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Gary Edwards

oftwominds-Charles Hugh Smith: Has Derivatives Deleveraging Fueled the Stock Rally? - 0 views

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    Charles takes a look at the sudden rise in the stock market, and comes up with a surprising conclusion; these are signs that the collapse of Greece is imminent.  His explanation of  options and derivatives (CDS) is delightful and easy to understand.  But the consequences of what the wizards of smart have done here is staggering.  Read this and you'll know the facts driving the frantic but clever manuevers behind the scenes. And what does Cahrles recommend for Greece?  Do us all a favor and do EXACTLY what the tax payers in Iceland did - shut the idiots down.  Do not allow the politicians to bail out their Bankser buddies with your money.  Do not take on more debt.  Defaut now, fully, totally and without compromise.  Capitalism works.  Maybe not for Banksters and their lady boi politicians.  But it works for the taxpaying citizens who had no idea what kind of a hole the criminal masterminds were digging for them.... excerpt: Greece, please do the world a favor and openly default--right now, today. Declare a default and pay nothing. Force the shadow banking system to recognize a default and bring down the entire rotten heap of worm-eaten corruption.  At that point, there will be no reason to buy equities.
Gary Edwards

OpEdNews - Article: How the Greek economy and IMF might help banksters -- and defeat Ob... - 0 views

  • Something else to consider:   our Federal Reserve is heavily invested in those European banks, and has, in a very real sense, 'loaned' them hundreds of billions dollars of our tax money.   And so, if they go, we go.   In other words, American taxpayers will once again be responsible for "taking up the slack."
    • Gary Edwards
       
      The first time ever July 2011 GAO audit of the Federal Reserve has $3.08 TRILLION dollars being transferred to European Banksters in 2009-2010.  The Quantitative Twist Program announced by head Bankster Bernake in early September 2011 has these same Euro Banksters cued up for trillions more.  This cash infusion from American taxpayers bails out the Euro Banksters without solving the soveriegn debt problems that are the real issue.  Imagine if the bailout went to pay off the sovereign debt?  No restructuring of existing loans.  Just a simple $3.08 Trillion @ Ford Corp interest rate of .89%, coupled with a 30% reduction in government and government pension funds.  Why bail out failing Banksters who made bad loans and really bad decisions, when the problem is failing nations?
Gary Edwards

321energy :: The Greatest Transfer of Wealth in History :: Bob Moriarty - 0 views

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    Bob Moriarty from 321 Energy provides a brief explanation of the fundamentals -  excerpt: I've made it clear for a year that I believe we have entered what will be the most serious depression in history. It also will involve the greatest transfer of wealth in history. There are two basic classes of assets. There are paper assets and real assets. An ounce of gold is a real asset. A copper mine is a real asset. A house is a real asset. An oil field is a real asset. Over the counter derivatives now total over $596 trillion dollars, (click here [pdf]) ten times the size of the world economy. Those are paper assets, their value is derived from some other asset. That derivative size is what is going to destroy the world's financial system, it's all fraud. A mortgage is a paper asset. A T-Bill or T-Bond is a paper asset. A $100 bill is a paper asset. It's pretty easy to see that a $500,000 mortgage on a house now worth $250,000 isn't worth very much. Latest figures show 9.6 million homes in the US have negative equity. How many of those loans are going to be paid back? According to an ex-Fed Director, both Fannie Mae and Freddie Mac are bankrupt. They were leveraged 65-1. For those comforted by the thought of the FDIC bailing you out should the banking system fail entirely, you need to realize the FDIC is leveraged at 130-1. We are told that the collapse of Washington Mutual alone could bankrupt the FDIC. In a depression, no real assets appear or disappear. Paper assets, on the other hand, turn to vapor. But the ownership of real assets will change as the real assets move from weak hands into strong hands.
Paul Merrell

FBI Admits It Controlled Tor Servers Behind Mass Malware Attack | Threat Level | Wired.com - 0 views

  • It wasn’t ever seriously in doubt, but the FBI yesterday acknowledged that it secretly took control of Freedom Hosting last July, days before the servers of the largest provider of ultra-anonymous hosting were found to be serving custom malware designed to identify visitors. Freedom Hosting’s operator, Eric Eoin Marques, had rented the servers from an unnamed commercial hosting provider in France, and paid for them from a bank account in Las Vegas. It’s not clear how the FBI took over the servers in late July, but the bureau was temporarily thwarted when Marques somehow regained access and changed the passwords, briefly locking out the FBI until it gained back control. The new details emerged in local press reports from a Thursday bail hearing in Dublin, Ireland, where Marques, 28, is fighting extradition to America on charges that Freedom Hosting facilitated child pornography on a massive scale. He was denied bail today for the second time since his arrest in July. Freedom Hosting was a provider of turnkey “Tor hidden service” sites — special sites, with addresses ending in .onion, that hide their geographic location behind layers of routing, and can be reached only over the Tor anonymity network. Tor hidden services are used by sites that need to evade surveillance or protect users’ privacy to an extraordinary degree – including human rights groups and journalists. But they also appeal to serious criminal elements, child-pornography traders among them.
  • On August 4, all the sites hosted by Freedom Hosting — some with no connection to child porn — began serving an error message with hidden code embedded in the page. Security researchers dissected the code and found it exploited a security hole in Firefox to identify users of the Tor Browser Bundle, reporting back to a mysterious server in Northern Virginia. The FBI was the obvious suspect, but declined to comment on the incident. The FBI also didn’t respond to inquiries from WIRED today. But FBI Supervisory Special Agent J. Brooke Donahue was more forthcoming when he appeared in the Irish court yesterday to bolster the case for keeping Marques behind bars, according to local press reports. Among the many arguments Donahue and an Irish police inspector offered was that Marques might reestablish contact with co-conspirators, and further complicate the FBI probe. In addition to the wrestling match over Freedom Hosting’s servers, Marques allegedly dove for his laptop when the police raided him, in an effort to shut it down.
  • The apparent FBI-malware attack was first noticed on August 4, when all of the hidden service sites hosted by Freedom Hosting began displaying a “Down for Maintenance” message. That included at least some lawful websites, such as the secure email provider TorMail. Some visitors looking at the source code of the maintenance page realized that it included a hidden iframe tag that loaded a mysterious clump of Javascript code from a Verizon Business internet address. By midday, the code was being circulated and dissected all over the net. Mozilla confirmed the code exploited a critical memory management vulnerability in Firefox that was publicly reported on June 25, and is fixed in the latest version of the browser. Though many older revisions of Firefox were vulnerable to that bug, the malware only targeted Firefox 17 ESR, the version of Firefox that forms the basis of the Tor Browser Bundle – the easiest, most user-friendly package for using the Tor anonymity network. That made it clear early on that the attack was focused specifically on de-anonymizing Tor users. Tor Browser Bundle users who installed or manually updated after June 26 were safe from the exploit, according to the Tor Project’s security advisory on the hack.
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  • Perhaps the strongest evidence that the attack was a law enforcement or intelligence operation was the limited functionality of the malware. The heart of the malicious Javascript was a tiny Windows executable hidden in a variable named “Magneto.” A traditional virus would use that executable to download and install a full-featured backdoor, so the hacker could come in later and steal passwords, enlist the computer in a DDoS botnet, and generally do all the other nasty things that happen to a hacked Windows box. But the Magneto code didn’t download anything. It looked up the victim’s MAC address — a unique hardware identifier for the computer’s network or Wi-Fi card — and the victim’s Windows hostname. Then it sent it to a server in Northern Virginia server, bypassing Tor, to expose the user’s real IP address, coding the transmission as a standard HTTP web request.
  • The official IP allocation records maintained by the American Registry for Internet Numbers show the two Magneto-related IP addresses were part of a ghost block of eight addresses that have no organization listed. Those addresses trace no further than the Verizon Business data center in Ashburn, Virginia, 20 miles northwest of the Capital Beltway. The code’s behavior, and the command-and-control server’s Virginia placement, is also consistent with what’s known about the FBI’s “computer and internet protocol address verifier,” or CIPAV, the law enforcement spyware first reported by WIRED in 2007. Court documents and FBI files released under the FOIA have described the CIPAV as software the FBI can deliver through a browser exploit to gather information from the target’s machine and send it to an FBI server in Virginia. The FBI has been using the CIPAV since 2002 against hackers, online sexual predators, extortionists, and others, primarily to identify suspects who are disguising their location using proxy servers or anonymity services, like Tor. Prior to the Freedom Hosting attack, the code had been used sparingly, which kept it from leaking out and being analyzed.
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    Taking down the entire Freedom Hosting service because some content was kiddie porn is reminiscent of the U.S. government's proxy take-down of Mega-Upload in New Zealand. Such actions that disable legitimate users or deny access to their data are in my opinion violative of the 1st and 4th Amendments.  It suppresses the Freedom of Speech and seizes more than the 4th Amendment allows.  That our own government would use malware for surveillance purposes under any circumstance is just plain chilling.
Paul Merrell

The Western Alliance Is Crumbling: EU Is Abandoning U.S. on Overthrowing Assad | Global... - 0 views

  • Europe is being overrun by refugees from American bombing campaigns in Libya and Syria, which created a failed state in Libya, and which threaten to do the same in Syria. Europe is thus being forced to separate itself from endorsing the U.S. bombing campaign that focuses against the Syrian government forces of the secular Shiite Syrian President Bashar al-Assad, instead of against his fundamentalist Sunni Islamic opponents, the jihadist groups (all of which are Sunni), such as ISIS, and Al Qaeda in Syria (al-Nusra).
  • Russia announced on October 2nd that their bombing campaign against America’s allies in Syria — ISIS and Al Nusra (the latter being Al Qaeda in Syria) — will intensify and will last “three or four months.” U.S. President Barack Obama is insisting upon excluding Russia from any peace talks on Syria; the U.S. will not move forward with peace talks unless Syria’s President Bashar al-Assad first steps down. But Russia is the only serious military power against the jihadists who are trying to defeat Assad, and Russia is now committing itself also to providing Lebanon with weapons against the jihadists, who are America’s allies in Lebanon too.
  • That’s hardly the only ‘legacy’ issue for Obama — his war against Russia, via overthrowing Gaddafi, then Yanukovych, and his still trying to overthrow Assad — which is now forcing the break-up of the Western Alliance, over the resulting refugee-crisis. An even bigger such conflict within the Alliance concerns Obama’s proposed treaty with European states, the TTIP, which would give international corporations rights to sue national governments in non-appealable global private arbitration panels, the dictates from which will stand above any member-nation’s laws. Elected government officials will have no control over them. This supra-national mega-corporate effort by Obama is also part of his similar effort in his proposed TPP treaty with Asian nations, both of which are additionally aimed to isolate from international trade not just Russia, but China, so as to leave America’s large international corporations controlling virtually the entire world. As things now stand regarding these ‘trade’ deals, Obama will either need to eliminate some of his demands, or else the European Commission won’t be able to muster enough of its members to support Obama’s proposed treaty with the EU, the TTIP (Transatlantic Trade and Investment Partnership). Also, some key European nations might reject Obama’s proposed treaty on regulations regarding financial and other services: TISA (Trade In Services Agreement). All three of Obama’s proposed ‘trade’ deals, including the TPP (Trans-Pacific Partnership) between the U.S. and Asian countries, are the actual culmination of Obama’s Presidency, and they’re all about far more than just trade and economics. The main proposed deal with Europe might now be dead.
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  • On September 27th, France’s newspaper SouthWest featured an exclusive interview with Matthias Fekl, France’s Secretary of State for Foreign Trade, in which he said that “France is considering all options, including outright termination of negotiations” on the TTIP. He explained that, ever since the negotiations began in 2013, “These negotiations have been and are being conducted in a total lack of transparency,” and that France has, as of yet, received “no serious offer from the Americans.” The reasons for this stunning public rejection had probably already been accurately listed more than a year ago. After all, France has, throughout all of the negotiations, received “no serious offer from the Americans”; not now, and not back at the start of the negotiations in 2013. The U.S. has been steadfast. Jean Arthuis, a member of the European Parliament, and formerly France’s Minister of Economy and Finance, headlined in Le Figaro, on 10 April 2014, “7 good reasons to oppose the transatlantic treaty”. There is no indication that the situation has changed since then, as regards the basic demands that President Obama is making. Arthuis said at that time: First, I am opposed to private arbitration of disputes between States and businesses. [It would place corporate arbitrators above any nation’s laws and enable them to make unappealable decisions whenever a corporation sues a nation for alleged damages for alleged violations of its rights by that nation of the trade-treaty.] Such a procedure is strictly contrary to the idea that I have of the sovereignty of States. … Secondly, I am opposed to any questioning of the European system of appellations of origin. Tomorrow, according to the US proposal, there would be a non-binding register, and only for wines and spirits. Such a reform would kill many European local products, whose value is based on their certified origin.
  • Thirdly, I am opposed to the signing of an agreement with a power that legalizes widespread and systematic spying on my fellow European citizens and European businesses. Edward Snowden’s revelations are instructive in this regard. As long as the agreement does not protect the personal data of European and US citizens, it cannot be signed. Fourth, the United States proposes a transatlantic common financial space, but they adamantly refuse a common regulation of finance, and they refuse to abolish systematic discrimination by the US financial markets against European financial services. They want to have their cake and eat it too: I object to the idea of a common area without common rules, and I reject commercial discrimination. Fifth, I object to the questioning of European health protections. Washington must understand once and for all that notwithstanding its insistence, we do not want our plates or animals treated with growth hormones nor products derived from GMOs, or chemical decontamination of meat, or of genetically modified seeds or non-therapeutic antibiotics in animal feed. Sixth, I object to the signing of an agreement if it does not include the end of the US monetary dumping. Since the abolition of the gold convertibility of the dollar and the transition to the system of floating exchange rates, the dollar is both American national currency and the main unit for exchange reserves in the world. The Federal Reserve then continually practices monetary dumping, by influencing the amount of dollars available to facilitate exports from the United States. China proposes to eliminate this unfair advantage by making “special drawing rights” of the IMF the new global reference currency. But as things now stand, America’s monetary weapon has the same effect as customs duties against every other nation. [And he will not sign unless it’s removed.]
  • Seventh, beyond the audiovisual sector alone, which is the current standard of government that serves as a loincloth to its cowardice on all other European interests in these negotiations, I want all the cultural exceptions prohibited. In particular, it is unacceptable to allow the emerging digital services in Europe to be swept up by US giants such as Google, Amazon or Netflix. They’re giant absolute masters in tax optimization, which make Europe a “digital colony.” President Obama’s negotiator is his close personal friend, Michael Froman, a man who is even trying to force Europe to reduce its fuel standards against global warming and whose back-room actions run exactly contrary to Obama’s public rhetoric. Froman and Obama have been buddies since they worked together as editors on Harvard Law Review. He knows what Obama’s real goals are. Also: “Froman introduced Mr. Obama to Robert E. Rubin, the former Treasury secretary,” who had brought into the Clinton Administration Timothy Geithner and Larry Summers, and had championed (along with them) the ending of the regulations on banks that the previous Democratic President, Franklin Delano Roosevelt, had put into place. (President Bill Clinton signed that legislation just as he left office, and this enabled the long process to occur with MBS securities and with financial derivatives, which culminated with the 2008 crash, and this same legislation also enabled the mega-banks to get bailed out by U.S. taxpayers for their crash — on exactly the basis that FDR had outlawed.)
  • Froman has always been a pro-mega-corporate, pro-mega-bank champion, who favors only regulations which benefit America’s super-rich, no regulations which benefit the public. Froman’s introducing the Wall Street king Robert Rubin to the then-Senator Obama was crucial to Obama’s becoming enabled to win the U.S. Presidency; Robert Rubin’s contacts among the super-rich were essential in order for that — Obama’s getting a real chance to win the Presidency — to happen. It enabled Obama to compete effectively against Hillary Clinton. Otherwise, he wouldn’t have been able to do that. His winning Robert Rubin’s support was crucial to his becoming President. The chances, that President Obama will now be able to get the support from any entity but the U.S. Congress for his proposed TTIP treaty with Europe, are reducing by the day. Europe seems to be less corrupt than is the United States, after all. The only independent economic analysis that has been done of the proposed TTIP finds that the only beneficiaries from it will be large international corporations, especially ones that are based in the United States. Workers, consumers, and everybody else, will lose from it, if it passes into law. Apparently, enough European officials care about that, so as to be able to block the deal. Or else: Obama will cede on all seven of the grounds for Europe’s saying no. At this late date, that seems extremely unlikely.
Paul Merrell

Top 1 Percent Own More Than Half of World's Wealth | Global Research - Centre for Resea... - 0 views

  • A new report issued by the Swiss bank Credit Suisse finds that global wealth inequality continues to worsen and has reached a new milestone, with the top 1 percent owning more of the world’s assets than the bottom 99 percent combined. Of the estimated $250 trillion in global assets, the top 1 percent owned almost exactly 50 percent, while the bottom 50 percent of humanity owned collectively less than 1 percent. The richest 10 percent owned 87.7 percent of the world’s wealth, leaving 12.3 percent for the bottom 90 percent of the population. The Credit Suisse report focused not on the top 1 percent, but on a slightly smaller group, the 0.7 percent of adults with assets of more than 1 million US dollars. This figure includes both financial assets and real assets, such as homes, small businesses and other physical property. The report’s eye-catching “Global Wealth Pyramid” divides the human race into four categories by wealth: 3.4 billion adults with net assets of less than $10,000; 1 billion with net assets from $10,000 to $100,000; 349 million with net assets from $100,000 to $1 million; and 34 million with net assets over $1 million.
  • The lowest category comprises 71 percent of all adults and owns only 3 percent of total wealth; the next-poorest group comprises 21 percent of adults and owns 12.5 percent of the wealth; above this is a group comprising 7.4 percent of adults and owning 39.4 of the wealth; and finally the top layer, 0.7 percent of adults owning 45.2 percent of the wealth. This top layer, defined by the report as “high-net-worth individuals,” is itself divided very unequally, as shown in a second pyramid: 29.8 million with assets of $1 million to $5 million; 2.5 million with assets of $5 million to $10 million; 1.34 million with assets of $10 million to $50 million; and finally, 123,800 with assets over $50 million. These 123,800 “ultra-high-net-worth individuals,” as the report calls them, are the true global financial aristocracy, exercising decisive sway not only over banks and corporations, but over governments and international institutions as well. Of these, nearly 59,000, almost half the total, live in the United States. Another quarter live in Europe (mainly Britain, Germany, Switzerland, France and Italy), followed by China and then Japan.
  • The Credit Suisse report notes the particularly rapid rise in inequality since the Wall Street crash of 2008 and relates it directly to the stock market boom that followed the bailout of the banks, initiated by the Bush administration and greatly expanded by the Obama administration. A key passage reads: “There are strong reasons to think that the rise in wealth inequality since 2008 is mostly related to the rise in equity prices and to the size of financial assets in the United States and some other high-wealth countries, which together have pushed up the wealth of some of the richest countries and of many of the richest people around the world. The jump in the share of the top percentile to 50 percent this year exceeds the increase expected on the basis of any underlying upward trend. It is consistent, however, with the fact that financial assets continue to increase in relative importance and that the rise in the USD (US dollar) over the past year has given wealth inequality in the United States—which is very high by international standards—more weight in the overall global picture.” In other words, deepening global economic inequality is being driven above all by American capitalism, with the United States being both the wealthiest and by far the most unequal country in the world. The US has less than 5 percent of the world’s population, but a staggering 46 percent of the world’s millionaires.
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    Gee, the wealth concentration is accelerating. Why might that be?
Paul Merrell

The Economic Scam of the Century » CounterPunch: Tells the Facts, Names the N... - 0 views

  • The leaders of the U.S. Senate Banking Committee,  Sen. Tim Johnson (D., S.D.) and Sen. Mike Crapo (R., Idaho),  released a draft bill on Sunday that would provide explicit government guarantees on mortgage-backed securities (MBS) generated by privately-owned banks and financial institutions. The gigantic giveaway to Wall Street would put US taxpayers on the hook for 90 percent of the losses on toxic MBS the likes of which crashed the financial system in 2008 plunging the economy into the deepest slump since the Great Depression. Proponents of the bill say that new rules by the Consumer Financial Protection Bureau (CFPB) –which set standards for a “qualified mortgage” (QM)– assure that borrowers will be able to repay their loans thus reducing the chances of a similar meltdown in the future. However, those QE rules were largely shaped by lobbyists and attorneys from the banking industry who eviscerated strict underwriting requirements– like high FICO scores and 20 percent down payments– in order to lend freely to borrowers who may be less able to repay their loans.  Additionally, a particularly lethal clause has been inserted into the bill that would provide blanket coverage for all MBS  (whether they met the CFPB’s QE standard or not) in the event of another financial crisis. Here’s the paragraph:
  • “Sec.305. Authority to protect taxpayers in unusual and exigent market conditions…. If the Corporation, the Chairman of the Federal Reserve Board of Governors and the Secretary of the Treasury, in consultation with the Secretary of Housing and Urban Development, determine that unusual and exigent circumstances threaten mortgage credit availability within the U.S. housing market, FMIC may provide insurance on covered securities that do not meet the requirements under section 302 including those for first loss position of private market holders.” (“Freddie And Fannie Reform – The Monster Has Arrived”, Zero Hedge) In other words, if the bill passes,  US taxpayers will be responsible for any and all bailouts deemed necessary by the regulators mentioned above.  And, since all of those regulators are in Wall Street’s hip-pocket, there’s no question what they’ll do when the time comes. They’ll bailout they’re fatcat buddies and dump the losses on John Q. Public. If you can’t believe what you are reading or if you think that the system is so thoroughly corrupt it can’t be fixed; you’re not alone. This latest outrage just confirms that the Congress, the executive and all the chief regulators are mere marionettes performing whatever task is asked of them by their Wall Street paymasters.
Paul Merrell

Europe and Ukraine: A tale of two elections - RT Op-Edge - 0 views

  • Circumstances surrounding the European and Ukrainian elections were far from being a mere coincidence. The regime changers in Kiev decided to hold a presidential election on May 25, the same day as European Parliament elections, in order to demonstrate their desire to follow a European-centric foreign policy.
  • Way beyond the established fact of an Atlantic push against Russian western borderlands, Ukraine remains a catfight of local oligarchies. No wonder the new Ukrainian president is also an oligarch; the 7th wealthiest citizen in the land, who owns not just a chocolate empire, but also automotive plants, a shipyard in Crimea and a TV channel. The only difference is that he’s a NATO oligarch
  • Meanwhile, in NATOstan, local and transnational elites have been desperately trying to spin a measure of success. Abstention remains notable – only roughly 4 in 10 Europeans take the trouble to vote on what goes on in Strasbourg, with a majority alienated enough to legitimize the mix of internal European austerity and international belligerence.
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  • Hardly discussed in the pre-vote campaigns were the Snowden NSA revelations; the shady negotiations between Washington and Brussels over a free trade agreement which will be a boon for US Big Business; and how the financial casino supervised by the European Central Bank, the IMF, and the European Commission (EC) will remain untouched, further ravaging the European middle classes. The anti-EU crowd performed very well in France, the UK, Denmark and Greece. Not so well in Italy and the Netherlands. The mainstream did relatively well in Germany and ultraconservative Spain – even though losing votes to small parties.
  • Essentially, European voters said two things out loud: either “the EU sucks,” or “we couldn’t care less about you, Eurocrat suckers.” As if that sea of lavishly pensioned Brussels apparatchiks – the Eurocrats - would care. After all, their mantra is that “democracy” is only good for others (even Ukrainians…) but not for the EU; when the European flock of sheep votes, they should only be allowed to pick obscure Brussels-peddled and Brussels-approved treaties. Brussels, anyway, is bound to remain the Kafkaesque political epitome of centralized control and red tape run amok. No wonder the EU is breathlessly pivoting with itself as the global economy relentlessly pivots to Asia.
  • To believe that an EU under troika austerity will bail Kiev out of its massive outstanding debts is wishful thinking. The recipe - already inbuilt in the $17 billion IMF “rescue” package is, of course, austerity. Oligarchs will remain in control, while assorted plunderers are already lining up. Former US Secretary of State Madeleine Albright – for whom hundreds of thousands of Iraqi children were expendable – “observed” the elections, and most of all observed how to privatize Telecom Ukraine, as she is doing now with Telekom Kosovo. There’s no evidence Right Sector and Svoboda will cease to be crypto-fascist, racist and intolerant just because Poroshenko – the King of Ukrainian Chocolate – is now the president. By the way, his margin for maneuver is slim, as his own markets – not to mention some of his factories – are in Russia. Heavy industry and the weapons industry in eastern Ukraine depend on Russian demand. It would take at least a whopping $276 billion for the West to “stabilize” eastern Ukraine. The notion of the EU “saving” Ukraine is D.O.A.
  • Moscow, once again, just needs to do what it is doing: nothing. And make sure there will be no economic or political help unless a federalized – and Finlandized - Ukraine with strong regions sees the light of day. Even the Brookings Institution has reluctantly been forced to admit that the US neo-con gambit has failed miserably; there’s no Ukraine without Russian help.
  • Signs so far are mixed. Poroshenko said Ukraine could “possibly” become an EU member state by 2025 (it won’t happen). He ruled out entering NATO (wise move). He rejects federalization (dumb move). He believes that with a strong economy Crimea would want to be back (wishful thinking). Still, he believes in reaching a compromise with Moscow (that’s what Moscow always wanted, even before regime change).
  • Back in NATOstan, there’s the crucial point of what happens to the ultra-right-wing anti-EU brigade in the Parliament in Strasbourg. They may all abhor the EU, but the fact is this ideological basket case will hardly form an alliance.
  • What this ultimately means is that conservative and moderate parties, as per the status quo, will remain in control, expressed via an extremely likely coalition of the European People’s Party (center-right) and the Socialists and Democrats (center-left). What comes next, in the second half of 2014, is the appointment of a new EU Commission. That’s Kafka redux, as in the bureaucrat-infested executive arm of the EU, which shapes the agenda, sort of (when it’s not busy distributing subventions in color-coded folders for assorted European cows.) There are 5 candidates fighting for the position of EC president. According to the current EU treaty, member states have to consider the result of EU Parliament elections when appointing a new president. Germany wants a conservative. France and Italy want a socialist. So expect a tortuous debate ahead to find who will succeed the spectacularly mediocre Jose Manuel Barroso. The favorite is a right-winger of the European People’s Party, former Prime Minister of Luxembourg Jean-Claude Juncker. He is an avid defender of banking secrecy while posing himself as a champion of “market social economy.”
  • Then there’s more Kafka: choosing the new president of the EU Council and the High Representative for Foreign Affairs. Translation: the EU won’t decide anything, or “reform” anything for months. That includes the critical negotiations with the Americans over the free trade deal. It’s absolutely impossible to spin these Sunday elections as not discrediting even more the EU project as it stands. As I’ve seen for myself, since early 2014, in 5 among the top EU countries, what matters for the average citizen is as follows: how to deal with immigration; how to fight the eradication of the welfare state; the implications of the free trade agreement with the US; the value of the euro –including an absurdly high cost of living; and what the ECB mafia is actually doing to fight unemployment.
  • With Kafka in charge for the foreseeable future, what’s certain is that Paris and Berlin will drift further and further apart. There will be no redesign of the EU’s institutions. And the next Parliament, filled with sound and fury, will be no more than a hostage of the devastating, inexorable political fragmentation of Europe. “Saving” Ukraine? What a joke. The EU cannot even save itself.
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    Pepe Escobar's take on the Presidential election in Ukraine and the EU-wide national election of EU Parliament members, both held on the same day. Excerpts only highlighted.  
Paul Merrell

The West Dethroned -- Paul Craig Roberts - PaulCraigRoberts.org - 0 views

  • The “New American Century” proclaimed by the neoconservatives came to an abrupt end on September 6 at the G20 meeting in Russia. The leaders of most of the world’s peoples told Obama that they do not believe him and that it is a violation of international law if the US government attacks Syria without UN authorization. Putin told the assembled world leaders that the chemical weapons attack was “a provocation on behalf of the armed insurgents in hope of the help from the outside, from the countries which supported them from day one.” In other words, Israel, Saudi Arabia, and Washington–the axis of evil. China, India, South Africa, Brazil, Indonesia, and Argentina joined Putin in affirming that a leader who commits military aggression without the approval of the UN Security Council puts himself “outside of law.” In other words, if you defy the world, obama, you are a war criminal.
  • We are yet to see an american president who can stand up to Israel. Or, for that matter, a Congress that can. Or a media. The obama regime tried to counter its smashing defeat at the G20 Summit by forcing its puppet states to sign a joint statement condemning Syria. However the puppet states qualified their position by stating that they opposed military action and awaited the UN report.
  • What this reveals is that the support behind the liar obama is feeble and limited. The ability of the Western countries to dominate international politics came to an end at the G20 meeting. The moral authority of the West is completely gone, shattered and eroded by countless lies and shameless acts of aggression based on nothing but lies and self-interests. Nothing remains of the West’s “moral authority,” which was never anything but a cover for self-interest, murder, and genocide.
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  • The idiot Western governments have pissed away their clout. There is no prospect whatsoever of the neoconservative fantasy of US hegemony being exercised over Russia, China, India, Brazil, South Africa, South America, Iran. These countries can establish their own system of international payments and finance and leave the dollar standard whenever they wish. One wonders why they wait. The US dollar is being printed in unbelievable quantities and is no longer qualified to be the world reserve currency. The US dollar is on the verge of total worthlessness. The G20 Summit made it clear that the world is no longer willing to go along with the West’s lies and murderous ways. The world has caught on to the West. Every country now understands that the bailouts offered by the West are merely mechanisms for looting the bailed-out countries and impoverishing the people.
  • In the 21st century Washington has treated its own citizens the way it treats citizens of third world countries. Untold trillions of dollars have been lavished on a handful of banks, while the banks threw millions of Americans out of their homes and seized any remaining assets of the broken families. US corporations had their taxes cut to practically nothing, with few paying any taxes at all, while the corporations gave the jobs and careers of millions of Americans to the Chinese and Indians. With those jobs went US GDP, tax base, and economic power, leaving Americans with massive budget deficits, a debased currency, and bankrupt cities, such as Detroit, which once was the manufacturing powerhouse of the world. How long before Washington shoots down its own homeless, hungry, and protesting citizens in the streets?
  • Washington represents Israel and a handful of powerful organized private interests. Washington represents no one else. Washington is a plague upon the American people and a plague upon the world. http://rt.com/news/g20-against-syria-strike-527/
  • About Dr. Paul Craig Roberts Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments.
  •  
    Paul Craig Roberts makes a compelling case that the just-completed G20 summit is a historic event, marking the virtual end of U.S. ability to influence other nations to assist in imposing the Neocon/right-wing Israeli hegemonic agenda on the world. The Israel-first AIPAC lobbyists hit the hill beginning Monday morning to produce the authorization for war against Syria, painting it as essential to the Israeli goal of destroying the Iranian government. http://www.politico.com/story/2013/09/aipac-syria-96344.html The Israel-first lobby almost invariably attains its Congressional goals, regardless of those goals' damage to America. They are willing to fight to the very last drop of American blood to fulfill the Eeretz Israel dream of a Jewish empire in the Mideast and North Africa. Will Congress roll over for Israel's right-wing government yet again? We will know very soon. The key members of Congress to watch on their position in regard to war against Syria are those who are up for re-election next year. None will want to disturb voters this close to election by voting for war. Will that give them sufficient spine to withstand the Israel-firsters?  One can hope.  But the citizen message to Congress needs to be: "No to Obama. No to AIPAC. No to war."
Paul Merrell

No, Obama, Russia's Economy Isn't 'in Tatters' - Bloomberg View - 0 views

  • Western politicians and pundits should be more careful with their predictions for the Russian economy: Reports of its demise may prove to be premature. Bashing the Russian economy has lately become a popular pastime. In his state of the nation address last month, U.S. President Barack Obama said it was "in tatters." And yesterday, Anders Aslund of the Peterson Institute for International Economics published an article predicting a 10 percent drop in gross domestic product this year -- more or less in line with the apocalyptic predictions that prevailed when the oil price reached its nadir late last year and the ruble was in free fall. Aslund's forecast focuses on Russia's shrinking currency reserves, some of which have been earmarked for supporting government spending in difficult times. At $364.6 billion, they are down 26 percent from a year ago and $21.6 billion from the beginning of this year. Aslund expects $166 billion to be spent on infrastructure investments and bailing out companies, and another $100 billion to exit via capital flight and other currency outflows. As a result, given foreign debts of almost $600 billion, "Russia's reserve situation is approaching a critical limit," he says.
  • What this argument ignores is that Russia's foreign debts are declining along with its reserves -- that's what happens when the money is used to pay down state companies' obligations. Last year, for example, the combined foreign liabilities of the Russian government and companies dropped by $129.4 billion, compared with a $124.3 billion decline in foreign reserves. Beyond that, a large portion of Russian companies' remaining foreign debt is really part of a tax-evasion scheme: By lending themselves money from abroad, the companies transfer profits to lower-tax jurisdictions. Such loans can easily be extended if sanctions prevent the Russian side from paying. The declining price of oil is also less of a threat than many have warned. True, the Russian government's revenues from energy exports will fall in dollar terms. But because Russia's central bank has allowed the ruble's value against the dollar to decline, the ruble value of the revenues will be higher than they otherwise would be. As a result, Russia no longer requires $100 oil to balance its budget -- and the effect of lower oil prices on the broader economy will be muted.
  • Economists at the respected Gaidar Institute, for example, expect the floating of the ruble to roughly halve the negative GDP impact of the decline in oil prices. They estimate that Russian GDP will shrink by a moderate 2.7 percent this year, even if Brent oil trades at $40 (it traded at $61 today). That's just a bit more optimistic than the consensus among 39 economists polled by Bloomberg between Feb. 20 and Feb. 25: On average, they see a decline of 4 percent. Economic sanctions, which most forecasts assume will continue this year, are having less impact that many in the West would like to believe. Sergei Tsukhlo of the Gaidar Institute estimates that the sanctions have affected only 6 percent of Russian industrial enterprises. "Their effect remains quite insignificant despite all that's being said about them," he wrote, noting that trade disruptions with Ukraine have been more important.
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  • Granted, there's no avoiding a significant drop in Russians' living standards because of accelerating inflation. The economics ministry in Moscow predicts real wages will fall by 9 percent this year -- which, Aslund wrote, means that "for the first time after 15 years in power," Russian President Vladimir Putin "will have to face a majority of the Russian people experiencing a sharply declining standard of living." So far, though, Russians have taken the initial shock of devaluation and accompanying inflation largely in stride. The latest poll from the independent Levada Center, conducted between Feb. 20 and Feb. 23, actually shows an uptick in Putin's approval rating -- to 86 percent from 85 percent in January.  It's time to bury the expectation that Russia will fall apart economically under pressure from falling oil prices and economic sanctions, and that Russians, angered by a drop in their living standards, will rise up and sweep Putin out of office. Western powers face a tough choice: Settle for a lengthy siege and ratchet up the sanctions despite the progress in Ukraine, or start looking for ways to restart dialogue with Russia, a country that just won't go away.
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