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Gary Edwards

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

www.foxnews.com/...ey-and-gops-fear-conservatives

Rush-Limbaugh Obammunism Greta-Van-Sustern Fox-News

shared by Gary Edwards on 19 Dec 11 - No Cached
  • Gary Edwards on 19 Dec 11
     
    Awesome!  Once again Rush takes us to school. excerpt: VAN SUSTEREN: I guess I mean a motive to -- an intentional motive to hurt the country, versus his (Obama) ideology is one that the way you achieve ideals is different values. LIMBAUGH: This is the question. We are living under a number of assumptions about Obama that have been presented to us by elites of both parties. One of the illusions is Obama's brilliant, that he's smarter than anybody else in the room, messianic. We have never had a politician like this in our midst, we were told in 2007, 2008. Nobody like Obama has ever trod our soil. He was going to unify us. The world was going to love us again. It's going to lower the sea levels. I mean, ridiculous stuff. So the question is, is he just dumb? Does he really believe this economic stuff? Does he really believe that taking capital, money out of the private sector and transferring it to government and unions is the way you grow the private sector? Is that the way (INAUDIBLE) Does he really believe that? Is he that ill educated? Is he the product of nothing other than the American education system and whoever influenced him at home when he was young? Or is he an ideologue? Is he a Marxist socialist who has an agenda that's oriented toward cutting the country down to size? I mean, that's the question. For me, the answer to the question is irrelevant. I think that whatever he's doing, why he's doing it, it's obvious he is doing it. He is taking steps, these 10 policies that are injurious to the country, injurious to individuals, targeting as the enemy the people who work in this country, targeting as the enemy that people that pay taxes. This business of this Occupy Wall Street crowd, which is his -- it was created I think on the basis that Romney was going to be the Republican nominee. Romney's Wall Street, so you get Obama's band out there, Occupy Wall Street, protesting. It was set up to oppose Romney -- Wall Street blamed for all these ills in the e
Gary Edwards

Russia Breaking Wall St Oil Price Monopoly | New Eastern Outlook - 0 views

journal-neo.org/...ing-wall-st-oil-price-monopoly

Banksters petro-dollars

shared by Gary Edwards on 09 Jan 16 - No Cached
  • In the period up until the end of the 1980’s world oil prices were determined largely by real daily supply and demand. It was the province of oil buyers and oil sellers. Then Goldman Sachs decided to buy the small Wall Street commodity brokerage, J. Aron in the 1980’s. They had their eye set on transforming how oil is traded in world markets. It was the advent of “paper oil,” oil traded in futures, contracts independent of delivery of physical crude, easier for the large banks to manipulate based on rumors and derivative market skullduggery, as a handful of Wall Street banks dominated oil futures trades and knew just who held what positions, a convenient insider role that is rarely mentioned inn polite company. It was the beginning of transforming oil trading into a casino where Goldman Sachs, Morgan Stanley, JP MorganChase and a few other giant Wall Street banks ran the crap tables.First appeared: http://journal-neo.org/2016/01/09/russia-breaking-wall-st-oil-price-monopoly/
  • Gary Edwards on 09 Jan 16
     
    "Russia has just taken significant steps that will break the present Wall Street oil price monopoly, at least for a huge part of the world oil market. The move is part of a longer-term strategy of decoupling Russia's economy and especially its very significant export of oil, from the US dollar, today the Achilles Heel of the Russian economy. Later in November the Russian Energy Ministry has announced that it will begin test-trading of a new Russian oil benchmark. While this might sound like small beer to many, it's huge. If successful, and there is no reason why it won't be, the Russian crude oil benchmark futures contract traded on Russian exchanges, will price oil in rubles and no longer in US dollars. It is part of a de-dollarization move that Russia, China and a growing number of other countries have quietly begun. The setting of an oil benchmark price is at the heart of the method used by major Wall Street banks to control world oil prices. Oil is the world's largest commodity in dollar terms. Today, the price of Russian crude oil is referenced to what is called the Brent price. The problem is that the Brent field, along with other major North Sea oil fields is in major decline, meaning that Wall Street can use a vanishing benchmark to leverage control over vastly larger oil volumes. The other problem is that the Brent contract is controlled essentially by Wall Street and the derivatives manipulations of banks like Goldman Sachs, Morgan Stanley, JP MorganChase and Citibank. First appeared: http://journal-neo.org/2016/01/09/russia-breaking-wall-st-oil-price-monopoly/"
Paul Merrell

Kerry portrait of Syria rebels at odds with intelligence reports | Reuters - 0 views

www.reuters.com/...a-rebels-idUSBRE98405L20130905

war & peace Syria U.S. Kerry lies

shared by Paul Merrell on 08 Sep 13 - No Cached
  • Secretary of State John Kerry's public assertions that moderate Syrian opposition groups are growing in influence appear to be at odds with estimates by U.S. and European intelligence sources and nongovernmental experts, who say Islamic extremists remain by far the fiercest and best-organized rebel elements. At congressional hearings this week, while making the case for President Barack Obama's plan for limited military action in Syria, Kerry asserted that the armed opposition to Syrian President Bashar al-Assad "has increasingly become more defined by its moderation, more defined by the breadth of its membership, and more defined by its adherence to some, you know, democratic process and to an all-inclusive, minority-protecting constitution."And the opposition is getting stronger by the day," Kerry told the Senate Foreign Relations Committee on Tuesday.U.S. and allied intelligence sources and private experts on the Syrian conflict suggest that assessment is optimistic.
  • Paul Merrell on 08 Sep 13
     
    The linked article points to multiple intelligence reports and disagreeing opinions by experts, both inside government and out.  To top it off, Kerry's stated source of information, the author of a Wall Street Journal article, concealed her ties to a Syrian opposition lobbying group along with her own prior inconsistent statements. See e.g., Daniel Greenfield, The Wall Street Journal's Misleading Report on the "Moderate" Syrian Opposition, Front Page Mag (2 September 2013), http://frontpagemag.com/2013/dgreenfield/the-wall-street-journals-misleading-report-on-the-moderate-syrian-opposition/ (debunking Journal article using its author's own prior statements) Charles C. Johnson, Woman informing Kerry, McCain's opinions on Syria also an advocate for Syrian rebels, The Daily Caller (5 September 2013), http://dailycaller.com/2013/09/05/woman-informing-kerry-mccains-opinions-on-syria-also-an-advocate-for-syrian-rebels/ Michael Calderone, Wall Street Journal Op-Ed Draws Scrutiny Over Writer's Ties To Syrian Rebel Advocacy Group, Huffington Post (6 September 2013), http://www.huffingtonpost.com/2013/09/06/wall-street-journal-syria-elizabeth-obagy_n_3881477.html Max Blumenthal, Shady PR operatives, pro-Israel ties, anti-Castro money: Inside the Syrian opposition's DC spin machine, Mondoweiss (7 September 2013), nofollow
Gary Edwards

Of Bailouts, Bonuses, and Generational Responsibility from The Daily Bail - 0 views

www.google.com/...view

obammunism baby-boomers john-gallo financial-collapse

shared by Gary Edwards on 09 Apr 10 - No Cached
  • When one transfers the learned behavior of selfishness to the world of economics, it is east to see how we got to the world of adjustable rate mortgages, thirty-to-one leverage, credit default swaps, and thirty year hedge fund workers acting as is million dollar paychecks was an otherwise normal entitlement.  If it felt good, it was therefore right – and by all means, don’t rock the boat.  And what we are witnessing today in Washington and Wall Street in response to our economic crisis is nothing but a conscious and willing decision to pass off to the next generation the cost of our mistakes.
  • the fundamental principles of capitalism – namely that bad actors need to fail.
  • First and most foremost, the Congress needs to institute a modernized version of Glass-Stegall and separate commercial banking from investment banking activities. What we have seen in the abolishment Glass-Stegall (please thank Mr. Rubin formerly of Goldman Sachs) is the creation of federally subsidize casinos masquerading as publicly traded financial institutions.  They kept profits from over-leveraged bets and were kind enough to pass their losses onto the taxpayers.  Second, Congress needs to repeal legislation (Gramm-Leach) that allowed financial institutions not only to leverage in ways previously not permitted, but which also granted banks and financial situations exemption from federal gambling laws. Third, and this is where moral outrage hits home to those on Wall Street, we cannot live in a country in which any company is allowed to manipulate the levers of government in such a way as to make itself obscenely rich at the expense of the public.
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  • We saw as we proceeded through life that pursuing one’s self-interest was rewarded just as often than doing what was right, that morals were relative, and that there would be no consequences to bad behavior. It became de rigueur to assume that our parents (and their lawyers) would save us from our bad behavior.
  • no consequences to irresponsible behavior.
  • it is hard to avoid the reality that my generation, the baby boomers who are now approaching retirement, have caused the greatest collapse of the world economy since the 1930s, and in the process damaged this country in ways we are now only beginning to understand.
  • Goldman is only the largest corporate contributor to the Obama administration
  • Looking back more eighteen months after the first signs of distress in our economy appeared, it seems that leaders in Congress and Wall Street have erred in a manner never before witnessed in this nation.  In the process, they have conspired through their collective arrogance, greed, and ignorance to damage the economy of the country (if not the world), make many themselves rich beyond the imaginations of most Americans, and in the process commit the greatest financial rape of the American public in the history of the country.  And if that does resonate, then either you have not been paying attention for the past two years, or you have received your paycheck form Goldman Sachs.
  • Capitalism remains the best economic system on the planet, but when those who have profited handsomely seek to socialize losses caused by their errors, then those in power in Washington have a moral responsibility to demand an accounting.  Our anger comes from the fact that our leaders have failed in their public obligations at the expense of the interests on Wall Street, and in the process created the greatest social divide that this country has seen in the past 40 years.
  • our nation has one of the highest ratios of debt to GDP on the globe
  • Finally, the administration should demand (I know it won’t) that Goldman Sachs return the approximately $13 billion it received in backdoor payments through AIG when AIG received $180 billion in bailout money. That $13 billion belongs to the taxpayers of this country, and the decision to allow Goldman to receive that money perhaps stands as the greatest moral outrage of this entire sordid affair.  
  • he nation will not die; to the contrary, it would become stronger if we permit free markets to work, and allow the next-generation to live unburdened by our mistakes and arrogance.
  • The proposal in question was Ryan's "Roadmap for America's Future," a sweeping plan to stave off the nation's looming economic and fiscal collapse by changing the tax code, overhauling the health care system, and reforming the nation's major entitlement programs. Its debt-reducing claims aren't based on mere fantasy -- the Congressional Budget Office has determined that the plan would boost economic growth while making Medicare and Social Security solvent. And it accomplishes these aims without raising taxes or affecting the benefits of current retirees.
  • There's no doubt where the Treasury will turn for finance. We are about to see the greatest stuffing of banks with government securities the world has ever seen. American banks will be forced to gorge on Treasury securities, and disgorge bank reserves. Where else can the government get the next trillion to spend on things like wars, unemployment benefits, and food stamps?There are a few obvious things to think about here. At the rate of $120 billion a month, it will only take about nine months to blow through over a trillion dollars in free bank reserves. Each Treasury auction will find it more difficult to sell all of the treasury securities, and it will take rising interest rates to coax out even more reserves from the banks. (When you need to borrow over $4 billion a day, even a trillion dollars doesn't last long.)
  • Gary Edwards on 09 Apr 10
     
    Wow!  This is the best response to the financial collapse i have read to date.  Exceptional in clarity, but written with a tone of mixed sorrow and shame.  Mr. Gallow places the blame exactly where it should be placed.  It's a generational thing with one exception Mr. Gallow overlooks - the Obama margin of victory was very much due to the massive turnout and votes of post baby boomer generations.  We boomers may have created and caused the financial collapse and destruction of America, but they were dumb enough to put the decline of capitalism and ordered liberty on marxist steroids. excerpt:  .... this is the first time that I have been so angered by incompetence and greed in government and Wall Street to express publicly my own thoughts.  In simple terms, what has dawned on me is that my generation, the "Baby Boomers" between the ages of 45 and 65, has emerged not as not the most significant or talented generation in our history (as we thought we were), but rather as the most self-absorbed and reckless. Because ours will be the first generation in the history of this country to leave to its successors a nation in worse shape than that which it inherited; put differently, we will be the first generation in this nation to have taken from our parents and stolen from our children. .. it is hard to avoid the reality that my generation, the baby boomers who are now approaching retirement, have caused the greatest collapse of the world economy since the 1930s, and in the process damaged this country in ways we are now only beginning to understand. ... Looking back more eighteen months after the first signs of distress in our economy appeared, it seems that leaders in Congress and Wall Street have erred in a manner never before witnessed in this nation.  In the process, they have conspired through their collective arrogance, greed, and ignorance to damage the economy of the country (if not the world), make many themselves rich beyond the imaginations of mo
Paul Merrell

Voters Say "Yes" to the Republican Who Said "No" to Wall Street | The Nation - 0 views

www.thenation.com/...blican-who-said-no-wall-street

Auction-2014 Libertarians Jones banksters neocons

shared by Paul Merrell on 07 May 14 - No Cached
  • House Speaker John Boehner and his cronies removed North Carolina Congressman Walter Jones from the House Financial Services Committee in late 2012, as part of a purge that removed Republicans who were not all in for Wall Street -- and for Boehner's brand of "service" to the industries that are supposed to be regulated by Congress -- from the one panel with the power to hold bankers and brokers to account. But Jones, who had opposed bank bailouts and favored Wall Street regulation, did not go quietly. He spoke up about the purge and made little secret of his sense that -- though he had split with Boehner on a number of issues -- his biggest "sin" in the eyes of the party leadership was his refusal to bow to the demands of big campaign donors. “This whole place is all about money. Money is more important than policy,” complained Jones, who has in recent years co-sponsored most major pieces of campaign-finance reform legislation in the House -- including a call for a constitutional amendment designed to restore the ability of federal, state and local officials to regulate campaign spending.
  • The congressman's bluntness did not go over well with the masters of the universe on Wall Street. So, this spring, they set out to purge Walter Jones from Congress altogether. They found a consummate DC insider with close ties to the financial-services industry, Taylor Griffin, and filled the challenger's campaign treasury with PAC checks from J.P. Morgan, Wells Fargo and Bank of America, as well as political powerbrokers like former Republican National Committee chairman Haley Barbour and Wayne Berman of the Blackstone Group. It did not stop there. Jones' independence extended far beyond debates over Wall Street bailouts and regulation. The Republican is a social and economic conservative -- make that a social and economic very conservative -- but he has repeatedly broken with the party establishment on issues of war and peace, privacy rights, trade policy and budgets. He even voted against proposals by the darling of Wall Street and the party establishment, Congressman Paul Ryan
  • Bush administration aides and apologists rushed in with public statements and "independent" expenditures to attack Jones for his opposition to wars in Iraq and Afghanistan, and for his refusal to go along with moves that might lead to wars with Iran and other countries. Former Bush White House spokesman Ari Fleischer gave his enthusiastic backing to Griffin, as did former national security adviser Juan Zarate. Sarah Palin, one of the party's most consistent militarists, came in big for Griffin, who hailed her as an "old friend." A neo-conservative group, the Emergency Committee For Israel, spent at least $250,000 on ads that claimed Jones "preaches American decline." What Jones actually said was that, “Lyndon Johnson’s probably rotting in hell right now because of the Vietnam War, and he probably needs to move over for Dick Cheney.” At the same time, the wealthy champions of Ryan's crony-capitalist approach to budgeting were in with big money for TV ads and direct mail from the "Ending Spending Action Fund" -- a super PAC backed by billionaire businessman Joe Ricketts. By a lot of DC measures, Jones should have been doomed.
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  • But the ten-term congressman bet that the voters of eastern North Carolina would stick with him. “I’m not going to sacrifice my integrity for anyone or any party,” he said. “It’s the price you pay. I didn’t come (to Washington) to be a puppet for anyone. And I think the public back in my district, which is the most important, has seen I’m willing to do what I think is right.” It was the right bet. On Tuesday, Republican primary voters in eastern North Carolina decided to purge the Wall Street donors and the special interests. The reelected Walter Jones by a solid 51-45 margin.
Paul Merrell

The American Deep State, Deep Events, and Off-the-Books Financing | Global Research - 0 views

www.globalresearch.ca/...5376904

banksters CIA 9-11 arms-deals opium congtinuity-of-government

shared by Paul Merrell on 07 Apr 14 - No Cached
  • It is alleged that some of the bail money that released Sturgis and the other Watergate burglars was drug money from the CIA asset turned drug trafficker, Manuel Artime, and delivered by Artime’s money-launderer, Ramón Milián Rodríguez. After the Iran-Contra scandal went public, Milián Rodríguez was investigated by a congressional committee – not for Watergate, but because, in support of the Contras, he had managed two Costa Rican seafood companies, Frigorificos and Ocean Hunter, that laundered drug money.6
  • In the 1950s Wall Street was a dominating complex. It included not just banks and other financial institutions but also the oil majors whose cartel arrangements were successfully defended against the U.S. Government by the Wall Street law firm Sullivan and Cromwell, home to the Dulles brothers. The inclusion of Wall Street conforms with Franklin Roosevelt’s observation in 1933 to his friend Col. E.M. House that “The real truth … is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.”18 FDR’s insight is well illustrated by the efficiency with which a group of Wall Street bankers (including Nelson Rockefeller’s grandfather Nelson Aldrich) were able in a highly secret meeting in 1910 to establish the Federal Reserve System – a system which in effect reserved oversight of the nation’s currency supply and of all America’s banks in the not impartial hands of its largest.19 The political clout of the quasi-governmental Federal Reserve Board was clearly demonstrated in 2008, when Fed leadership secured instant support from two successive administrations for public money to rescue the reckless management of Wall Street banks: banks Too Big To Fail, and of course far Too Big To Jail, but not Too Big To Bail.20
  • since its outset, the CIA has always had access to large amounts of off-the books or offshore funds to support its activities. Indeed, the power of the purse has usually worked in an opposite sense, since those in control of deep state offshore funds supporting CIA activities have for decades also funded members of Congress and of the executive – not vice versa. The last six decades provide a coherent and continuous picture of historical direction being provided by this deep state power of the purse, trumping and sometimes reversing the conventional state. Let us resume some of the CIA’s sources of offshore and off-the-books funding for its activities. The CIA’s first covert operation was the use of “over $10 million in captured Axis funds to influence the [Italian] election [of 1948].”25 (The fundraising had begun at the wealthy Brook Club in New York; but Allen Dulles, then still a Wall Street lawyer, persuaded Washington, which at first had preferred a private funding campaign, to authorize the operation through the National Security Council and the CIA.)26 Dulles, together with George Kennan and James Forrestal, then found a way to provide a legal source for off-the-books CIA funding, under the cover of the Marshall Plan. The three men “helped devise a secret codicil [to the Marshall Plan] that gave the CIA the capability to conduct political warfare. It let the agency skim millions of dollars from the plan.”27
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  • The international lawyers of Wall Street did not hide from each other their shared belief that they understood better than Washington the requirements for running the world. As John Foster Dulles wrote in the 1930s to a British colleague, The word “cartel” has here assumed the stigma of a bogeyman which the politicians are constantly attacking. The fact of the matter is that most of these politicians are highly insular and nationalistic and because the political organization of the world has under such influence been so backward, business people who have had to cope realistically with international problems have had to find ways for getting through and around stupid political barriers.21
  • In the 1960s and especially the 1970s America began to import more and more oil from the Middle East. But the negative effect on the U.S. balance of payments was offset by increasing arms and aviation sales to Iran and Saudi Arabia. Contracts with companies like Northrop and especially Lockheed (the builder of the CIA’s U-2) included kickbacks to arms brokers, like Kodama Yoshio in Japan and Adnan Khashoggi in Saudi Arabia, who were also important CIA agents. Lockheed alone later admitted to the Church Committee that it had provided $106 million in commissions to Khashoggi between 1970 and 1975, more than ten times what it had paid to the next most important connection, Kodama.31 These funds were then used by Khashoggi and Kodama to purchase pro-Western influence. But Khashoggi, advised by a team of ex-CIA Americans like Miles Copeland and Edward Moss, distributed cash, and sometimes provided women, not just in Saudi Arabia but around the world – including cash to congressmen and President Nixon in the United States.32 Khashoggi in effect served as a “cutout,” or representative, in a number of operations forbidden to the CIA and the companies he worked with. Lockheed, for one, was conspicuously absent from the list of military contractors who contributed illicitly to Nixon’s 1972 election campaign. But there was no law prohibiting, and nothing else to prevent their official representative, Khashoggi, from cycling $200 million through the bank of Nixon’s friend Bebe Rebozo.33
  • The most dramatic use of off-the-books drug profits to finance foreign armies was seen in the 1960s CIA-led campaign in Laos. There the CIA supplied airstrips and planes to support a 30,000-man drug-financed Hmong army. At one point Laotian CIA station chief Theodore Shackley even called in CIA aircraft in support of a ground battle to seize a huge opium caravan on behalf of the larger Royal Laotian Army.30
  • At the time of the Marshall Plan slush fund in Europe, the CIA also took steps which resulted in drug money to support anti-communist armies in the Far East. In my book American War Machine I tell how the CIA, using former OSS operative Paul Helliwell, created two proprietary firms as infrastructure for a KMT army in Burma, an army which quickly became involved in managing and developing the opium traffic there. The two firms were SEA Supply Inc. in Bangkok and CAT Inc. (later Air America) in Taiwan. Significantly, the CIA split ownership of CAT Inc.’s plane with KMT bankers in Taiwan – this allowed the CIA to deny responsibility for the flights when CAT planes, having delivered arms from Sea Supply to the opium-growing army, then returned to Taiwan with opium for the KMT. Even after the CIA officially severed its connection to the KMT Army in 1953, its proprietary firm Sea Supply Inc. supplied arms for a CIA-led paramilitary force, PARU, that also was financed, at least in part, by the drug traffic.28 Profits from Thailand filtered back, in part through the same Paul Helliwell, as donations to members from both parties in Congress. Thai dictator Phao Sriyanon, a drug trafficker who was then alleged to be the richest man in the world, hired lawyer Paul Helliwell…as a lobbyist in addition to [former OSS chief William] Donovan [who in 1953-55 was US Ambassador to Thailand]. Donovan and Helliwell divided the Congress between them, with Donovan assuming responsibility for the Republicans and Helliwell taking the Democrats.29
  • The power exerted by Khashoggi was not limited to his access to funds and women. By the 1970s, Khashoggi and his aide Edward Moss owned the elite Safari Club in Kenya.34 The exclusive club became the first venue for another and more important Safari Club: an alliance between Saudi and other intelligence agencies that wished to compensate for the CIA’s retrenchment in the wake of President Carter’s election and Senator Church’s post-Watergate reforms.35
  • As former Saudi intelligence chief Prince Turki bin Faisal once told Georgetown University alumni, In 1976, after the Watergate matters took place here, your intelligence community was literally tied up by Congress. It could not do anything. It could not send spies, it could not write reports, and it could not pay money. In order to compensate for that, a group of countries got together in the hope of fighting Communism and established what was called the Safari Club. The Safari Club included France, Egypt, Saudi Arabia, Morocco, and Iran.36 Prince Turki’s candid remarks– “your intelligence community was literally tied up by Congress. …. In order to compensate for that, a group of countries got together … and established what was called the Safari Club.” – made it clear that the Safari Club, operating at the level of the deep state, was expressly created to overcome restraints established by political decisions of the public state in Washington (decisions not only of Congress but also of President Carter).
  • Specifically Khashoggi’s activities involving corruption by sex and money, after they too were somewhat curtailed by Senator Church’s post-Watergate reforms, appear to have been taken up quickly by the Bank of Credit and Commerce International (BCCI), a Muslim-owned bank where Khashoggi’s friend and business partner Kamal Adham, the Saudi intelligence chief and a principal Safari Club member, was a part-owner.37 In the 1980s BCCI, and its allied shipping empire owned by the Pakistani Gokal brothers, supplied financing and infrastructure for the CIA’s (and Saudi Arabia’s) biggest covert operation of the decade, support for the Afghan mujahedin. To quote from a British book excerpted in the Senate BCCI Report: “BCCI’s role in assisting the U.S. to fund the Mujaheddin guerrillas fighting the Soviet occupation is drawing increasing attention. The bank’s role began to surface in the mid-1980′s when stories appeared in the New York Times showing how American security operatives used Oman as a staging post for Arab funds. This was confirmed in the Wall Street Journal of 23 October 1991 which quotes a member of the late General Zia’s cabinet as saying ‘It was Arab money that was pouring through BCCI.’ The Bank which carried the money on from Oman to Pakistan and into Afghanistan was National Bank of Oman, where BCCI owned 29%.”38
  • In 1981 Vice-president Bush and Saudi Prince Bandar, working together, won congressional approval for massive new arms sales of AWACS (airborne warning and control system) aircraft to Saudi Arabia. In the $5.5 billion package, only ten percent covered the cost of the planes. Most of the rest was an initial installment on what was ultimately a $200 billion program for military infrastructure through Saudi Arabia.41 It also supplied a slush fund for secret ops, one administered for over a decade in Washington by Prince Bandar, after he became the Saudi Ambassador (and a close friend of the Bush family, nicknamed “Bandar Bush”). In the words of researcher Scott Armstrong, the fund was “the ultimate government-off-the-books.” Not long after the AWACS sale was approved, Prince Bandar thanked the Reagan administration for the vote by honoring a request by William Casey that he deposit $10 million in a Vatican bank to be used in a campaign against the Italian Communist Party. Implicit in the AWACS deal was a pledge by the Saudis to fund anticommunist guerrilla groups in Afghanistan, Angola, and elsewhere that were supported by the Reagan Administration.42 The Vatican contribution, “for the CIA’s long-time clients, the Christian Democratic Party,” of course continued a CIA tradition dating back to 1948.
  • The activities of the Safari Club were exposed after Iranians in 1979 seized the records of the US Embassy in Tehran. But BCCI support for covert CIA operations, including Iran-Contra, continued until BCCI’s criminality was exposed at the end of the decade. Meanwhile, with the election of Ronald Reagan in 1980, Washington resumed off-budget funding for CIA covert operations under cover of arms contracts to Saudi Arabia. But this was no longer achieved through kickbacks to CIA assets like Khashoggi, after Congress in 1977 made it illegal for American corporations to make payments to foreign officials. Instead arrangements were made for payments to be returned, through either informal agreements or secret codicils in the contracts, by the Saudi Arabian government itself. Two successive arms deals, the AWACS deal of 1981 and the al-Yamamah deal of 1985, considerably escalated the amount of available slush funds.
  • It is reported in two books that the BCCI money flow through the Bank of Oman was handled in part by the international financier Bruce Rappaport, who for a decade, like Khashoggi, kept a former CIA officer on his staff.39 Rappaport’s partner in his Inter Maritime Bank, which interlocked with BCCI, was E.P. Barry, who earlier had been a partner in the Florida money-laundering banks of Paul Helliwell.40
  • After a second proposed major U.S. arms sale met enhanced opposition in Congress in 1985 from the Israeli lobby, Saudi Arabia negotiated instead a multi-billion pound long-term contract with the United Kingdom – the so-called al-Yamamah deal. Once again overpayments for the purchased weapons were siphoned off into a huge slush fund for political payoffs, including “hundreds of millions of pounds to the ex-Saudi ambassador to the US, Prince Bandar bin Sultan.”43 According to Robert Lacey, the payments to Prince Bandar were said to total one billion pounds over more than a decade.44 The money went through a Saudi Embassy account in the Riggs Bank, Washington; according to Trento, the Embassy’s use of the Riggs Bank dated back to the mid-1970s, when, in his words, “the Saudi royal family had taken over intelligence financing for the United States.”45 More accurately, the financing was not for the United States, but for the American deep state.
  • This leads me to the most original and important thing I have to say. I believe that these secret funds from BCCI and Saudi arms deals – first Khashoggi’s from Lockheed and then Prince Bandar’s from the AWACS and al-Yamamah deals – are the common denominator in all of the major structural deep events (SDEs) that have afflicted America since the supranational Safari Club was created in l976. I am referring specifically to 1) the covert US intervention in Afghanistan (which started about 1978 as a Safari Club intervention, more than a year before the Russian invasion), 2) the 1980 October Surprise, which together with an increase in Saudi oil prices helped assure Reagan’s election and thus give us the Reagan Revolution, 3) Iran-Contra in 1984-86, 4) and – last but by no means least – 9/11. That is why I believe it is important to analyze these events at the level of the supranational deep state. Let me just cite a few details.
  • 1) the 1980 October Surprise. According to Robert Parry, Alexandre de Marenches, the principal founder of the Safari Club, arranged for William Casey (a fellow Knight of Malta) to meet with Iranian and Israeli representatives in Paris in July and October 1980, where Casey promised delivery to Iran of needed U.S. armaments, in exchange for a delay in the return of the U.S. hostages in Iran until Reagan was in power. Parry suspects a role of BCCI in both the funding of payoffs for the secret deal and the subsequent flow of Israeli armaments to Iran.46 In addition, John Cooley considers de Marenches to be “the Safari Club player who probably did most to draw the US into the Afghan adventure.”47 2) the Iran-Contra scandal (including the funding of the Contras, the illegal Iran arms sales, and support for the Afghan mujahideen There were two stages to Iran-Contra. For twelve months in 1984-85, after meeting with Casey, King Fahd of Saudi Arabia, in the spirit of the AWACS deal, supported the Nicaraguan Contras via Prince Bandar through a BCCI bank account in Miami. But in April 1985, after the second proposed arms sale fell through, McFarlane, fearing AIPAC opposition, terminated this direct Saudi role. Then Khashoggi, with the help of Miles Copeland, devised a new scheme in which Iranian arms sales involving Israel would fund the contras. The first stage of Iran-Contra was handled by Prince Bandar through a BCCI account in Miami; the second channel was handled by Khashoggi through a different BCCI account in Montecarlo. The Kerry-Brown Senate Report on BCCI also transmitted allegations from a Palestinian-American businessman, Sam Bamieh, that Khashoggi’s funds from BCCI for arms sales to Iran came ultimately from King Fahd of Saudi Arabia, who “was hoping to gain favor with Ayatollah Ruhollah Khomeini.”48
  • 3) 9/11 When the two previously noted alleged hijackers or designated culprits, al-Mihdhar and al-Hazmi, arrived in San Diego, a Saudi named Omar al-Bayoumi both housed them and opened bank accounts for them. Soon afterwards Bayoumi’s wife began receiving monthly payments from a Riggs bank account held by Prince Bandar’s wife, Princess Haifa bint Faisal.49 In addition, Princess Haifa sent regular monthly payments of between $2,000 and $3,500 to the wife of Osama Basnan, believed by various investigators to be a spy for the Saudi government. In all, “between 1998 and 2002, up to US $73,000 in cashier cheques was funneled by Bandar’s wife Haifa … – to two Californian families known to have bankrolled al-Midhar and al-Hazmi.”50 Although these sums in themselves are not large, they may have been part of a more general pattern. Author Paul Sperry claims there was possible Saudi government contact with at least four other of the alleged hijackers in Virginia and Florida. For example, “9/11 ringleader Mohamed Atta and other hijackers visited s home owned by Esam Ghazzawi, a Saudi adviser to the nephew of King Fahd.”51
  • But it is wrong to think of Bandar’s accounts in the Riggs Bank as uniquely Saudi. Recall that Prince Bandar’s payments were said to have included “a suitcase containing more than $10 million” that went to a Vatican priest for the CIA’s long-time clients, the Christian Democratic Party.52 In 2004, the Wall Street Journal reported that the Riggs Bank, which was by then under investigation by the Justice Department for money laundering, “has had a longstanding relationship with the Central Intelligence Agency, according to people familiar with Riggs operations and U.S. government officials.”53 Meanwhile President Obiang of Equatorial Guinea “siphoned millions from his country’s treasury with the help of Riggs Bank in Washington, D.C.”54 For this a Riggs account executive, Simon Kareri, was indicted. But Obiang enjoyed State Department approval for a contract with the private U.S. military firm M.P.R.I., with an eye to defending offshore oil platforms owned by ExxonMobil, Marathon, and Hess.55 Behind the CIA relationship with the Riggs Bank was the role played by the bank’s overseas clients in protecting U.S. investments, and particularly (in the case of Saudi Arabia and Equatorial Guinea), the nation’s biggest oil companies.
  • The issue of Saudi Embassy funding of at least two (and possibly more) of the alleged 9/11 hijackers (or designated culprits) is so sensitive that, in the 800-page Joint Congressional Inquiry Report on 9/11, the entire 28-page section dealing with Saudi financing was very heavily redacted.56 A similar censorship occurred with the 9/11 Commission Report: According to Philip Shenon, several staff members felt strongly that they had demonstrated a close Saudi government connection to the hijackers, but a senior staff member purged almost all of the most serious allegations against the Saudi government, and moved the explosive supporting evidence to the report’s footnotes.57 It is probable that this cover-up was not designed for the protection of the Saudi government itself, so much as of the supranational deep state connection described in this essay, a milieu where American, Saudi, and Israeli elements all interact covertly. One sign of this is that Prince Bandar himself, sensitive to the anti-Saudi sentiment that 9/11 caused, has been among those calling for the U.S. government to make the redacted 28 pages public.58
  • This limited exposure of the nefarious use of funds generated from Saudi arms contracts has not created a desire in Washington to limit these contracts. On the contrary, in 2010, the second year of the Obama administration, The Defense Department … notified Congress that it wants to sell $60 billion worth of advanced aircraft and weapons to Saudi Arabia. The proposed sale, which includes helicopters, fighter jets, radar equipment and satellite-guided bombs, would be the largest arms deal to another country in U.S. history if the sale goes through and all purchases are made.59 The sale did go through; only a few congressmen objected.60 The deep state, it would appear, is alive and well, and impervious to exposures of it. It is clear that for some decades the bottom-upwards processes of democracy have been increasingly supplanted by the top-downwards processes of the deep state.
  • But the deeper strain in history, I would like to believe, is in the opposite direction: the ultimate diminution of violent top-down forces by the bottom-up forces of an increasingly integrated civil society.61 In the last months we have had Wikileaks, then Edward Snowden, and now the fight between the CIA and its long-time champion in Congress, Dianne Feinstein. It may be time to see a systemic correction, much as we did after Daniel Ellsberg’s release of the Pentagon Papers, which was followed by Watergate and the Church Committee reforms. I believe that to achieve this correction there must be a better understanding of deep events and of the deep state. Ultimately, however, whether we see a correction or not will depend, at least in part, on how much people care.
Gary Edwards

The Daily Bell - Occupy Wall Street Demands Global UN Tax and Worldwide G20 Protest - 0 views

www.thedailybell.com/...-Tax-and-Worldwide-G20-Protest

Banksters OWS

shared by Gary Edwards on 25 Oct 11 - No Cached
  • Gary Edwards on 25 Oct 11
     
    Occupy's busting out on a new path ... So Adbusters is asking people all around the world to march on Oct. 29. "We want to send a clear message that we the people want to slow down this global casino." And Adbusters does have one specific demand, a 1 percent tax on financial-sector transactions (perhaps stocks, bonds, foreign-currency trades and derivatives). Some form of that idea, known as the "Robin Hood" tax, has been around for a while and might actually fly. - Jerry Large/Seattle Times Dominant Social Theme: We want justice for the world and the UN will give it to us. Free-Market Analysis: Kalle Lasn, founder of Adbusters magazine, based in Vancouver, B.C. - the magazine that issued the call for the initial Occupy Wall Street protests - has called on people to protest the upcoming G20 while demanding a one-percent tax on financial transactions. The revenue raised would be enormous and the lingering question is where this incredible revenue stream would be directed. The answer is obvious to those who follow what we call "directed history." The intention is likely to fund the UN as part of a final push to rationalize and perfect the initial stages of true world government. As we have written before, the movement toward world government is happening very quickly now. The ramifications are enormous and people who write off these protests as spontaneous and short-lived are not grasping what is taking place, in our humble opinion. The financial sales tax has been around for a very long time but has found its most recent voice in a column by Jerry Large of the Seattle Times. He recently gained an exclusive interview with Kalle Lasn, who sounds as if he hopes that a large protest on Oct 29th will mark the beginning of a push for such a tax. What's going on is pure one-worldism, an OWS ideology that is gradually revealing itself in dribs and drabs. It is one reason that that the OWS leaders have made no specific demands. They have hoped to create a momentu
Paul Merrell

A Choice For Corporate America: Are You With America Or The Cayman Islands - 0 views

www.informationclearinghouse.info/article33901.htm

banksters globalists tax havens offshoring

shared by Paul Merrell on 10 Feb 13 - No Cached
  • When the greed, recklessness, and illegal behavior on Wall Street drove this country into the deepest recession since the 1930s, the largest financial institutions in the United States took every advantage of being American. They just loved their country - and the willingness of the American people to provide them with the largest bailout in world history. In 2008, Congress approved a $700 billion gift to Wall Street. Another $16 trillion in virtually zero interest loans and other financial assistance came from the Federal Reserve. America. What a great country. But just two years later, as soon as these giant financial institutions started making record-breaking profits again, they suddenly lost their love for their native country. At a time when the nation was suffering from a huge deficit, largely created by the recession that Wall Street caused, the major financial institutions did everything they could to avoid paying American taxes by establishing shell corporations in the Cayman Islands and other tax havens.
  • In 2010, Bank of America set up more than 200 subsidiaries in the Cayman Islands (which has a corporate tax rate of 0.0 percent) to avoid paying U.S. taxes. It worked. Not only did Bank of America pay nothing in federal income taxes, but it received a rebate from the IRS worth $1.9 billion that year. They are not alone. In 2010, JP Morgan Chase operated 83 subsidiaries incorporated in offshore tax havens to avoid paying some $4.9 billion in U.S. taxes. That same year Goldman Sachs operated 39 subsidiaries in offshore tax havens to avoid an estimated $3.3 billion in U.S. taxes. Citigroup has paid no federal income taxes for the last four years after receiving a total of $2.5 trillion in financial assistance from the Federal Reserve during the financial crisis. On and on it goes. Wall Street banks and large companies love America when they need corporate welfare. But when it comes to paying American taxes or American wages, they want nothing to do with this country. That has got to change.
  • Offshore tax abuse is not just limited to Wall Street. Each and every year corporations and the wealthy are avoiding more than $100 billion in U.S. taxes by sheltering their income offshore. Pharmaceutical companies like Eli Lilly and Pfizer have fought to make it illegal for the American people to buy cheaper prescription drugs from Canada and Europe. But, during tax season, Eli Lilly and Pfizer shift drug patents and profits to the Netherlands and other offshore tax havens to avoid paying U.S. taxes.
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  • Apple wants all of the advantages of being an American company, but it doesn't want to pay American taxes or American wages. It creates the iPad, the iPhone, the iPod, and iTunes in the United States, but manufactures most of its products in China so it doesn't have to pay American wages. Then it shifts most of its profits to Ireland, Luxembourg, the British Virgin Islands and other tax havens to avoid paying U.S. taxes. Without such maneuvers, Apple's federal tax bill in the United States would have been $2.4 billion higher in 2011.
  • This tax avoidance does not just reduce the revenue that we need to pay for education, healthcare, roads, and environmental protection, it is also costing us millions of American jobs. Today, companies are using these same tax schemes to lower their tax bills by shipping American jobs and factories abroad. These tax breaks have contributed to the loss of more than 5 million U.S. manufacturing jobs and the closure of more than 56,000 factories since 2000. That also has got to change. At a time when we have a $16.5 trillion national debt; at a time when roughly one-quarter of the largest corporations in America are paying no federal income taxes; and at a time when corporate profits are at an all-time high; it is past time for Wall Street and corporate America to pay their fair share. That's what the Corporate Tax Dodging Prevention Act (S.250) that I have introduced with Rep. Jan Schakowsky (D-Ill.) is all about.
  • We have a much better idea. Wall Street and the largest corporations in the country must begin to pay their fair share of taxes. They must not be able to continue hiding their profits offshore and shipping American jobs overseas to avoid taxes. Here's the simple truth. You can't be an American company only when you want a massive bailout from the American people. You have also got to be an American company, and pay your fair share of taxes, as we struggle with the deficit and adequate funding for the needs of the American people. If Wall Street and corporate America don't agree, the next time they need a bailout let them go to the Cayman Islands, let them go to Bermuda, let them go to the Bahamas and let them ask those countries for corporate welfare.
  • Paul Merrell on 10 Feb 13
     
    Gotta love Bernie Sanders.
Gary Edwards

Tomgram: Nomi Prins, Goldmanizing Donald Trump | TomDispatch - 0 views

www.tomdispatch.com/...s%2C_goldmanizing_donald_trump

Goldman-Sachs Banksters

shared by Gary Edwards on 05 Feb 17 - No Cached
  • Gary Edwards on 05 Feb 17
     
    "The Goldman Sachs Effect How a Bank Conquered Washington By Nomi Prins This is a MUST READ document. Yeah, and it should scare the crap out of all of us. .............................................. Irony isn't a concept with which President Donald J. Trump is familiar. In his Inaugural Address, having nominated the wealthiest cabinet in American history, he proclaimed, "For too long, a small group in our nation's capital has reaped the rewards of government while the people have borne the cost. Washington flourished -- but the people did not share in its wealth."  Under Trump, an even smaller group will flourish -- in particular, a cadre of former Goldman Sachs executives. To put the matter bluntly, two of them (along with the Federal Reserve) are likely to control our economy and financial system in the years to come. Infusing Washington with Goldman alums isn't exactly an original idea. Three of the last four presidents, including The Donald, have handed the wheel of the U.S. economy to ex-Goldmanites. But in true Trumpian style, after attacking Hillary Clinton for her Goldman ties, he wasn't satisfied to do just that.  He had to do it bigger and better.  Unlike Bill Clinton and George W. Bush, just a sole Goldman figure lording it over economic policy wasn't enough for him. Only two would do. The Great Vampire Squid Revisited Whether you voted for or against Donald Trump, whether you're gearing up for the revolution or waiting for his next tweet to drop, rest assured that, in the years to come, the ideology that matters most won't be that of the "forgotten" Americans of his Inaugural Address. It will be that of Goldman Sachs and it will dominate the domestic economy and, by extension, the global one. At the dawn of the twentieth century, when President Teddy Roosevelt governed the country on a platform of trust busting aimed at reducing corporate power, even he could not bring himself to bust up the banks.  That was a mistake
Gary Edwards

EconoMonitor : Great Leap Forward » BERNANKE'S OBFUSCATION CONTINUES: The Fed... - 0 views

www.economonitor.com/...illion-bail-out-of-wall-street

Banksters Federal-Reserve-Bankster-Cartel Levy-Economics-Institute banksters

shared by Gary Edwards on 16 Dec 11 - No Cached
  • Gary Edwards on 16 Dec 11
     
    Excellent summary of how deep the hole the Federal Reserve has dug for Americans.  Walks us from the 2008 crisis to the Levy Economics Institute $29.616 Trillion Bankster Bailout.  Incredibly well written commentary. excerpt: Bernanke argues we should look only at the lending at a peak instant of time. Think about it this way. A half dozen drunken sailors are at the bar, and the bartender refills their shot glasses with whiskey each time a drink is taken. At any instant, the bar-keep has committed only six ounces of booze. That is a useful measure of whiskey outstanding. But it is not useful for telling us how much the drunks drank. Bernanke would like us to believe that if the Fed newly lent a trillion bucks every day for 3 years to all our drunken bankers that we should total that as only a trillion greenbacks committed. Yes, that provides some useful information but it does not really measure the necessary intervention by the Fed into financial markets to save Wall Street. And that leads to the final way to measure the Fed's commitments to propping up our drunks on Wall Street: add up every single damned loan, guarantee and asset purchase the Fed made to benefit banks, banksters, real Housewives on Wall Street, fraudsters, and their cousins, aunts and uncles. This gives us the cumulative Fed commitments. The final important consideration is to separate "normal" Fed actions from the "extraordinary" or "emergency" interventions undertaken because of the crisis. That is easier than it sounds. After the crisis began, the Fed created a large alphabet soup of special facilities designed to deal with the crisis. We can thus take each facility and calculate the three measures of the Fed's commitments for each, then sum up for all the special facilities. And that is precisely what Nicola Matthews and James Felkerson have done. They are PhD students at the University of Missouri-Kansas City, working on a Ford Foundation grant under my direction, titl
Gary Edwards

The Big Wall Street Banks Are Already Trying To Buy The 2012 Election - 0 views

endoftheamericandream.com/...rying-to-buy-the-2012-election

Banksters Campaign-finance Political-Corruption Crony-Capitalism

shared by Gary Edwards on 19 Oct 11 - No Cached
  • Gary Edwards on 19 Oct 11
     
    Wall Street Banksters bought Obama in 2008, providing over 1/3 of his total financial contributions.  The Banksters are at it again, but this time they are forsaking the democrat-socialist establishment  Obama for the repubican establishment candidate Romney.    The following are the overall donation numbers from employees of the big Wall Street banks and their wives, compiled by the Center for Responsive Politics: Mitt Romney: $813,300 Barack Obama: $198,874 Tim Pawlenty: $101,515 Rick Perry: $58,900 Jon Huntsman: $28,250 Ron Paul: $13,104 Herman Cain: $2,715 Michelle Bachmann: $1,500 Newt Gingrich: $1,250 These numbers paint a very disturbing picture.  Even though Romney's poll numbers are in the mid to low 20s most of the time, employees of the big Wall Street banks gave him $813,300 during the first 9 months of this year and they only gave $105,719 to the rest of the Republican candidates combined.
Paul Merrell

Wall Street's Win on Swaps Rule Shows Washington Resurgence - Bloomberg - 0 views

www.bloomberg.com/...-resurgence-in-washington.html

banksters economy legislation Dodd-Frank Lincoln-Amendment derivatives

shared by Paul Merrell on 12 Dec 14 - No Cached
  • Wall Street is re-emerging as a force in Washington as it closes in on one of its biggest wins against regulation since the financial crisis. With must-pass spending legislation making its way through Congress this week, banks seized on an opportunity to attach a measure that would halt a planned restriction on derivatives trading they had long opposed. The industry’s lobbying extended to the highest levels of finance with JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon pressing lawmakers to support the change.
  • Wall Street’s success, after four years of struggling to persuade Congress to ease the Dodd-Frank Act, is a precursor to more fights next year against some of the law’s hallmarks: the consumer protection bureau and stiff oversight of big financial companies whose failure could threaten the financial system. “The Wall Street interests -- the big banks -- they’re back,” said Richard Durbin of Illinois, the Senate’s second-ranking Democrat. The $1.1 trillion spending measure cleared its biggest hurdle when the House passed it last night and sent it to the Senate for consideration today. Banks had modest expectations even under the new Republican Congress that will convene in January, a group they presume will be more receptive to their agenda. Their surprising success this week may embolden lenders to seek deeper regulatory changes as Republicans take control of the Senate from Democrats.
  • The derivatives provision would let JPMorgan, Citigroup Inc. (C), Bank of America Corp. and other banks trade almost all swaps in divisions that have government backstops like deposit insurance. It would repeal a requirement that some of the trades be pushed out to separate units, which Wall Street argued would drive up costs for clients and increase risk in the financial system by moving the trades to firms less regulated than banks. Lawmakers put the requirement in Dodd-Frank, which was passed in 2010 after banks’ losses on souring derivative trades spurred a taxpayer bailout of Wall Street in 2008. The inclusion of the Dodd-Frank changes in the spending bill spurred a week-long opposition campaign by Senator Elizabeth Warren of Massachusetts, House Minority Leader Nancy Pelosi and other Democratic lawmakers. Their news conferences, TV interviews, emergency meetings on Capitol Hill and pressure from allies including the AFL-CIO labor federation prompted President Barack Obama to call lawmakers urging them to vote for the broader bill to avoid a government shutdown.
Paul Merrell

Eric Cantor's Opponent Beat Him By Calling Out GOP Corruption | - 0 views

www.republicreport.org/...dave-brat-cantor

U.S. banksters Brat Cantor corruption

shared by Paul Merrell on 13 Jun 14 - No Cached
  • “All of the investment banks, up in New York and D.C., they should have gone to jail.” That isn’t a quote from an Occupy Wall Street protester or Senator Elizabeth Warren. That’s a common campaign slogan repeated by Dave Brat, the Virginia college professor who scored one of the biggest political upsets in over a century by defeating Majority Leader Eric Cantor in the Republican primary last night. The national media is buzzing about Brat’s victory, but for all of the wrong reasons.
  • Did the Tea Party swoop in and help Brat, as many in the Democratic Party are suggesting? Actually, the Wall Street Journal reports no major Tea Party or anti-establishment GOP group spent funds to defeat Cantor. Did Cantor, the only Jewish Republican in Congress, lose because of his religion, as some have suggested? There’s no evidence so far of anti-Semitism during the campaign. Was Cantor caught flatfooted? Nope; Cantor’s campaign spent close to $1 million on the race and several outside advocacy groups, including the National Rifle Association, the National Realtors Association and the American Chemistry Council (a chemical industry lobbying association) came in and poured money into the district to defeat Brat. The New York Times claims that Brat focused his campaign primarily on immigration reform. Brat certainly made immigration a visible topic in his race, but Republic Report listened to several hours of Brat stump speeches and radio appearances, and that issue came up far less than what Brat called the main problem in government: corruption and cronyism. Brat told Internet radio host Flint Engelman that the “number one plank” in his campaign is “free markets.” Brat went on to explain, “Eric Cantor and the Republican leadership do not know what a free market is at all, and the clearest evidence of that is the financial crisis … When I say free markets, I mean no favoritism to K Street lobbyists.” Banks like Goldman Sachs were not fined for their role in the financial crisis — rather, they were rewarded with bailouts, Brat has said.
  • rat, who has identified with maverick GOP lawmakers like Representative Justin Amash of Michigan, spent much of the campaign slamming both parties for being in the pocket of “Wall Street crooks” and D.C. insiders. The folks who caused the financial crisis, Brat says, “went onto Obama’s rolodex, the Republican leadership, Eric’s rolodex.” During several campaign appearances, Brat says what upset him the most about Cantor was his role in gutting the last attempt at congressional ethics reform. “If you want to find out the smoking gun in this campaign,” Brat told Engelman, “just go Google and type the STOCK Act and CNN and Eric Cantor.” (On Twitter, Brat has praised the conservative author Peter Schweizer, whose work on congressional corruption forced lawmakers into action on the STOCK Act.) The STOCK Act, a bill to crack down on insider trading, was significantly watered down by Cantor in early 2012. The lawmaker took out provisions that would have forced Wall Street “political intelligence” firms to register as traditional lobbyists would, and removed a section of the bill to empower prosecutors to go after public officials who illegally trade on insider knowledge. And Brat may be right to charge that Cantor’s moves on the STOCK Act were motivated by self interest. Cantor played a leading role in blocking legislation to fix the foreclosure crisis while his wife and his stock portfolio were deeply invested in mortgage banks.
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  • Most self-described Tea Party Republicans, including Rand Paul and Ted Cruz, have railed against Washington in a general sense without calling out the powerful – often Republican-leaning — groups that wield the most power. Not Brat. “Eric is running on Chamber of Commerce and Business Roundtable principles,” Brat told a town hall audience, later clarifying that he meant the U.S. Chamber of Commerce, the largest lobbying trade group in the country. He also called out the American Chemistry Council for funding ads in his race with Cantor, telling a radio host that his opponent had asked his “crony capitalist friends to run more ads.” Brat repeats his mantra: “I’m not against business. I’m against big business in bed with big government.” Indeed, Cantor has been a close ally to top lobbyists and the financial industry. “Many lobbyists on K Street whose clients include major financial institutions consider Cantor a go to member in leadership on policy debates, including overhauling the mortgage finance market, extending the government backstop for terrorism insurance, how Wall Street should be taxed and flood insurance,” noted Politico following Cantor’s loss last night. In 2011, Cantor was caught on video promising a group of commodity speculators that he would roll back regulations on their industry. 
  • There are many lessons to be learned from the Cantor-Brat race. For one, it’s worth reflecting on the fact that not only did Cantor easily out raise and outspend Brat by over $5 million to around $200,000 in campaign funds, but burned through a significant amount on lavish travel and entertainment instead of election advocacy. Federal Election Commission records show Cantor’s PAC spent at least $168,637 on steakhouses, $116,668 on luxury hotels (including a $17,903 charge to the Beverly Hills Hotel & Bungalows) and nearly a quarter million on airfare (with about $140,000 in chartered flights) — just in the last year and a half! But on the policy issues and political ramifications of this race, it’s not easy to box Brat into a neat caricature of an anti-immigration zealot or Tea Party demagogue, or, in TIME’s hasty reporting, a “shopworn conservative boilerplate.” If Brat ascends to Congress, which is quite likely given the Republican-leaning district that he’ll run in as the GOP nominee, he may actually continue taking on powerful elites in Washington.  
  • Paul Merrell on 13 Jun 14
     
    The Cantor defeat was not a Tea Party upset victory as claimed by MSM, according to this article. Instead, Brat's stump speeches were about crony capitalism, bankster corruption of Congress, and libertarian principles. So if this article is correct, then MSM would rather claim that Cantor was a victim of the Tea Party than acknowledge the issues that Brat actually raised, Congressional corruption and big government/big corporation cronyism.  Very interesting food for thought.
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.  
Paul Merrell

Is NSA Surveillance Mastermind Keith Alexander Selling US Secrets to Wall Street? | VIC... - 0 views

www.vice.com/...-us-secrets-to-wall-street-630

surveillance state NSA Alexander revolving-door

shared by Paul Merrell on 02 Jul 14 - No Cached
  • Perhaps you already assume that there's some kind of twisted marriage between Wall Street megabanks and the US global surveillance regime. Why wouldn't there be? But not even a total cynic could have anticipated spymaster Keith Alexander cashing in this hard, this fast. As Bloomberg recently reported, the former National Security Agency chief, who resigned in March at the age of 62, quickly offered his cyber-security expertise at the eye-popping price of $1 million per month to an assortment of shady business lobbies. And now at least one member of Congress is probing this most delightfully dystopian of arrangements, raising the possibility that Alexander will be shamed out of the practice, if nothing else. “Disclosing or misusing classified information for profit is, as Mr. Alexander well knows, a felony. I question how Mr. Alexander can provide any of the services he is offering unless he discloses or misuses classified information, including extremely sensitive sources and methods,” Florida Democratic Rep. Alan Grayson wrote one of the business groups, the Security Industries and Financial Markets Association (SIFMA), which holds it down for Wall Street in Washington. “Without the classified information that he acquired in his former position, he literally would have nothing to offer to you.”
  • In an interview Monday, Grayson was even more strident in his criticism. "Frankly, what the general is doing is beginning to resemble an extortion racket," he told me. "This is a man who basically lied for a living, and he continues to do that." To be clear, what's uniquely outrageous about Alexander, who has apparently lowered his asking price to $600,000, is not that he is a former US official dangling his alleged expertise and the allure of privileged access to government officials before Wall Street. Former Secretary of State Hillary Clinton, who served under Barack Obama and is the odds-on favorite to succeed him, does this all the time, usually at a rate of about $250,000 a pop. (Indeed, one might argue that the very fact she has managed to do so while enjoying a stellar national reputation is what signaled to Alexander he might as well dive headlong through the revolving door.) But the former NSA head presumably knows things about sophisticated intelligence-gathering practices that very, very few people on Earth have been privy to—information that could be useful in the private sector, which has a tendency to collude with the military in ways that made former President and World War II General Dwight Eisenhower very sad.
  • "What could he possibly have that's worth $1 million a month other than classified information?" wonders Melanie Sloan, founder of Citizens for Responsibility and Ethics in Washington (CREW), a good government group. "That's more than former presidents make." Indeed, even former President Bill Clinton, whose corruption since leaving office is by now the stuff of legend, doesn't have the gall to ask for that much per gig. There's a sort of "fuck it!" attitude to what Alexander is doing, seemingly kicking sand in the face of everyone angry at his surveillance regime by getting paid to reflect on the experience of assembling it. More ominously, there's the prospect that Alexander, whether deliberately or otherwise, may have left behind vulnerabilities while running the NSA so as to put himself in prime position to effectively hold the banks hostage now. Certainly, there have been reports suggesting the agency was aware of some vulnerabilities it either could or did not address.   "What is especially troubling is he might actually be worth it," says former North Carolina Democratic Congressman Brad Miller, who worked extensively on financial regulation and Wall Street reform in Congress. "He's obviously not a computer geek. Some of the things that might have seemed paranoid a few years ago now seem more than plausible given what we've already learned the NSA has been doing."
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  • In an email, former New York Times reporter and Goldman Sachs regulatory guru Stephen Labaton—who is currently president of communications and influence powerhouse RLM Finsbury and apparently fielding the General's media inquiries—dismissed Grayson's critique and Miller's concerns. "The letter is ludicrous," he wrote me, before adding about Miller, "The congressman’s kidding, right? Will he [Alexander] next be tied to the Kennedy assassination?" But as Marcy Wheeler points out, given that the former NSA boss has spent the last year hyping the incredible risk of catastrophic cyber-attack, as well as the alleged damage done by Edward Snowden (an assessment his successor does not seem to share), it's fair to ask if his consultancy is essentially a scam. That the victims are, for now, Wall Street bankers—some of the least sympathetic human beings around—is a sweet bit of irony. But it doesn't change the bigger picture: In this age of total surveillance and unchecked financial power, the frontiers of corruption never seem to stop expanding.
Paul Merrell

Occupy Hillary Clinton's Wall Street Speeches. What Did She Tell the Banks? | Global Re... - 0 views

www.globalresearch.ca/...5511198

Auction 2016 Hillary bankster-speeches transparency

shared by Paul Merrell on 03 Mar 16 - No Cached
  • Hillary Clinton refuses to make public the transcripts of her speeches to big banks, three of which were worth a total of $675,000 to Goldman Sachs. She says she would release the transcripts “if everybody does it, and that includes Republicans.” After all, she complained, “Why is there one standard for me, and not for everybody else?” As the New York Times editorial board pointed out, “The only different standard here is the one Mrs. Clinton set for herself, by personally earning $11 million in 2014 and the first quarter of 2015 for 51 speeches to banks and other groups and industries.” Hillary is not running in the primaries against Republicans, who, the Times noted, “make no bones about their commitment to Wall Street deregulation and tax cuts for the wealthiest Americans.”
  • She is running against Bernie Sanders, “a decades-long critic of Wall Street excess who is hardly a hot ticket on the industry speaking circuit,” according to the Times. Why do voters need to know what Hillary told the banks? Because it was Wall Street that was responsible for the 2008 recession, making life worse for most Americans. We need to know what, if anything, she promised these behemoths. I Scratch Your Back, You Scratch Mine Hillary has several super PACs, which have recently donated $25 million to her campaign, $15 million of which came from Wall Street. Big banks and large contributors don’t give their money away for nothing. They expect that their interests will be well served by those to whom they donate. Hillary recently attended an expensive fundraiser at Franklin Square Capital, a hedge fund that gives big bucks to the fracking industry. Two weeks later, Hillary’s campaign announced her continuing support for the production of natural gas, which comes from fracking. Bernie opposes fracking. He said, “Just as I believe you can’t take on Wall Street while taking their money, I don’t believe you can take on climate change effectively while taking money from those who would profit off the destruction of the planet.”
Paul Merrell

Why Aren't Big Bankers in Jail? - FAIR: Fairness & Accuracy In Reporting - 0 views

fair.org/...why-arent-big-bankers-in-jail

financial-collapse criminal-immunity too-big-to-jail too-big-to-fail banksters

shared by Paul Merrell on 05 Jan 14 - No Cached
  • The man in charge of a bank that engaged in massive mortgage fraud chatted with a corporate media host (CNBC Squawk on the Street, 7/12/13) about the fact that virtually none of those who enriched themselves while eviscerating the life savings of many blameless people, derailing the US economy along the way, have faced criminal prosecution
  • Granted, Cramer is no one's idea of a serious interrogator of the financial system (FAIR Blog, 3/13/09). But much journalism on the question of criminal prosecution of industry leaders amounts to similar apologia. While there have been substantive inquiries into the wrongdoing of investment banks and auditors, those calling for jail time are often dismissed as irrational, driven by "blood lust" (Washington Post, 9/12/13), "anger" (Chicago Tribune, 11/30/13) or "vengeance" (Washington Post, 11/18/13).
  • What the soft-headed among us don't recognize, evidently, is that "blowing up your company isn't necessarily a crime," as the Christian Science Monitor (10/11/11) put it. "America doesn't criminalize bad business decisions," wrote the Washington Post (9/12/13). Or, from Businessweek (5/12/11): "In the American legal system, people who merely act badly or unwisely do not do time." But some have no trouble pointing to actual crimes in the crisis. "Issuing a mortgage that is known to be based on false information and then selling it in the secondary market is fraud and punishable by time in jail," economist Dean Baker (Beat the Press, 9/13/13) noted, citing the Financial Crisis Inquiry Commission. "Packaging loans into mortgage backed securities that an investment bank has good reason to believe are based on false information is also fraud and punishable by time in jail." Former federal bailout inspector Neil Barofsky agrees we're not talking about a perhaps lamentable but inactionable "culture." Asked by NPR (7/26/13) about the no-actual-crime "narrative," Barofsky answered: "No. I think that there was a tremendous amount of fraud."
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  • We're told such calls come from the margins: That no "financial industry types" have been jailed is "a recurring theme among Occupy Wall Street protesters and some Democratic politicians" (Christian Science Monitor, 10/11/11) or "the Occupy Wall Street crowd" (New York Times, 3/1/13). People who believe bankers should go to jail are deflecting blame—from the people: "The real scandal," explained the Washington Post's Charles Lane ("Banks Aren't the Bad Guys," 11/18/13), was "Americans' shared, erroneous belief in ever-rising housing prices and corresponding mania to profit from them." And maybe they need to move on: "This all happened a really long time ago. What-ever happened to the statute of limitations?" the Washington Post (11/19/13) asked itself in a recent Q&A.
  • Certainly the problem extends beyond the actions of a few bigwigs. But people who say jailing industry executives should be the sole response exist only in pundits' minds. William Black, who advocates prison for industry executives (Moyers & Company, 9/17/13), pointed to structural reasons for a lack of prosecutions, including regulatory agencies' abandonment of key functions since the 1980s' Savings & Loan scandal. "When the regulators ceased making criminal referrals—which had nothing to with an end of crime, obviously; it just had to do with a refusal to be involved in the prosecutorial effort anymore—they doomed us to a disaster where we would not succeed." Others say revolving-door relationships between banks and their government watchdogs contribute to settlements that are too generous to serve as deterrents (LittleSis, 10/23/13). Even the historic $13 billion JP Morgan settlement winds up being less than meets the eye, as much of the fine is tax-deductible, $4 billion of it is part of an earlier settlement and much of the rest will take the form of mortgage relief that will help the bank in the long run (Salon, 11/20/13).
  • Paul Merrell on 05 Jan 14
     
    Fairness & Accuracy in Reporting weighs in on mainstream media's reluctance to call for banksters to be issued horizontal striped suits, noting that the excuses used ignore that there are real victims and that real crimes were comitted. 
Gary Edwards

Swimming with the Sharks: Goldman Sachs, School Districts, and Capital Appreciation Bon... - 0 views

nsnbc.me/...and-capital-appreciation-bonds

Banksters Goldman-Sachs

shared by Gary Edwards on 21 Feb 15 - No Cached
  • In 2008, after collecting millions of dollars in fees to help California sell its bonds, Goldman urged its bigger clients to place investment bets against those bonds, in order to profit from a financial crisis that was sparked in the first place by irresponsible Wall Street speculation. Alarmed California officials warned that these short sales would jeopardize the state’s bond rating and drive up interest rates. But that result also served Goldman, which had sold credit default swaps on the bonds, since the price of the swaps rose along with the risk of default.
  • In 2009, the lenders’ lobbying group than proposed and promoted AB1388, a California bill eliminating the debt ceiling requirement on long-term debt for school districts. After it passed, bankers traveled all over the state pushing something called “capital appreciation bonds” (CABs) as a tool to vault over legal debt limits. (Think Greece again.) Also called payday loans for school districts, CABs have now been issued by more than 400 California districts, some with repayment obligations of up to 20 times the principal advanced (or 2000%).
  • The controversial bonds came under increased scrutiny in August 2012, following a report that San Diego County’s Poway Unified would have to pay $982 million for a $105 million CAB it issued. Goldman Sachs made $1.6 million on a single capital appreciation deal with the San Diego Unified School District.
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  • . . . AB1388, signed by then-Gov. Arnold Schwarzenegger in 2009, [gave] banks the green light to lure California school boards into issuing bonds to raise quick money to build schools. Unlike conventional bonds that have to be paid off on a regular basis, the bonds approved in AB1388 relaxed regulatory safeguards and allowed them to be paid back 25 to 40 years in the future. The problem is that from the time the bonds are issued until payment is due, interest accrues and compounds at exorbitant rates, requiring a balloon payment in the millions of dollars. . . . Wall Street exploited the school boards’ lack of business acumen and proposed the bonds as blank checks written against taxpayers’ pocketbooks. One school administrator described a Wall Street meeting to discuss the system as like “swimming with the big sharks.” Wall Street has preyed on these school boards because of the millions of dollars in commissions. Banks, financial advisers and credit rating firms have billed California public entities almost $400 million since 2007. [State Treasurer] Lockyer described this as “part of the ‘new’ Wall Street,” which “has done this kind of thing on the private investor side for years, then the housing market and now its public entities.”
  • The Federal Reserve could have made virtually-interest-free loans available to local governments, as it did for banks. But the Fed (whose twelve branches are 100% owned by private banks) declined. As noted by Cate Long on Reuters:
  • The Fed has said that it will not buy muni bonds or lend directly to states or municipal issuers. But be sure if yields rise high enough Merrill Lynch, Goldman Sachs and JP Morgan will be standing ready to “save” these issuers. There is no “lender of last resort” for muniland.
  • Among the hundreds of California school districts signing up for CABs were fifteen in Orange County. The Anaheim-based Savanna School District took on the costliest of these bonds, issuing $239,721 in CABs in 2009 for which it will have to repay $3.6 million by the final maturity date in 2034. That works out to $15 for every $1 borrowed. Santa Ana Unified issued $34.8 million in CABs in 2011. It will have to repay $305.5 million by the maturity date in 2047, or $9.76 for every dollar borrowed. Placentia-Yorba Linda Unified issued $22.1 million in capital appreciation bonds in 2011. It will have to repay $281 million by the maturity date in 2049, or $12.73 for every dollar borrowed.
  • In 2013, California finally passed a law limiting debt service on CABs to four times principal, and limiting their maturity to a maximum of 25 years. But the bill is not retroactive. In several decades, the 400 cities that have been drawn into these shark-infested waters could be facing municipal bankruptcy – for capital “improvements” that will by then be obsolete and need to be replaced.
  • Then-State Treasurer Bill Lockyer called the bonds “debt for the next generation.” But some economists argue that it is a transfer of wealth, not between generations, but between classes – from the poor to the rich. Capital investments were once funded with property taxes, particularly those paid by wealthy homeowners and corporations. But California’s property tax receipts were slashed by Proposition 13 and the housing crisis, forcing school costs to be borne by middle-class households and the students themselves.
  • According to Demos, per-student funding has been slashed since 2008 in every state but one – the indomitable North Dakota. What is so different about that state? Some commentators credit the oil boom, but other states with oil have not fared so well. And the boom did not actually hit in North Dakota until 2010. The budget of every state but North Dakota had already slipped into the red by the spring of 2009.
  • One thing that does single the state out is that North Dakota alone has its own depository bank.
  • The state-owned Bank of North Dakota (BND) was making 1% loans to school districts even in December 2014, when global oil prices had dropped by half. That month, the BND granted a $10 million construction loan to McKenzie County Public School No. 1, at an interest rate of 1% payable over 20 years. Over the life of the loan, that works out to $.20 in simple interest or $.22 in compound interest for every $1 borrowed. Compare that to the $15 owed for every dollar borrowed by Anaheim’s Savanna School District or the $10 owed for every dollar borrowed by Santa Ana Unified.
  • How can the BND afford to make these very low interest loans and still turn a profit? The answer is that its costs are very low. It has no exorbitantly-paid executives; pays no bonuses, fees, or commissions; pays no dividends to private shareholders; and has low borrowing costs. It does not need to advertise for depositors (it has a captive deposit base in the state itself) or for borrowers (it is a wholesale bank that partners with local banks, which find the borrowers). The BND also has no losses from derivative trades gone wrong. It engages in old-fashioned conservative banking and does not speculate in derivatives. Unlike the vampire squids of Wall Street, it is not motivated to maximize its bottom line in a predatory way. Its mandate is simply to serve the public interest.
  • Gary Edwards on 21 Feb 15
     
    " Remember when Goldman Sachs - dubbed by Matt Taibbi the Vampire Squid - sold derivatives to Greece so the government could conceal its debt, then bet against that debt, driving it up? It seems that the ubiquitous investment bank has also put the squeeze on California and its school districts. Not that Goldman was alone in this; but the unscrupulous practices of the bank once called the undisputed king of the municipal bond business epitomize the culture of greed that has ensnared students and future generations in unrepayable debt."
Paul Merrell

Wall Street: The Trump-China missing link - RT Op-Edge - 0 views

www.rt.com/...61057-wall-street-trump-china-

economy China globalism banksters Trump Auction 2016 musto-read

shared by Paul Merrell on 01 Oct 16 - No Cached
  • The yuan is about to enter the IMF’s basket of reserve currencies this coming Saturday - alongside the US dollar, pound, euro and yen. This is no less than a geoeconomic earthquake. Not only does this represent yet another step in China’s irresistible path towards economic primacy; the Chinese currency’s inclusion in the Special Drawing Rights (SDR) basket will also lead central banks and hyper-wealthy funds – especially from the US – to increasingly buy more Chinese assets.At the first US presidential debate, Donald Trump took no prisoners, criticizing China’s currency manipulation. This is what he said:“You look at what China’s doing to our country in terms of making our product, they’re devaluing their currency and there’s nobody in our government to fight them… They’re using our country as a piggy bank to rebuild China, and many other countries are doing the same thing.”
  • Well, China is not “making our product”; the manufacturing process is Made in China – then exported to the US. Most of the profits benefit US corporations – everything from design, licensing and royalties to advertising, financing and retail margins. If the mantras manage to spell out a partial truth - the US has lost manufacturing jobs to China, China is the “factory of the world” – they don't spell out the hidden truth that those who profit are essentially major corporations.China does not “devalue their currency”; the People’s Bank of China periodically adjusts the yuan according to a very narrow band. The major practitioners of quantitative easing (QE) are actually the US, as well as Japan and the European Central Bank (ECB). And the currency of global consumer goods manufacturing continues to be the US dollar, not the yuan.
  • Beijing also is not “using our country as a piggy bank to rebuild China.” This is all about balance of payments. What US consumers spend on Made in China products – many of them delocalized by US corporations – is pumped back to the US as capital inflows that keep interest rates down and help to support the Empire of Chaos’s global hegemony.
  • ...6 more annotations...
  • For all his incapacity to formulate thoughts above the language skills of a third grader, Trump has been piling up astonishing proposals that resonate wildly, way beyond the “basket of deplorables” spectrum.
  • The bottom line is that to recover US manufacturing jobs – as Trump has been forcefully promising – he will have to stare down the whole Wall Street finance oligarchy.So no wonder these oligarchs – responsible for shipping all those US manufacturing jobs to Asia and lavishly profiting from bailouts to the 'Too Big To Fail' racket – hate him with all their golden-plated guts.
  • Trump’s attention span is notoriously minimalist. If his advisers managed to imprint – tweet? - a few one-liners on his brain, he would be able to explain to US public opinion how the US-China game is really played, something that all relevant parties in both nations know by heart.And the – crucial - missing link in the whole game is Wall Street.This is how it works.
  • He is against Cold War 2.0 and the pivot to Asia, when he says “wouldn’t it be nice to get along with Russia and China for a change?”He no less than pre-empted WWIII when he said he would be against a US nuclear first-strike.He totally abhors global “free trade” – from NAFTA to TPP and TTIP - because it has “hollowed out the lives of American workers”, as US corporations (under Wall Street’s “incentive”) delocalize and then import back into the US tariff-free.
  • Trump was even open to nationalizing Wall Street banks after the 2008 financial crisis.
  • So we’re faced with the ultimate surrealist spectacle of a billionaire denouncing corporate globalization, which has been responsible for stripping the US lower middle classes of countless, decent blue-collar jobs and social benefits – not to mention turning them into hostages of rotting public infrastructure. And all that with absolutely no one among the US establishment condemning the most astonishing wealth transfer to the 0.0001% in history.If in the next two presidential debates Trump points to the crucial missing link in the whole plot – Wall Street - he might as well lock on as a surefire winner.
Paul Merrell

Wall Street betting billions on single-family homes in distressed markets - The Washing... - 0 views

www.washingtonpost.com/...2-9c03-6952ff305f35_story.html

fina financial-collapse class warfare statistics

shared by Paul Merrell on 25 Apr 13 - No Cached
  • Big investors are pouring unprecedented amounts of money into real estate hard hit by the housing crash, bringing those moribund markets back to life but raising the prospect of another Wall Street-fueled bubble that won’t be sustainable. Drawn by the prospect of double-figure profit margins on rents and the resale of homes whose prices plummeted in the crash, hedge funds, Wall Street investors and other institutions are crowding out individual home buyers.
  • If the chain of easy credit and dangerous leverage that started on Wall Street fanned the housing bubble and eventual crash, some analysts find it disturbing that major investors are the ones snapping up the bargains — and eventual big profits — left in its wake.“There is the possibility that Wall Street and the banks and the affluent 1 percent stand to gain the most from this,” said Jack McCabe, a real estate consultant based in Deerfield Beach, Fla. “Meanwhile, lower-income Americans will lose their opportunity for the American Dream of building wealth through owning a home.”
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