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Paul Merrell

M of A - Erdogan Moves To Annexes Mosul - 0 views

  • The wannabe Sultan Erdogan did not get his will in Syria where he had planned to capture and annex Aleppo. The Russians prevented that. He now goes for his secondary target, Mosul in Iraq, which many Turks see as historic part of their country
  • Mosul, Iraq's second biggest city with about a million inhabitants, is currently occupied by the Islamic State. On Friday a column of some 1,200 Turkish soldiers with some 20 tanks and heavy artillery moved into a camp near Mosul. The camp was one of four small training areas where Turkey was training Kurds and some Sunni-Arab Iraqis to fight the Islamic State. The small camps in the northern Kurdish area have been there since the 1990s. They were first established to fight the PKK. Later their Turkish presence was justified as ceasefire monitors after an agreement ended the inner Kurdish war between the KDP forces loyal to the Barzani clan and the PUK forces of the Talabani clan. The bases were actually used to monitor movement of the PKK forces which fight for Kurdish independence in Turkey. The base near Mosul is new and it was claimed to be just a small weapons training base. But tanks and artillery have a very different quality than some basic AK-47 training. Turkey says it will increase the numbers in these camps to over 2000 soldiers.
  • Should Mosul be cleared of the Islamic State the Turkish heavy weapons will make it possible for Turkey to claim the city unless the Iraqi government will use all its power to fight that claim. Should the city stay in the hands of the Islamic State Turkey will make a deal with it and act as its protector. It will benefit from the oil around Mosul which will be transferred through north Iraq to Turkey and from there sold on the world markets. In short: This is an effort to seize Iraq's northern oil fields. That is the plan but it is a risky one. Turkey did not ask for permission to invade Iraq and did not inform the Iraqi government. The Turks claim that they were invited by the Kurds: Turkey will have a permanent military base in the Bashiqa region of Mosul as the Turkish forces in the region training the Peshmerga forces have been reinforced, Hürriyet reported. The deal regarding the base was signed between Kurdistan Regional Government (KRG) President Massoud Barzani and Turkish Foreign Minister Feridun Sinirlioğlu, during the latter’s visit to northern Iraq on Nov. 4.
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  • There are two problems with this. First: Massoud Barzani is no longer president of the KRG. His mandate ran out and the parliament refused to prolong it. Second: Mosul and its Bashiqa area are not part of the KRG. Barzani making a deal about it is like him making a deal about Paris. The Iraqi government and all major Iraqi parties see the Turkish invasion as a hostile act against their country. Abadi demanded the immediate withdrawal of the Turkish forces but it is unlikely that Turkey will act on that. Some Iraqi politicians have called for the immediate dispatch of the Iraqi air force to bomb the Turks near Mosul. That would probably the best solution right now but the U.S. installed Premier Abadi is too timid to go for such strikes. The thinking in Baghdad is that Turkey can be kicked out after the Islamic State is defeated. But this thinking gives Turkey only more reason to keep the Islamic State alive and use it for its own purpose. The cancer should be routed now as it is still small. Barzani's Kurdistan is so broke that is has even confiscated foreign bank accounts to pay some bills. That may be the reason why Barzani agreed to the deal now. But the roots run deeper. Barzani is illegally selling oil that belongs to the Iraqi government to Turkey. The Barzani family occupies  not only the presidential office in the KRG but also the prime minister position and the local secret services. It is running the oil business and gets a big share of everything else. On the Turkish side the oil deal is handled within the family of President Erdogan. His son in law, now energy minister, had the exclusive right to transport the Kurdish oil through Turkey. Erdogan's son controls the shipping company that transports the oil over sea to the customer, most often Israel. The oil under the control of the Islamic State in Iraq passes the exactly same route. These are businesses that generate hundreds of millions per year.
  • It is unlikely that U.S., if it is not behinds Turkey new escapade, will do anything about it. The best Iraq could do now is to ask the Russians for their active military support. The Turks insisted on their sovereignty when they ambushed a Russian jet that brushed its border but had no intend of harming Turkey. Iraq should likewise insist on its sovereignty, ask Russia for help and immediately kick the Turks out. The longer it waits the bigger the risk that Turkey will eventually own Mosul.
Paul Merrell

Media Blackout as Israel's Largest Banks Pay Over $1 Billion in Fines for US Tax Evasion Schemes - 2 views

  • Israel’s three largest banks — Hapoalim Bank, Leumi Bank and Mizrahi Tefahot Bank — have all been ordered to pay record fines, which collectively are set to total over $1 billion, to the U.S. government after the banks were found to have actively colluded with thousands of wealthy Americans in massive tax-evasion schemes.
Paul Merrell

M of A - Ukraine: U.S. Takes Off-Ramp, Agrees To Russian Demands - 0 views

  • There was another phone call today between Secretary of State Kerry and the Russian Foreign Minister Lavrov. The call came after a strategy meeting on Ukraine in the White House. During the call Kerry agreed to Russian demands for a federalization of the Ukraine in which the federal states will have a strong autonomy against a central government in a finlandized Ukraine. Putin had offered this "off-ramp" from the escalation and Obama has taken it. The Russian announcement: Lavrov, Kerry agree to work on constitutional reform in Ukraine: Russian ministry (Reuters) - Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State John Kerry agreed on Sunday to seek a solution to crisis in Ukraine by pushing for constitutional reforms there, the Russian foreign ministry said. It did not go into details on the kind of reforms needed except to say they should come "in a generally acceptable form and while taking into the account the interests of all regions of Ukraine". ... "Sergei Viktorovich Lavrov and John Kerry agreed to continue work to find a resolution on Ukraine through a speedy launch of constitutional reform with the support of international community," the ministry said in a statement. The idea of "constitutional reform" and the "interests of all regions" is from the Russians as documented in this Russian" non-paper".
  • The non-paper describes the process of getting to a new Ukrainian constitution and sets some parameters for it. Russian will be again official language next to Ukraine, the regions will have high autonomy, there will be no interferences in church affairs and the Ukraine will stay politically and militarily neutral. Any autonomy decision by the Crimea would be accepted. This all would be guaranteed by a "Support Group for Ukraine" consisting of the US, EU and Russia and would be cemented in an UN Security Council resolution. It seems that Kerry and Obama have largely accepted these parameters. They are now, of course, selling this solution as their own which is, as the "non-paper" proves, inconsistent with the reality. Here is Kerry now suddenly "urging Russia" to accept the conditions Russia had demanded and which Kerry never mentioned before: Secretary of State John Kerry called on Moscow to return its troops in Crimea to their bases, pull back forces from the Ukraine border, halt incitement in eastern Ukraine and support the political reforms in Ukraine that would protect ethnic Russians, Russian speakers and others in the former Soviet Republic that Russia says it is concerned about. In a phone call with Russian Foreign Minister Sergey Lavrov, their second since unsuccessful face-to-face talks on Friday in London, Kerry urged Russia "to support efforts by Ukrainians across the spectrum to address power sharing and decentralization through a constitutional reform process that is broadly inclusive and protects the rights of minorities," the State Department said.
  • Obama has given up. His empty threats had now worked and he now has largely accepted the Russian conditions for the way out of the crisis. The U.S. plot to snatch the Ukraine from Russia and to integrate it into NATO and the EU seems to have failed. Russia taking Crimea and having 93% of the voters there agree to join Russia has made the main objective of the U.S. plans, to kick the Russians out of Sevastopol and thereby out of the Middle East, impossible. The Russian (non public) threat to also immediately take the eastern and southern provinces from the Ukraine has pushed the U.S. into agreeing to the Russian conditions mentioned above. The only alternative to that would be a military confrontation which the U.S. and Europeans are not willing to risk. Despite the anti-Russian campaign in the media a majority of U.S. people as well as EU folks are against any such confrontation. In the end the U.S. never held the cards it needed to win this game. Should all go well and a new Ukrainian constitution fit the Russian conditions the "west" may in the future well be allowed to pay for the monthly bills Gazprom will keep sending to Kiev. It will take some time to implement all of this. What dirty tricks will the neocons in Washington now try to prevent this peaceful outcome?
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    As with Obama's planned missile strikes on Syria, Lavrov once again offers Obama and Kerry a face-saving way to retreat and Obama again decides to break the War Party's leash on him. But that's what the War Party deserves when it pushes impossibilities as goals.  Now if Obama would just give the boot to all of his Neocon appointees ... But no; he is neither that wise nor brave. 
Paul Merrell

Goldman Sachs' Outrageous Scheme to Profit Off Jailed Young Offenders | Alternet - 0 views

  •       Like this article?Join our email list:Stay up to date with the latest headlines via email.         In 2012, Mayor Michael Bloomberg announced that New York City would be the site of a new experiment very dear to his billionaire’s heart. He declared that Wall Street megabank Goldman Sachs would provide a loan of nearly $10 million to pay for a program intended to reduce the rate at which adolescent men incarcerated at Rikers Island reoffend after their release (currently almost half reoffended within a year). The city government was short of money, so Goldman Sachs would step in to do what anemic public investment could not accomplish on its own: keep young men out of jail. If the program succeeded, the giant bank would profit. The more recidivism dropped, the more taxpayers would have to pay Goldman Sachs. On the other hand, if recidivism didn’t drop significantly, Goldman would lose its investment. So far, it’s too early to tell whether or not the program, which focuses on cognitive behavioral therapy, will meet its goals, but according to reports from the Department of Corrections, fighting has already been reduced at Rikers, so Goldman may just cash in.
  • The Rikers experiment is an example of a new trend in what are called “social impact bonds.” Burning questions about who profits and who loses in these schemes have become the subject of debate asl the trend catches hold. Let’s explore.
Paul Merrell

German Foreign Minister Warns Against More Russia Sanctions | Atlantic Sentinel - 0 views

  • Germany’s foreign minister, Frank-Walter Steinmeier, warned against imposing more sanctions on Russia in an interview that was published on Friday, saying bringing Russia to its knees would not make Europe safer. “I can only warn against it,” Steinmeier told Der Spiegel. The diplomat pointed out that Russia is already paying the price for invading Ukraine in the form of falling oil prices and a collapsing currency. He argued, “It cannot be in our interest that this spirals out of control.”
  • Earlier in the week, German chancellor Angela Merkel, whose conservatives are the senior partners in the ruling coalition with Steinmeier’s Social Democratic Party, insisted the sanctions would not be weakened. Speaking to lawmakers in Berlin ahead of a meeting with other European leaders in Brussels, Merkel said the territorial integrity of Ukraine had to be restored. “As long as this goal is not achieved, the sanctions will stay,” she said. European Union leaders agreed on Friday to keep existing sanctions in place and said they were ready to “stay the course” if Russia did not pull back from Ukraine.
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    Merkel is still withstanding the pressure from German industrialists to side with the Russians re U.S. sanctions on Russia.
Paul Merrell

Crude price drop triggers major layoffs in US oil industry - RT USA - 0 views

  • Thousands of recently highly paid workers have been laid off after the oil price plummeted 50 percent in 2014. At least four American oil-producing states are already facing budget problems due to decreasing oil revenues. The price plunge has affected petroleum production in all oil-extracting countries, including the US.
  • For Texas, which has a far larger and more diversified economy than Louisiana, the oil price downturn is no good either. In just October and November Texas lost 2,300 oil and gas jobs, the federal Bureau of Labor Statistics reported last week. Through the last half a year the state has been losing $83 million in potential revenue every day, the Greater Houston Partnership recently reported. They blamed this on crashing price of its West Texas Intermediate crude oil, which has depreciated to $54.73 per barrel this week, from more than $100 six months ago.
  • This doesn’t apply to the state of Alaska. According to the NYT, approximately 90 percent of state’s budget is formed from oil revenues. Alaska’s government is considering a 50 percent capital-spending cut for bridges and roads in the face of the oil price drop, with Moody’s, the credit rating service, lowering Alaska’s credit outlook from stable to negative. The state of Louisiana’s 2015-16 budget is going to be $1.4 billion short, with 162 state government positions already eliminated and more to be discontinued starting from January. Contracts and projects are being either reduced or frozen in state agencies. According to the state’s chief economist Greg Albrecht, for every $1 fall in price of an annual average barrel of oil, Louisiana loses $12 million.
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  • Now according to Tom Runiewicz, a US industry economist at IHS Global Insight, if oil stays around $56 a barrel till the middle of the next year, companies providing services to oil and gas industry could lose 40,000 jobs by the end of 2015, while oil and gas equipment manufacturers could slash up to 6,000 jobs.
  • The situation in other oil-extracting states could be even worse. In a study published last year, the Council on Foreign Relations warned the largest job losses caused by sharp decline in oil prices are going to take place in North Dakota, Oklahoma and Wyoming, where the number of drilling rigs is decreasing.
  • Currently cheap fuel is still believed to be providing an overall boost to the US economy, as consumers can spend less on gasoline and more on shopping and services. But for the American energy sector the future looks less bright. It’s effecting places like Alaska, Louisiana, Oklahoma and Texas, the New York Times reports. US oil experts recall the 1980s oil price downturn, accompanied by economic disasters around the globe and arguably becoming one of the causes of the fall of the Soviet Union. Some experts are positive and say America’s oil-producing states won’t suffer too much because they “diversified their economies.”
  • These workers can earn more than $1,700 a week, much higher than the average $848 a week payment for other workers, the WSJ reported. When experienced workers lose their highly paid jobs, they stop paying their bills. There are also fears of a house-price slump. Fitch Ratings has already warned that with the price of oil continuing to plummet, home prices in Texas “may be unsustainable.”
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    The oil bubble is beginning to burst. Blowback. 
Paul Merrell

M of A - The Coup Announcement In Afghanistan - 0 views

  • This in the New York Times reads like an early announcement of a democratic pro-U.S. coup in Afghanistan: A coterie of powerful Afghan government ministers and officials with strong ties to the security forces are threatening to seize power if an election impasse that has paralyzed the country is not resolved soon. ... After weeks of quietly discussing the prospect of imposing a temporary government, officials within the Karzai government said the best way out of a crisis that had emboldened the Taliban, weakened an already struggling economy and left many here deeply pessimistic about the country’s democratic future, might well be some form of interim government, most likely run by a committee. ... It often happens that when power is seized during a political crisis, as in Thailand or Egypt, those taking charge argue that the step is essential to restore order and protect democracy in the long run. That is also the case here, where such a move is being advertised as a last resort to save democracy. It could also effectively discard the results of a presidential runoff election that, until it was derailed by allegations of fraud, had been promoted as a historic event in a country that never had a democratic transfer of power. Both presidential candidates in Afghanistan, the northern alliance affiliated Abdullah Abdullah and the Pashtu candidate Ashraf Ghani had bribed whoever they could to win the election. But in the end they can not decided who had bribed more and thereby won. The length of the impasse does not matter as long as the country's bureaucracy keeps functioning, but there is one deadline that is threatened by it. This deadline may very well be the reason why this coup is intended. The question is again cui bono?
  • The officials said they believed they would have the backing of Afghanistan’s army, police and intelligence corps. ... A new government is needed soon if there is to be any chance of securing deals to keep American and European troops here after the end of the year, some Afghan officials said. ... Three senior Afghan officials said they needed a government in place by mid-September to ensure security agreements needed to keep some United States and NATO forces in Afghanistan beyond the end of the year.
  • Secretary of State Kerry tried twice to arrange for some badly defined national unity government in Kabul. Such a government is the cure-all solution introduced wherever the U.S. wants to stay in control. But the two candidates and the interests they represent can not agree on the terms. The security forces, depending on U.S. largess, will try their best to secure their future pay by getting the Status of Force Agreement with the U.S. signed. As President Karzai does not want such an agreement and no new government is in sight the security forces are tempted to install their own new government. As such is the only possibility for the U.S. to keep its foothold in Afghanistan we will likely see any coup and the resulting government, like in Egypt, be recognized as "restoring democracy". But such an arrangement will only encourage more resistance from the Taliban and other anti-government forces. The new "take no prisoners" policy of the corrupt government security forces will also increase the Taliban's support. As long as the interests of the people represented by the Taliban - and their demand for all foreign forces to leave - are not met, there will be no peace for the country.
Paul Merrell

100,000 foreign troops incl. Americans to be deployed in Iraq, MP claims - RT News - 0 views

  • The US is to send some 10,000 troops to Iraq to provide support for a 90,000-strong force from the Gulf states, a leading Iraqi opposition MP has warned. The politician said the plan was announced to the Iraqi government during a visit by US Senator John McCain. During a meeting in Baghdad on November 27, McCain told Prime Minister Haider Abadi and a number of senior Iraqi cabinet and military officials that the decision was ‘non-negotiable’, claimed Hanan Fatlawi, the head of the opposition Irada Movement.“A hundred thousand foreign troops, including 90,000 from Saudi Arabia, the UAE, Qatar and Jordan, and 10,000 troops from America will be deployed in western regions of Iraq,” she wrote on her Facebook page.She added that the Iraqi prime minister protested the plan, but was told that “the decision has already been taken.”
  • McCain and fellow hawk Senator Lindsey Graham have both been calling for a tripling in the current number of US troops deployed in Iraq to 10,000, and also advocate sending an equal number of troops to Syria to fight against the terrorist group Islamic State (IS, formerly ISIS/ISIL) and the government of Syrian President Bashar Assad. The Americans would prop up a 90,000-strong international ground force provided by Sunni Arab countries like Egypt, Turkey and Saudi Arabia.“The region is ready to fight. The region hates ISIL – they are coming for Sunni Arab nations. Turkey hates ISIL. The entire region wants Assad gone. So there is an opportunity here with some American leadership to do two things: to hit ISIL before we get hit at home and to push Assad out,” Graham argued during the joint visit to Baghdad in November.“Saudi Arabia, Egypt, Turkey – they have regional armies and they would go into the fight if we put [the removal of] Assad on the table. Most of the fight will be done by the region. They will pay for this war,” he added.
  • The US currently has about 3,600 troops in Iraq, including 100 special operations troops deployed last month to take part in combat missions involving hostage rescue and the assassination of IS leaders. The White House is reluctant to commit a large ground force, citing the cost in human lives and money and the possible political ramifications of what will be portrayed by America’s opponents as yet another Western invasion of the Arab world.The McCain-Graham plan also poses the risk of direct confrontation between the proposed coalition force and Russia and Iraq, which are both militarily assisting the Assad government and may not stay out of the fight – something which the hawkish duo have not factored into their plan.This is especially true after Turkey’s downing of a Russian bomber plane on the Turkish-Syrian border, which Moscow considered a stab in the back and which sent relations with Ankara to a low not seen for decades.Baghdad has its own concerns about a Turkish presence on its territory after Ankara sent troops into western Iraq and refused to withdraw them, despite Iraqi protests. Ankara claimed the incursion was made under a 2014 invitation from Iraqi Prime Minister Abadi.
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    To hell with international law governing warfare. The U.S. is sending in boots on the ground, despite being told "no" by Iraq. 
Paul Merrell

Oil And Gas Sector Troubles Drive Corporate Default Rate To Highest Level In Seven Years: S&P - 0 views

  • The troubled oil and gas industry has been a big factor in driving global corporate defaults to their highest rate in seven years.Four more companies defaulted this week, bringing the overall tally to 40 so far this year, the ratings agency Standard & Poor’s said Friday in a research note. The last time defaults hit such heights was in the depths of the global recession in 2009.About one-third of that total, or 14 defaults, came from oil and gas companies, which are struggling to pay off debt acquired when oil prices were higher. U.S. crude prices are down more than 60 percent from their June 2014 peak of $105 a barrel, trading at around $39 a barrel Friday. Investors now face tens of billions of dollars in energy defaults as the worst oil crash in decades leaves drillers struggling to stay afloat.
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    In related news, the nation's largest coal company, Peabody Coal, just filed for bankruptcy. Several other coal companies already have, indicative of plummeting markets and prices for coal. 
Gary Edwards

Jim Douglass: A Letter to the American People (and Myself in Particular) On the Unspeakable, 1999, 2012 - 0 views

  • “But if they’re not [authentic], then you have something of a magnitude beyond common experience that would reflect so devastatingly on our society as a whole and its corruptibility that you don’t know how to deal with it.”[4]
  • Since I began researching the assassinations of Martin Luther King, Malcolm X, and John and Robert Kennedy, I have been shocked by the obvious signature that is written across all four of them. It is the signature of what President Eisenhower identified as the military-industrial complex of our government.[6] We can read that signature at once in Dallas in the identity of the scapegoat Lee Harvey Oswald.
  • When Lee Harvey Oswald was arrested in Dallas after the assassination, he was carrying a Department of Defense ID card that is routinely issued to U.S. intelligence agents abroad. The FBI later obliterated the card by “testing” it but writer Mary La Fontaine discovered a copy of it in l992 in a Dallas Police Department photo. Oswald had been a radar operator for the CIA’s U-2 spy plane while he was a Marine stationed at Atsugi Naval Air Station in Japan. The Atsugi base served as the CIA’s center for its Far East operations. His fellow Marines David Bucknell and James Botelho said that when Oswald “defected” to the Soviet Union, he did so under the direction of U.S. intelligence.[8] The professed traitor Oswald was given a U.S.-government loan to assist his return from the USSR. When he settled in Dallas, his closest friend and mentor was longtime U.S. intelligence operative George DeMohrenschildt.
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  • Fidel Castro recognized “CIA” written all over Lee Harvey Oswald and the press releases on him that were being sent around the world within minutes of the assassination. The whole Dallas set-up was obvious to someone as familiar with CIA assassination plots as Fidel Castro was.
  • The more one investigates the assassination of John Kennedy, the more one becomes immersed in the depths of U.S. intelligence. The American intelligence community was the sea around Lee Harvey Oswald, Jack Ruby, and the host of anti-Castro Cuban exiles and gun runners with whom Oswald and Ruby worked closely.
  • By the Fall of l963 John Kennedy had also decided to withdraw from Vietnam.[14] Robert McNamara in his memoir In Retrospect[15] has described the contentious October 2, l963, National Security Council meeting at which Kennedy decided, against the arguments of most of his advisors: to withdraw all U.S. forces from Vietnam by the end of l965; to withdraw l,000 U.S. troops by the end of l963; to announce this policy publicly “to set it in concrete,” which Press Secretary Pierre Salinger did at a press conference when the meeting was over.[16]
  • After JFK’s assassination, his withdrawal policy was quietly voided.[18] In light of the future consequences of Dallas, it was not only John Kennedy who was crucified on November 22, l963, but 58,000 other Americans and over three million Vietnamese, Laotians, and Cambodians.
  • Clifton Baird was a Louisville, Kentucky, police officer in l965 when he was asked to help kill Martin Luther King. On September l8, l965, Baird gave a ride home in his car to fellow Louisville officer Arlie Blair after their 3-ll pm shift. Baird parked his car in Blair’s driveway, and the two men talked. Alarmed at what Blair was saying, Clifton Baird secretly turned on a microphone hidden under his seat that was connected to a recorder in a rear speaker. What Baird taped was an offer to engage in a conspiracy to kill Dr. King. He later shared the information with author William F. Pepper who included it in his book on the King assassination Orders to Kill.[32] Blair told Baird that an organization he belonged to was willing to pay $500,000 for the death of King. Would Baird be willing to participate? Baird said he definitely would not. He urged Blair to stay away from it, too.
  • The next day at a Louisville police station, Clifton Baird saw Arlie Blair conferring with a group of police officers and FBI agents. The FBI agents had, over a period of sixteen years or more, developed a close relationship with members of the Louisville police force.
  • On September 20, l965, Baird taped a second car conversation with Blair. Blair again brought up the $500,000 bounty for King, which Baird had now connected with the FBI.
  • Myron Billett was another witness to the truth. By undergoing a conversion in his own life, Myron Billett was able to reveal that in January l968 FBI and CIA agents offered a New York Mafia leader a $l million contract to kill Martin Luther King.
  • After Dr. King was assassinated on April 4, Sam Giancana gave Myron Billett $30,000 and told him to start running: They both knew too much and were going to be killed. Giancana was in fact murdered in his Chicago home in June l975, just before he was scheduled to testify before the Church Committee concerning assassination plots. His killing took the form of a symbolic warning to other possible assassination witnesses. Giancana was shot seven times in a circle around his mouth.
  • In his Canadian Broadcasting Corporation lectures at the end of l967 (later published as The Trumpet of Conscience[39]), King’s vision went beyond even these overwhelming concerns. He saw the next step as a global nonviolent movement using escalating acts of massive civil disobedience to disrupt the entire international order and block economic and political exploitation across borders.
Paul Merrell

European Central Bank Goes Sub Zero » CounterPunch: Tells the Facts, Names the Names - 0 views

  • On Thursday, European Central Bank chief Mario Draghi dropped rates on overnight deposits to minus 0.1% thereby charging commercial banks to keep their money at the ECB. The move, which was applauded by the media as a “historic measure to fight deflation”, is nothing of the kind. Negative rates have been used in both Sweden and Denmark in recent years, but to little effect. The policy will not “get the banks lending again” as the ECB suggests, nor will it ease the high unemployment and slow growth that have plagued the Eurozone for the last six years. In truth, the rate change will have no impact at all. It’s merely public relations stunt designed to create the impression that the ECB is aggressively addressing the crisis for which it is largely responsible. Here’s how the World Socialist Web Site summed it up: “The move is an expression of the fact that, nearly six years since the collapse of Lehman Brothers, the world economy remains mired in deep crisis, for which the world’s central banks have no solution outside of pumping trillions into banks and financial firms. While trillions are handed out to the banks, workers throughout the continent are told that there is “no money” to pay for pensions, social programs, and healthcare benefits.” (European Central Bank cuts interest rate below zero, World Socialist Web Site)
  • Stock traders loved the news that the ECB was going “sub zero”. As we’ve seen before, any indication that the easy money regime is here-to-stay is enough to send equities skyrocketing, which it did. All the main indices notched substantial gains on the day while the SandP 500 surged to a new record of 1,940. The idea that charging the banks a small fee on overnight deposits will induce them to lend more freely, demonstrates a laughable misunderstanding of how the system really works.
Paul Merrell

security theater, martial law, and a tale that trumps every cop-and-donut joke you've ever heard | Popehat - 0 views

  • First, just in case it's not utterly obvious, I'm glad that the two murderous cowards who attacked civilians in Boston recently are off the streets. One dead and one in custody is a great outcome. That said, a large percent of the reaction in Boston has been security theater. "Four victims brutally killed" goes by other names in other cities. In Detroit, for example, they call it "Tuesday". …and Detroit does not shut down every time there are a few murders.
  • "Then why the hell do you care, Clark?" First, the unprecendented shutdown of a major American city may have increased safety some small bit, but it was not without a cost: keeping somewhere between 2 and 5 million people from work, shopping, and school destroyed a nearly unimaginable amount of value. If we call it just three million people, and we peg the cost at a mere $15 per person per hour, the destroyed value runs to a significant fraction of a billion dollars. "Yeah, maybe…but in this day and age where the federal government is borrowing an extra $3.85 billion per day, a couple of hundred million doesn't sound like much. After all, if we're borrowing money that our children and grandchildren will have to pay back to fund Cowboy Poetry Festival and military golf courses, then what's another $200 or $400 million to keep people safe?"
  • Second, the cost isn't just measured in dollars – it's measured in the degree to which it trains a population to freak out over minor risk and to trust blindly in authorities. Third, keeping citizens off the street meant that 99% of the eyes and brains that might solve a crime were being wasted. Eric S Raymond famously said that "given enough eyeballs, all bugs are shallow". It was thousands of citizen photographs that helped break this case, and it was a citizen who found the second bomber. Yes, that's right – it wasn't until the stupid lock-down was ended that a citizen found the second murderer
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  • We had thousands of police going door-to-door, searching houses…and yet not one of them saw the evidence that a citizen did just minutes after the lock-down ended. "But Clark," you protest, "you may not trust the government to decide what's risky and what's not, but I do. If it saves even one life, then shutting down a major city is the right move. That's obvious!" But the Boston police didn't shut down an entire city. They shut down an entire city except for the donut shops. boston.com Law enforcement asked Dunkin' Donuts to keep restaurants open in locked-down communities to provide… food to police… including in Watertown, the focus of the search for the bombing suspect.
  • The government and police were willing to shut down parts of the economy like the universities, software, biotech, and manufacturing…but when asked to do an actual risk to reward calculation where a small part of the costs landed on their own shoulders, they had no problem weighing one versus the other and then telling the donut servers "yeah, come to work – no one's going to get shot." And they were right.
Gary Edwards

Gang of 545 and The Basic Flaw by Charley Reese - 2 views

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    Enough said.  Beautifully done Charlie! intro: Politicians are the only people in the world who create problems and then campaign against them. Have you ever wondered why, if both the Democrats and the Republicans are against deficits, we have deficits? Have you ever wondered why, if all the politicians are against inflation and high taxes, we have inflation and high taxes? You and I don't propose a federal budget. The president does. You and I don't have the Constitutional authority to vote on appropriations. The House of Representatives does. You and I don't write the tax code. Congress does. You and I don't set fiscal policy. Congress does. You and I don't control monetary policy. The Federal Reserve Bank does. One hundred senators, 435 congressmen, one president and nine Supreme Court justices - 545 human beings out of the 235 million - are directly, legally, morally and individually responsible for the domestic problems that plague this country.
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    Bay Area Patriot Group post
Paul Merrell

Cannonfire - 0 views

  • The ISIS phenomenon is as bizarre as it is horrifying. These jihadists (led by a mystery man named Abu Bakr al-Baghdadi, a.k.a. Abu Dua, a.k.a. "The Ghost" -- about whom, much more below) have achieved sudden, dramatic success. Yet nearly everyone in the Islamic world detests them. Although ISIS is often described as an offshoot of Al Qaeda, ISIS managed to alienate even Ayman al-Zawahiri, the man who assumed Bin Laden's "throne." Even fighters for the rival Nusra front -- the Syrian rebels who eat hearts and desecrate churches -- temporarily broke with ISIS, on the grounds that ISIS is too extreme. If you've been paying any attention to the news, you already know that ISIS took over Mosul, the second largest city in Iraq, which thousands of people have fled. They have also reportedly taken Tikrit, the birthplace of Saddam Hussein, although some accounts hold that government forces have retaken the city. The situation is so dire that even Iran has offered to help their one-time foes in Iraq. Of course, Shi'ite Iran does not want to see a powerful neighbor ruled by ultra-radical Sunnis.
  • From the Washington Post: Meanwhile in Mosul, one of Iraq’s most important cities, ISIS set about asserting its control, issuing an 11-point charter spelling out the creation of an Islamic state along with new laws, punishments and incentives. Alcohol, cigarettes and drugs are outlawed, citizens will henceforth be required to pray five times a day, thieves will have their hands amputated and women must stay indoors except in cases of emergency, the charter said. “To those of you who ask, who are you? The answer: We are the soldiers of the Islamic State of Iraq and Syria . . . who took it upon ourselves to bring back the glory of the Islamic Caliphate and turn back injustice and indignity,” the charter announced. Never forget who is responsible for this disaster: The neoconservatives.
  • As noted above, and as we have seen in earlier posts, the United States insured that weaponry from Libya went to anti-Assad jihadists. Before that, we supported jihadis fighting against Gaddafy of Libya:
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  • Who is Abu Bakr al-Baghdadi? Born Awwad Ibrahim Ali al-Badri al-Samarrai, he received a doctorate from the Islamic University in Baghdad. In 2003, he is said to have formed a short-lived militant group in response to the American invasion.
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