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Turkish-Uyghur Terror Inc. - America's Other Al Qaeda | nsnbc international - 0 views

nsnbc.me/...or-inc-americas-other-al-qaeda war & peace U.S.-foreign-policy Gray-Wolves Turkey Uyghur
shared by Paul Merrell on 28 Sep 15 - No Cached
  • Because it relatively poorly understood and under-reported in comparison to other more notorious terrorist groups, the Turkish-Uyghur terror network is perhaps more dangerous and of greater utility to the United States and its allies presently versus their increasingly exposed Al Qaeda legions. The genesis of modern Turkish-sponsored terrorism, like Al Qaeda, also originates from the Cold War. Part of the wider stay-behind networks known as “Gladios” created by NATO to allegedly fight Soviet forces in the event of a Soviet invasion and occupation of Western Europe, these terrorist groups were instead turned against the population of NATO member states and engaged in violence, terrorism, mass murder, and assassinations. A group of ultra-nationalists known as the “Grey Wolves” would be cultivated for this task within Turkey. In a 1998 LA Times article titled, “Turkish Dirty War Revealed, but Papal Shooting Still Obscured,” it would be reported that (emphasis added):
  • In the late 1970s, armed bands of Gray Wolves launched a wave of bomb attacks and shootings that killed hundreds of people, including public officials, journalists, students, lawyers, labor organizers, left-wing activists and ethnic Kurds. During this period, the Gray Wolves operated with encouragement and protection of the Counter-Guerrilla Organization, a section of the Turkish Army’s Special Warfare Department. Working out of the U.S. Military Aid Mission building in Ankara, the Special Warfare Department received funds and training from U.S. advisors to establish “stay behind” squads of civilian irregulars who were set up to engage in acts of sabotage and resistance in the event of a Soviet invasion. Similar Cold War counter-guerrilla units were created in every member state of the North Atlantic Treaty Organization. But instead of preparing for foreign enemies, these operatives often set their sights on domestic targets. Another LA Times piece titled, “Turkey’s Gray Wolves Nip at Heels of Power,” would reveal the extent of the Grey Wolves reign of terror (emphasis added): At the height of the Cold War, the army used the Gray Wolves as a violent counterweight to Turkish Communists. The party’s coffers swelled with secret contributions from the government.  By the late 1970s, the Gray Wolves had spun out of state control. Their paramilitary wing fought a campaign against leftist rivals that killed nearly 6,000 people. Ali Agca, who shot Pope John Paul II in a 1981 assassination attempt, is alleged to have been affiliated with the party.
  • The article would also reveal that despite this horrific past, the Grey Wolves and their political allies were still a very potent political force in Turkey. Today, the Grey Wolves function as a paramilitary wing of the Nationalist Movement Party (MHP), which holds the third largest number of seats in Turkey’s parliament. As troubling as this should be to Turks who may find themselves on the receiving end of a politically powerful terrorist organization apparently tolerated, even sponsored by NATO for decades and in particular, supported by the United States, the Grey Wolves’ terrorism has branched out far beyond Turkey’s borders. NATO Gladio Goes Global  According to a 2009 New American Media report titled, “Behind the China Riots — Oil, Terrorism & ‘Grey Wolves’,” Turkey’s Grey Wolves have established militant training camps as far as China’s western Xinjiang region, helping produce violent terrorists who have carried out a series of deadly attacks across China. The report would state (emphasis added):
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  • Enter the Grey Wolves, one of the world’s most notorious terrorist organizations. Founded in the 1960s, the Wolves are a pan-Turkic paramilitary group with 1 million followers across the Near East, Central Asia and inside Xinjiang. During the decade of political violence in Turkey in the 1980s, the military-backed activists launched a wave of assassinations, massacres of ethnic minorities, and extortions of businesses. By official count, the Turkish government holds the Wolves responsible for more than 600 murders, while leftists estimate the victims numbered in the many thousands.  Following the collapse of the Soviet Union, the Grey Wolves set up training camps in Central Asia for youths from Turkic language groups, including Uighur. Their indoctrination program embraces the goal of establishing Turan, a Turkish empire across Euro-Asia, subjugating non-Turkish races and unleashing violence to achieve their ends. Out of the limelight, the Wolves provided commando training and material support for the East Turkestan Independence Movement. In essence, NATO’s stay-behind networks had become NATO’s “go-abroad” networks, projecting the same sort of violence, terrorism, and political coercion abroad after the Cold War that these networks carried out domestically during the Cold War.
  • The alleged “struggle” by the Uyghur people in Xinjiang, referred to by the terrorists and their foreign sponsors as “East Turkistan,” consists of two essential components – a foreign harbored political front including the Washington D.C. and Munich-based World Uyghur Congress (WUC) and a militant front clearly backed by the US and NATO through intermediary groups like Turkey’s Grey Wolves. Like the Grey Wolves, the World Uyghur Congress is a creation and perpetuation of Western special interests. WUC is directly funded by the US State Department via the National Endowment for Democracy (NED) over a quarter of a million dollars (on record) a year. The NED admittedly organizes and underwrites all of WUC’s events, and their annual meetings usually feature almost exclusively US representatives reaffirming their commitment to support WUC’s objectives
  • Looking at a map of China it is clear that this campaign of separatism directly serves the long-standing plans of the United States to encircle and contain China’s rise – a campaign that has been openly and repeated outlined in US policy papers for decades – the most recent of which was published by the Council on Foreign Relations (CFR) and was titled, “Revising U.S. Grand Strategy Toward China.” It states in no uncertain terms: Because the American effort to ‘integrate’ China into the liberal international order has now generated new threats to U.S. primacy in Asia—and could result in a consequential challenge to American power globally—Washington needs a new grand strategy toward China that centers on balancing the rise of Chinese power rather than continuing to assist its ascendancy. Encouraging separatism in China’s western Xinjiang region, if successful, would carve off a substantial amount of territory. In conjunction with US-backed separatism in China’s Tibet region, an immense buffer region stands to be created that would virtually isolate China from Central Asia. And while the Grey Wolves and their Uyghur proxies are working hard to create this barrier to China’s west, with their involvement in a recent bombing in Bangkok, it appears the US is now using them to augment efforts to create a similar encirclement across Southeast Asia.
  • The Turkish-Uyghur terror network, in addition to fomenting violence across China, has more recently been trafficking terrorists from Xinjiang, through Southeast Asia, and onward to Turkey where they are staged, armed, trained, and then sent to fight NATO’s proxy war in Syria. This trafficking network apparently snaked its way through Thailand – exposed when Thailand detained over 100 Uyghurs which it then deported upon Beijing’s request back to China in July. On the same day the deportations occurred WUC and NATO’s Grey Wolves organized violent protests in Turkey both in Ankara and at the Thai consulate in Istanbul during which the consulate was invaded and destroyed. A month later, a devastating bomb would detonate in the heart of Bangkok, killing 20 mostly Chinese tourists and injuring over 100 more. In addition to the BBC already being on site before the blast, the British network would conclude even before bodies were cleared from the site that Uyghurs were likely behind the blast. This was done specifically to deflect blame from another US proxy, Thaksin Shinawatra, who has been attempting for years to regain power in Thailand. In reality, Shinawatra and the Uyghur terrorists are both functions of the same Westesrn agenda to encircle and contain China by building up a “wall” of proxy states around Beijing, and if nothing else, to create chaos in which Beijing finds it nearly impossible to prosper.
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Obama halted NSA spying on IMF and World Bank headquarters | Reuters - 0 views

www.reuters.com/...rity-imf-idUSL1N0IL19I20131031 surveillance state NSA NSA-targets economic-intelligence Obama banksters
shared by Paul Merrell on 02 Nov 13 - No Cached
  • (Reuters) - President Barack Obama has ordered the National Security Agency to stop eavesdropping on the headquarters of the International Monetary Fund and World Bank as part of a review of intelligence gathering activities, according to a U.S. official familiar with the matter.
  • The first official said Obama had ordered a halt to such practices within the last few weeks, about the same time he instructed the NSA to curtail eavesdropping on the United Nations headquarters in New York.
  • It is no secret that U.S. spy agencies historically have collected and analyzed information related to economic affairs - in public briefings to Congress, top intelligence officials have discussed assessments of economic issues.But a former senior U.S. intelligence official said that the Obama Administration had put greater emphasis and resources than predecessors into collecting and assessing economic information.In February 2009, shortly after Obama entered the White House, the Central Intelligence Agency began producing a new "Economic Intelligence Brief" for him to review along with the regular President's Daily Brief on international security and threats.Leon Panetta, Obama's first CIA director, said at the time the change was aimed at understanding the implications of the global economic crisis, and that the agency was considering hiring more economic analysts.The former U.S. intelligence official noted that insider detail on economic policy developments - for example, financial crises affecting the economies of European countries such as Greece, Italy and Spain, and the stability of the Euro - is the type of critical information U.S. policymakers welcome.
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  • The desire by U.S. policymakers for such information could help explain why NSA collected information on foreign leaders such as Merkel. Her cellphone number was listed in a NSA targeting document, which German media outlets apparently obtained from Snowden's cache. U.S. officials have now indicated that much NSA eavesdropping on Merkel and other allied leaders is likely to be curtailed if not halted.
  • Paul Merrell on 02 Nov 13
     
    Heaven forbid that anyone should even suspect that the NSA's economic intelligence is also being used by banksters to make investment decisions. No every NSA and NSA contractor staffer can be trusted to never disclose NSA secrets to others... er ... except Edward Snowden and he gave those secrets to journalists, not to banksters. The rest can all be trusted, no matter how much money they are offered. 
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WikiLeaks - NSA Helped CIA Outmanoeuvre Europe on Torture - 0 views

www.wikileaks.org/nsa-germany surveillance state NSA CIA torture Europe
shared by Paul Merrell on 30 Jul 15 - No Cached
  • Central to today's publication is a Top Secret NSA intercept of the communications of Foreign Minister Steinmeier. The intercept dates from just after an official visit to the United States on 29 November 2005, where FM Steinmeier met his US counterpart, Secretary of State Condoleezza Rice. According to the intercept, Steinmeier "seemed relieved that he had not received any definitive response from the U.S. Secretary of State regarding press reports of CIA flights through Germany to secret prisons in eastern Europe allegedly used for interrogating terrorism suspects." The visit occurred in the context of an escalating and ongoing scandal in Europe over clandestine "rendition flights" conducted by the Central Intelligence Agency (CIA) using the airspace and airport facilities of cooperating European countries, in which it was alleged by leading news publications that European citizens and residents had been abducted outside of any legal process and taken to secret "black site" prisons, where they could be tortured with impunity. After the scandal emerged, European governments defied their publics, continuing to cooperate with the United States while denying all knowledge of rendition flights. These denials relied heavily on the insistence of European governments that they had received confidential "diplomatic assurances" from the United States that nothing illegal was taking place. It was subsequently shown in numerous court proceedings and commissions of inquiry that the activity was illegal. At the time of Steinmeier's meeting, reports of CIA rendition flights through Germany had recently emerged, and were publicly dismissed as unconfirmed by German authorities.
  • In the years since 2005, successive investigations by human rights groups and international bodies, such as the Council of Europe, have substantiated that extraordinary rendition was indeed occurring. In 2007 the European Parliament approved a finding in a report by a special investigative committee where it was stated that Germany, among other states, aided or knew about the CIA's extraordinary rendition programme. Prior to becoming Foreign Minister in 2005, Frank-Walter Steinmeier served as Head of Chancellery (Chief of Staff) in the government of Chancellor Gerhard Schroeder, where he was responsible for coordinating the work of German intelligence agencies. In 2004, during this tenure, Khaled El-Masri, a German citizen, was abducted by the CIA and renditioned to a black site in Afghanistan where he was interrogated and tortured for four months. Eventually the CIA realised that it had the wrong "El-Masri", and dumped the German on a desolate road in Albania and began a cover-up. El-Masri's case has been substantiated and confirmed in numerous inquiries, and at the European Court of Human Rights.
  • Today's publication of the 20 target selectors adds to the previous WikiLeaks publication of 125 German numbers targeted by the NSA, showing systematic mass spying on the Chancellor and the Chancellery (All the Chancellor's Men, 8 July) and German politicians and officials handling economic, trade and financial affairs (The Euro Intercepts, 1 July).
  • Paul Merrell on 30 Jul 15
     
    Hmmmm.... I don't remember anything in the Senate Intelligence Committee's published executive summary on CIA torture about the CIA getting an assist from NSA on its rendition and torture projects. 
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Greek referendum: No campaign storms to victory with 61.31% of the vote - as it happene... - 0 views

www.theguardian.com/...nder-way--eu-euro-bailout-live banksters EU Greece Grexit referendum
shared by Paul Merrell on 06 Jul 15 - No Cached
  • IT'S OFFICIAL: NO WINS BY A LANDSLIDE The last ballot paper has just been counted in Greece, and the No campaign have stormed to a dramatic victory. The final result is No: 61.31%, and Yes with 38.69%
  • Paul Merrell on 06 Jul 15
     
    Some analysis from earlier in the day, before the outcome was known. http://nsnbc.me/2015/07/05/if-you-think-the-eurozone-will-be-safe-from-grexit-contagion-think-again/
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The Daily Bell - Doug Casey on the Continuing Debasement of Money, Language and Banking... - 0 views

www.thedailybell.com/...-and-Banking-in-the-Modern-Age Banksters
shared by Gary Edwards on 09 Jul 15 - No Cached
  • This isn't going to last because the way you get wealthy is by producing more than you consume and saving the difference – not by consuming more than you produce, and borrowing the difference. With the Fed keeping interest rates at artificially low levels, hoping to increase consumption, they're making it very foolish to save – when you get ½% or 1% on your savings. So people are saving less and they're borrowing more than they otherwise would. This is a formula for making things worse, not better.
  • They are, idiotically, doing exactly the opposite of what they should be.
  • In point of fact, the Fed should be abolished; the market, not bureaucrats, should determine interest rates. We wouldn't be in this pickle to start with if the government wasn't involved in the economy.
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  • The Chinese, the Japanese – everybody is selling, trying to pass the Old Maid card of US Government debt, which represents return–free risk. Nobody other than the Fed is buying, and interest rates would skyrocket if they stopped. The more QE there is, the more distortions it will cause, however, making for a bigger disaster the longer it goes on.
  • Will the Fed continue to inflate the money supply? Doug Casey: They have to, because with the huge amount of debt in the world – and the amount of debt in the world has increased something like 40 or 50% just since the Greater Depression started – if they don't keep increasing the amount of money in the world then nobody's going to be able to service the huge amount of debt that is out there. So I don't see anything changing in the years to come. They've truly painted themselves into a corner. They're caught between Scylla and Charybdis, and we don't have Odysseus steering the ship of state.
  • Let me say, again, that the Fed serves no useful purpose and it should be abolished. Central banks create "super money" by buying government or other debt with new currency units that they credit to the sellers' accounts at commercial banks. That's the actual engine of inflation.
  • But it's greatly compounded in the commercial banking system through fractional reserve lending – which would not be possible without a central bank. Fractional reserve lending allows banks to multiply the money supply several times.
  • If $100 of Fed super money, freshly created, is deposited in a commercial bank like Chase or Citibank, then $90 can be lent out with a 10% reserve, the current number. That money is redeposited. They'll then lend out 90% of that $90, or $81, and then 90% of that $81, so it multiplies.
  • Central banking and fractional reserve lending go hand-in-hand.
  • Without a central bank, any bank that engaged in fractional reserve banking would be considered guilty of fraud and, when discovered, would be punished by a bank run, followed by criminal charges. The point to be made here is that the entire banking system today is totally unsound and totally corrupt.
  • In a sound banking system you have two types of deposits – checking account (or demand) deposits, and savings account (or time) deposits. They are completely different businesses. With demand deposits, you pay the bank to store your money securely, and write checks against it. A bank should no more lend out demand deposit money than Allied Storage should lend out the furniture you're paying them to store.
  • Savings accounts are completely different. Here you lend money to a bank, perhaps at 3%, and they relend it at 6%, making 3% to cover costs, risks and profits. A sound bank not only has to match the maturities of its deposits with the maturities of its loans, but must insure loans are both highly secured and self-liquidating.
  • These principles have been totally lost. Today banks operate as hedge funds.
  • As an aside, if someone were to set up a well-capitalized 100% reserve bank in a tax haven, especially using gold as an alternative currency, it would be immensely successful in the years to come – when most all conventional banks will fail.
  • By all historical, normal parameters, the stock market is greatly overvalued.
  • The trillions of new currency units that the Fed is creating are creating bubbles, and one of them is in the stock market. The biggest bubble, of course, is in the bond market – that's a super bubble.
  • Not only does the dollar have no real value but the banks you keep it in are all insolvent.
  • There are few sound investments out there. Today there are no investments; there are only speculations.
  • From the economist's point of view, the bubbles created by central banking are a disaster, but from a speculator's point of view they're a godsend. It's becoming harder and harder to be an investor; I define an investor as someone who allocates capital to productive business. It's hard to be an investor because you now have to spend more money on lawyers than on engineers and workers if you want to produce something. You're increasingly forced to be a speculator in today's climate.
  • Stock and bond markets all over the world are overpriced – with the exception of Russian stocks right now; they could be a very interesting speculation. I wouldn't touch anything in China yet, because all the Chinese banks are going to go bust.
  • The Chinese have been more profligate inflating the yuan than the Americans have been with the dollar. It's fantastic what the Chinese have done since Deng liberalized the economy in the early '80s, but now's not a time to be in their markets.
  • You've got to remember there are two types of people in the world: people who want to control material reality and people who want to control other people.
  • It's that second type who go into politics. They play games – here it's called the Great Game, which dignifies it in a way it shouldn't be – with other people's lives and property. It's been this way ever since the state was created about 5,000 years ago, and I don't think you should play games with other people's lives.
  • On the bright side, there are more scientists and engineers alive today than in all of human history put together, and so technology is advancing more rapidly than ever for that reason. That's a huge plus.
  • The second good thing is that the average person, at least those who aren't on welfare, tries to produce more than he consumes. That creates capital.
  • But I'm afraid that Western civilization reached its peak before World War I. World War I destroyed a huge amount of capital and, more importantly, it changed the moral bases of so many things.
  • Then World War II institutionalized the State as the most important part of society – which is perverse, because the state is actually the enemy of civil society.
  • I think Western civilization reached its peak in 1913, when it reached its maximum geographical extent. That was coincidental with the peak of its technological and philosophical influence on the world, much the way the Roman Empire reached its peak at about the end of the first century, then went down, slowly at first and then quickly. That's what's happening to the West.
  • Relative to the rest of the world, and contribution to world production, our piece of the economic pie is getting smaller and smaller. If we have another serious war it would be absolutely smaller, and the final nail in the coffin. Meanwhile, the US, with its bloated military, is just itching for another war. It's out of control, and unlikely to change at this point. That's a big trend that is in motion that I think is going to stay in motion.
  • Europe is in particularly bad shape. The place is a fascist/socialist disaster.
  • It was possible for the average European to keep his head above water through tax evasion in the past, but now those governments have broken bank secrecy everywhere, and it will destroy a lot of capital.
  • The "nation-state" is a really stupid and dysfunctional idea, and I'm glad it's on its way out.
  • That said, even the US, which from a cultural point of view is as much of a country as any place in the world, should actually break up into at least five or six regions.
  • Canada should break up into at least five or six regions initially.
  • I don't think politically; politics is the problem, not the solution. I think that the ideal solution is for every individual to opt out of the current system. When they give a war, you don't come. When they give a tax, you don't pay. When they give an election, you don't vote. You even try not to use their currency and their banking system. T
  • he ideal thing is to let the system collapse under its own weight as opposed to starting a new political party and then continuing to act politically, which is to say to use force on other people.
  • Market risk is huge today, but political risk is even bigger. One indication of that was, when the banks in Cyprus went bust some months ago, the government essentially confiscated everybody's account above 100,000 euros, in what they called a "bail-in."
  • You need several options. It seems like people haven't learned anything from what happened in Russia in 1917, Germany in 1933, China in 1948, Cuba in 1959, or Vietnam in 1975. Rwanda, Cambodia, Yugoslavia, Zimbabwe, Ukraine, Syria ... there are lots of examples and these things can and will eventually happen almost everywhere. When the chimpanzees go crazy, you don't want to be where they are. You've got to have a Plan B. You've got to have a crib out of that political jurisdiction. Acting like a plant, and staying put, isn't a good survival strategy for a human.
  • Gary Edwards on 09 Jul 15
     
    "Doug Casey: I don't see a real recovery until they stop debasing the currency, radically cut government spending and taxation and eliminate most regulation. In other words, cease doing the things that caused this depression. And that's not going to happen until there's a collapse of the current order. Things have cyclically improved since the height of the crisis of 2008-09. The trillions of currency units created by the Federal Reserve have jammed the stock market higher and kept the big banks from going under. What surprises me is that retail prices have not moved as significantly as I would have expected. The reason, I believe, is that most of that money is still sitting in financial institutions. It has gone into cash out of fear, into stocks because they represent real wealth with earning power and into various speculative assets like artwork and collectible cars. Real estate has recovered somewhat, not because of strong fundamentals but strictly because of money creation. This isn't going to last because the way you get wealthy is by producing more than you consume and saving the difference - not by consuming more than you produce, and borrowing the difference. With the Fed keeping interest rates at artificially low levels, hoping to increase consumption, they're making it very foolish to save - when you get ½% or 1% on your savings. So people are saving less and they're borrowing more than they otherwise would. This is a formula for making things worse, not better. They are, idiotically, doing exactly the opposite of what they should be. Although, I hasten to add, I hate to pontificate on what the Fed "should" do. In point of fact, the Fed should be abolished; the market, not bureaucrats, should determine interest rates. We wouldn't be in this pickle to start with if the government wasn't involved in the economy. In fact, if it wasn't for the state, I suspect we'd all have a vastly higher standard of living, and would be colonizing the Moon, Mars and
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Britain takes axe to spending in new austerity drive - Yahoo News - 0 views

news.yahoo.com/landmark-budget-081513190.html economy UK austerity
shared by Paul Merrell on 10 Jul 15 - No Cached
  • British finance minister George Osborne unveiled fresh austerity measures Wednesday to slash debt, evoking the plight of crisis-hit Greece in the first purely Conservative budget for almost two decades. Chancellor of the Exchequer Osborne drastically cut welfare spending to honour campaign promises to forge ahead with austerity, which saw his centre-right Conservative party sweep to an unexpected majority in a May general election and return David Cameron as prime minister.Speaking to lawmakers in his post-election budget statement to parliament, Osborne said welfare spending would be slashed by an accumulated total of £12 billion ($18.4 billion, 16.6 billion euros) by the end of parliament in five years' time. At the same time, the government will introduce a "national living wage" that could reach £9.0 an hour by 2020 that will apply to workers only aged 25 and over. That compares with the current national minimum wage of £6.50 an hour for those aged 21 and over, which will continue to exist alongside the "living wage."
  • n all, the government plans to save £37 billion over the next five years: £12 billion from welfare cuts, £5 billion from tax changes and reducing evasion, and the rest largely from cuts to government departments, Osborne said.
  • Osborne confirmed there would be no change to income tax thresholds or value added taxation (VAT) for at least five years.Corporation tax, levied on business profits, will be reduced from 20 percent to 19 percent in 2017 and 18 percent by 2020.
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Time for the Nuclear Option: Raining Money on Main Street | WEB OF DEBT BLOG - 0 views

ellenbrown.com/...n-raining-money-on-main-street economy financial-stimulus printing-press
shared by Paul Merrell on 24 Sep 15 - No Cached
  • Predictions are that we will soon be seeing the “nuclear option” — central bank-created money injected directly into the real economy. All other options having failed, governments will be reduced to issuing money outright to cover budget deficits. So warns a September 18 article on ZeroHedge titled “It Begins: Australia’s Largest Investment Bank Just Said ‘Helicopter Money’ Is 12-18 Months Away.” Money reformers will say it’s about time. Virtually all money today is created as bank debt, but people can no longer take on more debt. The money supply has shrunk along with people’s ability to borrow new money into existence. Quantitative easing (QE) attempts to re-inflate the money supply by giving money to banks to create more debt, but that policy has failed. It’s time to try dropping some debt-free money on Main Street. The Zerohedge prediction is based on a release from Macqurie, Australia’s largest investment bank. It notes that GDP is contracting, deflationary pressures are accelerating, public and private sectors are not driving the velocity of money higher, and central bank injections of liquidity are losing their effectiveness. Current policies are not working. As a result:
  • There are several policies that could be and probably would be considered over the next 12-18 months. If private sector lacks confidence and visibility to raise velocity of money, then (arguably) public sector could. In other words, instead of acting via bond markets and banking sector, why shouldn’t public sector bypass markets altogether and inject stimulus directly into the ‘blood stream’? Whilst it might or might not be called QE, it would have a much stronger impact and unlike the last seven years, the recovery could actually mimic a conventional business cycle and investors would soon start discussing multiplier effects and positioning in areas of greatest investment.  Willem Buiter, chief global economist at Citigroup, is also recommending “helicopter money drops” to avoid an imminent global recession, stating: A global recession starting in 2016 led by China is now our Global Economics team’s main scenario. Uncertainty remains, but the likelihood of a timely and effective policy response seems to be diminishing. . . . Helicopter money drops in China, the euro area, the UK, and the U.S. and debt restructuring . . . can mitigate and, if implemented immediately, prevent a recession during the next two years without raising the risk of a deeper and longer recession later.
  • In the UK, something akin to a helicopter money drop was just put on the table by Jeremy Corbyn, the newly-elected Labor leader. He proposes to give the Bank of England a new mandate to upgrade the economy to invest in new large scale housing, energy, transport and digital projects. He calls it “quantitative easing for people instead of banks” (PQE). The investments would be made through a National Investment Bank set up to invest in new infrastructure and in the hi-tech innovative industries of the future. Australian blogger Prof. Bill Mitchell agrees that PQE is economically sound. But he says it should not be called “quantitative easing.” QE is just an asset swap – cash for federal securities or mortgage-backed securities on bank balance sheets. What Corbyn is proposing is actually Overt Money Financing (OMF) – injecting money directly into the economy. Mitchell acknowledges that OMF is a taboo concept in mainstream economics. Allegedly, this is because it would lead to hyperinflation. But the real reasons, he says, are that: It cuts out the private sector bond traders from their dose of corporate welfare which unlike other forms of welfare like sickness and unemployment benefits etc. has made the recipients rich in the extreme. . . . It takes away the ‘debt monkey’ that is used to clobber governments that seek to run larger fiscal deficits.
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  • Tim Worstall, writing in the UK Register, objects to Corbyn’s PQE (or OMF) on the ground that it cannot be “sterilized” the way QE can. When inflation hits, the process cannot be reversed. If the money is spent on infrastructure, it will be out there circulating in the economy and will not be retrievable. Worstall writes: QE is designed to be temporary, . . . because once people’s spending rates recover we need a way of taking all that extra money out of the economy. So we do it by using printed money to buy bonds, which injects the money into the economy, and then sell those bonds back once we need to withdraw the money from the economy, and simply destroy the money we’ve raised. . . . If we don’t have any bonds to sell, it’s not clear how we can reduce [the money supply] if large-scale inflation hits.
  • The problem today, however, is not inflation but deflation of the money supply. Some consumer prices may be up, but this can happen although the money supply is shrinking. Food prices, for example, are up; but it’s because of increased costs, including drought in California, climate change, and mergers and acquisitions by big corporations that eliminate competition. Adding money to the economy will not drive up prices until demand is saturated and production has hit full capacity; and we’re a long way from full capacity now. Before that, increasing “demand” will increase “supply.” Producers will create more goods and services. Supply and demand will rise together and prices will remain stable. In the US, the output gap – the difference between actual output and potential output – is estimated at about $1 trillion annually. That means the money supply could be increased by at least $1 trillion annually without driving up prices.
  • If PQE does go beyond full productive capacity, the government does not need to rely on the central bank to pull the money back. It can do this with taxes. Just as loans increase the money supply and repaying them shrinks it again, so taxes and other payments to the government will shrink a money supply augmented with money issued by the government. Using 2012 figures (drawing from an earlier article by this author), the velocity of M1 (the coins, dollar bills and demand deposits spent by ordinary consumers) was then 7. That means M1 changed hands seven times during 2012 – from housewife to grocer to farmer, etc. Since each recipient owed taxes on this money, increasing M1 by one dollar increased the tax base by seven dollars. Total tax revenue as a percentage of GDP in 2012 was 24.3%. Extrapolating from those figures, $1.00 changing hands seven times could increase tax revenue by $7.00 x 24.3% = $1.70. That means the government could, in theory, get more back in taxes than it paid out. Even with some leakage in those figures and deductions for costs, all or most of the new money spent into the economy might be taxed back to the government. New money could be pumped out every year and the money supply would increase little if at all.
  • Besides taxes, other ways to get money back into the Treasury include closing tax loopholes, taxing the $21 trillion or more hidden in offshore tax havens, and setting up a system of public banks that would return the interest on loans to the government. Net interest collected by U.S. banks in 2014 was $423 billion. At its high in 2007, it was $725 billion. Thus there are many ways to recycle an issue of new money back to the government. The same money could be spent and collected back year after year, without creating price inflation or hyperinflating the money supply. This not only could be done; it needs to be done. Conventional monetary policy has failed. Central banks have exhausted their existing toolboxes and need to explore some innovative alternatives.
  • Paul Merrell on 24 Sep 15
     
    Debt having failed as a method of money creation leads us back to the printing press method. But on whom are those helicopters to drop their new money? And how to we ensure that the banksters are not among them?
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Thoughts from the Frontline : Six Impossible Things by John Mauldin - 0 views

www.2000wave.com/article.asp financial-crisis euro-crisis obammunism economic-rules identity-equation banksters
shared by Gary Edwards on 05 Jun 10 - Cached
  • Gary Edwards on 05 Jun 10
     
    Funny but a year ago we were hearing quite a bit of noise about the "End of Capitalism".  Today, the world is looking at the "End of Socialism".  How quickly things change. Six Impossible Things I have written several letters over the years about the basic economic equation GDP = C + I + G + (Net Exports) Which is to say, that Gross Domestic Product in a country is equal to total Consumption (personal and business) plus Investments plus Government Spending plus next exports. This equation is known as an identity equation. It is true for all countries and times. Now, gentle reader, I am going to spare you a few pages of algebra and cut to the chase. Let's divide a country's economy into three sections, private, government and exports. If you play with the variables a little bit you find that you get the following equation. Domestic Private Sector Financial Balance + Governmental Fiscal Balance - the Current Account Balance (or Trade Deficit/Surplus) = 0 This equation was introduced to you a few months ago in an Outside the Box written by Rob Parenteau. We are going to review this briefly, as it is VERY important. Paragraphs in quotes will be from that letter. As Rob noted, "...keep in mind this is an accounting identity, not a theory. If it is wrong, then five centuries of double entry book keeping must also be wrong." By Domestic Private Sector Financial Balance we mean the net balance of business and consumers. Are they borrowing money or paying down debt? Government Fiscal Balance is the same: is the government borrowing or paying down debt? And the Current Account Balance is the trade deficit or surplus. The implications are simple. The three items have to add up to zero. That means you cannot have both surpluses in the private and government sectors and run a trade deficit. You have to have a trade surplus.
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Peter Schiff of Euro Pacific Gets it Right - 0 views

andrewsullivan.theatlantic.com/...vindication.html soros economy politics financial-crisis Peter-Schiff banksters
shared by Gary Edwards on 18 Nov 08 - Cached
  • Gary Edwards on 18 Nov 08
     
    A YouTube montage of Peter Schiff's comments and predicitons on Fox Business News startign back in 2006. Peter called it exactly right, correctly identifying that mortgages and falling home values would cause a global economic collapse. Incredible foresight.
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Disaster Averted? Not! The Back Story on the Debt Limit | Experts' Corner | Big Think - 0 views

bigthink.com/39713 Banksters Chicomms China-USA-debt Autry-Navarro Death-by-China
shared by Gary Edwards on 12 Aug 11 - No Cached
  • You see, it is an extremely important but little known fact that China's currency peg -- the #1 trade cheat the Dragon uses to vacuum jobs out of the USA -- actually compels them to loan us money no matter how loudly they insist that that they have a choice of investments. It works like this: American's proclivity to take both the wages from our Democratic stimulus job and the checks from our Republican tax refunds down to Wal-Mart for another cart full of Chinese products, not only creates more jobs in Guangzhou than it does Milwaukee but also leaves China bursting with US dollars. The Chinese government then soaks up a lot of those bucks from companies like Huawei by selling short term, high yield bonds that pay back in Yuan. They then march those dollars right back to the US treasury. In fact, they pay MORE to get the dollars out of private hands in China than they earn on the increasingly risky bet they are making in US debt! At this point you should be thinking, "WTF?"
  • If China's firms were allowed to trade their dollars for Chinese Yuan on the foreign exchanges, the dollar would fall against the Yuan and undermine China's unfair 40% advantage against every American (and European and Asian) product. If they trade those bucks for some other currency, like the Euro, the dollar is still being sold and it still falls, plus China's growth draws a them right back in searching to buy Yuan, which would then rise. If China purchases products or commodities on the open markets, those dollars would still be exchanged, the greenback would drop to competitive levels, the Yuan would rise to its real purchasing power and Americans would go back to work making things.
  • Wishing to avoid that horror of horrors at all costs, the Boys from Beijing must hold their noses and throw another billion good dollars after bad into the pit of the US treasury.
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  • Like Frodo's ring of power, the dollar can only be destroyed where it was created.
  • So when the President and the Congress reluctantly shake hands over this deal to avert disaster, understand that they have in great part only agreed to fuel the fire that has been burning down America's jobs factory for years, and thereby undermining government revenues and creating the apparent need for constant stimulus. 
  • So far, borrowing is the only way these folks of wee little imagination can see to sustain both the President's exorbitant level of spending and the Republican's stubborn pledge against tax increases.
  • The obvious solutions eludes them, which is either to stop borrowing from communist criminals and borrow at higher interest rates from Americans, or slap a significant tariff on China until they drop their currency peg and illegal trade barriers
  • The last decade of ultra low-interest rates, government stimulus efforts, and engagement with Communist China have clearly been an unmitigated disaster for the US economy.
  • Is anyone in DC listening?
  • Gary Edwards on 12 Aug 11
     
    Excellent article written by Peter Navarro and Greg Autry, authors of "Death by China: Confronting the Dragon -- A Global Call to Action". The authors explain why China MUST continue to buy US Treasuries regardless of the low rate of return and extremely high risk of default or ravage by inflation through the destruction of the dollar.  Very interesting.  But the game China is playing really looks unsustainable. The one thing the authors don't touch is the role International Banksters and their New World Corporations have played in this assault on American propserity.  I guess i have to get the book!   One last point; having worked for a Chinese Corporation desiring to enter the USA-European information technology markets, i don't doubt for a moment that Autry and Navarro have this exactly right.  We are at war, with Chicomms providing the shock troops for this latest Bankster - Bankster Corp assault on our liberty.
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Bruce Krasting: The Fed bombed the market - I ask, "Why?" - 1 views

brucekrasting.blogspot.com/...d-bombed-market-i-ask-why.html Banksters Zero-Hedge Collapse-Euro banksters
shared by Gary Edwards on 19 Aug 11 - No Cached
  • Gary Edwards on 19 Aug 11
     
    This is an interesting post.  The WSJ published an article yesterday claiming that the Federal Reserve Bankster Cartel was looking at European Banksters and assessing the quality of "funding positions" and asset status for their USA branch operations.  The Fed Banksters are also consulting with EU regulators about European Bankster concerns. The WSJ article (http://on.wsj.com/nugr7s) triggered a massive market crash on Thursday.  Over $2 Trillion was washed away in the panic following the publication of this WSJ story.  That's on top of the $6 Trillion lost following the Obama Debt-Man-Walking deal with Congress. But here's where it gets interesting.  Bruce Krasting contacted Zero Hedge's Tyler Durden and got this reply; "the story is a Fed plant". Tyler Durden believes that the Feds want to create a world economic crisis to justify a massive QE3 where tens of trillions of dollars would be created and distributed to the worlds Banksters.  This follows the $16.1 Trillion created and distributed to the world's Banksters in 2009 - 2010 under QE1 and QE2. Incredible.  Just a few days ago Republican presidential candidate Gov Rick Perry warned the Fed Banksters not to flood the market with a new QE3.  No doubt what Perry has in mind is that the Fed will flood the world's economy with dollars, debasing the currency even further, but providing a phony and very temporary veil of prosperity - just enough to get Obama into a second term.   Not a bad concept for the Banksters since Obam has proven himself time and again as the bes tfriend the Banksters have ever had.  Obama has overseen the transfer of over $23 Trillion of USA taxpayer debt to the world Bankster community.
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The Looting Of America: The Federal Reserve Made $16 Trillion In Secret Loans To Their ... - 0 views

endoftheamericandream.com/...uption-that-has-been-uncovered
shared by Gary Edwards on 28 Sep 11 - No Cached
  • If the federal government shut down the Federal Reserve system, started issuing debt-free money and established a new system based on sound financial principles we might have a chance of turning this thing around.
    • Gary Edwards
      Gary Edwards on 28 Sep 11
       
      Presidents Lincoln, Kennedy and Reagan all thought they could issue silver certificates from the US Treasury.  Only Reagan lived to tell about his once and future ambition, but even that was a close call. 1/4" from his heart to be exact.
    • Gary Edwards
      Gary Edwards on 28 Sep 11
       
      An interesting side note is that Sadam Hussein, Hitler, and Quadafi shared more than just tyrannical blood lust.  They each defied the world order of international Banksters by threatening to create hard currencies.  Sadam wanted to be paid for his oil in Euro's denominated in gold and silver equivalencies rather than dollar denominated contractual agreements.  Meaning, whatever the prive of gold/silver is on a given day instead of whatever the dollar contracts specify.  Hitler ended the Wiemar fiat currency and moved to a hard Deutch Mark based on Bankster gold used to lauch the national socialist movement (the Banksters also famously funded Lenin's international communist revolution).  And it's well known that Quadafi tried to convince the congress of African nations to move off the dollar/euro fiat currencies to a hard gold/silver backed African currency initially launched through the trade of oil, diamonds and yellow cake commodities. One thigns for sure.  The Banksters are very good at stirring nationalist sentiment, and using these militaries to defeat those who would defy their control of the worlds money.
  • “”If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation,the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” – Thomas Jefferson
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Europe and Ukraine: A tale of two elections - RT Op-Edge - 0 views

rt.com/...161664-elections-in-eu-ukraine Auction-2014 EU Ukraine
shared by Paul Merrell on 28 May 14 - No Cached
  • Circumstances surrounding the European and Ukrainian elections were far from being a mere coincidence. The regime changers in Kiev decided to hold a presidential election on May 25, the same day as European Parliament elections, in order to demonstrate their desire to follow a European-centric foreign policy.
  • Way beyond the established fact of an Atlantic push against Russian western borderlands, Ukraine remains a catfight of local oligarchies. No wonder the new Ukrainian president is also an oligarch; the 7th wealthiest citizen in the land, who owns not just a chocolate empire, but also automotive plants, a shipyard in Crimea and a TV channel. The only difference is that he’s a NATO oligarch
  • Meanwhile, in NATOstan, local and transnational elites have been desperately trying to spin a measure of success. Abstention remains notable – only roughly 4 in 10 Europeans take the trouble to vote on what goes on in Strasbourg, with a majority alienated enough to legitimize the mix of internal European austerity and international belligerence.
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  • Hardly discussed in the pre-vote campaigns were the Snowden NSA revelations; the shady negotiations between Washington and Brussels over a free trade agreement which will be a boon for US Big Business; and how the financial casino supervised by the European Central Bank, the IMF, and the European Commission (EC) will remain untouched, further ravaging the European middle classes. The anti-EU crowd performed very well in France, the UK, Denmark and Greece. Not so well in Italy and the Netherlands. The mainstream did relatively well in Germany and ultraconservative Spain – even though losing votes to small parties.
  • Essentially, European voters said two things out loud: either “the EU sucks,” or “we couldn’t care less about you, Eurocrat suckers.” As if that sea of lavishly pensioned Brussels apparatchiks – the Eurocrats - would care. After all, their mantra is that “democracy” is only good for others (even Ukrainians…) but not for the EU; when the European flock of sheep votes, they should only be allowed to pick obscure Brussels-peddled and Brussels-approved treaties. Brussels, anyway, is bound to remain the Kafkaesque political epitome of centralized control and red tape run amok. No wonder the EU is breathlessly pivoting with itself as the global economy relentlessly pivots to Asia.
  • To believe that an EU under troika austerity will bail Kiev out of its massive outstanding debts is wishful thinking. The recipe - already inbuilt in the $17 billion IMF “rescue” package is, of course, austerity. Oligarchs will remain in control, while assorted plunderers are already lining up. Former US Secretary of State Madeleine Albright – for whom hundreds of thousands of Iraqi children were expendable – “observed” the elections, and most of all observed how to privatize Telecom Ukraine, as she is doing now with Telekom Kosovo. There’s no evidence Right Sector and Svoboda will cease to be crypto-fascist, racist and intolerant just because Poroshenko – the King of Ukrainian Chocolate – is now the president. By the way, his margin for maneuver is slim, as his own markets – not to mention some of his factories – are in Russia. Heavy industry and the weapons industry in eastern Ukraine depend on Russian demand. It would take at least a whopping $276 billion for the West to “stabilize” eastern Ukraine. The notion of the EU “saving” Ukraine is D.O.A.
  • Moscow, once again, just needs to do what it is doing: nothing. And make sure there will be no economic or political help unless a federalized – and Finlandized - Ukraine with strong regions sees the light of day. Even the Brookings Institution has reluctantly been forced to admit that the US neo-con gambit has failed miserably; there’s no Ukraine without Russian help.
  • Signs so far are mixed. Poroshenko said Ukraine could “possibly” become an EU member state by 2025 (it won’t happen). He ruled out entering NATO (wise move). He rejects federalization (dumb move). He believes that with a strong economy Crimea would want to be back (wishful thinking). Still, he believes in reaching a compromise with Moscow (that’s what Moscow always wanted, even before regime change).
  • Back in NATOstan, there’s the crucial point of what happens to the ultra-right-wing anti-EU brigade in the Parliament in Strasbourg. They may all abhor the EU, but the fact is this ideological basket case will hardly form an alliance.
  • What this ultimately means is that conservative and moderate parties, as per the status quo, will remain in control, expressed via an extremely likely coalition of the European People’s Party (center-right) and the Socialists and Democrats (center-left). What comes next, in the second half of 2014, is the appointment of a new EU Commission. That’s Kafka redux, as in the bureaucrat-infested executive arm of the EU, which shapes the agenda, sort of (when it’s not busy distributing subventions in color-coded folders for assorted European cows.) There are 5 candidates fighting for the position of EC president. According to the current EU treaty, member states have to consider the result of EU Parliament elections when appointing a new president. Germany wants a conservative. France and Italy want a socialist. So expect a tortuous debate ahead to find who will succeed the spectacularly mediocre Jose Manuel Barroso. The favorite is a right-winger of the European People’s Party, former Prime Minister of Luxembourg Jean-Claude Juncker. He is an avid defender of banking secrecy while posing himself as a champion of “market social economy.”
  • Then there’s more Kafka: choosing the new president of the EU Council and the High Representative for Foreign Affairs. Translation: the EU won’t decide anything, or “reform” anything for months. That includes the critical negotiations with the Americans over the free trade deal. It’s absolutely impossible to spin these Sunday elections as not discrediting even more the EU project as it stands. As I’ve seen for myself, since early 2014, in 5 among the top EU countries, what matters for the average citizen is as follows: how to deal with immigration; how to fight the eradication of the welfare state; the implications of the free trade agreement with the US; the value of the euro –including an absurdly high cost of living; and what the ECB mafia is actually doing to fight unemployment.
  • With Kafka in charge for the foreseeable future, what’s certain is that Paris and Berlin will drift further and further apart. There will be no redesign of the EU’s institutions. And the next Parliament, filled with sound and fury, will be no more than a hostage of the devastating, inexorable political fragmentation of Europe. “Saving” Ukraine? What a joke. The EU cannot even save itself.
  • Paul Merrell on 28 May 14
     
    Pepe Escobar's take on the Presidential election in Ukraine and the EU-wide national election of EU Parliament members, both held on the same day. Excerpts only highlighted.  
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The Perfect Storm In Turkey - Corruption Conflict Conspiracy | Scoop News - 0 views

www.scoop.co.nz/...uption-conflict-conspiracy.htm Turkey coup NATO al-Qaeda Syria corruption
shared by Paul Merrell on 05 Jan 14 - No Cached
  • The Republic of Turkey is consumed by intense conflict, conspiracy charges, and underlying financial problems that simply won't go away. A perfect storm is brewing in Turkey.
  • Prime Minister Recep Tayyip Erdogan's government and supporters are charged with a secret gold-for-oil deal with Iran. The deal, in violation of trade sanctions against Iran, enriched the PM's ministers and other key supporters involved (including the PM's son), according to prosecutors. The deal also involved misreporting billions of dollars in trade, which, in turn, resulted in Turkey overstating national income and understating its current account deficit. A more ominous charge focuses on Erdogan's open support of a wealthy Saudi known for funding al Qaeda and the PM's alleged support of Al Qaeda fighters engaged against the Syrian government. Just today, we say this headline: Turkish governor blocks police search on Syria-bound truck reportedly carrying weapons . Erdogan is a strong supporter of the Syrian rebels, assumed recipients of the weapons.The crisis started on December 17, 2013 when dozens of Erdogan's close associates were arrested for corruption. The arrests included the CEO of Turkey's state bank caught with million in euros stuffed in shoeboxes. Charges and arrests continued. Prosecutors and police who handled the case were fired at the behest of the Prime Minister. The Turkish supreme court ruled that the government couldn't interfere with police investigations through firings and intimidation. Undeterred, Erdogan fired more prosecutors claiming the charges were an attack on the Turkish state. To top it all off, authorities banned reporters from police stations and pressured the media to stop focusing on the scandals.
  • The risks to Erdogan are substantial and can impact the entire nation.The two biggest concerns are Erdogan's ongoing support for Syrian rebels, particularly the Islamist jihadists sponsored by Saudi Arabia, the Islamic Front. Critics of the PM are raising his open association with Yasin al-Qadi, an alleged funding source for Al Qaeda and a designated international terrorist by the U.S. government. Erdogan was dismissive of any problems when confronted on the association saying that al-Qadi was "a charitable person who loves Turkey." He may have more explaining to do if investigations continue.Reporting on evidence from prosecutors and first hand witnesses, Michael Rubin found:"According to Turkish interlocutors, there are consistent irregularities in 28 government tenders totaling in the tens of billions of dollars, in which kickbacks and other payments were made, a portion of which Turkish investigators believe ended up with al-Qadi’s funds and charities. These funds and charities were then used to support al-Qaeda affiliates and other radical Islamist groups operating in Syria like the Nusra Front." Dec. 27
  • ...1 more annotation...
  • "Irregularities" in government tenders is part of a much larger financial crisis brought on by Erdogan's policies. As noted in a an article earlier this week:"While the focus to date has been on charges of personal enrichment by Erdogan’s ministers and associates, the real problem for the current government is financial fraud in reporting its current account deficit and national income. These figures are the basis for access to international financing. Intentional, inaccurate reporting constitutes fraud that understates the risk to lenders and provides a more favorable interest rate for the borrower than is warranted." Michael Collins, Dec 29Mustafa Sonmez detailed the problems in Hurriyet Daily News, an important analysis overshadowed by the more spectacular charges of late. Turkey's secret gold-for-oil deal with Iran distorted financial reporting figure. Debt was understated and income overstated as a result. Turkey's economic success is based on foreign investments. When foreign investors look at the political instability combined with the financial reporting problems, they will vote with their feed. A survey of Middle East fund managers found that none planned to raise investments in Turkey in 2014 and 13% planned to reduce their investments.
  • Paul Merrell on 05 Jan 14
     
    Finally, an article that does a fairly good job of summarizing the situation in Turkey. In a single word, it's a mess. 
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BBC News - Farage: UKIP has 'momentum' and is targeting more victories - 0 views

www.bbc.com/...uk-politics-27567744 Auction-2014 UK UKIP EU
shared by Paul Merrell on 27 May 14 - No Cached
  • The UK Independence Party is a truly national force and has "momentum" behind it, Nigel Farage has said after its victory in the European elections. Hailing a "breakthrough" in Scotland and a strong showing in Wales, he said UKIP would target its first Westminster seat in next week's Newark by-election. Lib Dem leader Nick Clegg has said he will not resign after his party lost all but one of its 12 MEPs. He said he was not going to "walk away" from the job despite the poor results. Mr Farage has been celebrating his party's triumph in the European polls, the first time a party other than the Conservatives or Labour has won a national election for 100 years.
  • The UK Independence Party is a truly national force and has "momentum" behind it, Nigel Farage has said after its victory in the European elections. Hailing a "breakthrough" in Scotland and a strong showing in Wales, he said UKIP would target its first Westminster seat in next week's Newark by-election. Lib Dem leader Nick Clegg has said he will not resign after his party lost all but one of its 12 MEPs.
  • The UK Independence Party is a truly national force and has "momentum" behind it, Nigel Farage has said after its victory in the European elections. Hailing a "breakthrough" in Scotland and a strong showing in Wales, he said UKIP would target its first Westminster seat in next week's Newark by-election. Lib Dem leader Nick Clegg has said he will not resign after his party lost all but one of its 12 MEPs. He said he was not going to "walk away" from the job despite the poor results.
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  • UKIP won 27.5% of the vote and had 24 MEPs elected. Labour, on 25.4%, has narrowly beaten the Tories into third place while the Lib Dems lost all but one of their seats and came sixth behind the Greens. With Northern Ireland yet to declare its results, the election highlights so far have been: Far-right, anti-EU parties, including the Front National in France, made gains across Europe, as did anti-austerity groups from the left Labour has 20 MEPs so far, an increase of seven on 2009, which was a record low point for the party It topped the poll in Wales by a narrow margin from UKIP. The SNP won two seats in Scotland, where UKIP also won its first MEP
  • The Conservatives have so far secured 24% of the vote nationally and lost seven seats The Lib Dems slumped to fifth place The Green Party came fourth and has got three MEPs - one more than it achieved in 2009. BNP leader Nick Griffin lost his seat as the party was wiped out, the English Democrats also saw their vote share fall
  • Mr Farage has said his party intends to build on what he has described as "the most extraordinary result" in British politics in the past century.
  • Speaking in London at an election rally, he said his party now appealed to all social classes and had made significant inroads in Wales and Scotland as well as winning the most votes in England.
  • He said the party was aiming to win the Newark by-election next week, to try and "turn the heat" up on David Cameron. They would target a dozen or more seats in next year's general election, he added. "Our game is to get this right, to find the right candidates, and focus our resources on getting a good number of seats in Westminster next year. "If UKIP do hold the balance of power, then indeed there will be a (EU) referendum."
  • Mr Farage said Labour would come under "enormous pressure" to offer the voters a referendum on Europe, and he said he did not believe Nick Clegg would still be Lib Dem leader at the general election. "The three party leaders are like goldfish that have been tipped out of their bowl onto the floor and are gasping for air," he said.
  • Mr Clegg is facing calls to stand down after Sunday night's results, with MP John Pugh saying the "abysmal" performance meant the Lib Dem leader should make way for Vince Cable. But Mr Clegg said he had no intention of stepping down despite the "gut-wrenching" loss of most of the party's representatives in Brussels. "Of course it's right to have searching questions after such a bad set of results," he said. "But the easiest thing in politics when the going gets really really tough is to wash your hands of it and walk away, but I'm not going to do that and neither is my party."
  • Lib Dem Business Secretary Vince Cable added: "These were exceptionally disappointing results for the party. Many hard-working Liberal Democrats, who gave this fight everything they had and then lost their seats, are feeling frustrated and disheartened and we all understand that." Mr Clegg "deserves tremendous credit" for having been bold enough to stand up to "the Eurosceptic wave which has engulfed much of continental Europe", he said. The party had taken a "kicking for being in government with the Conservatives", but must now "hold its nerve", he said.
  • Reacting to his third place, David Cameron said the public was "disillusioned" with the EU and their message had been "received and understood", but he rejected calls to bring forward his proposed in/out EU referendum to 2016.
  • After UKIP's success, the Tory leadership is facing renewed calls for an electoral pact with their rivals to avoid a split in the right of British politics at next year's general election. Daniel Hannan, who was returned as a Tory MEP in the South East region, said it would be "sad" if the two parties "were not able to find some way, at least in marginal seats, of reaching an accommodation so that anti-referendum candidates don't get in with a minority of votes". But Mr Cameron said it was a "myth" that the two parties had a shared agenda. Labour was looking at one stage as if it might be beaten into third place by the Tories - a potentially disastrous result for Ed Miliband as he seeks to show he can win next year's general election. But the party was rescued by another strong showing in London - and it took heart from local election results in battleground seats, which party spokesmen suggested were a better guide to general election performance.
  • Mr Miliband said the party was "making progress" but had "further to go" if it was to prevail in next year's general election. He said the outcome of the elections was about more than Europe and his party must respond to a "desire for change" over a wide range of issues. BNP leader Nick Griffin lost his seat and saw his party's vote collapse by 6% in the North West of England. Anti-EU parties from the left and right have gained significant numbers of MEPs across all 28 member states in the wake of the eurozone crisis and severe financial squeeze. However, pro-EU parties will still hold the majority in parliament. Turnout across the EU is up slightly at 43.1%, according to estimates. Turnout in the UK was 33.8%, down slightly on last time.
  • In the European elections five years ago, the Conservatives got 27.7% of the total vote, ahead of UKIP on 16.5%, Labour on 15.7%, the Lib Dems on 13.7%, the Green Party on 8.6% and the BNP on 6.2%.
  • Eurosceptic 'earthquake' rocks EU Under pressure Clegg: I won't quit Miliband: Labour 'making progress' Cameron: We can still win in 2015 BNP wiped out in Euro elections UKIP looks to Westminster after win Calls for Clegg to quit 'ridiculous' Immigration target
  • Paul Merrell on 27 May 14
     
    UKIP sets the wheels to rocking on apple carts in the UK and EU, winning 24 of UK's 73 seats in the European Parliament and hundreds of seats in UK community governments, all at the expense of the front-running three parties in the UK's 2009 election.   Wikipedia: The UK Independence Party (UKIP) is a [hard] Eurosceptic, right-wing populist political party in the United Kingdom, founded in 1993. The party describes itself in its constitution as a "democratic, libertarian party." Now if we could just begin to see a NATO-sceptic party emerging across Europe ...  
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The new European 'arc of instability' - RT Op-Edge - 0 views

rt.com/...3-putin-russia-sovereign-swift war & peace economic-warfare Russia U.S.-foreign-policy Eurasia
shared by Paul Merrell on 06 Jan 15 - No Cached
  • The European Council on Foreign Relations and Berlin think-tank Friedrich Ebert Stiftung have just reached more or less the same conclusion. If the dangerous stand-off between the EU and Russia over Ukraine is not solved, the EU could face, up to 2030, a military build-up in eastern Europe; a new arms race with NATO as a protagonist; and a semi-permanent “zone of instability” from the Baltic to the Balkans and the Black Sea. What these two think-tanks don’t – and won’t – ever acknowledge is that a new European “arc of instability” – from the Baltic to the Black Sea, as myself and other independent analysts have stressed – is exactly what the Empire of Chaos and its weaponized arm – NATO – are working on to prevent closer Eurasia integration. By the way, the Pentagon excels in fabricating “arcs of instability.” The previous one was – and remains – massive, stretching from the Maghreb to Xinjiang in western China across the Middle East and Central Asia.
  • Moscow has totally identified the plot; Foreign Minister Sergey Lavrov, once again, has made it crystal clear, in detail. And crucially, some influential sectors in Germany also did, as in members of the cultural elite destroying the notion of a new war in Europe: “Not in our name.” The same applies to those that always preach more transatlantic cooperation, extol the US’s “defining” role in Germany, and effusively praise Germany as the most American country in Europe; that’s the case of the Frankfurter Allgemeine newspaper – which stands for the core of the political and economic establishment in Germany. It’s still in an embryonic stage, and has not yet made Chancellor Angela Merkel see the light; but a reverse reengineering of Atlanticist relations is already in progress in Germany.
  • Meanwhile, the proverbial group of extremist US senators, plus the notorious poodles/vassals of Britain and Poland, haven’t stopped lobbying to shut Russia off from SWIFT – just as they did with Iran. This would be nothing but yet another declaration of (economic) war – or the economic counterpoint to NATO hysteria. In fairness, a great deal of the EU – especially Germany – knows this is madness. Germany’s top financial paper Handelsblatt recently published a key interview with head of VTB-Bank Andrei Kostin, which has still not been translated into any major English-language paper.
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  • Kostin went straight to the point: “Of course, there is a plan B [in the case of Russia being shut off from the SWIFT bank system], but in my personal opinion it would mean war – if this type of sanction will be introduced. America and Europe did that against Iran but with Iran at that time there were no diplomatic relations, only military containment...if Russian banks’ access to SWIFT will be prohibited, the US ambassador to Moscow should leave the same day. Diplomatic relations must be finished. Banking is the most vulnerable part of the Russian economy because the system is based so strongly on the dollar and the euro.” Next May, Russia’s Central Bank is planning to introduce an analogue to SWIFT – after key consultations with China. It’s always important to keep in mind that China set up a parallel SWIFT to do business with Iran under sanctions. But still there will be a window of four months for a lot of nasty things to happen after a Republican-controlled US Senate is empowered in January.
  • And then there’s the golden rule. Why is Russia buying so much gold? With the US dollar forced upward and gold downward, it makes total business sense to sell gas for inflated dollars and then buy cheap depressed gold; that’s what the Chinese call a “win-win.” And of course on both counts, the West loses. The Washington/Wall Street elites are fully aware that both Moscow and Beijing won’t accumulate US dollars anymore. As for the Masters of the Universe plutocrats who manipulate/control the value of the US dollar, a case can be made that one of their purposes is wrecking the US’s industrial base and the nation’s middle classes. Moscow, meanwhile, has adjusted to the new “instability.” The weak ruble has a positive effect – already stressed by President Putin – by forcing Russia to diversify its manufacturing and become more self-sufficient.
  • Of course, the problem remains for Russia to pay the foreign interest on its debt in US dollars. Moscow could always declare a moratorium in debt repayments. The ruble might go down even more. But as everyone from Lukoil to Rosneft converts more US dollars into rubles, that will drive the ruble back up. Not to mention that the ruble is shorted as it stands. The bottom line is that Moscow has learned yet another lesson for the immediate future: never become indebted to the West. What’s certain is that the Empire of Chaos won’t relent in its strategy of heating up the new arc of instability – inside Europe, across the economic/financial spectrum – and instrumentalizing its pre-fabricated New Iron Curtain from the Baltic to the Black Sea. The Kremlin seems to know exactly how high the stakes are. As The Saker told me in an email, “Putin is telling both the West and the Russian people that there is a long war in progress and that the Russian people have to morally be prepared to accept sacrifices for the survival of Russia. This is one more step in the 'coming-out' of what I call the ‘Eurasian Sovereignists’ in which the US [has] now openly declared as a Russophobic (Russia-hating and Russia-fearing) enemy, and the Europeans as a powerless colony. Military power is not directly a factor in this, the internal power balance between the pro-Western ‘Atlantic Integrationists’ and the ‘Eurasian Sovereignists’ is.” It’s all here – from the debacle of a regime (Bretton Woods) to the current, provoked crisis, all brilliantly explained by Mikhail Khazin. Russia is getting ready to rock. Is the West?
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2015 Will Be All About Iran, China and Russia / Sputnik International - 0 views

sputniknews.com/...1016436434.html war & peace economic-warfare U.S.-foreign-policy Russia China Eurasia
shared by Paul Merrell on 03 Jan 15 - No Cached
  • Fasten your seatbelts; 2015 will be a whirlwind pitting China, Russia and Iran against what I have described as the Empire of Chaos.
  • Considering that this swift move was conceived as a checkmate, Moscow’s defensive strategy was not that bad. On the key energy front, the problem remains the West’s – not Russia’s. If the EU does not buy what Gazprom has to offer, it will collapse. Moscow’s key mistake was to allow Russia's domestic industry to be financed by external, dollar-denominated debt. Talk about a monster debt trap  which can be easily manipulated by the West. The first step for Moscow should be to closely supervise its banks. Russian companies should borrow domestically and move to sell their assets abroad. Moscow should also consider implementing a system of currency controls so the basic interest rate can be brought down quickly. And don’t forget that Russia can always deploy a moratorium on debt and interest, affecting over $600 billion. That would shake the entire world's banking system to the core. Talk about an undisguised “message” forcing the US/EU economic warfare to dissolve.
  • Global oil prices are bound to remain low. All bets are off on whether a nuclear deal will be reached by this summer between Iran and the P5+1. If sanctions (actually economic war) against Iran remain and continue to seriously hurt its economy, Tehran’s reaction will be firm, and will include even more integration with Asia, not the West.
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  • Now let’s take a look at Russian fundamentals. Russia’s government debt totals only 13.4% of its GDP. Its budget deficit in relation to GDP is only 0.5%.  If we assume a US GDP of $16.8 trillion (the figure for 2013), the US budget deficit totals 4% of GDP, versus 0.5% for Russia. The Fed is essentially a private corporation owned by regional US private banks, although it passes itself off as a state institution. US publicly held debt is equal to a whopping 74% of GDP in fiscal year 2014. Russia’s is only 13.4%. The declaration of economic war by the US and EU on Russia – via the run on the ruble and the oil derivative attack – was essentially a derivatives racket. Derivatives – in theory – may be multiplied to infinity. Derivative operators attacked both the ruble and oil prices in order to destroy the Russian economy. The problem is, the Russian economy is more soundly financed than America's.
  • So yes – it will be all about further moves towards the integration of Eurasia as the US is progressively squeezed out of Eurasia. We will see a complex geostrategic interplay progressively undermining the hegemony of the US dollar as a reserve currency and, most of all, the petrodollar. For all the immense challenges the Chinese face, all over Beijing it's easy to detect unmistakable signs of a self-assured, self-confident, fully emerged commercial superpower. President Xi Jinping and the current leadership will keep investing heavily in the urbanization drive and the fight against corruption, including at the highest levels of the Chinese Communist Party (CCP). Internationally, the Chinese will accelerate their overwhelming push for new 'Silk Roads' – both overland and maritime – which will underpin the long-term Chinese master strategy of unifying Eurasia with trade and commerce.
  • Russia does not need to import any raw materials. Russia can easily reverse-engineer virtually any imported technology if it needs to. Most of all, Russia can generate — from the sale of raw materials – enough credit in US dollars or euros. Russia's sale of its energy wealth — or sophisticated military gear — may decline. However, they will bring in the same amount of rubles — as the ruble has also declined.  Replacing imports with domestic Russian manufacturing makes total sense. There will be an inevitable “adjustment” phase – but that won’t take long. German car manufacturers, for instance, can no longer sell their cars in Russia due to the ruble's decline. This means they will have to relocate their factories to Russia. If they don’t, Asia – from South Korea to China — will blow them out of the market.
  • The EU's declaration of economic war against Russia makes no sense whatsoever. Russia controls, directly or indirectly, most of the oil and natural gas between Russia and China: roughly 25% of the world's supply. The Middle East is bound to remain a mess. Africa is unstable. The EU is doing everything it can to cut itself off from its most stable supply of hydrocarbons, prompting Moscow to redirect energy to China and the rest of Asia. What a gift for Beijing – as it minimizes the alarm about the US Navy playing with "containment" across the high seas.  Still, an unspoken axiom in Beijing is that the Chinese remain extremely worried about an Empire of Chaos losing more and more control, and dictating the stormy terms of the relationship between the EU and Russia. The bottom line is that Beijing would never allow itself to be in a position where the US could interfere with China's energy imports – as was the case with Japan in July 1941 when the US declared war by imposing an oil embargo, cutting off 92% of Japanese oil imports. Everyone knows a key plank of China’s spectacular surge in industrial power was the requirement for manufacturers to produce in China. If Russia did the same, its economy would be growing at a rate of over 5% per year in no time. It could grow even more if bank credit was tied only to productive investment.
  • Now imagine Russia and China jointly investing in a new gold, oil and natural resource-backed monetary union as a crucial alternative to the failed debt "democracy" model pushed by the Masters of the Universe on Wall Street, the Western central bank cartel, and neoliberal politicians. They would be showing the Global South that financing prosperity and improved standards of living by saddling future generations with debt was never meant to work in the first place. Until then, a storm will be threatening our very lives – today and tomorrow. The Masters of the Universe/Washington combo won’t give up their strategy to make Russia a pariah state cut off from trade, the transfer of funds, banking and Western credit markets and thus prone to regime change. Further on down the road, if all goes according to plan, their target will be (who else) China. And Beijing knows it. Meanwhile, expect a few bombshells to shake the EU to its foundations. Time may be running out – but for the EU, not Russia. Still, the overall trend won’t be altered; the Empire of Chaos is slowly but surely being squeezed out of Eurasia.
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Russia to take retaliatory measures to NATO's eastward expansion | GlobalPost - 0 views

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shared by Paul Merrell on 29 Dec 14 - No Cached
  • (Xinhua) -- Russia would take appropriate retaliatory measures against NATO's possible eastward expansion, Foreign Ministry spokesman Alexander Lukashevich said Thursday."I'd stress that the NATO's possible further enlargement eastward would inevitably lead to a very serious military- political shift not only in Europe but also around the world," Lukashevich told reporters.This would directly affect Russia's national security interests, prompting necessary and appropriate reactions from the country, Lukashevich added.Moreover, the spokesman warned that the trend of pro-West and anti-Russia attitudes in Kiev authorities could further complicate the bilateral relations between Ukraine and Russia.
  • "Cooperation in such fields as economy and energy would be obstructed," Lukashevich said.Moscow is also perplexed by the fact that the abolishment of Ukraine's non-aligned status came right at the moment when positive trends have taken place to settle the Ukraine crisis, Interfax news agency quoted Lukashevich as saying."We are convinced that the Euro-Atlantic slant in Ukraine's external and internal policies is unlikely to help bring the country out of a deep internal political and economic crisis," Lukashevich said.The Ukrainian parliament approved a bill on Tuesday to abandon the country's non-aligned status, paving the way for it to join NATO.The new law envisages that Kiev is heading for deepening cooperation with NATO "in order to achieve the criteria which are required for membership in the alliance."The latest move taken by the Kiev government had come under rounds of strong criticism of Russia, warning that the "big mistake" would lead to instability in the region.
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China pledges to help Russia overcome economic hardships - RT News - 0 views

rt.com/...hina-russia-economic-hardships war & peace economic-warfare Russia China U.S.-foreign-policy
shared by Paul Merrell on 24 Dec 14 - No Cached
  • China’s foreign minister has pledged support to Russia as it faces an economic downturn due to sanctions and a drop in oil prices. Boosting trade in yuan is a solution proposed by Beijing’s commerce minister. “Russia has the capability and the wisdom to overcome the existing hardship in the economic situation," Foreign Minister Wang Yi told journalists, China Daily reported Monday. “If the Russian side needs it, we will provide necessary assistance within our capacity." The offer of help comes as Russians are still recovering from the shock of the ruble’s worst crash in years last Tuesday, when it lost over 20 percent against the US dollar and the euro. The Russian currency bounced back the next day, but it still has lost almost half of its value since March.
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Fallout from Obama's Russia Strategy Is Spreading through Europe - Yahoo Finance - 0 views

finance.yahoo.com/...ategy-spreading-110000192.html war & peace economic-warfare Russia U.S.-foreign-policy blowback EU
shared by Paul Merrell on 25 Dec 14 - No Cached
  • The Obama administration’s sanctions against Russia, reluctantly supported by the Europeans, bite more deeply every day. But it is also clearer with each daily news report that Russians are not going to suffer alone.
  • The Obama administration’s sanctions against Russia, reluctantly supported by the Europeans, bite more deeply every day. But it is also clearer with each daily news report that Russians are not going to suffer alone.
  • Russia’s immediate neighbors and the Europeans will, too. And—not to be missed—so will the trans-Atlantic alliance that has served as the backbone of Western policy since the postwar order was established 70 years ago next spring.This president is intent on making history. But does he distinguish between good history and the other kind?
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  • It’ll be the other kind if the European Union swoons into another recession as a consequence of America’s geopolitical ambitions to Europe’s east. Emphatically it’ll be the other kind if Obama hastens a drift in Washington’s ties to the European capitals that have been faintly discernible, if papered over, for decades.     Let’s look at this from all angles.
  • On Friday the Polish zloty hit a 15-month low against the euro—straight-ahead fallout from Russia’s crisis. Among the CIS nations, Belarus just doubled interest rates, to 50 percent, and imposed a 30 percent tax on forex transactions.Kyrgyzstan is closing private currency exchanges, and Armenia is letting the dram, its currency, collapse—17 percent in the past month—in a policy it calls “hyper-devaluation.” Further afield, the Indian rupee, the South African rand, and the Turkish lira are among the emerging-market currencies taking hits from the ruble crisis.Flipping these eggs over, Switzerland just imposed negative interest rates to discourage a stampede of weak-currency holders from piling into the franc in search of a safe haven.
  • What happened as E.U. ministers and heads of state convened in Brussels last week can come as no surprise.On one hand, German Chancellor Angela Merkel and British Prime Minister David Cameron insisted that Europeans must “stay the course” on Russia. Just before the Brussels summit, the E.U. barred investments in Crimea—a gesture more than anything else, but one with clear intent. On the other hand, deep divisions are now on the surface. Italian Prime Minister Matteo Renzi declared “absolutely no” to more sanctions, and François Hollande seemed to say no to the sanctions already in place. Noting signs of progress on Ukraine, the French president said, “If gestures are sent by Russia, as we expect, there would be no reason to impose new sanctions, but on the contrary to look at how we could bring about a de-escalation from our side.”Danish Foreign Minister Martin Lidegaard asserted that the sanctions already in place may be hitting too hard. We want to modulate Russia’s behavior, he said in an especially astute distinction, not destroy Russia’s economy.
  • In short, two serious fissures are emerging as the hard line against Russia advances. One, the E.U. is plainly getting fractious. Reflecting the rainbow of political tendencies among their leaders, Europeans may have reached their limit in acquiescing in the Obama administration’s tough-and-getting-tougher policies. Note, in this context: Europe has nothing like the fiscal and monetary wherewithal it had six years ago to withstand another bout of financial and economic contagion. Two, Obama appears ever closer to overplaying America’s hand with the Europeans. Tensions between Washington and Europe have simmered just out of sight since the Cold War decades. There are significant signs now that Obama has let the Ukraine crisis worsen them to the point the tenor of trans-Atlantic ties is permanently modulated. If this goes any further it will be very big indeed. 
  • Question: Do President Obama’s big-think people at State and the Treasury know the magnitude of the game they’re playing? This is the issue the economic fallout of sanctions and the new shifts in Europe raise. Follow-on query, not pleasant to ask but it must be put: Does Obama have any big thinkers in either department? As the consequences of this administration’s Russia policy unfurl, they appear to travel on a wing and a prayer—“making it up as they go along,” as a friend and Foreign Service refugee said over lunch the other day.
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