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While there is no true beginning to the story, we can start with the incredible build up and concentration of wealth among corporations in recent decades. The USA now boasts a cartel-like set of corporate titans in almost every industry. It goes beyond, but certainly includes, our Too Biggerer To Fail banks, merged from what was 37 banks in 1995 into a Frankenstein’s monster like 5 (Citigroup, JP Morgan-Chase, Bank of America, Wells Fargo and Goldman Sachs). In agriculture, Monsanto alone controls over 85% of all corn and soy bean crops, four companies control 83% of the beef market, 66% of the hog market and 58% of the chicken market. So while shopping at the grocery store might appear to be the manifestation of capitalism at its finest, it doesn’t take much digging to look behind the curtain to see how little competition truly exists.

This, amazingly, has only accelerated since the crisis in 2008 in thanks to bailouts, Quantitative Easing and other gifts from Congress and the Fed. The wealthy 1% and in particular the .01% have now grown their fortunes to levels that tax comprehension and even their ability to spend it (the decisions by a few billionaires such as Bill Gates to essentially donate his fortune is a tacit acknowledgement that our current system over provides wealth to a select few).

So what is an incredibly wealthy capitalist CEO of a mega-corporation do once they control their industry and have essentially limitless wealth? Well in a competitive market, the only way to go from the top is down and the only thing that can make that happen is competition. Consequently, competition must be avoided whenever possible.

Let’s take a step back and take a glimpse at how the government was purchased, beginning with the executive branch. In 1980, Reagan’s election cost less than $300 million. When Bush beat Kerry in 2004, it cost almost 3x times as much, almost $900 Million. 4 years later, the 2008 election cost a record $1.3 Billion. It was in this election where Obama hammered the final nail in the coffin for government funded for elections. Obama, more so than any other candidate in recent decades had the widespread support of millions of small donors, but in the end I guess it wasn’t enough. So when Obama “leaned to the green”, it forever set the precedent that you can’t win without the backing of our nation’s oligarchs. Consequently, the money has only gushed in since as the cost of Obama’s reelection in 2012 skyrocketed to an unfathomable $7 billion. Needless to say this is slightly above the rate of inflation. Our Presidents are now preselected exclusively by a tiny fraction of Americans can have the money to fund what has become necessary for a legitimate run. Summary: Candidates spend years courting the super-rich to build up a multi-billion dollar war chest. Only those who succeed can actually run a campaign that an average American will be aware of. Then Americans get to choose one of the pre-selected “candidates”. No wonder voter turnout is so low… Executive branch, check!

The process has progressed similarly in Congress. In 1978, outside groups spent $303,000 on congressional races. In 2012 that was up to $457,000,000. That is over 1,500 times the level in 1978. It would be funny, if it was so blatant and terrifying. By many accounts, our “leaders” in Congress spend 50% or more of their time working the phones or fundraisers rather than trying (and failing) to actually do the “people’s business”. Let’s also take a minute to appreciate the hypocrisy of anyone that pretends that the money doesn’t influence our government. Businesses do not give to politicians for charity. This is a payment for services that has proven exceedingly reliable and profitable. The ROI for money invested in purchasing Congressman is what CEO dreams are made of. No wonder the incentive is to invest in Congress rather than R&D or marketing. There are very few places in the world or times in history where you can find ROI’s in the thousands, or even the tens of thousands.

In addition, increasingly those who work on Congress (and regulators) were previously employed by these large corporations or expect to work there later. A recent example is Chris Dodd who left the Senate the head lobbyist for Hollywood at the MPAA, the guys behind SOPA and PIPA, but there are many many others.

Change the Rules: Laurence Lessig of Harvard Law has put forward a visionary proposal for re-writing the way that campaigns are financed in his book, Republic, Lost: How Money Corrupts Congress--and a Plan to Stop It. Put simply, he would like to empower every voter with a stipend, say $150 per election to give to whatever candidate or candidates they prefer. If you would like to accept this money, you would need to forgo any other contributions or support (one would hope including the indirect PAC kind). This would actually provide even more money than is used in current elections, but would effectively democratize the funding process. While there would still be a “funding election” that takes place before the actual election, the funding would not be unequally provided. Lessig’s work has only begun, as this sort of bill or likely constitutional reform is nearly impossible to achieve, but he has undertaken and I assume will continue to implement many brave and creative ways of bringing about the change all American’s should support. Most recently he has suggested we begin to fund, ironically enough, a Super PAC to end all Super PACs. It would be funded with the solitary goal of changing how money impacts our elections. Please support them here: www.mayone.us/

What if all the growing number of “Independents” (who usually still vote Blue), chose to vote for a third party? What if a third party candidate won a state like New York or California? What if that candidate was one whose primary promise to the voters was to champion a change to the role of money in government (perhaps in line with what Lessig proposes)? Would you vote for such a person?I would argue you should. If California alone (with 55 electoral votes) were to vote for a 3rd party that would likely prevent either Red or Blue candidate from winning the requisite 270 electoral votes.

The Intercept has confirmed that as of 2013, the NSA was actively using MYSTIC to gather cell-phone metadata in five countries, and was intercepting voice data in two of them. Documents show that the NSA has been generating intelligence reports from MYSTIC surveillance in the Bahamas, Mexico, Kenya, the Philippines, and one other country, which The Intercept is not naming in response to specific, credible concerns that doing so could lead to increased violence. The more expansive full-take recording capability has been deployed in both the Bahamas and the unnamed country. MYSTIC was established in 2009 by the NSA’s Special Source Operations division, which works with corporate partners to conduct surveillance. Documents in the Snowden archive describe it as a “program for embedded collection systems overtly installed on target networks, predominantly for the collection and processing of wireless/mobile communications networks.”

If an entire nation’s cell-phone calls were a menu of TV shows, MYSTIC would be a cable programming guide showing which channels offer which shows, and when. SOMALGET would be the DVR that automatically records every show on every channel and stores them for a month. MYSTIC provides the access; SOMALGET provides the massive amounts of storage needed to archive all those calls so that analysts can listen to them at will after the fact. According to one NSA document, SOMALGET is “deployed against entire networks” in the Bahamas and the second country, and processes “over 100 million call events per day.”

When U.S. drug agents need to tap a phone of a suspected drug kingpin in another country, they call up their counterparts and ask them set up an intercept. To facilitate those taps, many nations – including the Bahamas – have hired contractors who install and maintain so-called lawful intercept equipment on their telecommunications. With SOMALGET, it appears that the NSA has used the access those contractors developed to secretly mine the country’s entire phone system for “signals intelligence” –recording every mobile call in the country. “Host countries,” the document notes, “are not aware of NSA’s SIGINT collection.” “Lawful intercept systems engineer communications vulnerabilities into networks, forcing the carriers to weaken,” says Christopher Soghoian, the principal technologist for the American Civil Liberties Union. “Host governments really should be thinking twice before they accept one of these Trojan horses.”

The DEA has long been in a unique position to help the NSA gain backdoor access to foreign phone networks. “DEA has close relationships with foreign government counterparts and vetted foreign partners,” the manager of the NSA’s drug-war efforts reported in a 2004 memo. Indeed, with more than 80 international offices, the DEA is one of the most widely deployed U.S. agencies around the globe. But what many foreign governments fail to realize is that U.S. drug agents don’t confine themselves to simply fighting narcotics traffickers. “DEA is actually one of the biggest spy operations there is,” says Finn Selander, a former DEA special agent who works with the drug-reform advocacy group Law Enforcement Against Prohibition. “Our mandate is not just drugs. We collect intelligence.” What’s more, Selander adds, the NSA has aided the DEA for years on surveillance operations. “On our reports, there’s drug information and then there’s non-drug information,” he says. “So countries let us in because they don’t view us, really, as a spy organization.”

“I seriously don’t think that would be your run-of-the-mill legal interception equipment,” says the former engineer, who worked with hardware and software that typically maxed out at 1,000 intercepts. The NSA, by contrast, is recording and storing tens of millions of calls – “mass surveillance,” he observes, that goes far beyond the standard practices for lawful interception recognized around the world. The Bahamas Telecommunications Company did not respond to repeated phone calls and emails.

The proliferation of private contractors has apparently provided the NSA with direct access to foreign phone networks. According to the documents, MYSTIC draws its data from “collection systems” that were overtly installed on the telecommunications systems of targeted countries, apparently by corporate “partners” cooperating with the NSA. One NSA document spells out that “the overt purpose” given for accessing foreign telecommunications systems is “for legitimate commercial service for the Telco’s themselves.” But the same document adds: “Our covert mission is the provision of SIGINT,” or signals intelligence.

According to the NSA documents, MYSTIC targets calls and other data transmitted on  Global System for Mobile Communications networks – the primary framework used for cell phone calls worldwide. In the Philippines, MYSTIC collects “GSM, Short Message Service (SMS) and Call Detail Records” via access provided by a “DSD asset in a Philippine provider site.” (The DSD refers to the Defence Signals Directorate, an arm of Australian intelligence. The Australian consulate in New York declined to comment.) The operation in Kenya is “sponsored” by the CIA, according to the documents, and collects “GSM metadata with the potential for content at a later date.” The Mexican operation is likewise sponsored by the CIA. The documents don’t say how or under what pretenses the agency is gathering call data in those countries. In the Bahamas, the documents say, the NSA intercepts GSM data that is transmitted over what is known as the “A link”–or “A interface”–a core component of many mobile networks. The A link transfers data between two crucial parts of GSM networks – the base station subsystem, where phones in the field communicate with cell towers, and the network subsystem, which routes calls and text messages to the appropriate destination. “It’s where all of the telephone traffic goes,” says the former engineer.

When U.S. drug agents wiretap a country’s phone networks, they must comply with the host country’s laws and work alongside their law enforcement counterparts. “The way DEA works with our allies – it could be Bahamas or Jamaica or anywhere – the host country has to invite us,” says Margolis. “We come in and provide the support, but they do the intercept themselves.” The Bahamas’ Listening Devices Act requires all wiretaps to be authorized in writing either by the minister of national security or the police commissioner in consultation with the attorney general. The individuals to be targeted must be named. Under the nation’s Data Protection Act, personal data may only be “collected by means which are both lawful and fair in the circumstances of the case.” The office of the Bahamian data protection commissioner, which administers the act, said in a statement that it “was not aware of the matter you raise.” Countries like the Bahamas don’t install lawful intercepts on their own. With the adoption of international standards, a thriving market has emerged for private firms that are contracted by foreign governments to install and maintain lawful intercept equipment. Currently valued at more than $128 million, the global market for private interception services is expected to skyrocket to more than $970 million within the next four years, according to a 2013 report from the research firm Markets and Markets.

If the U.S. government wanted to make a case for surveillance in the Bahamas, it could point to the country’s status as a leading haven for tax cheats, corporate shell games, and a wide array of black-market traffickers. The State Department considers the Bahamas both a “major drug-transit country” and a “major money laundering country” (a designation it shares with more than 60 other nations, including the U.S.). According to the International Monetary Fund, as of 2011 the Bahamas was home to 271 banks and trust companies with active licenses. At the time, the Bahamian banks held $595 billion in U.S. assets. But the NSA documents don’t reflect a concerted focus on the money launderers and powerful financial institutions – including numerous Western banks – that underpin the black market for narcotics in the Bahamas. Instead, an internal NSA presentation from 2013 recounts with pride how analysts used SOMALGET to locate an individual who “arranged Mexico-to-United States marijuana shipments” through the U.S. Postal Service.

The presentation doesn’t say whether the NSA shared the information with the DEA. But the drug agency’s Special Operations Divison has come under fire for improperly using classified information obtained by the NSA to launch criminal investigations – and then creating false narratives to mislead courts about how the investigations began. The tactic – known as parallel construction – was first reported by Reuters last year, and is now under investigation by the Justice Department’s inspector general. So: Beyond a desire to bust island pot dealers, why would the NSA choose to apply a powerful collection tool such as SOMALGET against the Bahamas, which poses virtually no threat to the United States? The answer may lie in a document that characterizes the Bahamas operation as a “test bed for system deployments, capabilities, and improvements” to SOMALGET. The country’s small population – fewer than 400,000 residents – provides a manageable sample to try out the surveillance system’s features. Since SOMALGET is also operational in one other country, the Bahamas may be used as a sort of guinea pig to beta-test improvements and alterations without impacting the system’s operations elsewhere. “From an engineering point of view it makes perfect sense,” says the former engineer. “Absolutely.”

SOMALGET operates under Executive Order 12333, a Reagan-era rule establishing wide latitude for the NSA and other intelligence agencies to spy on other countries, as long as the attorney general is convinced the efforts are aimed at gathering foreign intelligence. In 2000, the NSA assured Congress that all electronic surveillance performed under 12333 “must be conducted in a manner that minimizes the acquisition, retention, and dissemination of information about unconsenting U.S. persons.” In reality, many legal experts point out, the lack of judicial oversight or criminal penalties for violating the order render the guidelines meaningless. “I think it would be open, whether it was legal or not,” says German, the former FBI agent. “Because we don’t have all the facts about how they’re doing it. For a long time, the NSA has been interpreting their authority in the broadest possible way, even beyond what an objective observer would say was reasonable.” “An American citizen has Fourth Amendment rights wherever they are,” adds Kurt Opsahl, an attorney with the Electronic Frontier Foundation. “Nevertheless, there have certainly been a number of things published over the last year which suggest that there are broad, sweeping programs that the NSA and other government agencies are doing abroad that sweep up the communications of Americans.”

Legal or not, the NSA’s covert surveillance of an entire nation suggests that it will take more than the president’s tepid “limits” to rein in the ambitions of the intelligence community. “It’s almost like they have this mentality – if we can, we will,” says German. “There’s no analysis of the long-term risks of doing it, no analysis of whether it’s actually worth the effort, no analysis of whether we couldn’t take those resources and actually put them on real threats and do more good.” It’s not surprising, German adds, that the government’s covert program in the Bahamas didn’t remain covert. “The undermining of international law and international cooperation is such a long-term negative result of these programs that they had to know would eventually be exposed, whether through a leak, whether through a spy, whether through an accident,” he says. “Nothing stays secret forever. It really shows the arrogance of these agencies – they were just going to do what they were going to do, and they weren’t really going to consider any other important aspects of how our long-term security needs to be addressed.”

The unfolding scandal surrounding the alleged misuse of funds allocated for construction of affordable housing for low-income families, a program also known as Mehr, could deal another blow to Ahmadinejad. Opponents of the former president are demanding a thorough probe, claiming that he stole tens of billions of dollars. External observers say reformers led by Rouhani are using the attacks to try to weaken the conservatives’ influence on politics and the economy. We can expect that in the time leading up to the next parliamentary elections, which are slated for March 2016, Iran‘s political infighting will not only worsen but also may present some unexpected surprises.

Accusing the West of repeatedly blocking a “humanitarian armistice,” a Russian Foreign Ministry statement cited both Kiev’s obstructionist diplomacy and “much more intensive bombardment of Luhansk” on Aug. 21, the day after some progress had been made on the ground regarding customs clearance and border control procedures: “In other words, the Ukrainian authorities are bombing the destination [Luhansk] and are using this as a pretext to stop the delivery of humanitarian relief aid.”

Despite all the agreements and understandings that Moscow claims were reached earlier with Ukrainian authorities, Kiev insists it did not give permission for the Russian convoy to cross its border and that the Russians simply violated Ukrainian sovereignty – no matter the exigent circumstances they adduce. More alarming still, Russia’s “warning” could be construed as the Kremlin claiming the right to use military force within Ukraine itself, in order to protect such humanitarian supply efforts – and perhaps down the road, to protect the anti-coup federalists, as well. The risk of escalation, accordingly, will grow in direct proportion to the aggressiveness of not only the Ukrainian armed forces but also their militias of neo-fascists who have been dispatched by Kiev as frontline shock troops in eastern Ukraine.

Moscow’s move is a difficult one to parry, except for those – and there are many, both in Kiev and in Washington – who would like to see the situation escalate to a wider East-West armed confrontation. One can only hope that, by this stage, President Barack Obama, Secretary of State John Kerry and the European Union realize they have a tiger by the tail. The coup regime in Kiev knows which side its bread is buttered on, so to speak, and can be expected to heed the advice from the U.S. and the EU if it is expressed forcefully and clearly. Not so the fanatics of the extreme right party Svoboda and the armed “militia” comprised of the Right Sector. Moreover, there are influential neo-fascist officials in key Kiev ministries who dream of cleansing eastern Ukraine of as many ethnic Russians as possible. Thus, the potential for serious mischief and escalation has grown considerably. Even if Ukrainian President Petro Poroshenko wants to restrain his hardliners, he may be hard-pressed to do so. Thus, the U.S. government could be put in the unenviable position of being blamed for provocations – even military attacks on unarmed Russian truck drivers – over which it has little or no control.

The White House second-string P.R. team came off the bench on Friday, with the starters on vacation, and it was not a pretty scene. Even if one overlooks the grammatical mistakes, the statement they cobbled together left a lot to be desired. It began: “Today, in violation of its previous commitments and international law, Russian military vehicles painted to look like civilian trucks forced their way into Ukraine. … “The Ukrainian government and the international community have repeatedly made clear that this convoy would constitute a humanitarian mission only if expressly agreed to by the Ukrainian government and only if the aid was inspected, escorted and distributed by the International Committee of the Red Cross (ICRC). We can confirm that the ICRC is not escorting the vehicles and has no role in managing the mission. … “Russian military vehicles piloted by Russian drivers have unilaterally entered the territory controlled by the separatist forces.”

The White House protested that Kiev had not “expressly agreed” to allow the convoy in without being escorted by the ICRC. Again, the Catch 22 is obvious. Washington has been calling the shots, abetting Kiev’s dawdling as the supply trucks sat at the border for a week while Kiev prevented the kind of ceasefire that the ICRC insists upon before it will escort such a shipment. The other issue emphasized in the White House statement was inspection of the trucks: “While a small number of these vehicles were inspected by Ukrainian customs officials, most of the vehicles have not been inspected by anyone but Russia.” During a press conference at the UN on Friday, Russia’s UN Ambassador Vitaly Churkin took strong exception to that charge, claiming not only that 59 Ukrainian inspectors had been looking through the trucks on the Russian side of the border, but that media representatives had been able to choose for themselves which trucks to examine.

Regardless of this latest geopolitical back-and-forth, it’s clear that Moscow’s decision to send the trucks across the border marked a new stage of the civil war in Ukraine. As Putin prepares to meet with Ukrainian President Poroshenko next week in Minsk – and as NATO leaders prepare for their summit on Sept. 4 to 5 in Wales – the Kremlin has put down a marker: there are limits to the amount of suffering that Russia will let Kiev inflict on the anti-coup federalists and ethnic Russian civilians right across the border. The Russians’ attitude seems to be that if the relief convoys can be described as an invasion of sovereign territory, so be it. Nor are they alone in the court of public opinion.

Charter members of the Fawning Corporate Media are already busily at work, including the current FCM dean, the New York Times’ Michael R. Gordon, who was at it again with a story titled “Russia Moves Artillery Units Into Ukraine, NATO Says.”  Gordon’s “scoop” was all over the radio and TV news; it was picked up by NPR and other usual suspects who disseminate these indiscriminate alarums. Gordon, who never did find those Weapons of Mass Destruction that he assured us were in Iraq, now writes: “The Russian military has moved artillery units manned by Russian personnel inside Ukrainian territory in recent days and was using them to fire at Ukrainian forces, NATO officials said on Friday.” His main source seems to be NATO chief Anders Fogh Rasmussen, who famously declared in 2003, “Iraq has WMDs. It is not something we think; it is something we know.” Cables released by WikiLeaks have further shown the former Danish prime minister to be a tool of Washington.

However, Gordon provided no warning to Times’ readers about Rasmussen’s sorry track record for accuracy. Nor did the Times remind its readers about Gordon’s sorry history of getting sensitive national security stories wrong. Surely, the propaganda war will be stoked by what happened on Friday. Caveat emptor.

Not only did the Russians move in, but they did that without the ICRC whose personnel refused to go because of the lack of security guarantees from Kiev. The Russian response to that lack of security guarantees was a) to order this unarmed convoy in and b) to clearly state in the official statement: We are warning against any attempts to thwart this purely humanitarian mission which took a long time to prepare in conditions of complete transparency and cooperation with the Ukrainian side and the ICRC. Those who are ready to continue sacrificing human lives to their own ambitions and geopolitical designs and who are rudely trampling on the norms and principles of international humanitarian law will assume complete responsibility for the possible consequences of provocations against the humanitarian relief convoy. Again, from a logical, political or moral point of view, this is rather self-obvious, but from a legal point of view this is a threat to use force ("complete responsibility for the possible consequences") inside the putatively sovereign territory of the Ukraine.

The Ukie plan has been to present some major "victory" for the Sunday the 24, when they plan a victory parade in Kiev to celebrate independence day (yup, the US-controlled and Nazi-administered "Banderastan" will celebrate its "independence"... this is both sad and hilarious).  Instead, what they have a long streak of *very* nasty defeats during the past 5-6 days or so.  By all accounts, the Ukies are getting butchered and, for the first time, even pushed back (if only on a tactical level).  That convoy in Luganks will add a stinging symbolical "f**k you!" to the junta in Kiev.  It will also exacerbate the tensions between the ruling clique in power, the Right Sector and Dmitri Iarosh and the growing protest movement in western Ukraine. Bottom line: this is a risky move no doubt, probably brought about by the realization that with water running out in Luganks Putin had to act.  Still it is also an absolutely brilliant move which will create a massive headache for the US and its Nazi puppets in Kiev.

PS: I heard yesterday evening that Holland has officially announced that it will not release the full info of the flight data and voice recorders of MH17.  Thus Holland has now become an official accomplice to the cover-up of this US false-flag operation and to the murder of the passengers of MH17. This is absolutely outrageous and disgusting I and sure hope that the Malaysian government will not allow this.  As for Kiev, it is also sitting on the recording of the communications between the Kiev ATC and MH17.  Finally, the USA has it all through its own signals intelligence capabilities.  So they all know and they are all covering up.  Under the circumstances, can anybody still seriously doubt "who done it"?

The request was approved through military channels three days later but not made public. Under the terms of the deal, the Israelis used US financing to pay for $3 million in tank rounds. No presidential approval or signoff by the secretary of state was required or sought, according to officials.

One senior US official said the decision to tighten oversight and require the pre-approval of higher-ranking officials for shipments was intended to make clear to Israel that there is no “blank check” from Washington in regards to the US-made weapons that the Israel Defense Forces (IDF) uses in Gaza.

Freedom of movement of Palestinians in and out of the Gaza Strip. Unlimited import and export of supplies and goods, including by land, sea and air. Unrestricted use of the Gaza seaport. Monitoring and enforcement of these agreements by a body appointed by the United Nations, with appropriate security measures. Each of these expectations is taken for granted by most countries, and it is time for the Palestinians of Gaza to be accorded the human rights they deserve. Signatures:

LANCE BARTHOLOMEUSZ, Acting Director of Legal Affairs, United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNWRA), said UNRWA was deeply alarmed and affected by the escalation of violence in the Gaza Strip and the devastating human and physical toll it was taking on civilians, including Palestine refugees.  Far too many lives were being lost and the traumas resulting from the military operations would mark the population for years to come.  Among ordinary Palestinians there was a profound crisis of confidence in the ability of international law and international mechanisms to protect civilians, and to prevent and address violations of international law.  Because of military operations, and because over 40 per cent of Gaza’s territory was affected by Israel evacuation warnings or declarations of “no-go zones”, thousands of people continued to flee to shelters run by UNRWA and by partners.  By yesterday evening, 22 July, approximately 118,000 Palestinians had sought refuge in 77 UNRWA schools.  That was about 6 per cent of the population of Gaza and double the peak in UNRWA shelters during the 2008 to 2009 conflict.

The conflict had not spared UNRWA premises, 77 of which had been damaged by air raids and other fire, which was totally unacceptable.  All parties to the conflict must respect at all times the neutrality and inviolability of UNRWA’s premises.  The situation of the population of Gaza and of Palestine Refugees in Gaza had become completely unsustainable.  Israel’s illegal blockade had deepened poverty levels and Gaza's aquifer would be entirely contaminated in the next three to four years making the Strip essentially unliveable.  Today, these indicators paled in comparison to the intensity of the bombardments, fighting and the immediate fears for security and survival. 

Assume a $1 trillion dividend issued in the form of debit cards that could be used only for goods and services. A back-of-the-envelope estimate is that if $1 trillion were shared by all US adults making under $35,000 annually, they could each get about $600 per month.  If the total dividend were $2 trillion, they could get $1,200 per month. And in either case it could, at least in theory, all come back in taxes to the government without any net increase in the money supply.

By Paul Craig Roberts

Bloomberg's dready summary of the US economy is generally spot on, and is to be expected when any nation finally leaves, voluntarily or otherwise, the stranglehold of a global reserve currency. What Bloomberg failed to account for is what happens to the remainder of the Petrodollar world. Here is what we said last time: Outside from the domestic economic impact within EMs due to the downward oil price shock, we believe that the implications for financial market liquidity via the reduced recycling of petrodollars should not be underestimated. Because energy exporters do not fully invest their export receipts and effectively ‘save’ a considerable portion of their income, these surplus funds find their way back into bank deposits (fuelling the loan market) as well as into financial markets and other assets. This capital has helped fund debt among importers, helping to boost overall growth as well as other financial markets liquidity conditions. ... [T]his year, we expect that incremental liquidity typically provided by such recycled flows will be markedly reduced, estimating that direct and other capital outflows from energy exporters will have declined by USD253bn YoY. Of course, these economies also receive inward capital, so on a net basis, the additional capital provided externally is much lower. This year, we expect that net capital flows will be negative for EM, representing the first net inflow of capital (USD8bn) for the first time in eighteen years. This compares with USD60bn last year, which itself was down from USD248bn in 2012. At its peak, recycled EM petro dollars amounted to USD511bn back in 2006. The declines seen since 2006 not only reflect the changed global environment, but also the propensity of underlying exporters to begin investing the money domestically rather than save. The implications for financial markets liquidity - not to mention related downward pressure on US Treasury yields – is negative.

Considering the wildly violent moves we have seen so far in the market confirming just how little liquidity is left in the market, and of course, the absolutely collapse in Treasury yields, with the 30 Year just hitting a record low, this prediction has been borne out precisely as expected. And now, we await to see which other country will follow Russia out of the Petrodollar next, and what impact that will have not only on the world's reserve currency, on US Treasury rates, and on the most financialized commodity as this chart demonstrates...

... but on what is most important to developed world central planners everywhere: asset prices levels, and specifically what happens when the sellers emerge into what is rapidly shaping up as the most illiquid market in history.

But then the UN has a lot to cover up. There was heartrending testimony by Hutu witnesses at the ICTR Military II trial describing the flight of 2 to 3 million Hutu refugees fleeing with the retreating Rwandan Armed forces into Zaire in July 1994, pursued by RPF units intent on exterminating them. The Rwandan government armed forces, disarmed by Congolese forces when they crossed the border, were unable to protect these Hutu refugees when, in 1996, and subsequently, the Rwandans and Ugandans attacked the Hutu refugee camps killing hundreds of thousands of unarmed civilians. The survivors were either forced into the forest or forced to return to Rwanda at gunpoint, on UN planes, only to be thrown into RPF prisons without charge, tortured, or killed en masse. Those who escaped through the forest told of being pursued day and night through thousands of kilometres of jungle and swamps by the RPF and stated that just before being shelled or attacked by those forces they saw spotter planes overhead with either US or UN markings. All the witnesses were consistent on this. Rwandan Army officers testified that they were surprised to see themselves under attack by UN forces in Kigali in support of the RPF in April 1994. A journalist testified that UN officers at Amohoro Stadium, in Kigali, where General Dallaire had his headquarters, stood by and did nothing as RPF soldiers, on a daily basis, selected Hutus seeking protection there, and shot them.

This pattern of UN complicity in the mass crimes committed by the RPF, Ugandan and allied western forces in the Rwandan war, has been followed ever since. The evidence is compelling that the CIA, US military forces, and UN peacekeeping forces in Rwanda in 1993-94, commanded by Canadian General Dallaire, were involved in helping the RPF overthrow the Rwandan interim government and in preparing the RPF’s final offensive launched on the night of April 6th when the Rwandan President’s plane was shot down by RPF missiles, killing two African heads of state, President Habyarimana of Rwanda and President Ntaryamira, of Burundi.

The Americans and British have been at the heart of the problem from 1990, when they supported the invasion of Rwanda by units of the Ugandan National Resistance Army (NRA), calling themselves the Rwandan Patriotic Front (RPF), and commanded by a senior ranking intelligence officer of the NRA, Paul Kagame. They supported 4 years of terrorist attacks against Hutus and local Tutsis by the RPF that included the attack on the town of Ruhengeri in February 1993 in which the RPF massacred 40,000 Hutu civilians before the government forces were able to recapture the town.

The ICTR prosecutor and the UNHCR also had in their possession a copy of a letter from Paul Kagame, written in August 1994, in which Kagame refers to a meeting with President Musuveni of Uganda and that their “plan for Zaire” was going forward, assisted by the Americans, British, and Belgians. The letter stated that the Hutus were in the way and must be removed at any cost. That letter says a lot and yet it was suppressed until 2009 when it was discovered in prosecution files. In fact that letter indicates that the wars in the DRC were planned long ago and the announcement of the new offensive against the FDLR is a continuation of that plan. Now the only force that exists to protect the Hutus, the FDLR, is going to be attacked again, by the UN. Once again, the Hutus are betrayed by the international community. The UN has lots of things to answer for in Rwanda and Congo and elsewhere and has long been used to further the interests of the west in Africa in general. That certain members of the Security Council, who should know better, go along with protecting those really responsible for the tragedy that is central Africa and Africa as a whole, and for the crimes committed there, is an indictment of the entire UN system.

It is ironic that on December 11, 2014th the UN general assembly voted to reopen the investigation into the death of the UN Secretary General Dag Hammarskjold who was killed in then Rhodesia when his plane went down near Ndola. The report of the investigative commission that examined new information stated that there is evidence that the plane was shot down by another aircraft and that the US and British and Belgian governments were likely involved. The death of Hammarskjold is intimately connected with the murder of Patrice Lumumba that led to the installation of Mobutu as President of Congo. We now know that the Rwanda war was the first phase of the greater war for control of the resources of the Congo basin, which was beginning to slip from the west, as Mobutu began to turn towards China. That long and terrible war is not over and it is the UN itself that wants to keep it going.