Crossing points into Gaza have been shut down for almost two weeks, forcing the only power plant there to stop functioning, due to the lack of fuel. Last week, the United Nations Relief and Works Agency ran out of food and stopped rations’ deliveries to 750,000 residents of Gaza.
Though the humanitarian crisis in Gaza is now immanent, Western media refrains from reporting about the emerging disaster. Apparently, there are far more interesting things to write about, much more interesting than millions of Palestinians who are being starved by the Jewish state.
However the press was kind enough to report that British foreign minister David Miliband spent some time in Israel this week. He had been very concerned with issues concerning the Avocado and other ethical grocery matters. He wanted to propose a clearer method of labeling food products that are sourced in the occupied west bank and sold to consumers in Britain. This could as well be an opportunity for Britain and the EU to restrain Israel’s lethal enthusiasm, but Miliband failed short, far too short. At the end of the day, Miliband is what you may call a grocery humanist. His ethical thinking is orientated around nutrition and ethical digestion. This is apparently the most deteriorated and probably the lowest form of left thinking. At least I really want to believe that left cannot go any lower than that.
Yet, Miliband is a dynamic person. Due to the escalation of violence in the region, he visited Sderot, accompanied by Israeli defense minister Barak. Bluntly he supported the Israeli criminal policies by saying “Israel should, above all, seek to protect its own citizens,” as if this is not enough, he continued, “I’m here today because Sderot has become the front line of Israel’s security. It’s very important that countries like mine and others show solidarity with the people of Sderot and that’s what I’m doing today.” Ostensibly, Miliband didn’t visit Gaza. He also didn’t mention that countries like his should show ‘solidarity’ with millions of dispossessed Palestinian refugees that are now shelled and starved to submission. Though Miliband sincerely cares about Avocados and ethical nutrition, millions of Palestinians who are left to eat sand do not seem to concern him at all.
However, Miliband couldn’t stay in the region for too long, as he has to rush back home. In London he is supposed to meet no less than the Israeli President Mr. Shimon Peres, the elder politician who was the pioneer of the Israeli Nuclear project. The man who introduced WMD to the middle east, the man who has more blood on his hands than any other living Israeli politician (except vegetable Sharon). Miliband should be in London in time so he can join President Peres and unveil a special plaque at the Foreign Office, honoring British diplomats who helped save Jews during the Holocaust.
I wonder how many British Diplomats will be honored for saving a single Palestinian kid within the current Israeli inflicted Holocaust? If there are any British politicians and diplomats, Clearly, Miliband would not be one of them. Reading what he had to say to the people of Sderot, he is no less than an enthusiastic supporter of the Israeli institutional crimes against humanity.
Meanwhile, President Peres is having a good time in London this week. In the framework of his visit, he will hold a round of meetings with the Queen, Crown Prince Charles, Prime Minister Gordon Brown, David Miliband; and the leader of the opposition, David Cameron.
He will be awarded a Knight Grand Cross, the sixth-most senior award in the British system, used to honor individuals who have rendered important services in relation to foreign nations. Seemingly, in Britain, killing innocent Lebanese civilians and starving millions in Gaza must be considered as an “important service”. In Belgium, on the other hand, a very similar activity is considered a crime against humanity.
President Peres will also receive an honorary degree from Kings College for his efforts “furthering peace in the Middle East”. I think that considering Peres’ usage of ballistic technology against innocent civilians, a PhD in physics may be more appropriate.
On the face of it, at the time the Jewish state is exercising the most devastating forms of crimes against humanity, the British Government, the British Parliament, the royal family and a major British academic institute are all caught together in bed with no less than a nuclear enthusiast butcher.
I am rather impressed. More than ever I am proud to be British. Such an embracing openness towards wickedness is probably the ultimate form of British kindness and forgiveness. This is something I have never seen in my homeland. Looking at Parliament, Miliband and the Royal family I must admit, I have much to learn about compassion before I become a genuine British subject.
Source: palestinethinktank.com
Wednesday, 19 November 2008
Sunday, 16 November 2008
Baron David de Rothschild sees a New World Order in global banking governance
Banks will deleverage and there will be a new form of global governance.Among the captains of industry, spin doctors and financial advisers accompanying British prime minister Gordon Brown on his fund-raising visit to the Gulf this week, one name was surprisingly absent. This may have had something to do with the fact that the tour kicked off in Saudi Arabia. But by the time the group reached Qatar, Baron David de Rothschild was there, too, and he was also in Dubai and Abu Dhabi.
Although his office denies that he was part of the official party, it is probably no coincidence that he happened to be in the same part of the world at the right time. That is how the Rothschilds have worked for centuries: quietly, without fuss, behind the scenes.
“We have had 250 years or so of family involvement in the finance business,” says Baron Rothschild. “We provide advice on both sides of the balance sheet, and we do it globally.”
The Rothschilds have been helping the British government – and many others – out of a financial hole ever since they financed Wellington’s army and thus victory against the French at Waterloo in 1815. According to a long-standing legend, the Rothschild family owed the first millions of their fortune to Nathan Rothschild’s successful speculation about the effect of the outcome of the battle on the price of British bonds. By the 19th century, they ran a financial institution with the power and influence of a combined Merrill Lynch, JP Morgan, Morgan Stanley and perhaps even Goldman Sachs and the Bank of China today.
In the 1820s, the Rothschilds supplied enough money to the Bank of England to avert a liquidity crisis. There is not one institution that can save the system in the same way today; not even the US Federal Reserve. However, even though the Rothschilds may have lost some of that power – just as other financial institutions on that list have been emasculated in the last few months – the Rothschild dynasty has lost none of its lustre or influence. So it was no surprise to meet Baron Rothschild at the Dubai International Financial Centre. Rothschild’s opened in Dubai in 2006 with ambitious plans to build an advisory business to complement its European operations. What took so long?
The answer, as many things connected with Rothschilds, has a lot to do with history. When Baron Rothschild began his career, he joined his father’s firm in Paris. In 1982 President Francois Mitterrand nationalised all the banks, leaving him without a bank. With just US$1 million (Dh3.67m) in capital, and five employees, he built up the business, before merging the French operations with the rest of the family’s business in the 1990s.
Gradually the firm has started expanding throughout the world, including the Gulf. “There is no debate that Rothschild is a Jewish family, but we are proud to be in this region. However, it takes time to develop a global footprint,” he says.
An urbane man in his mid-60s, he says there is no single reason why the Rothschilds have been able to keep their financial business together, but offers a couple of suggestions for their longevity. “For a family business to survive, every generation needs a leader,” he says. “Then somebody has to keep the peace. Building a global firm before globalisation meant a mindset of sharing risk and responsibility. If you look at the DNA of our family, that is perhaps an element that runs through our history. Finally, don’t be complacent about giving the family jobs.”
He stresses that the Rothschild ascent has not been linear – at times, as he did in Paris, they have had to rebuild. While he was restarting their business in France, his cousin Sir Evelyn was building a British franchise. When Sir Evelyn retired, the decision was taken to merge the businesses. They are now strong in Europe, Asia especially China, India, as well as Brazil. They also get involved in bankruptcy restructurings in the US, a franchise that will no doubt see a lot more activity in the months ahead.
Does he expect governments to play a larger role in financial markets in future? “There is a huge difference in the Soviet-style mentality that occurred in Paris in 1982, and the extraordinary achievements that politicians, led by Gordon Brown and Nicolas Sarkozy, have made to save the global banking system from systemic collapse,” he says. “They moved to protect the world from billions of unemployment. In five to 10 years those banking stakes will be sold – and sold at a profit.”
Baron Rothschild shares most people’s view that there is a new world order. In his opinion, banks will deleverage and there will be a new form of global governance. “But you have to be careful of caricatures: we don’t want to go from ultra liberalism to protectionism.”
So how did the Rothschilds manage to emerge relatively unscathed from the financial meltdown? “You could say that we may have more insights than others, or you may look at the structure of our business,” he says. “As a family business, we want to limit risk. There is a natural pride in being a trusted adviser.”
It is that role as trusted adviser to both governments and companies that Rothschilds is hoping to build on in the region. “In today’s world we have a strong offering of debt and equity,” he says. “They are two arms of the same body looking for money.”
The firm has entrusted the growth of its financing advisory business in the Middle East to Paul Reynolds, a veteran of many complex corporate finance deals. “Our principal business franchise is large and mid-size companies,” says Mr Reynolds. “I have already been working in this region for two years and we offer a pretty unique proposition.
“We work in a purely advisory capacity. We don’t lend or underwrite, because that creates conflicts. We are sensitive to banking relationships. But we look to ensure financial flexibility for our clients.”
He was unwilling to discuss specific deals or clients, but says that he offers them “trusted, impartial financing advice any time day or night”. Baron Rothschilds tends to do more deals than their competitors, mainly because they are prepared to take on smaller mandates. “It’s not transactions were are interested in, it’s relationships. We are looking for good businesses and good people,” says Mr Reynolds. “Our ambition is for every company here to have a debt adviser.”
Baron Rothschild is reluctant to comment on his nephew Nat Rothschild’s public outburst against George Osborne, the British shadow Chancellor of the Exchequer. Nat Rothschild castigated Mr Osborne for revealing certain confidences gleaned during a holiday in the summer in Corfu.
In what the British press are calling “Yachtgate”, the tale involved Russia’s richest man, Oleg Deripaska, Lord Mandelson, a controversial British politician who has just returned to government, Mr Osborne and a Rothschild. Classic tabloid fodder, but one senses that Baron Rothschild frowns on such publicity. “If you are an adviser, that imposes a certain style and culture,” he says. “You should never forget that clients want to hear more about themselves than their bankers. It demands an element of being sober.”
Even when not at work, Baron Rothschild’s tastes are sober. He lives between Paris and London, is a keen family man – he has one son who is joining the business next September and three daughters – an enthusiastic golfer, and enjoys the “odd concert”. He is also involved in various charity activities, including funding research into brain disease and bone marrow disorders.
It is part of Rothschild lore that its founder sent his sons throughout Europe to set up their own interlinked offices. So where would Baron Rothschild send his children today?
“I would send one to Asia, one to Europe and one to the United States,” he said. “And if I had more children, I would send one to the UAE.”
Source: aftermathnews.wordpress.com
Although his office denies that he was part of the official party, it is probably no coincidence that he happened to be in the same part of the world at the right time. That is how the Rothschilds have worked for centuries: quietly, without fuss, behind the scenes.
“We have had 250 years or so of family involvement in the finance business,” says Baron Rothschild. “We provide advice on both sides of the balance sheet, and we do it globally.”
The Rothschilds have been helping the British government – and many others – out of a financial hole ever since they financed Wellington’s army and thus victory against the French at Waterloo in 1815. According to a long-standing legend, the Rothschild family owed the first millions of their fortune to Nathan Rothschild’s successful speculation about the effect of the outcome of the battle on the price of British bonds. By the 19th century, they ran a financial institution with the power and influence of a combined Merrill Lynch, JP Morgan, Morgan Stanley and perhaps even Goldman Sachs and the Bank of China today.
In the 1820s, the Rothschilds supplied enough money to the Bank of England to avert a liquidity crisis. There is not one institution that can save the system in the same way today; not even the US Federal Reserve. However, even though the Rothschilds may have lost some of that power – just as other financial institutions on that list have been emasculated in the last few months – the Rothschild dynasty has lost none of its lustre or influence. So it was no surprise to meet Baron Rothschild at the Dubai International Financial Centre. Rothschild’s opened in Dubai in 2006 with ambitious plans to build an advisory business to complement its European operations. What took so long?
The answer, as many things connected with Rothschilds, has a lot to do with history. When Baron Rothschild began his career, he joined his father’s firm in Paris. In 1982 President Francois Mitterrand nationalised all the banks, leaving him without a bank. With just US$1 million (Dh3.67m) in capital, and five employees, he built up the business, before merging the French operations with the rest of the family’s business in the 1990s.
Gradually the firm has started expanding throughout the world, including the Gulf. “There is no debate that Rothschild is a Jewish family, but we are proud to be in this region. However, it takes time to develop a global footprint,” he says.
An urbane man in his mid-60s, he says there is no single reason why the Rothschilds have been able to keep their financial business together, but offers a couple of suggestions for their longevity. “For a family business to survive, every generation needs a leader,” he says. “Then somebody has to keep the peace. Building a global firm before globalisation meant a mindset of sharing risk and responsibility. If you look at the DNA of our family, that is perhaps an element that runs through our history. Finally, don’t be complacent about giving the family jobs.”
He stresses that the Rothschild ascent has not been linear – at times, as he did in Paris, they have had to rebuild. While he was restarting their business in France, his cousin Sir Evelyn was building a British franchise. When Sir Evelyn retired, the decision was taken to merge the businesses. They are now strong in Europe, Asia especially China, India, as well as Brazil. They also get involved in bankruptcy restructurings in the US, a franchise that will no doubt see a lot more activity in the months ahead.
Does he expect governments to play a larger role in financial markets in future? “There is a huge difference in the Soviet-style mentality that occurred in Paris in 1982, and the extraordinary achievements that politicians, led by Gordon Brown and Nicolas Sarkozy, have made to save the global banking system from systemic collapse,” he says. “They moved to protect the world from billions of unemployment. In five to 10 years those banking stakes will be sold – and sold at a profit.”
Baron Rothschild shares most people’s view that there is a new world order. In his opinion, banks will deleverage and there will be a new form of global governance. “But you have to be careful of caricatures: we don’t want to go from ultra liberalism to protectionism.”
So how did the Rothschilds manage to emerge relatively unscathed from the financial meltdown? “You could say that we may have more insights than others, or you may look at the structure of our business,” he says. “As a family business, we want to limit risk. There is a natural pride in being a trusted adviser.”
It is that role as trusted adviser to both governments and companies that Rothschilds is hoping to build on in the region. “In today’s world we have a strong offering of debt and equity,” he says. “They are two arms of the same body looking for money.”
The firm has entrusted the growth of its financing advisory business in the Middle East to Paul Reynolds, a veteran of many complex corporate finance deals. “Our principal business franchise is large and mid-size companies,” says Mr Reynolds. “I have already been working in this region for two years and we offer a pretty unique proposition.
“We work in a purely advisory capacity. We don’t lend or underwrite, because that creates conflicts. We are sensitive to banking relationships. But we look to ensure financial flexibility for our clients.”
He was unwilling to discuss specific deals or clients, but says that he offers them “trusted, impartial financing advice any time day or night”. Baron Rothschilds tends to do more deals than their competitors, mainly because they are prepared to take on smaller mandates. “It’s not transactions were are interested in, it’s relationships. We are looking for good businesses and good people,” says Mr Reynolds. “Our ambition is for every company here to have a debt adviser.”
Baron Rothschild is reluctant to comment on his nephew Nat Rothschild’s public outburst against George Osborne, the British shadow Chancellor of the Exchequer. Nat Rothschild castigated Mr Osborne for revealing certain confidences gleaned during a holiday in the summer in Corfu.
In what the British press are calling “Yachtgate”, the tale involved Russia’s richest man, Oleg Deripaska, Lord Mandelson, a controversial British politician who has just returned to government, Mr Osborne and a Rothschild. Classic tabloid fodder, but one senses that Baron Rothschild frowns on such publicity. “If you are an adviser, that imposes a certain style and culture,” he says. “You should never forget that clients want to hear more about themselves than their bankers. It demands an element of being sober.”
Even when not at work, Baron Rothschild’s tastes are sober. He lives between Paris and London, is a keen family man – he has one son who is joining the business next September and three daughters – an enthusiastic golfer, and enjoys the “odd concert”. He is also involved in various charity activities, including funding research into brain disease and bone marrow disorders.
It is part of Rothschild lore that its founder sent his sons throughout Europe to set up their own interlinked offices. So where would Baron Rothschild send his children today?
“I would send one to Asia, one to Europe and one to the United States,” he said. “And if I had more children, I would send one to the UAE.”
Source: aftermathnews.wordpress.com
Thursday, 13 November 2008
Celente Predicts Revolution, Food Riots, Tax Rebellions By 2012
Trend forecaster, renowned for being accurate in the past, says that America will cease to be a developed nation within 4 years, crisis will be "worse than the great depression"The man who predicted the 1987 stock market crash and the fall of the Soviet Union is now forecasting revolution in America, food riots and tax rebellions - all within four years, while cautioning that putting food on the table will be a more pressing concern than buying Christmas gifts by 2012.
Gerald Celente, the CEO of Trends Research Institute, is renowned for his accuracy in predicting future world and economic events, which will send a chill down your spine considering what he told Fox News this week.
Celente says that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.
"We're going to see the end of the retail Christmas....we're going to see a fundamental shift take place....putting food on the table is going to be more important that putting gifts under the Christmas tree," said Celente, adding that the situation would be "worse than the great depression".
"America's going to go through a transition the likes of which no one is prepared for," said Celente, noting that people's refusal to acknowledge that America was even in a recession highlights how big a problem denial is in being ready for the true scale of the crisis.
Celente, who successfully predicted the 1997 Asian Currency Crisis, the subprime mortgage collapse and the massive devaluation of the U.S. dollar, told UPI in November last year that the following year would be known as "The Panic of 2008," adding that "giants (would) tumble to their deaths," which is exactly what we have witnessed with the collapse of Lehman Brothers, Bear Stearns and others. He also said that the dollar would eventually be devalued by as much as 90 per cent.
The consequence of what we have seen unfold this year would lead to a lowering in living standards, Celente predicted a year ago, which is also being borne out by plummeting retail sales figures.
The prospect of revolution was a concept echoed by a British Ministry of Defence report last year, which predicted that within 30 years, the growing gap between the super rich and the middle class, along with an urban underclass threatening social order would mean, "The world's middle classes might unite, using access to knowledge, resources and skills to shape transnational processes in their own class interest," and that, "The middle classes could become a revolutionary class."
In a separate recent interview, Celente went further on the subject of revolution in America.
"There will be a revolution in this country," he said. "It’s not going to come yet, but it’s going to come down the line and we’re going to see a third party and this was the catalyst for it: the takeover of Washington, D. C., in broad daylight by Wall Street in this bloodless coup. And it will happen as conditions continue to worsen."
"The first thing to do is organize with tax revolts. That’s going to be the big one because people can’t afford to pay more school tax, property tax, any kind of tax. You’re going to start seeing those kinds of protests start to develop."
"It’s going to be very bleak. Very sad. And there is going to be a lot of homeless, the likes of which we have never seen before. Tent cities are already sprouting up around the country and we’re going to see many more."
"We’re going to start seeing huge areas of vacant real estate and squatters living in them as well. It’s going to be a picture the likes of which Americans are not going to be used to. It’s going to come as a shock and with it, there’s going to be a lot of crime. And the crime is going to be a lot worse than it was before because in the last 1929 Depression, people’s minds weren’t wrecked on all these modern drugs – over-the-counter drugs, or crystal meth or whatever it might be. So, you have a huge underclass of very desperate people with their minds chemically blown beyond anybody’s comprehension."
The George Washington blog has compiled a list of quotes attesting to Celente's accuracy as a trend forecaster.
Source: propagandamatrix.com
Video: youtube.com
Wednesday, 12 November 2008
Fed Defies Transparency Aim in Refusal to Disclose
The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.
"The collateral is not being adequately disclosed, and that's a big problem,'' said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he co-manages $17 billion in bonds. "In a liquid market, this wouldn't matter, but we're not. The market is very nervous and very thin.''
Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.
The Fed made the loans under terms of 11 programs, eight of them created in the past 15 months, in the midst of the biggest financial crisis since the Great Depression.
"It's your money; it's not the Fed's money,'' said billionaire Ted Forstmann, senior partner of Forstmann Little & Co. in New York. "Of course there should be transparency.''
Treasury, Fed, Obama
Federal Reserve spokeswoman Michelle Smith declined to comment on the loans or the Bloomberg lawsuit. Treasury spokeswoman Michele Davis didn't respond to a phone call and an e-mail seeking comment.
President-elect Barack Obama's economic adviser, Jason Furman, also didn't respond to an e-mail and a phone call seeking comment from Obama. In a Sept. 22 campaign speech, Obama promised to "make our government open and transparent so that anyone can ensure that our business is the people's business.''
The Fed's lending is significant because the central bank has stepped into a rescue role that was also the purpose of the $700 billion Troubled Asset Relief Program, or TARP, bailout plan - without safeguards put into the TARP legislation by Congress.
Total Fed lending topped $2 trillion for the first time last week and has risen by 140 percent, or $1.172 trillion, in the seven weeks since Fed governors relaxed the collateral standards on Sept. 14. The difference includes a $788 billion increase in loans to banks through the Fed and $474 billion in other lending, mostly through the central bank's purchase of Fannie Mae and Freddie Mac bonds.
Sept. 14 Decision
Before Sept. 14, the Fed accepted mostly top-rated government and asset-backed securities as collateral. After that date, the central bank widened standards to accept other kinds of securities, some with lower ratings. The Fed collects interest on all its loans.
The plan to purchase distressed securities through TARP called for buying at the "lowest price that the secretary (of the Treasury) determines to be consistent with the purposes of this Act,'' according to the Emergency Economic Stabilization Act of 2008, the law that covers TARP.
The legislation didn't require any specific method for the purchases beyond saying mechanisms such as auctions or reverse auctions should be used "when appropriate.'' In a reverse auction, bidders offer to sell securities at successively lower prices, helping to ensure that the Fed would pay less. The measure also included a five-member oversight board that includes Paulson and Bernanke.
At a Sept. 23 Senate Banking Committee hearing in Washington, Paulson called for transparency in the purchase of distressed assets under the TARP program.
`We Need Transparency'
"We need oversight,'' Paulson told lawmakers. "We need protection. We need transparency. I want it. We all want it.''
At a joint House-Senate hearing the next day, Bernanke also stressed the importance of openness in the program. "Transparency is a big issue,'' he said.
The Fed lent cash and government bonds to banks, which gave the Fed collateral in the form of equities and debt, including subprime and structured securities such as collateralized debt obligations, according to the Fed Web site. The borrowers have included the now-bankrupt Lehman Brothers Holdings Inc., Citigroup Inc. and JPMorgan Chase & Co.
Banks oppose any release of information because it might signal weakness and spur short-selling or a run by depositors, said Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, a Washington trade group.
Frank Backs Fed
"You have to balance the need for transparency with protecting the public interest,'' Talbott said. "Taxpayers have a right to know where their tax dollars are going, but one piece of information standing alone could undermine public confidence in the system.''
The nation's biggest banks, Citigroup, Bank of America Corp., JPMorgan Chase, Wells Fargo & Co., Goldman Sachs Group Inc. and Morgan Stanley, declined to comment on whether they have borrowed money from the Fed. They received $120 billion in capital from the TARP, which was signed into law Oct. 3.
In an interview Nov. 6, House Financial Services Committee Chairman Barney Frank said the Fed's disclosure is sufficient and that the risk the central bank is taking on is appropriate in the current economic climate. Frank said he has discussed the program with Timothy F. Geithner, president and chief executive officer of the Federal Reserve Bank of New York and a possible candidate to succeed Paulson as Treasury secretary.
"I talk to Geithner and he was pretty sure that they're OK,'' said Frank, a Massachusetts Democrat. "If the risk is that the Fed takes a little bit of a haircut, well that's regrettable.'' Such losses would be acceptable, he said, if the program helps revive the economy.
'Unclog the Market'
Frank said the Fed shouldn't reveal the assets it holds or how it values them because of "delicacy with respect to pricing.'' He said such disclosure would "give people clues to what your pricing is and what they might be able to sell us and what your estimates are.'' He wouldn't say why he thought that information would be problematic.
Revealing how the Fed values collateral could help thaw frozen credit markets, said Ron D'Vari, chief executive officer of NewOak Capital LLC in New York and the former head of structured finance at BlackRock Inc.
"I'd love to hear the methodology, how the Fed priced the assets,'' D'Vari said. "That would unclog the market very quickly.''
TARP's $700 billion so far is being used to buy preferred shares in banks to shore up their capital. The program was originally intended to hold banks' troubled assets while markets were frozen.
AIG Lending
The Bloomberg lawsuit argues that the collateral lists "are central to understanding and assessing the government's response to the most cataclysmic financial crisis in America since the Great Depression.''
The Fed has lent at least $81 billion to American International Group Inc., the world's largest insurer, so that it can pay obligations to banks. AIG today said it received an expanded government rescue package valued at more than $150 billion.
The central bank is also responsible for losses on a $26.8 billion portfolio guaranteed after Bear Stearns Cos. was bought by JPMorgan.
"As a taxpayer, it is absolutely important that we know how they're lending money and who they're lending it to,'' said Lucy Dalglish, executive director of the Arlington, Virginia- based Reporters Committee for Freedom of the Press.
Ratings Cuts
Ultimately, the Fed will have to remove some securities held as collateral from some programs because the central bank's rules call for instruments rated below investment grade to be taken back by the borrower and marked down in value. Losses on those assets could then be written off, partly through the capital recently injected into those banks by the Treasury.
Moody's Investors Service alone has cut its ratings on 926 mortgage-backed securities worth $42 billion to junk from investment grade since Sept. 14, making them ineligible for collateral on some Fed loans.
The Fed's collateral "absolutely should be made public,'' said Mark Cuban, an activist investor, the owner of the Dallas Mavericks professional basketball team and the creator of the Web site BailoutSleuth.com, which focuses on the secrecy shrouding the Fed's moves.
Source: bloomberg.com
commondreams.org
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.
"The collateral is not being adequately disclosed, and that's a big problem,'' said Dan Fuss, vice chairman of Boston- based Loomis Sayles & Co., where he co-manages $17 billion in bonds. "In a liquid market, this wouldn't matter, but we're not. The market is very nervous and very thin.''
Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.
The Fed made the loans under terms of 11 programs, eight of them created in the past 15 months, in the midst of the biggest financial crisis since the Great Depression.
"It's your money; it's not the Fed's money,'' said billionaire Ted Forstmann, senior partner of Forstmann Little & Co. in New York. "Of course there should be transparency.''
Treasury, Fed, Obama
Federal Reserve spokeswoman Michelle Smith declined to comment on the loans or the Bloomberg lawsuit. Treasury spokeswoman Michele Davis didn't respond to a phone call and an e-mail seeking comment.
President-elect Barack Obama's economic adviser, Jason Furman, also didn't respond to an e-mail and a phone call seeking comment from Obama. In a Sept. 22 campaign speech, Obama promised to "make our government open and transparent so that anyone can ensure that our business is the people's business.''
The Fed's lending is significant because the central bank has stepped into a rescue role that was also the purpose of the $700 billion Troubled Asset Relief Program, or TARP, bailout plan - without safeguards put into the TARP legislation by Congress.
Total Fed lending topped $2 trillion for the first time last week and has risen by 140 percent, or $1.172 trillion, in the seven weeks since Fed governors relaxed the collateral standards on Sept. 14. The difference includes a $788 billion increase in loans to banks through the Fed and $474 billion in other lending, mostly through the central bank's purchase of Fannie Mae and Freddie Mac bonds.
Sept. 14 Decision
Before Sept. 14, the Fed accepted mostly top-rated government and asset-backed securities as collateral. After that date, the central bank widened standards to accept other kinds of securities, some with lower ratings. The Fed collects interest on all its loans.
The plan to purchase distressed securities through TARP called for buying at the "lowest price that the secretary (of the Treasury) determines to be consistent with the purposes of this Act,'' according to the Emergency Economic Stabilization Act of 2008, the law that covers TARP.
The legislation didn't require any specific method for the purchases beyond saying mechanisms such as auctions or reverse auctions should be used "when appropriate.'' In a reverse auction, bidders offer to sell securities at successively lower prices, helping to ensure that the Fed would pay less. The measure also included a five-member oversight board that includes Paulson and Bernanke.
At a Sept. 23 Senate Banking Committee hearing in Washington, Paulson called for transparency in the purchase of distressed assets under the TARP program.
`We Need Transparency'
"We need oversight,'' Paulson told lawmakers. "We need protection. We need transparency. I want it. We all want it.''
At a joint House-Senate hearing the next day, Bernanke also stressed the importance of openness in the program. "Transparency is a big issue,'' he said.
The Fed lent cash and government bonds to banks, which gave the Fed collateral in the form of equities and debt, including subprime and structured securities such as collateralized debt obligations, according to the Fed Web site. The borrowers have included the now-bankrupt Lehman Brothers Holdings Inc., Citigroup Inc. and JPMorgan Chase & Co.
Banks oppose any release of information because it might signal weakness and spur short-selling or a run by depositors, said Scott Talbott, senior vice president of government affairs for the Financial Services Roundtable, a Washington trade group.
Frank Backs Fed
"You have to balance the need for transparency with protecting the public interest,'' Talbott said. "Taxpayers have a right to know where their tax dollars are going, but one piece of information standing alone could undermine public confidence in the system.''
The nation's biggest banks, Citigroup, Bank of America Corp., JPMorgan Chase, Wells Fargo & Co., Goldman Sachs Group Inc. and Morgan Stanley, declined to comment on whether they have borrowed money from the Fed. They received $120 billion in capital from the TARP, which was signed into law Oct. 3.
In an interview Nov. 6, House Financial Services Committee Chairman Barney Frank said the Fed's disclosure is sufficient and that the risk the central bank is taking on is appropriate in the current economic climate. Frank said he has discussed the program with Timothy F. Geithner, president and chief executive officer of the Federal Reserve Bank of New York and a possible candidate to succeed Paulson as Treasury secretary.
"I talk to Geithner and he was pretty sure that they're OK,'' said Frank, a Massachusetts Democrat. "If the risk is that the Fed takes a little bit of a haircut, well that's regrettable.'' Such losses would be acceptable, he said, if the program helps revive the economy.
'Unclog the Market'
Frank said the Fed shouldn't reveal the assets it holds or how it values them because of "delicacy with respect to pricing.'' He said such disclosure would "give people clues to what your pricing is and what they might be able to sell us and what your estimates are.'' He wouldn't say why he thought that information would be problematic.
Revealing how the Fed values collateral could help thaw frozen credit markets, said Ron D'Vari, chief executive officer of NewOak Capital LLC in New York and the former head of structured finance at BlackRock Inc.
"I'd love to hear the methodology, how the Fed priced the assets,'' D'Vari said. "That would unclog the market very quickly.''
TARP's $700 billion so far is being used to buy preferred shares in banks to shore up their capital. The program was originally intended to hold banks' troubled assets while markets were frozen.
AIG Lending
The Bloomberg lawsuit argues that the collateral lists "are central to understanding and assessing the government's response to the most cataclysmic financial crisis in America since the Great Depression.''
The Fed has lent at least $81 billion to American International Group Inc., the world's largest insurer, so that it can pay obligations to banks. AIG today said it received an expanded government rescue package valued at more than $150 billion.
The central bank is also responsible for losses on a $26.8 billion portfolio guaranteed after Bear Stearns Cos. was bought by JPMorgan.
"As a taxpayer, it is absolutely important that we know how they're lending money and who they're lending it to,'' said Lucy Dalglish, executive director of the Arlington, Virginia- based Reporters Committee for Freedom of the Press.
Ratings Cuts
Ultimately, the Fed will have to remove some securities held as collateral from some programs because the central bank's rules call for instruments rated below investment grade to be taken back by the borrower and marked down in value. Losses on those assets could then be written off, partly through the capital recently injected into those banks by the Treasury.
Moody's Investors Service alone has cut its ratings on 926 mortgage-backed securities worth $42 billion to junk from investment grade since Sept. 14, making them ineligible for collateral on some Fed loans.
The Fed's collateral "absolutely should be made public,'' said Mark Cuban, an activist investor, the owner of the Dallas Mavericks professional basketball team and the creator of the Web site BailoutSleuth.com, which focuses on the secrecy shrouding the Fed's moves.
Source: bloomberg.com
commondreams.org
Tuesday, 11 November 2008
The GM genocide
The children were inconsolable. Mute with shock and fighting back tears, they huddled beside their mother as friends and neighbours prepared their father's body for cremation on a blazing bonfire built on the cracked, barren fields near their home.As flames consumed the corpse, Ganjanan, 12, and Kalpana, 14, faced a grim future. While Shankara Mandaukar had hoped his son and daughter would have a better life under India's economic boom, they now face working as slave labour for a few pence a day. Landless and homeless, they will be the lowest of the low.
Shankara, respected farmer, loving husband and father, had taken his own life. Less than 24 hours earlier, facing the loss of his land due to debt, he drank a cupful of chemical insecticide.
Unable to pay back the equivalent of two years' earnings, he was in despair. He could see no way out.
There were still marks in the dust where he had writhed in agony. Other villagers looked on - they knew from experience that any intervention was pointless - as he lay doubled up on the ground, crying out in pain and vomiting.
Moaning, he crawled on to a bench outside his simple home 100 miles from Nagpur in central India. An hour later, he stopped making any noise. Then he stopped breathing. At 5pm on Sunday, the life of Shankara Mandaukar came to an end.
As neighbours gathered to pray outside the family home, Nirmala Mandaukar, 50, told how she rushed back from the fields to find her husband dead. 'He was a loving and caring man,' she said, weeping quietly.
'But he couldn't take any more. The mental anguish was too much. We have lost everything.'
Shankara's crop had failed - twice. Of course, famine and pestilence are part of India's ancient story.
But the death of this respected farmer has been blamed on something far more modern and sinister: genetically modified crops.
Shankara, like millions of other Indian farmers, had been promised previously unheard of harvests and income if he switched from farming with traditional seeds to planting GM seeds instead.
Beguiled by the promise of future riches, he borrowed money in order to buy the GM seeds. But when the harvests failed, he was left with spiralling debts - and no income.
So Shankara became one of an estimated 125,000 farmers to take their own life as a result of the ruthless drive to use India as a testing ground for genetically modified crops.
The crisis, branded the 'GM Genocide' by campaigners, was highlighted recently when Prince Charles claimed that the issue of GM had become a 'global moral question' - and the time had come to end its unstoppable march.
Speaking by video link to a conference in the Indian capital, Delhi, he infuriated bio-tech leaders and some politicians by condemning 'the truly appalling and tragic rate of small farmer suicides in India, stemming... from the failure of many GM crop varieties'.
Ranged against the Prince are powerful GM lobbyists and prominent politicians, who claim that genetically modified crops have transformed Indian agriculture, providing greater yields than ever before.
The rest of the world, they insist, should embrace 'the future' and follow suit.
So who is telling the truth? To find out, I travelled to the 'suicide belt' in Maharashtra state.
What I found was deeply disturbing - and has profound implications for countries, including Britain, debating whether to allow the planting of seeds manipulated by scientists to circumvent the laws of nature.
For official figures from the Indian Ministry of Agriculture do indeed confirm that in a huge humanitarian crisis, more than 1,000 farmers kill themselves here each month.
Simple, rural people, they are dying slow, agonising deaths. Most swallow insecticide - a pricey substance they were promised they would not need when they were coerced into growing expensive GM crops.
It seems that many are massively in debt to local money-lenders, having over-borrowed to purchase GM seed.
Pro-GM experts claim that it is rural poverty, alcoholism, drought and 'agrarian distress' that is the real reason for the horrific toll.
But, as I discovered during a four-day journey through the epicentre of the disaster, that is not the full story.
In one small village I visited, 18 farmers had committed suicide after being sucked into GM debts. In some cases, women have taken over farms from their dead husbands - only to kill themselves as well.
Latta Ramesh, 38, drank insecticide after her crops failed - two years after her husband disappeared when the GM debts became too much.
She left her ten-year-old son, Rashan, in the care of relatives. 'He cries when he thinks of his mother,' said the dead woman's aunt, sitting listlessly in shade near the fields.
Village after village, families told how they had fallen into debt after being persuaded to buy GM seeds instead of traditional cotton seeds.
The price difference is staggering: £10 for 100 grams of GM seed, compared with less than £10 for 1,000 times more traditional seeds.
But GM salesmen and government officials had promised farmers that these were 'magic seeds' - with better crops that would be free from parasites and insects.
Indeed, in a bid to promote the uptake of GM seeds, traditional varieties were banned from many government seed banks.
The authorities had a vested interest in promoting this new biotechnology. Desperate to escape the grinding poverty of the post-independence years, the Indian government had agreed to allow new bio-tech giants, such as the U.S. market-leader Monsanto, to sell their new seed creations.
In return for allowing western companies access to the second most populated country in the world, with more than one billion people, India was granted International Monetary Fund loans in the Eighties and Nineties, helping to launch an economic revolution.
But while cities such as Mumbai and Delhi have boomed, the farmers' lives have slid back into the dark ages.
Though areas of India planted with GM seeds have doubled in two years - up to 17 million acres - many famers have found there is a terrible price to be paid.
Far from being 'magic seeds', GM pest-proof 'breeds' of cotton have been devastated by bollworms, a voracious parasite.
Nor were the farmers told that these seeds require double the amount of water. This has proved a matter of life and death.
With rains failing for the past two years, many GM crops have simply withered and died, leaving the farmers with crippling debts and no means of paying them off.
Having taken loans from traditional money lenders at extortionate rates, hundreds of thousands of small farmers have faced losing their land as the expensive seeds fail, while those who could struggle on faced a fresh crisis.
When crops failed in the past, farmers could still save seeds and replant them the following year.
But with GM seeds they cannot do this. That's because GM seeds contain so- called 'terminator technology', meaning that they have been genetically modified so that the resulting crops do not produce viable seeds of their own.
As a result, farmers have to buy new seeds each year at the same punitive prices. For some, that means the difference between life and death.
Take the case of Suresh Bhalasa, another farmer who was cremated this week, leaving a wife and two children.
As night fell after the ceremony, and neighbours squatted outside while sacred cows were brought in from the fields, his family had no doubt that their troubles stemmed from the moment they were encouraged to buy BT Cotton, a geneticallymodified plant created by Monsanto.
'We are ruined now,' said the dead man's 38-year-old wife. 'We bought 100 grams of BT Cotton. Our crop failed twice. My husband had become depressed. He went out to his field, lay down in the cotton and swallowed insecticide.'
Villagers bundled him into a rickshaw and headed to hospital along rutted farm roads. 'He cried out that he had taken the insecticide and he was sorry,' she said, as her family and neighbours crowded into her home to pay their respects. 'He was dead by the time they got to hospital.'
Asked if the dead man was a 'drunkard' or suffered from other 'social problems', as alleged by pro-GM officials, the quiet, dignified gathering erupted in anger. 'No! No!' one of the dead man's brothers exclaimed. 'Suresh was a good man. He sent his children to school and paid his taxes.
'He was strangled by these magic seeds. They sell us the seeds, saying they will not need expensive pesticides but they do. We have to buy the same seeds from the same company every year. It is killing us. Please tell the world what is happening here.'
Monsanto has admitted that soaring debt was a 'factor in this tragedy'. But pointing out that cotton production had doubled in the past seven years, a spokesman added that there are other reasons for the recent crisis, such as 'untimely rain' or drought, and pointed out that suicides have always been part of rural Indian life.
Officials also point to surveys saying the majority of Indian farmers want GM seeds - no doubt encouraged to do so by aggressive marketing tactics.
During the course of my inquiries in Maharastra, I encountered three 'independent' surveyors scouring villages for information about suicides. They insisted that GM seeds were only 50 per cent more expensive - and then later admitted the difference was 1,000 per cent.
(A Monsanto spokesman later insisted their seed is 'only double' the price of 'official' non-GM seed - but admitted that the difference can be vast if cheaper traditional seeds are sold by 'unscrupulous' merchants, who often also sell 'fake' GM seeds which are prone to disease.)
With rumours of imminent government compensation to stem the wave of deaths, many farmers said they were desperate for any form of assistance. 'We just want to escape from our problems,' one said. 'We just want help to stop any more of us dying.'
Prince Charles is so distressed by the plight of the suicide farmers that he is setting up a charity, the Bhumi Vardaan Foundation, to help those affected and promote organic Indian crops instead of GM.
India's farmers are also starting to fight back. As well as taking GM seed distributors hostage and staging mass protests, one state government is taking legal action against Monsanto for the exorbitant costs of GM seeds.
This came too late for Shankara Mandauker, who was 80,000 rupees (about £1,000) in debt when he took his own life. 'I told him that we can survive,' his widow said, her children still by her side as darkness fell. 'I told him we could find a way out. He just said it was better to die.'
But the debt does not die with her husband: unless she can find a way of paying it off, she will not be able to afford the children's schooling. They will lose their land, joining the hordes seen begging in their thousands by the roadside throughout this vast, chaotic country.
Cruelly, it's the young who are suffering most from the 'GM Genocide' - the very generation supposed to be lifted out of a life of hardship and misery by these 'magic seeds'.
Here in the suicide belt of India, the cost of the genetically modified future is murderously high.
Source: thetruthseeker.co.uk
Friday, 7 November 2008
Unknown "Structures" Tugging at Universe
Something may be out there. Way out there.
On the outskirts of creation, unknown, unseen "structures" are tugging on our universe like cosmic magnets, a controversial new study says.
Everything in the known universe is said to be racing toward the massive clumps of matter at more than 2 million miles (3.2 million kilometers) an hour—a movement the researchers have dubbed dark flow.
The presence of the extra-universal matter suggests that our universe is part of something bigger—a multiverse—and that whatever is out there is very different from the universe we know, according to study leader Alexander Kashlinsky, an astrophysicist at NASA's Goddard Space Flight Center in Maryland.
The theory could rewrite the laws of physics. Current models say the known, or visible, universe—which extends as far as light could have traveled since the big bang—is essentially the same as the rest of space-time (the three dimensions of space plus time).
Picturing Dark Flow
Dark flow was named in a nod to dark energy and dark matter—two other unexplained astrophysical phenomena.
The newfound flow cannot be explained by, and is not directly related to, the expansion of the universe, though the researchers believe the two types of movement are happening at the same time.
In an attempt to simplify the mind-bending concept, Kashlinsky says to picture yourself floating in the middle of a vast ocean. As far as the eye can see, the ocean is smooth and the same in every direction, just as most astronomers believe the universe is. You would think that beyond the horizon, therefore, nothing is different.
"But then you discover a faint but coherent flow in your ocean," Kashlinsky said. "You would deduce that the entire cosmos is not exactly like what you can see within your own horizon."
There must be an out-of-sight mountain river or ravine pushing or pulling the water. Or in the cosmological case, Kashlinsky speculates that "this motion is caused by structures well beyond the current cosmological horizon, which is more than 14 billion light-years away."
Source: news.nationalgeographic.com
On the outskirts of creation, unknown, unseen "structures" are tugging on our universe like cosmic magnets, a controversial new study says.
Everything in the known universe is said to be racing toward the massive clumps of matter at more than 2 million miles (3.2 million kilometers) an hour—a movement the researchers have dubbed dark flow.The presence of the extra-universal matter suggests that our universe is part of something bigger—a multiverse—and that whatever is out there is very different from the universe we know, according to study leader Alexander Kashlinsky, an astrophysicist at NASA's Goddard Space Flight Center in Maryland.
The theory could rewrite the laws of physics. Current models say the known, or visible, universe—which extends as far as light could have traveled since the big bang—is essentially the same as the rest of space-time (the three dimensions of space plus time).
Picturing Dark Flow
Dark flow was named in a nod to dark energy and dark matter—two other unexplained astrophysical phenomena.
The newfound flow cannot be explained by, and is not directly related to, the expansion of the universe, though the researchers believe the two types of movement are happening at the same time.
In an attempt to simplify the mind-bending concept, Kashlinsky says to picture yourself floating in the middle of a vast ocean. As far as the eye can see, the ocean is smooth and the same in every direction, just as most astronomers believe the universe is. You would think that beyond the horizon, therefore, nothing is different.
"But then you discover a faint but coherent flow in your ocean," Kashlinsky said. "You would deduce that the entire cosmos is not exactly like what you can see within your own horizon."
There must be an out-of-sight mountain river or ravine pushing or pulling the water. Or in the cosmological case, Kashlinsky speculates that "this motion is caused by structures well beyond the current cosmological horizon, which is more than 14 billion light-years away."
Source: news.nationalgeographic.com
People 'can't wait for ID cards'
I think Jacqui Smith is slightly deluded if she thinks we cannot wait for ID cards. Everyone I speak to within the UK does NOT want them!Jacqui Smith says public demand means people will be able to pre-register for an ID card within the next few months.
The cards will be available for all from 2012 but she said: "I regularly have people coming up to me and saying they don't want to wait that long."
The home secretary made the claim as she unveiled revised ID scheme plans.
Opposition parties say they would scrap the ID card scheme. The Tories call it a "complete waste of money". The Lib Dems call it a "laminated poll tax".
They accused Ms Smith of backtracking on plans to issue ID cards in 2009 for all airside workers, by announcing they would pilot them at just two airports.
The first biometric cards are being issued, to students from outside the EU and marriage visa holders, this month and it had been planned to make them compulsory for all 200,000 airside workers from 2009.
The rest of this propaganda piece can be read here: news.bbc.co.uk
Thursday, 6 November 2008
Nasa joins UFO sighting craze
Nasa scientists have contributed to a spate of UFO sighting videos sweeping the internet.
The US space agency were filming from a shuttle outside the earth's orbit in April this year when the cameras picked up four objects that have never been identified.
The footage came after two similarly eerie sightings a few days apart on different sides of the world.
In January this year an amateur cameraman was one of a crowd who gathered to look at a mysterious light in the sky above Mexico.
He captured images of a trail dragging behind a very slow-moving object in the sky, before another light appeared on the horizon.
In the same week, a group of teenagers in India stopped by the side of the road and captured a group of glowing objects moving in patterns in the sky.
Source and video within the link: itn.co.uk
The US space agency were filming from a shuttle outside the earth's orbit in April this year when the cameras picked up four objects that have never been identified.
The footage came after two similarly eerie sightings a few days apart on different sides of the world.
In January this year an amateur cameraman was one of a crowd who gathered to look at a mysterious light in the sky above Mexico.
He captured images of a trail dragging behind a very slow-moving object in the sky, before another light appeared on the horizon.
In the same week, a group of teenagers in India stopped by the side of the road and captured a group of glowing objects moving in patterns in the sky.
Source and video within the link: itn.co.uk
Wednesday, 5 November 2008
Tuesday, 4 November 2008
US Elections LIVE
While the apparent face of power may change in the White House, the real powers will remain the same. With just hours to go before the poor American people elect another 'puppet' leader.
Here is a live feed of the results from one of the biggest propaganda networks:
news.bbc.co.uk
Here is a live feed of the results from one of the biggest propaganda networks:
news.bbc.co.uk
True democracy will come when the
rest of the world has a say in the
election of the ruling elite, not before.
rest of the world has a say in the
election of the ruling elite, not before.
Sunday, 2 November 2008
“Nuke strike would make 9/11 insignificant” and other weird warnings
Over the last 72 hours there has been a strange melange of cryptic messages leaked from world political leaders about what could be in store for America over the next few months.These predictions of impending doom come from England, France, Australia and the United States. In each case there has been a press releases or news expose’ predicting huge and building threats emerging from faceless enemies in shadowy places.
Crisis will lead to unpopular decisions by Barack Obama
Joe Biden set the stage at a Seattle fund raiser for VIP’s last Sunday when he told the audience about an “international crisis” that will test Barack Obama’s Presidency should he be elected.
Biden told the top Democratic donors that a “generated crisis” will develop within six months and Barak Obama will need the help of community leaders to control the population as unpopular decisions are made and Americans resist.
Biden speaking at the fundraiser, “I can give you at least four or five scenarios from where it might originate, And he’s gonna need help. And the kind of help he’s gonna need is, he’s gonna need you - not financially to help him - we’re gonna need you to use your influence, your influence within the community, to stand with him. Because it’s not gonna be apparent initially, it’s not gonna be apparent that we’re right.”
Colin Powell and Madeline Albright confirm Biden’s warnings
Biden’s ominous language at the Seattle Sheraton are followed with statements by long time establishment insiders Colin Powell and Madeline Albright both say there is a massive crisis on the horizon and Biden was simply making a “statement in fact.”
“The problems will always be there and there’s going to be a crisis which will come along on the 21st, 22nd of January that we don’t even know about right now.” Powell told Meet the Press.
Premonitions of dire consequences emerge from Europe
Meanwhile in England were they are trying desperately to pass a draconian measure allowing for the 42 day imprisonment of any citizen without charges or access to bail.
Lord West, adviser to Prime Minister Gordon Brown on national security says, “There is another great plot building up again and we are monitoring. It dipped slightly and is now rising again within the context of severe. The threat is huge. We have done all the things that we need to do, but the threat is building - the complex plots are building,”
Lord West like Biden, Albright and Powell does not elaborate on the precise details of the threat or the source of his intelligence information just that the situation is dire.
Across the channel from England you have the French Foreign Minister Bernard Kouchner warning the press that he believes Israel will strike Iran before they can develope nuclear weapons completley ignoring the fact that the chief of the International Atomic Energy Agency, Mohammed ElBradei, said that Iran lacks the key components to produce an atomic weapon.
Israel is believed to have 300 to 400 tactical nuclear weapons ready for deployment at a moments notice and is under no real threat from Iran who has never attacked another nation and has a defense budget equivalent to 1% of the United States.
It’s a miracle there hasn’t been a nuclear catastrophe
Only a few hours ago Agence France-Presse published a press release about the Sydney meeting of the international Commission on Nuclear Non-proliferation and Disarmament presided over by Australian Prime Minister Kevin Rudd who said that the world is facing a threat that will dwarf the September 11 attacks.
“The devastation that could be wreaked by one major nuclear weapons incident alone puts 9/11 and almost everything else [in] to the category of the insignificant,” Rudd said.
Members of the commission warned of reaching an avalanche of danger due to the high number and general lack of control over nuclear devices and components.
Former Australian PM Gareth Evans says it’s “really a bit of a miracle” referring to one the 13,000 to 16,000 nuclear weapons known to exist not being detonated, presumable by “terrorist” causing a catastrophe.
What are they preparing us for?
Why are there so many high level politicians around the world in a seemingly coordinated effort warning of huge threats and developing crisis’ that may include a nuclear device? Are they preparing the masses for an event or series of events that have been in the making for some time? Is the public being prepared for new and forming enemies with a potential to plunge the entire world into war?
Prior to 9/11 William Kristol’s Project for a New American Century called for a “catalyzing event - like a new Pearl Harbor” to bring about a “transformational” change in U.S. foreign policy and military spending.
Many believe a false flag strike on a major western city involving a nuclear device would be the Holy Grail to those who are working so hard to manifest “transformational” change on the world stage bringing with it the complete political, economic and military transformation toward fascist world government.
Source: dailynewscaster.com
Saturday, 1 November 2008
The “dirty little secret” of the US bank bailout
In an unusually frank article published in Saturday's New York Times, the newspaper's economic columnist, Joe Nocera, reveals what he calls "the dirty little secret of the banking industry"--namely, that "it has no intention of using the [government bailout] money to make new loans."
As Nocera explains, the plan announced October 13 by Treasury Secretary Henry Paulson to hand over $250 billion in taxpayer money to the biggest banks, in exchange for non-voting stock, was never really intended to get them to resume lending to businesses and consumers--the ostensible purpose of the bailout. Its essential aim was to engineer a rapid consolidation of the American banking system by subsidizing a wave of takeovers of smaller financial firms by the most powerful banks.
Nocera cites an employee-only conference call held October 17 by a top executive of JPMorgan Chase, the beneficiary of $25 billion in public funds. Nocera explains that he obtained the call-in number and was able to listen to a recording of the proceedings, unbeknownst to the executive, whom he declines to name.
Asked by one of the participants whether the $25 billion in federal funding will "change our strategic lending policy," the executive replies: "What we do think, it will help us to be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling."
Referring to JPMorgan's recent government-backed acquisition of two large competitors, the executive continues: "And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way, and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop."
As Nocera notes: "Read that answer as many times as you want--you are not going to find a single word in there about making loans to help the American economy."
Later in the conference call the same executive states, "We would think that loan volume will continue to go down as we continue to tighten credit to fully reflect the high cost of pricing on the loan side."
"It is starting to appear," the Times columnist writes, "as if one of the Treasury's key rationales for the recapitalization program--namely, that it will cause banks to start lending again--is a fig leaf.... In fact, Treasury wants banks to acquire each other and is using its power to inject capital to force a new and wrenching round of bank consolidation."
Early this month, he explains, "in a nearly unnoticed move," Paulson, the former CEO of Goldman Sachs, put in place a new tax break worth billions of dollars that is designed to encourage bank mergers. It allows the acquiring bank to immediately deduct any losses on the books of the acquired bank.
Paulson and other Treasury officials have made public statements calling on the banks that receive public funds to use them to increase their lending activities. That, however, is for public consumption. The bailout program imposes no lending requirements on the banks in return for government cash.
Already, the credit crisis has been used to engineer the takeover of Bear Stearns and Washington Mutual by JPMorgan, Merrill Lynch by Bank of America, Wachovia by Wells Fargo and, last Friday, National City by PNC.
What the Wall Street Journal on Saturday called the "strong-arm sale" of National City provides a taste of what is to come. The Treasury Department sealed the fate of the Cleveland-based bank by deciding not to include it among the regional banks that will receive government handouts. It then gave Pittsburgh-based PNC $7.7 billion from the bailout fund to help defray the costs of a takeover of National City. PNC will also benefit greatly from the tax write-off on mergers enacted by Treasury.
All of the claims that were made to justify the bank bailout have been exposed as lies. President Bush, Federal Reserve Chairman Ben Bernanke and Paulson were joined by the Democratic congressional leadership and Barack Obama in warning that the bailout had to be passed, and passed immediately, despite massive popular opposition. Those who opposed the plan were denounced for jeopardizing the well being of the American people.
In a nationally televised speech delivered September 24, in advance of the congressional vote on the bailout plan, Bush said it would "help American consumers and businessmen get credit to meet their daily needs and create jobs." If the bailout was not passed, he warned, "More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account.... More businesses would close their doors, and millions of Americans could lose their jobs ... ultimately, our country could experience a long and painful recession."
One month later, the bailout has been enacted, and all of the dire developments--banks and businesses disappearing, the stock market plunging, unemployment skyrocketing--which the American people were told it would prevent are unfolding with accelerating speed.
While Obama talks about the need for all Americans to "come together" in a spirit of "shared sacrifice"--meaning drastic cuts in Medicare, Medicaid, Social Security and other social programs--and the cost of the bailout is cited to justify fiscal austerity, the bankers proceed to ruthlessly prosecute their class interests.
As the World Socialist Web Site warned when it was first proposed in mid-September, the "economic rescue" plan has been revealed to be a scheme to plunder society for the benefit of the financial aristocracy. The American ruling elite, utilizing its domination of the state and the two-party political system, is exploiting a crisis of its own making to carry through an economic agenda, long in preparation, that could not be imposed under normal conditions.
The result will be greater economic hardship for ordinary Americans. The big banks will have even greater market power to set interest rates and control access to credit for workers, students and small businesses.
While no serious measures are being proposed, either by the Bush administration, the Republican presidential candidate or his Democratic opponent, to prevent a social catastrophe from overtaking working people, the government is organizing a restructuring of the financial system that will enable a handful of mega-banks to increase their power over society.
Source: wsws.org
As Nocera explains, the plan announced October 13 by Treasury Secretary Henry Paulson to hand over $250 billion in taxpayer money to the biggest banks, in exchange for non-voting stock, was never really intended to get them to resume lending to businesses and consumers--the ostensible purpose of the bailout. Its essential aim was to engineer a rapid consolidation of the American banking system by subsidizing a wave of takeovers of smaller financial firms by the most powerful banks.
Nocera cites an employee-only conference call held October 17 by a top executive of JPMorgan Chase, the beneficiary of $25 billion in public funds. Nocera explains that he obtained the call-in number and was able to listen to a recording of the proceedings, unbeknownst to the executive, whom he declines to name.
Asked by one of the participants whether the $25 billion in federal funding will "change our strategic lending policy," the executive replies: "What we do think, it will help us to be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling."
Referring to JPMorgan's recent government-backed acquisition of two large competitors, the executive continues: "And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way, and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop."
As Nocera notes: "Read that answer as many times as you want--you are not going to find a single word in there about making loans to help the American economy."
Later in the conference call the same executive states, "We would think that loan volume will continue to go down as we continue to tighten credit to fully reflect the high cost of pricing on the loan side."
"It is starting to appear," the Times columnist writes, "as if one of the Treasury's key rationales for the recapitalization program--namely, that it will cause banks to start lending again--is a fig leaf.... In fact, Treasury wants banks to acquire each other and is using its power to inject capital to force a new and wrenching round of bank consolidation."
Early this month, he explains, "in a nearly unnoticed move," Paulson, the former CEO of Goldman Sachs, put in place a new tax break worth billions of dollars that is designed to encourage bank mergers. It allows the acquiring bank to immediately deduct any losses on the books of the acquired bank.
Paulson and other Treasury officials have made public statements calling on the banks that receive public funds to use them to increase their lending activities. That, however, is for public consumption. The bailout program imposes no lending requirements on the banks in return for government cash.
Already, the credit crisis has been used to engineer the takeover of Bear Stearns and Washington Mutual by JPMorgan, Merrill Lynch by Bank of America, Wachovia by Wells Fargo and, last Friday, National City by PNC.
What the Wall Street Journal on Saturday called the "strong-arm sale" of National City provides a taste of what is to come. The Treasury Department sealed the fate of the Cleveland-based bank by deciding not to include it among the regional banks that will receive government handouts. It then gave Pittsburgh-based PNC $7.7 billion from the bailout fund to help defray the costs of a takeover of National City. PNC will also benefit greatly from the tax write-off on mergers enacted by Treasury.
All of the claims that were made to justify the bank bailout have been exposed as lies. President Bush, Federal Reserve Chairman Ben Bernanke and Paulson were joined by the Democratic congressional leadership and Barack Obama in warning that the bailout had to be passed, and passed immediately, despite massive popular opposition. Those who opposed the plan were denounced for jeopardizing the well being of the American people.
In a nationally televised speech delivered September 24, in advance of the congressional vote on the bailout plan, Bush said it would "help American consumers and businessmen get credit to meet their daily needs and create jobs." If the bailout was not passed, he warned, "More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account.... More businesses would close their doors, and millions of Americans could lose their jobs ... ultimately, our country could experience a long and painful recession."
One month later, the bailout has been enacted, and all of the dire developments--banks and businesses disappearing, the stock market plunging, unemployment skyrocketing--which the American people were told it would prevent are unfolding with accelerating speed.
While Obama talks about the need for all Americans to "come together" in a spirit of "shared sacrifice"--meaning drastic cuts in Medicare, Medicaid, Social Security and other social programs--and the cost of the bailout is cited to justify fiscal austerity, the bankers proceed to ruthlessly prosecute their class interests.
As the World Socialist Web Site warned when it was first proposed in mid-September, the "economic rescue" plan has been revealed to be a scheme to plunder society for the benefit of the financial aristocracy. The American ruling elite, utilizing its domination of the state and the two-party political system, is exploiting a crisis of its own making to carry through an economic agenda, long in preparation, that could not be imposed under normal conditions.
The result will be greater economic hardship for ordinary Americans. The big banks will have even greater market power to set interest rates and control access to credit for workers, students and small businesses.
While no serious measures are being proposed, either by the Bush administration, the Republican presidential candidate or his Democratic opponent, to prevent a social catastrophe from overtaking working people, the government is organizing a restructuring of the financial system that will enable a handful of mega-banks to increase their power over society.
Source: wsws.org
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