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Gary Edwards

Jim Kunstler's 2014 Forecast - Burning Down The House | Zero Hedge - 0 views

www.zerohedge.com/...14-forecast-burning-down-house

Banksters

shared by Gary Edwards on 08 Jan 14 - No Cached
  • Gary Edwards on 08 Jan 14
     
    Incredible must read analysis. Take away: the world is going to go "medevil". It's the only way out of this mess. Since the zero hedge layout is so bad, i'm going to post as much of the article as Diigo will allow: Jim Kunstler's 2014 Forecast - Burning Down The House Submitted by Tyler Durden on 01/06/2014 19:36 -0500 Submitted by James H. Kunstler of Kunstler.com , Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It's like being buried alive in Jell-O. It's embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war. Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical "recovery" and the "shale gas miracle" on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations. Life in the USA is like living in a broken-down, cob-jobbed, vermin-infested house that needs to be gutted, disinfected, and rebuilt - with the hope that it might come out of the restoration process retaining the better qualities of our heritage.
Paul Merrell

Edward Snowden: A 'Nation' Interview | The Nation - 0 views

www.thenation.com/...wden-exile-exclusive-interview

surveillance state Snowden-interview

shared by Paul Merrell on 30 Oct 14 - No Cached
  • Snowden: That’s the key—to maintain the garden of liberty, right? This is a generational thing that we must all do continuously. We only have the rights that we protect. It doesn’t matter what we say or think we have. It’s not enough to believe in something; it matters what we actually defend. So when we think in the context of the last decade’s infringements upon personal liberty and the last year’s revelations, it’s not about surveillance. It’s about liberty. When people say, “I have nothing to hide,” what they’re saying is, “My rights don’t matter.” Because you don’t need to justify your rights as a citizen—that inverts the model of responsibility. The government must justify its intrusion into your rights. If you stop defending your rights by saying, “I don’t need them in this context” or “I can’t understand this,” they are no longer rights. You have ceded the concept of your own rights. You’ve converted them into something you get as a revocable privilege from the government, something that can be abrogated at its convenience. And that has diminished the measure of liberty within a society.
  • From the very beginning, I said there are two tracks of reform: there’s the political and the technical. I don’t believe the political will be successful, for exactly the reasons you underlined. The issue is too abstract for average people, who have too many things going on in their lives. And we do not live in a revolutionary time. People are not prepared to contest power. We have a system of education that is really a sort of euphemism for indoctrination. It’s not designed to create critical thinkers. We have a media that goes along with the government by parroting phrases intended to provoke a certain emotional response—for example, “national security.” Everyone says “national security” to the point that we now must use the term “national security.” But it is not national security that they’re concerned with; it is state security. And that’s a key distinction. We don’t like to use the phrase “state security” in the United States because it reminds us of all the bad regimes. But it’s a key concept, because when these officials are out on TV, they’re not talking about what’s good for you. They’re not talking about what’s good for business. They’re not talking about what’s good for society. They’re talking about the protection and perpetuation of a national state system. I’m not an anarchist. I’m not saying, “Burn it to the ground.” But I’m saying we need to be aware of it, and we need to be able to distinguish when political developments are occurring that are contrary to the public interest. And that cannot happen if we do not question the premises on which they’re founded. And that’s why I don’t think political reform is likely to succeed. [Senators] Udall and Wyden, on the intelligence committee, have been sounding the alarm, but they are a minority.
  • The Nation: Every president—and this seems to be confirmed by history—will seek to maximize his or her power, and will see modern-day surveillance as part of that power. Who is going to restrain presidential power in this regard? Snowden: That’s why we have separate and co-equal branches. Maybe it will be Congress, maybe not. Might be the courts, might not. But the idea is that, over time, one of these will get the courage to do so. One of the saddest and most damaging legacies of the Bush administration is the increased assertion of the “state secrets” privilege, which kept organizations like the ACLU—which had cases of people who had actually been tortured and held in indefinite detention—from getting their day in court. The courts were afraid to challenge executive declarations of what would happen. Now, over the last year, we have seen—in almost every single court that has had this sort of national-security case—that they have become markedly more skeptical. People at civil-liberties organizations say it’s a sea change, and that it’s very clear judges have begun to question more critically assertions made by the executive. Even though it seems so obvious now, it is extraordinary in the context of the last decade, because courts had simply said they were not the best branch to adjudicate these claims—which is completely wrong, because they are the only nonpolitical branch. They are the branch that is specifically charged with deciding issues that cannot be impartially decided by politicians. The power of the presidency is important, but it is not determinative. Presidents should not be exempted from the same standards of reason and evidence and justification that any other citizen or civil movement should be held to.
  • ...14 more annotations...
  • The Nation: Explain the technical reform you mentioned. Snowden: We already see this happening. The issue I brought forward most clearly was that of mass surveillance, not of surveillance in general. It’s OK if we wiretap Osama bin Laden. I want to know what he’s planning—obviously not him nowadays, but that kind of thing. I don’t care if it’s a pope or a bin Laden. As long as investigators must go to a judge—an independent judge, a real judge, not a secret judge—and make a showing that there’s probable cause to issue a warrant, then they can do that. And that’s how it should be done. The problem is when they monitor all of us, en masse, all of the time, without any specific justification for intercepting in the first place, without any specific judicial showing that there’s a probable cause for that infringement of our rights.
  • Since the revelations, we have seen a massive sea change in the technological basis and makeup of the Internet. One story revealed that the NSA was unlawfully collecting data from the data centers of Google and Yahoo. They were intercepting the transactions of data centers of American companies, which should not be allowed in the first place because American companies are considered US persons, sort of, under our surveillance authorities. They say, “Well, we were doing it overseas,” but that falls under a different Reagan-era authority: EO 12333, an executive order for foreign-intelligence collection, as opposed to the ones we now use domestically. So this one isn’t even authorized by law. It’s just an old-ass piece of paper with Reagan’s signature on it, which has been updated a couple times since then. So what happened was that all of a sudden these massive, behemoth companies realized their data centers—sending hundreds of millions of people’s communications back and forth every day—were completely unprotected, electronically naked. GCHQ, the British spy agency, was listening in, and the NSA was getting the data and everything like that, because they could dodge the encryption that was typically used. Basically, the way it worked technically, you go from your phone to Facebook.com, let’s say—that link is encrypted. So if the NSA is trying to watch it here, they can’t understand it. But what these agencies discovered was, the Facebook site that your phone is connected to is just the front end of a larger corporate network—that’s not actually where the data comes from. When you ask for your Facebook page, you hit this part and it’s protected, but it has to go on this long bounce around the world to actually get what you’re asking for and go back. So what they did was just get out of the protected part and they went onto the back network. They went into the private network of these companies.
  • The Nation: The companies knew this? Snowden: Companies did not know it. They said, “Well, we gave the NSA the front door; we gave you the PRISM program. You could get anything you wanted from our companies anyway—all you had to do was ask us and we’re gonna give it to you.” So the companies couldn’t have imagined that the intelligence communities would break in the back door, too—but they did, because they didn’t have to deal with the same legal process as when they went through the front door. When this was published by Barton Gellman in The Washington Post and the companies were exposed, Gellman printed a great anecdote: he showed two Google engineers a slide that showed how the NSA was doing this, and the engineers “exploded in profanity.” Another example—one document I revealed was the classified inspector general’s report on a Bush surveillance operation, Stellar Wind, which basically showed that the authorities knew it was unlawful at the time. There was no statutory basis; it was happening basically on the president’s say-so and a secret authorization that no one was allowed to see. When the DOJ said, “We’re not gonna reauthorize this because it is not lawful,” Cheney—or one of Cheney’s advisers—went to Michael Hayden, director of the NSA, and said, “There is no lawful basis for this program. DOJ is not going to reauthorize it, and we don’t know what we’re going to do. Will you continue it anyway on the president’s say-so?” Hayden said yes, even though he knew it was unlawful and the DOJ was against it. Nobody has read this document because it’s like twenty-eight pages long, even though it’s incredibly important.
  • The big tech companies understood that the government had not only damaged American principles, it had hurt their businesses. They thought, “No one trusts our products anymore.” So they decided to fix these security flaws to secure their phones. The new iPhone has encryption that protects the contents of the phone. This means if someone steals your phone—if a hacker or something images your phone—they can’t read what’s on the phone itself, they can’t look at your pictures, they can’t see the text messages you send, and so forth. But it does not stop law enforcement from tracking your movements via geolocation on the phone if they think you are involved in a kidnapping case, for example. It does not stop law enforcement from requesting copies of your texts from the providers via warrant. It does not stop them from accessing copies of your pictures or whatever that are uploaded to, for example, Apple’s cloud service, which are still legally accessible because those are not encrypted. It only protects what’s physically on the phone. This is purely a security feature that protects against the kind of abuse that can happen with all these things being out there undetected. In response, the attorney general and the FBI director jumped on a soap box and said, “You are putting our children at risk.”
  • The Nation: Is there a potential conflict between massive encryption and the lawful investigation of crimes? Snowden: This is the controversy that the attorney general and the FBI director were trying to create. They were suggesting, “We have to be able to have lawful access to these devices with a warrant, but that is technically not possible on a secure device. The only way that is possible is if you compromise the security of the device by leaving a back door.” We’ve known that these back doors are not secure. I talk to cryptographers, some of the leading technologists in the world, all the time about how we can deal with these issues. It is not possible to create a back door that is only accessible, for example, to the FBI. And even if it were, you run into the same problem with international commerce: if you create a device that is famous for compromised security and it has an American back door, nobody is gonna buy it. Anyway, it’s not true that the authorities cannot access the content of the phone even if there is no back door. When I was at the NSA, we did this every single day, even on Sundays. I believe that encryption is a civic responsibility, a civic duty.
  • The Nation: Some years ago, The Nation did a special issue on patriotism. We asked about a hundred people how they define it. How do you define patriotism? And related to that, you’re probably the world’s most famous whistleblower, though you don’t like that term. What characterization of your role do you prefer? Snowden: What defines patriotism, for me, is the idea that one rises to act on behalf of one’s country. As I said before, that’s distinct from acting to benefit the government—a distinction that’s increasingly lost today. You’re not patriotic just because you back whoever’s in power today or their policies. You’re patriotic when you work to improve the lives of the people of your country, your community and your family. Sometimes that means making hard choices, choices that go against your personal interest. People sometimes say I broke an oath of secrecy—one of the early charges leveled against me. But it’s a fundamental misunderstanding, because there is no oath of secrecy for people who work in the intelligence community. You are asked to sign a civil agreement, called a Standard Form 312, which basically says if you disclose classified information, they can sue you; they can do this, that and the other. And you risk going to jail. But you are also asked to take an oath, and that’s the oath of service. The oath of service is not to secrecy, but to the Constitution—to protect it against all enemies, foreign and domestic. That’s the oath that I kept, that James Clapper and former NSA director Keith Alexander did not. You raise your hand and you take the oath in your class when you are on board. All government officials are made to do it who work for the intelligence agencies—at least, that’s where I took the oath.
  • The Nation: Creating a new system may be your transition, but it’s also a political act. Snowden: In case you haven’t noticed, I have a somewhat sneaky way of effecting political change. I don’t want to directly confront great powers, which we cannot defeat on their terms. They have more money, more clout, more airtime. We cannot be effective without a mass movement, and the American people today are too comfortable to adapt to a mass movement. But as inequality grows, the basic bonds of social fraternity are fraying—as we discussed in regard to Occupy Wall Street. As tensions increase, people will become more willing to engage in protest. But that moment is not now.
  • The Nation: You really think that if you could go home tomorrow with complete immunity, there wouldn’t be irresistible pressure on you to become a spokesperson, even an activist, on behalf of our rights and liberties? Indeed, wouldn’t that now be your duty? Snowden: But the idea for me now—because I’m not a politician, and I do not think I am as effective in this way as people who actually prepare for it—is to focus on technical reform, because I speak the language of technology. I spoke with Tim Berners-Lee, the guy who invented the World Wide Web. We agree on the necessity for this generation to create what he calls the Magna Carta for the Internet. We want to say what “digital rights” should be. What values should we be protecting, and how do we assert them? What I can do—because I am a technologist, and because I actually understand how this stuff works under the hood—is to help create the new systems that reflect our values. Of course I want to see political reform in the United States. But we could pass the best surveillance reforms, the best privacy protections in the history of the world, in the United States, and it would have zero impact internationally. Zero impact in China and in every other country, because of their national laws—they won’t recognize our reforms; they’ll continue doing their own thing. But if someone creates a reformed technical system today—technical standards must be identical around the world for them to function together.
  • As for labeling someone a whistleblower, I think it does them—it does all of us—a disservice, because it “otherizes” us. Using the language of heroism, calling Daniel Ellsberg a hero, and calling the other people who made great sacrifices heroes—even though what they have done is heroic—is to distinguish them from the civic duty they performed, and excuses the rest of us from the same civic duty to speak out when we see something wrong, when we witness our government engaging in serious crimes, abusing power, engaging in massive historic violations of the Constitution of the United States. We have to speak out or we are party to that bad action.
  • The Nation: Considering your personal experience—the risks you took, and now your fate here in Moscow—do you think other young men or women will be inspired or discouraged from doing what you did? Snowden: Chelsea Manning got thirty-five years in prison, while I’m still free. I talk to people in the ACLU office in New York all the time. I’m able to participate in the debate and to campaign for reform. I’m just the first to come forward in the manner that I did and succeed. When governments go too far to punish people for actions that are dissent rather than a real threat to the nation, they risk delegitimizing not just their systems of justice, but the legitimacy of the government itself. Because when they bring political charges against people for acts that were clearly at least intended to work in the public interest, they deny them the opportunity to mount a public-interest defense. The charges they brought against me, for example, explicitly denied my ability to make a public-interest defense. There were no whistleblower protections that would’ve protected me—and that’s known to everybody in the intelligence community. There are no proper channels for making this information available when the system fails comprehensively.
  • The government would assert that individuals who are aware of serious wrongdoing in the intelligence community should bring their concerns to the people most responsible for that wrongdoing, and rely on those people to correct the problems that those people themselves authorized. Going all the way back to Daniel Ellsberg, it is clear that the government is not concerned with damage to national security, because in none of these cases was there damage. At the trial of Chelsea Manning, the government could point to no case of specific damage that had been caused by the massive revelation of classified information. The charges are a reaction to the government’s embarrassment more than genuine concern about these activities, or they would substantiate what harms were done. We’re now more than a year since my NSA revelations, and despite numerous hours of testimony before Congress, despite tons of off-the-record quotes from anonymous officials who have an ax to grind, not a single US official, not a single representative of the United States government, has ever pointed to a single case of individualized harm caused by these revelations. This, despite the fact that former NSA director Keith Alexander said this would cause grave and irrevocable harm to the nation. Some months after he made that statement, the new director of the NSA, Michael Rogers, said that, in fact, he doesn’t see the sky falling. It’s not so serious after all.
  • The Nation: You also remind us of [Manhattan Project physicist] Robert Oppenheimer—what he created and then worried about. Snowden: Someone recently talked about mass surveillance and the NSA revelations as being the atomic moment for computer scientists. The atomic bomb was the moral moment for physicists. Mass surveillance is the same moment for computer scientists, when they realize that the things they produce can be used to harm a tremendous number of people. It is interesting that so many people who become disenchanted, who protest against their own organizations, are people who contributed something to them and then saw how it was misused. When I was working in Japan, I created a system for ensuring that intelligence data was globally recoverable in the event of a disaster. I was not aware of the scope of mass surveillance. I came across some legal questions when I was creating it. My superiors pushed back and were like, “Well, how are we going to deal with this data?” And I was like, “I didn’t even know it existed.” Later, when I found out that we were collecting more information on American communications than we were on Russian communications, for example, I was like, “Holy shit.” Being confronted with the realization that work you intended to benefit people is being used against them has a radicalizing effect.
  • The Nation: We have a sense, or certainly the hope, we’ll be seeing you in America soon—perhaps sometime after this Ukrainian crisis ends. Snowden: I would love to think that, but we’ve gone all the way up the chain at all the levels, and things like that. A political decision has been made not to irritate the intelligence community. The spy agencies are really embarrassed, they’re really sore—the revelations really hurt their mystique. The last ten years, they were getting the Zero Dark Thirty treatment—they’re the heroes. The surveillance revelations bring them back to Big Brother kind of narratives, and they don’t like that at all. The Obama administration almost appears as though it is afraid of the intelligence community. They’re afraid of death by a thousand cuts—you know, leaks and things like that.
  • The Nation: You’ve given us a lot of time, and we are very grateful, as will be The Nation’s and other readers. But before we end, any more thoughts about your future? Snowden: If I had to guess what the future’s going to look like for me—assuming it’s not an orange jumpsuit in a hole—I think I’m going to alternate between tech and policy. I think we need that. I think that’s actually what’s missing from government, for the most part. We’ve got a lot of policy people, but we have no technologists, even though technology is such a big part of our lives. It’s just amazing, because even these big Silicon Valley companies, the masters of the universe or whatever, haven’t engaged with Washington until recently. They’re still playing catch-up. As for my personal politics, some people seem to think I’m some kind of archlibertarian, a hyper-conservative. But when it comes to social policies, I believe women have the right to make their own choices, and inequality is a really important issue. As a technologist, I see the trends, and I see that automation inevitably is going to mean fewer and fewer jobs. And if we do not find a way to provide a basic income for people who have no work, or no meaningful work, we’re going to have social unrest that could get people killed. When we have increasing production—year after year after year—some of that needs to be reinvested in society. It doesn’t need to be consistently concentrated in these venture-capital funds and things like that. I’m not a communist, a socialist or a radical. But these issues have to be 
addressed.
  • Paul Merrell on 30 Oct 14
     
    Remarkable interview. Snowden finally gets asked some questions about politics. 
Gary Edwards

The Daily Bell - Gerald Celente on Multinationalism, Breaking the Chains and Individual... - 0 views

www.thedailybell.com/...ins-and-Individual-Renaissance

gerald-celente Globalist-Elites

shared by Gary Edwards on 04 Nov 13 - No Cached
  • Gerald Celente: As I said, they're in a trap and it's a tapering trap, the quantitative easing trap. They can't keep printing more money because it's going to devalue the currency. And by the way, this is complicated, because it's not only the United States that's doing it; most of the central banks are doing it. China, the Europeans – they're all pumping money into their systems to keep them afloat. They're all in a trap. A time comes when you just can't keep doing it anymore. You can only take heroin so much before it kills you. This is monetary methadone and it's not going to cure the problem so they're going to have to stop. When it stops, that's when we go back into a recession and/or a depression.
  • Is it a depression? Is it a depression if you live in Greece or Spain or Portugal? Is it a depression if you're among the over 12% unemployed in Italy? When you look at John Williams's ShadowStats, in the US we're looking at about 22% unemployment. So yes, it's a depression for a lot of people. And then again, median household income in the US, accounting for inflation, is 10% below 1999 levels. That's a fact. So if you're earning 10 percent less for your family than you were in 1999 and the costs have skyrocketed since then, particularly in healthcare, food, rent, property, gas and other costs, do you think you're living in a depression? Daily Bell: Is central banking an art, a science or just a fraud?
  • Gerald Celente: Neither. It's a criminal operation. Throughout the 1800s, one of the major issues of every presidential election was whether or not to have a central bank. They fought it successfully not to have one until 1913. These are private banks that are running our country and many others. This goes back to the scriptures; it's Christ chasing the moneychangers out of the temple. The moneychangers have just got new names – Deutsche Bank, Societe Generale, Goldman Sachs, JPMorgan Chase, and, of course, JPMorgan Chase got that name because you're going to have to chase them to get your money because they just put a limit on how much you can withdraw or deposit each month in certain accounts, with a limit of $50,000.
  • ...21 more annotations...
  • Daily Bell: It seems like people don't believe in central banking anymore so why does it continue? What holds it up in a so-called democracy where people have a vote? Gerald Celente: Most people don't even know what a central bank is and they still believe the lie that the Federal Reserve is a quasi-government institution when it's not. It's a totally private bank. Most people don't even know that. So most people are uninformed and like in all countries, they follow their leaders. Very few people rebel. There was an incident that happened in late October in the States. Hillary Clinton was speaking in Buffalo, delivering her model for what is required to solve complex problems. There was a heckler in the crowd who she admonished by saying, "... which doesn't include yelling. It includes sitting down and talking." What patronizing bullshit. You know what happened? The audience of 6,500 stood up and gave her a standing ovation that extended on and on. So it's the people. The people can blame the politicians all they want, but as I see it, it's the people's responsibility for the state of their nation.
  • Daily Bell: What's the employment picture like going forward in the US?
  • Gerald Celente: Lower paying jobs, less benefits, more temporary jobs and I think the question at the end is rather than going forward in the US it should be what's going forward in Slavelandia, because that's what it's become. You get out of college and you're an indentured servant. For the rest of your life you have to pay off your debt for your degree in worthlessness, for the most part. There are degrees that are worth something but not a lot of them. Where are you going to work? Name the company – Macy's? Starbucks? You can become a barista. Are they going to start teaching Shipping & Handling 101 in college? What are they going to do? Who are you going to work for? What are you going to do – stock shelves? This is better than slavery because when they had the plantation you had to take care of the slaves. Now you can just use them up and send them home. It's kind of like Bangladesh right here in the good 'ol USA.
  • Daily Bell: How about the rest of the world? Give us a global summary.
  • Gerald Celente: The global summary is this: Everybody can see what happened when the Federal Reserve talked about tapering several months ago. All of a sudden you saw the emerging markets start to crash; they dropped about 11% in a year before the Fed reversed its policy because all the hot, low-interest rate money that was leaving the US was flowing into the emerging markets, where you could borrow the money cheaply. So when they started to talk about tapering the hot money started flowing out of these countries, such as India, Brazil. They were really suffering from it and so were their stock markets. So without the cheap money flowing from the central banks, the entire global economy goes on stall and then it turns negative. You can see what's going on in China now; they're facing a banking crisis. Real estate prices in cities like Shanghai and Beijing have gone up over 20% in a year and no matter how the government tries to deflate it, the housing bubble keeps growing. The banks also have a lot of bad loans they're carrying. Now the Chinese government is trying to restrain that free-flow of cheap money, and what happens to their stock market when they do? It dives and the contagion spreads to other Asian equity markets. They all start dropping. It's all tied to cheap money and when the cheap money spigot begins to tighten up the global economy goes down. As I've made very clear, when the interest rates go up the economies go down – it's as simple as that. They've run out of this game. Compare this with the Great Depression, when it began essentially in 1930. This recession begin in 2008. It's now 2013 – we're only in 1935.
  • Daily Bell: China and the BRICS seem to be making noises about setting up their own monetary infrastructure without the dollar. Will that happen?
  • Gerald Celente: Yes, they are making noise, but reality is another issue, and the currency issue is complicated. The dollar goes down but where are you going to go, the euro? We were talking briefly about what's going on in Europe. There's financial market propaganda boasting that the worst of the eurozone crisis is over. They're bragging that The GDP of Spain was just reported to have gone up 0.1% and they made a big deal out of it. "The recession's over" is the B.S. message. No, the recession is not over! They're cooking the numbers to make a rotten situation look less rotten. In countries like Greece and Spain, youth unemployment is running above 50% and overall unemployment around 30%. The recession continues unabated, and there's absolutely no way out of this and they can't print their way out. Portugal, Italy, Greece, Spain, Ireland are doing terrible – what would anyone substitute euros for dollars? And what other currency choices are there, the yuan? As I mentioned, China has plenty of its own problems. They've been dumping a lot of cash into that society to keep it going. You know what China's greatest fear is? It's not the Spratly Islands or the South and China Sea territorial problems that are going on between them, the Philippines, Vietnam or the Japanese. China's greatest fear is its people. They've got 1.2 billion of them and if they're hungry or not happy there's going to be a lot of problems.
  • Again, what do you substitute the dollar for, Brazil's real or the Indian rupee? Remember, we saw what happened when the hot money started leaving the emerging market countries. The South African rand is also under pressure. The BRIC nations can speak as much as they want and they may have the greatest intention to create another reserve currency, but the fact is their economies are not robust or independent enough to create one at this time. As I said, talk is one thing, facts are another and although the world is less dependent on the dollar it is still by far the major reserve currency of the world and I don't see that rapidly changing unless there's a catastrophe that would cause it to happen. However, over the years, I do expect a new reserve model to develop.
  • Daily Bell: Let's talk about military action, particularly in Syria where Al Qaeda types have been fighting on the side of the US and NATO. Why does the US want to destabilize Syria and what country will be next – Iran? Russia?
  • Gerald Celente: We wrote about this in the Trends Journal going back to 2011. After Libya fell, Syria was the only port that the Chinese and the Russians had in the Mediterranean – the Port of Tartus. And also, Syria's only real ally in that area is Iran and, of course, Hezbollah in Lebanon. So with Syria out of the way there's nothing in the Middle East other than Iran to stop the continued spread of US influence and control in that area. It's really more about that than anything we see – again, having more control over that area for the US to do as it wants, with Iran really being the main target.
  • When President Obama backed off his red line threat and didn't attack Syria that was a tipping point. And, as important, the vast majority of Americans opposed the attack plan. That was a significant statement. The country said it was tired of war – and so are a lot of other nations.
  • Gerald Celente: Again, talk about morality and the recent Amnesty International report that said the United States was breaking international law in its use of drones to kill people that were convicted of nothing in addition to innocent people. How much more immoral could you get?
  • I can tell you how much immoral. How about starting wars in Afghanistan and Iraq – in Iraq with the proof that a war was started that killed at least a half a million people that was started under fake reasons; lies that Saddam Hussein had weapons of mass destruction and ties to al Qaeda. An Afghan war that's the longest war in American history, the war in Libya that they called a time-limed, scope-limited kinetic action that's destroyed the entire nation. You want to talk about immorality? How about the "too big to fail"? The government mandated immoral act of stealing money from the American people to give it to the banks, financiers and favored corporations? They say the fish rots from the head down and that's it; the fish has rotted in America for a long time. It didn't start with Obama. It goes back to Bush, Clinton, and keeps going back. Society gets the message from the top and, as I see it, they're simply following their leaders. For example, if their leader can start wars, rob people, take their money, why shouldn't I? Why should I operate on a moral level when immorality is condoned at the top?
  • Most recently, the United States government, in virtually every fashion of behavior, has been fascist. I don't say that by throwing the word out loosely. It's called the merger of corporate state and powers. It goes back to "too big to fail." Under capitalism there's no such thing. You're not too big to fail; you fail. Big, small, medium, you fail – it's capitalism.
  • Not anymore. You have your money taken from you by government order and it's transferred to the people who are the most favored by those in power. That's the only reason why the stock market keeps going up and why the multinationals are doing so well. That's where the $85 billion a month that the Federal Reserve is using in their quantitative easing is going. Then when you look at the other levels of immorality, as I mentioned, why shouldn't people feel as though they can do anything the government is doing? That's why it just keeps getting worse and worse. It's reflected in the music, the politics, every element of culture – both pop culture and political culture.
  • Under the dictates of the eurozone and globalization, the love of one's culture and pride of nation is denounced as "populism."
  • Daily Bell: Let's talk hard money. Can you give us an update on the price action of gold and silver? How about equity? Where is the stock market headed? We think the big boys are trying to rev it up and go for one last killing. Your thoughts?
  • Gerald Celente: The stock market will continue to rise as long as interest rates stay low. That's the best estimate you could give. They keep all of this quantitative easing that, for example, benefits the big private equity firms. Look what's going on in the United States with Blackstone Group. They own 40,000 homes. Where are they getting the money? Deutsche Bank is loaning them tons of money because they're getting money with overnight rates near zero, and they in turn loan it to the "bigs" really cheaply so it is just another example of what's keeping the whole stock market scam going.
  • As long as the money stays cheap the stock market keeps going up. As the money stays cheap gold and silver go up, and you're seeing gold making a bit of a rebound lately because of, again going back to the employment numbers in the States – there is no recovery, the jobs stink, they're not creating enough jobs. The tapering keeps going on, which is a devaluation of the currency, and quantitative easing continues. As long as money stays cheap gold goes up. Now, gold may go down when quantitative easing and tapering slow down. However, that's only going to be temporary because when that happens the bond market's going to explode, when interest rates go up, there's going to be another financial crisis. My best analysis at this time is the second quarter of 2014. The 'experts' are saying the stock market is booming. It has gone from a 14,000 high in 2007 to mid-15,000 now. Accounting for inflation, the stock market has to be about 15,750 just to be back at the 2007 level.
  • Daily Bell: There are other trends, of course, ones you often mention. You spoke to us last time about the New Millennium Renaissance.
  • Gerald Celente: Back to the renaissance... To me, that's the only thing that's going to change the future. We need a cultural, artistic and moral redevelopment, a restoration. Every issue that we've been talking about so far is based on human behavior and the human spirit – morality or immorality. Until morality is restored and the human spirit rises, nothing's going to change. As I was mentioning before, the fish rots from the head down. If you see the people at the head acting immorally, and from the head all the way down, why shouldn't you or I act immorally? What license do they have to steal that we don't? What license do they have to kill that we shouldn't?
Paul Merrell

Fukushima - A Global Threat That Requires a Global Response - 0 views

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environment pollution radiation Fukushima disaster

shared by Paul Merrell on 26 Oct 13 - No Cached
  • The story of Fukushima should be on the front pages of every newspaper. Instead, it is rarely mentioned. The problems at Fukushima are unprecedented in human experience and involve a high risk of radiation events larger than any that the global community has ever experienced. It is going to take the best engineering minds in the world to solve these problems and to diminish their global impact. When we researched the realities of Fukushima in preparation for this article, words like apocalyptic, cataclysmic and Earth-threatening came to mind. But, when we say such things, people react as if we were the little red hen screaming "the sky is falling" and the reports are ignored. So, we’re going to present what is known in this article and you can decide whether we are facing a potentially cataclysmic event.
  • There are three major problems at Fukushima: (1) Three reactor cores are missing; (2) Radiated water has been leaking from the plant in mass quantities for 2.5 years; and (3) Eleven thousand spent nuclear fuel rods, perhaps the most dangerous things ever created by humans, are stored at the plant and need to be removed, 1,533 of those are in a very precarious and dangerous position. Each of these three could result in dramatic radiation events, unlike any radiation exposure humans have ever experienced.  We’ll discuss them in order, saving the most dangerous for last.
  • Missing reactor cores:  Since the accident at Fukushima on March 11, 2011, three reactor cores have gone missing.  There was an unprecedented three reactor ‘melt-down.’ These melted cores, called corium lavas, are thought to have passed through the basements of reactor buildings 1, 2 and 3, and to be somewhere in the ground underneath.  Harvey Wasserman, who has been working on nuclear energy issues for over 40 years, tells us that during those four decades no one ever talked about the possibility of a multiple meltdown, but that is what occurred at Fukushima.  It is an unprecedented situation to not know where these cores are. TEPCO is pouring water where they think the cores are, but they are not sure. There are occasional steam eruptions coming from the grounds of the reactors, so the cores are thought to still be hot. The concern is that the corium lavas will enter or may have already entered the aquifer below the plant. That would contaminate a much larger area with radioactive elements. Some suggest that it would require the area surrounding Tokyo, 40 million people, to be evacuated. Another concern is that if the corium lavas enter the aquifer, they could create a "super-heated pressurized steam reaction beneath a layer of caprock causing a major 'hydrovolcanic' explosion." A further concern is that a large reserve of groundwater which is coming in contact with the corium lavas is migrating towards the ocean at the rate of four meters per month. This could release greater amounts of radiation than were released in the early days of the disaster.
  • ...15 more annotations...
  • Radioactive water leaking into the Pacific Ocean:  TEPCO did not admit that leaks of radioactive water were occurring until July of this year. Shunichi Tanaka the head of Japan’s Nuclear Regulation Authority finally told reporters this July that radioactive water has been leaking into the Pacific Ocean since the disaster hit over two years ago. This is the largest single contribution of radionuclides to the marine environment ever observed according to a report by the French Institute for Radiological Protection and Nuclear Safety.  The Japanese government finally admitted that the situation was urgent this September – an emergency they did not acknowledge until 2.5 years after the water problem began. How much radioactive water is leaking into the ocean? An estimated 300 tons (71,895 gallons/272,152 liters) of contaminated water is flowing into the ocean every day.  The first radioactive ocean plume released by the Fukushima nuclear power plant disaster will take three years to reach the shores of the United States.  This means, according to a new study from the University of New South Wales, the United States will experience the first radioactive water coming to its shores sometime in early 2014.
  • One month after Fukushima, the FDA announced it was going to stop testing fish in the Pacific Ocean for radiation.  But, independent research is showing that every bluefin tuna tested in the waters off California has been contaminated with radiation that originated in Fukushima. Daniel Madigan, the marine ecologist who led the Stanford University study from May of 2012 was quoted in the Wall Street Journal saying, "The tuna packaged it up (the radiation) and brought it across the world’s largest ocean. We were definitely surprised to see it at all and even more surprised to see it in every one we measured." Marine biologist Nicholas Fisher of Stony Brook University in New York State, another member of the study group, said: "We found that absolutely every one of them had comparable concentrations of cesium 134 and cesium 137." In addition, Science reports that fish near Fukushima are being found to have high levels of the radioactive isotope, cesium-134. The levels found in these fish are not decreasing,  which indicates that radiation-polluted water continues to leak into the ocean. At least 42 fish species from the area around the plant are considered unsafe.  South Korea has banned Japanese fish as a result of the ongoing leaks.
  • Wasserman builds on the analogy, telling us it is "worse than pulling cigarettes out of a crumbled cigarette pack." It is likely they used salt water as a coolant out of desperation, which would cause corrosion because the rods were never meant to be in salt water.  The condition of the rods is unknown. There is debris in the coolant, so there has been some crumbling from somewhere. Gundersen  adds, "The roof has fallen in, which further distorted the racks," noting that if a fuel rod snaps, it will release radioactive gas which will require at a minimum evacuation of the plant. They will release those gases into the atmosphere and try again. The Japan Times writes: "The consequences could be far more severe than any nuclear accident the world has ever seen. If a fuel rod is dropped, breaks or becomes entangled while being removed, possible worst case scenarios include a big explosion, a meltdown in the pool, or a large fire. Any of these situations could lead to massive releases of deadly radionuclides into the atmosphere, putting much of Japan — including Tokyo and Yokohama — and even neighboring countries at serious risk."  
  • The most recent news on the water problem at Fukushima adds to the concerns. On October 11, 2013, TEPCO disclosed that the radioactivity level spiked 6,500 times at a Fukushima well.  "TEPCO said the findings show that radioactive substances like strontium have reached the groundwater. High levels of tritium, which transfers much easier in water than strontium, had already been detected." Spent Fuel Rods:  As bad as the problems of radioactive water and missing cores are, the biggest problem at Fukushima comes from the spent fuel rods.  The plant has been in operation for 40 years. As a result, they are storing 11 thousand spent fuel rods on the grounds of the Fukushima plant. These fuel rods are composed of highly radioactive materials such as plutonium and uranium. They are about the width of a thumb and about 15 feet long. The biggest and most immediate challenge is the 1,533 spent fuel rods packed tightly in a pool four floors above Reactor 4.  Before the storm hit, those rods had been removed for routine maintenance of the reactor.  But, now they are stored 100 feet in the air in damaged racks.  They weigh a total of 400 tons and contain radiation equivalent to 14,000 times the amount released by the Hiroshima atomic bomb.
  • The building in which these rods are stored has been damaged. TEPCO reinforced it with a steel frame, but the building itself is buckling and sagging, vulnerable to collapse if another earthquake or storm hits the area. Additionally, the ground under and around the building is becoming saturated with water, which further undermines the integrity of the structure and could cause it to tilt. How dangerous are these fuel rods?  Harvey Wasserman explains that the fuel rods are clad in zirconium which can ignite if they lose coolant. They could also ignite or explode if rods break or hit each other. Wasserman reports that some say this could result in a fission explosion like an atomic bomb, others say that is not what would happen, but agree it would be "a reaction like we have never seen before, a nuclear fire releasing incredible amounts of radiation," says Wasserman. These are not the only spent fuel rods at the plant, they are just the most precarious.  There are 11,000 fuel rods scattered around the plant, 6,000 in a cooling pool less than 50 meters from the sagging Reactor 4.  If a fire erupts in the spent fuel pool at Reactor 4, it could ignite the rods in the cooling pool and lead to an even greater release of radiation. It could set off a chain reaction that could not be stopped.
  • What would happen? Wasserman reports that the plant would have to be evacuated.  The workers who are essential to preventing damage at the plant would leave, and we will have lost a critical safeguard.  In addition, the computers will not work because of the intense radiation. As a result we would be blind - the world would have to sit and wait to see what happened. You might have to not only evacuate Fukushima but all of the population in and around Tokyo, reports Wasserman.  There is no question that the 1,533 spent fuel rods need to be removed.  But Arnie Gundersen, a veteran nuclear engineer and director of Fairewinds Energy Education, who used to build fuel assemblies, told Reuters "They are going to have difficulty in removing a significant number of the rods." He described the problem in a radio interview: "If you think of a nuclear fuel rack as a pack of cigarettes, if you pull a cigarette straight up it will come out — but these racks have been distorted. Now when they go to pull the cigarette straight out, it’s going to likely break and release radioactive cesium and other gases, xenon and krypton, into the air. I suspect come November, December, January we’re going to hear that the building’s been evacuated, they’ve broke a fuel rod, the fuel rod is off-gassing."
  • As bad as the ongoing leakage of radioactive water is into the Pacific, that is not the largest part of the water problem.  The Asia-Pacific Journal reported last month that TEPCO has 330,000 tons of water stored in 1,000 above-ground tanks and an undetermined amount in underground storage tanks.  Every day, 400 tons of water comes to the site from the mountains, 300 tons of that is the source for the contaminated water leaking into the Pacific daily. It is not clear where the rest of this water goes.   Each day TEPCO injects 400 tons of water into the destroyed facilities to keep them cool; about half is recycled, and the rest goes into the above-ground tanks. They are constantly building new storage tanks for this radioactive water. The tanks being used for storage were put together rapidly and are already leaking. They expect to have 800,000 tons of radioactive water stored on the site by 2016.  Harvey Wasserman warns that these unstable tanks are at risk of rupture if there is another earthquake or storm that hits Fukushima. The Asia-Pacific Journal concludes: "So at present there is no real solution to the water problem."
  • This is not the usual moving of fuel rods.  TEPCO has been saying this is routine, but in fact it is unique – a feat of engineering never done before.  As Gundersen says: "Tokyo Electric is portraying this as easy. In a normal nuclear reactor, all of this is done with computers. Everything gets pulled perfectly vertically. Well nothing is vertical anymore, the fuel racks are distorted, it’s all going to have to be done manually. The net effect is it’s a really difficult job. It wouldn’t surprise me if they snapped some of the fuel and they can’t remove it." Gregory Jaczko, Former Chairman of the U.S. Nuclear Regulatory Commission concurs with Gundersen describing the removal of the spent fuel rods as "a very significant activity, and . . . very, very unprecedented." Wasserman sums the challenge up: "We are doing something never done before – bent, crumbling, brittle fuel rods being removed from a pool that is compromised, in a building that is sinking, sagging and buckling, and it all must done under manual control, not with computers."  And the potential damage from failure would affect hundreds of millions of people.
  • The first thing that is needed is to end the media blackout.  The global public needs to be informed about the issues the world faces from Fukushima.  The impacts of Fukushima could affect almost everyone on the planet, so we all have a stake in the outcome.  If the public is informed about this problem, the political will to resolve it will rapidly develop. The nuclear industry, which wants to continue to expand, fears Fukushima being widely discussed because it undermines their already weak economic potential.  But, the profits of the nuclear industry are of minor concern compared to the risks of the triple Fukushima challenges. 
  • The second thing that must be faced is the incompetence of TEPCO.  They are not capable of handling this triple complex crisis. TEPCO "is already Japan’s most distrusted firm" and has been exposed as "dangerously incompetent."  A poll found that 91 percent of the Japanese public wants the government to intervene at Fukushima. Tepco’s management of the stricken power plant has been described as a comedy of errors. The constant stream of mistakes has been made worse by constant false denials and efforts to minimize major problems. Indeed the entire Fukushima catastrophe could have been avoided: "Tepco at first blamed the accident on ‘an unforeseen massive tsunami’ triggered by the Great East Japan Earthquake on March 11, 2011. Then it admitted it had in fact foreseen just such a scenario but hadn’t done anything about it."
  • The reality is Fukushima was plagued by human error from the outset.  An official Japanese government investigation concluded that the Fukushima accident was a "man-made" disaster, caused by "collusion" between government and Tepco and bad reactor design. On this point, TEPCO is not alone, this is an industry-wide problem. Many US nuclear plants have serious problems, are being operated beyond their life span, have the same design problems and are near earthquake faults. Regulatory officials in both the US and Japan are too corruptly tied to the industry. Then, the meltdown itself was denied for months, with TEPCO claiming it had not been confirmed.  Japan Times reports that "in December 2011, the government announced that the plant had reached ‘a state of cold shutdown.’ Normally, that means radiation releases are under control and the temperature of its nuclear fuel is consistently below boiling point."  Unfortunately, the statement was false – the reactors continue to need water to keep them cool, the fuel rods need to be kept cool – there has been no cold shutdown.
  • TEPCO has done a terrible job of cleaning up the plant.  Japan Times describes some of the problems: "The plant is being run on makeshift equipment and breakdowns are endemic. Among nearly a dozen serious problems since April this year there have been successive power outages, leaks of highly radioactive water from underground water pools — and a rat that chewed enough wires to short-circuit a switchboard, causing a power outage that interrupted cooling for nearly 30 hours. Later, the cooling system for a fuel-storage pool had to be switched off for safety checks when two dead rats were found in a transformer box."  TEPCO has been constantly cutting financial corners and not spending enough to solve the challenges of the Fukushima disaster resulting in shoddy practices that cause environmental damage. Washington’s Blog reports that the Japanese government is spreading radioactivity throughout Japan – and other countries – by burning radioactive waste in incinerators not built to handle such toxic substances. Workers have expressed concerns and even apologized for following order regarding the ‘clean-up.’
  • Indeed, the workers are another serious concern. The Guardian reported in October 2013 the plummeting morale of workers, problems of alcohol abuse, anxiety, loneliness, Post-Traumatic Stress Disorder and depression. TEPCO cut the pay of its workers by 20 percent in 2011 to save money even though these workers are doing very difficult work and face constant problems. Outside of work, many were traumatized by being forced to evacuate their homes after the Tsunami; and they have no idea how exposed to radiation they have been and what health consequences they will suffer. Contractors are hired based on the lowest bid, resulting in low wages for workers. According to the Guardian, Japan's top nuclear regulator, Shunichi Tanaka, told reporters: "Mistakes are often linked to morale. People usually don't make silly, careless mistakes when they're motivated and working in a positive environment. The lack of it, I think, may be related to the recent problems." The history of TEPCO shows we cannot trust this company and its mistreated workforce to handle the complex challenges faced at Fukushima. The crisis at Fukushima is a global one, requiring a global solution.
  • In an open letter to the United Nations, 16 top nuclear experts urged the government of Japan to transfer responsibility for the Fukushima reactor site to a worldwide engineering group overseen by a civil society panel and an international group of nuclear experts independent from TEPCO and the International Atomic Energy Administration , IAEA. They urge that the stabilization, clean-up and de-commissioning of the plant be well-funded. They make this request with "urgency" because the situation at the Fukushima plant is "progressively deteriorating, not stabilizing." 
  • The problems at Fukushima are in large part about facing reality – seeing the challenges, risks and potential harms from the incident. It is about TEPCO and Japan facing the reality that they are not equipped to handle the challenges of Fukushima and need the world to join the effort. 
  • Paul Merrell on 26 Oct 13
     
    Excellent roundup of evidence that the Fukushima disaster recovery process has gone badly awry and is devolving quickly to looming further disasters. Political momentum is gathering to wrest the recovery efforts away from the Japanese government and to place its leadership in the hands of an international group of experts. The disaster was far worse than its portrayal in mainstream media, is continuing, and even worse secondary disasters now loom. 
Gary Edwards

The Real Reason for the Iraq War | VICE United Kingdom - 1 views

www.vice.com/...asnt-waged-for-oil-greg-palast

Oil Iraq neocons Saudi Banksters Oilsters

shared by Gary Edwards on 29 Mar 13 - No Cached
  • Like most lefty journalists, I assumed that George Bush and Tony Blair invaded Iraq to buy up its oil fields, cheap and at gun-point, and cart off the oil. We thought we knew the neo-cons true casus belli: Blood for oil. But the truth in the Options for Iraqi Oil Industry was worse than "Blood for Oil". Much, much worse.
  • Within days, our chief of investigations, Ms Badpenny, delivered to my shack in the woods outside New York a 323-page, three-volume programme for Iraq's oil crafted by George Bush's State Department and petroleum insiders meeting secretly in Houston, Texas. I cracked open the pile of paper – and I was blown away.
  • I'd already had in my hands a 101-page document, another State Department secret scheme, first uncovered by Wall Street Journal reporter Neil King, that called for the privatisation, the complete sell-off of every single government-owned asset and industry. And in case anyone missed the point, the sales would include every derrick, pipe and barrel of oil, or, as the document put it, "especially the oil". That plan was created by a gaggle of corporate lobbyists and neo-cons working for the Heritage Foundation. In 2004, the plan's authenticity was confirmed by Washington power player Grover Norquist. (It's hard to erase the ill memory of Grover excitedly waving around his soft little hands as he boasted about turning Iraq into a free-market Disneyland, recreating Chile in Mesopotamia, complete with the Pinochet-style dictatorship necessary to lock up the assets – while behind Norquist, Richard Nixon snarled at me from a gargantuan portrait.) The neo-con idea was to break up and sell off Iraq's oil fields, ramp up production, flood the world oil market – and thereby smash OPEC and with it, the political dominance of Saudi Arabia.
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  • General Jay Garner also confirmed the plan to grab the oil. Indeed, Secretary of Defense Donald Rumsfeld fired Garner, when the General, who had lived in Iraq, complained the neo-con grab would set off a civil war. It did. Nevertheless, Rumsfeld replaced Garner with a new American viceroy, Paul Bremer, a partner in Henry Kissinger's firm, to complete the corporate takeover of Iraq's assets – "especially the oil".
  • But that was not to be. While Bremer oversaw the wall-to-wall transfer of Iraqi industries to foreign corporations, he was stopped cold at the edge of the oil fields. How? I knew there was only one man who could swat away the entire neo-con army: James Baker, former Secretary of State, Bush family consiglieri and most important, counsel to Exxon-Mobil Corporation and the House of Saud.
  • There was no way in hell that Baker's clients, from Exxon to Abdullah, were going to let a gaggle of neo-con freaks smash up Iraq's oil industry, break OPEC production quotas, flood the market with six million bbd of Iraqi oil and thereby knock the price of oil back down to $13 a barrel where it was in 1998.
  • Big Oil could not allow Iraq's oil fields to be privatised and taken from state control. That would make it impossible to keep Iraq within OPEC (an avowed goal of the neo-cons) as the state could no longer limit production in accordance with the cartel's quota system. The US oil industry was using its full political mojo to prevent their being handed ownership of Iraq's oil fields. That's right: The oil companies didn't want to own the oil fields – and they sure as hell didn't want the oil. Just the opposite. They wanted to make sure there would be a limit on the amount of oil that would come out of Iraq. Saddam wasn't trying to stop the flow of oil – he was trying to sell more. The price of oil had been boosted 300 percent by sanctions and an embargo cutting Iraq's sales to two million barrels a day from four. With Saddam gone, the only way to keep the damn oil in the ground was to leave it locked up inside the busted state oil company which would remain under OPEC (i.e. Saudi) quotas. The James Baker Institute quickly and secretly started in on drafting the 323-page plan for the State Department. With authority granted from the top (i.e. Dick Cheney), ex-Shell Oil USA CEO Phil Carroll was rushed to Baghdad in May 2003 to take charge of Iraq's oil. He told Bremer, "There will be no privatisation of oil – END OF STATEMENT." Carroll then passed off control of Iraq's oil to Bob McKee of Halliburton, Cheney's old oil-services company, who implemented the Baker "enhance OPEC" option anchored in state ownership.
  • This week, VICE readers can download, for free, Greg Palast's investigation of the war in Iraq in the BBC film, Bush Family Fortunes, at www.GregPalast.com – as well as the illustrated poster of "The Secret History of War over Oil in Iraq" from Palast's international bestseller, Armed Madhouse, also at www.GregPalast.com
  • Some oil could be released, mainly to China, through limited, but lucrative, "production sharing agreements". And that's how George Bush won the war in Iraq. The invasion was not about "blood for oil", but something far more sinister: blood for no oil. War to keep supply tight and send prices skyward. Oil men, whether James Baker or George Bush or Dick Cheney, are not in the business of producing oil. They are in the business of producing profits. And they've succeeded. Iraq, capable of producing six to 12 million barrels of oil a day, still exports well under its old OPEC quota of three million barrels. The result: As we mark the tenth anniversary of the invasion this month, we also mark the fifth year of crude at $100 a barrel. As George Bush could proudly say to James Baker: Mission Accomplished!
  • Paul Merrell on 29 Mar 13
     
    The Sherman Act forbids conspiracies in restraint of trade and is at its zenith in price-fixing cases. This looks to be the mother of all price-fixing cases, to say the least.   
  • Gary Edwards on 30 Mar 13
     
    Wow, Marbux has it right.  This report from the legendary Greg Palast of the BBC News Network is a stunning reversal of what everyone believed to be the truth.  To wit, the militarist and global strategist - resource control hungry neocon contingent of the Repubican party was always thought to be behind the Iraqi war.  For control of cheap, plentiful oil and, the protection / destruction of Israel's enemies.   Funny, but it turns out America was fighting for higher oil prices and limited supplies.  Just as in the first Gulf War, Americans were fighting to protect Saudi and big oil profits. excerpt: Big Oil could not allow Iraq's oil fields to be privatised and taken from state control. That would make it impossible to keep Iraq within OPEC (an avowed goal of the neo-cons) as the state could no longer limit production in accordance with the cartel's quota system. The US oil industry was using its full political mojo to prevent their being handed ownership of Iraq's oil fields. That's right: The oil companies didn't want to own the oil fields - and they sure as hell didn't want the oil. Just the opposite. They wanted to make sure there would be a limit on the amount of oil that would come out of Iraq. Saddam wasn't trying to stop the flow of oil - he was trying to sell more. The price of oil had been boosted 300 percent by sanctions and an embargo cutting Iraq's sales to two million barrels a day from four. With Saddam gone, the only way to keep the damn oil in the ground was to leave it locked up inside the busted state oil company which would remain under OPEC (i.e. Saudi) quotas. The James Baker Institute quickly and secretly started in on drafting the 323-page plan for the State Department. With authority granted from the top (i.e. Dick Cheney), ex-Shell Oil USA CEO Phil Carroll was rushed to Baghdad in May 2003 to take charge of Iraq's oil. He told Bremer, "There will be no privatisation of oil - END OF STATEMENT." Carroll then passed off control
Gary Edwards

Operation Sleeping Giant: "Breaking The Silver Manipulation Barrier" by Brandon Smith - 0 views

operationsleepinggiant.com

Brandon-Smith GOLD Sir-Charles SiLVER Currency-basket Priced-in-Gold

shared by Gary Edwards on 11 Jan 13 - No Cached
  • Gary Edwards on 11 Jan 13
     
    Written in August of 2011, this article continues to be an important guideline to understanding Gold and Silver prices, and the efforts of Banksters to manipulate these competing forms of monetary exchange to the US Dollar.  Good stuff.  And i did write Brandon a proposal for a mobile application connecting PayPal to the Storage Vault Depositories he sites in this article (based on the GOLD app design i provided to Tino in 2008). excerpt: China Competes With The Comex As of this summer China now has its own Comex, called the Hong Kong Mercantile Exchange. The exchange opened for trade on May 18th (the CME's incredible margin hikes in silver began only weeks before, which suggests to me that they were trying to preempt the positive effects the HKMEX would have on metals). The HKMEX moved into action only five months after the Chinese Pan American Gold Exchange was instituted. The exchange issues its own ETF's in gold and silver. These securities, though, are not based on leverage or derivatives like most Comex based ETFs. The bottom line; the Comex global monopoly on commodities trade is over: How To Break The Barrier Methods for smaller investors to fight back against the market manipulations of large banks have been sparse, and often limited to desperate appeals to the CFTC and the government, who are bought and paid for, and who have no intention of ever stopping global financiers from dragging their unwashed behinds across the face of the planet. Relying on bureaucrats to mend the wounds they themselves encouraged or inflicted is foolhardy, to say the least. Top down solutions are NOT an option now, and I'm not sure if they ever were. This leaves us with only one other choice; to fix the problem with our own hands from the bottom up. This is, of course, easier said than done… In the case of silver manipulation, what we are faced with is an unprecedented effort to subvert and suppress an alternative system so that the mainstream system can continue to
Paul Merrell

Bernie Sanders Introduces a Bill to Break Up the Big Banks | The Nation - 0 views

www.thenation.com/...rss-bill-would-break-big-banks

Auction 2016 Sanders banksters bank-breakups O'Malley Hillary

shared by Paul Merrell on 08 May 15 - No Cached
  • Senator Bernie Sanders announced legislation Wednesday that would break up the country’s largest financial institutions. It’s the third time he’s introduced such a measure, but this time around he wields the large microphone of a presidential candidate. The bill, titled the “Too Big to Fail, Too Big to Exist Act,” will also be introduced in the House by Representatives Brad Sherman and Alan Grayson. If passed, it would require regulators at the Financial Stability Oversight Council to come up with a list of too-big-to-fail institutions whose failure would threaten the economy. One year later, those banks would be broken up by the secretary of the Treasury. Sure to be included on that list, based on the standards outlined in the legislation, would be JPMorgan Chase, Citigroup, Goldman Sachs, Bank of America, and Morgan Stanley.
  • It also unavoidably poses a test for Hillary Clinton, the other declared Democratic candidate. Much of the Draft Warren movement launched by progressive activists focused on the Massachusetts senator’s advocacy for combating the financial sector’s power generally, and breaking up the big banks in particular—and Clinton’s perceived weakness on that front.
  • Another likely Democratic candidate, former Maryland governor Martin O’Malley, wrote an op-ed in The Des Moines Register in March that also called for the biggest financial institutions to be broken up. Elsewhere, Senators Sherrod Brown and David Vitter have introduced similar legislation in the past, and the Federal Deposit Insurance Corporation’s Tom Hoenig also favors break-ups. Sanders and Sherman cited the danger posed to the economy by big banks, many of which are dramatically larger than they were before the 2008 financial crisis. JPMorgan Chase, for example, has increased its assets by $1.1 trillion since 2007. “In 2008 we learned that if Wall Street calls and says ‘bail us out or we’re going to take the economy down with us,’ that even if there is no statutory provision for bailouts, which there really isn’t today, Congress will pass as we did in 2008 a bill mandating the bailout,” said Sherman. “So ‘too big to fail’ means you will be bailed. That isn’t capitalism. That is socialism for the wealthy.”
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  • Sanders noted the large fines and settlement paid by big financial institutions since 2009, totaling $176 billion, and referenced former attorney general Eric Holder’s frank admission in 2013 that some banks are “too big to jail.” (Holder later walked back that comment, though no high-level executives have gone to prison for anything related to the financial crisis.)
  • The duo also described their belief that big Wall Street banks are crushing smaller and medium-sized banks. Sherman cited research from the International Monetary Fund that when big banks have implicit taxpayer backing, their access to capital is so much easier that it amounts to an extra $83 billion annually—something he argued was an unfair advantage over smaller banks that would be allowed to fail. The Independent Community Bankers of America, which represents 6,000 smaller banks, has endorsed the Sanders-Sherman legislation. Beyond just small banks, Sanders argued that enormous financial institutions harm the broader economy because those smaller banks are key sources of capital for small businesses. “Wall Street cannot be an island unto itself separate from the productive economy,” he said.
  • Paul Merrell on 08 May 15
     
    Sanders pushing Hillary to commit to doing something about the banks. Fat chance. But maybe he can show who she really is.
Paul Merrell

To beat ISIS, kick out US-led coalition | nsnbc international - 0 views

nsnbc.me/...isis-kick-out-us-led-coalition

war & peace U.S.-foreign-policy Syria Iraq Iran Russia Lebanon ISIL sandbagging

shared by Paul Merrell on 28 May 15 - No Cached
  • It’s been a bad time for foes of ISIS. Islamic State scored a neat hat-trick by invading strategic Ramadi in Iraq’s mainly Sunni Anbar province, occupying Syria’s historic gem Palmyra, and taking over Al-Tanf, the last remaining border crossing with Iraq. The multinational, American-led ‘Coalition’ launched last August to thwart Islamic State’s (IS, formerly ISIS) march across Syria and Iraq…did nothing.
  • The Iraqis have shot back. Key MP Hakim al-Zamili blames Ramadi’s collapse on the US’s failure to provide “good equipment, weapons and aerial support” to troops. Deputy Prime Minister Saleh Mutlaq, himself a Sunni from Anbar Province, concluded that the Americans were coming up short in all areas. “The Coalition airstrikes are not enough to eliminate IS.” Furthermore, the US policy of recruiting Sunni tribes for the fight, he added, was “too late” – it is “important but not enough.” If ever there was an understatement, this is it. Washington’s long-stated objective of rallying together a vetted Sunni fighting force – or its equivalent in the form of a National Guard – has always served as a placeholder to avoid facing realities.
  • One thing we have learned from IS gains in small and large Sunni towns alike, is that the extremist group prides itself on sleeper cells and alliances inside of these areas. Sunni tribes and families, both, are divided on their support of IS. And the militants ensure that everyone else falls in line through a brutal campaign of inflicting fear and pain indiscriminately. So the likelihood of a significant, anti-IS, well-trained and equipped Sunni fighting force emerging anytime soon is just about nil. So too is the idea of a US-led Coalition air force that can cripple Islamic State. Washington has run fewer sorties over Syria and Iraq in the nine months since inception of its air campaign, than Israel ran in its entire three-week Gaza blitz in 2008-09. Where were the American bombers when Ramadi and Palmyra were being taken? And why does the US Air Force only seem to engage in earnest when their Kurdish allies are being threatened – as in Kobani (Ain al-Arab), Syria, and Erbil in Iraq?
  • ...12 more annotations...
  • If actions speak louder than words, then Washington’s moves in the Mideast have been deafening. Forget talk of a ‘unified Iraq’ with a ‘strong central government’. And definitely forget loudly-proclaimed objectives of ‘training moderate forces’ to ‘fight off IS’ across the Jordanian and Turkish borders in Syria. That’s just talk. An objective look at US interests in the region paint an entirely different picture. The Americans seek to maintain absolute hegemony in the Mideast, even as they exit costly military occupations of Iraq and Afghanistan. Their primary interests are 1) access to low cost oil and gas, 2) propping up Israel, and more recently, 3) undermining Russian (and Chinese) influence in the region. Clinging on to hegemony would be a whole lot easier without the presence of a powerful, independent Islamic Republic of Iran, which continues to throw a wrench in many of Washington’s regional projects. So hegemony is somewhat dependent on weakening Iran – and its supportive alliances.
  • But why ignore Sunni groups who are unreservedly opposed to IS? Aren’t they America’s natural constituents inside Iraq? The Takfiri extremist groups serve a purpose for Washington. IS has had the ability – where competing Sunni factions, with their ever-growing lists of demands from Baghdad, have not – to transform the US’ ‘buffer’ project into a physical reality. And Washington has not needed to expend blood, treasure or manpower to get the job done.
  • You only have to look at recent US actions in Iraq to see this unspoken plan in action. Washington’s most intensive airstrikes to date were when Kurdish Erbil and its environs came under threat by ISIS.Washington’s most intensive airstrikes to date were when Kurdish Erbil and its environs came under threat by ISIS. Congress has breached all international norms by ushering through legislation to directly arm Sunni and Kurdish militias and bypass the central government in Baghdad. And despite endless promises and commitments, the Americans have failed at every hurdle to train and equip the Iraqi Army and security forces to do anything useful. A weak, divided Iraq can never become a regional powerhouse allied with Iran and the Resistance Axis. Likewise a weak, divided Syria. But without US control over these central governments, the only way to achieve this is 1) through the creation of sectarian and ethnic strife that could carve out pro-US buffers inside the ‘Resistance states’ and/or 2) through the creation of a hostile ‘Sunni buffer’ to break this line from Iran to Palestine.
  • General Walid Sukariyya, a Sunni, pro-resistance member of Lebanon’s parliament, agrees. “ISIS will be better for the US and Israel than having a strong Iran, Iraq and Syria…If they succeed at this, the Sunni state in Iraq will split the resistance from Palestine.” While Washington has long sought to create a buffer in Iraq on the Syrian border, it has literally spent years trying – and failing – to find, then mold, representative Sunni Iraqi leaders who will comfortably toe a pro-American line. An example of this is the Anbar delegation US General John Allen handpicked last December for a DC tour, which excluded representatives of the two most prominent Sunni tribes fighting IS in Iraq – the Albu Alwan and Albu Nimr. A spokesman for the tribes, speaking to Al-Jarida newspaper, objected at the time: “We are fighting ISIL and getting slaughtered, while suffering from a shortage of weapons. In the meantime, others are going to Washington to get funds and will later be assigned as our leaders.”
  • With the removal of Saddam Hussein in Iraq, the US inadvertently extended Iran’s arc of influence in a direct geographic line to Palestine, leaving the Israeli colonial project vulnerable. Former President George W. Bush immediately took on the task of destroying this Resistance Axis by attempting to neuter Iranian allies Hezbollah, Syria and Hamas – and failed. The Arab Spring presented a fresh opportunity to regroup: the US and its Turkish and Persian Gulf allies swung into action to create conditions for regime-change in Syria. The goal? To break this geographic line from Iran – through Iraq, Syria and Lebanon – to Palestine. When regime-change failed, the goalpost moved to the next best plan: dividing Syria into several competing chunks, which would weaken the central state and create a pro-US ‘buffer’ along the border with Israel. Weakening the central government in Iraq by dividing the state along Kurdish, Sunni and Shiite lines has also been a priority for the Americans.
  • The DIA brief makes clear that the escalation of conflict in Syria will create further sectarianism and radicalization, which will increase the likelihood of an ‘Islamic State’ on the Syrian-Iraqi border, one that would likely be manned by the Islamic State of Iraq (ISI). So what did Washington do when it received this information? It lied. Less than one month after the DIA report was published, US Secretary of State John Kerry told the Senate Foreign Relations Committee this about the Syrian opposition: “I just don’t agree that a majority are Al-Qaeda and the bad guys. That’s not true. There are about 70,000 to 100,000 oppositionists … Maybe 15 percent to 25 percent might be in one group or another who are what we would deem to be bad guys…There is a real moderate opposition that exists.” Using the fabricated storyline of ‘moderate rebels’ who need assistance to fight a ‘criminal Syrian regime’, the US government kept the Syrian conflict buzzing, knowing full well the outcome would mean the establishment of a Sunni extremist entity spanning the Syrian-Iraqi border…which could cripple, what the Americans call, “the strategic depth of the Shia expansion.”As US Council on Foreign Relations member and terrorism analyst Max Abrahms conceded on Twitter: “The August 5, 2012 DIA report confirms much of what Assad has been saying all along about his opponents both inside & outside Syria.”
  • Since last year, numerous Iraqi officials have complained about the US airdropping weapons to IS – whether deliberately or inadvertently remains disputed. Military sources, on the other hand, have made clear that the US-led Coalition ignores many of the Iraqi requests for air cover during ground operations. If the US isn’t willing to play ball in Iraq’s existential fight against IS, then why bother with the Americans at all? Iraqi Prime Minister Haider al-Abadi is viewed as a ‘weak’ head of state – a relatively pro-American official who will work diligently to keep a balance between US interests and those of Iraq’s powerful neighbor, Iran. But after the disastrous fall of Ramadi, and more bad news from inside Syria, Abadi has little choice but to mitigate these losses, and rapidly. The prime minister has now ordered the engagement of thousands of Hashd al-Shaabi (Shiite paramilitary groups, commonly known as the Popular Mobilization Forces) troops in the Anbar to wrest back control of Ramadi. And this – unusually – comes with the blessings of Anbar’s Sunni tribes who voted overwhelmingly to appeal to the Hashd for military assistance.
  • Joining the Hashd are a few thousand Sunni fighters, making this a politically palatable response. If the Ramadi operation goes well, this joint Sunni-Shiite effort (which also proved successful in Tikrit) could provide Iraq with a model to emulate far and wide. The recent losses in Syria and Iraq have galvanized IS’ opponents from Lebanon to Iran to Russia, with commitments pouring in for weapons, manpower and funds. If Ramadi is recovered, this grouping is unlikely to halt its march, and will make a push to the Syrian border through IS-heavy territory. There is good reason for this: the militants who took Ramadi came across the Syrian border – in full sight of US reconnaissance capabilities. A senior resistance state official told me earlier this year: “We will not allow the establishment of a big (extremist) demographic and geographic area between Syria and Iraq. We will work to push Syrian ISIS inside Syria and Iraqi ISIS inside Iraq.”
  • Right now, the key to pushing back Takfiri gains inside Syria’s eastern and northwestern theaters lies in the strengthening of the Iraqi military landscape. And an absolute priority will be in clearing the IS ‘buffer’ between the two states. Eighteen months ago, in an analysis about how to fight jihadist militants from the Levant to the Persian Gulf, I wrote that the solution for this battle will be found only within the region, specifically from within those states whose security is most compromised or under threat: Lebanon, Syria, Iraq and Iran. I argued that these four states would be forced to increase their military cooperation as the battles intensified, and that they would provide the only ‘boots on the ground’ in this fight. And they will. But air cover is a necessary component of successful offensive operations, even in situations of unconventional warfare. If the US and its flimsy Coalition are unable or unwilling to provide the required reconnaissance assistance and the desired aerial coverage, as guided by a central Iraqi military command, then Iraq should look elsewhere for help.
  • Iran and Russia come to mind – and we may yet get there. Iraq and Syria need to merge their military strategies more effectively – again, an area where the Iranians and Russians can provide valuable expertise. Both states have hit a dangerous wall in the past few weeks, and the motivation for immediate and decisive action is high today. Lebanese resistance group Hezbollah is coming into play increasingly as well – its Secretary-General Hassan Nasrallah has recently promised that Hezbollah will no longer limit itself geographically, and will go where necessary to thwart this Takfiri enemy. The non-state actors that make up the jihadist and Takfiri core cannot be beaten by conventional armies, which is why local militias accustomed to asymmetric warfare are best suited for these battles. Criticizing the US’s utterly nonexistent response to the Ramadi debacle yesterday, Iran’s elite Quds Force Commander Qassem Suleimani points out: “Today, there is nobody in confrontation with [IS] except the Islamic Republic of Iran, as well as nations who are next to Iran or supported by Iran.” The Iranians have become central figures in the fight against terror, and are right next door to it – as opposed to Washington, over 6,000 miles away.
  • If the US has any real commitment to the War on Terror, it should focus on non-combat priorities that are also essential to undermine extremism: 1) securing the Turkish and Jordanian borders to prevent any further infiltration of jihadists into Syria and Iraq, 2) sanctioning countries and individuals who fund and weaponize the Takfiris, most of whom are staunch US allies, now ironically part of the ‘Coalition’ to fight IS, and 3) sharing critical intelligence about jihadist movements with those countries engaged in the battle. It is time to cut these losses and bring some heavyweights into this battle against extremism. If the US-directed Coalition will not deliver airstrikes under the explicit command of sovereign states engaged at great risk in this fight, it may be time to clear Iraqi and Syrian airspace of coalition jets, and fill those skies with committed partners instead.
  • Related documentation: DIA Doc Syria and Iraq:_ Pg.-291-Pgs.-287-293-JW-v-DOD-and-State-14-812-DOD-Release-2015-04-10-final-version11.
  • Paul Merrell on 28 May 15
     
    Woh! Things definitely coming to an inflexion point in Syria and Iraq. This is a reprint from RT.com, the Russian video and web page news service. The hint of direct and overt military action by Russia and Iran should not be ignored. The U.S. is sandbagging for ISIL and al Nusiryah. 
Gary Edwards

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

www.blacklistednews.com/...M.html

NSA-Patriot-Act-NDAA NSA-Whistleblower Edward-Snowden Tyranny-by-Executive-Order spying

shared by Gary Edwards on 20 Aug 13 - No Cached
  • Gary Edwards on 20 Aug 13
     
    "New Revelations Are Breaking Every Day" This web page is very well sourced and filled with links where you will get lost for hours. Excellent reference document ............................ Revelations about the breathtaking scope of government spying are coming so fast that it's time for an updated roundup: - Just weeks after NSA boss Alexander said that a review of NSA spying found not even one violation, the Washington Post published an internal NSA audit showing that the agency has broken its own rules thousands of times each year - 2 Senators on the intelligence committee said the violations revealed in the Post article were just the "tip of the iceberg" - Glenn Greenwald notes:  "One key to the WashPost story: the reports are internal, NSA audits, which means high likelihood of both under-counting & white-washing".(Even so, the White House tried to do damage control by retroactively changing on-the-record quotes) - The government is spying on essentially everything we do. It is not just "metadata" … although that is enough to destroy your privacy - The government has adopted a secret interpretation of the Patriot Act which allows it to pretend that "everything" is relevant … so it spies on everyone - NSA whistleblowers say that the NSA collects all of our conversations word-for-word - It's not just the NSA … Many other agencies, like the FBI and IRS - concerned only with domesticissues - spy on Americans as well - The information gained through spying is shared with federal, state and local agencies, and they are using that information to prosecute petty crimes such as drugs and taxes.  The agencies are instructed to intentionally "launder" the information gained through spying, i.e. to pretend that they got the information in a more legitimate way … and to hide that from defense attorneys and judges - Top counter-terror experts say that the government's mass spying doesn't keep us
Gary Edwards

The Daily Bell - Doug Casey on the Continuing Debasement of Money, Language and Banking... - 0 views

www.thedailybell.com/...-and-Banking-in-the-Modern-Age

Banksters

shared by Gary Edwards on 09 Jul 15 - No Cached
  • This isn't going to last because the way you get wealthy is by producing more than you consume and saving the difference – not by consuming more than you produce, and borrowing the difference. With the Fed keeping interest rates at artificially low levels, hoping to increase consumption, they're making it very foolish to save – when you get ½% or 1% on your savings. So people are saving less and they're borrowing more than they otherwise would. This is a formula for making things worse, not better.
  • They are, idiotically, doing exactly the opposite of what they should be.
  • In point of fact, the Fed should be abolished; the market, not bureaucrats, should determine interest rates. We wouldn't be in this pickle to start with if the government wasn't involved in the economy.
  • ...35 more annotations...
  • The Chinese, the Japanese – everybody is selling, trying to pass the Old Maid card of US Government debt, which represents return–free risk. Nobody other than the Fed is buying, and interest rates would skyrocket if they stopped. The more QE there is, the more distortions it will cause, however, making for a bigger disaster the longer it goes on.
  • Will the Fed continue to inflate the money supply? Doug Casey: They have to, because with the huge amount of debt in the world – and the amount of debt in the world has increased something like 40 or 50% just since the Greater Depression started – if they don't keep increasing the amount of money in the world then nobody's going to be able to service the huge amount of debt that is out there. So I don't see anything changing in the years to come. They've truly painted themselves into a corner. They're caught between Scylla and Charybdis, and we don't have Odysseus steering the ship of state.
  • Let me say, again, that the Fed serves no useful purpose and it should be abolished. Central banks create "super money" by buying government or other debt with new currency units that they credit to the sellers' accounts at commercial banks. That's the actual engine of inflation.
  • But it's greatly compounded in the commercial banking system through fractional reserve lending – which would not be possible without a central bank. Fractional reserve lending allows banks to multiply the money supply several times.
  • If $100 of Fed super money, freshly created, is deposited in a commercial bank like Chase or Citibank, then $90 can be lent out with a 10% reserve, the current number. That money is redeposited. They'll then lend out 90% of that $90, or $81, and then 90% of that $81, so it multiplies.
  • Central banking and fractional reserve lending go hand-in-hand.
  • Without a central bank, any bank that engaged in fractional reserve banking would be considered guilty of fraud and, when discovered, would be punished by a bank run, followed by criminal charges. The point to be made here is that the entire banking system today is totally unsound and totally corrupt.
  • In a sound banking system you have two types of deposits – checking account (or demand) deposits, and savings account (or time) deposits. They are completely different businesses. With demand deposits, you pay the bank to store your money securely, and write checks against it. A bank should no more lend out demand deposit money than Allied Storage should lend out the furniture you're paying them to store.
  • Savings accounts are completely different. Here you lend money to a bank, perhaps at 3%, and they relend it at 6%, making 3% to cover costs, risks and profits. A sound bank not only has to match the maturities of its deposits with the maturities of its loans, but must insure loans are both highly secured and self-liquidating.
  • These principles have been totally lost. Today banks operate as hedge funds.
  • As an aside, if someone were to set up a well-capitalized 100% reserve bank in a tax haven, especially using gold as an alternative currency, it would be immensely successful in the years to come – when most all conventional banks will fail.
  • By all historical, normal parameters, the stock market is greatly overvalued.
  • The trillions of new currency units that the Fed is creating are creating bubbles, and one of them is in the stock market. The biggest bubble, of course, is in the bond market – that's a super bubble.
  • Not only does the dollar have no real value but the banks you keep it in are all insolvent.
  • There are few sound investments out there. Today there are no investments; there are only speculations.
  • From the economist's point of view, the bubbles created by central banking are a disaster, but from a speculator's point of view they're a godsend. It's becoming harder and harder to be an investor; I define an investor as someone who allocates capital to productive business. It's hard to be an investor because you now have to spend more money on lawyers than on engineers and workers if you want to produce something. You're increasingly forced to be a speculator in today's climate.
  • Stock and bond markets all over the world are overpriced – with the exception of Russian stocks right now; they could be a very interesting speculation. I wouldn't touch anything in China yet, because all the Chinese banks are going to go bust.
  • The Chinese have been more profligate inflating the yuan than the Americans have been with the dollar. It's fantastic what the Chinese have done since Deng liberalized the economy in the early '80s, but now's not a time to be in their markets.
  • You've got to remember there are two types of people in the world: people who want to control material reality and people who want to control other people.
  • It's that second type who go into politics. They play games – here it's called the Great Game, which dignifies it in a way it shouldn't be – with other people's lives and property. It's been this way ever since the state was created about 5,000 years ago, and I don't think you should play games with other people's lives.
  • On the bright side, there are more scientists and engineers alive today than in all of human history put together, and so technology is advancing more rapidly than ever for that reason. That's a huge plus.
  • The second good thing is that the average person, at least those who aren't on welfare, tries to produce more than he consumes. That creates capital.
  • But I'm afraid that Western civilization reached its peak before World War I. World War I destroyed a huge amount of capital and, more importantly, it changed the moral bases of so many things.
  • Then World War II institutionalized the State as the most important part of society – which is perverse, because the state is actually the enemy of civil society.
  • I think Western civilization reached its peak in 1913, when it reached its maximum geographical extent. That was coincidental with the peak of its technological and philosophical influence on the world, much the way the Roman Empire reached its peak at about the end of the first century, then went down, slowly at first and then quickly. That's what's happening to the West.
  • Relative to the rest of the world, and contribution to world production, our piece of the economic pie is getting smaller and smaller. If we have another serious war it would be absolutely smaller, and the final nail in the coffin. Meanwhile, the US, with its bloated military, is just itching for another war. It's out of control, and unlikely to change at this point. That's a big trend that is in motion that I think is going to stay in motion.
  • Europe is in particularly bad shape. The place is a fascist/socialist disaster.
  • It was possible for the average European to keep his head above water through tax evasion in the past, but now those governments have broken bank secrecy everywhere, and it will destroy a lot of capital.
  • The "nation-state" is a really stupid and dysfunctional idea, and I'm glad it's on its way out.
  • That said, even the US, which from a cultural point of view is as much of a country as any place in the world, should actually break up into at least five or six regions.
  • Canada should break up into at least five or six regions initially.
  • I don't think politically; politics is the problem, not the solution. I think that the ideal solution is for every individual to opt out of the current system. When they give a war, you don't come. When they give a tax, you don't pay. When they give an election, you don't vote. You even try not to use their currency and their banking system. T
  • he ideal thing is to let the system collapse under its own weight as opposed to starting a new political party and then continuing to act politically, which is to say to use force on other people.
  • Market risk is huge today, but political risk is even bigger. One indication of that was, when the banks in Cyprus went bust some months ago, the government essentially confiscated everybody's account above 100,000 euros, in what they called a "bail-in."
  • You need several options. It seems like people haven't learned anything from what happened in Russia in 1917, Germany in 1933, China in 1948, Cuba in 1959, or Vietnam in 1975. Rwanda, Cambodia, Yugoslavia, Zimbabwe, Ukraine, Syria ... there are lots of examples and these things can and will eventually happen almost everywhere. When the chimpanzees go crazy, you don't want to be where they are. You've got to have a Plan B. You've got to have a crib out of that political jurisdiction. Acting like a plant, and staying put, isn't a good survival strategy for a human.
  • Gary Edwards on 09 Jul 15
     
    "Doug Casey: I don't see a real recovery until they stop debasing the currency, radically cut government spending and taxation and eliminate most regulation. In other words, cease doing the things that caused this depression. And that's not going to happen until there's a collapse of the current order. Things have cyclically improved since the height of the crisis of 2008-09. The trillions of currency units created by the Federal Reserve have jammed the stock market higher and kept the big banks from going under. What surprises me is that retail prices have not moved as significantly as I would have expected. The reason, I believe, is that most of that money is still sitting in financial institutions. It has gone into cash out of fear, into stocks because they represent real wealth with earning power and into various speculative assets like artwork and collectible cars. Real estate has recovered somewhat, not because of strong fundamentals but strictly because of money creation. This isn't going to last because the way you get wealthy is by producing more than you consume and saving the difference - not by consuming more than you produce, and borrowing the difference. With the Fed keeping interest rates at artificially low levels, hoping to increase consumption, they're making it very foolish to save - when you get ½% or 1% on your savings. So people are saving less and they're borrowing more than they otherwise would. This is a formula for making things worse, not better. They are, idiotically, doing exactly the opposite of what they should be. Although, I hasten to add, I hate to pontificate on what the Fed "should" do. In point of fact, the Fed should be abolished; the market, not bureaucrats, should determine interest rates. We wouldn't be in this pickle to start with if the government wasn't involved in the economy. In fact, if it wasn't for the state, I suspect we'd all have a vastly higher standard of living, and would be colonizing the Moon, Mars and
Gary Edwards

"War is a Racket" by General Smedly Butler - 1 views

www.lexrex.com/...warisaracket.htm

Smedly-Butler

shared by Gary Edwards on 16 Sep 13 - Cached
  • by MAJOR GENERAL SMEDLEY D. BUTLER, USMC - Retired TWO-TIME Congressional Medal of Honor Recipient FULL TEXT ON LINE FREE
  • GET THE NEW PAPERBACK EDITION including two bonus titles.
  • Paul Merrell on 16 Sep 13
     
    An accidental find, the full text online of USMC Maj. Gen. Smedley Butler's 1935 book, War Is a Racket. Butler served in the Marine Corps from 1899 to 1931 and at the time of his retirement was the most-decorated Marine in history, for both valor and accomplishments. Following his retirement, he became a vehement anti-war activist and public speaker.  This book is easily his most-cited and most-quoted published work. You can capture the flavor from an article he published in a magazine that included the following lines: "I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents." http://en.wikipedia.org/wiki/Smedley_Butler#Lectures  I look forward to reading this book. The book was reprinted in 2003 and is available from the linked web site, together with two bonus titles. 
  • Gary Edwards on 18 Sep 13
     
    "WAR IS A RACKET" - free online book CHAPTER ONE WAR is a racket. It always has been. It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives. A racket is best described, I believe, as something that is not what it seems to the majority of the people. Only a small "inside" group knows what it is about. It is conducted for the benefit of the very few, at the expense of the very many. Out of war a few people make huge fortunes. In the World War [I] a mere handful garnered the profits of the conflict. At least 21,000 new millionaires and billionaires were made in the United States during the World War. That many admitted their huge blood gains in their income tax returns. How many other war millionaires falsified their tax returns no one knows. How many of these war millionaires shouldered a rifle? How many of them dug a trench? How many of them knew what it meant to go hungry in a rat-infested dug-out? How many of them spent sleepless, frightened nights, ducking shells and shrapnel and machine gun bullets? How many of them parried a bayonet thrust of an enemy? How many of them were wounded or killed in battle? Out of war nations acquire additional territory, if they are victorious. They just take it. This newly acquired territory promptly is exploited by the few - the selfsame few who wrung dollars out of blood in the war. The general public shoulders the bill. And what is this bill? This bill renders a horrible accounting. Newly placed gravestones. Mangled bodies. Shattered minds. Broken hearts and homes. Economic instability. Depression and all its attendant miseries. Back-breaking taxation for generations and generations. For a great many years, as a soldier, I had a suspicion that war was a racket; not until I retired to civil life did I fully realize it. Now that I see the international war clouds g
Paul Merrell

Killing Off Community Banks - Intended Consequence of Dodd-Frank? | WEB OF DEBT BLOG - 0 views

ellenbrown.com/...nded-consequence-of-dodd-frank

banksters consolidation Dodd-Frank community-banks too-big-to-fail too-big-to-jail too-big-to-regulate

shared by Paul Merrell on 25 Oct 15 - No Cached
  • The Dodd-Frank regulations are so lethal to community banks that some say the intent was to force them to sell out to the megabanks. Community banks are rapidly disappearing — except in North Dakota, where they are thriving.  At over 2,300 pages, the Dodd Frank Act is the longest and most complicated bill ever passed by the US legislature. It was supposed to end “too big to fail” and “bailouts,” and to “promote financial stability.” But Dodd-Frank’s “orderly liquidation authority” has replaced bailouts with bail-ins, meaning that in the event of insolvency, big banks are to recapitalize themselves with the savings of their creditors and depositors. The banks deemed too big are more than 30% bigger than before the Act was passed in 2010, and 80% bigger than before the banking crisis of 2008. The six largest US financial institutions now have assets of some $10 trillion, amounting to almost 60% of GDP; and they control nearly 50% of all bank deposits.
  • Meanwhile, their smaller competitors are struggling to survive. Community banks and credit unions are disappearing at the rate of one a day. Access to local banking services is disappearing along with them. Small and medium-size businesses – the ones that hire two-thirds of new employees – are having trouble getting loans; students are struggling with sky-high interest rates; homeowners have been replaced by hedge funds acting as absentee landlords; and bank fees are up, increasing the rolls of the unbanked and underbanked, and driving them into the predatory arms of payday lenders. Even some well-heeled clients are being rejected. In an October 19, 2015 article titled  “Big Banks to America’s Firms: We Don’t Want Your Cash,” the Wall Street Journal reported that some Wall Street banks are now telling big depositors to take their money elsewhere or be charged a deposit fee. Municipal governments are also being rejected as customers. Bank of America just announced that it no longer wants the business of some smaller cities, which have been given 90 days to find somewhere else to put their money. Hundreds of local BofA branches are also disappearing.
  • Hardest hit, however, are the community banks. Today there are 1,524 fewer banks with assets under $1 billion than there were in June 2010, before the Dodd-Frank regulations were signed into law. Collateral Damage or Intended Result?
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  • Obviously, making the big banks bigger also serves the interests of the megabanks, whose lobbyists are well known to have their fingerprints all over the legislation. How they have been able to manipulate the rules was seen last December, when legislation drafted by Citigroup and slipped into the Omnibus Spending Bill loosened the Dodd-Frank regulations on derivatives. As noted in a Mother Jones article before the legislation was passed: The Citi-drafted legislation will benefit five of the largest banks in the country—Citigroup, JPMorgan Chase, Goldman Sachs, Bank of America, and Wells Fargo. These financial institutions control more than 90 percent of the $700 trillion derivatives market. If this measure becomes law, these banks will be able to use FDIC-insured money to bet on nearly anything they want. And if there’s another economic downturn, they can count on a taxpayer bailout of their derivatives trading business.
  • Regulation is clearly inadequate to keep these banks honest and ensure that they serve the public interest. The world’s largest private banks have been caught in criminal acts that former bank fraud investigator Prof. William K. Black calls the greatest frauds in history. The litany of frauds involves more than a dozen felonies, including bid-rigging on municipal bond debt; colluding to rig interest rates on hundreds of trillions of dollars in mortgages, derivatives and other contracts; exposing investors to excessive risk; and engaging in multiple forms of mortgage fraud. According to US Attorney General Eric Holder, the guilty have gone unpunished because they are “too big to prosecute.” If they are too big to prosecute, they are too big to regulate.
Paul Merrell

How the NSA Plans to Infect 'Millions' of Computers with Malware - The Intercept - 0 views

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surveillance state NSA GCHQ NSA-methods malware

shared by Paul Merrell on 13 Mar 14 - No Cached
  • Top-secret documents reveal that the National Security Agency is dramatically expanding its ability to covertly hack into computers on a mass scale by using automated systems that reduce the level of human oversight in the process. The classified files – provided previously by NSA whistleblower Edward Snowden – contain new details about groundbreaking surveillance technology the agency has developed to infect potentially millions of computers worldwide with malware “implants.” The clandestine initiative enables the NSA to break into targeted computers and to siphon out data from foreign Internet and phone networks. The covert infrastructure that supports the hacking efforts operates from the agency’s headquarters in Fort Meade, Maryland, and from eavesdropping bases in the United Kingdom and Japan. GCHQ, the British intelligence agency, appears to have played an integral role in helping to develop the implants tactic.
  • The NSA began rapidly escalating its hacking efforts a decade ago. In 2004, according to secret internal records, the agency was managing a small network of only 100 to 150 implants. But over the next six to eight years, as an elite unit called Tailored Access Operations (TAO) recruited new hackers and developed new malware tools, the number of implants soared to tens of thousands. To penetrate foreign computer networks and monitor communications that it did not have access to through other means, the NSA wanted to go beyond the limits of traditional signals intelligence, or SIGINT, the agency’s term for the interception of electronic communications. Instead, it sought to broaden “active” surveillance methods – tactics designed to directly infiltrate a target’s computers or network devices. In the documents, the agency describes such techniques as “a more aggressive approach to SIGINT” and says that the TAO unit’s mission is to “aggressively scale” these operations. But the NSA recognized that managing a massive network of implants is too big a job for humans alone.
  • “One of the greatest challenges for active SIGINT/attack is scale,” explains the top-secret presentation from 2009. “Human ‘drivers’ limit ability for large-scale exploitation (humans tend to operate within their own environment, not taking into account the bigger picture).” The agency’s solution was TURBINE. Developed as part of TAO unit, it is described in the leaked documents as an “intelligent command and control capability” that enables “industrial-scale exploitation.”
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  • TURBINE was designed to make deploying malware much easier for the NSA’s hackers by reducing their role in overseeing its functions. The system would “relieve the user from needing to know/care about the details,” the NSA’s Technology Directorate notes in one secret document from 2009. “For example, a user should be able to ask for ‘all details about application X’ and not need to know how and where the application keeps files, registry entries, user application data, etc.” In practice, this meant that TURBINE would automate crucial processes that previously had to be performed manually – including the configuration of the implants as well as surveillance collection, or “tasking,” of data from infected systems. But automating these processes was about much more than a simple technicality. The move represented a major tactical shift within the NSA that was expected to have a profound impact – allowing the agency to push forward into a new frontier of surveillance operations. The ramifications are starkly illustrated in one undated top-secret NSA document, which describes how the agency planned for TURBINE to “increase the current capability to deploy and manage hundreds of Computer Network Exploitation (CNE) and Computer Network Attack (CNA) implants to potentially millions of implants.” (CNE mines intelligence from computers and networks; CNA seeks to disrupt, damage or destroy them.)
  • But not all of the NSA’s implants are used to gather intelligence, the secret files show. Sometimes, the agency’s aim is disruption rather than surveillance. QUANTUMSKY, a piece of NSA malware developed in 2004, is used to block targets from accessing certain websites. QUANTUMCOPPER, first tested in 2008, corrupts a target’s file downloads. These two “attack” techniques are revealed on a classified list that features nine NSA hacking tools, six of which are used for intelligence gathering. Just one is used for “defensive” purposes – to protect U.S. government networks against intrusions.
  • The NSA has a diverse arsenal of malware tools, each highly sophisticated and customizable for different purposes. One implant, codenamed UNITEDRAKE, can be used with a variety of “plug-ins” that enable the agency to gain total control of an infected computer. An implant plug-in named CAPTIVATEDAUDIENCE, for example, is used to take over a targeted computer’s microphone and record conversations taking place near the device. Another, GUMFISH, can covertly take over a computer’s webcam and snap photographs. FOGGYBOTTOM records logs of Internet browsing histories and collects login details and passwords used to access websites and email accounts. GROK is used to log keystrokes. And SALVAGERABBIT exfiltrates data from removable flash drives that connect to an infected computer. The implants can enable the NSA to circumvent privacy-enhancing encryption tools that are used to browse the Internet anonymously or scramble the contents of emails as they are being sent across networks. That’s because the NSA’s malware gives the agency unfettered access to a target’s computer before the user protects their communications with encryption. It is unclear how many of the implants are being deployed on an annual basis or which variants of them are currently active in computer systems across the world.
  • Infiltrating cellphone networks, however, is not all that the malware can be used to accomplish. The NSA has specifically tailored some of its implants to infect large-scale network routers used by Internet service providers in foreign countries. By compromising routers – the devices that connect computer networks and transport data packets across the Internet – the agency can gain covert access to monitor Internet traffic, record the browsing sessions of users, and intercept communications. Two implants the NSA injects into network routers, HAMMERCHANT and HAMMERSTEIN, help the agency to intercept and perform “exploitation attacks” against data that is sent through a Virtual Private Network, a tool that uses encrypted “tunnels” to enhance the security and privacy of an Internet session.
  • Eventually, the secret files indicate, the NSA’s plans for TURBINE came to fruition. The system has been operational in some capacity since at least July 2010, and its role has become increasingly central to NSA hacking operations. Earlier reports based on the Snowden files indicate that the NSA has already deployed between 85,000 and 100,000 of its implants against computers and networks across the world, with plans to keep on scaling up those numbers. The intelligence community’s top-secret “Black Budget” for 2013, obtained by Snowden, lists TURBINE as part of a broader NSA surveillance initiative named “Owning the Net.” The agency sought $67.6 million in taxpayer funding for its Owning the Net program last year. Some of the money was earmarked for TURBINE, expanding the system to encompass “a wider variety” of networks and “enabling greater automation of computer network exploitation.”
  • Before it can extract data from an implant or use it to attack a system, the NSA must first install the malware on a targeted computer or network. According to one top-secret document from 2012, the agency can deploy malware by sending out spam emails that trick targets into clicking a malicious link. Once activated, a “back-door implant” infects their computers within eight seconds. There’s only one problem with this tactic, codenamed WILLOWVIXEN: According to the documents, the spam method has become less successful in recent years, as Internet users have become wary of unsolicited emails and less likely to click on anything that looks suspicious. Consequently, the NSA has turned to new and more advanced hacking techniques. These include performing so-called “man-in-the-middle” and “man-on-the-side” attacks, which covertly force a user’s internet browser to route to NSA computer servers that try to infect them with an implant.
  • To perform a man-on-the-side attack, the NSA observes a target’s Internet traffic using its global network of covert “accesses” to data as it flows over fiber optic cables or satellites. When the target visits a website that the NSA is able to exploit, the agency’s surveillance sensors alert the TURBINE system, which then “shoots” data packets at the targeted computer’s IP address within a fraction of a second. In one man-on-the-side technique, codenamed QUANTUMHAND, the agency disguises itself as a fake Facebook server. When a target attempts to log in to the social media site, the NSA transmits malicious data packets that trick the target’s computer into thinking they are being sent from the real Facebook. By concealing its malware within what looks like an ordinary Facebook page, the NSA is able to hack into the targeted computer and covertly siphon out data from its hard drive. A top-secret animation demonstrates the tactic in action.
  • The TURBINE implants system does not operate in isolation. It is linked to, and relies upon, a large network of clandestine surveillance “sensors” that the agency has installed at locations across the world.
  • The NSA’s headquarters in Maryland are part of this network, as are eavesdropping bases used by the agency in Misawa, Japan and Menwith Hill, England. The sensors, codenamed TURMOIL, operate as a sort of high-tech surveillance dragnet, monitoring packets of data as they are sent across the Internet. When TURBINE implants exfiltrate data from infected computer systems, the TURMOIL sensors automatically identify the data and return it to the NSA for analysis. And when targets are communicating, the TURMOIL system can be used to send alerts or “tips” to TURBINE, enabling the initiation of a malware attack. The NSA identifies surveillance targets based on a series of data “selectors” as they flow across Internet cables. These selectors, according to internal documents, can include email addresses, IP addresses, or the unique “cookies” containing a username or other identifying information that are sent to a user’s computer by websites such as Google, Facebook, Hotmail, Yahoo, and Twitter. Other selectors the NSA uses can be gleaned from unique Google advertising cookies that track browsing habits, unique encryption key fingerprints that can be traced to a specific user, and computer IDs that are sent across the Internet when a Windows computer crashes or updates.
  • Documents published with this article: Menwith Hill Station Leverages XKeyscore for Quantum Against Yahoo and Hotmail Five Eyes Hacking Large Routers NSA Technology Directorate Analysis of Converged Data Selector Types There Is More Than One Way to Quantum NSA Phishing Tactics and Man in the Middle Attacks Quantum Insert Diagrams The NSA and GCHQ’s QUANTUMTHEORY Hacking Tactics TURBINE and TURMOIL VPN and VOIP Exploitation With HAMMERCHANT and HAMMERSTEIN Industrial-Scale Exploitation Thousands of Implants
  • Paul Merrell on 13 Mar 14
     
    *Very* long article. Only small portions quoted.
Gary Edwards

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

theeconomiccollapseblog.com/...rivatives-crisis-has-now-begun

Banksters

shared by Gary Edwards on 15 Oct 15 - No Cached
  • No one “understands” derivatives. How many times have readers heard that thought expressed (please round-off to the nearest thousand)? Why does no one understand derivatives? For many; the answer to that question is that they have simply been thinking too hard. For others; the answer is that they don’t “think” at all. Derivatives are bets. This is not a metaphor, or analogy, or generalization. Derivatives are bets. Period. That’s all they ever were. That’s all they ever can be.
  • One very large financial institution that appears to be in serious trouble with these financial weapons of mass destruction is Glencore.  At one time Glencore was considered to be the 10th largest company on the entire planet, but now it appears to be coming apart at the seams, and a great deal of their trouble seems to be tied to derivatives.  The following comes from Zero Hedge… Of particular concern, they said, was Glencore’s use of financial instruments such as derivatives to hedge its trading of physical goods against price swings. The company had $9.8 billion in gross derivatives in June 2015, down from $19 billion in such positions at the end of 2014, causing investors to query the company about the swing. Glencore told investors the number went down so drastically because of changes in market volatility this year, according to people briefed by Glencore. When prices vary significantly, it can increase the value of hedging positions. Last year, there were extreme price moves, particularly in the crude-oil market, which slid from about $114 a barrel in June to less than $60 a barrel by the end of December.
  • That response wasn’t satisfying, said Michael Leithead, a bond fund portfolio manager at EFG Asset Management, which managed $12 billion as of the end of March and has invested in Glencore’s debt.
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  • According to Bank of America, the global financial system has about 100 billion dollars of exposure overall to Glencore.  So if Glencore goes bankrupt that is going to be a major event.  At this point, Glencore is probably the most likely candidate to be “the next Lehman Brothers”. And it isn’t just Glencore that is in trouble.  Other financial giants such as Trafigura are in deep distress as well.  Collectively, the global financial system has approximately half a trillion dollars of exposure to these firms… Worse, since it is not just Glencore that the banks are exposed to but very likely the rest of the commodity trading space, their gross exposure blows up to a simply stunning number:
  • For the banks, of course, Glencore may not be their only exposure in the commodity trading space. We consider that other vehicles such as Trafigura, Vitol and Gunvor may feature on bank balance sheets as well ($100 bn x 4?)
  • Call it half a trillion dollars in very highly levered exposure to commodities: an asset class that has been crushed in the past year. The mainstream media is not talking much about any of this yet, and that is probably a good thing.  But behind the scenes, unprecedented moves are already taking place. When I came across the information that I am about to share with you, I was absolutely stunned.  It comes from Investment Research Dynamics, and it shows very clearly that everything is not “okay” in the financial world… Something occurred in the banking system in September that required a massive reverse repo operation in order to force the largest ever Treasury collateral injection into the repo market.   Ordinarily the Fed might engage in routine reverse repos as a means of managing the Fed funds rate.   However, as you can see from the graph below, there have been sudden spikes up in the amount of reverse repos that tend to correspond the some kind of crisis – the obvious one being the de facto collapse of the financial system in 2008:
  • What in the world could possibly cause a spike of that magnitude? Well, that same article that I just quoted links the troubles at Glencore with this unprecedented intervention… What’s even more interesting is that the spike-up in reverse repos occurred at the same time – September 16 – that the stock market embarked on an 8-day cliff dive, with the S&P 500 falling 6% in that time period.  You’ll note that this is around the same time that a crash in Glencore stock and bonds began.   It has been suggested by analysts that a default on Glencore credit derivatives either by Glencore or by financial entities using derivatives to bet against that event would be analogous to the “Lehman moment” that triggered the 2008 collapse. The blame on the general stock market plunge was cast on the Fed’s inability to raise interest rates.  However that seems to be nothing more than a clever cover story for something much more catastrophic which began to develop out sight in the general liquidity functions of the global banking system. Back in 2008, Lehman Brothers was not “perfectly fine” one day and then suddenly collapsed the next.  There were problems brewing under the surface well in advance. Well, the same thing is happening now at banking giants such as Deutsche Bank, and at commodity trading firms such as Glencore, Trafigura and The Noble Group. And of course a lot of smaller fish are starting to implode as well.  I found this example posted on Business Insider earlier today…
  • On September 11, Spruce Alpha, a small hedge fund which is part of a bigger investment group, sent a short report to investors. The letter said that the $80 million fund had lost 48% in a month, according the performance report seen by Business Insider. There was no commentary included in the note. No explanation. Just cold hard numbers.
  • Wow – how do you possibly lose 48 percent in a single month? It would be hard to do that even if you were actually trying to lose money on purpose. Sadly, this kind of scenario is going to be repeated over and over as we get even deeper into this crisis. Meanwhile, our “leaders” continue to tell us that there is nothing to worry about.  For example, just consider what former Fed Chairman Ben Bernanke is saying…
  • Former Federal Reserve chairman Ben Bernanke doesn’t see any bubbles forming in global markets right right now. But he doesn’t think you should take his word for it. And even if you did, that isn’t the right question to ask anyway. Speaking at a Wall Street Journal event on Wednesday morning, Bernanke said, “I don’t see any obvious major mispricings. Nothing that looks like the housing bubble before the crisis, for example. But you shouldn’t trust me.”
  • I certainly agree with that last sentence.  Bernanke was the one telling us that there was not going to be a recession back in 2008 even after one had already started.  He was clueless back then and he is clueless today. Most of our “leaders” either don’t understand what is happening or they are not willing to tell us. So that means that we have to try to figure things out for ourselves the best that we can.  And right now there are signs all around us that another 2008-style crisis has begun. Personally, I am hoping that there will be a lot more days like today when the markets were relatively quiet and not much major news happened around the world. Unfortunately for all of us, these days of relative peace and tranquility are about to come to a very abrupt end.
  • Gary Edwards on 15 Oct 15
     
    "Warren Buffett once referred to derivatives as "financial weapons of mass destruction", and it was inevitable that they would begin to wreak havoc on our financial system at some point.  While things may seem somewhat calm on Wall Street at the moment, the truth is that a great deal of trouble is bubbling just under the surface.  As you will see below, something happened in mid-September that required an unprecedented 405 billion dollar surge of Treasury collateral into the repo market.  I know - that sounds very complicated, so I will try to break it down more simply for you.  It appears that some very large institutions have started to get into a significant amount of trouble because of all the reckless betting that they have been doing.  This is something that I have warned would happen over and over again.  In fact, I have written about it so much that my regular readers are probably sick of hearing about it.  But this is what is going to cause the meltdown of our financial system. Many out there get upset when I compare derivatives trading to gambling, and perhaps it would be more accurate to describe most derivatives as a form of insurance.  The big financial institutions assure us that they have passed off most of the risk on these contracts to others and so there is no reason to worry according to them. Well, personally I don't buy their explanations, and a lot of others don't either.  On a very basic, primitive level, derivatives trading is gambling.  This is a point that Jeff Nielson made very eloquently in a piece that he recently published…"
Paul Merrell

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

nsnbc.me/...eal-from-win-win-to-mega-loose

must-read banksters big oil Saudis Russia shale-oil U.S.-foreign-policy

shared by Paul Merrell on 09 Aug 15 - No Cached
  • Who would’ve thought it would come to this? Certainly not the Obama Administration, and their brilliant geo-political think-tank neo-conservative strategists. John Kerry’s brilliant “win-win” proposal of last September during his September 11 Jeddah meeting with ailing Saudi King Abdullah was simple: Do a rerun of the highly successful State Department-Saudi deal in 1986 when Washington persuaded the Saudis to flood the world market at a time of over-supply in order to collapse oil prices worldwide, a kind of “oil shock in reverse.” In 1986 was successful in helping to break the back of a faltering Soviet Union highly dependent on dollar oil export revenues for maintaining its grip on power. So, though it was not made public, Kerry and Abdullah agreed on September 11, 2014 that the Saudis would use their oil muscle to bring Putin’s Russia to their knees today.
  • It seemed brilliant at the time no doubt. On the following day, 12 September 2014, the US Treasury’s aptly-named Office of Terrorism and Financial Intelligence, headed by Treasury Under-Secretary David S. Cohen, announced new sanctions against Russia’s energy giants Gazprom, Gazprom Neft, Lukoil, Surgutneftgas and Rosneft. It forbid US oil companies to participate with the Russian companies in joint ventures for oil or gas offshore or in the Arctic. Then, just as the ruble was rapidly falling and Russian major corporations were scrambling for dollars for their year-end settlements, a collapse of world oil prices would end Putin’s reign. That was clearly the thinking of the hollowed-out souls who pass for statesmen in Washington today. Victoria Nuland was jubilant, praising the precision new financial warfare weapon at David Cohen’s Treasury financial terrorism unit. In July, 2014 West Texas Intermediate, the benchmark price for US domestic oil pricing, traded at $101 a barrel. The shale oil bonanza was booming, making the US into a major oil player for the first time since the 1970’s. When WTI hit $46 at the beginning of January this year, suddenly things looked different. Washington realized they had shot themselves in the foot.
  • They realized that the over-indebted US shale oil industry was about to collapse under the falling oil price. Behind the scenes Washington and Wall Street colluded to artificially stabilize what then was an impending chain-reaction bankruptcy collapse in the US shale oil industry. As a result oil prices began a slow rise, hitting $53 in February. The Wall Street and Washington propaganda mills began talking about the end of falling oil prices. By May prices had crept up to $62 and almost everyone was convinced oil recovery was in process. How wrong they were.
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  • Since that September 11 Kerry-Abdullah meeting (curious date to pick, given the climate of suspicion that the Bush family is covering up involvement of the Saudis in or around the events of September 11, 2001), the Saudis have a new ageing King, Absolute Monarch and Custodian of the Two Holy Mosques, King Salman, replacing the since deceased old ageing King, Abdullah. However, the Oil Minister remains unchanged—79-year-old Ali al-Naimi. It was al-Naimi who reportedly saw the golden opportunity in the Kerry proposal to use the chance to at the same time kill off the growing market challenge from the rising output of the unconventional USA shale oil industry. Al-Naimi has said repeatedly that he is determined to eliminate the US shale oil “disturbance” to Saudi domination of world oil markets. Not only are the Saudis unhappy with the US shale oil intrusion on their oily Kingdom. They are more than upset with the recent deal the Obama Administration made with Iran that will likely lead in several months to lifting Iran economic sanctions. In fact the Saudis are beside themselves with rage against Washington, so much so that they have openly admitted an alliance with arch foe, Israel, to combat what they see as the Iran growing dominance in the region—in Syria, in Lebanon, in Iraq.
  • This has all added up to an iron Saudi determination, aided by close Gulf Arab allies, to further crash oil prices until the expected wave of shale oil company bankruptcies—that was halted in January by Washington and Wall Street manipulations—finishes off the US shale oil competition. That day may come soon, but with unintended consequences for the entire global financial system at a time such consequences can ill be afforded. According to a recent report by Wall Street bank, Morgan Stanley, a major player in crude oil markets, OPEC oil producers have been aggressively increasing oil supply on the already glutted world market with no hint of a letup. In its report Morgan Stanley noted with visible alarm, “OPEC has added 1.5 million barrels/day to global supply in the last four months alone…the oil market is currently 800,000 barrels/day oversupplied. This suggests that the current oversupply in the oil market is fully due to OPEC’s production increase since February alone.” The Wall Street bank report adds the disconcerting note, “We anticipated that OPEC would not cut, but we didn’t foresee such a sharp increase.” In short, Washington has completely lost its strategic leverage over Saudi Arabia, a Kingdom that had been considered a Washington vassal ever since FDR’s deal to bring US oil majors in on an exclusive basis in 1945.
  • That breakdown in US-Saudi communication adds a new dimension to the recent June 18 high-level visit to St. Petersburg by Muhammad bin Salman, the Saudi Deputy Crown Prince and Defense Minister and son of King Salman, to meet President Vladimir Putin. The meeting was carefully prepared by both sides as the two discussed up to $10 billion of trade deals including Russian construction of peaceful nuclear power reactors in the Kingdom and supplying of advanced Russian military equipment and Saudi investment in Russia in agriculture, medicine, logistics, retail and real estate. Saudi Arabia today is the world’s largest oil producer and Russia a close second. A Saudi-Russian alliance on whatever level was hardly in the strategy book of the Washington State Department planners.…Oh shit! Now that OPEC oil glut the Saudis have created has cracked the shaky US effort to push oil prices back up. The price fall is being further fueled by fears that the Iran deal will add even more to the glut, and that the world’s second largest oil importer, China, may cut back imports or at least not increase them as their economy slows down. The oil market time bomb detonated in the last week of June. The US price of WTI oil went from $60 a barrel then, a level at which at least many shale oil producers can stay afloat a bit longer, to $49 on July 29, a drop of more than 18% in four weeks, tendency down. Morgan Stanley sounded loud alarm bells, stating that if the trend of recent weeks continues, “this downturn would be more severe than that in 1986. As there was no sharp downturn in the 15 years before that, the current downturn could be the worst of the last 45+ years. If this were to be the case, there would be nothing in our experience that would be a guide to the next phases of this cycle…In fact, there may be nothing in analyzable history.”
  • October is the next key point for bank decisions to roll-over US shale company loans or to keep extending credit on the (until now) hope that prices will slowly recover. If as strongly hinted, the Federal Reserve hikes US interest rates in September for the first time in the eight years since the global financial crisis erupted in the US real estate market in 2007, the highly-indebted US shale oil producers face disaster of a new scale. Until the past few weeks the volume of US shale oil production has remained at the maximum as shale producers desperately try to maximize cash flow, ironically, laying the seeds of the oil glut globally that will be their demise. The reason US shale oil companies have been able to continue in business since last November and not declare bankruptcy is the ongoing Federal Reserve zero interest rate policy that leads banks and other investors to look for higher interest rates in the so-called “High Yield” bond market. Back in the 1980’s when they were first created by Michael Millken and his fraudsters at Drexel Burnham Lambert, Wall Street appropriately called them “junk bonds” because when times got bad, like now for Shale companies, they turned into junk. A recent UBS bank report states, “the overall High-Yield market has doubled in size; sectors that witnessed more buoyant issuance in recent years, like energy and metals mining, have seen debt outstanding triple or quadruple.”
  • Assuming that the most recent downturn in WTI oil prices continues week after week into October, there well could be a panic run to sell billions of dollars of those High-Yield, high-risk junk bonds. As one investment analyst notes, “when the retail crowd finally does head for the exits en masse, fund managers will be forced to come face to face with illiquid secondary corporate credit markets where a lack of market depth…has the potential to spark a fire sale.” The problem is that this time, unlike in 2008, the Federal Reserve has no room to act. Interest rates are already near zero and the Fed has bought trillions of dollars of bank bad debt to prevent a chain-reaction US bank panic. One option that is not being discussed at all in Washington would be for Congress to repeal the disastrous 1913 Federal Reserve Act that gave control of our nation’s money to a gang of private bankers, and to create a public National Bank, owned completely by the United States Government, that could issue credit and sell Federal debt without the intermediaries of corrupt Wall Street bankers as the Constitution intended. At the same time they could completely nationalize the six or seven “Too Big To Fail” banks behind the entire financial mess that is destroying the foundations of the United States and by extension of the role of the dollar as world reserve currency, of most of the world.
  • Paul Merrell on 09 Aug 15
     
    I give a lot of credibility to this article's author when it comes to matters involving the oil market. Remember when reading that the only thing propping up the U.S. dollar is the Saudi (later extended to all OPEC nations) insistence that they be paid for their oil and natural gas in U.S. dollars, which creates artificial demand for the dollar globally. If the Gulf Coast States begin accepting payment in rubles or yuan, it is curtains for the U.S. dollar in global markets.  
Gary Edwards

The Sides Are Forming For The Coming Civil War. | Militia News - 1 views

www.militianews.com/rming-for-the-coming-civil-war

Obammunism financial-collapse financial-oligarchs banksters

shared by Gary Edwards on 29 Nov 13 - No Cached
  • America is in the choosing sides phase of the coming civil war. To use a college recruiting phrase, it is accurate to state that the letters of intent to join one side or another have mostly been signed and the commitments offered. However, there is one big uncommitted piece, but very soon the sides will be drawn.
  • The Chess Pieces of Civil War What is going on today in America all about choosing sides. There are clear lines being formed in the United States. The recruiting pool consists of the Department of Homeland Security, the American military, local law enforcement, the Russian troops pouring into the United States, the trickle of Chinese troops coming into the country through Hawaii and, of course, the poor, the middle class and elite. This is the recruiting pool which will form the chess pieces of the coming American Civil War. Even if all parties in this country wanted the country to continue, even in its present mortally wounded state, it would be foolish to believe that it could continue for much longer.
  • Barring a false flag event, US martial law will have a trigger event, which will lead to martial law, that will be financial and it will naturally occur as we are already on a collision course with destiny.
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  • The net result of these staggering numbers can only end one way, and that is with a financial collapse, followed by a bank holiday, rioting in the streets and the full roll out of martial law. These financial numbers guarantee that the party cannot continue much longer. Since America, in her present form, cannot continue much longer without experiencing a cataclysmic shift, we would be wise to realize what resources are going to be the impetus for civil war. When you play the board game, Monopoly, the properties on Boardwalk are among the most coveted. It is no different in real life. The biggest prize of the coming conflict is real estate. Homes, office buildings and shopping malls are the most coveted prize. The MERS mortgage fraud continues unabated as millions of homes have been confiscated through mortgage fraud. When the dollar is worthless and is awaiting its replacement (e.g. the Amero or the Worldo), real estate will be more valuable than gold.
  • Other big game that is being hunted by both sides in the coming civil war will be bank accounts, which must be looted before the dormant computer digits we call money can be converted into hard assets. That is why my advice is, and has been, convert your cash into tangible assets which can enhance your survivability in the upcoming crash.
  • Also, your pensions, your 401K’s and your various entitlement programs are also at risk as evidenced by Secretary of Treasury Jack Lew’s “borrowing” from various Federal retirement accounts in order to increase the debt ceiling fight that will resurface in Congress, again, early next year.
  • Again, my advice is to convert your assets in tangible items which will aid in getting you through some very dark days coming up in the near future.
  • Before the cognitive dissonance crowd rears their ugly heads and accuses me of fear mongering, ask yourself what the elite did prior to the crash of the economy in 1929. For example, Joseph Kennedy took his money out of the stock market the day BEFORE it crashed. Vanderbilt, Rockefeller, Westinghouse, et al., all took their money out just prior to the crash, leaving the ignorant masses unaware of what was coming. Don’t make the same mistake.
  • I have news for you, there are Federal officials in every town, city and county in America. If one violates HR 347, they will be immediately arrested and charged with a felony.
  • The NDAA constitutes another big fence being built around the people in which all due process will soon be gone. The NDAA will allow the administration the “legal” right to secretly remove any burgeoning leadership of citizen opposition forces.
  • There are three paramount numbers that every American should be paying attention to and they are (1) national deficit ($17 trillion dollars), (2) the unfunded liabilities debt ($238 trillion dollars), and (3) the derivatives/futures debt (one quadrillion dollars which is 16 times the entire wealth of the planet.
  • In short, this spells the potential enslavement of the American people.
  • For those of you who still have your blinders on, research the NDAA and EO 13603 and then when you realize that I am correct in my interpretation, ask yourself one question; If the powers that be were not going to seize every important asset, then why would the government give itself the power to do just that?
  • And while you are at it, remember the Clean Water Act gives the EPA to control all private property as well as the precious resources of all water. And then of course, the FDA and the conflicts with local farmers is escalating.
  • And if this is not enough to convince the sheep of this country that the storm clouds are overhead, then take a look at HR 347 which outlaws protesting and takes away the First Amendment. This unconstitutional legislation makes it illegal to criticize the President and the government, as a whole, in the presence of Federal officials.
  • The second provision which will allow this country to quickly transition to martial law is Executive Order (EO) 13603 which allows the President to take control over any resource, property and even human labor within the United States. This EO gives the President unlimited authority including the ability to initiate a civilian draft as well as a military draft.
  • I just saw the Hunger Games sequel, Catching Fire, and this is eerily similar to what I saw in the movies in that the people are being provoked to revolution.
  • in the TV show, Revolution, the most evil entity in the series is the re-emergence of the United States government and the heroes of the show are rebelling against the abuse.
  • It seems like everywhere we turn in the media, the people are being encouraged to rise up now and challenge authority. I am sure the establishment would rather confront a small group of dissidents and squelch the rebellion now, before the numbers can become significant and overwhelming to the establishment and this theme is being carried out in the media.
  • The final action will consist of gun confiscation and one side of the coming conflict is attempting to position themselves to do that in the near future and that would be the DHS, the Russians and the Chinese.
  • I cannot think of another legitimate reason which would describe why they are here.
  • Paul Merrell on 30 Nov 13
     
    While I'd be the first to agree that the degree of fiscal mismanagement of this nation's economy is beyond insane and have to admit that I see very little to admire in Barack Obama's presidency, the meme about Executive Order 13603 authorizing confiscation of any property and enslavement of the American public needs to be put to rest. See http://www.archives.gov/federal-register/executive-orders/2012.html#13603 E.O. 13603 is not much more than an updating of similar executive orders issued by prior presidents beginning with Dwight Eisenhower. In fact, in skimming it a few minutes ago, I didn't see anything drastically different from some of the prior related orders. E.g., it reflects that a bunch of agencies that were formerly either independent or under other departments are now under the newish Department of Homeland Security, whose Secretary now gets the authority formerly delegated to other department and agency heads. If blame must be cast, it belongs on the Congress that enacted the Defense Production Act of 1950, 50 U.S.C. 2061, et seq. The executive order does no more than obey that Act's instructions. For example there is a section authorizing pre-emption of manufacturing capacity of critical industries over any existing civilian contracts in the event of a national emergency, but that language is in the statute as well. But that power hasn't had much traction since Harry Truman tried to nationalize the steel industry to break a nationwide strike. The Supreme Court swatted down that effort as an abuse of a power that would be lawful in a true emergency, like another major. But even that semi-radical "survival" power is ameliorated by other provisions of the statute and the order that authorize loan guarantees for companies' construction and maintenance of critical productive capacity. Much of that has been implemented over the years as outright grants. So for example, many chemical manufacturing plants were built with Defense Production Act funds, with
Paul Merrell

Trump's Infrastructure Boondoggle - 0 views

www.counterpunch.org/...umps-infrastructure-boondoggle

economy Trump infrastructure

shared by Paul Merrell on 19 Mar 17 - No Cached
  • Donald Trump’s $1 trillion infrastructure plan is not an infrastructure plan and it won’t put $1 trillion of fiscal stimulus into the economy. It’s basically a scheme for handing over public assets to private corporations that will extract maximum profits via user fees and tolls. Because the plan is essentially a boondoggle, it will not lift the economy out of the doldrums, increase activity or boost growth.  Quite the contrary. When the details of how the program is going to be implemented are announced,  public confidence in the Trump administration is going to wither and stock prices are going to plunge.   This scenario cannot be avoided because the penny-pinching conservatives in the House and Senate have already said that they won’t support any plan that is not “revenue neutral” which means that any real $1 trillion spending package is a dead letter.  Thus, it’s only a matter of time before the Trump’s plan is exposed as a fraud and the sh** hits the fan.
  • Here are more of the details from an article at Slate: “Under Trump’s plan…the federal government would offer tax credits to private investors interested in funding large infrastructure projects, who would put down some of their own money up front, then borrow the rest on the private bond markets. They would eventually earn their profits on the back end from usage fees, such as highway and bridge tolls (if they built a highway or bridge) or higher water rates (if they fixed up some water mains). So instead of paying for their new roads at tax time, Americans would pay for them during their daily commute. And of course, all these private developers would earn a nice return at the end of the day.” (“Donald Trump’s Plan to Privatize America’s Roads and Bridges”, Slate) Normally, fiscal stimulus is financed by increasing the budget deficits, but Maestro Trump has something else up his sleeve.  He wants the big construction companies and private equity firms to stump up the seed money and start the work with the understanding that they’ll be able to impose user fees and tolls on roads and bridges when the work is completed.  For every dollar that corporations spend on rebuilding US infrastructure, they’ll get a dollar back via tax credits, which means that they’ll end up controlling valuable, revenue-generating assets for nothing. The whole thing is a flagrant ripoff that stinks to high heaven.   The corporations rake in hefty profits on sweetheart deals, while the American people get bupkis. Welcome to Trumpworld.  Here’s more background from Trump’s campaign website:
  • “American Energy and  Infrastructure Act Leverages public-private partnerships, and private investments through tax incentives, to spur $1 trillion in infrastructure investment over ten years. It is revenue neutral.” (Donald Trump’s Contract with the American Voter”) In practical terms, ‘revenue neutral’ means that every dollar of new spending has to be matched by cuts to other government programs.  So, if there are hidden costs to Trump’s plan, then they’ll have to be paid for by slashing funds for Medicare, Medicaid, Social Security, food stamps etc. But, keep in mind, these other programs are much more effective sources of stimulus since the money goes directly to the people who spend it immediately and help grow the economy. Trump’s infrastructure plan doesn’t work like that. A lot of the money will go towards management fees and operational costs leaving fewer dollars to trickle down to low-paid construction workers whose personal consumption drives the economy. Less money for workers means less spending, less activity and weaker growth.
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  • Here’s more on the topic from the Washington Post: “Trump’s plan is not really an infrastructure plan. It’s a tax-cut plan for utility-industry and construction-sector investors, and a massive corporate welfare plan for contractors. The Trump plan doesn’t directly fund new roads, bridges, water systems or airports…. Instead, Trump’s plan provides tax breaks to private-sector investors who back profitable construction projects. … There’s no requirement that the tax breaks be used for … expanded construction efforts; they could all go just to fatten the pockets of investors in previously planned projects… Second, as a result of the above, Trump’s plan isn’t really a jobs plan, either. Because the plan subsidizes investors, not projects; because it funds tax breaks, not bridges; because there’s no requirement that the projects be otherwise unfunded, there is simply no guarantee that the plan will produce any net new hiring. … Buried inside the plan will be provisions to weaken prevailing wage protections on construction projects, undermining unions and ultimately eroding workers’ earnings. Environmental rules are almost certain to be gutted in the name of accelerating projects.” (Trump’s big infrastructure plan? It’s a trap. Washington Post) Let’s summarize:  “Trump’s plan” is “massive corporate welfare plan for contractors” and the “tax breaks”…”could all go just to fatten the pockets of investors in previously planned projects.”
  • What part of this plan looks like it will have a positive impact on the economy? None. If Trump was serious about raising GDP to 4 percent, (another one of his promises) he’d increase Social Security payments, beef up the food stamps program, or hire more government workers.  Any one of these would trigger an immediate uptick in activity spurring more growth and a stronger economy.  And while America’s ramshackle bridges and roads may be in dire need of a facelift,  infrastructure is actually a poor way to inject fiscal stimulus which can be more easily distributed  by simply hiring government agents to stand on streetcorners and hand out 100 dollar bills to passersby. That might not fill the pothole-strewn streets in downtown Duluth, but it would sure as hell would light a fire under GDP. So what’s the gameplan here? What’s Trump really up to? If his infrastructure plan isn’t going to work, then what’s the real objective? The objective is to allow wealthy corporations to buy public assets at firesale prices so they can turn them into profit-generating enterprises. That’s it in a nutshell. That’s why the emphasis is on “unconventional financing programs”, “public-private partnerships”, and “Build America Bonds” instead of plain-old fiscal stimulus, jobs programs and deficit spending. Trump is signaling to his pirate friends in Corporate America that he’ll use his power as executive to find new outlets for profitable investment so they have some place to stick their mountain of money. Of course, none of this has anything to do with rebuilding America’s dilapidated infrastructure or even revving up GDP. That’s just public relations bunkum. What’s really going on is a massive looting operation organized and executed under the watchful eye of Donald Trump, Robber Baron-in-Chief.
  • And Infrastructure is just the tip of the iceberg. Once these kleptomaniacs hit their stride, they’re going to cut through Washington like locusts through a corn field. Bet on it.
  • Paul Merrell on 19 Mar 17
     
    Mike Whitney always tells it like it is.
Paul Merrell

If GCHQ wants to improve national security it must fix our technology | Technology | th... - 0 views

www.theguardian.com/...q-national-security-technology

surveillance state cyberwar vulnerabilities secure-computing Doctorow

shared by Paul Merrell on 10 Apr 14 - No Cached
  • In a recent column, security expert Bruce Schneier proposed breaking up the NSA – handing its offensive capabilities work to US Cyber Command and its law enforcement work to the FBI, and terminating its programme of attacking internet security. In place of this, Schneier proposed that “instead of working to deliberately weaken security for everyone, the NSA should work to improve security for everyone.” This is a profoundly good idea for reasons that may not be obvious at first blush.People who worry about security and freedom on the internet have long struggled with the problem of communicating the urgent stakes to the wider public. We speak in jargon that’s a jumble of mixed metaphors – viruses, malware, trojans, zero days, exploits, vulnerabilities, RATs – that are the striated fossil remains of successive efforts to come to grips with the issue. When we do manage to make people alarmed about the stakes, we have very little comfort to offer them, because Internet security isn’t something individuals can solve.
  • I remember well the day this all hit home for me. It was nearly exactly a year ago, and I was out on tour with my novel Homeland, which tells the story of a group of young people who come into possession of a large trove of government leaks that detail a series of illegal programmes through which supposedly democratic governments spy on people by compromising their computers.
  • I explained the book’s premise, and then talked about how this stuff works in the real world. I laid out a parade of awfuls, including a demonstrated attack that hijacked implanted defibrillators from 10 metres’ distance and caused them to compromise other defibrillators that came into range, implanting an instruction to deliver lethal shocks at a certain time in the future. I talked about Cassidy Wolf, the reigning Miss Teen USA, whose computer had been taken over by a “sextortionist” who captured nude photos of her and then threatened to release them if she didn’t perform live sex shows for him. I talked about the future of self-driving cars, smart buildings, implanted hearing aids and robotic limbs, and explained that the world is made out of computers that we put our bodies into, and that we put inside our bodies.These computers are badly secured. What’s more, governments and their intelligence agencies are actively working to undermine the security of our computers and networks. This was before the Snowden revelations, but we already knew that governments were buying “zero-day vulnerabilities” from security researchers. These are critical bugs that can be leveraged to compromise entire systems. Until recently, the normal response to the discovery of one of these “vulns” was to report them to the vendor so they could be repaired.
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  • But spy-agencies and law-enforcement have created a bustling marketplace for “zero-days,” which are weaponised for the purpose of attacking the computers and networks of “bad guys”. The incentives have shifted, and now a newly discovered bug had a good chance of remaining unpatched and live in the field because governments wanted to be able to use it to hack their enemies.
  • Last year, when I finished that talk in Seattle, a talk about all the ways that insecure computers put us all at risk, a woman in the audience put up her hand and said, “Well, you’ve scared the hell out of me. Now what do I do? How do I make my computers secure?”And I had to answer: “You can’t. No one of us can. I was a systems administrator 15 years ago. That means that I’m barely qualified to plug in a WiFi router today. I can’t make my devices secure and neither can you. Not when our governments are buying up information about flaws in our computers and weaponising them as part of their crime-fighting and anti-terrorism strategies. Not when it is illegal to tell people if there are flaws in their computers, where such a disclosure might compromise someone’s anti-copying strategy.But: If I had just stood here and spent an hour telling you about water-borne parasites; if I had told you about how inadequate water-treatment would put you and everyone you love at risk of horrifying illness and terrible, painful death; if I had explained that our very civilisation was at risk because the intelligence services were pursuing a strategy of keeping information about pathogens secret so they can weaponise them, knowing that no one is working on a cure; you would not ask me ‘How can I purify the water coming out of my tap?’”
  • Because when it comes to public health, individual action only gets you so far. It doesn’t matter how good your water is, if your neighbour’s water gives him cholera, there’s a good chance you’ll get cholera, too. And even if you stay healthy, you’re not going to have a very good time of it when everyone else in your country is striken and has taken to their beds.If you discovered that your government was hoarding information about water-borne parasites instead of trying to eradicate them; if you discovered that they were more interested in weaponising typhus than they were in curing it, you would demand that your government treat your water-supply with the gravitas and seriousness that it is due.The public health analogy is suprisingly apt here. The public health threat-model is in a state of continuous flux, because our well-being is under continuous, deliberate attack from pathogens for whom we are, at best, host organisms, and at worst, dinner. Evolution drives these organisms to a continuously shifting array of tactics to slide past our defenses.Public health isn’t just about pathogens, either – its thorniest problems are about human behaviour and social policy. HIV is a blood-borne disease, but disrupting its spread requires changes to our attitudes about sex, pharmaceutical patents, drugs policy and harm minimisation. Almost everything interesting about HIV is too big to fit on a microscope slide.
  • And so it is for security: crypto is awesome maths, but it’s just maths. Security requires good password choice, good password management, good laws about compelled crypto disclosure, transparency into corporate security practices, and, of course, an end to the governmental practice of spending $250M/year on anti-security sabotage through the NSA/GCHQ programmes Bullrun and Edgehill.
  • But for me, the most important parallel between public health and internet security is their significance to our societal wellbeing. Everything we do today involves the internet. Everything we do tomorrow will require the internet. If you live near a nuclear power plant, fly in airplanes, ride in cars or trains, have an implanted pacemaker, keep money in the bank, or carry a phone, your safety and well-being depend on a robust, evolving, practice of network security.This is the most alarming part of the Snowden revelations: not just that spies are spying on all of us – that they are actively sabotaging all of our technical infrastructure to ensure that they can continue to spy on us.There is no way to weaken security in a way that makes it possible to spy on “bad guys” without making all of us vulnerable to bad guys, too. The goal of national security is totally incompatible with the tactic of weakening the nation’s information security.
  • “Virus” has been a term of art in the security world for decades, and with good reason. It’s a term that resonates with people, even people with only a cursory grasp of technology. As we strive to make the public and our elected representatives understand what’s at stake, let’s expand that pathogen/epidemiology metaphor. We’d never allow MI5 to suppress information on curing typhus so they could attack terrorists by infecting them with it. We need to stop allowing the NSA and GCHQ to suppress information on fixing bugs in our computers, phones, cars, houses, planes, and bodies.If GCHQ wants to improve the national security of the United Kingdom – if the NSA want to impove the American national security – they should be fixing our technology, not breaking it. The technology of Britons and Americans is under continuous, deadly attack from criminals, from foreign spies, and from creeps. Our security is better served by armouring us against these threats than it is by undermining security so that cops and spies have an easier time attacking “bad guys.”
Gary Edwards

Amnesty Senators and the Stories They Told | RedState - 0 views

www.redstate.com/...the-stories-they-told

Amnesty Amnesty-Liars Backstabbing-Senators

shared by Gary Edwards on 25 Jun 13 - No Cached
  • Republicans (and red state Democrats) used to tell voters amazing things about their opposition to amnesty. Then they got elected and supported legislation that actually weakens border security and puts people on a path not just to legalization, but to citizenship, before ever securing our borders.
  • 1. Rubio: “I would vote against anything that grants amnesty because I think it destroys your ability to enforce the existing law and I think it’s unfair to the people who are standing in line and waiting to come in legally. I would vote against anything that has amnesty in it.”
  • 2. Corker: “We need a new immigration policy that reflects America’s values. First, secure this border. Allow people to work here but only if they’re legal. No amnesty. Those employed but here illegally must go home and return through legal channels.”
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  • 3. Wicker: “I agree that illegal immigration is a major issue that needs to be addressed. However, I oppose amnesty as the solution.”
  • 7. Heller: “I believe it is an amnesty program, a back-door amnesty program for the 12 to 15 million people who are here illegally.”
  • 5. Flake: “I’ve been down that road, and it is a dead end. The political realities in Washington are such that a comprehensive solution is not possible, or even desirable given the current leadership. Border security must be addressed before other reforms are tackled.”
  • 6. Hatch: “We can no longer grant amnesty. I fought against the 1986 Simpson-Mazzoli bill because they granted amnesty to 3 million people. They should have to get in line like anybody else if they want to come into this country and do it legally.”
  • 4. Ayotte: “For the people who are here illegally, I don’t support amnesty; it’s wrong. It’s wrong to the people who are waiting in line here, who have waited for so long. And we need to stop that because I think that’s where the Administration is heading next.”
  • 12. Graham: Amid withering criticism from his constituents, Graham — who is up for reelection next year — began to argue that it was time to approach the immigration problem in stages. On Thursday, he likened the decisive vote to pass his amendment to “having been robbed 12 million times and finally getting around to putting a lock on the door.”
  • 9. Collins: Before 2008 reelection, voted no on McCain-Kennedy amnesty
  • 10. Hoeven: Hoeven said the U.S. needs to secure its borders and crack down on employers who hire illegal immigrants.
  • 11. McCain: “Complete the danged fence.”
  • 8. Alexander: “We cannot restore a system of legal immigration – which is the real American Dream – if we undermine it by granting new benefits to those who are here illegally.”
  • 13. Kirk: “The American people believe our borders are broken. It is a fundamental duty of our government to know who is entering the country, making illegal entry nearly impossible. In the coming Congress, we have an overwhelming bipartisan consensus to restore confidence in the security of our borders — before we pursue other immigration proposals.”
  • 14. Murkowski: “With regard to undocumented aliens, I believe that those who illegally entered or remained in the United States should not be granted amnesty. Granting amnesty to illegal aliens sends the wrong message and is not fair to the vast majority of immigrants who abided by U.S. immigration laws. Granting amnesty would only encourage further illegal immigration.”
  • 15. Chisea: Joined most other Republicans, including opponents of the legislation, in supporting a proposal — which was defeated largely along party lines — that would have blocked legalization until the government can prove U.S. borders are secure. Chiesa said he sees border security as a top priority given his law enforcement background, and has yet to decide his stance on citizenship for immigrants without authorization.
  • Red State Democrats
  • 1. Pryor: “I voted against the president’s immigration plan today because the border security and enforcement measures are inadequate and the bill fails to effectively address the individuals who are already here illegally.” Pryor says it’s time for changes, “It’s time for a new approach. I advocate that we strengthen and implement the enforcement measures in this bill and show we can fully enforce immigration laws.”
  • 2. Tester: He wants secure borders and no amnesty for law breakers.
  • 3. Landrieu: “Sen. Landrieu is a leader in the U.S. Senate fighting against illegal immigration,” Schneider said. “She has fought against amnesty for illegal immigrants and to provide more resources for border security. The new NRSC attack is designed simply to mislead voters about Sen. Landrieu’s record.”
  • 4. Donnelly: “Eliminate amnesty because no one should ever be rewarded for breaking the law.”
  • 5. Hagan: Hagan said she supported increased border security and opposed amnesty.
  • 6. McCaskill: Claire does not support amnesty. As a former prosecutor, Claire believes people who break the law should be held accountable, both illegal immigrants and the employers who exploit them for cheap labor. Claire does not believe we need any new guest worker programs undermining American workers.
  • 7. Stabenow: Do you support path to citizenship for illegal immigrants? STABENOW: I voted no, because it went too far and cost us jobs. I do think it’s important to have border security and legal system that is fair and effective. My focus is on our jobs that we’re losing because of failed policies.
  • Gary Edwards on 25 Jun 13
     
    Good collection of statements and position summaries for Republican and Democrat Senators who yesterday voted for the latest Amnesty Bill.  Each had staked out a election position demanding the border be closed and that American jobs be protected.  Yet, here they are voting for an amnesty plan that will legalize over 46 million new Americans. There is no  doubt in my mind that Big Business supports cheap labor fully subsidized by the great American social safety net.  These corporate welfare queens want to pass the escalating cost of labor onto hapless taxpayers.  The Democrats get to rule a one party nation as these new "Federal" citizens loyalty to the is bought and paid for by the States.   And the middle class gets destroyed.   The last stronghold in the Marxist transformation of America handbook, "Rules for Radicals" by Saul Alinsky, is the middle class.  Alinsky had a plan to take it down, and this is the final nail. Still, I don't think any of these Senators are Marxists.  Obama is a Muslim Marxist, same as his father.  A real true believer.  But what were witnessing in America's destruction is not ideological.  It's all about the money.  Ideology is for the handful of idiots needed to put their lives on the line.  The rest can be handled with the one two punch of money and power.  And that's what we see with the amnesty Senators. The money comes from International Banksters and Big Business.  The power comes from having a position, bought with enormous amounts of cash, in the New World Order. Ideology is the facade that hides the enormity of this global power play.
Paul Merrell

Operation AURORAGOLD: How the NSA Hacks Cellphone Networks Worldwide - 0 views

firstlook.org/...nsa-auroragold-hack-cellphones

surveillance state NSA NSA-methods cell-network-penetration AURORAGOLD

shared by Paul Merrell on 06 Dec 14 - No Cached
  • In March 2011, two weeks before the Western intervention in Libya, a secret message was delivered to the National Security Agency. An intelligence unit within the U.S. military’s Africa Command needed help to hack into Libya’s cellphone networks and monitor text messages. For the NSA, the task was easy. The agency had already obtained technical information about the cellphone carriers’ internal systems by spying on documents sent among company employees, and these details would provide the perfect blueprint to help the military break into the networks. The NSA’s assistance in the Libya operation, however, was not an isolated case. It was part of a much larger surveillance program—global in its scope and ramifications—targeted not just at hostile countries.
  • According to documents contained in the archive of material provided to The Intercept by whistleblower Edward Snowden, the NSA has spied on hundreds of companies and organizations internationally, including in countries closely allied to the United States, in an effort to find security weaknesses in cellphone technology that it can exploit for surveillance. The documents also reveal how the NSA plans to secretly introduce new flaws into communication systems so that they can be tapped into—a controversial tactic that security experts say could be exposing the general population to criminal hackers. Codenamed AURORAGOLD, the covert operation has monitored the content of messages sent and received by more than 1,200 email accounts associated with major cellphone network operators, intercepting confidential company planning papers that help the NSA hack into phone networks.
  • Karsten Nohl, a leading cellphone security expert and cryptographer who was consulted by The Intercept about details contained in the AURORAGOLD documents, said that the broad scope of information swept up in the operation appears aimed at ensuring virtually every cellphone network in the world is NSA accessible.
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  • “Collecting an inventory [like this] on world networks has big ramifications,” Nohl said, because it allows the NSA to track and circumvent upgrades in encryption technology used by cellphone companies to shield calls and texts from eavesdropping. Evidence that the agency has deliberately plotted to weaken the security of communication infrastructure, he added, was particularly alarming. “Even if you love the NSA and you say you have nothing to hide, you should be against a policy that introduces security vulnerabilities,” Nohl said, “because once NSA introduces a weakness, a vulnerability, it’s not only the NSA that can exploit it.”
  • The AURORAGOLD operation is carried out by specialist NSA surveillance units whose existence has not been publicly disclosed: the Wireless Portfolio Management Office, which defines and carries out the NSA’s strategy for exploiting wireless communications, and the Target Technology Trends Center, which monitors the development of new communication technology to ensure that the NSA isn’t blindsided by innovations that could evade its surveillance reach. The center’s logo is a picture of the Earth overshadowed by a large telescope; its motto is “Predict – Plan – Prevent.”
  • The NSA documents reveal that, as of May 2012, the agency had collected technical information on about 70 percent of cellphone networks worldwide—701 of an estimated 985—and was maintaining a list of 1,201 email “selectors” used to intercept internal company details from employees. (“Selector” is an agency term for a unique identifier like an email address or phone number.) From November 2011 to April 2012, between 363 and 1,354 selectors were “tasked” by the NSA for surveillance each month as part of AURORAGOLD, according to the documents. The secret operation appears to have been active since at least 2010.
  • By covertly monitoring GSMA working groups in a bid to identify and exploit security vulnerabilities, the NSA has placed itself into direct conflict with the mission of the National Institute for Standards and Technology, or NIST, the U.S. government agency responsible for recommending cybersecurity standards in the United States. NIST recently handed out a grant of more than $800,000 to GSMA so that the organization could research ways to address “security and privacy challenges” faced by users of mobile devices. The revelation that the trade group has been targeted for surveillance may reignite deep-seated tensions between NIST and NSA that came to the fore following earlier Snowden disclosures. Last year, NIST was forced to urge people not to use an encryption standard it had previously approved after it emerged NSA had apparently covertly worked to deliberately weaken it.
  • The NSA focuses on intercepting obscure but important technical documents circulated among the GSMA’s members known as “IR.21s.” Most cellphone network operators share IR.21 documents among each other as part of agreements that allow their customers to connect to foreign networks when they are “roaming” overseas on a vacation or a business trip. An IR.21, according to the NSA documents, contains information “necessary for targeting and exploitation.” The details in the IR.21s serve as a “warning mechanism” that flag new technology used by network operators, the NSA’s documents state. This allows the agency to identify security vulnerabilities in the latest communication systems that can be exploited, and helps efforts to introduce new vulnerabilities “where they do not yet exist.” The IR.21s also contain details about the encryption used by cellphone companies to protect the privacy of their customers’ communications as they are transmitted across networks. These details are highly sought after by the NSA, as they can aid its efforts to crack the encryption and eavesdrop on conversations.
  • One of the prime targets monitored under the AURORAGOLD program is the London-headquartered trade group, the GSM Association, or the GSMA, which represents the interests of more than 800 major cellphone, software, and internet companies from 220 countries. The GSMA’s members include U.S.-based companies such as Verizon, AT&T, Sprint, Microsoft, Facebook, Intel, Cisco, and Oracle, as well as large international firms including Sony, Nokia, Samsung, Ericsson, and Vodafone. The trade organization brings together its members for regular meetings at which new technologies and policies are discussed among various “working groups.” The Snowden files reveal that the NSA specifically targeted the GSMA’s working groups for surveillance.
  • Last year, the Washington Post reported that the NSA had already managed to break the most commonly used cellphone encryption algorithm in the world, known as A5/1. But the information collected under AURORAGOLD allows the agency to focus on circumventing newer and stronger versions of A5 cellphone encryption, such as A5/3. The documents note that the agency intercepts information from cellphone operators about “the type of A5 cipher algorithm version” they use, and monitors the development of new algorithms in order to find ways to bypass the encryption. In 2009, the British surveillance agency Government Communications Headquarters conducted a similar effort to subvert phone encryption under a project called OPULENT PUP, using powerful computers to perform a “crypt attack” to penetrate the A5/3 algorithm, secret memos reveal. By 2011, GCHQ was collaborating with the NSA on another operation, called WOLFRAMITE, to attack A5/3 encryption. (GCHQ declined to comment for this story, other than to say that it operates within legal parameters.)
  • The extensive attempts to attack cellphone encryption have been replicated across the Five Eyes surveillance alliance. Australia’s top spy agency, for instance, infiltrated an Indonesian cellphone company and stole nearly 1.8 million encryption keys used to protect communications, the New York Times reported in February.
  • The NSA’s documents show that it focuses on collecting details about virtually all technical standards used by cellphone operators, and the agency’s efforts to stay ahead of the technology curve occasionally yield significant results. In early 2010, for instance, its operatives had already found ways to penetrate a variant of the newest “fourth generation” smartphone-era technology for surveillance, years before it became widely adopted by millions of people in dozens of countries. The NSA says that its efforts are targeted at terrorists, weapons proliferators, and other foreign targets, not “ordinary people.” But the methods used by the agency and its partners to gain access to cellphone communications risk significant blowback. According to Mikko Hypponen, a security expert at Finland-based F-Secure, criminal hackers and foreign government adversaries could be among the inadvertent beneficiaries of any security vulnerabilities or encryption weaknesses inserted by the NSA into communication systems using data collected by the AURORAGOLD project.
  • Vines, the NSA spokeswoman, told The Intercept that the agency was committed to ensuring an “open, interoperable, and secure global internet.” “NSA deeply values these principles and takes great care to honor them in the performance of its lawful foreign-intelligence mission,” Vines said.
  • Documents published with this article: AURORAGOLD – Project Overview AURORAGOLD Working Group IR.21 – A Technology Warning Mechanism AURORAGOLD – Target Technology Trends Center support to WPMO NSA First-Ever Collect of High-Interest 4G Cellular Signal AURORAGOLD Working Aid WOLFRAMITE Encryption Attack OPULENT PUP Encryption Attack NSA/GCHQ/CSEC Network Tradecraft Advancement Team
  • Paul Merrell on 06 Dec 14
     
    Notice that they've cracked even 4G.
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