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Paul Merrell

Volcker Rule: How It Work, and Why It May Still Fail | New Republic - 0 views

www.newrepublic.com/...work-and-why-it-may-still-fail

banksters Volcker-rule commercial-banks Glass-Steagall

shared by Paul Merrell on 17 Dec 13 - No Cached
  • s a starting point, we think the Proposed Rule is simply too tepid.” That was how Senators Jeff Merkley and Carl Levin opened their February 2012 comment letter to federal banking regulators about the “Volcker rule,” designed to prevent large banks from making risky proprietary trades for their own profit, the kinds of trades that nearly took down the financial system in 2008. The senators, who authored the rule in Congress, were displeased about a number of loopholes added to the proposal, which they said did not “fulfill the law’s promise.” They demanded that regulators “draw brighter lines, remove unnecessary complexities, and enable cost-effective, consistent enforcement.”Twenty months later, five regulators will today finalize the Volcker rule, and Merkley, for one, is pleased with the result. “I believe the loopholes inherent in that [2012] draft have been significantly reduced or eliminated,” he said in an interview on the eve of the final votes. “I have a much more positive feeling about what will be voted on.” 
  • The tougher rule is a pleasant surprise, given how reliably Wall Street lobbyists have gutted such efforts in the past. For once, the hard work of members of Congress, advocates, and the public actually produced something that could work. But if you view financial reform like a football game, today’s votes kick off the third quarter of a contest destined for 34 consecutive overtimes. Today’s vote mostly triggers an extended period of data collection and guideline-setting, giving mega-banks many future opportunities to water down the rules. And even if implementation wraps up strongly—as it certainly could—regulatory spine will be needed to prevent another financial crisis. As Merkley noted, in matters like this, “you need eternal vigilance.” And, in Washington and on Wall Street, vigilance has often been anything but.
Paul Merrell

Amend the Federal Reserve: We Need a Central Bank that Serves Main Street | Global Research - 0 views

www.globalresearch.ca/...5360637

banksters federal-reserve Federal-Reserve-reform

shared by Paul Merrell on 11 Dec 13 - No Cached
  • December 23rd marks the 100th anniversary of the Federal Reserve. Dissatisfaction with its track record has prompted calls to audit the Fed and end the Fed.  At the least, Congress needs to amend the Fed, modifying the Federal Reserve Act to give the central bank the tools necessary to carry out its mandates. The Federal Reserve is the only central bank with a dual mandate. It is charged not only with maintaining low, stable inflation but with promoting maximum sustainable employment. Yet unemployment remains stubbornly high, despite four years of radical tinkering with interest rates and quantitative easing (creating money on the Fed’s books). After pushing interest rates as low as they can go, the Fed has admitted that it has run out of tools. At an IMF conference on November 8, 2013, former Treasury Secretary Larry Summers suggested that since near-zero interest rates were not adequately promoting people to borrow and spend, it might now be necessary to set interest at below zero. This idea was lauded and expanded upon by other ivory-tower inside-the-box thinkers, including Paul Krugman. Negative interest would mean that banks would charge the depositor for holding his deposits rather than paying interest on them. Runs on the banks would no doubt follow, but the pundits have a solution for that: move to a cashless society, in which all money would be electronic. “This would make it impossible to hoard cash outside the bank,” wrote Danny Vinik in Business Insider, “allowing the Fed to cut interest rates to below zero, spurring people to spend more.”
  • Business Week quotes Douglas Holtz-Eakin, a former director of the Congressional Budget Office: “We’ve had four years of extraordinarily loose monetary policy without satisfactory results, and the only thing they come up with is we need more?” Paul Craig Roberts, former Assistant Secretary of the Treasury, calls the idea “harebrained.” He is equally skeptical of quantitative easing, the Fed’s other tool for stimulating the economy. Roberts points to Andrew Huszar’s explosive November 11th Wall Street Journal article titled “Confessions of a Quantitative Easer,” in which Huszar says that QE was always intended to serve Wall Street, not Main Street.  Huszar’s assignment at the Fed was to manage the purchase of $1.25 trillion in mortgages with dollars created on a computer screen. He says he resigned when he realized that the real purpose of the policy was to drive up the prices of the banks’ holdings of debt instruments, to provide the banks with trillions of dollars at zero cost with which to lend and speculate, and to provide the banks with “fat commissions from brokering most of the Fed’s QE transactions.”
  • Bernanke created debt-free money and bought government debt with it, returning the interest to the Treasury. The result was interest-free credit, a good deal for the government. But the problem, says Lounsbury, is that: The helicopters dropped all the money into a hole in the ground (excess reserve accounts) and very little made its way into the economy.  It was essentially a rearrangement of the balance sheets of the creditor nation with little impact on the debtor nation. . . . The fatal flaw of QE is that it delivers money to the accounts of the creditors and does nothing for the accounts of the debtors. Bad debts remain unserviced and the debt crisis continues.
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  • Bernanke delivered the money to the creditors because that was all the Federal Reserve Act allowed. If the Fed is to fulfill its mandate, it clearly needs more tools; and that means amending the Act.  Harvard professor Ken Rogoff, who spoke at the November 2013 IMF conference before Larry Summers, suggested several possibilities; and one was to broaden access to the central bank, allowing anyone to have an ATM at the Fed. Rajiv Sethi, Barnard/Columbia Professor of Economics, expanded on this idea in a blog titled “The Payments System and Monetary Transmission.” He suggested making the Federal Reserve the repository for all deposit banking. This would make deposit insurance unnecessary; it would eliminate the need to impose higher capital requirements; and it would allow the Fed to implement monetary policy by targeting debtor rather than creditor balance sheets. Instead of returning its profits to the Treasury, the Fed could do a helicopter drop directly into consumer bank accounts, stimulating demand in the consumer economy. John Lounsbury expanded further on these ideas. He wrote in Econintersect that they would open a pathway for investment banking and depository banking to be separated from each other, analogous to that under Glass-Steagall. Banks would no longer be too big to fail, since they could fail without destroying the general payment system of the economy. Lounsbury said the central bank could operate as a true public bank and repository for all federal banking transactions, and it could operate in the mode of a postal savings system for the general populace.
  • The Federal Reserve Act was drafted by bankers to create a banker’s bank that would serve their interests. It is their own private club, and its legal structure keeps all non-members out.  A century after the Fed’s creation, a sober look at its history leads to the conclusion that it is a privately controlled institution whose corporate owners use it to direct our entire economy for their own ends, without democratic influence or accountability.  Substantial changes are needed to transform the Fed, and these will only come with massive public pressure. Congress has the power to amend the Fed – just as it did in 1934, 1958 and 2010. For the central bank to satisfy its mandate to promote full employment and to become an institution that serves all the people, not just the 1%, the Fed needs fundamental reform.
  • Paul Merrell on 11 Dec 13
     
    In my view, the Fed is beyond salvage. It needs abolition, not a new role. The Constitution grants Congress the power to mint and coin money, not a group of rent-seeking banksters. 
Gary Edwards

The Daily Bell - Catherine Austin Fitts on Moral Investing and the Coming Equity 'Crash-Up' - 1 views

www.thedailybell.com/...and-the-Coming-Equity-Crash-Up

Banksters Federal-Reserve-Bankster-Cartel Catherine-Austin-Fitts

shared by Gary Edwards on 16 Oct 13 - No Cached
  • If you talk about legacy systems and then a breakaway civilization, the legacy systems were financed with debt and if the resources have basically been shifted out and over into "NewCo" then that's going to be an equity model. We're literally coming into what I consider to be a planetary debt for equity swap. So the question for all of us is how do we navigate the turn? When do you leave the bond market and when does the equity increase occur? We've seen North America equity markets rising and the emerging markets falling this year.
  • We're seeing a tremendous divergence in the economy in North America between those portions of the economy that are adapting new technology and growing and the rest of the economy.
  • The other thing I watch is what the divergence means to bond credits and to equity valuations. If you look at the indices you don't really see it. If you look inside the indices you see some enormous splits in quality and value going on.
  • ...43 more annotations...
  • The slow burn is a world in which for most people income is flat or falling and expenses are steadily rising. It's a debasement scenario. And the reality is the central banks have been able to have a quite liberal monetary policy because we've been able to offset that with labor deflation. So by globalizing labor and instituting technology you have tremendous deflationary pressures, which offset very generous monetary policy.
  • Starting in the '90s a decision was made to move significant amounts of capital out of existing systems in  the developed world and literally trillions of dollars of financial fraud was engineered to do that. As a financial phenomenon it was quite clever and trillions have literally been moved out between the fraud and the bailouts. I think what the Fed has been doing with quantitative easing is running a shredding operation where they buy up the fraudulent mortgage securities paper and are shredding it.
  • If you look at the Treasury, they've run a very tight regulatory process where that money doesn't seep out on Main Street. It's quite phenomenal the way they've managed to control it. I think one of the big questions is where is that money going to go now? It certainly looks to me like a great effort is being made to make sure it goes into equities, sort of keeps the bond market afloat and goes into equities. So I look it as a very political move.
  • You can balance the budget with fiscal measures or you can balance the budget by the Fed just buying bonds and if you look at the Fed's balance sheet, I think they have a much greater capacity to buy bonds. If you look at all the money that was stolen, the breakaway civilization has plenty of money to buy bonds.
  • I would say so far the Fed's policies have worked for what they're intended to do. We've moved a tremendous amount of money out of the economy. We've now basically run through the statute of limitations or done whatever management needed to cut the cords so that what I call the legacy systems can't get the money back. So the financial coup d'état has been successful and now the cover-up is pretty much over and successful.
  • So now you have big decisions. You have two economies. Before this started what I call the legacy systems had $100 trillion of liabilities and $100 trillion of assets – now, I'm just pulling those numbers out of the air – and
  • the coup moved $40 trillion of assets over into NewCo
  • if you will. Now we've got the legacy systems trying to reconcile $60 trillion of assets to $100 trillion of liabilities and there is a long, drawn-out, grinding process by which some people will get 50 cents on the dollar, some people will get zero cents on the dollar, some people will get 100 cents on the dollar. It's just a very difficult, complex and tangled political scene as to how that's going to all happen. Meantime, NewCo, with $40 trillion dollars, is investing and going gangbusters. NewCo is enjoying an unprecedented boom, investing in lots of new technology and new frontiers, including space. So I think the next step is to manage the lowering of expectations in the legacy systems. That's basically what the administration and the Fed are going to be doing for the next couple years, is just gutting their way through retirees' disappointment.
  • There are three things
  • Number one, Obamacare was created to create a framework that would allow significant reduction of costs and benefits under Medicare over time and healthcare over time;
  • Well, the goal of Obamacare is to control.
  • number two, Obamacare was to provide much more control over both the medical establishment and the population at large;
  • and then, three, to do it in a way that will protect corporate profits.
  • in a relatively short period of time US Medicare expenses would be several multiplicities of the GNP.
  • It's clearly a system that makes no economic sense. It's not just that people are aging. If we eat food that has little nutrition and provide healthcare in which pharmaceutical companies are allowed to charge many multiples of what they charge in other countries you're going to get a financial train wreck, which is where we're headed.
  • So I think the goal was to reconcile that and do it in a way that favors corporations and control.
  • If you go around the entire financial ecosystem, they're getting hit within every line by the same pro-centralization policies that ultimately go up to the same people.
  • Do I think it will snuff out the recovery? No. I think it will simply destroy the economics for a whole world of people who were productive.
  • I don't think the banks are fragile. What happened was they were asked to do a job, they did it and now they've taken all the fraudulent paper and sold it to the Fed or torn it up because they had so much in federal credit arbitrage earnings during this period. So I don't think they're fragile.
  • So it certainly puts us in a position where the creditworthiness of a lot of sovereign debt depends on government military might and the ability to debase a variety of players.
  • There's been a lot of regulation to make it easy for Wall Street to control and make it difficult for small businesses to raise and circulate liquid equity. It's one of the areas in the economy where there really has been a very serious conspiracy.
  • if you want to go really fast and prototype and build out infrastructure, the best way to do it is to make capital available to early venture and start-ups.
  • we, as a society, have stopped the markets from working in the start-up and the small business space.
  • If you look at it across all the different tools, from fabrication technology to new composite materials to robotics to lasers, we're reaching a critical mass of the economic costs dropping and the speed of learning accelerating.
  • If you look back at the history of the US stock market you'll see two huge spikes, one in the '20s, one in the '90s, both when very profound new communication and information technology came out.
  • I think we're in danger of another tech bubble. If you look at who's interested in putting money in this and getting lots of prototypes, the last time they did this was in the '90s. They made a fortune on fraud and they used it not only to serve some fundamental economic purposes but they used it to drain out the pension funds and the retail investors.
  • securities convertible into store credits
  • Wall Street doesn't understand about crowdfunding, are the new alignments that are going to be created in terms of circulating knowledge and purchases and money between consumers and entrepreneurs and companies. It's going to create a whole new level of intimacy.
  • I recommend the documentary, "The Naked Brand." It gives a good sense of the worth of that intimacy and the change from a mass media model to much more intimate relationships
  • awakening of global consciousness.
  • in North America there is almost an astonishing lack of transparency about how government money works within the jurisdiction for which we vote for political representation.
  • So if you were going to have proper transparency in America you would have annual financial statements for your congressional district as well as for the whole country.
  • Now, the government has refused since 1995, as required by law, to produce annual financial statements let alone for the places in which you're voting for jurisdiction. And if you're going to have any kind of citizenry accountability or legislator accountability you have to have that kind of transparency and the government has gone to enormous lengths to prevent that kind of transparency while pretending that we're very transparent. So the Internet is going to make it more and more difficult for that absence of transparency to continue or be justified, and that's good.
  • if you have all your assets in the legacy economy and none in the growing economy you're going to suffer.
  • That's number one.
  • Number two, a lot of households have assets which represent liabilities of the legacy economy, whether Social Security, Medicare or others, and one of the things you have to understand is the politics – you need to not get trapped in the politics of stringing people out for those benefits. Do the best you can but don't get lost in the treadmill of trying to get promised benefits that may or may not come true. And to the extent that you can not get financially dependent on those benefits it would be very good.
  • The final thing is, of course, and readers know this if they're reading The Daily Bell, you're dealing in a system that includes a significant amount of corruption and fraud so you just need to be extremely careful about the quality of the people or the enterprises in which you invest or do business with and keep your assets fairly diversified in terms of both areas of the economy, or sectors, and places.
  • Take a look at different predictions that gold is going to increase significantly in value. All those predictions assume that the monetary inflation is going to spill into commodities. And what you're watching instead is the G-7 have been essentially building a corral that forces the horses to run out through the stock market. That's why I call it a crash-up.
  • I think one scenario we're looking at is the possibility of a crash-up scenario where that monetary increase is funneled into the equity markets. One of the most important questions there is, can you get the global population interested in investing in equities? Because the long bond market bull is coming to a close.
  • We have two choices. We can basically write down the debt and go through a huge crunch period or we can have a crash-up in the equity markets.
  • Right after 9/11 – and General Wesley Clark has said this and I experienced it in my tiny little community in Tennessee – we were basically given what the battle plan was going to be – the US military taking over Eurasia. First we were going to go to Afghanistan, then we were going to go to Iraq, then we were going to go to Libya, then we were going to go to Syria and then we're going to Iran. It was all laid out for us and we seem to be following that battle plan, albeit slower than predicted at that time.
  • If we're going to create a global financial system and a one-world currency, you need everybody in the central banking model. You have outliers. We seem to be bringing in all the outliers. As we do, we are trying to checkmate Russia and China within Eurasia, because I think control of Eurasia is essential for maintaining global empire.
  • what we're watching is an effort to bring everybody into a centrally controlled central banking model.
  • Gary Edwards on 16 Oct 13
     
    Catherine is a frequent guest on CoastToCoastAM.com, so I've come to know her well.  Although this interview doesn't discuss her ability to see into the future, I know from experience that she is a real visionary hitting the mark at an astounding clip.  Chalk this interview up as a must read.
Paul Merrell

The US/NATO Enlargement Project » CounterPunch: Tells the Facts, Names the Names - 0 views

www.counterpunch.org/...rtmentnato-enlargement-project

war & peace Russia NATO U.S.-foreign-policy Ukraine

shared by Paul Merrell on 14 Apr 14 - No Cached
  • In February, 1990, US Secretary of State James Baker (1989-1992), representing President George HW Bush, traveled to Moscow to meet with Russian President Mikhail Gorbachev regarding the possible reunification of Germany and the removal of 300,000 Soviet troops. There is little serious dispute that as the Berlin Wall teetered, Baker promised Gorbachev “there would be no extension of NATO’s jurisdiction for forces of NATO one inch to the east.” Gorbachev is reported to have taken the US at its word and responded “any extension of the zone of NATO is unacceptable.” “I agree,” replied Baker.” Unfortunately, Gorbachev never got it in writing and most historians, at the time, agreed that NATO expansion was “ill conceived, ill-timed, and above all ill-suited to the realities of the post-Cold War world.”
  • President Bush’s National Security Advisor Brent Scowcroft and Bill Clinton’s Defense Secretary were also in agreement. But by 1994, that verbal contract had not deterred the concerted efforts of a handful of State Department policy professionals to subdue the overwhelming bureaucratic opposition according to James Goldgeier in his classic “Not Whether but When: The US Decision to Enlarge NATO.” By 1997, the Gorbachev-Baker-Bush agreement was a forgotten policy trinket as Hungary, Poland and the Czech Republic were accepted into NATO. In 2004, former Soviet satellite countries Lithuania, Latvia and Estonia were admitted and in 2009, Croatia and Albania joined NATO. Currently, the former Soviet republics of Ukraine, Georgia, Moldova, Kazakhstan, Armenia, and Azerbaijan are pending membership and all five former Soviet republics in Central Asia (Kyrgyzstan, Tajikistan, Turkmenistan, Kazakhstan, and Uzbekistan) provide NATO with logistical support for the US war in Afghanistan. As the US-led NATO alliance tightens its grip on the Caucasus countries, the American public has not been informed about the Ukrainian Parliament’s approval for a series of NATO military exercises that would put US troops on Russia’s border, even though the Ukraine is not yet a member of NATO. Rapid Trident is a 12-nation military ‘interoperability’ exercise led by the US who will commit the majority of participating troops and Sea Breeze is a naval exercise that will take place on the Black Sea adjacent to Russian ports. The NATO buildup includes joint ground operations with Moldova and Romania.
  • Most recently, NATO Secretary General Anders Fogh Rasmussen announced that the military alliance has cut Russia off from civilian and military cooperation and that there would be the deployment and reinforcement of military assets including increased air patrols over the Baltic Sea and AWACS surveillance flights over Poland and Romania. It goes without saying that the NATO build up is in addition to the deployment of US troops and F-16 warplanes to Poland, F-15C warplanes to Lithuania and aircraft carriers to the Black and Mediterranean Seas. All this raises the question about whether a promise and handshake in the world of international diplomacy is a real commitment and what is a 1991 international promise made by a Republican Administration worth in 1994 to a Democratic Administration? Apparently zilch.
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  • What all this means is that, behind the diplomatic landscape of verbal jujitsu and summit meetings, there had been a concerted effort at the US State Department with the creation of a NATO Enlargement Office to establish what has become a Russian Wall – an impenetrable US – defined barrier of estrangement along the Russian border meant to cut the country off from land and sea access – as NATO, itching for war, continues to bait Russia with isolation and threats.
Paul Merrell

Tomgram: Todd Miller, The Creation of a Border Security State | TomDispatch - 0 views

www.tomdispatch.com/...ion_of_a_border_security_state

security state Constitution constitution-free-zones Border-Patrol surveillance state

shared by Paul Merrell on 22 Apr 14 - No Cached
  • Sometimes you really do need a map if you want to know where you are.  In 2008, the ACLU issued just such a map of this country and it’s like nothing ever seen before.  Titled “the Constitution-Free Zone of the United States,” it traces our country’s borders.  Maybe you’re already tuning out.  After all, you probably don’t think you live on or near such a border.  Well, think again.  As it happens, in our brave, new, post-9/11 world, as long as we’re talking “homeland security” or “war on terror,” anything can be redefined.  So why not a border? Our borders have, conveniently enough, long been Constitution-free zones where more or less anything goes, including warrantless searches of various sorts.  In the twenty-first century, however, the border itself, north as well as south, has not only been increasingly up-armored, but redefined as a 100-mile-wide strip around the United States (and Alaska).  In other words -- check that map again -- our “borders” now cover an expanse in which nearly 200 million Americans, or two-thirds of the U.S. population, live.  Included are nine of the 10 largest metropolitan areas.  If you live in Florida, Maine, or Michigan, for example, no matter how far inland you may be, you are “on the border.”
  • Imagine that.  And then imagine what it means.  U.S. Customs and Border Protection, as Todd Miller points out today, is not only the largest law enforcement agency in the country you know next to nothing about, but the largest, flat and simple.  Now, its agents can act as if the Constitution has been put to bed up to 100 miles inland anywhere.  This, in turn, means -- as the ACLU has written -- that at new checkpoints and elsewhere in areas no American would once have considered borderlands, you can be stopped, interrogated, and searched “on an everyday basis with absolutely no suspicion of wrongdoing.” Under the circumstances, it’s startling that, since the ACLU made its case back in 2008, this new American reality has gotten remarkably little attention.  So it’s lucky that TomDispatch regular Miller's invaluable and gripping book, Border Patrol Nation: Dispatches from the Front Lines of Homeland Security, has just been published.  It’s an eye opener, and it’s about time that “border” issues stopped being left to those on the old-fashioned version of the border and immigration mavens.  It’s a subject that, by definition, now concerns at least two-thirds of us in a big way.
  • Border Security Expo 2014 catches in one confined space the expansiveness of a “booming” border market. If you include “cross-border terrorism, cyber crime, piracy, [the] drug trade, human trafficking, internal dissent, and separatist movements,” all “driving factor[s] for the homeland security market,” by 2018 it could reach $544 billion globally. It is here that U.S. Homeland Security officials, local law enforcement, and border forces from all over the world talk contracts with private industry representatives, exhibit their techno-optimism, and begin to hammer out a future of ever more hardened, up-armored national and international boundaries. The global video surveillance market alone is expected to be a $40 billion industry by 2020, almost three times its $13.5 billion value in 2013. According to projections, 2020 border surveillance cameras will be capturing 3.4 trillion video hours globally. In case you were wondering, that’s more than 340 million years of video footage if you were watching 24 hours a day.
  • ...3 more annotations...
  • It is in the U.S. borderlands that, as anthropologist Josiah Heyman once wrote, the U.S. government’s modern expertise in creating and tracking "a marked population” was first developed and practiced. It involved, he wrote prophetically, “the birth and development of a... means of domination, born of the mating between moral panics about foreigners and drugs, and a well-funded and expert bureaucracy.” You may not be able to watch them at the Border Security Expo, but in those borderlands -- make no bones about it -- the Department of Homeland Security, with its tripartite missions of drug interdiction, immigration enforcement, and the war on terror, is watching you, whoever you are. And make no bones about this either: our borders are widening and the zones in which the watchers are increasingly free to do whatever they want are growing.
  • In March, U.S. Customs and Border Protection (CBP) awarded a $145 million contract to that Israeli company through its U.S. division. Elbit Systems prides itself on having spent “10+ years securing the world’s most challenging borders,” above all deploying similar “border protection systems” to the separation wall between Israel and Palestine. It is now poised to enter U.S. indigenous lands.
  • Now, thanks to the Elbit Systems contract, a new kind of border will continue to be added to this layering.  Imagine part of the futuristic Phoenix exhibition hall leaving Border Expo with the goal of incorporating itself into the lands of a people who were living here before there was a “New World,” no less a United States or a Border Patrol. Though this is increasingly the reality from Brownsville, Texas, to San Diego, California, on Tohono O’odham land a post-9/11 war posture shades uncomfortably into the leftovers from a nineteenth century Indian war.  Think of it as the place where the homeland security state meets its older compatriot, Manifest Destiny.
Paul Merrell

Tomgram: Laura Gottesdiener, Security vs. Securities | TomDispatch - 0 views

www.tomdispatch.com/...ner%2C_security_vs._securities

banksters housing-market foreclosures equity-firms Blackstone Progress-Residential

shared by Paul Merrell on 23 Jun 14 - No Cached
  • I live in Washington, D.C.'s Capitol Hill neighborhood. I can more or less roll out of bed into the House of Representatives or the Senate; the majestic Library of Congress doubles as my local branch. (If you visit, spend a sunset on the steps of the library's Jefferson Building. Trust me.) You can't miss my place, three stories of brick painted Big Bird yellow. It's a charming little corner of the city. Each fall, the trees outside my window shake their leaves and carpet the street in gold. Nora Ephron, if she were alive, might've shot a scene for her latest movie in one of the lush green parks that bookend my block. The neighborhood wasn't always so nice. A few years back, during a reporting trip to China, I met an American consultant who had known Capitol Hill in a darker era. "I was driving up the street one time," he told me, "and walking in the opposite direction was this huge guy carrying an assault rifle. Broad daylight, no one even noticed. That's what kind of neighborhood it was." Nowadays, row houses around me sell for $1 million or more. I rent.
  • Washington's a fun place to live if you're young and employed. But as a recent Washington Post story pointed out, the nation's capital is slowly pricing out even its yuppies who, in their late-twenties and early-thirties, want to start families but can't afford it. "I hate to say it, but the facts show that the D.C. market is for people who are single and relatively affluent," a real estate researcher told the Post. The District's housing boom just won't stop; off go those new and expecting parents to the suburbs. And we're talking about the lucky ones. Elsewhere in the country, vulnerability in the housing market isn't a trend story; it's the norm. The Cedillo family, as Laura Gottesdiener writes today, went looking for their version of the American housing dream and thought they found it in Chandler, Arizona. They didn't know that the house they chose to rent rested on a shaky foundation -- not physically but financially. It had been one of thousands snapped up and rented out by massive investment firms making a killing in the wake of the housing collapse. As Gottesdiener -- who has put the new rental empires of private equity firms on the map for TomDispatch -- shows, the goal of such companies is to squeeze every dime of profit from their properties, from homes like the Cedillos', and that can lead to tragedy.
  • Drowning in Profits A Private Equity Firm, a Missing Pool Fence, and the Price of a Child’s Death By Laura Gottesdiener
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  • Security is a slippery idea these days -- especially when it comes to homes and neighborhoods. Perhaps the most controversial development in America’s housing “recovery” is the role played by large private equity firms. In recent years, they have bought up more than 200,000 mostly foreclosed houses nationwide and turned them into rental empires. In the finance and real estate worlds, this development has won praise for helping to raise home values and creating a new financial product known as a “rental-backed security.” Many economists and housing advocates, however, have blasted this new model as a way for Wall Street to capitalize on an economic crisis by essentially pushing families out of their homes, then turning around and renting those houses back to them. Caught in the crosshairs are tens of thousands of families now living in these private equity-owned homes.
  • The same month that the family rented the house at 1471 West Camino Court, Progress Residential purchased more homes in Maricopa Country than any other institutional buyer. Nationally, Blackstone, a private equity giant, has been the leading purchaser of single-family homes, spending upwards of $8 billion between 2012 and 2014 to purchase 43,000 homes in about a dozen cities. However, in May 2013, according to Michael Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University, Progress Residential bought nearly 200 houses, surpassing Blackstone's buying rate that month in the Phoenix area. The condition and code compliance of these houses varies and is rarely known at the time of the purchase. Mike Anderson, who works for a bidding service contracted by Progress Residential and other private equity giants to buy houses at auctions, was sometimes asked to go out and look at the homes. But with the staggering buying rate -- up to 15 houses a day at the peak -- he couldn’t keep up. “There’d be too many, you couldn’t go out and look at them,” he said. “It’s just a gamble. You never know what you’ve got into.”
  • Global private equity firms have not been, historically, in the business of dealing with pool fences and the other hassles of maintaining single-family houses. But following the housing market collapse, the idea of buying a ton of these foreclosed properties suddenly made sense, at least to investors. Such private-equity purchases were to make money in three ways: buying cheap and waiting for the houses to gain value as the market bounced back; renting them out and collecting monthly rental payments; and promoting a financial product known as “rental-backed securities,” similar to the infamous mortgage-backed securities that triggered the housing meltdown of 2007-2008. Even though the buying of the private equity firms has finally slowed, economists (including those at the Federal Reserve) have expressed concern about the possibility that someday those rental-backed securities could even destabilize -- translation: crash -- the broader market.
  • ince Wall Street was overwhelmingly responsible for the original collapse of the housing market, many have characterized these new purchases as a land grab. In many ways, Progress CEO Donald Mullen is the poster-child for this argument. An investment banker who enjoyed a brief flurry of fame after losing a bidding war to Alec Baldwin at an art auction, he was the leader of a team at Goldman Sachs that orchestrated an infamous bet against the housing market. Known as “the big short,” it allowed that company to make “some serious money“ when the economy melted down, according to Mullen’s own emails. (They were released by the Senate Permanent Subcommittee on Investigations in 2010.) As Kevin Roose of New York magazine has written, “A guy whose most famous trade was a successful bet on the full-scale implosion of the housing market is now swooping in to pick up the pieces on the other end.”
Gary Edwards

The Great Deceiver - The Federal Reserve - 0 views

www.thedailybell.com/...-Deceiver--The-Federal-Reserve

Paul-Craig-Roberts Federal-Reserve-Bankster-Cartel

shared by Gary Edwards on 13 May 14 - No Cached
  • From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds. Certainly Belgium did not have a budget surplus of $141.2 billion. Was Belgium running a trade surplus during a 3-month period equal to 29 percent of Belgium GDP? No, Belgium's trade and current accounts are in deficit. Did Belgium's central bank print $141.2 billion worth of euros in order to make the purchase? No, Belgium is a member of the euro system, and its central bank cannot increase the money supply. So where did the $141.2 billion come from?
  • There is only one source. The money came from the US Federal Reserve, and the purchase was laundered through Belgium in order to hide the fact that actual Federal Reserve bond purchases during November 2013 through January 2014 were $112 billion per month. In other words, during those 3 months there was a sharp rise in bond purchases by the Fed. The Fed's actual bond purchases for those three months are $27 billion per month above the original $85 billion monthly purchase and $47 billion above the official $65 billion monthly purchase at that time. (In March 2014, official QE was tapered to $55 billion per month and to $45 billion for May.) Why did the Federal Reserve have to purchase so many bonds above the announced amounts and why did the Fed have to launder and hide the purchase? Some country or countries, unknown at this time, for reasons we do not know dumped $104 billion in Treasuries in one week.
  • What are the reasons for this deception by the Federal Reserve?
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  • The Fed realized that its policy of Quantitative Easing initiated in order to support the balance sheets of "banks too big to fail" and to lower the Treasury's borrowing cost was putting pressure on the US dollar's value. Tapering was a way of reassuring holders of dollars and dollar-denominated financial instruments that the Fed was going to reduce and eventually end the printing of new dollars with which to support financial markets. The image of foreign governments bailing out of Treasuries could unsettle the markets that the Fed was attempting to soothe by tapering.
  • Its wars and hundreds of overseas military bases could not be financed.
  • Washington's power ultimately rests on the dollar as world reserve currency. This privilege, attained at Bretton Woods following World War 2, allows the US to pay its bills by issuing debt. The world currency role also gives the US the power to cut countries out of the international payments system and to impose sanctions.
  • As impelled as the Fed is to protect the large banks that sit on the board of directors of the NY Fed, the Fed has to protect the dollar. That the Fed believed that it could not buy the bonds outright but needed to disguise its purchase by laundering it through Belgium suggests that the Fed is concerned that the world is losing confidence in the dollar. If the world loses confidence in the dollar, the cost of living in the US would rise sharply as the dollar drops in value. Economic hardship and poverty would worsen. Political instability would rise. If the dollar lost substantial value, the dollar would lose its reserve currency status. Washington would not be able to issue new debt or new dollars in order to pay its bills.
  • A hundred billion dollar sale of US Treasuries is a big sale. If the seller was a big holder of Treasuries, the sale could signal the bond market that a big holder might be selling Treasuries in large chunks. The Fed would want to keep the fact and identity of such a seller secret in order to avoid a stampede out of Treasuries. Such a stampede would raise interest rates, collapse US financial markets, and raise the cost of financing the US debt. To avoid the rise in interest rates, the Fed would have to accept the risk to the dollar of purchasing all the bonds. This would be a no-win situation for the Fed, because a large increase in QE would unsettle the market for US dollars.
  • The withdrawal from unsustainable empire would begin. The rest of the world would see this as the silver lining in the collapse of the international monetary system brought on by the hubris and arrogance of Washington.
  • Gary Edwards on 13 May 14
     
    Incredible.  Since 2009, the Fed has been pumping $85 Billion per month into the Wall Street hedge funds of it's member banks.  Economist Paul Craig Roberts noticed some funny business the past few months regarding the Fed's numbers.  It turns out that while the Fed has been trying to convince the world that they are tapering off on their $85 Billion per month debt printing spree, the truth is just the opposite.  They have increased the debt spree to $112 Billion per month; with the help of a secret money laundering operation involving Belgium! Incredible!
Gary Edwards

The secret corporate takeover of trade agreements | Business | The Guardian - 0 views

www.theguardian.com/...e-takeover-of-trade-agreements

New-World-Order TTP

shared by Gary Edwards on 13 May 15 - No Cached
  • The US and the world are engaged in a great debate about new trade agreements. Such pacts used to be called free-trade agreements; in fact, they were managed trade agreements, tailored to corporate interests, largely in the US and the EU. Today, such deals are more often referred to as partnerships, as in the Trans-Pacific Partnership (TPP). But they are not partnerships of equals: the US effectively dictates the terms. Fortunately, America’s “partners” are becoming increasingly resistant. It is not hard to see why. These agreements go well beyond trade, governing investment and intellectual property as well, imposing fundamental changes to countries’ legal, judicial, and regulatory frameworks, without input or accountability through democratic institutions. Perhaps the most invidious – and most dishonest – part of such agreements concerns investor protection. Of course, investors have to be protected against rogue governments seizing their property. But that is not what these provisions are about. There have been very few expropriations in recent decades, and investors who want to protect themselves can buy insurance from the Multilateral Investment Guarantee Agency, a World Bank affiliate, and the US and other governments provide similar insurance. Nonetheless, the US is demanding such provisions in the TPP, even though many of its partners have property protections and judicial systems that are as good as its own.
  • The real intent of these provisions is to impede health, environmental, safety, and, yes, even financial regulations meant to protect America’s own economy and citizens. Companies can sue governments for full compensation for any reduction in their future expected profits resulting from regulatory changes. This is not just a theoretical possibility. Philip Morris is suing Uruguay and Australia for requiring warning labels on cigarettes. Admittedly, both countries went a little further than the US, mandating the inclusion of graphic images showing the consequences of cigarette smoking. The labeling is working. It is discouraging smoking. So now Philip Morris is demanding to be compensated for lost profits. In the future, if we discover that some other product causes health problems (think of asbestos), rather than facing lawsuits for the costs imposed on us, the manufacturer could sue governments for restraining them from killing more people. The same thing could happen if our governments impose more stringent regulations to protect us from the impact of greenhouse gas emissions.
  • When I chaired Bill Clinton’s council of economic advisers, when he was president, anti-environmentalists tried to enact a similar provision, called “regulatory takings”. They knew that once enacted, regulations would be brought to a halt, simply because government could not afford to pay the compensation. Fortunately, we succeeded in beating back the initiative, both in the courts and in the US Congress. But now the same groups are attempting an end run around democratic processes by inserting such provisions in trade bills, the contents of which are being kept largely secret from the public (but not from the corporations that are pushing for them). It is only from leaks, and from talking to government officials who seem more committed to democratic processes, that we know what is happening.
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  • Fundamental to America’s system of government is an impartial public judiciary, with legal standards built up over the decades, based on principles of transparency, precedent, and the opportunity to appeal unfavourable decisions. All of this is being set aside, as the new agreements call for private, non-transparent, and very expensive arbitration. Moreover, this arrangement is often rife with conflicts of interest; for example, arbitrators may be a judge in one case and an advocate in a related case. The proceedings are so expensive that Uruguay has had to turn to Michael Bloomberg and other wealthy Americans committed to health to defend itself against Philip Morris. And, though corporations can bring suit, others cannot. If there is a violation of other commitments – on labour and environmental standards, for example – citizens, unions, and civil society groups have no recourse. If there ever was a one-sided dispute-resolution mechanism that violates basic principles, this is it. That is why I joined leading US legal experts, including from Harvard, Yale, and Berkeley, in writing a letter to Barack Obama explaining how damaging to our system of justice these agreements are.
  • American supporters of such agreements point out that the US has been sued only a few times so far, and has not lost a case. Corporations, however, are just learning how to use these agreements to their advantage. And high-priced corporate lawyers in the US, Europe and Japan will likely outmatch the underpaid government lawyers attempting to defend the public interest. Worse still, corporations in advanced countries can create subsidiaries in member countries through which to invest back home, and then sue, giving them a new channel to bloc regulations. If there were a need for better property protection, and if this private, expensive dispute-resolution mechanism were superior to a public judiciary, we should be changing the law not just for well heeled foreign companies but also for our own citizens and small businesses. But there has been no suggestion that this is the case.
  • Rules and regulations determine the kind of economy and society in which people live. They affect relative bargaining power, with important implications for inequality, a growing problem around the world. The question is whether we should allow rich corporations to use provisions hidden in so-called trade agreements to dictate how we will live in the 21st century. I hope citizens in the US, Europe and the Pacific answer with a resounding no. Joseph Stiglitz, a Nobel laureate in economics, is a professor at Columbia University. His most recent book, co-authored with Bruce Greenwald, is Creating a Learning Society: A New Approach to Growth, Development, and Social Progress
  • Gary Edwards on 13 May 15
     
    Economist Joseph Stiglitz takes on the TPP (Trans Pacific Partnership) trade agreement, explaining how corporations will use the agreement to side step environmental and regulatory laws of sovereign nations. Amazing stuff. No doubt Wall Street Money is behind these trade agreement. The Banksters are said to own over 40% of the world's corporations and these agreements are designed to establish corporate sovereignty while greatly diminishing state sovereignty. It's the New World Order. "Terms such as 'investor' and 'partner' are taking on new meanings as multinationals manipulate deals to take legal action against sovereign states"
Paul Merrell

Netanyahu's Coalition of the Unwilling « LobeLog - 0 views

www.lobelog.com/hus-coalition-of-the-unwilling

Israel coalition Netanyahu Obama Palestine U.S.-foreign-policy EU

shared by Paul Merrell on 08 May 15 - No Cached
  • After Benjamin Netanyahu’s surprising victory in Israel’s national elections in March, he took until the last possible minute to complete the process of forming the government for his fourth term as Israel’s prime minister. For all the time he invested, despite making it just under the wire, Netanyahu ended up with a fragile, ultra-right-wing coalition and more work ahead of him to bring in at least one more party. The government Netanyahu presented to Israeli President Reuven Rivlin was a bare majority of 61 seats out of the 120-seat Knesset. There are no fig leafs in this coalition, no Tzipi Livni or Ehud Barak for Netanyahu to send to talk fruitlessly with the Palestinians. One might think this would make the coalition more stable, since it consists entirely of the right wing. In this, one would be wrong.
  • Netanyahu is, in fact, desperate to add another party to the coalition because there is so much tension in the current majority, most visibly between Netanyahu’s Likud party and Naftali Bennett’s HaBayit HaYehudi. Likud leaders, including Netanyahu, feel that Bennett essentially held the coalition hostage to his demands. They are quite right about that, but the gambit paid off handsomely for Bennett. HaBayit HaYehudi holds a mere eight seats in the Knesset. Yet Bennett and his party will get four ministries, the deputy defense minister post, as well as the chairs of two key Knesset committees dealing with Israel’s legal system. That is what you get when you play hardball with Netanyahu, a man who likes to talk tough but who is a political creature first and foremost and quickly backs off from a high-stakes fight he is not sure he can win. As things stand, this coalition might not last the year. That is why, after Avigdor Lieberman quit his post as foreign minister and took his greatly diminished party into the opposition, Netanyahu left the post open by keeping that portfolio for himself. In reality, Netanyahu has been the foreign minister all along, so it is not an added burden for him.
  • On the day that Netanyahu was supposed to present his government, he was still eight seats short of a majority. Luckily for Bennett, that was the exact number of seats he controlled and he let Netanyahu know just how lucky he was. Bennett played a game of chicken with Netanyahu, pushing for more and more power within the government and knowing that Bibi was going to have a hard time saying no to anything. Bennett won, and the spoils were vast. The far-right HaBayit HaYehudi party now controls the ministries of education, agriculture, justice, and diaspora affairs. The position of deputy defense minister will also be theirs. It is even worse than it sounds. With the ministry of agriculture comes control over the World Zionist Organization’s Settlement Division, which funds the expansion of settlements. Uri Ariel, perhaps the most extreme pro-settler member of the Knesset, will have that portfolio.
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  • Shaked is certain to work hard to undermine Israel’s fragile legal system. She will also be heading the powerful Ministerial Committee for Legislation and the Judicial Appointments Committee, giving her even more leverage to eliminate a legal system that she sees as a bastion of the left. Moreover, she is very likely to be minister of justice when the next attorney general is appointed. Uri Ariel can be equally certain to press hard for as much settlement expansion—all over the West Bank and, especially, in East Jerusalem—as the available shekels and the defense minister, who will still be Moshe Ya’alon, will allow. I would rather not even think about what Bennett, the new minister of education, is going to do to the minds of Israeli students. Academia is also thought of as a bastion of the left in Israel, and the climate for free thought in Israeli institutions is certainly threatened now.
  • A Question of Longevity The real question about all of this is how long it will last. An ultra-right government like this one is not going to get along well with the Obama administration or most of Europe, although the Republican-led Congress is likely to fall in love with it. Some may hope that this will be a case of things getting so bad that political pressure for improvement must come. Sadly, such is not the history of Israel or of this conflict. Netanyahu will be spending the next few months trying to woo Isaac Herzog into the government, and this is what the whole game comes down to. If Herzog joins and creates a national unity government of 85 seats, this government will survive. The Labor Party, which makes up most of the Zionist Union, is unlikely to provide much of a counter to the right-wing majority. Much more likely is that, as has happened in the past, many of Labor’s Knesset members and other leaders will bolt the party rather than serve as a fig leaf for such a far-right government.
  • If Herzog does not join the government, this fourth Netanyahu government will not outlast Barack Obama’s presidency, and might not even come close. The right wing does not play well together, and it will take nothing more than a few well-timed votes of no-confidence to take down this government even if none of the parties bolts. Even that scenario, however, offers little hope. The last elections were hailed as a comeback for Labor, but the center and left still cannot form a coalition without the Joint List (a coalition of mostly Arab parties), and that remains anathema in Israeli politics. In fact, little changed in the left-right balance in the last elections, and that is showing no signs of turning around. It has never been clearer that positive change in Israel is going to require some sort of meaningful action by the United States and/or Europe. If that does not come, and it does not seem to be on the horizon, disaster looms.
  • Paul Merrell on 08 May 15
     
    The dust settles quickly in Israel. Already -- -- A bill is moving through the Knesset and is expected to pass, permanently annexing the entire Jordan Valley and the Syrian Golan Heights.   --  The Israeli military is conducting large-scale maneuvers in the West Bank. Palestinians are seeing it as prelude to a mass eviction of Palestinians from the Jordan Valley.   -- A large section of East Jerusalem has been walled off with an iron gate, prelude to annexation and expulsion of its Palestinian residents. -- Netanyahu is so desperate for posts to offer another party in the national government that he has introduced legislation in the Knesset which would suspend, until the next government is formed, the limit on the number of cabinet ministers and deputy ministers and to allow ministers without portfolio. The centrist Yesh Atid party has served notice of intent to sue to block the legislation.  
Paul Merrell

The Trans-Pacific Partnership and the Death of the Republic | WEB OF DEBT BLOG - 0 views

ellenbrown.com/...-and-the-death-of-the-republic

trade agreements TPP fast-track Investor-State-DisputeSettlement ISDS legislation

shared by Paul Merrell on 26 Apr 15 - No Cached
  • On April 22, 2015, the Senate Finance Committee approved a bill to fast-track the Trans-Pacific Partnership (TPP), a massive trade agreement that would override our republican form of government and hand judicial and legislative authority to a foreign three-person panel of corporate lawyers. The secretive TPP is an agreement with Mexico, Canada, Japan, Singapore and seven other countries that affects 40% of global markets. Fast-track authority could now go to the full Senate for a vote as early as next week. Fast-track means Congress will be prohibited from amending the trade deal, which will be put to a simple up or down majority vote. Negotiating the TPP in secret and fast-tracking it through Congress is considered necessary to secure its passage, since if the public had time to review its onerous provisions, opposition would mount and defeat it.
  • The most controversial provision of the TPP is the Investor-State Dispute Settlement (ISDS) section, which strengthens existing ISDS  procedures. ISDS first appeared in a bilateral trade agreement in 1959. According to The Economist, ISDS gives foreign firms a special right to apply to a secretive tribunal of highly paid corporate lawyers for compensation whenever the government passes a law to do things that hurt corporate profits — such things as discouraging smoking, protecting the environment or preventing a nuclear catastrophe. Arbitrators are paid $600-700 an hour, giving them little incentive to dismiss cases; and the secretive nature of the arbitration process and the lack of any requirement to consider precedent gives wide scope for creative judgments. To date, the highest ISDS award has been for $2.3 billion to Occidental Oil Company against the government of Ecuador over its termination of an oil-concession contract, this although the termination was apparently legal. Still in arbitration is a demand by Vattenfall, a Swedish utility that operates two nuclear plants in Germany, for compensation of €3.7 billion ($4.7 billion) under the ISDS clause of a treaty on energy investments, after the German government decided to shut down its nuclear power industry following the Fukushima disaster in Japan in 2011.
  • Under the TPP, however, even larger judgments can be anticipated, since the sort of “investment” it protects includes not just “the commitment of capital or other resources” but “the expectation of gain or profit.” That means the rights of corporations in other countries extend not just to their factories and other “capital” but to the profits they expect to receive there.
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  • Under the TPP, could the US government be sued and be held liable if it decided to stop issuing Treasury debt and financed deficit spending in some other way (perhaps by quantitative easing or by issuing trillion dollar coins)? Why not, since some private companies would lose profits as a result? Under the TPP or the TTIP (the Transatlantic Trade and Investment Partnership under negotiation with the European Union), would the Federal Reserve be sued if it failed to bail out banks that were too big to fail? Firestone notes that under the Netherlands-Czech trade agreement, the Czech Republic was sued in an investor-state dispute for failing to bail out an insolvent bank in which the complainant had an interest. The investor company was awarded $236 million in the dispute settlement. What might the damages be, asks Firestone, if the Fed decided to let the Bank of America fail, and a Saudi-based investment company decided to sue?
  • Just the threat of this sort of massive damage award could be enough to block prospective legislation. But the TPP goes further and takes on the legislative function directly, by forbidding specific forms of regulation. Public Citizen observes that the TPP would provide big banks with a backdoor means of watering down efforts to re-regulate Wall Street, after deregulation triggered the worst financial crisis since the Great Depression: The TPP would forbid countries from banning particularly risky financial products, such as the toxic derivatives that led to the $183 billion government bailout of AIG. It would prohibit policies to prevent banks from becoming “too big to fail,” and threaten the use of “fireWalls” to prevent banks that keep our savings accounts from taking hedge-fund-style bets. The TPP would also restrict capital controls, an essential policy tool to counter destabilizing flows of speculative money. . . . And the deal would prohibit taxes on Wall Street speculation, such as the proposed Robin Hood Tax that would generate billions of dollars’ worth of revenue for social, health, or environmental causes.
  • Clauses on dispute settlement in earlier free trade agreements have been invoked to challenge efforts to regulate big business. The fossil fuel industry is seeking to overturn Quebec’s ban on the ecologically destructive practice of fracking. Veolia, the French behemoth known for building a tram network to serve Israeli settlements in occupied East Jerusalem, is contesting increases in Egypt’s minimum wage. The tobacco maker Philip Morris is suing against anti-smoking initiatives in Uruguay and Australia. The TPP would empower not just foreign manufacturers but foreign financial firms to attack financial policies in foreign tribunals, demanding taxpayer compensation for regulations that they claim frustrate their expectations and inhibit their profits.
  • What is the justification for this encroachment on the sovereign rights of government? Allegedly, ISDS is necessary in order to increase foreign investment. But as noted in The Economist, investors can protect themselves by purchasing political-risk insurance. Moreover, Brazil continues to receive sizable foreign investment despite its long-standing refusal to sign any treaty with an ISDS mechanism. Other countries are beginning to follow Brazil’s lead. In an April 22nd report from the Center for Economic and Policy Research, gains from multilateral trade liberalization were shown to be very small, equal to only about 0.014% of consumption, or about $.43 per person per month. And that assumes that any benefits are distributed uniformly across the economic spectrum. In fact, transnational corporations get the bulk of the benefits, at the expense of most of the world’s population.
  • Something else besides attracting investment money and encouraging foreign trade seems to be going on. The TPP would destroy our republican form of government under the rule of law, by elevating the rights of investors – also called the rights of “capital” – above the rights of the citizens. That means that TPP is blatantly unconstitutional. But as Joe Firestone observes, neo-liberalism and corporate contributions seem to have blinded the deal’s proponents so much that they cannot see they are selling out the sovereignty of the United States to foreign and multinational corporations.
  • For more information and to get involved, visit: Flush the TPP The Citizens Trade Campaign Public Citizen’s Global Trade Watch Eyes on Trade
Paul Merrell

OPEC, Russia and the New World Order Emerging | New Eastern Outlook - 0 views

m.journal-neo.org/...rging-new-world-order-emerging

economic-warfare OPEC NWO must-read

shared by Paul Merrell on 28 Sep 15 - No Cached
  • By the day it’s becoming clearer that what I have recently been saying in my writings is coming to be. The OPEC oil-producing states of the Middle East, including Iran, through the skillful mediation of Russia, are carefully laying the foundations for a truly new world order. The first step in testing this will be if they collectively succeed in eliminating the threat to Syria of the Islamic State, and prepare the basis for serious, non-manipulated elections there.
  • In the political, more accurately geo-political sphere, we are now witnessing huge tectonic motion, and destructive it is not. It involves a new attractive force drawing the Middle East OPEC countries, including Saudi Arabia and Iran and other Arab OPEC countries, into what will soon become obvious as a strategic partnership with the Russian Federation. It transcends the huge religious divides today between Sunni Wahhabism, Sufi, Shi’ism, Orthodox Christianity. That tectonic motion will soon cause a political earthquake that well might save the planet from extinction by the endless wars the Pentagon and their string pullers on Wall Street and the military industrial complex and the loveless oligarchs who own them seem to have as their only strategy today.
  • In an interview with the London Financial Times, Russia’s most important oilman, Igor Sechin, CEO of the state-owned Rosneft, confirmed rumors that Saudi Arabia’s monarchy is seeking a formal market-share agreement with Russia, even going so far as offering Russia membership in OPEC, to stabilize world oil markets. In the interview, Sechin, considered one of President Vladimir Putin’s closest allies, confirmed the Saudi offer. The Financial Times (FT) is an influential media owned until this past July by the Pearson Group an asset tied to the Rothschild family who historically also dominate Royal Dutch Shell. The London paper chose to emphasize Sechin’s rejection of the Saudi offer. However, most instructive is to read between the lines of what he said. He told a Singapore commodities conference organized by the FT, “It needs to be recognised that Opec’s ‘golden age’ in the oil market has been lost. They fail to observe their own quotas [for Opec oil output]. If quotas had been observed, global oil markets would have been rebalanced by now.”
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  • Sechin well knows the background to the Saudi oil price war and the fact it was triggered by a meeting between US State Department’s John Kerry and the late Saudi King Abdullah in the desert Kingdom in September 2014, where Kerry reportedly urged the Saudis to crash oil prices. For Kerry the aim was to put unbearable pressure on Russia, then hit by US and EU financial sanctions. For the Saudis, it was a golden opportunity to eliminate the biggest disturbing factor in the OPEC domination of world oil markets–the booming production of US unconventional shale oil that had made the USA the world’s largest oil producer in 2014. Ironically, as Sechin told the FT, the US-Saudi deal and the US financial sanctions have backfired on the US strategists. The Russian ruble lost more than 50% of its dollar value by January 2015. Oil prices similarly fell from $103 a barrel in September 2014 to less than $50 today. But Russian oil production costs are calculated in rubles, not dollars. So, as Sechin states, the dollar cost of Rosneft oil production has dropped dramatically today from $5 a barrel before the sanctions to only $3 a barrel, a level similar to that of Arab OPEC producers like Saudi Arabia. Rosneft is not hurting despite sanctions. USA shale oil by contrast is unconventional and vastly more costly. Industry estimates depending on the shale field and the company, put costs of shale in a range of $60-80 a barrel just to break even. The current ongoing shakeout in the US shale industry and prospects of rising US interest rates dictate the demise of shale oil from the US for years if not decades to come as Wall Street lenders and shale company junk bond investors suffer huge losses.
  • Paul Merrell on 28 Sep 15
     
    A must-read.
Paul Merrell

French and Spanish intelligence aided NSA spying - report - RT News - 0 views

rt.com/...ying-european-intelligence-925

surveillance state NSA France Spain finger-pointing NSA-targets

shared by Paul Merrell on 30 Oct 13 - No Cached
  • Electronic surveillance which the European media and politicians blamed on the NSA was also carried out by their own intelligence services, as part of a wide-ranging allied security effort, according to US officials. European spy agencies collected phone records in war zones and areas outside their borders and shared information with the NSA, US officials said on Tuesday, as part of wider efforts to protect allied soldiers and civilians, according to a report in the Wall Street Journal. This is a markedly different version of events to what has been reported in Europe and throws up questions about the level of European involvement in global surveillance.
  • However, these efforts are separate to the US program which targeted foreign leaders, including Angela Merkel. There has so far been no comment from either the French or Spanish authorities or from the NSA.
  • But James Clapper, the director of National Intelligence said that the notion that the NSA had eavesdropped on the phone calls of 70 million French citizens was false and that the allegations were based on “inaccurate and misleading information regarding US foreign intelligence activities.” But he didn’t provide any other explanation. US intelligence officials have, according to the Wall Street Journal, privately said that the disclosures by the European press put them in a difficult position. They are keen to put the record straight but to do so would expose the activities of their allies’ intelligence activities. US officials also say that the leaked documents that the Le Monde story was based on were not supplied by the NSA, but rather were NSA data received from French intelligence. The US reached the conclusion that the phone records the French had collected were from outside France and were then shared with the NSA. There was a similar story for the documents citied in El Mundo, the officials said. There are considerable diplomatic sensitivities of outing partner services, which the NSA relies on for a considerable amount of intelligence. A public exposure of European complicity may spark domestic outrage in Europe and threaten co-operation with the US in future.
  • Paul Merrell on 30 Oct 13
     
    Finger-pointing by the U.S. Intelligence Community is good news, a strong sign that the Western nation's surveillance conspiracy is fragmenting. When one defendant blames another, their front is no longer united. 
Paul Merrell

U.S. to launch peace talks with Taliban - The Washington Post - 0 views

www.washingtonpost.com/...2-a016-92547bf094cc_story.html

war & peace Afghanistan Pipelinestan negotiations

shared by Paul Merrell on 19 Jun 13 - No Cached
  • The Obama administration will start formal peace talks with the Taliban on Thursday in the Persian Gulf state of Qatar, the first direct political contact between them since early last year and the initial step in what the administration hopes will lead to a negotiated end to the protracted war in Afghanistan. Afghan government representatives are not expected to attend the meeting. But U.S. officials said the United States wants to eventually hand over the process to Afghan President Hamid Karzai and his appointed peace council.
  • For the moment, the opening of the office and the start of formal U.S.-Taliban talks appeared more symbolic than substantive, and the two sides remain far apart on their final objectives. The U.S. goal is for the Taliban to publicly and substantively renounce ties with al-Qaeda, end violence in Afghanistan, recognize the Afghan constitution — including rights for minorities and women — and participate in the democratic process there.The Taliban has demanded the withdrawal of all foreign troops from Afghanistan — including any residual forces the United States and NATO plan to leave after the 2014 withdrawal — and the release of all Taliban detainees. The detainees include five militants being held at the prison in Guantanamo Bay, Cuba, whose release the Taliban has previously sought. The United States has turned over the bulk of its battlefield prisoners in Afghanistan to the Karzai government.
  • Paul Merrell on 19 Jun 13
     
    Lots more detail in the article. 
  • Paul Merrell on 20 Jun 13
     
    I won't bother posting links, but the meeting scheduled to begin negotiations today didn't happen because President Karzai broke off negotiations with the U.S. over bases and U.S. forces to remain after 2014 because the Taliban's new office established in Qatar flew the Taliban's flag which includes the phrase, "Islamic Emirate of Afghanistan," the formal name of the Taliban government before the U.S. invaded. And because a plaque on the office's wall outer wall read, "Political Office of the Islamic Emirate of Afghanistan." Karzai objects that this paints the picture of a government in exile. But that is precisely what the Taliban is. Would one expect the French government in exile during World War II not to fly the pre-war French flag? Karzai is a good little puppet and from time to time has thrown small tantrums in aid of painting himself as a non-puppet. But he usually changes his mind. But he has to watch himself; when the post-Saddam Iraq broke off similar negotiations, Obama took it as an invitation to remove all U.S. troops from Iraq. Karzai knows that he runs the same risk. But according to a Reuters report, the Taliban have removed the plaque and lowered their flag to ground level. Perhaps that will be enough concession for the U.S. to tell Karzai to go along with it. Karzai also says he is upset because the Taliban refused to meet with Karzai's negotiator in the first meetings. But the negotiations are supposedly aimed at bringing the Karzai government into the negotiations soon. Karzai's real problem is that he has no leverage worthy of mention. The U.S. is leaving. The Taliban will resume governing Afghanistan to the extent that nation is governed as a nation (historically, most of Afghanistan's "government" in the last century has been mostly multiple and geographically separate and sometimes combative warlords). I suspect that the best Karzai can hope for is amnesty or exile for himself and friends. Amnesty seems unlikely considering his collab
Gary Edwards

ObamaCare suckers needed, inquire within | RedState - 0 views

www.redstate.com/...-suckers-needed-inquire-within

ObamaCare-TAX ObamaCare-Exchanges Healthcare

shared by Gary Edwards on 21 Jun 13 - No Cached
  • The exchanges need roughly 2.7 million healthy 18-t0-35-year-olds to sign up to be solvent.
  • The majority of that group is nonwhite and male, according to Simas’ data, and a third are located in just three states: California, Texas and Florida.
  • If too few choose to enroll because they don’t know about the law, don’t like it, or feel they don’t need insurance, the exchanges will fail. And so will the law.
  • ...20 more annotations...
  • In other words, ObamaCare needs an army of young dupes to pay through the nose, in order to make this ridiculous program appear solvent while it showers other people with benefits.  
  • It’s a wonder young folks are lining up around the block to pay those 50 to 150 percent increases in their health insurance premiums.
  • he latest Government Accountability Office report says ObamaCare implementation remains months behind schedule, even though the insurance exchanges are supposed to go live in just four months.
  • Under Obamacare, insurance companies can no longer turn away people with preexisting conditions.
  • And so a crucial aspect of implementation is getting enough young, healthy people to enroll to offset the cost of insuring older, less-healthy enrollees.
  • The Congressional Budget Office expects some 7 million people to sign up when the exchanges open on Oct. 1, eventually reaching 22 million.
  •  The embarrassing degeneration of ObamaCare into a wealth transfer program that feeds off healthy people is a perfect inversion of the insurance concept.
  • Normally, the young and hearty folks would pay a low fee for health insurance, because providers would make the reasonable actuarial gamble that most of those customers would not be filing expensive claims.
  • The notion of selling “insurance” to someone with an pre-existing condition, guaranteed to make big claims, would be absurd.  
  •  Older people with higher risks pay more.
  • Instead, we’ve got another corrupt, inefficient redistribution system powered by the liquefied assets of chumps.
  • It’s starting to visibly panic over not being able to pump enough chumps to fill its gas tank.
  • And I do mean corrupt, because it’s not as if most of this money is going to doctors or medical supplies.
  •  Betsy McCaughey, former lieutenant governor of New York, describes the billion dollars flowing into the California health insurance exchange as tax money laundered into Democratic party-building funds:
  • The Obama administration granted a whopping $910 million to California to set up its insurance exchange. That money is not for bandages, surgery, nurses and doctors to care for the sick. Nor is it for insurance plans, though $910 million could buy generous coverage for at least 113,000 people!
  • Shockingly, the $910 million is slated for bureaucracy, including rich compensation packages for exchange employees ($360,000 a year for the executive director) and contracts for computer equipment, public relations and “outreach. “
  • Outreach is the largest expenditure and where the real monkey business occurs.
  • Amazingly, California legislators passed a law that the exchange could keep secret for a year who received the contracts and indefinitely how much they were paid. California’s open-records laws would otherwise prohibit such secrecy.
  • McCaughey describes six- and seven-figure grants to the California NAACP, the Service Employees International Union, the AFL-CIO, and Community Health Councils, “a California organization with a long history of political activism against fracking, for-profit hospitals, state budget cuts and oil exploration.”
  • I can’t imagine why young people are reluctant to plow their money into a racket like this!
  • Gary Edwards on 21 Jun 13
     
    Excellent summary of where ObamaCare sits today.  Obama has to convince millions of young, healthy "chumps" to pay massive amounts of their income into ObamaCare Exchanges if the greatest socialist redistribution plan ever conceived is to continue. "At the White House, health care implementation has become an obsession. Chief of Staff Denis McDonough spends two hours a day on Obamacare implementation, staffers said, and senior aides like Simas and Tara McGuinness, who joined the White House in April as a senior communications adviser, work on the issue nearly full-time. Hardly a week goes by without Obama finding some way to plug the effort as well. The reason: the law is increasingly unpopular. According to an NBC News-Wall Street Journal poll released earlier this month, 49% of Americans now believe the law is a bad idea, the highest percentage recorded, with only 37% saying it is a good thing. Many states have already opted out of key provisions to expand Medicaid. In Washington, Republicans continue to lay siege to the law; they have voted to repeal it 37 times in the U.S. House."
Paul Merrell

The Dynastic Hillary Bandwagon » CounterPunch: Tells the Facts, Names the Names - 0 views

www.counterpunch.org/...the-dynastic-hillary-bandwagon

Auction 2016 Hillary Nader Soros Obama nepotism dynasties

shared by Paul Merrell on 11 Nov 13 - No Cached
  • by RALPH NADER The Hillary Clinton for President in 2016 bandwagon has started very early and with a purpose. The idea is to get large numbers of endorsers, so that no Democratic Primary competitors dare make a move. These supporters include Senator Chuck Schumer (D-NY), financier George Soros and Ready for Hillary, a super PAC mobilizing with great specificity (already in Iowa). Given this early bird launch, it is important to raise the pressing question: Does the future of our country benefit from Hillary, another Clinton, another politician almost indistinguishable from Barack Obama’s militaristic, corporatist policies garnished by big money donors from Wall Street and other plutocratic canyons? There is no doubt the Clintons are syrupy political charmers, beguiling many naïve Democrats who have long been vulnerable to a practiced set of comforting words or phrases camouflaging contrary deeds.
  • Many Wall Streeters like Hillary Clinton. Expecting their ample contributions, and socializing with their business barons, it is not surprising that Hillary Clinton avoids going after the crooked casino capitalism that collapsed the economy, drained investors, pensions, jobs and taxpayer bailouts. Hillary Clinton is a far cry from the stalwart Senator Elizabeth Warren on this towering pattern of unaccountable corporate abuse.
  • A Clinton Coronation two years or more before the 2016 elections will stifle any broader choice of competitive primary candidates and more important a more progressive agenda supported by a majority of the American people.
  • ...1 more annotation...
  • Maybe the sugarcoating is starting to wear. Columnist Frank Bruni, writing in the New York Times (Hillary in 2016? Not so Fast), reports her polls are starting to slump. Apparently, as Bruni suggests, she’s being seen as part of the old Washington crowd that voters are souring on. As I wrote to Hillary Clinton in early summer 2008, when calls were made by Obama partisans for her to drop out, no one should be told not to run. That’s everyone’s First Amendment right. However, not voting for her is the prudent decision.
  • Paul Merrell on 11 Nov 13
     
    Nice rundown by Ralph Nader of Hillary Clinton's many sins against the Progressive wing of the Democratic Party base. On the Clinton dynasty issue, Nader might have noted that daughter Chelsea married a former Goldman Sachs bankster in 2010, now a partner in a hedge fund. Chelsea for President in Auction 2020?
Paul Merrell

Pelosi says Iran deal has the votes, and Podhoretz urges Israel to attack Iran - Mondoweiss - 0 views

mondoweiss.net/...pelosi-podhoretz-israel

war & peace Iranian-nukes-myth Iran-negotiations Congress Pelosi

shared by Paul Merrell on 02 Aug 15 - No Cached
  •      House Minority Leader Nancy Pelosi is “confident” that the House would be able to uphold the president’s veto of a potential Republican-backed bill to kill the deal. “More and more of them have confirmed to me that they will be there to sustain the veto,” Pelosi said at her weekly press conference, referring to members of the Democratic caucus. “They’ve done this not blindly but thoroughly,” as they examined the agreement over recent weeks.
  • House Minority Leader Nancy Pelosi is “confident” that the House would be able to uphold the president’s veto of a potential Republican-backed bill to kill the deal. “More and more of them have confirmed to me that they will be there to sustain the veto,” Pelosi said at her weekly press conference, referring to members of the Democratic caucus. “They’ve done this not blindly but thoroughly,” as they examined the agreement over recent weeks.
  • The fear among major Jewish organizations that they will be drawn into the domestic U.S. political fray over the nuclear deal is prominent in statements released by both the Anti-Defamation League (ADL) and the American Jewish Committee (AJC). Both organizations have refrained from strongly attacking the nuclear agreement and defining it as a disaster, instead leading the public to believe that they instead have misgivings over large parts of the agreement, and that they hope that Congress will review it in depth. The U.S. Reform movement, too, issued a convoluted statement that fell short of taking a decisive stance on the agreement. Norman Podhoretz has never had this problem. He became a neoconservative because he wanted a big U.S. military budget to support Israel. Now he sees the writing on the wall and calls for an Israeli attack on Iran, in wall Street Journal: I remain convinced that containment is impossible, from which it follows that the two choices before us are not war vs. containment but a conventional war now or a nuclear war later.
  • ...3 more annotations...
  • Israelis are waking up to their abandonment by the majority of US Jewry. Sort of the anti-67 War. Haaretz says the lobby is in crisis. Boldface mine: Israel’s consul general in Philadelphia, Yaron Sideman, warned Jerusalem this week that the American Jewish community is divided over the nuclear agreement with Iran, and does not stand united behind Israel in the controversy. The problem is that Israel has burned up its influence over the White House, and US Jews don’t want to be exposed as Israel supporters: a CEO of one of the Jewish federations in the Philadelphia region told [Sideman] that in his view, Israel’s status vis-à-vis the Obama administration is at a low point, which could adversely affect the Jewish community. He cited the Jewish leader telling him, “In the next year and a half (until the end of President Barack Obama’s term) Israel’s and the Jewish communities’ maneuvering space regarding advancing Israel’s interests is extremely limited to non existent.” Even those who oppose the deal are reluctant to come forward because they will be seen to be advancing Israel’s interest over the U.S. interest. Nice play, Netanyahu.
  • Given how very unlikely it is that President Obama, despite his all-options-on-the-table protestations to the contrary, would ever take military action, the only hope rests with Israel. If, then, Israel fails to strike now, Iran will get the bomb. And when it does, the Israelis will be forced to decide whether to wait for a nuclear attack and then to retaliate out of the rubble, or to pre-empt with a nuclear strike of their own. But the Iranians will be faced with the same dilemma. Under these unprecedentedly hair-trigger circumstances, it will take no time before one of them tries to beat the other to the punch. And so my counsel to proponents of the new consensus is to consider the unspeakable horrors that would then be visited not just on Israel and Iran but on the entire region and beyond. The destruction would be far worse than any imaginable consequences of an Israeli conventional strike today when there is still a chance to put at least a temporary halt, and conceivably even a permanent one, to the relentless Iranian quest for the bomb
  • Oh and here is the ultimate chutzpah, right up there with killing your parents and asking for a light sentence because you’re an orphan. In a call to Israel supporters, Bret Stephens says that lawmakers should kill the Iran deal because if they support it, it will haunt them the same way voting for the Iraq war has haunted them. Stephens pushed that disastrous war. Oh and Stephens threatens their financial contributions, too. Glenn Greenwald has the clip:
Paul Merrell

Covington & Burling Gets Eric Holder Back After 6-Year Stopover - 0 views

firstlook.org/...rns-law-firm-lobbies-big-banks

banksters too-big-to-jail Holder revolving-door

shared by Paul Merrell on 07 Jul 15 - No Cached
  • After failing to criminally prosecute any of the financial firms responsible for the market collapse in 2008, former Attorney General Eric Holder is returning to Covington & Burling, a corporate law firm known for serving Wall Street clients. The move completes one of the more troubling trips through the revolving door for a cabinet secretary. Holder worked at Covington from 2001 right up to being sworn in as attorney general in Feburary 2009. And Covington literally kept an office empty for him, awaiting his return. The Covington & Burling client list has included four of the largest banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. Lobbying records show that Wells Fargo is still a client of Covington. Covington recently represented Citigroup over a civil lawsuit relating to the bank’s role in Libor manipulation.
  • Covington was also deeply involved with a company known as MERS, which was later responsible for falsifying mortgage documents on an industrial scale. “Court records show that Covington, in the late 1990s, provided legal opinion letters needed to create MERS on behalf of Fannie Mae, Freddie Mac, Bank of America, JPMorgan Chase and several other large banks,” according to an investigation by Reuters. The Department of Justice under Holder not only failed to pursue criminal prosecutions of the banks responsible for the mortage meltdown, but in fact de-prioritized investigations of mortgage fraud, making it the “lowest-ranked criminal threat,” according to an inspector general report. For insiders, the Holder decision to return to Covington was never a mystery. Timothy Hester, the chairman of Covington, told the National Law Journal that Holder’s return to the firm had been “a project” of his ever since Holder left to the join the administration in 2009. When the firm moved to a new building last year, it kept an 11th-story corner office reserved for Holder.
  • Holder’s critics charge that he made a career out of institutionalizing “Too Big to Prosecute” rules within the department. In 1999, as a deputy attorney general, Holder authored a memo arguing that officials should consider the “collateral consequences” when prosecuting corporate crimes. In 2012, Holder’s enforcement chief, Lanny Breuer, admitted during a speech to the New York City Bar Association that the department may go easy on certain corporate criminals if they believe prosecutions may disrupt financial markets or cause layoffs. “In some cases, the health of an industry or the markets are a real factor,” Breuer said. Rather than face accountability for their failures, the incentive structure of modern Washington is designed to reward both men. Breuer left the department in 2013 to rejoin Covington. Holder is set to become among the highest-earning partners at the firm, with compensation in the seven or eight figures.
Paul Merrell

Hillary Clinton's Wall Street Address | BillMoyers.com - 0 views

billmoyers.com/...y-clintons-wall-street-address

Auction 2016 Hillary Moyers

shared by Paul Merrell on 20 Jun 15 - No Cached
  • And so it was. Secretary Clinton had chosen an ideal setting to link her destiny to the founding father of the modern Democratic Party, Franklin Delano Roosevelt, the political giant whose famous proclamation in 1941 of the Four Freedoms – freedom of speech and worship, freedom from fear and want — defined the essence of American ideals after a devastating economic disaster and as we prepared to enter a great world war.
  • Paul Merrell on 20 Jun 15
     
    Bill Moyers comes out swinging against Hillary. 
Paul Merrell

Eurasian emporium or nuclear war?: Pepe Escobar | Asia Times - 0 views

atimes.com/...um-or-nuclear-war-pepe-escobar

war & peace U.S.-foreign-policy Russia ColdWar2.0 NATO War-Party

shared by Paul Merrell on 09 Apr 15 - No Cached
  • A high-level European diplomatic source has confirmed to Asia Times that German chancellor Angela Merkel’s government has vigorously approached Beijing in an effort to disrupt its multi-front strategic partnership with Russia. Beijing won’t necessarily listen to this political gesture from Berlin, as China is tuning the strings on its pan-Eurasian New Silk Road project, which implies close trade/commerce/business ties with both Germany and Russia. The German gambit reveals yet more pressure by hawkish sectors of the U.S. government who are intent on targeting and encircling Russia. For all the talk about Merkel’s outrage over the U.S. National Security Agency’s tapping shenanigans, the chancellor walks Washington’s walk.  Real “outrage” means nothing unless she unilaterally ends sanctions on Russia. In the absence of such a response by Merkel, we’re in the realm of good guy-bad guy negotiating tactics.
  • The bottom line is that Washington cannot possibly tolerate a close Germany-Russia trade/political relationship, as it directly threatens its hegemony in the Empire of Chaos. Thus, the whole Ukraine tragedy has absolutely nothing to do with human rights or the sanctity of borders. NATO ripped Kosovo away from Yugoslavia-Serbia without even bothering to hold a vote, such as the one that took place in Crimea.
  • In parallel, another fascinating gambit is developing. Some sectors of U.S. Think Tankland – with their cozy CIA ties – are now hedging their bets about Cold War 2.0, out of fear that they have misjudged what really happens on the geopolitical chessboard. I’ve just returned from Moscow, and there’s a feeling the Federal Security Bureau and Russian military intelligence are increasingly fed up with the endless stream of Washington/NATO provocations – from the Baltics to Central Asia, from Poland to Romania, from Azerbaijan to Turkey. This is an extensive but still only partial summary of what’s seen all across Russia as an existential threat: Washington/NATO’s intent to block Russia’s Eurasian trade and development; destroy its defense perimeter; and entice it into a shooting war. A shooting war is not exactly a brilliant idea. Russia’s S-500 anti-missile missiles and anti-aircraft missiles can intercept any existing ICBM, cruise missile or aircraft. S-500s travel at 15,480 miles an hour; reach an altitude of 115 miles; travel horizontally 2,174 miles; and can intercept up to ten incoming missiles. They simply cannot be stopped by any American anti-missile system.
  • ...5 more annotations...
  • Some on the U.S. side say  the  S-500 system is being rolled out in a crash program, as an American intel source told Asia Times. There’s been no Russian confirmation. Officially, Moscow says the system is slated to be rolled out in 2017. End result, now or later: it will seal Russian airspace. It’s easy to draw the necessary conclusions. That makes the Obama administration’s “policy” of promoting war hysteria, coupled with unleashing a sanction, ruble and oil war against Russia, the work of a bunch of sub-zoology specimens. Some adults in the EU have already seen the writing on the (nuclear) wall. NATO’s conventional defenses are a joke. Any military buildup – as it’s happening now – is also a joke, as it could be demolished by the 5,000 tactical nuclear weapons Moscow would be able to use.
  • Of course it takes time to turn the current Cold War 2.0 mindset around, but there are indications the Masters of the Universe are listening – as this essay shows. Call it the first (public) break in the ice. Let’s assume Russia decided to mobilize five million troops, and switch to military production. The “West” would back down to an entente cordiale in a flash. And let’s assume Moscow decided to confiscate what remains of dodgy oligarch wealth. Vladimir Putin’s approval rate – which is not exactly shabby as it stands – would soar to at least 98%. Putin has been quite restrained so far. And still his childishly hysterical demonization persists. It’s a non-stop escalation scenario. Color revolutions. The Maidan coup. Sanctions; “evil” Hitler/Putin; Ukraine to enter NATO; NATO bases all over. And yet reality – as in the Crimean counter coup, and the battlefield victories by the armies of the People’s Republics of Donetsk and Lugansk – has derailed the most elaborate U.S. State Department/NATO plans. On top of it Merkel and France’s Francois Hollande were forced into an entente cordiale with Russia – on Minsk 2 – because they knew that would be the only way to stop Washington from further weaponizing Kiev.
  • Putin is essentially committed to a very complex preservation/flowering process of Russia’s history and culture, with overtones of pan-Slavism and Eurasianism. Comparing him to Hitler does not even qualify as a kindergarten prank. Yet don’t expect Washington neo-cons to understand Russian history or culture. Most of them would not even survive a Q&A on their beloved heroes Leo Strauss and Carl Schmitt. Moreover, their anti-intellectualism and exceptionalist arrogance creates only a privileged space for undiluted bullying. A U.S. academic, one of my sources, sent a letter to Nancy Pelosi copied to a notorious neo-con, the husband of Victoria, the Queen of Nulandistan. Here’s the neo-con’s response, via his Brookings Institution email: “Why don’t you go (expletive deleted)  yourself?” Yet another graphic case of husband and wife deserving each other.
  • At least there seem to be sound IQs in the Beltway driven to combat the neo-con cell inside the State Department, the neo-con infested editorial pages of the Wall Street Journal and the Washington Post, an array of think tanks, and of course NATO, whose current military leader, Gen. Breedlove/Breedhate, is working hard on his post-mod impersonation of Dr. Strangelove. Russian “aggression” is a myth. Moscow’s strategy, so far, has been pure self-defense. Moscow in a flash will strongly advance a strategic cooperation with the West if the West understands Russia’s security interests. If those are violated – as in provoking the bear – the bear will respond. A minimum understanding of history reveals that the bear knows one or two things about enduring suffering. It simply won’t collapse – or melt away.
  • Meanwhile, another myth has also been debunked: That sanctions would badly hurt Russia’s exports and trade surpluses. Of course there was hurt, but bearable. Russia enjoys a wealth of raw materials and massive internal production capability – enough to meet the bulk of internal demand. So we’re back to the EU, Russia and China, and everyone in between, all joining the greatest trade emporium in history across the whole of Eurasia. That’s what Putin proposed in Germany a few years ago, and that’s what the Chinese are already doing. And what do the neo-cons propose? A nuclear war on European soil.
  • Paul Merrell on 09 Apr 15
     
    Merkel is in a poor position to break up Russia-China relations, having blown up the South Stream Pipeline project and playing the U.S. lapdog role on sanctions against Russia, which drove Russia into China's arms. China has been happily switching from Gulf Coast oil supply lines to Russian, given that the U.S. is busily blowing up the Middle East. Moreover, neither Merkel nor the Saudis bring anything to the China de-dollarization play while Russia does.   Follow the link from "This" to see what has Pepe Escobar so freaked out. The U.S. War Party is going nuts with their Cold War 2.0. 
Gary Edwards

Honk if you're paying my mortgage! :: Tim Geithner, What Part Of This Chart Don't You Understand? - 0 views

www.businessinsider.com/art-dont-you-understand-2009-3

financial-crisis obama-socialism shiller-chart real-estate home-values banksters

shared by Gary Edwards on 05 Mar 09 - Cached
  • Gary Edwards on 05 Mar 09
     
    Tim Geithner and Ben Bernanke are still parroting Wall Street's take on the meltdown--that it's a "liquidity crisis," not a "solvency crisis."  The infamous Schiller Chart is a history of Home Values going back to 1890. The Cahrt graphically screams that housing values have to fall another 20% to 30% before they might begin to level out. That is, if the capitalist engine of America's wealth and prosperity is still in existence then.
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