LILA RAJIVA: The Mind-Body Politic
Individuals Not Ideologies
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Archive of "Empire" Category
Anatoliy Golitsyn: The Communist Strategy Of Deception And Disinformation
Anatoliy Golitsyn - New Lies for Old: The Communist Strategy of Deception and Disinformation
CIA Funds Both Sides Of War, Uses NY Times For Psyops (Yawn)
David DeGraw at Alternet.org describes how US intelligence ishas been behind both sides of the war on terror and how the media aids the war effort with calculated psyops like the recent “finding” of mineral deposits in Afghanistan that was trumpeted in the New York Times. (more…)
Daily Bell: Elites Conspire Over Afghan Mineral Wealth
The Daily Bell on the Afghan mineral discovery:
Here is what the Anglo-American brain-trust may have in mind:
1. It will invite countries into the region to “exploit” minerals, operating through the Afghan government. (And has already invited China.) Each country, once involved, will be expected to provide its own security.
Afghanistan Has Trillion Dollar Deposits Of Iron, Copper, and Lithium
So now we know the real reason for the Afghan war.. I wonder how long the Pentagon has had this information? BBC reports on June 14, 2010:
“Afghanistan may have more than a trillion dollars worth of untapped mineral deposits, a spokesman for the ministry of mines has suggested. The statement came after reports in the New York Times of the work of a team of Pentagon officials and US geologists. They discovered large quantities of iron and copper as well as valuable deposits of lithium. However, questions are being asked about the timing of the release of the latest information.
Mad Dogs Alert: Saudis To Give Israelis Airspace To Attack Iran
Hugh Tomlinson at The Times Online, June 12, 2010:
“Saudi Arabia has conducted tests to stand down its air defences to enable Israeli jets to make a bombing raid on Iran’s nuclear facilities, The Times can reveal.
In the week that the UN Security Council imposed a new round of sanctions on Tehran, defence sources in the Gulf say that Riyadh has agreed to allow Israel to use a narrow corridor of its airspace in the north of the country to shorten the distance for a bombing run on Iran.
To ensure the Israeli bombers pass unmolested, Riyadh has carried out tests to make certain its own jets are not scrambled and missile defence systems not activated. Once the Israelis are through, the kingdom’s air defences will return to full alert.”
Read the rest of this article at The Times Online
Ex-CIA Station Chief Admits Drugging & Molesting Algerian Woman
And all in the name of “intelligence” the tax-payer has to support this huge bureaucracy of underemployed, over-sexed meddlers..
WASHINGTON (Reuters) - A former CIA station chief in Algeria pleaded guilty on Monday to sex abuse stemming from a 2008 incident in Algiers and to cocaine use, the U.S. Justice Department said.
Gulf Economy Takes Multibillion Dollar Hit From Oil Spill
CNN reports on how the oil spill will damage the Gulf economy:
“As efforts to plug the ruptured well in the Gulf of Mexico continue to fall short, the stakes for the region’s economy grow ever higher. The numbers being batted around when it comes to how much the oil spill will ultimately cost BP and the local Gulf of Mexico economies are huge. $3 billion. $14 billion. One politician put it at over $100 billion.
IMF Global Currency (SDR) Likely In Next Two Years
From Giordano Bruno at Neithcorp Press:
“Goldman’s involvement in the Greek snafu is assuredly not isolated. Goldman deals with many countries and has likely pulled the same scam everywhere. But why would a large international bank deliberately sabotage the economies of the countries it does business with? Would this not ruin the banks as well in the long run? Not if you consider the possibility that Goldman is destabilizing countries deliberately to help the IMF…
Word Government Alert: UN Spends Haiti Money On Expanding Its Personnel
Next time there’s a natural disaster and you think the government should “do its share,” “help out” or be compassionate, remember this:
“The United Nations has quietly upped this year’s peacekeeping budget for earthquake-shattered Haiti to $732.4 million, with two-thirds of that amount going for the salary, perks and upkeep of its own personnel, not residents of the devastated island.
The world organization plans to spend the money
on an expanded force of some 12,675 soldiers and police, plus some 479 international staffers, 669 international contract personnel, and 1,300 local workers, just for the 12 months ending June 30, 2010.
Some $495.8 million goes for salaries, benefits, hazard pay, mandatory R&R allowances and upkeep for the peacekeepers and their international staff support. Only about $33.9 million, or 4.6 percent, of that salary total is going to what the U.N. calls “national staff” attached to the peacekeeping effort.”
Welfare Kings: The Case Of Charles Schwab
From Brad Blog (”Food Incorporated”):
“When they were first introduced during the early days of the New Deal, farm subsidies were intended to stabilize prices in order to offset the extraordinary low prices brought on by over-production and by the Great Depression; to keep farmers on their farms and in their homes.
Today, it would be fair to say that farm subsidies, like Wall Street bailouts, flow to those who need them the least.
In Thieves in High Places, Jim Hightower provides the classic example — billionaire stockbroker Charles R. Schwab; the proud owner of Casa de Patos, “1,500 acres of picturesque wetlands in Northern California.” Schwab grows rice on the land, not for harvesting purposes but because the rice attracts ducks. Schwab is one of those rich folks who likes to invite friends and clients to go duck hunting. (Careful you don’t invite Dick Cheney, Mr. Schwab.)
So Schwab has no intent to harvest the rice, but that doesn’t prevent this man with an estimated $4.7 billion net worth from collecting $500,000/year in federal farm subsidies because he does not market the rice.
Hightower laments, “Sadly, it’s legal, and it’s a fine upstanding example of what George [W. Bush] and his base like to call ‘entrepreneurship.’”
The CIA, the Banks, and Drug Running
Opium and the CIA, Peter Dale Scott:
“Protection for Drug Trafficking in America
Thus it is not surprising that the U.S. Government, following the lead of the CIA, has over the years become a protector of drug traffickers against criminal prosecution in this country. For example both the FBI and CIA intervened in 1981 to block the indictment (on stolen car charges) of the drug-trafficking Mexican intelligence czar Miguel Nazar Haro, claiming that Nazar was “an essential repeat essential contact for CIA station in Mexico City,” on matters of “terrorism, intelligence, and counterintelligence.” When Associate Attorney General Lowell Jensen refused to proceed with Nazar’s indictment, the San Diego U.S. Attorney, William Kennedy, publicly exposed his intervention. For this he was promptly fired.
Polish President Lech Kaczynski Killed In Plane Crash
[Note: The video is from Russia Today, which some claim contains Russian disinformation].
Update: Russian investigators say that there was nothing wrong with the landing instruments on the plane and that it was pilot error that caused the crash. Also, it seems that the number of bodies found is 96.
Update 8:
At Asia Times, M. K. Bhadrakumar notes that as the so-called “color” revolutions in Central Asia (Ukraine, Georgia and Kyrgyzstan) have all gradually become undone, Kyrgyzstan has become destabilized, leaving the whole region from Af-Pak to Kyrgyzstan, on the very borders of China, volatile.
Point two. Like it or not, the US needs cooperation with Russia to help it out here before the excursion in Afghanistan is concluded, say, in 2011. It also needs help, as NATO expands into Central Asia, to contain both China and India, and (possibly) play them off against each other.
A strongly anti-Russian, reactionary Pole, like Kaczynski, might have been a very disturbing factor, a thorn also in the side of the much more tractable Polish PM, Donald Tusk.
Point three.
Tusk is on more amicable terms both with the Obama administration and with Russian PM Putin, with whom he met separately at Katyn last week. Tusk is also more Euro-friendly.
Point four. With Iran cementing natural gas deals not only with Pakistan, but with China and India (over US objections), and with a Euroskeptic Polish president (Kaczynski) making unexpected overtures to Russia, America’s power/leverage vis-a-vis Russia might suddenly seem less certain on both fronts, eastern and western, especially with the Russian natural gas pipeline in the Baltic, an initiative that tends to increase Russian influence in Europe.
Point five. The recent discovery of huge reserves of natural gas in Poland has foreign corporations scrambling for drilling rights there. That makes Poland a much bigger player in the region, especially in its ability to help or hurt a European recovery. Take that into account along with the recent devaluation of the Zloty, which is regarded as helpful to Polish exporters and the economy, but bad for Europe..
Update 7:
On April 8 Obama signed a new arms reduction treaty with Dmitri Medvedev (President of Russia) and met with East European heads of state, including Donald Tusk (Polish PM) to discuss the future of NATO and to allay fears Eastern Europe might have over the US-Russia deal.
In December 2009 Obama asked for stronger Polish support in Afghanistan
Update 6:
The more I think about it, the more this crash looks odd to me.
Digging for more information, I find the following:
Donald Tusk, the PM, was much less antagonistic to Russia and much more supportive of free market policies and integration of the country into the EU than Kaczynski.
From wiki:
“After being elected prime minister, relations between Tusk and President Lech Kaczynski were often acrimonious due to different political ideologies and the constitutional role of the
presidency. Using presidential veto powers, Kaczynski blocked legislation drafted by the Tusk government, including pension reform, agricultural and urban zoning plans, and restructuring state television.[16]Tusk and Kaczynski repeatedly sparred over issues ranging from European integration, homosexuality, foreign policy, to constitutional issues, with Tusk taking more socially liberal opinions than the conservative Kaczynski.
In his premiership, Tusk has proposed various reforms to the Polish constitution. In 2009, Tusk proposed changes to the power of the presidency, by abolishing the presidential veto”
It’s wholly plausible that as the second and worse leg of the economic crisis unfolds, and as sovereign default threatens several countries in Europe, a less prickly person as president of Poland might have seemed an attractive option to NATO.
Of course, at this point, all this is no more than speculation…
Update 5:
Former Czech president, Vaclav Havel comments on mounting speculation over the bizarre crash:
‘That speculation [that it was sabotage and not an accident] will influence the elections,’ he said, predicting some Poles would see an analogy to the 1943 plane-crash death of Wladyslaw Sikorski, Poland’s premier-in-exile. Some believe that Sikorski’s plane was deliberately brought down.
Update 4:
Eyewitness accounts says no explosion:
“A witness named himself Roman said he was washing his car in the village near the airport, when he saw a plane crashed down in the woods. “It was foggy here at that time, I couldn’t see it very clearly. I didn’t hear any explosion, but saw a lot of smoke. The plane flew forward a distance after one of the wings had been knocked off by the trees. Then the other wing also broke down, and the plane crashed in the woods 300 to 400 meters away from the airport, ” Roman recalled. A Xinhua reporter at the site saw pieces of the plane wreckage scattering in the sealed-off woods, where four rescuers were carrying out a body from the wreckage.”
One police officer pointed at a topless white birch tree about 300 meter away and told Xinhua that it was the first tree hit by the plane. Behind it, a number of treetops were cut off straight in the accident.”
Another eyewitness account says there was an explosion (Lila: this contradicts the other account, but that could be because the witness was closer to the crash).
The explosion was apparently so powerful that pieces were scattered near the outskirts of the town at a distance of a mile.
The plane is said to have crashed about half a mile on the runway. Some sections of the plane burned for more than an hour.
Update 3:
Some background on energy rivalry between Russia and Poland, which as focused on natural gas reserves/pipe line deals that had recently been cemented.
“Without consulting the Poles, Mr. Schroder (former German chancellor) had supported a major Russian-German gas pipeline, called Nord Stream, now being built under the Baltic Sea. For the first time, Russia could send gas directly to Western Europe, reducing its dependence on Poland, Belarus and the Baltic States as transit countries for sending Russian gas to its lucrative European markets.When the deal was struck between Mr. Schroder and then-President Vladmir Putin in September 2005, some Polish politicians said it was the beginning of a new Russian-German alliance.” (Lila: This would bring back to many Poles the history of German-Russian collusion at Gdansk to divide Poland)
“American technology to produce shale gas is unleashing a scramble for drilling rights in Poland, where experts believe vast reserves of unconventional gas exist that could help to weaken Russia’s grip on Europe’s energy supplies.
(Lila: Russia supplied 33% of European oil in 2009 and cut supplies to Ukraine during a fight over prices)
ConocoPhillips is poised to launch Poland’s first shale gas drilling programme next month near Gdansk on the Baltic coast. Two other American oil groups — Exxon-Mobil and Marathon — and Talisman Energy, of Canada, are set to follow. The technology has transformed America’s energy industry and driven gas prices to their lowest level in years.”
Update 2:
“In one of those rare moments of unity, the National Bank of Poland and the Polish government agreed on the need to weaken the Polish zloty, which over recent weeks has rebounded close to its pre-crisis strength. The currency’s strength is now seen a possible threat to economic recovery. After several verbal interventions over the past few days, the central bank intervened with real money Friday, for the first time in more than a decade.”
Update 1 (the following is paraphrased from a Polish newspaper that I translated with Google translator):
Smolensk’s Severny airport was, until October 15, the 103rd airport Military Transport Aviation Regiment. And, half an hour before the presidential plane landed, a military plane, Ilyushin Il-76, from Moscow, which was carrying a branch of the Federal Protection Service officers (the equivalent of BOR-u), tried to land. The pilot, originally from Smolensk was thoroughly familiar with local conditions and tried to land twice, before returning to Moscow. A Pole living in a hotel near the site says that the left wing hit a tree and the plane fell to the ground and disintegrated, immediately catching fire. Emergency services on the spot appeared after several minutes.
[Lila: Now this part sounds a bit odd to me, although it could just be confusion at the scene of an accident].
The Russians stated that it made no sense to send ambulances to the site, since everyone was dead. The crash occurred in the forest, and the Russian services couldn’t enter the disaster area because of the mud at the site.
[Lila: How could they be so sure everyone was dead, especially, when many more bodies were recovered than were on the flight list (132 bodies versus 89 on the list)?]
ORIGINAL BLOG POST
Accident, Sabotage, or False Flag?
MSNBC reports that Polish President (from 2005-2010) Lech Kaczynski (1949-2010) and top Polish military and civilian leaders, historians, and activists were killed when the presidential plane crashed on landing in thick fog in Smolensk in western Russia on Saturday, killing 130, according to this report.
(Other reports have placed the death toll at 96, 97 88 (the number on the passenger list according to the Poles), 132, and 135).
Communication with the plane was lost at 10:50 local time (0656 GMT).
Pravda.ru says the plane came down at 11 AM local time about 1.5 km from the airport and 225 km from Moscow.
The Governor of Smolensk told official media there were no survivors of the crash and that the plane had clipped the top of the trees, crashed, and then broken into pieces.
Preliminary data collected show that the plane hit the treetops while approaching the airport in bad visibility, says an official with the Russian general prosecutor’s office, according to ITAR-Tass news agency, (reported by CBS).
A spokesman for the Smolensk regional government said publicly that air traffic controllers there had advised the pilot not to land in the thick fog at the military airport and to divert to Moscow or to Minsk (the capital of Belarus) instead.
BBC reported that Russian PM Putin visited the scene of the crash and said he would personally supervise the investigation. He also said the investigation would be a joint Polish-Russian investigation. The Russian emergency ministers said both of the plane’s information recorders (black boxes) had been found and would be examined.
The Polish group was on its way to the 70th anniversary of the massacre at Katyn forest near Smolensk, when thousands of Polish officers (including some who were also Jewish) were killed by the Soviet secret police, the NKVD, in 1940.
My Comment 2:
The significance of Katyn was that it was blamed on the Nazis by the Soviets, and, that despite this betrayal of its own ally, Poland, the US continued to treat the Soviets preferentially and cover-up for it.
Furthermore, at the end of WW II, the western powers again betrayed Poland - over whom the war was supposed to have been fought - by allowing it remain under the Soviet sphere of influence.
So, Katyn is not simply about Poland and Russia, as nation states, it’s also, equally, about Poland’s betrayal by the US and the Allies.
And it’s about the Polish Catholic suspicion of the atheistic Bolsheviks who primarily carried out the massacres ….
Religion, ethnicity, and nationalism all converge in this profound national trauma.
It’s important to remember that President Roosevelt officially rejected the conclusion of his own research team, and stated he was convinced that the Nazis were culpable. That is, he sided with Stalin against the Poles. And he actually ordered that the report that he himself had commissioned be suppressed. It was only more recently that the true history of the massacre of the flower of Poland by the Soviet NKVD has become common knowledge. This secret history is vital to understanding the symbolism involved in this crash.
This is not just about Poland and Russia. It is about the anti-Communist and anti-Nazi feelings of Catholics in Poland and their betrayal by the West.
Smolensk is only 11/2 hours away from Warsaw and the symbolism of the crash has struck many people, including former President Kwasniewski, who called Katyn “cursed.”
Polish Prime Minister Donald Tusk called it the most tragic event of Poland’s post-World War II history, according to BBC.
My Comment 1:
1. It’s very strange that so many of the top brass would be on a single flight, especially on a plane as known for being unreliable and dangerous as the Soviet built Tupolev-154, which has suffered 16 crashes since 1994 (AP).
According to the Aviation Safety Network, there have been 66 crashes involving Tu-154 in the last 40 years, 6 in the last 5 years alone, and Aeroflot has withdrawn its Tu-154 fleet from service, although the TU-154 used to be the workhorse of the Soviets and the eastern bloc in the 1970s and 1980s. The Polish government had been thinking of replacing the planes for flights carrying government officials, but didn’t have the money for it.
Wouldn’t high level personnel have normally been booked on separate flights to avoid difficulties in the military/government in case of an accident? This particular plane was also 26 years old, had been overhauled recently at a Russian aviation facility, and had only few hours on it.
However, the Russian facility Aviakor has said that the plane was in good condition for the flight.
Another aviation expert also told Al-Jazeera that the TU-154 can operate in extreme weather conditions and can land on an unpaved airstrip. He believes the crash was a “fluke”.
2. How is it that the information that the president’s wife had an uncle who was killed at Katyn was so widely and uniformly known that it appeared in a majority of global reports about the crash?
(Katyn is a national symbol of WW II and the anti-Communist struggle and stirs deep nationalistic feelings in Poland).
Another oddity in the media reports was the varying numbers given for the dead, when according to early reports, the Russians were able to collect all the bodies, and had verified that all on board had died. In that case, why such different numbers?
Also, how is it that the original flight list was for only 89 people (one didn’t show up)? How did some 30 plus extra passengers apparently fly…or is this a reference to something else?
3. What a bizarre coincidence that several people whose death would be calculated to arouse nationalist remembrance of the past (Katyn, communist crimes, Solidarity), should all die on a trip to Katyn, along with significant members of the political and military establishment? The people who died were all people significant to Poland’s anti-communist history. Kaczynski and his twin brother, Soviet era child actors, both played important roles in Polish politics.
“The twins (Kaczynski and his brother) pushed unashamedly for conservative values and a righting of historical wrongs with 20th century foes Russia and Germany in ways that ruffled feathers and often seemed out of step with the times,” says the WSJ.
The BBC noted that Kaczynski was a right-wing Catholic, who opposed rapid free-market reforms and favored retaining social welfare programs:
“He had advocated a right-wing Catholic agenda, opposed rapid free-market reforms and favoured retaining social welfare programmes.”
The LA Times noted his campaign against liberal sexual mores:
“At home, Kaczynzki, who was mayor of Warsaw before becoming president, sought to expose former communists and cleanse what he and his brother regarded as pervasive liberalism. He took a hard line against homosexuality and often assailed the media over salacious magazines and TV shows. His critics regarded him as a politically dangerous mix of Polish nationalism and religious conservatism.”
“The president was a conservative and a lifelong skeptic of Russia with many detractors at home and abroad.”
Consider also this piece of symbolism, among many other coincidences:
“Rossiya-24 showed footage from the crash site, with pieces of the plane scattered widely amid leafless trees and small fires burning in woods shrouded with fog. A tail fin with the red and white national colors of Poland stuck up from the debris.”(BBC)
4. In case this proves not to be an accident, Poles might be tempted look to the FSB (and Putin) as the possible culprit, since the plane was recently overhauled in Russia. Yet, Russia is unlikely to have downed a Polish plane with top military and civilian commanders on its own territory. That would be a political and military blunder almost unthinkable.
5. Exploring another angle, it’s been known for a while now that the CIA has a presence in Eastern Europe, as also suggested in a piece I wrote in 2005 on CIA black sites there.
Poland is a staunch ally of the US in other areas as well, thus provoking some dislike in Russia:
“The European Union member nation of 38 million people sent troops to the U.S.-led war in Iraq and recently boosted its contingent in Afghanistan to some 2,600 soldiers.
U.S. Patriot missiles are expected to be deployed in Poland this year. That was a Polish condition for a 2008 deal — backed by both Kaczynski and Tusk — to host long-range missile defense interceptors. The deal, which was struck by the Bush administration, angered Russia and was later reconfigured under President Barack Obama’s administration. Under the Obama plan, Poland would host a different type of missile defense interceptors as part of a more mobile system and at a later date, probably not until 2018.” (CNN)
Russians also distrusted his advocacy of NATO membership for the former Soviet states of Ukraine and Georgia and his support of Georgian President Mikhael Saakashvili during the 2008 Russo-Georgian war (CS Monitor).
6. However, in recent times, relations with Russia had thawed:
“Polish-Russian relations had been improving of late after being poisoned for decades over the Katyn massacre of some 22,000 Polish officers.”(Stanford Advocate, April 10, 2010).
Last year in September, Russian PM Putin met Kaczynski in Gdansk (Danzig) on the anniversary of the Hitler’s invasion of Poland and had made partial amends for the USSR’s role in breaking up Poland under the Molotov-Ribbentrop Pact (the Non-Aggression Treaty between Germany and the Soviet Union in 1939).
and this:
“Russia never has formally apologized for the murders but Putin’s decision to attend a memorial ceremony earlier this week in the forest was seen as a gesture of goodwill toward reconciliation. Kaczynski wasn’t invited to that event because Putin, as prime minister, had invited his Polish counterpart, Tusk.” (CBS) http://wcco.com/national/polish.Kaczynski.dead.2.1623978.html)
6. Exploring this from another angle, could this tragedy have anything to do with the another strange incident in Eastern Europe a few weeks ago?
Two Gulf Stream V type jets equipped with sophisticated intelligence equipment violated Hungarian laws by flying low into Hungary without landing and then flew 1300 miles over Turkey, Hungary and Romania and disappeared, all around the same time a Syrian-Hungarian man implicated in money-laundering was mysteriously killed in Budapest, in what some have suggested was a Mossad hit. That incidence should be read in light of the recent expulsion of the Israeli ambassador from the UK, and the threat of diplomatic sanctions against Israel in Australia, following the revelation that the Mossad had forged multiple passports from different countries in carrying out the killing of a Hamas operative in Dubai, earlier this year.
But Kaczynski was on very good terms with the Jewish community in Poland, once almost wiped out by the Holocaust. In 2008, he became the first head of state to attend service at a synagogue in Poland, and before that, as mayor of Warsaw, he donated land for a projected museum on Jewish history. Israel and the Jewish community expressed deep shock at the deaths and called Kaczynski a great leader.
That would seem to make him an unlikely target for an Israeli false-flag operation.
Update: AP has a list of the top officials and political significant people who died in the crash. Here are some of them:
Lech Kaczynski (President), Maria Kaczynska (his wife), Andrzej Kremer (deputy foreign minister and chief of staff), General Franciszek Gagor (army chief of staff since 2006, Polish rep at NATO, 2004-06), General Andrzej Blasik (head of airforce, trained in Montgomery, Alabama in 2005), (Vice-Admiral Andrzej Karweta, Navy Chief since 2009, served as Supreme Allied Command Atlantic, Norfolk, Virginia, 2002-05), Gen. Tadeusz Buk (land forces commander, 2009, commander of Polish troop in Iraq since 2007), Slawomir Skrzypek (president of the National Bank since 2007, close friend of the president), Alexander Szczyglo, head of National Security Office, former defense minister, Jerzy Szmajdzinski (opposition candidate for president, deputy parliamentary speaker, defense minister during Iraq war), Ryszard Kaczorowski (last president in exile, who passed on presidency to first democratic president Lech Walesa), Janusz Kurtyka (head of the state-run National Remembrance Institute, commemorating communist crimes), Anna Walentynowicz (Solidarity activist whose firing sparked the movement which led to Polish freedom), Piotr Nurowski (head of Poland’s Olympic Committee), Krystyna Bochenek (deputy parliamentary speaker)
Headley Spy Case Raises Questions In India About CIA Role
Asia Times columnist M. K. Bhadrakumar writes that US citizen David Headley, a key player (Indian sources say, the mastermind), in the November 2008 Mumbai terrorist attack that killed 166 people* has reached a plea bargain with the Federal Bureau of Investigation (FBI) that allows the US Government to hold back from producing evidence against him in a court of law that would have revealed details of his ties to US intelligence. [*163, according to the NY Times, March 26, 2010; 165, according to the Wash Po, March 27, 2010]
Headley will be protected from cross-examination by the prosecutor, and the 166 victims will not be represented by a lawyer at the Chicago trial that’s now commencing.
Nor can he be extradited to India or questioned by Indian agencies about his links to US and Pakistani intelligence.
(Note: He will be accessible to India through video conferencing, deposition, and Letters Rogatory)
Headley, the son of a former Pakistani diplomat and an American socialite from Philadelphia (according to the NY Times piece), was a drug-pusher in the 1990s who then went on to work for the Drug Enforcement Agency.
He’s said to have prepared for the attack with five visits to India between 2006 and 2008, each time returning via Pakistan and meeting with several handlers, some of whom included members of the terrorist group Lakshar-e-Toiba (LeT), which has close ties to Pakistan’s intelligence agency, ISI (Inter-Services Intelligence)
Headley has reportedly named five-six serving officers of the Pakistan army as among the leaders of the Karachi Project, which organizes attacks on India through fugitive Indian jihadis being sheltered in Karachi by the ISI and the LeT.
The Asia Times article goes on to ask some questions about the CIA’s possible involvement that are likely to strain US-Indian relations:
“How much did the CIA know?
The plea bargain details that while working as an American agent Headley attended at least five “training courses” conducted by the LeT in Pakistan, including sessions in the use of weapons and grenades, close-combat tactics and counter-surveillance techniques, from February 2002 until December 2003.Training courses in April and in December 2003 were each of three months’ duration and in such close proximity to the 9/11 attacks that it stretches credulity to believe the CIA didn’t care to know what their agent was doing in the LeT training camps.
Today, the heart of the matter is how much did the CIA know in advance about the Mumbai terrorist strike and whether the Obama administration shared all “actionable intelligence” with Delhi?
A senior Indian editor wrote on Sunday, “Headley … was convicted on drug charges and sent to jail in the US. We know also that he was subsequently released from jail and handed over to the Drug Enforcement Administration, which said that it wanted to send him to Pakistan as an undercover agent. All this is a matter of public record. What happened between the time the US sent Headley into Pakistan and his arrest at Chicago airport a few months ago? How did an American agent turn into a terrorist? The US will not say.”
Yet, cooperation in the fight against terrorism lies within the first circle of US-India strategic cooperation. The Mumbai attacks led to unprecedented counter-terrorism cooperation between India and the US - “breaking down walls and bureaucratic obstacles between the two countries’ intelligence and investigating agencies”, as a prominent American security expert, Lisa Curtis, underscored in US congressional testimony on March 11 regarding the Mumbai attacks and Headley.
To quote Curtis, “Most troubling about the Headley case is what it has revealed about the proximity of the Pakistani military to the LeT.”
Curtis put her finger spot on the US government’s deliberate policy to view the LeT through the prism of India-Pakistan adversarial ties. This is despite all evidence of the LeT’s significant role since 2006 as a facilitator of the Taliban’s operations in Afghanistan by providing a constant stream of fighters - recruiting, training and infiltrating insurgents across the border from the Pakistani tribal areas.
The US policy is impeccably logical. It prioritizes the securing of Islamabad’s cooperation on what directly affects American interests rather than squandering away Pakistani goodwill by Washington covering for the Indians.
This political chicanery lies at the core of the unfolding Headley drama. What emerges, even if one were to give the benefit of the doubt to the CIA, is that Headley was its agent but he possibly got involved with Pakistan-based terrorist organizations and became a double agent
No doubt, the US administration is behaving very strangely. It has something extremely explosive to hide from the Indians and what better way to do that than by placing Headley in safe custody and not risk exposing him to Indian intelligence?”
Blair’s “Oily” Deals Greased His Iraq War-Mongering
Turns out Tony Blair had his hand in the oil jar, while he was talking up the Iraq war….and after. The Daily Mail (UK) reports:
Last night Tory MP Douglas Carswell said of Mr Blair’s links to UI Energy Corporation: ‘This doesn’t just look bad, it stinks.
‘It seems that the former Prime Minister of the United Kingdom has been in the pay of a very big foreign oil corporation and we have been kept in the dark about it.
‘Even now we do not know what he was paid or what the company got out of it. We need that information now.
“This is revolving door politics at its worst. It’s not as if Mr Blair has even stepped back from politics, because he is still politically active in the Middle East.
‘I’m afraid I have no confidence at all in the committee that vets these appointments. It’s no good telling us these deals may be commercially sensitive - we are talking about the appointment of our former Prime Minister and the public interest, rather than any commercial interests, must come first.’
Liberal Democrat MP Norman Baker said: ‘These revelations show that our former Prime Minister is for sale - he is driven by making as much money as possible.
‘I think many people will find it deeply insensitive that he is apparently cashing in on his contacts from the Iraq war to make money for himself.’
“The committee said yesterday that Mr Blair had taken a paid job advising a consortium of investors led by UI Energy in August 2008. The exact nature of the deal is unknown, but UI Energy is one of the biggest investors in Iraq’s oil-rich Kurdistan region, which became semi-autonomous in the wake of the Iraq war.
“Mr Blair’s fee has not been disclosed but is likely to have run into hundreds of thousands of pounds.
“The secrecy is particularly odd because UI Energy is fond of boasting of its foreign political advisers, who include the former Australian prime minister Bob Hawke and several prominent American politicians.
“Mr Blair successfully persuaded the committee that the appointment was ‘market sensitive’ and could not be made public.”
David Tice On King World News: Trouble Ahead….
David Tice on Eric King’s King World News, December 23, 2009
- This is not another inventory recession; this is unprecedented
- There’s trouble all over the globe - Europe, China, Japan..
- Hunker down, cut back expenditures, get out of stocks, own gold
- Look for deflation followed by competitive currency devaluation, then inflation.
Bill Anderson On The New KKK: Kleptocrats, Kartels, and Kon Men
“As I see it, the bankers are not clueless at all. They understand the game, they understand that the government is going to clean up the mess that they and their friends in Congress and the Bush and Obama administrations have created, and they understand that their antics are going to give them what they always have wanted: a nice, cozy, financial cartel which will provide sweet political contributions for the political classes, bonuses and high pay for themselves, and very little for everyone else.
US Military to Coordinate Haiti Earthquake Relief
Update: Thanks to reader Jeff for this video of an outfit helping with Haiti’s water needs. It might be a better place for donations than any government relief effort.
Original Post:
I haven’t commented on the Haiti earthquake, mainly because I haven’t been on top of the details. Besides, there’s so much coverage in the MSM about it. My beat here remains the untold story.
But one angle does trouble me. The intervention of the military. I can’t bring myself to say they shouldn’t be involved, which would be the principled thing to say, but it bothers me a lot:
“Sometimes it takes a catastrophe to demonstrate just how much more the U.S. military is able to do than simply kill the enemy. Only the U.S. can initially control flights into and out of the Port-au-Prince airport from aboard a nearby Coast Guard cutter, while waiting for an Air Force special-ops team to set up shop at the airport and step up operations to 24/7. Only U.S. warships have the capability to generate up to 400,000 gallons of fresh water a day from seawater. Only the U.S. military can send a spy drone from California to fly lazy orbits over Port-au-Prince snapping close to 1,000 pictures a day, which when compared with similar ones shot last summer, create a map of the hardest hit areas that can be instantly relayed to those working on the ground.
Only the U.S. military has enough aluminum matting to boost the runway capacity of Port-au-Prince airport. Only the U.S. military has the surveillance capability to quickly assess additional Haitian airfields and seaports for use in rescue relief operations. Only the U.S. military has the wide variety of vessels and aircraft to utilize those fields and ports, including air-cushioned vehicles capable of ferrying 60 tons of supplies from ship to shore at 40 knots. (See TIME’s exclusive photos of the aftermath of the earthquake.)
But the limits of U.S. capability can also be seen: The Pentagon diverted an unmanned Global Hawk drone bound for Afghanistan to Haiti instead, to photograph the damage there. “We were about to send that Global Hawk over to the war” until the earthquake, explained Air Force Col. Bradley Butz. “It will stay here until the President says it’s time to send it forward.”
While the drone had no comment about its sudden change of mission, some of those bound for Haiti welcomed the new assignment after more than eight years of war. “Marines are definitely warriors first,” Captain Clark Carpenter said Friday as his unit prepared to ship out to Haiti from North Carolina. “But we are equally as compassionate when we need to be, and this is a role that we like to show - a compassionate warrior that can reach out that helping hand to those who need it.”
Read more at Time for the corporate media’s view of the intervention.
And read Michel Chossudovsky, for the deep structure of the intervention, recent US interventions in Haiti, and the extent and implications of a US military presence there (he argues that it’s to monitor and intervene in Cuba and Venezuela).
I recall the tsunami relief effort in 2004 and the intrusion of military vessels and spy satellites into Indonesia and other regions in Asia. Humanitarian interventions are a prime locus for state meddling, because most people will feel reluctant to second-guess what’s happening. They don’t want come off as hard-hearted carping critics, with nothing positive to offer.
A life saved in Haiti is good PR for a life or two killed elsewhere. If such calculations are mathematical (and with the state they always have to be), then we are indeed better off with the US military, many would say.
Meanwhile, JP Morgan, I see, is donating a million to the relief effort.
And Goldman Sachs, Morgan Stanley, and Bank of America are giving a million apiece too. That will be millions taken from the tax-payer and rival banks long defunct. But from wherever it comes, lives will be saved, right?
Thus do they wash their hands clean of guilt.
Who knows.
Maybe Lloyd Blankfein IS doing god’s work.
Or, at least, he’s Dean of the Jeffrey Levitt School of Philanthropy.
[For those with short memories, Levitt stole some $15 million in the 1980s, in the biggest white-collar crime in Maryland history, and almost single-handedly brought down the savings and loan business in the state. One reason he was able to get away with his thieving for so long was that he was careful to make judicious and well-publicized charitable donations].
Lanka Needs Soros Like A Hole In The Head
“In 1992, Soros earned the epithet “the man who broke the Bank of England” by demanding the Bank to raise its interest rates or to float the currency (so that he could make more money). The Bank did neither. He retaliated by selling “short” more than $10 billion worth of pound sterling, forcing the Bank of England to depreciate the pound: Soros amassed an estimated US$ 1.1 billion in the process.
Kingsford Capital And The Captured Media
Mark Mitchell at Deep Capture has some interesting details about the extensive influence of hedge-funds, specifically Kingsford Capital, on the reporting of stories in the financial press:
“Another focus of my investigation at CJR was the appalling bear raid on a collectibles company called Escala. Not only was Escala the victim of massive amounts of illegal naked short selling, but a hedge fund convinced the Spanish government that Escala’s parent company, based in Madrid, was fleecing investors in philatelic collectibles.
The Machinery of Habit
A piece I wrote four years ago, The Burgh: Downsizing,” examines the nature of change and habit in relation to urban economies transformed by globalization and war.
“The boys come in and the beer flows. Ricardo tells us about training. Four-mile runs, 200 push-ups every morning, wall-climbing. “They break you, man,” he shakes his head. “They make you tough.
“I said I hoped so, considering where he was going. But Melanie, who studies the theology of the medieval anchoress Juliana of Norwich and sells papers on a corner in Oakland for the Socialist Worker, is more worried about his getting into what she calls killing mode. I ask her if a mode is the same as a habit. It takes time after all to form a habit. A mode on the other hand sounds like a gearshift on an Audi. And if you can shift into a gear, you can shift out. Maybe it’s really a question of what sort of habits. Learning, retraining, moving need effort. They don’t come easily. But war is a machinery that moves on its own and blood-lust, like a winter flu, might be easy to pick up and impossible to get rid of.
War and demolition come too easily to human nature. And take away too much. Anything worth pursuing, on the other hand, needs to be stalked through the years with the patience and vigilance of a hunter, cultivated through seasons of scarcity and remembered in times of forgetting. In our sophistication we laugh at those who buy dear and hold dearer. Who stay when they should have left. Bag holders. Fools. Who step into the river and expect the waters to stay the same. The immobilized in our mobile society. What is the value of an abandoned church, an obsolete mill, an aging worker? Flux, we shrug, is the only certainty. Change is the first law of nature.
“People talk about joining but they don’t,” says Ricardo, “I’m the only one who did.” He sounds proud.
“I ask him if he thinks good health insurance and tuition money are worth risking his life for. He laughs.
“Look — I ain’t gonna die. Most of the guys who teach me, they’ve been there. They got through. More chances I’d get shot in a ghetto. So some guy’s lost an arm…or a leg. So what? All this new technology now, reconstruction…they can make you another leg; it’s really no big deal.”At 26, you can think of that as a good trade. An amputation of the body or the mind is all it takes to keep up with change. Like those translucent lizards which shed their tails seasonally as they wait immobile and vigilant for flies on dusty window sills, we might grow new limbs just as good. New memories to replace old ones. Here in the hills, at the confluence of three rivers, we have learned not to resist the laws of nature.
“But perhaps we don’t live by nature alone. Perhaps, as Juliana of Norwich said, we also need mercy and grace.”
“The need to change and the machinery of habit that makes it difficult - a theme I find myself returning to , over and over, especially when I’m confronted with the depressing spectacle of people going back to the same propaganda, the same bogus assertions that caused this global catastrophe in the first place.
Going back, like dogs to vomit.
I’m sorry if that sounds ugly, but what’s happening now in DC is ugly….and very very dangerous.
Why We Believe Propaganda
From a piece I wrote in 2005, “America´s Downing Syndrome,” about why the airwar in Iraq was never represented in media coverage:
“And how does the public conscience square with all this? Simple. The civilians who are fair game are not American civilians. The skies that are threatened are not American skies. It may take a village to raise a child, but given enough air power, we now know also that it only takes a child to raze a village. Our children, their villages. And in return for our invulnerability, we make cultural icons out of bomber pilots, turning a blind eye to their ravages abroad. While the grunt that kills and is killed on the scorched ground bears the burden of public backlash against any horrors of war making that might elude censorship, his mates in the clouds are untouchable. Atrocities are always only committed on earth. So a Lieutenant Calley is court-martialed over My Lai and a Charles Graner is imprisoned for Abu Ghraib, but the bombers who wreak havoc on a magnitude far grander not only walk free, but are feted by a society in which for many reasons the air force is substantially white and the officer corps even whiter.
But there’s more. Strategic bombing directed broadly against a country´s will or morale rather than military targets has nearly always been associated with civilian not military control. Pen-pushers in think tanks and journals, couch-crusaders on Wall Street and Main Street are the most hysterical groupies for total war from the skies. (9) Remote from actual bloodletting, they’re still the quickest to tote up grand calculations of its necessity in bringing about their favorite utopia. It was Lyndon Johnson, not the generals, who first ratcheted up the air war against North Vietnam to genocidal proportions.
And because the civilian leadership unlike the military is always indebted to public opinion for its existence, it´s ultimately public approval rather than military need that drives air war against civilians, which is why the corporate media obligingly does its bit to keep that approval going.
Media and government duplicity, widespread intoxication with technological wizardry, a deadly sense of impunity combined with a deadlier sense of omnipotence, cultural myth making, and socio-economic class are the causes of America’s fundamentally diseased relationship with air power and thus with the raw foundation of imperial might. It is the cognitive disease which periodically manifests itself in redundant “smoking-guns” and “exposes” about memos whose sole purpose apparently is to maintain our illusion of ourselves as eternal naifs duped by an endless procession of charlatans in government.
Clearly, it’s not merely war propaganda so much as the public´s receptivity to war propaganda that’s the problem. The addiction to war-as-Grand Theft Auto reveals an insatiable craving in the bowels of the military-industrial leviathan for physical violence. Air war feeds that craving while disarming us with its technical virtuosity and its remote-controlled, surreal impersonality.
Air war works because it displays naked aggression masked as defense, hard core furtively masquerading as family viewing in the American living room. It’s the secret fix that lets us look like good guys but act like bad guys; it’s the other face of the double-eagle, the predator behind the mask of the protector.
Air war is the white noise of a consumer society so narcotized that only violence makes us feel alive. If we no longer see it, hear it, or talk about it in the heart of empire, it’s ultimately only because for more than fifty years now, we’ve never really done without it.”
Doug Valentine On The Empire of The Lie
Douglas Valentine, author of several masterful books on national security and the CIA, talks to Susan Mazur about Tim Weiner´s new book on the CIA (”Legacy of Ashes”), the nexus of finance and espionage, and the propaganda campaign that lets Americans think the CIA is a force for good.
Here´s a snippet:
“Most of what Weiner writes about the CIA is already known. It’s a history book with a bias, not an expose, at least not for the Vietnam generation. He doesn’t even really get into the current Bush administration. He gives us a predictable treatment of William Casey and the Contras, when there was an incredible revival of the CIA under Casey.”
And that´s precisely what I´d say about exposes that appear in establishment outlets, even if they seem to be literary and anti-establishment (Vanity Fair, New York Times, even, perhaps Rolling Stone, although much less so). They are less about exposing as about controlling the terms of the discourse, that is, the boundaries within which discussion can take place.
Another insight from Valentine:
“Angleton thought William Colby might be a mole. Angleton exposed the divisions within the CIA after 1966, the Colby vs. Helms factions. He also represented the literary sensibility the CIA once had, where finding secrets was like teasing the meaning out of a poem. Now we have sledgehammer spies.”
(Colby, by the way, died in a ‘boating accident’ in Maryland, on the day that a prosecutor got permission to set up a grand jury to probe the death of Frank Olson, who was involved in chemical warfare research and had been one of the subjects of the CIA´s mind control experiments. The CIA claimed Olson jumped to his death from a hotel window, although his injuries, according to the autopsy, could as well have been inflicted by a blunt instrument. I should note that at the time of his death in 1996 Colby´s name was being used on the letter head of Strategic Investments, a publication of Agora Inc. (co-owned by my co-author), according to several reports, although I can´t confirm to my satisfaction the exact status of that association. Several unconfirmed reports also link Colby to knowledge about the death (or killing, according to some) of White House deputy counsel, Vincent Foster, a preoccupation at the time, of Agora co-founder James Davidson)
More from Douglas Valentine:
“The CIA gets oodles of money from the arms business. Most of their income comes from criminal activity.
The Russian Mafia operates with a sort of impunity. And so does the Israeli Mafia. And one of the reasons they have this sort of impunity is that they’re sharing their profits with the CIA.
And I think a lot of CIA money is capital investments. They’re like movie producers. They want to overthrow the Iraqi government, they go to companies like Halliburton and others who are going to profit from the overthrow of Iraq. And like the executive producers of some movie, they get them to ante-up some cash. Telling them, don’t worry about it, the government contracts you get in return will cover your investment. Plus they have the old boy network – which now is so far flung.
Suzan Mazur: Plus some of the military contractors are organized crime and have had contracts since the 50s.
Doug Valentine: Exactly. Which bring us back to Barry Seal (Iran-Contra). Because in 1972, Barry Seal was to fly some arms and some explosives into Mexico. What the Brooklyn Drug Task Force found out is that this guy named Murray Kessler, who was involved with the Gambino family in Brooklyn, had an arms manufacturing company in New Jersey where the guns and the bombs came from.
Suzan Mazur: And some of these arms merchants also had security clearance during the McNamara and Clifford years of heading the Defense Department. They make weapons for the US government and some for whoever they feel like.
Doug Valentine: From my perspective, the spy industry and especially the arms industry, is the foundation on which the American empire is built. The United States has a military budget of I think $300 billion dollars and the CIA budget is like $50 billion – that’s a year. Together that’s bigger than the gross national product of any country in the world. And in the meantime we’re worried about 20 guys in Al-Qaeda.
[Lila: This statement is inaccurate, as both GDP and GNP in most developed countries were near or over a trillion in 2007. See current figures here. I think the author might have been misquoted on this and might have meant “many countries,” for example, in the developing world. However, projections for 2010 place US military spending in excess of 1 trillion, if all military-related expenditures are included).
Continuing with the interview:
“Suzan Mazur: Which exploits of the agency do you consider the most diabolical – aside from the fact that one of its founding fathers molested two of his own children – and a reason why the CIA should have been dismantled years ago?
Doug Valentine: Your readers don’t want to know that answer. The most dastardly thing that the CIA has done is to wage this campaign of psychological warfare against the American people. Where the American people don’t see the CIA for a bunch of basically American KGB agents who are conducting criminal activities around the world. There’s a movie called The Usual Suspects with a much feared criminal named Keyser Soze. And Keyser is talking to a cop and he says the greatest trick that the Devil ever pulled was convincing the world that he doesn’t exist.
And this is what people like Weiner are doing with books about the CIA that don’t explain it for what it really is. They’re part of a propaganda machine that’s making the American people see the CIA in mythological terms as good guys, crusaders, as Lawrence of Arabia – when, in fact, they’re criminals. They’re part of THE GRAND LIE.”
My Comment
The piece is long and, for an intelligence aficionado, packed with illuminating detail. Among other things, Valentine touches on James Jesus Angleton, the most compelling of the spy masters (since he was chief of counter intelligence, I should call him chief spy hunter), the extensive role of private intelligence (which I touched on in my Abu Ghraib book), as well as the manipulation of Wikipedia, which Valentine regards as considerably influenced by the CIA. This confirms my own long-standing observations about Wikipedia. On crucial topics, it stays within the bounds of debate allowed by Western establishment interests and is very far from being an objective or quasi-scholarly affair. (I use the term Western because despite a substantial component of foreigners, the predominant interests served are the interests of the state and the military-industrial and financial industries), the most influential and powerful of which are Western. I do not use the terms capitalist, because I see the establishment as essentially a technocrat or money-managing class, working against capital formation in many respects.
And a final word, from the lips of Bill Colby himself:
“The CIA owns everyone of any significance in the major media.”
Was this tongue-in-cheek, or meant to be taken literally? You decide..
Secy of IMF - Siddharth Tiwari
On November 21 an Indian was named Secretary of the IMF, according to Press Trust of India:
“With a proven track record in managing complex work programmes, Indian economist Siddharth Tiwari has been named as the Secretary of the IMF by its Managing Director Dominique Strauss-Kahn.
Tiwari, currently Director of the Office of Budget and Planning, is set to assume the position, which was held by Shailendra Anjaria before his retirement from the IMF earlier this year.
“Mr Tiwari has the experience and skills” to promote consensus building, which is a critical goal of the IMF Board and Management, Strauss-Kahn said in a statement.”
IMF Sells Gold to India (Updated)
Update 2 (Nov 3): The only other explanation I can think of is that the Indian government is privy to information indicating that the demise of the dollar is much closer at hand than is being given out..
Update 1:
OK. As you know, I’ve found this Indian purchase a bit puzzling. I have a bunch of questions:
*Why didn’t the Indian government make a big purchase earlier this year, at $900, rather than now, at the top?
*What, if any, is the connection between this and the Fisk report a few weeks ago about the Gulf Arabs moving out of the dollar, which a lot of people found odd, despite the reputation of the reporter? The report bumped up the price of gold.
Now, here’s Chuck Butler of Everbank, via The Daily Reckoning:
“I told you yesterday that I thought it would be a “wash” for the dollar and the gold price… But that was before I learned that the Reserve Bank of India paid for their $6.7 billion dollars worth of gold with… SDRs.”
(Note:Reuters reports that the sale was in dollars - which would be dollar negative).
What does this mean? That, over the whole past 15 -20 years of “globalization” while the US Govt. inflated its money and sold its treasuries and fake derivatives all over the world in return for real work and real savings, who were the buyers?
Countries like India, where large parts of the middle-class stored its savings in dollars. Now those dollars are seen as so unsound that the IMF (which is the new locus of Anglo-European global domination) won’t accept them for payment of gold.
That means the Indian government has to give up its SDRs (Special Drawing Rights) in exchange.
Now the resurgent IMF is where the globalists are exerting their power and not in the G20 (which was supposed to augment the power of developing nations when it was established in 1999).
As I blogged earlier, the Financial Stability Board is the new regulatory agency that will coordinate with the IMF, but it includes the G20 and also Spain and the European Commission and is headed by ex-Goldmanite, Mario Draghi and it’s housed at the Bank for International Settlements in Basel. So that is a double hit to any representation India will have in the forum.
India sold gold at the bottom in the 1990s; and is now buying it at the top nearly 20 years later - thus selling part of the gains of these past years. At least, so it seems to me. To me this smacks of neocolonialism.
And now, it becomes easier to understand why the center-liberal establishment media is interested in co-opting the anger against Goldman and channeling it into various subplots of the financial crisis (naked short selling, the bail-outs etc.etc).
I see this as an elaborate feint to divert world attention from the reprise of Anglo American and European colonization over the last two decades - accomplished, with a “black” president in charge.
Here’s a piece on IMF sales of gold in 1999. http://www.independent.co.uk/news/business/imf-sells-gold-to-hep-debt-of-poorest-nations-1090154.html
Notice how similar the language is - they’re doing it to increase funding to the poorest countries, etc. etc.
In the news, Bloomberg reports:
“The International Monetary Fund sold 200 metric tons of gold to the Reserve Bank of India for about $6.7 billion, its first such sale in nine years.
The transaction, equivalent to 8 percent of global annual mine production, involved daily sales from Oct. 19-30 at market prices and is in the process of being settled, the IMF said in a statement yesterday. The average price to India, the biggest consumer, was about $1,045 an ounce, an IMF official said on a conference call. Gold for immediate delivery gained 0.2 percent.”
My Comment:
Interesting. The Indian government doesn’t buy gold at the bottom (2000) but now, when it’s at all time highs (shades of the British government selling gold at the bottom).
Now, the Indian central bank is reputed to be very savvy, as are Indian gold buyers. Most commentators expect gold to consolidate, if not correct, before pushing on. It would make sense for the Indian government to wait and buy it on dips.This is a good move for the IMF. But for the Indian government, which managed to steer the banking system past the whirlpool of unwinding derivatives, I wonder if this move is astute.
Look at the peculiar facts, as reported in the New York TimesWall Street Journal)
“In the last one year, China has increased its gold holdings, by weight, by 75.69%, Russia by 18.78%, the Philippines by 18.50% and Mexico by 108.91%.
Compared with this, India’s central bank did not add anything to its gold reserves in the last one year, according to Bloomberg data.(Lila: Why not? Why buy gold at record prices when the government was unwilling to buy when it was trading much lower, only this year?)
In fact, the share of gold in India’s total reserves has dwindled over the decade.
In March 1994, the share of gold in the total reserves of the country was 20.86%; by the end of June 2009, gold constituted only 3.7% of the total reserves.”
Even the IMF expressed surprise, as Breitbart.com notes:
“A senior IMF official said that the IMF was “lucky” in selling the 200 tonnes to India for roughly 1,045 dollars an ounce, compared with 850 dollars an ounce in April 2008.”
(Lila: In other words, over the whole period of globalization, India sold it’s gold and bought US treasury…dollars…just what the US government was desperate to get rid off, so it wouldn’t drive inflation at home…)
Again, India sold gold cheap and bought it back at its height. Does that sound like savvy behavior from a country renowned for well trained economists and smart gold buyers?
A former governor of the Indian central bank (Reserve Bank of India), Bimal Jalan, said it was to help the IMF meet its funding needs for loans to the poorest countries, for which it had looked to India and China.
As an aside, in an earlier post, I speculated that the report (by Robert Fisk, a very respected source) about Gulf Arabs moving out of the petrodollar - which was promptly denied - might have been a rumor circulated to bump up the price of gold to help IMF gold sales….maybe, I wasn’t so far off, after all.
I went back to an earlier post this year, in February, which quotes from a list in Richard Russell’s letter:
Note: The list looks inaccurate. I’ll go back and find why Russell’s numbers are so different from the World Gold Council figures below them). (Note: Russell is referring to tonnes of gold; the WGC figures are for dollar amounts. So the discrepancies we refer to at in the percentages).The US has 8,135 tonnes….64.4% of reserves
Germany — 3,412… …64.4% of reserves
IMF — 3,217… … …(1)
France — 2,508… … …58.7%
Italy — 2,451… … …61.9%
Switzerland — 1,040… …23.8%
Japan — 765.2… …1.9% …(a potential gold-buyer)
China — 600.0… …0.9% …(should be a big buyer)*A reader notes that this number is too low. I assume it’s a number from before China started buying off market. Compare with list below.
Russia — 495. 9… …2.2% …(is a buyer)
Taiwan — 422.2… …3.6% …(should be a buyer)
India — 357.7… …3.0% …(should be a buyer)
UK — 310.3… … …14.5% …(sold most of its gold at the low price)
Saudi Arabia — 143.0… …11.4% (should buy gold)
South Africa — 124.4… …9.0%
Australia — 79.8… … …6.3%So there you have it. Among countries, Italy, France, Germany, and the US have the most gold. Switzerland has a third of what they have. The UK, South Africa, Australia, and Saudi Arabia are next with about 1/5th - 1/10th as much. Russia and Japan have only a small percent in gold. China and India have even less. What do most Asians have? Debt (treasuries and dollars) from the US. Neo-colonialism anyone?
Correction:
CNBC has the following completely different list of top gold holding countries compiled by tradermark via Seeking Alpha, posted October 13, 2009.
(Note: Data is based on the World Gold Council’s September 2009 report and is converted to US short tons at a rate of 1 T = 1.102311 US tons. All monetary estimates are calculated at the rate of 1oz gold = $1042 US).
United States $298.4 N/A
Germany $125.0 69.2%
International Monetary Fund $118.0 N/A
Italy $89.9 66.6%
France $89.7 70.6%
China $38.7 1.9%
Switzerland $38.2 29.1%
Japan $28.1 2.3%
Netherlands $22.5 59.6%
Russia $20.9 4.3%
European Central Bank $18.4 18.8%
Taiwan $15.5 3.9%
Portugal $14.0 90.9%
India $13.1 4.0%
Venezuela $13.1 36.1%Ron Paul: Fractional Banking Finances War…
*”Paul makes it clear that the Fed isn’t the whole problem. It’s just one part of a system that first went wrong with the introduction of fractional reserve banking centuries ago (banks used to be warehouses, storing depositors’ money for a fee), followed by the spread of European central banks (really just scams to allow a few elite bankers and politicians to expand their own power at the expense of everyone else) and then, finally, the introduction of fiat currency, which freed governments to expand spending and borrowing without regard to, well, anything. The problem, in short, is the whole of modern banking and finance.
*The middle part of the book features transcripts of Congressman Paul grilling Fed chairmen Greenspan and Bernanke. Some of these transcripts date back to the early Reagan era, which means that for going on three decades Paul has been fighting this fight, and slamming into the same brick wall. The Chairmen feel no need to explain themselves to a lowly congressman, and respond with a mixture of lies and obfuscation that apparently fooled most of Washington. The generally-respectful Paul even refers to Greenspan as “pathetic” after one especially dishonest piece of testimony. Less charitable readers will, by the end of this section, want to take a congressional microphone and beat Greenspan and Bernanke senseless.
*Fractional reserve banking and fiat currency make war easier. Back when a ruler needed actual gold to field an army, invading a neighbor required some serious forethought. But once a dictator (or the world’s policeman) could just print a few billion pieces of paper and order some new tanks, “defending the national interest” got a whole lot easier. Hence the bloodbath of the 20th century, and perhaps the mess of the coming decade.
*Paul knows all the major sound money/Austrian economics classics, and he cites them liberally. The “recommended reading” list contains a year’s worth of serious research.
*Though he continues to fight, he’s not optimistic about averting the coming train wreck, which he refers to as the “BIG ONE”.
Obama Heads UN Security Council..
“Barack Obama will cement the new co-operative relationship between the US and the United Nations this month when he becomes the first American president to chair its 15-member Security Council.
The topic for the summit-level session of the council on September 24 is nuclear non-proliferation and nuclear disarmament – one of several global challenges that the US now wants to see addressed at a multinational level.
“The council has a very important role to play in preventing the spread and use of nuclear weapons, and it’s the world’s principal body for dealing with global security cooperation,” Susan Rice, US envoy to the UN, said last week.
Her remarks were the latest by the Obama administration to emphasise a shift from the strategy of the previous Bush administration, sometimes criticised by its UN partners for seeking to use the world body principally to endorse its own unilateral policies. The US currently holds the month-long rotating presidency of the Security Council…”
More at the Financial Times.
My Comment:
Did I read that right? The way to shift away from the Bush administration’s tendency to use the UN to endorse its own unilateral policies is to put Obama at the head of the UN Security Council??
Am I missing something here? How does this represent a shift away? Isn’t it more like coming out of the closet on it?India’s Man at the IMF: Arvind Virmani
The global crisis has had the effect of making over the IMF and giving it renewed power.
Until recently, the Fund had lost its international reputation for what was seen as mishandling of the debt crises in Argentina, Asia, and Russia in the 1990s.
Now, however, with a universal cry of “do something” going up, it’s the IMF to the rescue. The Fund has had its monies tripled, and is at the center of a new global regulatory regime, ostensibly working with the G20 (the Group of Twenty, a forum that includes the twenty countries with the greatest GDPs).
The idea is that the G20, which has room for countries like Argentina, Brazil, China, India, and Indonesia, among others, will be more inclusive than forums limited to the developed nations. To check if this is actually the case, I’ve been looking at the structure and organization of the IMF and its affiliated groups, and will be posting what I find as I go along.
Exhibit A is India’s representative to the IMF. That’s Arvind Virmani, Chief Economic Advisor in the Ministry of Finance. Virmani, according to this article in the Indian Express, was educated at Harvard (PhD in Economics), was the Principal Adviser to the Planning Commission, and was also a contender for Vice President of the Reserve Bank of India. Before joining the government, he was a Senior Economist at the World Bank research department.
It’s always the case. The people who end up representing countries like India are all trained in the elite schools in the West, where the faculties are drawn from the US government, as well as the very corporations and international institutions that the representatives will interact with, and often be responsible for monitoring or regulating.
How independent can they be? And even if they’re personally ethical people, how easy will it be for them to even think outside the parameters set by the institutions in which they’ve trained and operated all their lives? Not easy at all. In fact, impossible.
Let’s see if we can trace some of the connections:
Virmani is an alum of Harvard.
It so happens that Larry Summers, current head economic adviser of President Obama, was the 27th President of Harvard (2001-2006).
Summers is said to have been behind Harvard’s investment in interest rate swaps that eventually lost the university over a billion dollars.
Before that, Summers was Chief Economist of the World Bank (1991-1993) - where Virmani worked before 1987- and then Undersecretary and Deputy Secretary of the US Treasury, before becoming Secretary in 1999..
Summers’ long-time mentor is Robert Rubin, whom he succeeded at Treasury Secretary.
In the 1990s Summers was a leading advocate of the Washington consensus–the proposition that free financial markets, “free” trade and fiscal discipline would bring prosperity to the world.
I put “free” in quotes because what it really amounted to was managed trade, manipulated by the US government with carrots and sticks of sorts…from nuclear weaponry to aid to penalties to sabre rattling
While Summers was pushing the Washington Consensus, his mentor Robert Rubin, a former Goldman co-chair, was US Treasury Secretary, where he was instrumental in blocking legislation to regulative the derivative market.
Rubin also pushed through the repeal of the 1933 Glass-Steagall Act (keeping apart merchant banking and commercial banking), which enabled the consolidation of the banking industry.
Then, Rubin became the director of Citigroup, one of the banks whose consolidation was made possible by that repeal. Citi shareholders have filed a lawsuit against Citi executives including Rubin charging that they sold shares at inflated prices, hiding the risks. Shareholders are said to have suffered losses over 70% since Rubin joined Citi.
Meanwhile, Rubin also has a Harvard connection, being a member of the executive governing board of the university, a position he landed a year after getting an honorary doctorate from Harvard.
Importantly, Virmani also shares his Harvard ties with current World Bank president, Robert Zoellick. Zoellick is also an alum of Goldman Sachs, a former US State and Treasury official, a Presidential assistant and US Trade Representative, and a double graduate of Harvard (JD and MPP).
Finally, the IMF position is known to be a sinecure for retiring Indian government economists, who can earn some hard currency for their retirement.
Question: Even if Virmani were scrupulously honest himself (and he might be), how easy would it be for him to be able to stand up to policies carrying the imprimatur of some one like Rubin or Summers or Zoellick? Not easy at all. In fact, impossible…
China’s Gold Rush..
From Adrian Ash at Bullion Vault, via goldseek:
“The International Monetary Fund confirmed on Friday that it will sell 403 tonnes from its hoard to finance development projects in poorer countries, offering gold to central banks before considering steady, pre-announced open-market sales.
“China has no need at all to Buy Gold from the international markets,” counters Lila Lu, chief precious metals trader at Minsheng Bank Corp. in Beijing, speaking to Reuters.
“Because China is a large gold producer, it can source gold directly from its domestic makers, most of which are state-run enterprises.”
Off-market purchases direct from domestic Gold Mining firms enabled South Africa – then the world’s No.1 producer – to double its gold reserves during the late 1960s.
“Why should we use US Dollars to Buy Gold?” Lu added today. “We can use Yuan instead to purchase gold from domestic producers.”
Early Tuesday the state-owned China Investment Corp. announced taking a 15% stake in Singapore-listed commodities trading house Noble Group at a cost of $850 million.
Physical gold demand from private Chinese households rose 9% in the first half of this year, trade marketing-group the World Gold Council said today, announcing an “unprecedented” sales push across rural China.”My Comment
There are several terribly important things going on in the capital markets and in international politics.
I’ll start with what most investors are probably watching anxiously - the teetering of the dollar at the lower end of the long term band of support (76-80), below which it plunged only a year ago. After showing some strength yesterday, the dollar is down again and gold is back up strongly over 1010. The reason seems to be the whispering in the markets that China will be buying IMF gold to supplement what are said to be meager reserves.
Rumors like these could be seen as a threat by the Chinese, for they expose China’s weakness in relation to other countries, especially those that possess better gold reserves. I suspect the comments by Lu are intended to diffuse that threat.
Another reason for dollar weakness is that the relative strengths of currencies are on the table at the G20 meeting, which is scheduled to take place in Thursday in Pittburgh, Pennsylvania and trade deficits are going to be considered - which is likely to be dollar negative.
The IMF sales are pretty interesting, although it’s hard to tell exactly what’s involved. It seems the gold will be sold to central banks (which ones?) and the proceeds will go to supplement and improve the financing now available to low-income countries (how?).
Question: Why should these professed good intentions be taken at face value, given all we know about the IMF?
At present, the IMF also allocates SDRs (or Special Drawing Rights) to each member country based on its contribution to the IMF (this is supposed to be a way to improve members’ liquidity in the international markets).
The SDR’s are based on a basket of currencies - currently, the US dollar, the euro, the sterling, and the yen - that can be traded for other currencies or used directly.
The IMF will use the gold sale proceeds to invest in other things. The interest from those investments will then benefit low-income countries. At least, that’s what I took away from my reading.
It all sounds suspiciously convoluted and opaque. My fear is that this is all an elaborate charade to leave some countries/institutions holding the “paper” bag, while real value is siphoned off by other countries/institutions.
I’ll leave you to decide who the winners and the losers will be….
Meanwhile, this is only my suspicion. I’ll need to go and do some more digging. But I’m putting my suspicions out here to fuel some leg work in the blogosphere.
Here’s a link to some relevant information on gold market manipulation at the website of the Gold Anti-Trust Action Committee (GATA), the leading activist group on gold price manipulation.
Especially read through the events surrounding the sale of Britain’s gold by then Chancellor of the Exchequer, Gordon Brown. Unlike other countries, UK gold sales are under the authority of the politicians. Brown sold British gold at a price lower than the market price at the time. The timing was extremely suspicious and followed on Robert Rubin’s unsuccessful attempts to get the IMF to sell its gold. The ostensible reason was to “help poor countries” - the same reason being given now. But the actual reason was a simpler one and one I’ve discussed a number of times. It was to keep the gold price low to support the dollar, disguise the rate of monetary debasement, and pump up the stock market. That in turn helped the derivative market, which Rubin and Greenspan had also helped to keep out of regulation. This was in the late 1990s….
Now, a decade later, the IMF hasn’t been weakened by the revelations of its sins. Instead, it’s been strengthened. And now, again, the IMF is selling gold - and again, the excuse is “helping the poor.”
Vulture Funds Prey on Third World Debt..
Johann Hari has a critical piece on “vulture funds” at The Independent that is sure to be polarising:
“Would you ever march up to a destitute African who is shivering with Aids and demand he “pay back” tens of thousands of pounds he didn’t borrow – with interest? I only ask because this is in effect happening, here, in British and American courts, time after time. Some of the richest people in the world are making profit margins of 500 per cent by shaking money out of the poorest people in the world – for debt they did not incur.
Here’s how it works. In the mid-1990s, a Republican businessman called Paul Singer invented a new type of hedge fund, quickly dubbed a “vulture fund.” They buy debts racked up years ago by the poorest countries on earth, almost always when they were run by kleptocratic dictators, before most of the current population was born. They buy it for small sums – as little as 10 per cent of its paper value – from the original holder and then take the poor country to court in Britain or the US to demand 100 per cent of the debt is repaid immediately, plus interest built up over years, and court costs.”
My Comment
I’ve been interested in these lucrative public-private philanthropic ventures for some time. “Doing good” has become the avenue for “doing well.” This is touted by some people as the “markets working for people.” But the markets work for…and against..people all on their own. They don’t need the bells and whistles of public philanthropy added.
And when philanthropy been added, as my earlier post on Jeffrey Levitt indicates, it’s usually been added for an ulterior motive. Thus Hari’s activism against vulture funds.
Having made that point, I have a few problems of my own with Hari’s post that I’ll come back later.
First, here’s a response from the object of Hari’s criticism - one Michael Sheehan, the founder of Debt Advisory International (DAI) (which manages several vulture funds) and a Republican donor to George Bush’s campaigns. Sheehan’s letter is cited by Felix Salmon at his Reuter’s blog. The crux is at the end:
“At the end of the day, then, the anti-vulture legislation will accomplish exactly the opposite of what it set out to do. It will have increased the debt burden of all HIPC countries, increased the cost of credit for all HIPC countries, increased the barriers to foreign direct investment for all HIPC countries and increased the amount that will be demanded from the OECD countries in support of aid budgets for all HIPC countries. There won’t be any savings. The costs will be in the billions and will be annual costs you won’t get rid of.
You will, of course, in the process have increased the power and leverage of the development set, but then that was the intention all along, wasn’t it.”There’s more on Sheehan and the creator of the concept - Paul Singer - in this piece, which also sheds some light on just how influential vulture funds are:
“Debt Advisory International are very generous to their lobbyists in Washington. They have been paying $240,000 a year to the lobby firm Greenberg Traurig - although recently they jumped ship to another firm after Greenberg Traurig’s top lobbyist was put in jail.
Paul Singer has more direct political connections. He was the biggest donor to George Bush and the Republican cause in New York City - giving $1.7m since Bush started his first presidential campaign.”
Many of the debt purchases are also corrupt, as this BBC piece indicates:
“The Zambian deal with Donegal for instance involved an official in former President Frederick Chiluba’s administration who was later found - along with the president - to have stolen £23m from Zambia.”
From Third World Traveler come further details:
“The debt, originally owed to Romania for agricultural machinery and services, was accrued during the cold war. The amount claimed by Donegal was far more than Zambia is due to receive this year in debt relief - as agreed at the G8 meeting in Gleneagles in 2005. It is equivalent to more than six months of Zambia’s health budget.
Since qualifying for debt relief, Zambia has introduced free primary rural healthcare and announced plans to employ 4,500 teachers and hundreds of nurses. But one in three children in Zambia still does not go to primary school, nearly 80% do not receive secondary education and the average income is barely $1 a day. Donegal International’s claim threatens to undermine Zambia’s plans for poverty reduction.”
My Comment:
The vulture funds are, of course, behaving unconscionably. But moral outrage after the fact is less effective in stopping such things as not providing the incentives that entice unscrupulous people in the first place.
And these incentives are usually put in place by the state…in this case, by the global financial organizations, the IMF and World Bank, which were behind the economic policies that turned the once relatively prosperous country of Zambia into a basket-case, where half the population is malnourished.
So yes, the vulture funds are predators - but their predation is secondary and far smaller than the predation of the scavengers of the first order - the global managers whose “aid” has a strange way of devastating its recipients...
Economic Freedom in US in Decline..
An interactive map of world economic freedom at the Cato Institute (2007)
Cato also has the 2009 Economic Freedom of the World Annual Report which shows the US number 6 in the world, much lower than the number 2 spot it held in 2000.
The Renegade Economist on Gordon Brown’s Lies
The Renegade Economist takes apart Gordon Brown’s inane attempts to pretend he had no hand in the global financial collapse.
Milton Nascimento Sings the Jet Samba
Brazil’s Milton Nascimento sings Anton Carlos Jobim’s musical celebration of Rio de Janeiro, Samba do Avaio (The Jet Samba) . The lyrics reference the statue of Christ the Redeemer that towers over the city and the Guanabara.
Minha alma canta
(My soul sings)
Vejo o Rio de Janeiro
(Seeing Rio de Janeiro)…..Cristo Redentor
Braços abertos sobre a Guanabara…Why More Swine Flu Deaths in Bangalore?
From Sify.com:
“State health commissioner P.N. Sreenivasachari told IANS: ‘It’s difficult to say why Karnataka, more precisely Bangalore, which is endowed with adequate healthcare facilities, is witnessing large number of swine flu deaths. We too are puzzled.
‘We can say the virus is already in the air and it’s time people became more aware and cautious to stop the spread of the virus. However, from the point of view of the administration, we have provided adequate healthcare facilities to treat swine flu patients,’ added Sreenivasachari.
Principal secretary (Health) I.R. Perumal said people should not get panicky.
‘People with swine flu like symptoms should immediately get themselves checked, as the city is well equipped to deal with the pandemic,’ added Perumal.
On Friday, two deaths were reported from Bangalore, one came from Bijapur.
My Comment
Why? I have no idea. More international travelers is one reason and a plausible one. But I confess I couldn’t help thinking about this piece I wrote in 2005, “Terror Hits Bangalore.”
One result of swine flu scare-mongering will be a shift of money to influenza research - hitherto absent in India. That means funding for drug trials. I wonder who the lucky drug companies are that will benefit?
The two states hit hardest are Karnataka (where Bangalore is) and Maharashtra (where Bombay is). Those are also the states that are the destinations of most foreign travelers and where India’s IT business and stock market are located. Bangalore is the home of a booming biotech business. And a locus of the anti-globalization movement as well. Just thinking out a loud…
Deaths so far are a hundred or less. That’s in a country of roughly a billion and a quarter where tens of thousands die from traffic accidents (300 a day or around 100,000 a year) and from water-borne diseases like diarrhea, typhoid, and jaundice. Hundred of farmers are committing suicide. None of that has qualified for the term pandemic….OR for the accompanying switch in research funding..
Here’s some information on malaria in India in 2008:
“While the official figures state that in 2008 India had 1.5 million malaria cases, resulting in 924 deaths, the real number of deaths is higher by several orders of magnitude.
“These numbers are a joke,” said Sunil Kaul, a doctor who works for a volunteer organization called the Ant that treats villagers. “In Assam alone we had at least 1,500 deaths last year.”
The real number of malaria-related deaths in India was closer to 40,000 in 2008, according to various non-governmental sources and some government officials who didn’t want to be named.”
Under-reporting and lack of knowledge about the disease are two of the main obstacles in retarding the spread of malaria. But interestingly, it’s also international organizations like WHO that obstruct progress in many ways:
“These problems are further complicated by foreign agencies such as the World Health Organization (WHO), which — under the influence of global lending agencies like the World Bank and big pharmaceutical companies — have pushed India to adopt prevention methods that don’t suit the local conditions and to initiate huge, ill-considered projects rather than targeted ones. ….”
More here at The Global Post.
What Barack Obama Left Out of His Foreign Policy Speeches
From Bill Blum’s Anti-Empire Report:
I’ve compiled a list of CIA assassination attempts, successful and unsuccessful, against prominent foreign political figures, from 1949 through 2003, which, depending on how you count it, can run into the hundreds (targeting Fidel Castro alone totals 634 according to Cuban intelligence)2; the list can be updated by adding the allegedly al Qaeda leaders among the drone attack victims of recent years. Assassination and torture are the two things governments are most loath to admit to, and try their best to cover up. It’s thus rare to find a government document or recorded statement mentioning a particular plan to assassinate someone. There is, however, an abundance of compelling circumstantial evidence to work with. The list can be found here.
For those of you who collect lists about splendid US foreign policy post-World War II, here are a few more that, lacking anything better to do, I’ve put together: Attempts to overthrow more than 50 foreign governments, most of which had been democratically-elected.
After his June 4 Cairo speech, President Obama was much praised for mentioning the 1953 CIA overthrow of Iranian prime minister Mohammed Mossadegh. But in his talk in Ghana on July 11 he failed to mention the CIA coup that ousted Ghanian president Kwame Nkrumah in 19663, referring to him only as a “giant” among African leaders. The Mossadegh coup is one of the most well-known CIA covert actions. Obama could not easily get away without mentioning it in a talk in the Middle East looking to mend fences. But the Nkrumah ouster is one of the least known; indeed, not a single print or broadcast news report in the American mainstream media saw fit to mention it at the time of the president’s talk. Like it never happened.
And the next time you hear that Africa can’t produce good leaders, people who are committed to the welfare of the masses of their people, think of Nkrumah and his fate. And think of Patrice Lumumba, overthrown in the Congo 1960-61 with the help of the United States; Agostinho Neto of Angola, against whom Washington waged war in the 1970s, making it impossible for him to institute progressive changes; Samora Machel of Mozambique against whom the CIA supported a counter-revolution in the 1970s-80s period; and Nelson Mandela of South Africa (now married to Machel’s widow), who spent 28 years in prison thanks to the CIA.4
- Gross interference in democratic elections in at least 30 countries5
- Waging war/military action, either directly or in conjunction with a proxy army, in some 30 countries
- Dropping bombs on the people of more than 30 countries
- Attempts to suppress dozens of populist/nationalist movements in every corner of the world6″
My Comment:
The issue here isn’t whether you or I approve of everyone of these leaders…or not (I don’t).
The issue isn’t whether some other country might not have done even worse if it had the power the US had (they might have).
The issue is - is it the business of the US government to interfere in the rule of other countries, foment coups and revolutions, police, bomb, and spy on millions of people?
And how does any of that make us safer, richer, or freer?
Gore Vidal On the Bridge to Fascism
Gore Vidal on a bridge to somewhere bad :
“I went back to the lecture hall at Duke where I’d been speaking, and I chatted about the woods, about the bridge. Nobody seemed to have noticed it. I asked a politically minded professor, and he said, “Well, it’s a problem.” He said, “The government’s getting ready for something; we don’t know what it is, but something’s obviously on their minds that’s disturbing them.” And I said, “Revolution?” “Oh,” he laughed, “this is North Carolina, don’t bother about that, but whatever it is, they’re putting a lot of money into this bridge.”
A year or two later, I took the same walk again. There was a very large bridge of solid cement, and it looked entirely finished. I found another gentleman of the forest, and I said, “Well, can you find much use for this huge and expensive bridge?” He said, “It certainly was expensive, I can tell you that.” He had the happy look of someone who had benefited from the expense. We chatted about the government and what they were up to, and a certain wariness could be heard in our dialogue. We were puzzled; something unexpected had happened, something really unimaginable—a vast work had been constructed for imminent horrors, it would have seemed. I did ask here and there about it, but I was given no answer….”
Time to Run
My latest piece, “Time to Run”, at Lew Rockwell:
“Is it time to run?
That’s what I’ve been asking myself for three years now.
Before that, I thought it was simply a matter of finding a better place to live. A place that was quieter and cheaper. Where flippers and developers hadn’t taken over the neighborhood. Somewhere safe I could park my car on the street and not worry about it.
But by the time I found it, I also found that the thieves were inside the house, not on the street. There’s really no hiding from them. And no hiding from what they can do.
Our mene, mene, tekel upharsin is on the wall.It’s time to run, not hide.
I mean that. We’re in the throes of an economic collapse of a kind last seen in the 1930s. The government is intent on grabbing control of whatever it can. American firms are dropping like flies. Unemployment is soaring. Debt is soaring. The money supply is soaring. Our foreign policy is a wreck – we have more enemies than we can count. We have a drug war on the borders, we have gang war in the ghettos, we have culture wars in the academy and media.We have criminals in government.
The future isn’t any brighter. Subprime is only the first leg down. We still have a second wave of housing trouble in store, centering around commercial real estate and option ARM loans.Gerald Celente, the CEO of Trends Research, wrote a piece last year predicting that by 2012 there would be food riots, tax rebellion, and revolution across the country. Celente has a good track record in the forecasting business.
Experts predict a 100% rise in prices across the board. In the best-case scenario, it will happen over ten years. In the worst case, it might happen within months….”Read the rest at Lew Rockwell
Government Posts Highly Confidential Civilian Nuke Info on Internet
Oh dear. The blunderbuss in Washington strikes again. AP reports:
“WASHINGTON – The government accidentally posted on the Internet a list of government and civilian nuclear facilities and their activities in the United States, but U.S. officials said Wednesday the posting included no information that compromised national security.
However, Energy Secretary Steven Chu, questioned about the disclosure at a House hearing, expressed concern with respect to a uranium storage facility at the department’s Y-12 facility in Oak Ridge, Tenn. The facility holds large quantities of highly enriched uranium, which if obtained can be used to fashion a nuclear weapon.
“That’s of great concern,” said Chu, referring to the Y-12 site. “We will be looking hard and making sure physical security of those sites (at Y-12) is sufficient to prevent eco-terrorists and others getting hold of that material.”
But later Chu told reporters that while the disclosure may be embarrassing “there’s no secret classified information that’s been compromised (and) the sites and everything are public knowledge” already available elsewhere.”
My Comment
The rest of the article, which refers to the material as “sensitive” and “highly confidential” and unavailable in one place anywhere else, seems to contradict the phlegmatic Mr. Chu.
But this is bureaucracy in action. Listen up, people. This is the lot that’s scaring you into thinking your safety is their number one priority. Right. That’s why Congress has its underground bunker all fitted out and ready to go in case of some endgame fireworks.
And you have…what? A house. Oh yes. That paper-mache prefab box on which you’re upside down anyway…
That should be a real haven in case of a thermo-nuclear accident in the vicinity.
And I suppose you also have a great permanent job with fantastic medical coverage for you and all your little tots too, in case…just supposing, I mean…that said nuclear incident might have a teeny-weeny negative effect on your health.
Award Winning Research Proves that Fed Fiddled Us Into Disaster
A Distinguished Academic Research Award went to researchers who showed that Bernanke’s tinkering with the interest rate converted a minor recession in 2004 into a full-fledged implosion of the credit markets in 2008:
“In a correlative movement with the rise in the price of oil, the Federal Reserve moved from a low accommodative interest rate policy to one of a steady and consistent increase in interest rates between 2004 and 2007. The switch in policy, to higher interest rates, combined with the financially corrosive effects of low initial variable interest rates, between 2001 to 2004, converting to much higher indexed variable interest rates, between 2005-2008, became a prime cause of the financial services mortgage crisis of 2008. The study suggests that the Federal Reserve’s sustained manipulation of interest rates between 2000-2008 had a deleterious effect on financial lenders and individual borrowers.”
– “Federal Reserve Interest Rate Manipulation between 2000-2007 and the Housing Mortgage Crisis of 2008,” by Dr, Fred M. Carr and Dr. Jane A. Beese, August 8, 2008, of the University of Akron’s .K. Barker Center for Economic Education.
My Comment
(later)
Bail-Out for Insurers
In the news:
“The Hartford Financial Services Group Inc. was the first to disclose Thursday that it had been notified by the Treasury Department that it was eligible for $3.4 billion from the Troubled Asset Relief Program, or TARP. Lincoln National Corp., which commonly goes by the name Lincoln Financial Group, said it has been initially approved for a $2.5 billion injection from TARP’s Capital Purchase Program.
Allstate Corp., Ameriprise Financial Inc., Principal Financial Group Inc. and Prudential Financial Inc. also are among insurers receiving preliminary investment approval, Treasury spokesman Andrew Williams confirmed. He declined to disclose the amount of investment each company will receive.
The total capital injection into the six companies will be less than $22 billion, The Wall Street Journal reported, citing a person familiar with the situation…”
My Comment
22 billion might not seem like a lot, but insurers’ holdings have taken a big hit in recent months, it seems, and a cut in their ratings would have been likely once their assets fell below a certain level.
So you have government ownership of large parts of the housing market (which itself covers, in all its aspects some 30% of the economy), extensive government intervention in banking and insurance, government run trade, government run schools and colleges, government run social security and medicaid and medicare, and what does the left think the problem is? The free market!
Insiders Selling the Rally
Insiders are selling this rally like crazy, so says The Pragmatic Capitalist:
“I recently wrote about reports that insider selling was at record highs and buying was practically non-existent. The selling has become even more alarming in the last week and the buying has slowed to an absolute trickle. Below you’ll find the list of latest insider buys and sells. The sells are staggering with the amounts ranging from $3MM to $63MM (and I was only able to copy one page). The buys, on the other hand, are meager and range from $100K to $635K (the $800K purchase is a few months old and shouldn’t be in the data). You’ll also notice that the screen came up with just 18 total purchases vs 170 total sales (the lowest of sell screen data were sales of over $400K which is not shown here due to the large size of the results…”
My Comment
Wall Street, as well as the administration, both want to boost the market for reasons that partially overlap. The administration wants to be able to justify the bail-outs and retain some of the shine of of the pre-election rhetoric of “change”. But too much optimism will work against legislation/reforms that need a certain amount of panic to be passed.
Wall Street, on the other hand, doesn’t want panic at any price. It wants stability and optimism. And is eager to jump at any positive news it gets.
Mike Martin at MartinKronicle has a long and interesting interview with Victor Sperandeo (of “Trader Vic”), who calls it - as most informed commentators do - a bear market rally. Sperandeo’s voice is a bit hard to follow but Martin’s questions are searching and cover a lot of ground.
Two points:
Sperandeo (like nearly everyone else) thinks currency depreciation is inevitable and massive inflation around the corner.
He’s pessimistic about the Middle East situation and anticipates more friction with Iran.
Bernanke and Paulson Pressured BOA-Merrill Merger
More evidence of behind-the-scenes string-pulling in the banking crisis:
NEW YORK (Reuters) -
Bank of America Corp CEO Kenneth Lewis testified under oath that Federal Reserve Chairman Ben Bernanke and then-Treasury Secretary Henry Paulson pressured him to keep quiet about losses at Merrill Lynch & Co, which the bank was buying, the Wall Street Journal reported.
Testifying before New York Attorney General Andrew Cuomo in February, Lewis said “it wasn’t up to me” to reveal Merrill’s fourth-quarter losses as they were becoming apparent in December, the newspaper said, citing a deposition transcript.
Shareholders of Merrill and Bank of America voted to approve the merger on December 5, and the transaction closed on January 1. Bank of America subsequently reported that Merrill lost $15.84 billion in the fourth quarter.
At Bank of America’s April 29 annual meeting, shareholders will vote on whether to force Lewis to step down as chairman of the largest U.S. bank or leave its board, because of Merrill and a falling share price…”
Read more at Reuters
My Comment
Why do people think nationalization will improve matters?
We’ve nationalized already…. unofficially.
Making it official won’t improve anything. It will just get people to accept what’s going on and legitimize the swindle.
We’re like bystanders at a mugging fighting over who ought to get the money the mugger left behind when he fled.
No. See mugging, call cops.
That’s how it’s supposed to go.
India’s Illegal Rendition?
Just saw this really interesting piece of news from early March 2009 on what looks like an illegal rendition (ala the CIA and Mossad) of an accused terrorist associated with the Bangalore blasts [July 2008]:
“In a top secret mission, a team of the Research and Analysis Wing tracked down an absconding accused in the Bangalore serial blasts case in Muscat, and sneaked him out of Oman, since India doesn’t have an extradition treaty with that
country .Sarfaraz Nawaz, 32, who allegedly played a major role in
financing the Bangalore blasts, had sought refuge in Muscat.Investigating officials told rediff.com that a RAW team managed to track down Nawaz in Muscat. They added that Nawaz was ’smuggled into’ Bangalore on a chartered aircraft.
The entire operation was so secretive that even the Air Traffic Control was taken aback when they received a message to help the chartered aircraft land at the Bengaluru [Images] International Airport.
After landing at the airport, officials of the RAW and the Intelligence Bureau called top Central Industrial
Security Force officials and directed them to escort the passengers in the aircraft.The officials handed over Nawaz to the Bangalore police, who are currently questioning him.
Abdul Sattar, the prime accused in the case, had revealed Nawaz’s role in the serial blasts during his interrogation.
Nawaz was reportedly close to Riyaz Bhatkal, a key Lashkar-e-Tayiba [Images] operative, who later took over the charge of the Indian Mujahideen [Images].
With Nawaz’s arrest, the Bangalore police are hopeful of tracking down the remaining suspects, who might have fled the country after the Bangalore blasts.”
More here at Rediff.com
My Comment:
Here’s a piece I did a few years ago on jihad in India, specifically, in Bangalore, Jihad and Cyberworld.
And here’s a perspective from the Indian left, by Pankaj Mishra.
I’m generally sympathetic to the view presented by Mishra’s pieces, but there are some angles that strike me as off-base.
What I agree with
As I wrote in another piece on the subject (”Operation Romeo: Lessons On Terror Laws In Indian Country”), terror laws in India haven’t worked very well. It’s unlikely that adopting CIA/Mossad-type renditions (what next? assassinations?) will do better. Whatever immediate successes Indians might hope to gain from them will be marginal and fleeting next to the precedent renditions set for more secrecy, coverts ops and violation of international and national laws. There’s just too much scope for abuse of power.
What I disagree with is a passage like this one
Mishra:
“Apparently, no inconvenient truths are allowed to mar what Foreign Affairs, the foreign policy journal of America’s elite, has declared a “roaring capitalist success story”. Add Bollywood’s singing and dancing stars, beauty queens and Booker prize-winning writers to the Tatas, the Mittals and the IT tycoons, and the picture of Indian confidence, vigour and felicity is complete.
The passive consumer of this image, already puzzled by recurring reports of explosions in Indian cities, may be startled to learn from the National Counterterrorism Centre (NCTC) in Washington that the death toll from terrorist attacks in India between January 2004 and March 2007 was 3,674, second only to that in Iraq. (In the same period, 1,000 died as a result of such attacks in Pakistan, the “most dangerous place on earth” according to the Economist, Newsweek and other vendors of geopolitical insight.)”
Here’s my caveat:
Comparing India’s death toll from terrorism between 2004-2007 (3,674) to the death toll from terrorists in Pakistan (1000) and in Iraq is disingenuous, given the vast difference in the population and size of the three countries.
Per wiki:
India: Area 3,287,240 sq. k. Population 1,147,995,904 (2008 estimate)
Pakistan: Area 803,940 sq. k. Population 165,900,000 (2008 estimate)
Even if Mishra’s death numbers are right, India is only about four times the size of Pakistan, but it’s roughly seven times as populous. Indian deaths from terrorism, however, are only about four times as many as Pakistani deaths. That is, the number of deaths from terrorism is a bit over half of what it is in Pakistan.
That’s quite a bit of a difference. India’s far from being free of terrorist violence as “India Shining” advocates would have you believe.
But it’s also not as riven with violence as Pakistan. And, for whatever reasons, terrorists do in fact find safe harbor and training grounds in Pakistan.
Greenwald Calls Out Right-Wing Amnesiacs
From Salon, the tireless Glenn Greenwald calls out the amnesiacs on the right for double standards:
“Conservatives have responded to this disclosure as though they’re on the train to FEMA camps. The Right’s leading political philosopher and intellectual historian, Jonah Goldberg, invokes fellow right-wing giant Ronald Reagan and says: ”Here we go Again,” protesting that “this seems so nakedly ideological.” Michelle Malkin, who spent the last eight years cheering on every domestic surveillance and police state program she could find, announces that it’s “Confirmed: The Obama DHS hit job on conservatives is real!” Lead-War-on-Terror-cheerleader Glenn Reynolds warns that DHS – as a result of this report (but not, apparently, anything that happened over the last eight years) – now considers the Constitution to be a “subversive manifesto.” Super Tough Guy Civilization-Warrior Mark Steyn has already concocted an elaborate, detailed martyr fantasy in which his house is surrounded by Obama-dispatched, bomb-wielding federal agents. Malkin’s Hot Air stomps its feet about all “the smears listed in the new DHS warning about ‘right-wing extremism.’”
Amazing chutzpah. Malkin’s, especially, considering that her magnum opus was a celebration of the internment of Japanese citizens during World War II, precisely the kind of violation of liberties she’s exercised about now.
No. Libertarians have to wash their hands off the two-party system entirely and admit that both parties are too compromised by their records to pose as civil libertarians and constitutionalists at this hour. Give the mic to the people whose record holds up, please.
Or to anyone else but these folks.
The Shill World Order
From a face-book link, The Shill World Order: Pushers of the False Left-Right Paradigm
“Now with the election of Obama, we see the friends that joined us under Bush, retreat to their liberal corner and take on the role the neo-cons did, in order to shield Obama from criticism. Therefore under Obama, government dissent equates to fascist extremist who hate blacks. This is the standard program that the corporate left uses in order to quell government dissent by hyping militia groups and racists. Just think back to all the subterfuge associated with groups on the right, who were against government corruption under Clinton. An unbiased look at the political environment back in the 90’s would show that they were not all extremist, and the events hyped up in the media had the fingerprints of COINTELPRO all over it.
Just recently in Philadelphia, 2 undercover officers organized a KKK rally and they were the only ones who showed up. Several people showed up to protest these racist who were actually cops. The anti-racist activists smashed the car of the posing skinheads, after they antagonized the protesters. An excerpt of witness testimony to the court is below.”
My Comment
Well, this has been my experience too. When you step outside the box and tell it like it is (and since I am a true outsider it’s been easier for me to do), you’ll get trouble.
First, you’ll be ignored.
This will be enough to get most novice writers to shut up and move to some safer ground. Maybe give up writing anything except what fits the mold of the alternative press (they have a mold too).
If by chance you survive that and still manage to get heard, you won’t get attributed. You may be read, but you’ll be subtly tarnished as a possible kook, racist (it doesn’t matter that you’ve never written anything remotely racist) or whack-job. Expect to be called a “wing-nut” if you’re anything other than a socialist. Criticize any of the following: Israel, the Israeli lobby, the media, the financial industry, the banksters. the Federal Reserve, drug and money laundering through the stock market, and also be a believing Christian or sympathetic to Christians and you can expect to be called anti-Semitic. (And if you’re also an immigrant from a developing/third-world/less developed (take your pick of the label, I can’t keep track) country, you’re obviously even less welcome as a critic - I mean, don’t you have enough to criticize in your own country?)
Expect everyone to nonetheless take your work and leads and run right on ahead without a blush of shame. They will, because they can. Those are the kind of people who are in charge. Shame isn’t in their vocabulary. They would have all resigned and taken up jobs in the post office if it was.
No matter what your credentials or your credibility, you will be ignored and tacitly coerced into shutting up and conforming.
If that also doesn’t work, expect other kinds of pressure…. to steer you in ways different from what you would want.
Next comes provocation. You’ll get blatantly racist or antisemitic emails that seem to contain news-worthy items. The idea is to bait you into replying so that it looks as if you’re in close contact with or pick up your ideas from unworthy material or sources.
Then come attacks. Emails calling you various nasty epithets from mild (moron) to severe (crack-pot bitch) will land up in your mailbox. Your mail will vanish or get deleted or moved around in your mailbox. Blog posts will show up on forums. Old articles go missing or get subtly vandalized.
(Correction: I’m now told that wordpress blogs aren’t easy to hack at all. So I might be okay there …)
You may get death threats - real or simply malicious foolery (last week’s episode).
I don’t expect any sympathy for this. Journalists have had their heads blown off for doing nothing much different. I only mention it to keep people’s eyes focused where they should be - on the government, not on all the divisions - class, race, color, religion - that the media keeps bringing up…
The Verdict Is In….
“In Lafayette Park, Washington D.C., of all places to protest, the plan was to dump one million tea bags in the park, but the brave dissidents never did it because they forgot to get the proper permits. Are you kidding me? What is civil disobedience without civil disobedience? They even went so far as to say that they were willing to put down plastic tarps and clean up after themselves.
That’s like saying we don’t agree with your oppressive, unconstitutional despotism of our nation and to show our ire in no uncertain terms we’re going to break public law and disrupt the peace so take that, nah- nah-ne-boo-boo. But don’t worry because we’ll put everything back when we’re done as if nothing happened cuz we don’t want any trouble!
Videos on the Internet of Lafayette Park show people standing around in their trendy turtlenecks and Tommy Hilfiger and North Face jackets, chatting, socializing, drinking coffee and talking on their cell phones. Some dressed in colonial garb (how cute) and waving flags. Others even break into a rendition of the Star Spangled Banner followed by a chant of “USA, USA, USA.” What a terrific show of meaningless symbolism….”
My Comment
My fear is that it’s not meaningless symbolism. It’s meaningful…but in the wrong way.
It’s meaningful because it focuses energy away from action that works to dressing up, going out, socializing, talking, waving flags etc. etc.
Which is why, with all due respect, I sat it out…..
Goldman Games: Massaging the Numbers
In the news:
“Goldman Sachs, the most profitable Wall Street firm before it converted to a bank last year and posted its first quarterly loss since going public in 1999, said yesterday it earned $3.39 a share, in the first quarter. A surge in trading revenue outweighed asset writedowns, and the result beat the $1.64 estimate of 16 analysts surveyed by Bloomberg.”
More here at Bloomberg.
My Comment
“Beating expectations” has turned into a short-sighted game of bluff. Companies deliberately underestimate earnings so they can beat analyst estimates. That gives them a temporary boost for the quarter that’s entirely misleading.
The point of all this tarting up on the part of the firm was to boost it enough to raise capital to repay some ($10 billion) of its TARP debt. Why? Because GS doesn’t want to abide by TARP limits on compensation.
But even so, debt with FDIC backing is more “attractive,” according to CFO David Viniar. You see, the FDIC backing won’t require caps on compensation.
In other words, TARP or no, as far as the public recouping anything for taking the risk, it’s heads we win, tails you lose.
Meanwhile the share price on the new capital fell by 12% on anxiety that the first quarter results weren’t sustainable.
What’s also interesting is that Goldman also changed its financial calendar to include December in the results of the previous quarter….
Hmm. Can YOU do that with the IRS?
March Madness in 2009….and in 1939
From a recent piece at Lew Rockwell, Nightmare on Wall Street
March Madness
Insurance giant AIG, already rescued by the public, comes back for more. The bill now totals almost $200 billion, nearly half of which goes to foreign banks, including the very banks that shaped government policy on the bank bail-out, a criminal conflict of interest.
- China and the US face off over US surveillance in Chinese waters, as well as over Chinese currency pegging
- The Bernie Madoff investigation reveals that family and friends of the ex-Nasdaq chief connived in his fraud, which prosecutors charge, has been going on since the 1980s. Money-laundering through an English bank is part of it.
- After three rescues, Citigroup ends up trading at around $1 and needing another round of government aid. That brings the government’s total commitment to Citi to over $300 billion.
- Net capital flows to the US turn negative, auto sales fall sharply, and pension-funding shortfalls are destroying company balance sheets.
- The Fed Reserve commits to buy $300 billion in Treasuries (creating $1 trillion in new money). The bond market reacts positively. But, in what seems like a warning from the other side of the Atlantic, when the Bank of England tries to auction British bonds, it fails to find enough buyers for the first time in seven years. The market is signaling its belief that the UK government is effectively bankrupt.
- Upward pressure on LIBOR, the London interbank offer rate, continues relentlessly. This is a measure of the willingness of banks to lend to each other and it’s showing severe credit market stress…..
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and,
“As reports about the AIG deal circulate and stir up public anger, the USNS Impeccable, a survey ship (read, spy-ship) faces off with Chinese ships in what the US claims are international waters off Hainan island. But the encounter is also within 200 miles of the Chinese coast, a zone China considers its exclusive economic zone. Hainan is also a key strategic base in the South China Sea and the location of China’s biggest submarine base. This comes just days after US military talks with China resume.
The US claims it’s a Chinese provocation, although it’s hard to believe that a Chinese spy ship snooping around Americans coasts would be greeted with brotherly love. It seems more likely to be a US provocation.
Notice that the incident reinforces Barack Obama’s provocative warnings to the Chinese about currency manipulation during the presidential campaign. Obama was apparently playing to the part of his base that is China-hawkish and protectionist. Notice that this is also a neo-conservative position, as human rights interventionists (let’s call them liberventionists) would like to see a tougher US posture in places like China and Darfur.
In short, the big government wing in both parties likes the “Chinese currency manipulation” motif……”
And in a recent piece at Lew Rockwell and Human Events, Pat Buchanan writes:
“Made a fool of by Hitler, baited by his backbenchers, goaded by Lord Halifax, facing a vote of no confidence, on March 31, 1939, Chamberlain made the greatest blunder in British diplomatic history. He handed an unsolicited war guarantee to the Polish colonels who had just bitten off a chunk of Czechoslovakia. Lunacy, raged Lloyd George, who was echoed by British leaders and almost every historian since.
With the British Empire behind it, Warsaw now refused even to discuss a return of Danzig, the Baltic town, 95 percent German, which even Chamberlain thought should be returned.
Hitler did not want a war with Poland. Had he wanted war, he would have demanded the return of the entire Polish Corridor taken from Germany in 1919. He wanted Danzig back and Poland as an ally in his anti-Comintern Pact. Nor did he want war with a Britain he admired and always saw as a natural ally.
Nor did he want war with France, or he would have demanded the return of Alsace.
But Hitler was out on a limb with Danzig and could not crawl back.
Repeatedly, Hitler tried to negotiate Danzig. Repeatedly, the Poles rebuffed him. Seeing the Allies courting Josef Stalin, Hitler decided to cut his own deal with the detested Bolsheviks and settle the Polish issue by force.
Though Britain had no plans to aid Poland, no intention of aiding Poland and would do nothing to aid Poland – Churchill would cede half that nation to Stalin and the other half to Stalin’s stooges – Britain declared war for Poland.
The most awful war in all of history followed, which would bankrupt Britain, bring down her empire and bring Stalin’s Red Army into Prague, Berlin and Vienna. But Hitler was dead and Germany in ashes….”
My Comment
In an earlier piece, Nationalization In a Time of Monopoly, I noted the ominous end game in which we’re finding ourselves:
“First, it [the state] creates debt everywhere until the capital base of the economy is destroyed and production is in tatters. Banks become bankrupt, except for those that have government connections and can consolidate. The monopolies have nothing to restrain their anti-market behavior and push their own agendas in concert with the state. With no limit to cheap credit, the money supply swells. Workers can no longer keep up with inflation. The lopsided development of the state sector crushes savings and production in the remainder of the economy. Jobs dwindle.
To supplement them, the corporate-state creates make-work programs on the domestic front. When bad times and discontent persist, it looks abroad.
Then comes war.
That is where nationalization in a time of monopoly will take us.” (Lew Rockwell, March, 2009)
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That warning cannot be emphasize enough. We meddle further at our own peril.
Beware any further ceding of power to the government.Before any more doing - undo, undo, undo.
Or , as Buchanan shows in his gripping time-line, when this end game rolls out, we will find that even countries that do not want war with us now, will be forced into it.
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