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The last financial Tsunami was a doozer that almost destroyed the global financial system. It was the collapse of the Wall Street Mortgage Backed Securities bubble in March 2007. The results of that collapse are still very much with the world today. Never in the one hundred some years of the Federal Reserve Bank has the Fed held interest rates at an artificial near-zero level for what is soon to mark eight years duration. Not even during the 1930’s Great Depression were rates kept so low so long. It is not a sign of a healthy banking system, friends. Now a new Financial Tsunami is beginning, this one, of all places, in the Texas, North Dakota and other USA shale oil regions. Like the so-called US sub-prime real estate crisis, the oil shale junk bond default crisis is but the cutting front of the first wave of what promises to be a far more dangerous series of financial Tsunami long waves.First appeared: http://journal-neo.org/2015/04/17/the-next-financial-tsunami-just-began-in-texas/

A new public opinion survey undertaken in six Arab countries, Iran, and Turkey finds that people are more likely to blame “corrupt, repressive, and unrepresentative governments” and “religious figures and groups promoting extremist ideas and/or incorrect religious interpretations” for the rise of violent groups like al-Qaeda and the Islamic State than they are to blame “anger at the United States.” These findings are the result of a series of face-to-face polls conducted by Zogby Research Services on a commission from the Sir Bani Yas Forum in the United Arab Emirates (UAE) and released at a Middle East Institute-sponsored event on Wednesday. In September, ZRS interviewed a total of 7,400 adults across eight countries—Egypt, Iran, Iraq, Jordan, Lebanon, Saudi Arabia, Turkey, and the UAE—on a broad range of topics, including the ongoing conflicts in Iraq, Libya, Syria, and Yemen; the Israel-Palestine situation; the Iranian nuclear deal; and the threat of religious extremism. Respondents in Iran and Iraq were also asked a separate series of questions about internal affairs in those countries.

With respect to Israel-Palestine, the poll found that people in five of the six surveyed Arab nations are less likely to support a comprehensive Arab-Israeli peace deal now than they were back in 2009, when Zogby International’s “Six-Nation Arab Opinion Poll” asked a similar question of respondents in those five countries. In Egypt, which has seen the sharpest decline in support for a peace deal, almost two-thirds of respondents said that they would oppose a peace deal “even if the Israelis agree to return all of the territories and agree to resolve the refugee issue,” compared with only 8% who answered similarly in the 2009 survey. This represents a potential risk for Egyptian President Abdel Fattah el-Sisi, who has worked to improve Egyptian-Israeli relations despite the apparent feelings of most of the Egyptian public. Similar, albeit smaller, shifts were seen in Jordan (where 24% oppose a deal today, compared with 13% in 2009), Lebanon (30% vs. 18%), Saudi Arabia (36% vs. 18%), and the UAE (19% vs. 8%). Iraq was not part of the 2009 survey, but 59% of respondents in this survey said that they would also oppose a comprehensive peace deal with Israel.

Still, it was in the area of extremism and its causes where the poll generated its most interesting findings. When asked to rate eight factors on a 1-5 scale (where 1 means “very important factor”) in terms of their importance as a driver of religious extremism, respondents in all eight countries gave “anger at the U.S.” the fewest number of ones and twos, although that factor was still rated as important by a majority of respondents in Egypt, Saudi Arabia, the UAE, and Turkey. Zogby argued that this was a sign that Barack Obama’s attempt to leave a “softer U.S. footprint in the region pays off.” However, when asked whether the United States is playing a positive or negative role in combating extremist sectarian violence, large majorities in each country said that the U.S. was playing a negative role. Instead, the two most commonly cited factors in the development of religious extremism were “corrupt governments” and “extremist and/or incorrect religious ideas.” Other commonly cited factors, like “lack of education,” “poverty,” and “youth alienation” also speak to a consistent sense that extremism is an internal problem stemming from poor governance. Majorities in each of the eight countries except Iran agreed that “countering the messages and ideas promoted by recruiters for extremist groups” and “changing the political and social realities that cause young people to be attracted to extremist ideals” were “most important” in terms of defeating violent extremist groups like the Islamic State. Within Iraq, majorities from all three of the country’s major ethno-religious groups (Sunni Arabs, Shi?a Arabs, and Kurds) agreed that “forming a more inclusive, representative government” is the best way to resolve the conflict there, but even larger majorities from each group said that they were “not confident” that such a government will be formed within the next five years.

Having watched the Obama administration prosecute whistleblowers at a historically unprecedented rate, he fully expects the US government to attempt to use all its weight to punish him. "I am not afraid," he said calmly, "because this is the choice I've made."He predicts the government will launch an investigation and "say I have broken the Espionage Act and helped our enemies, but that can be used against anyone who points out how massive and invasive the system has become".

Texans are having nightmares of a Niger Delta nature, and while they have always been the friends of Big Oil, TransCanada is changing the rules of the game in a legally-aided land grab that will test just how tough Texans are.

The lawsuits against TransCanada are piling up to the dismay of the Keystone XL pipeline project, which has been beleaguered by political, socio-economic, environmental and legal woes at every step from its US origins in Montana to its final destination point in south Texas. No one thought Texas would be part of the problem: Texans love their pipelines. Why the change of heart, then? The simplest answer is that Texans love their pipelines because Big Oil has been paying big bucks for the privilege of running them through Texas farmland, but TransCanada is bullying them out of their fair share. This is how it works: TransCanada makes an unacceptably low offer for the land it needs; the landowner rejects the offer; TransCanada gets the land condemned in court; then it legally acquires the land for a fraction of its original offer. Condemning land is not a new tactic by Big Oil, but while US oil companies have traditionally kept this to a minimum, TransCanada has taken far too much advantage of this legal loophole to get what it wants. According to CNBC.com, the Canadian company has so far condemned over 100 tracts of land out of the 800 tracts it has acquired for the pipeline in Texas.

Since Texans are being forced to give up their land for peanuts for the bigger picture “common good”, let’s look at why they aren’t buying it and why they don’t feel any less patriotic for their opinion. (Common good in this case meaning “national interest”)

Mark Carney, the head of the Bank of England, and other officials from the BOE were put through a five hour marathon of questioning yesterday by Parliament’s Treasury Select Committee covering everything from how long the BOE plans to continue Quantitative Easing (QE), to the potential for Scotland to vote for its independence, to what it knew and when it knew it about the rigging of the Foreign Exchange market by colluding global banks. The bombshell of the day, however, did not occur during the session on the Foreign Exchange scandal, which is stacking up to be a more serious matter than the rigging of the Libor interest rate benchmark which occurred under the nose of the Bank of England and the British Bankers Association. (London now seems to be in competition with itself for the prize of the century for overseeing the rigging of the greatest number of markets.)

The bombshell came in the following exchange between the Chair of the Treasury Select Committee, Andrew Tyrie, and a very frightened appearing Paul Fisher, the Executive Director of Markets at the BOE, who has served in that position since 2009. Apparently neither Parliament nor the public knew prior to this exchange that the records of the pre-crisis year of 2007, the financial collapse in 2008, and the monetary policy maneuvers in subsequent years to prevent another Great Depression had been destroyed in one of the world’s most important financial centers; not to mention the fact that critical recordings potentially relevant to the Foreign Exchange probe are also gone.

Chairman Tyrie: “The MPC [Monetary Policy Committee] records might be of interest one day to historians about the inception of QE. MPC records used to be recorded and transcribed when the MPC was created. Is that still the case Mr. Fisher?” Paul Fisher: “They are not transcribed. They are still recorded so that the secretariat can go back to check any discrepancies between the minutes and what people may have said. But as far as I know they are not transcribed.” Chairman Tyrie: “And they’re stored?” Paul Fisher: “The recordings are not kept. Once the minutes are published…” Chairman Tyrie: [In a booming, outraged voice] “The recordings are destroyed! Why? Paul Fisher: “Because we have one copy of the minutes; that’s the one that’s published and there are not alternative versions.”

Secret documents reveal more than 1,000 targets of American and British surveillance in recent years, including the office of an Israeli prime minister, heads of international aid organizations, foreign energy companies and a European Union official involved in antitrust battles with American technology businesses.

While the names of some political and diplomatic leaders have previously emerged as targets, the newly disclosed intelligence documents provide a much fuller portrait of the spies’ sweeping interests in more than 60 countries. Britain’s Government Communications Headquarters, working closely with the National Security Agency, monitored the communications of senior European Union officials, foreign leaders including African heads of state and sometimes their family members, directors of United Nations and other relief programs, and officials overseeing oil and finance ministries, according to the documents. In addition to Israel, some targets involved close allies like France and Germany, where tensions have already erupted over recent revelations about spying by the N.S.A.

Details of the surveillance are described in documents from the N.S.A. and Britain’s eavesdropping agency, known as GCHQ, dating from 2008 to 2011. The target lists appear in a set of GCHQ reports that sometimes identify which agency requested the surveillance, but more often do not. The documents were leaked by the former N.S.A. contractor Edward J. Snowden and shared by The New York Times, The Guardian and Der Spiegel. The reports are spare, technical bulletins produced as the spies, typically working out of British intelligence sites, systematically tapped one international communications link after another, focusing especially on satellite transmissions. The value of each link is gauged, in part, by the number of surveillance targets found to be using it for emails, text messages or phone calls. More than 1,000 targets, which also include people suspected of being terrorists or militants, are in the reports. It is unclear what the eavesdroppers gleaned. The documents include a few fragmentary transcripts of conversations and messages, but otherwise contain only hints that further information was available elsewhere, possibly in a larger database.

If the US Senate really is the world’s greatest deliberative body, it ought to consider consequential questions. That does not happen often in a Senate where trivia tends too frequently to triumph over issues of substance. But Senator Bernie Sanders, I-Vermont, raised what might just be the most substantial issue of all Wednesday, at a Joint Economic Committee hearing where Federal Reserve board chair Janet Yellen was testifying. The senator began with the facts: “In the US today, the top 1 percent own about 38 percent of the financial wealth of America. The bottom 60 percent own 2.3 percent. One family, the Walton family, is worth over $140 billion; that’s more wealth than the bottom 40 percent of the American people. In recent years, we have seen a huge increase in the number of millionaires and billionaires, while we continue to have the highest rate of childhood poverty in the industrialized world. Despite, as many of my Republican friends talk about ‘the oppressive Obama economic policies,’ in the last year Charles and David Koch struggled under these policies and their wealth increased by $12 billion in one year. In terms of income, 95 percent of new income generated in this country in the last year went to the top 1 percent.“ Sanders then introduced an academic study, by Martin Gilens and Benjamin Page, that concludes, “The central point that emerges from our research is that economic elites and organized groups representing business interests have substantial independent impacts on US government policy, while mass-based interest groups and average citizens have little or no independent influence.” That sounds like an oligarchy.

So Sanders asked Yellen: “In your judgment, given the enormous power held by the billionaire class and their political representatives, are we still a capitalist democracy or have we gone over to an oligarchic form of society in which incredible enormous economic and political power now rests with the billionaire class?” Yellen did not answer “yes.” But she did say, “There’s no question that we’ve had a trend toward growing inequality and I personally find it a very worrisome trend that deserves the attention of policy makers.” She also expressed concern that trends toward growing inequality “can shape [and] determine the ability of different groups to participate equally in a democracy and have grave effects on social stability over time.”

Predictions are that we will soon be seeing the “nuclear option” — central bank-created money injected directly into the real economy. All other options having failed, governments will be reduced to issuing money outright to cover budget deficits. So warns a September 18 article on ZeroHedge titled “It Begins: Australia’s Largest Investment Bank Just Said ‘Helicopter Money’ Is 12-18 Months Away.” Money reformers will say it’s about time. Virtually all money today is created as bank debt, but people can no longer take on more debt. The money supply has shrunk along with people’s ability to borrow new money into existence. Quantitative easing (QE) attempts to re-inflate the money supply by giving money to banks to create more debt, but that policy has failed. It’s time to try dropping some debt-free money on Main Street. The Zerohedge prediction is based on a release from Macqurie, Australia’s largest investment bank. It notes that GDP is contracting, deflationary pressures are accelerating, public and private sectors are not driving the velocity of money higher, and central bank injections of liquidity are losing their effectiveness. Current policies are not working. As a result:

There are several policies that could be and probably would be considered over the next 12-18 months. If private sector lacks confidence and visibility to raise velocity of money, then (arguably) public sector could. In other words, instead of acting via bond markets and banking sector, why shouldn’t public sector bypass markets altogether and inject stimulus directly into the ‘blood stream’? Whilst it might or might not be called QE, it would have a much stronger impact and unlike the last seven years, the recovery could actually mimic a conventional business cycle and investors would soon start discussing multiplier effects and positioning in areas of greatest investment.  Willem Buiter, chief global economist at Citigroup, is also recommending “helicopter money drops” to avoid an imminent global recession, stating: A global recession starting in 2016 led by China is now our Global Economics team’s main scenario. Uncertainty remains, but the likelihood of a timely and effective policy response seems to be diminishing. . . . Helicopter money drops in China, the euro area, the UK, and the U.S. and debt restructuring . . . can mitigate and, if implemented immediately, prevent a recession during the next two years without raising the risk of a deeper and longer recession later.

In the UK, something akin to a helicopter money drop was just put on the table by Jeremy Corbyn, the newly-elected Labor leader. He proposes to give the Bank of England a new mandate to upgrade the economy to invest in new large scale housing, energy, transport and digital projects. He calls it “quantitative easing for people instead of banks” (PQE). The investments would be made through a National Investment Bank set up to invest in new infrastructure and in the hi-tech innovative industries of the future. Australian blogger Prof. Bill Mitchell agrees that PQE is economically sound. But he says it should not be called “quantitative easing.” QE is just an asset swap – cash for federal securities or mortgage-backed securities on bank balance sheets. What Corbyn is proposing is actually Overt Money Financing (OMF) – injecting money directly into the economy. Mitchell acknowledges that OMF is a taboo concept in mainstream economics. Allegedly, this is because it would lead to hyperinflation. But the real reasons, he says, are that: It cuts out the private sector bond traders from their dose of corporate welfare which unlike other forms of welfare like sickness and unemployment benefits etc. has made the recipients rich in the extreme. . . . It takes away the ‘debt monkey’ that is used to clobber governments that seek to run larger fiscal deficits.

The International Monetary Fund has assailed US government spending cuts as "excessively rapid and ill-designed" as it cut the economy's growth forecast for 2014. Warning that the country still faces downside risks to its recovery, the IMF cheered the Federal Reserve's stimulus efforts and urged Congress to help firm up growth by repealing the severe "sequester" budget cuts. In its annual report on the US economy, the IMF said growth would be only 1.9 percent this year, due to the sequester's impact, when it had the potential of growing as much as 1.75 percentage points faster.

It suggested fundamental tax reforms as part of actions to confront the longer term fiscal shortfall, including eliminating many exemptions and loopholes, and introducing a value-added tax and a carbon tax. It credited the Federal Reserve's aggressive quantitative easing - its $85 billion-a-month bond purchases, to hold down interest rates - with keeping the economy on a sure footing as the government slashes spending.

Last week, several polls came out assessing U.S. public opinion on intervention in Syria. According to the Huffington Post poll, Americans oppose U.S. air strikes on Syria by 3-to-1. They oppose sending arms to the rebels by 4-to-1. They oppose putting U.S. ground troops into Syria by 14-to-1. Democrats, Republicans and independents are all against getting involved in that civil war that has produced 1.2 million refugees and 70,000 dead. A CBS/New York Times poll found that by 62-to-24 Americans want to stay out of the Syrian war. A Reuters/Ipsos poll found that by 61-to-10 Americans oppose any U.S. intervention. But the numbers shift when the public is asked if it would make a difference if the Syrian regime used poison gas. In that case, opposition to U.S. intervention drops to 44-to-27 in Reuters/Ipsos.

Yet on the Sunday talk shows and cable news, the hawks are over-represented. To have a senator call for arming the rebels and U.S. air strikes is a better ratings "get" than to have on a senator who wants to stay out of the war. In that same CBS poll, however, the 10 percent of all Americans who say they follow the Syrian situation closely were evenly divided, 47-to-48, on whether to intervene. The portrait of America that emerges is of a nation not overly interested in what is going on in Syria, but which overwhelmingly wants to stay out of the war. But it is also a nation whose foreign policy elites are far more interventionist and far more supportive of sending weapons to the rebels and using U.S. air power. From these polls, it is hard not to escape the conclusion that the Beltway elites who shape U.S. foreign policy no longer represent the manifest will of Middle America.

When the greed, recklessness, and illegal behavior on Wall Street drove this country into the deepest recession since the 1930s, the largest financial institutions in the United States took every advantage of being American. They just loved their country - and the willingness of the American people to provide them with the largest bailout in world history. In 2008, Congress approved a $700 billion gift to Wall Street. Another $16 trillion in virtually zero interest loans and other financial assistance came from the Federal Reserve. America. What a great country. But just two years later, as soon as these giant financial institutions started making record-breaking profits again, they suddenly lost their love for their native country. At a time when the nation was suffering from a huge deficit, largely created by the recession that Wall Street caused, the major financial institutions did everything they could to avoid paying American taxes by establishing shell corporations in the Cayman Islands and other tax havens.

In 2010, Bank of America set up more than 200 subsidiaries in the Cayman Islands (which has a corporate tax rate of 0.0 percent) to avoid paying U.S. taxes. It worked. Not only did Bank of America pay nothing in federal income taxes, but it received a rebate from the IRS worth $1.9 billion that year. They are not alone. In 2010, JP Morgan Chase operated 83 subsidiaries incorporated in offshore tax havens to avoid paying some $4.9 billion in U.S. taxes. That same year Goldman Sachs operated 39 subsidiaries in offshore tax havens to avoid an estimated $3.3 billion in U.S. taxes. Citigroup has paid no federal income taxes for the last four years after receiving a total of $2.5 trillion in financial assistance from the Federal Reserve during the financial crisis. On and on it goes. Wall Street banks and large companies love America when they need corporate welfare. But when it comes to paying American taxes or American wages, they want nothing to do with this country. That has got to change.

Offshore tax abuse is not just limited to Wall Street. Each and every year corporations and the wealthy are avoiding more than $100 billion in U.S. taxes by sheltering their income offshore. Pharmaceutical companies like Eli Lilly and Pfizer have fought to make it illegal for the American people to buy cheaper prescription drugs from Canada and Europe. But, during tax season, Eli Lilly and Pfizer shift drug patents and profits to the Netherlands and other offshore tax havens to avoid paying U.S. taxes.

On Thursday, the Senate passed a bill that puts every American who travels by plane at risk.  It is among the stupidest pieces of legislation ever written and it explains– to a great extent– why the US Congress has a public approval rating of 13 percent and is among the most loathed institutions in America. The 2017 National Defense Authorization Act (NDAA) passed the House last Friday in a 375-34 vote. On Thursday, it cleared the senate with a 92 to 7 margin.  The bill will now be sent to Obama where it is expected to be signed into law. According to an article on SOFREP titled  “Congress authorizes anti-aircraft missiles for Syrian opposition”: Congress for the first time authorized the Department of Defense to provide vetted-Syrian rebels with anti-aircraft missiles. The provision is contained within the $619 billion Fiscal Year 2017 National Defense Authorization Act, which passed the Senate on Dec. 8 and the House on Dec. 2. Under the bill, the Secretaries of Defense and State must submit a report to Congress explaining why they determined Syrian groups need man-portable air defense systems (MANPADS). (SOFREP: Trusted News and Intelligence From Spec Ops Veterans, “Congress authorizes anti-aircraft missiles for Syrian opposition”)

You read that right, Congress just passed a bill that will provide shoulder-launched ground-to-air missiles to lunatic jihadists who will undoubtedly use them to take down American or Israeli jetliners. The argument that these Islamic militants are fully vetted is complete nonsense as both the New York Times and the Wall Street Journal have repeatedly shown. According to a recent article in the New York Times, rebel groups supported by the USG  “have entered into battlefield alliances with the affiliate of al Qaida in Syria formerly known as al Nusra.”  The Wall Street Journal reports that rebel groups are “doubling-down on their alliance with al Qaida. This alliance has rendered the phrase ‘moderate rebels’ meaningless.” Everyone who has followed developments on the ground in Syria knows that the distinction between the “good” terrorists and the “bad” terrorists is pure bunkum. The various militias are merely the many heads of the same homicidal anti-government hydra that has killed over 400,000 Syrians and decimated a large part of the country. The CIA should not be assisting any of these madmen let alone providing them with lethal state-of the-art weapons that will inevitably be used to take down US aircraft.  Here’s more from the same article: The inclusion of the provision represents a departure from previous versions of the NDAA. The original House bill specifically prohibited the transfer of MANPADS to “any entity” in Syria, while the Senate bill did not address it. So, the original bill forbid “the transfer of MANPADS” to Syrian militants because it was considered too dangerous. But now that Obama’s proxy-army is getting pulverized in Aleppo,  Congress has taken off the gloves and gone into full-revenge mode.  Isn’t that what’s really going on?

And it looks like Obama has already given this crazy policy a big thumbs up. Check out this “Presidential Determination and Waiver ….on the Arms Export Control Act to Support U.S. Special Operations to Combat Terrorism in Syria” that the White House issued late Thursday: By the authority vested in me as President by the Constitution and the laws of the United States, including section 2249a of title 10, United States Code, sections 40 and 40A of the Arms Export Control Act (AECA) (22 U.S.C. 2780 and 2781), and section 301 of title 3, United States Code, I hereby: determine that the transaction, encompassing the provision of defense articles and services to foreign forces, irregular forces, groups, or individuals engaged in supporting or facilitating ongoing U.S. military operations to counter terrorism in Syria, is essential to the national security interests of the United States.(Presidential Determination and Waiver) It looks to me like our Nobel prize-winning president just gave Congress’s idiot plan his ringing endorsement.

In the Spring of 2019, Californians will go to the polls in a historic vote to decide by referendum if California should exit the Union, a #Calexit vote. You will have this historic opportunity because the Yes California Independence Campaign will qualify a citizen’s initiative for the 2018 ballot that if passed would call for a special election for Californians to vote for or against the independence of California from the United States. This is a very important question. It is the responsibility of this campaign to explain what a yes vote will mean for you, your family, your community, our state, our country, and our world. We have designed this website to answer many of these questions and look to you to ask more. "As the sixth largest economy in the world, California is more economically powerful than France and has a population larger than Poland. Point by point, California compares and competes with countries, not just the 49 other states.” In our view, the United States of America represents so many things that conflict with Californian values, and our continued statehood means California will continue subsidizing the other states to our own detriment, and to the detriment of our children. Although charity is part of our culture, when you consider that California’s infrastructure is falling apart, our public schools are ranked among the worst in the entire country, we have the highest number of homeless persons living without shelter and other basic necessities, poverty rates remain high, income inequality continues to expand, and we must often borrow money from the future to provide services for today, now is not the time for charity. However, this independence referendum is about more than California subsidizing other states of this country. It is about the right to self-determination and the concept of voluntary association, both of which are supported by constitutional and international law. It is about California taking its place in the world, standing as an equal among nations. We believe in two fundamental truths: (1) California exerts a positive influence on the rest of the world, and (2) California could do more good as an independent country than it is able to do as just a U.S. state. In 2016, the United Kingdom voted to leave the international community with their “Brexit” vote. Our “Calexit” referendum is about California joining the international community. You have a big decision to make.

THE CASE FOR INDEPENDENCE IN 9 SIMPLE POINTS Being a U.S. state is no longer serving California’s best interests. On issues ranging from peace and security to natural resources and the environment, it has become increasingly true that California would be better off as an independent country. Here’s a summary of why we think so.

Saudi Arabia has warned the Obama administration and federal legislators that it will sell off U.S. Treasury debt worth $750 billion if Congress passes a law clearing the way for 9/11 victims to sue the kingdom for its alleged role in aiding the hijackers. according to a story in today’s New York Times.

Appearing on Michael Smerconish’s CNN program Saturday morning, former Senator Bob Graham, a leading advocate of declassifying 28 pages that allegedly implicate Saudi Arabia in the attacks, said, “I’m outraged but not surprised.” According to the Times report, the kingdom’s caution was personally delivered last month by Saudi foreign minister Adel al-Jubeir, who reportedly told legislators that, if the bill passes, Saudi Arabia would sell up to $750 billion in Treasury debt before it could be potentially frozen by U.S. courts.

Though presented as a necessity for Saudi Arabia’s own financial protection, Saudi Arabia’s cautionary statement is de facto economic threat against the United States. A sell-off would prompt an increase in U.S. Treasury interest rates, raising borrowing costs for the American government, businesses and consumers and potentially triggering an economic downturn that extends beyond our own shores. The Saudi warning was triggered by the legislative progress of the Justice Against Sponsors of Terrorism Act (JASTA), which would amend the Foreign Sovereign Immunities Act (FSIA). Last fall, Saudi Arabia was dropped from a lawsuit filed by 9/11 families, victims and insurers after a federal judge said the plaintiffs had failed to meet the high jurisdictional hurdles that FSIA imposes for claims against foreign governments.

as the out-of-control cabal of central banks inflated grotesque asset bubbles in global property, stock, and fixed-income markets? Or are we to believe traditional media’s “fake news” mantra of “it’s different this time?” Well, bad news, folks. It’s never different, not this time, not anytime, never.  Capitalism is being destroyed The US Federal Reserve, the Bank of England, and the European Central Bank have become gargantuan, out-of-control, rogue hedge funds. They are loaded with non-elected academics operating in opaque groupthink bubble chambers, repeating the broken Keynesian economic mantra of “whatever it takes, more debt is good”. They have magicked-up 100s of trillions in debt and guarantees, while the US Federal Reserve has gobbled up over 90% of the US mortgage market. Global stock market valuations are buoyed by stock buybacks, funded by record corporate debt, and enabled by reckless central bank zero-interest-rate policies. Pay no attention to the fact that in the past few years, US stock indices have surged over 70% to new all-time highs, while profits have only risen an anaemic 2%. Today’s record amount of corporate debt is cannibalising corporations, by bringing future earnings forward, which makes future stagnation and collapse into bankruptcy a certainty. For the near term, CEOs will continue to receive record pay packets for out-performing the market, as their stock prices bubble like a rocket ship into outer space, while these actions decimate any long-term growth prospects.

In 2005, preceding the credit crisis and the subsequent nationwide property price collapse, US Federal Reserve chairman, Dr Ben Bernanke was asked about risks associated with a dangerous subprime housing bubble that could destabilise the economy.  Bernanke stated that “I disagree with your premise. We’ve never had a decline in house prices on a nationwide basis. So, what I think is more likely is that house prices will slow, maybe stabilise: might slow consumption spending a bit. I don’t think it’s going to drive the economy too far from its full employment path, though.” So, what led to history’s biggest financial crisis in 2006? Too much debt, credit, and leverage—proving that Fed Chair Ben Bernanke was dead wrong. What did we learn? Nothing, a big fat zero. In fact, property prices have recently eclipsed previous 2006 highs, bubbling to frothy new all-time highs, while real wages declined and high-paying jobs have disappeared. 

Real estate is an asset but not an asset class because it lacks liquidity. It takes time to sell property and the difference between what a buyer is willing to pay and what a seller is willing to sell for may be huge. For example, a buyer may be willing to pay $750,000, but the seller will only sell at $900,000. In good times, frenzied buyers create “bidding wars” on coveted properties, sometimes rocketing the price 30% above the original offer. This is terrific if you are a property owner or property seller, but not so much if you are a first-time buyer. In bad times, prices collapse and the only price a buyer is willing to pay for the $900,000 home above is $90,000. Great for buyers, but not so great for the owner, who holds a mortgage of $700,000 that must be repaid to a bank.  During these boom times, optimism bias creeps into the minds of buyers, allowing them to pay off the charts, wildly inflated, irrational prices for fear of “missing out”. Optimism bias is a cognitive bias that causes a person to (mistakenly) believe nothing negative could ever happen to them. It is a “close your eyes and buy at new all-time highs” belief system. If the prices collapse, the banks can require more capital. If you do not have more capital, the bank can take your property. If the government wants to increase your taxes, you must pay or they will confiscate your property. In fact, property confiscations are already happening in Greece and Italy.  Commercial and residential real estate are now grotesque asset bubbles ready to explode. 

The practical consequence of solving this problem is that Bitcoin gives us, for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate. What kinds of digital property might be transferred in this way? Think about digital signatures, digital contracts, digital keys (to physical locks, or to online lockers), digital ownership of physical assets such as cars and houses, digital stocks and bonds … and digital money. All these are exchanged through a distributed network of trust that does not require or rely upon a central intermediary like a bank or broker. And all in a way where only the owner of an asset can send it, only the intended recipient can receive it, the asset can only exist in one place at a time, and everyone can validate transactions and ownership of all assets anytime they want.

This time, the Federal Reserve has created a truly global problem.  A big chunk of the trillions of dollars that it pumped into the financial system over the past several years has flowed into emerging markets.  But now that the Fed has decided to begin "the taper", investors see it as a sign to pull the "hot money" out of emerging markets as rapidly as possible.  This is causing currencies to collapse and interest rates to soar all over the planet.  Argentina, Turkey, South Africa, Ukraine, Chile, Indonesia, Venezuela, India, Brazil, Taiwan and Malaysia are just some of the emerging markets that have been hit hard so far.  In fact, last week emerging market currencies experienced the biggest decline that we have seen since the financial crisis of 2008.  And all of this chaos in emerging markets is seriously spooking Wall Street as well.  The Dow has fallen nearly 500 points over the last two trading sessions alone.  If the Federal Reserve opts to taper even more in the coming days, this currency crisis could rapidly turn into a complete and total currency collapse.

For more than six months, Edward Snowden’s revelations about the National Security Agency (NSA) have been pouring out from the Washington Post, the New York Times, the Guardian, Germany’s Der Spiegel, and Brazil’s O Globo, among other places.  Yet no one has pointed out the combination of factors that made the NSA’s expanding programs to monitor the world seem like such a slam-dunk development in Washington.  The answer is remarkably simple.  For an imperial power losing its economic grip on the planet and heading into more austere times, the NSA’s latest technological breakthroughs look like a bargain basement deal when it comes to projecting power and keeping subordinate allies in line -- like, in fact, the steal of the century.  Even when disaster turned out to be attached to them, the NSA’s surveillance programs have come with such a discounted price tag that no Washington elite was going to reject them.

What exactly was the aim of such an unprecedented program of massive domestic and planetary spying, which clearly carried the risk of controversy at home and abroad? Here, an awareness of the more than century-long history of U.S. surveillance can guide us through the billions of bytes swept up by the NSA to the strategic significance of such a program for the planet’s last superpower. What the past reveals is a long-term relationship between American state surveillance and political scandal that helps illuminate the unacknowledged reason why the NSA monitors America’s closest allies. Not only does such surveillance help gain intelligence advantageous to U.S. diplomacy, trade relations, and war-making, but it also scoops up intimate information that can provide leverage -- akin to blackmail -- in sensitive global dealings and negotiations of every sort. The NSA’s global panopticon thus fulfills an ancient dream of empire. With a few computer key strokes, the agency has solved the problem that has bedeviled world powers since at least the time of Caesar Augustus: how to control unruly local leaders, who are the foundation for imperial rule, by ferreting out crucial, often scurrilous, information to make them more malleable.

Once upon a time, such surveillance was both expensive and labor intensive. Today, however, unlike the U.S. Army’s shoe-leather surveillance during World War I or the FBI’s break-ins and phone bugs in the Cold War years, the NSA can monitor the entire world and its leaders with only 100-plus probes into the Internet’s fiber optic cables. This new technology is both omniscient and omnipresent beyond anything those lacking top-secret clearance could have imagined before the Edward Snowden revelations began.  Not only is it unimaginably pervasive, but NSA surveillance is also a particularly cost-effective strategy compared to just about any other form of global power projection. And better yet, it fulfills the greatest imperial dream of all: to be omniscient not just for a few islands, as in the Philippines a century ago, or a couple of countries, as in the Cold War era, but on a truly global scale. In a time of increasing imperial austerity and exceptional technological capability, everything about the NSA’s surveillance told Washington to just “go for it.”  This cut-rate mechanism for both projecting force and preserving U.S. global power surely looked like a no-brainer, a must-have bargain for any American president in the twenty-first century -- before new NSA documents started hitting front pages weekly, thanks to Snowden, and the whole world began returning the favor.

The insert method and other variants of QUANTUM are closely linked to a shadow network operated by the NSA alongside the Internet, with its own, well-hidden infrastructure comprised of "covert" routers and servers. It appears the NSA also incorporates routers and servers from non-NSA networks into its covert network by infecting these networks with "implants" that then allow the government hackers to control the computers remotely. (Click here to read a related article on the NSA's "implants".) In this way, the intelligence service seeks to identify and track its targets based on their digital footprints. These identifiers could include certain email addresses or website cookies set on a person's computer. Of course, a cookie doesn't automatically identify a person, but it can if it includes additional information like an email address. In that case, a cookie becomes something like the web equivalent of a fingerprint.

Once TAO teams have gathered sufficient data on their targets' habits, they can shift into attack mode, programming the QUANTUM systems to perform this work in a largely automated way. If a data packet featuring the email address or cookie of a target passes through a cable or router monitored by the NSA, the system sounds the alarm. It determines what website the target person is trying to access and then activates one of the intelligence service's covert servers, known by the codename FOXACID. This NSA server coerces the user into connecting to NSA covert systems rather than the intended sites. In the case of Belgacom engineers, instead of reaching the LinkedIn page they were actually trying to visit, they were also directed to FOXACID servers housed on NSA networks. Undetected by the user, the manipulated page transferred malware already custom tailored to match security holes on the target person's computer. The technique can literally be a race between servers, one that is described in internal intelligence agency jargon with phrases like: "Wait for client to initiate new connection," "Shoot!" and "Hope to beat server-to-client response." Like any competition, at times the covert network's surveillance tools are "too slow to win the race." Often enough, though, they are effective. Implants with QUANTUMINSERT, especially when used in conjunction with LinkedIn, now have a success rate of over 50 percent, according to one internal document.

At the same time, it is in no way true to say that the NSA has its sights set exclusively on select individuals. Of even greater interest are entire networks and network providers, such as the fiber optic cables that direct a large share of global Internet traffic along the world's ocean floors. One document labeled "top secret" and "not for foreigners" describes the NSA's success in spying on the "SEA-ME-WE-4" cable system. This massive underwater cable bundle connects Europe with North Africa and the Gulf states and then continues on through Pakistan and India, all the way to Malaysia and Thailand. The cable system originates in southern France, near Marseille. Among the companies that hold ownership stakes in it are France Telecom, now known as Orange and still partly government-owned, and Telecom Italia Sparkle. The document proudly announces that, on Feb. 13, 2013, TAO "successfully collected network management information for the SEA-Me-We Undersea Cable Systems (SMW-4)." With the help of a "website masquerade operation," the agency was able to "gain access to the consortium's management website and collected Layer 2 network information that shows the circuit mapping for significant portions of the network."

The House of Saud may be up to something in Crimea. Let’s pivot back to the desert to see how that could possibly be accomplished. A week ago, Minister of Information and Culture Abdelaziz Khoja proclaimed that the House of Saud “renews its firm position condemning terrorism in all its forms.” That was the preamble to ask all Saudi nationals, jihadists or otherwise, to abandon Syria. They were committing a crime, Saudi King Abdullah, ever closer to meeting his maker, decreed. Then, Saudi Arabia, the United Arab Emirates (UAE) and Bahrain all called their ambassadors from Qatar, under the pretext that Doha continues to support “hostile media,” as in Al Jazeera. Finally Saudi Arabia officially declared the Muslim Brotherhood, Al-Nusra Front (Al-Qaeda’s official Syrian branch) and the Islamic State of Iraq and the Levant (ISIL) - the rogue jihadists fighting both the Assad government in Syria and the Maliki government in Iraq - as terrorist organizations. Any Saudi member of any of these outfits not back to the Kingdom in 15 days would be thrown in jail for up to 30 years. By decree, the Saudi Interior Ministry (just in case) also branded as terrorists the Shiite Huthi rebels in northern Yemen, as well as an obscure, Saudi-based outfit called ‘Hezbollah Inside the Kingdom’. None of the above can so much as have a Facebook account.

Petromonarchy implosion It’s easy to laugh this off as the epic implosion of that prime collection of what the West calls ‘our’ bastards – the petromonarchies of the Gulf Cooperation Council (GCC), also known as Gulf Counter-Revolution Cub.

And yes, soon the whole thing degenerated into a trademark, vicious inter-Arab catfight. For Qataris, for instance - accused by the Saudis of “meddling” - the meddlers are in fact the Saudis, who supported the August 2013 military coup in Egypt and are responsible for the giant mess among fighting outfits in Syria. Predictably, reams of Saudi and Emirati journalists quit assorted Qatari media jobs, many following a ‘polite’ request by the Saudi Ministry of Culture and Information. Yet it's more complicated. The Saudi royal decree follows an ultra-hardline counterterrorism law which targets any sort of criticism of the House of Saud. So this is not only about the House of Saud being terrified of blowback from assorted hardcore jihadists, after they hone their skills in the Levant. They are terrified of anything that moves in and around Saudi Arabia. Imagine their feelings about the world at large. They are terrified of young, Westernized Saudis with ‘revolutionary’ ideas. They are terrified of jihad freelancers. They are terrified of Muslim Brothers supported by their cousins in Qatar – which the West, laughably, praises as practicing a ‘more moderate’ brand of medieval Wahhabism. The old Emir Hamad al Thani – who recently deposed himself to the benefit of his son Tamim – had skillfully manipulated the Brotherhood as the key lever of Doha’s wide Middle-Eastern ambitions.