exposure blows up to a simply stunning number:
  • For the banks, of course, Glencore may not be their only exposure in the commodity trading space. We consider that other vehicles such as Trafigura, Vitol and Gunvor may feature on bank balance sheets as well ($100 bn x 4?)
  • Call it half a trillion dollars in very highly levered exposure to commodities: an asset class that has been crushed in the past year. The mainstream media is not talking much about any of this yet, and that is probably a good thing.  But behind the scenes, unprecedented moves are already taking place. When I came across the information that I am about to share with you, I was absolutely stunned.  It comes from Investment Research Dynamics, and it shows very clearly that everything is not “okay” in the financial world… Something occurred in the banking system in September that required a massive reverse repo operation in order to force the largest ever Treasury collateral injection into the repo market.   Ordinarily the Fed might engage in routine reverse repos as a means of managing the Fed funds rate.   However, as you can see from the graph below, there have been sudden spikes up in the amount of reverse repos that tend to correspond the some kind of crisis – the obvious one being the de facto collapse of the financial system in 2008:
  • What in the world could possibly cause a spike of that magnitude? Well, that same article that I just quoted links the troubles at Glencore with this unprecedented intervention… What’s even more interesting is that the spike-up in reverse repos occurred at the same time – September 16 – that the stock market embarked on an 8-day cliff dive, with the S&P 500 falling 6% in that time period.  You’ll note that this is around the same time that a crash in Glencore stock and bonds began.   It has been suggested by analysts that a default on Glencore credit derivatives either by Glencore or by financial entities using derivatives to bet against that event would be analogous to the “Lehman moment” that triggered the 2008 collapse. The blame on the general stock market plunge was cast on the Fed’s inability to raise interest rates.  However that seems to be nothing more than a clever cover story for something much more catastrophic which began to develop out sight in the general liquidity functions of the global banking system. Back in 2008, Lehman Brothers was not “perfectly fine” one day and then suddenly collapsed the next.  There were problems brewing under the surface well in advance. Well, the same thing is happening now at banking giants such as Deutsche Bank, and at commodity trading firms such as Glencore, Trafigura and The Noble Group. And of course a lot of smaller fish are starting to implode as well.  I found this example posted on Business Insider earlier today…
  • On September 11, Spruce Alpha, a small hedge fund which is part of a bigger investment group, sent a short report to investors. The letter said that the $80 million fund had lost 48% in a month, according the performance report seen by Business Insider. There was no commentary included in the note. No explanation. Just cold hard numbers.
  • Wow – how do you possibly lose 48 percent in a single month? It would be hard to do that even if you were actually trying to lose money on purpose. Sadly, this kind of scenario is going to be repeated over and over as we get even deeper into this crisis. Meanwhile, our “leaders” continue to tell us that there is nothing to worry about.  For example, just consider what former Fed Chairman Ben Bernanke is saying…
  • Former Federal Reserve chairman Ben Bernanke doesn’t see any bubbles forming in global markets right right now. But he doesn’t think you should take his word for it. And even if you did, that isn’t the right question to ask anyway. Speaking at a Wall Street Journal event on Wednesday morning, Bernanke said, “I don’t see any obvious major mispricings. Nothing that looks like the housing bubble before the crisis, for example. But you shouldn’t trust me.”
  • I certainly agree with that last sentence.  Bernanke was the one telling us that there was not going to be a recession back in 2008 even after one had already started.  He was clueless back then and he is clueless today. Most of our “leaders” either don’t understand what is happening or they are not willing to tell us. So that means that we have to try to figure things out for ourselves the best that we can.  And right now there are signs all around us that another 2008-style crisis has begun. Personally, I am hoping that there will be a lot more days like today when the markets were relatively quiet and not much major news happened around the world. Unfortunately for all of us, these days of relative peace and tranquility are about to come to a very abrupt end.
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    "Warren Buffett once referred to derivatives as "financial weapons of mass destruction", and it was inevitable that they would begin to wreak havoc on our financial system at some point.  While things may seem somewhat calm on Wall Street at the moment, the truth is that a great deal of trouble is bubbling just under the surface.  As you will see below, something happened in mid-September that required an unprecedented 405 billion dollar surge of Treasury collateral into the repo market.  I know - that sounds very complicated, so I will try to break it down more simply for you.  It appears that some very large institutions have started to get into a significant amount of trouble because of all the reckless betting that they have been doing.  This is something that I have warned would happen over and over again.  In fact, I have written about it so much that my regular readers are probably sick of hearing about it.  But this is what is going to cause the meltdown of our financial system. Many out there get upset when I compare derivatives trading to gambling, and perhaps it would be more accurate to describe most derivatives as a form of insurance.  The big financial institutions assure us that they have passed off most of the risk on these contracts to others and so there is no reason to worry according to them. Well, personally I don't buy their explanations, and a lot of others don't either.  On a very basic, primitive level, derivatives trading is gambling.  This is a point that Jeff Nielson made very eloquently in a piece that he recently published…"
Paul Merrell

Edward Snowden Explains How To Reclaim Your Privacy - 0 views

  • Micah Lee: What are some operational security practices you think everyone should adopt? Just useful stuff for average people. Edward Snowden: [Opsec] is important even if you’re not worried about the NSA. Because when you think about who the victims of surveillance are, on a day-to-day basis, you’re thinking about people who are in abusive spousal relationships, you’re thinking about people who are concerned about stalkers, you’re thinking about children who are concerned about their parents overhearing things. It’s to reclaim a level of privacy. The first step that anyone could take is to encrypt their phone calls and their text messages. You can do that through the smartphone app Signal, by Open Whisper Systems. It’s free, and you can just download it immediately. And anybody you’re talking to now, their communications, if it’s intercepted, can’t be read by adversaries. [Signal is available for iOS and Android, and, unlike a lot of security tools, is very easy to use.] You should encrypt your hard disk, so that if your computer is stolen the information isn’t obtainable to an adversary — pictures, where you live, where you work, where your kids are, where you go to school. [I’ve written a guide to encrypting your disk on Windows, Mac, and Linux.] Use a password manager. One of the main things that gets people’s private information exposed, not necessarily to the most powerful adversaries, but to the most common ones, are data dumps. Your credentials may be revealed because some service you stopped using in 2007 gets hacked, and your password that you were using for that one site also works for your Gmail account. A password manager allows you to create unique passwords for every site that are unbreakable, but you don’t have the burden of memorizing them. [The password manager KeePassX is free, open source, cross-platform, and never stores anything in the cloud.]
  • The other thing there is two-factor authentication. The value of this is if someone does steal your password, or it’s left or exposed somewhere … [two-factor authentication] allows the provider to send you a secondary means of authentication — a text message or something like that. [If you enable two-factor authentication, an attacker needs both your password as the first factor and a physical device, like your phone, as your second factor, to login to your account. Gmail, Facebook, Twitter, Dropbox, GitHub, Battle.net, and tons of other services all support two-factor authentication.]
  • We should armor ourselves using systems we can rely on every day. This doesn’t need to be an extraordinary lifestyle change. It doesn’t have to be something that is disruptive. It should be invisible, it should be atmospheric, it should be something that happens painlessly, effortlessly. This is why I like apps like Signal, because they’re low friction. It doesn’t require you to re-order your life. It doesn’t require you to change your method of communications. You can use it right now to talk to your friends.
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  • Lee: What do you think about Tor? Do you think that everyone should be familiar with it, or do you think that it’s only a use-it-if-you-need-it thing? Snowden: I think Tor is the most important privacy-enhancing technology project being used today. I use Tor personally all the time. We know it works from at least one anecdotal case that’s fairly familiar to most people at this point. That’s not to say that Tor is bulletproof. What Tor does is it provides a measure of security and allows you to disassociate your physical location. … But the basic idea, the concept of Tor that is so valuable, is that it’s run by volunteers. Anyone can create a new node on the network, whether it’s an entry node, a middle router, or an exit point, on the basis of their willingness to accept some risk. The voluntary nature of this network means that it is survivable, it’s resistant, it’s flexible. [Tor Browser is a great way to selectively use Tor to look something up and not leave a trace that you did it. It can also help bypass censorship when you’re on a network where certain sites are blocked. If you want to get more involved, you can volunteer to run your own Tor node, as I do, and support the diversity of the Tor network.]
  • Lee: So that is all stuff that everybody should be doing. What about people who have exceptional threat models, like future intelligence-community whistleblowers, and other people who have nation-state adversaries? Maybe journalists, in some cases, or activists, or people like that? Snowden: So the first answer is that you can’t learn this from a single article. The needs of every individual in a high-risk environment are different. And the capabilities of the adversary are constantly improving. The tooling changes as well. What really matters is to be conscious of the principles of compromise. How can the adversary, in general, gain access to information that is sensitive to you? What kinds of things do you need to protect? Because of course you don’t need to hide everything from the adversary. You don’t need to live a paranoid life, off the grid, in hiding, in the woods in Montana. What we do need to protect are the facts of our activities, our beliefs, and our lives that could be used against us in manners that are contrary to our interests. So when we think about this for whistleblowers, for example, if you witnessed some kind of wrongdoing and you need to reveal this information, and you believe there are people that want to interfere with that, you need to think about how to compartmentalize that.
  • Tell no one who doesn’t need to know. [Lindsay Mills, Snowden’s girlfriend of several years, didn’t know that he had been collecting documents to leak to journalists until she heard about it on the news, like everyone else.] When we talk about whistleblowers and what to do, you want to think about tools for protecting your identity, protecting the existence of the relationship from any type of conventional communication system. You want to use something like SecureDrop, over the Tor network, so there is no connection between the computer that you are using at the time — preferably with a non-persistent operating system like Tails, so you’ve left no forensic trace on the machine you’re using, which hopefully is a disposable machine that you can get rid of afterward, that can’t be found in a raid, that can’t be analyzed or anything like that — so that the only outcome of your operational activities are the stories reported by the journalists. [SecureDrop is a whistleblower submission system. Here is a guide to using The Intercept’s SecureDrop server as safely as possible.]
  • And this is to be sure that whoever has been engaging in this wrongdoing cannot distract from the controversy by pointing to your physical identity. Instead they have to deal with the facts of the controversy rather than the actors that are involved in it. Lee: What about for people who are, like, in a repressive regime and are trying to … Snowden: Use Tor. Lee: Use Tor? Snowden: If you’re not using Tor you’re doing it wrong. Now, there is a counterpoint here where the use of privacy-enhancing technologies in certain areas can actually single you out for additional surveillance through the exercise of repressive measures. This is why it’s so critical for developers who are working on security-enhancing tools to not make their protocols stand out.
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    Lots more in the interview that I didn't highlight. This is a must-read.
Gary Edwards

The Manifesto : Porter Stansberry and the Project to Restore America - 1 views

  • First, we should have a balanced budget amendment.
  • Next, we need a constitutional amendment that ensures sound money.
  • Finally... we need a logical way to put a stop to the narrowing of the tax base.
  • ...5 more annotations...
  • a constitutional amendment that limits state and federal taxation to 20% of income (from whatever the source) and abolishes all other forms of taxation at the state and local level. Give each household a $24,000 annual exemption.
  • We could eliminate the IRS.
  • How much did you make? Send the government 20% of it.
  • we should word the constitutional amendment to make clear our intentions:
  • Every U.S. citizen has the right to keep 80% of his income.
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    I've been following and reading Porter's publications since September of 2008, when the mighty Marbux pointed me to Porter and the libertarian economists as a first step to understanding the financial collapse of 2008, and the incredible role the Federal government / Federal Reserve Bankster Cartel played. Porter started the Project to Restore Americqa, and wrote this very concise and well thought out manifesto explaining a new direction for America to consider.  If you love your country, please take a few minutes to read this.  Rarely has the truth been so clearly stated, and a solution so precisely, yet simply, presented.  Good stuff.  +1 "We have to stop giving our citizens improper incentives. We have to increase the "skin" voters have in the game by spreading the burden of government more equally. And we have to ensure the government doesn't have the power to destroy our currency. Americans now owe $56 trillion in total debt, much of it held by foreign investors. We must spend $3.5 trillion each year on interest. That is already more than the federal government spends, in total. We will never be able to repay these debts - already equal to roughly four times our country's GDP. The largest components of the debts we owe are government debts... and they are growing rapidly and show no signs of stopping. Do you think it's more likely we'll find a way to actually pay down these debts... or simply choose to print more money to pay these debts? That's what we're doing right now. So far, the Federal Reserve has printed more than $2 trillion of new money and used it to finance our government's borrowing binge. So the question is, what can we do to change the direction in which we are headed? We have to fundamentally restructure our system. There must be more balance between rights and responsibilities. There must be some fundamental limit on spending and on taxes. And we need sound money to prohibit the government from taxing us silently via inflation an
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