Friday, February 29, 2008

Video: Ron Paul opening statement to Bernanke at FSC - 2-27-2008

Video: Ron Paul Schools Ben Bernanke Yet Again

The New World Order Always Knew We Would Resist

"The establishment of the world community will surely exact a price - and who can tell what that price may be? - in toil, suffering, and blood."

Daniel Taylor
Old Thinker News
http://www.oldthinkernews.com/Articles/oldthinker%20news/the_new_world_order_always_knew.htm
Thursday, February 28, 2008

Advancing globalization and trends to world governance have become regular headlines throughout the world. As these trends continue, resistance to losses of sovereignty and globalization are increasing. This is coming as little surprise to the planners who have foreseen the rise of world government, and actively participated in its formation.
Zbigniew Brzezinski admitted in his book, Between Two Ages: America's Role in the Technetronic Era, that the formation of the world system would require "sacrifices" on part of Americans that will harm America's favorable position in the world. Brzezinski states,
"The nation-state is gradually yielding its sovereignty... In the economic-technological field, some international cooperation has already been achieved, but further progress will require greater American sacrifices. More intensive efforts to shape a new world monetary structure will have to be undertaken, with some consequent risk to the present relatively favorable American position."
(Article continues below)

There is little doubt that Brzezinski knew exactly what kind of response this action would evoke from patriotic Americans. At the moment we are witnessing America's favorable economic position being drastically eroded as the dollar continues its freefall, with former Federal Reserve chairman Alan Greenspan's endorsement.
The great dream of world governance comes at a price. Ancient ideas of national sovereignty have no place in the modern era. Sacrifices must be made.
What reactions do the global planners expect?
James P. Muldoon, Jr., Senior Fellow of the Center for Global Change and Governance at Rutgers University, writes in The Architecture of Global Governance that the transition to the international system will emerge out of 'chaos',
"For some, the disarray of traditional relationships in international affairs indicates a dangerous deterioration of the international order and portends collapse of the system into chaos or anarchy. Others consider the turbulence of the 1990s as part of the process of evolution, an inevitable consequence of the transformation of the international system into a global system. In some respects, both are right. The international order has indeed deteriorated into 'disorder' in large measure, but there is growing evidence that a global system is emerging out of this 'chaos.'"
H.G. Wells, a strong proponent of a planned world state, wrote in The New World Order in 1940,
"Countless people, from maharajas to millionaires from pukka sahibs to petty ladies, will hate the new world order, be rendered unhappy by frustration of their passions and ambitions through its advent and will die protesting against it. When we attempt to estimate its promise we have to bear in mind the distress of a generation or so of malcontents, many of them quite gallant and graceful-looking people."
H.G. Wells again writes in The Open Conspiracy, an earlier book written in 1928,
"The establishment of the world community will surely exact a price - and who can tell what that price may be? - in toil, suffering, and blood."
While speaking at a conference hosted by AKbank in Istanbul Turkey on May 31, 2007, just prior to the scheduled Bilderberg meeting, Henry Kissinger gave a speech in which he stated,
"What we in America call terrorists are really groups of people that reject the international system..."
Government trends analysts have taken into consideration the expanding world system and have based predictions on its impact on social, political, and economic conditions. A December 2000 CIA report titled "Global Trends 2015" outlines possible outcomes of globalization and worldwide integration. The report states,
"Scenario Two: Pernicious Globalization Global elites thrive, but the majority of the world’s population fails to benefit from globalization... migration becomes a major source of interstate tension... Internal conflicts increase, fueled by frustrated expectations, inequities, and heightened communal tensions..."
A report released from the U.K. Ministry of Defense, "DCDC Global Strategic Trends Programme 2007-2036", states that globalization and the effective erasing of borders in an international system will cause upheaval.
"Economic globalization and indiscriminate migration may lead to levels of international integration that effectively bring interstate warfare to an end; however, it will also result in communities of interest at every level of society that transcend national boundaries and could resort to the use of violence."
It is not my position to advocate violent actions as a solution, as this would only worsen our situation. What can be seen from the above statements is that violence and turmoil is expected by globalist planners and analysts during the "transition" period that will carry us into the New World Order.

Wednesday, February 27, 2008

Interdependence is Totalitarian

Brent Jessop - Knowledge Driven Revolution.com
February 11, 2008
http://www.knowledgedrivenrevolution.com/Articles/200802/20080211_MTP_1_Organic.htm

"The World Has Cancer And The Cancer Is Man" - A. Gregg as quoted in Mankind at the Turning Point (1974)


In 1974 the book Mankind at the Turning Point: The Second Report to The Club of Rome [1] was published. This report states the need to create an "organic" or a truly interdependent society as the only way to save the world from the almost overwhelming world problematique.

According to The Club of Rome, the world problematique is the set of interlocking world problems, such as, over population, food shortages, non-renewable resource depletion, environmental degradation, etc. With the use of absurd, exponentially based computer models, the complete unravelling of society and perhaps the biosphere was predicted. Not surprisingly the only solution capable of adverting global catastrophe is the development of an organic society. As I will show, a global organic society is only a euphemism for totalitarian world government.

The Club of Rome is a premiere think tank composed of approximately 100 members including leading scientists, philosophers, political advisors and many other characters who lurk in the shadows of power.

Organic Growth

From Mankind at the Turning Point:
"In Nature organic growth proceeds according to a "master plan," a "blueprint." According to this master plan diversification among cells is determined by the requirements of the various organs; the size and shape of the organs and, therefore, their growth processes are determined by their function, which in turn depends on the needs of the whole organism.

Such a "master plan" is missing from the process of growth and development of the world system." - 7

"The concept of the "organic growth" of mankind, as we have proposed in this report, is intended as a contribution toward achieving that end. Were mankind to embark on a path of organic growth, the world would emerge as a system of interdependent and harmonious parts, each making its own unique contributions, be it in economics, resources, or culture.

...Such an approach must start from and preserve the world's regional diversity. Paths of development, region-specific rather than based on narrow national interests, must be designed to lead to a sustainable balance between the interdependent world-regions and to global harmony - that is, to mankind's growth as an "organic entity" from its present barely embryonic state." [emphasis mine] - VIII

"Apparently, the emerging world system requires a "holistic" view to be taken of the future world development: everything seems to depend on everything else." - 21
Interdependence is the End of Independence

Though rarely stated and frequently denied, the concept of interdependent nations implies the end of national independence or sovereignty.
"And cooperation, finally, requires that the people of all nations face up to an admission that may not come easy. Cooperation by definition connotes interdependence. Increasing interdependence between nations and regions must then translate as a decrease in independence. Nations cannot be interdependent without each of them giving up some of, or at least acknowledging limits to, its own independence." - 111

"...the statement acknowledged, even if unintentionally, the dawn of an era of limits to independence - even for the strongest and biggest nations of the world." - 114
Interdependence is Totalitarian

Bertrand Russell, a strong proponent of world government and all around elitist, wrote in his 1952 book The Impact of Science on Society [2] that the inevitable result of a society based on an organic philosophy can only result in totalitarianism. For more on this book please read this.

From The Impact of Science on Society:
"The most obvious and inescapable effect of scientific technique is that it makes society more organic, in the sense of increasing the interdependence of its various parts..." - 42

"Totalitarianism has a theory as well as a practice. As a practice, it means that a certain group, having by one means or another seized the apparatus of power, especially armaments and police, proceed to exploit their advantageous position to the utmost, by regulating everything in the way that gives them the maximum of control over others. But as a theory it is something different: it is the doctrine that the State, or the nation, or the community is capable of a good different from that of individual and not consisting of anything that individuals think or feel. This doctrine was especially advocated by Hegal, who glorified the State, and thought that a community should be as organic as possible. In an organic community, he thought, excellence would reside in the whole. An individual is an organism, and we do not think that his separate parts have separate goods: if he has a pain in his great toe it is he that suffers, not specially the great toe. So, in an organic society, good and evil will belong to the whole rather than the parts. This is the theoretical form of totalitarianism.

...In concrete fact, when it is pretended that the State has a good different from that of the citizens, what is really meant is that the good of the government or of the ruling class is more important than that of other people. Such a view can have no basis except in arbitrary power.

More important than these metaphysical speculations is the question whether a scientific dictatorship, such as we have been considering, can be stable, or is more likely to be stable than a democracy...

... I do not believe that dictatorship Is a lasting form of scientific society - unless (but this proviso is important) it can become world-wide." [emphasis mine] - 64
A worldwide organic society is exactly what The Club of Rome is proposing.

Selling Totalitarianism

It is interesting to note the pleasant soothing words used to sell the concept of totalitarianism: "organic", "holistic", "differentiated", "harmonious", "interdependent", "balanced" and "sustainable". The very same "sustainable development" is all the rage these days. Sustainable development was codified into international law during the United Nations Conference on the Environment and Development (popularly known as the Rio Earth Summit) in 1992. The Secretary General and main organizer of the conference was Maurice Strong. According to his own book, Where on Earth Are We Going? [3] he is a "Member of the Executive Committee of the Club of Rome".

Creating A New Man and Total Material Interdependence

How do you make the transition to an organic society? Part 2 of this series will examine the desires of The Club of Rome to change the value system of modern man.
"An analysis of problems and crises as reported in subsequent chapters indicate that (1) a "horizontal" restructuring of the world system is needed, i.e., a change in relationships among nations and regions and (2) as far as the "vertical" structure of the world system is concerned, drastic changes in the norm stratum - that is, in the value system and the goals of man - are necessary in order to solve energy, food, and other crises, i.e., social changes and changes in individual attitudes are needed if the transition to organic growth is to take place." [emphasis mine] - 54
The final part of this series will discuss the need for total control of all resources by a world authority.
"Now is the time to draw up a master plan for organic sustainable growth and world development based on global allocation of all finite resources and a new global economic system. Ten or twenty years form today it will probably be too late..." [emphasis mine] - 69
[1] Quotes from Mihajlo Mesarovic and Eduard Pestel, Mankind at the Turning Point: The Second Report to The Club of Rome (1974). ISBN 0-525-03945-7

[2] Quotes from Bertrand Russell, The Impact of Science on Society (1952). ISBN 0-415-10906-X

[3] Quotes from Maurice Strong, Where on Earth Are We Going? (2000). ISBN 0-676-97364-7

Interdependence is Totalitarian

Brent Jessop - Knowledge Driven Revolution.com
February 11, 2008
http://www.knowledgedrivenrevolution.com/Articles/200802/20080211_MTP_1_Organic.htm

"The World Has Cancer And The Cancer Is Man" - A. Gregg as quoted in Mankind at the Turning Point (1974)


In 1974 the book Mankind at the Turning Point: The Second Report to The Club of Rome [1] was published. This report states the need to create an "organic" or a truly interdependent society as the only way to save the world from the almost overwhelming world problematique.

According to The Club of Rome, the world problematique is the set of interlocking world problems, such as, over population, food shortages, non-renewable resource depletion, environmental degradation, etc. With the use of absurd, exponentially based computer models, the complete unravelling of society and perhaps the biosphere was predicted. Not surprisingly the only solution capable of adverting global catastrophe is the development of an organic society. As I will show, a global organic society is only a euphemism for totalitarian world government.

The Club of Rome is a premiere think tank composed of approximately 100 members including leading scientists, philosophers, political advisors and many other characters who lurk in the shadows of power.

Organic Growth

From Mankind at the Turning Point:
"In Nature organic growth proceeds according to a "master plan," a "blueprint." According to this master plan diversification among cells is determined by the requirements of the various organs; the size and shape of the organs and, therefore, their growth processes are determined by their function, which in turn depends on the needs of the whole organism.

Such a "master plan" is missing from the process of growth and development of the world system." - 7

"The concept of the "organic growth" of mankind, as we have proposed in this report, is intended as a contribution toward achieving that end. Were mankind to embark on a path of organic growth, the world would emerge as a system of interdependent and harmonious parts, each making its own unique contributions, be it in economics, resources, or culture.

...Such an approach must start from and preserve the world's regional diversity. Paths of development, region-specific rather than based on narrow national interests, must be designed to lead to a sustainable balance between the interdependent world-regions and to global harmony - that is, to mankind's growth as an "organic entity" from its present barely embryonic state." [emphasis mine] - VIII

"Apparently, the emerging world system requires a "holistic" view to be taken of the future world development: everything seems to depend on everything else." - 21
Interdependence is the End of Independence

Though rarely stated and frequently denied, the concept of interdependent nations implies the end of national independence or sovereignty.
"And cooperation, finally, requires that the people of all nations face up to an admission that may not come easy. Cooperation by definition connotes interdependence. Increasing interdependence between nations and regions must then translate as a decrease in independence. Nations cannot be interdependent without each of them giving up some of, or at least acknowledging limits to, its own independence." - 111

"...the statement acknowledged, even if unintentionally, the dawn of an era of limits to independence - even for the strongest and biggest nations of the world." - 114
Interdependence is Totalitarian

Bertrand Russell, a strong proponent of world government and all around elitist, wrote in his 1952 book The Impact of Science on Society [2] that the inevitable result of a society based on an organic philosophy can only result in totalitarianism. For more on this book please read this.

From The Impact of Science on Society:
"The most obvious and inescapable effect of scientific technique is that it makes society more organic, in the sense of increasing the interdependence of its various parts..." - 42

"Totalitarianism has a theory as well as a practice. As a practice, it means that a certain group, having by one means or another seized the apparatus of power, especially armaments and police, proceed to exploit their advantageous position to the utmost, by regulating everything in the way that gives them the maximum of control over others. But as a theory it is something different: it is the doctrine that the State, or the nation, or the community is capable of a good different from that of individual and not consisting of anything that individuals think or feel. This doctrine was especially advocated by Hegal, who glorified the State, and thought that a community should be as organic as possible. In an organic community, he thought, excellence would reside in the whole. An individual is an organism, and we do not think that his separate parts have separate goods: if he has a pain in his great toe it is he that suffers, not specially the great toe. So, in an organic society, good and evil will belong to the whole rather than the parts. This is the theoretical form of totalitarianism.

...In concrete fact, when it is pretended that the State has a good different from that of the citizens, what is really meant is that the good of the government or of the ruling class is more important than that of other people. Such a view can have no basis except in arbitrary power.

More important than these metaphysical speculations is the question whether a scientific dictatorship, such as we have been considering, can be stable, or is more likely to be stable than a democracy...

... I do not believe that dictatorship Is a lasting form of scientific society - unless (but this proviso is important) it can become world-wide." [emphasis mine] - 64
A worldwide organic society is exactly what The Club of Rome is proposing.

Selling Totalitarianism

It is interesting to note the pleasant soothing words used to sell the concept of totalitarianism: "organic", "holistic", "differentiated", "harmonious", "interdependent", "balanced" and "sustainable". The very same "sustainable development" is all the rage these days. Sustainable development was codified into international law during the United Nations Conference on the Environment and Development (popularly known as the Rio Earth Summit) in 1992. The Secretary General and main organizer of the conference was Maurice Strong. According to his own book, Where on Earth Are We Going? [3] he is a "Member of the Executive Committee of the Club of Rome".

Creating A New Man and Total Material Interdependence

How do you make the transition to an organic society? Part 2 of this series will examine the desires of The Club of Rome to change the value system of modern man.
"An analysis of problems and crises as reported in subsequent chapters indicate that (1) a "horizontal" restructuring of the world system is needed, i.e., a change in relationships among nations and regions and (2) as far as the "vertical" structure of the world system is concerned, drastic changes in the norm stratum - that is, in the value system and the goals of man - are necessary in order to solve energy, food, and other crises, i.e., social changes and changes in individual attitudes are needed if the transition to organic growth is to take place." [emphasis mine] - 54
The final part of this series will discuss the need for total control of all resources by a world authority.
"Now is the time to draw up a master plan for organic sustainable growth and world development based on global allocation of all finite resources and a new global economic system. Ten or twenty years form today it will probably be too late..." [emphasis mine] - 69
[1] Quotes from Mihajlo Mesarovic and Eduard Pestel, Mankind at the Turning Point: The Second Report to The Club of Rome (1974). ISBN 0-525-03945-7

[2] Quotes from Bertrand Russell, The Impact of Science on Society (1952). ISBN 0-415-10906-X

[3] Quotes from Maurice Strong, Where on Earth Are We Going? (2000). ISBN 0-676-97364-7

Creating A One World Consciousness

Brent Jessop - Knowledge Driven Revolution.com
February 18, 2008
http://www.knowledgedrivenrevolution.com/Articles/200802/20080218_MTP_2_New_Man.htm

"The modern crises are, in fact, man-made, and differ from many of their predecessors in that they can be dealt with." [emphasis in original] - Mankind at the Turning Point, 1974 (p15)
Mankind at the Turning Point: The Second Report to the Club of Rome [1] (1974) states their desire to create a unified organic (or interdependent) world system. This system is by definition totalitarian, as was discussed in part one of this series. Now that we know were we are headed, the next question is what will the transition look like?

The Club of Rome is a premiere think tank composed of approximately 100 members including leading scientists, philosophers, political advisors and many other characters who lurk in the shadows of power.

Machines of Doom and the End of Humanity

The focus of Mankind at the Turning Point is a computer model that supposedly replicates the major features of the world problematique. According to The Club of Rome, the world problematique is the set of interlocking world problems, such as, over population, food shortages, non-renewable resource depletion, environmental degradation, etc. Not surprisingly, their self serving model, based on exponential inputs, predicts the complete unravelling of society and perhaps the biosphere. Naturally, failure to implement The Club of Rome's solution of a totalitarian world government will result in the potential end of humanity.

From Mankind at the Turning Point:
"Therefore we have concentrated out efforts in this report on a number of vital worldwide issues whose mastery we consider essential for man's survival and for an eventual transition into sustainable material and spiritual development of humanity." [emphasis mine] - XII

"Whether or not to embark on the path of organic growth is a question of mankind's very survival..." [emphasis mine] - 70
The Transition - Creating A New Mankind

The transition to this totalitarian world government will be made by changing the value systems of the entire planet, creating a one world consciousness.
"Today it seems that the basic values, which are ingrained in human societies of all ideologies and religious persuasions, are ultimately responsible for many of our troubles. But if future crises are to be avoided, how then should these values be readjusted?" [emphasis mine] - 11

"An analysis of problems and crises as reported in subsequent chapters indicate that (1) a "horizontal" restructuring of the world system is needed, i.e., a change in relationships among nations and regions and (2) as far as the "vertical" structure of the world system is concerned, drastic changes in the norm stratum - that is, in the value system and the goals of man - are necessary in order to solve energy, food, and other crises, i.e., social changes and changes in individual attitudes are needed if the transition to organic growth is to take place." [emphasis mine] - 54

"The changes in social and individual attitudes which we are recommending require a new kind of education..." - 148

"Development of a practical international framework in which the cooperation essential for the emergence of a new mankind on an organic growth path will become a matter of necessity rather than being left to good will and preference..." [emphasis mine] - 145

"The transition from the present undifferentiated and unbalanced world growth to organic growth will lead to the creation of a new mankind [emphasis mine]. Such a transition would represent a dawn, not a doom, a beginning not the end. Will mankind have the wisdom and will power to evolve a sound strategy to achieve that transition? In view of historical precedents, one might, legitimately, have serious doubts - unless the transition evolves out of necessity. And this is where the current and future crises - in energy, food, materials, and the rest - can become error-detectors, catalysts for change, and as such blessings in disguise. The solutions of these crises will determine on which of the two paths mankind has chosen to travel." [emphasis in original] - 9
The Transition - One World Consciousness
"Regarding individual values and attitudes the following lessons seem to be outstanding for the new global ethic implicit in the preceding requirements:

1) A world consciousness must be developed through which every individual realizes his role as a member of the world community... It must become part of the consciousness of every individual that "the basic unit of human cooperation and hence survival is moving from the national to the global level."

2) A new ethic in the use of material resources must be developed which will result in a style of life compatible with the oncoming age of scarcity... One should be proud of saving and conserving rather than of spending and discarding.

3) An attitude toward nature must be developed based on harmony rather than conquest. Only in this way can man apply in practice what is already accepted in theory - that is, that man is an integral part of nature.

4) If the human species is to survive, man must develop a sense of identification with future generations and be ready to trade benefits to the next generations for the benefits to himself. If each generation aims at maximum good for itself, Homo Sapiens is as good as doomed." [emphasis mine] - 147

"In order to achieve balance between regions in global development a more coherent regional outlook must be developed in various parts of the world so that the "preferable solutions" will be arrived at out of necessity rather than out of good will... we are talking about a regional sense of common destiny that will find its expression through appropriate societal, economic concepts and objectives... Such a regional outlook will create a "critical mass" necessary for the practical implementation of new and innovative ways of functioning in cultural, economic, and agricultural areas, especially on the rural level." [emphasis mine] - 154
The Transition - Global Warming and the New Mankind

This methodology of doom prediction based on complex, "expert" generated, unverifiable computer models was later taken in full stride by the global warming propagandists. Both had the exact same intent, scare people into believing that the world was on the verge of complete collapse and that the only solution is world government. In reality, the global warming myth is an extension of The Club of Rome's activities

From Mankind at the Turning Point:
"Governments and international organizations are currently too preoccupied with military alliances and bloc politics. But this problem is becoming of secondary importance... Therefore, barring suicide, mankind will face the most awesome test in its history: the necessity of a change in the man-nature relationship and the emergence of a new perception of mankind as a living global system." [emphasis mine] - 146

"Precisely because the symptoms of these global crises might become fully visible only toward the end of the century, the time to act is now; when the symptoms become clear the remedy will no longer be possible, as has been shown repeatedly in this report. Future history will not focus on personality and social classes, as has been characteristic of history in the past, but on the use of resources and survival of the human species. The time to affect that history is now." [emphasis mine] - 146
The quote above cannot be emphasized enough. The fear that has been used to unify our national societies is being moved from the Hitler/Saddam Hussein type personalities and the Communist/Capitalist class struggles to global unity based on resource depletion and the survival of the human species.

Furthermore, in 1991, in a book entitled The First Global Revolution: A Report by the Council of The Club of Rome [2] and coauthored by one of the founders of The Club of Rome, Alexander King, they admitted choosing global warming and other threats to unify humanity under a world government.
"In searching for a new enemy to unite us [all of humanity], we came up with the idea that pollution, the threat of global warming, water shortages, famine and the like would fit the bill. In their totality and in their interactions, these phenomena constitute a common threat which as the enemy, we fall into the trap about which we have already warned, namely mistaking symptoms for causes. All these dangers are caused by human intervention and it is only through changed attitudes and behaviour that they can be overcome. The real enemy then is humanity itself." [emphasis mine]
[1] Quotes from Mihajlo Mesarovic and Eduard Pestel, Mankind at the Turning Point: The Second Report to The Club of Rome (1974). ISBN 0-525-03945-7

[2] Quotes from Alexander King and Bertrand Schneider, The First Global Revolution: A Report by the Council of The Club of Rome (1991). ISBN 0-671-71107-5

A Planned World Economy: Mankind at the Turning Point Part 3

Brent Jessop
Knowledge Driven Revolution.com
http://www.knowledgedrivenrevolution.com/Articles/200802/20080225_MTP_3_Resource.htm
Tuesday, February 26, 2008

"The human race is getting to be too much for itself and too much for the world." - William Saroyan as quoted in Mankind at the Turning Point (1974)
The Club of Rome is a premiere think tank composed of approximately 100 members including leading scientists, philosophers, political advisors and many other characters who lurk in the shadows of power. This series of articles described the major conclusions of the 1974 book Mankind at the Turning Point: The Second Report to The Club of Rome [1]. Part 1 described their desire for the development of a totalitarian world system presented under the euphemism of an "organic society". Part 2 described the need to create a new value system to ensure the acceptance of the upcoming world government. This new value system will be based on a "world consciousness."

Mankind at the Turning Point used an absurd, exponentially based computer model of the world system in an attempt to hide their predetermined conclusions behind the vale of science. One of the main scenarios developed by the model was an analysis of the price of oil. This was an obvious choice due to the importance of oil to the world economy and the Middle East oil crisis which began the previous year (1973). The conclusion of this analysis was that an optimal price exists for oil. A price too high, would encourage development of alternatives and result in long-term losses to the exporting nations. A price too low, would encourage over use and resource depletion which would result in long-term losses of the importing nations who would not have sufficient time to develop alternatives. Therefore, there existed an "optimal" price for oil and that the only way to obtain this price was through cooperation. Naturally, an optimal price would exist for all commodities and the only way to obtain these prices was a planned world economy. After all, a planned economy was working so well in the Soviet Union, why not extend it to the rest of the world?

From Mankind at the Turning Point:
"The conclusion applies not just to oil, but to all of the finite resources - food, fertilizer, copper and so forth. The "most beneficial" price range and the proper rate of increase differ for each commodity, but the optimal level exists for all and should be determined and then on a global basis maintained by all participants in the world system - if recurrence of the world economic crises due to resource-constraints is to be prevented." [emphasis mine] - 100

"Indeed, nothing short of a complete integration of all strata, from individual values to ecology and mineral resources - and on a global scale - will suffice for the solution of the world food crises..." [emphasis mine] - 87
Redistribution of Industry

Not satisfied with the control of resource prices the report also stresses the need for a planned redistribution of industry throughout the world, especially to South Asia.
"Scenario five - the only way to avert unprecedented disaster in South Asia - requires the emergence of a new global economic order. Industrial diversification will have to be worldwide and carefully planned with special regard for regional specificity. The most effective use of labour and capital, and the availability of resources, will have to be assessed on a global, long-term basis. Such a system cannot be left to the mercy of narrow national interests, but must rely on long-range world economic arrangements... But the strain on the global food production capacity would be lessened if the eating habits in the affluent part of the world would change, becoming less wasteful." [emphasis mine] - 127
Global Resource Allocation System

A planned economy would entail a powerful central government with the authority to allocate resources to areas it decrees most deserving.
"Now is the time to draw up a master plan for organic sustainable growth and world development based on global allocation of all finite resources and a new global economic system. Ten or twenty years form today it will probably be too late..." [emphasis mine] - 69

"The solution of these crises can be developed only in a global context with full and explicit recognition of the emerging world system and on a long-term basis. This would necessitate, among other changes, a new world economic order and a global resources allocation system." [emphasis mine] - 143
The horrors of this proposed system should be obvious to anyone, but for those without any imagination I will provide a quote from The Impact of Science on Society [2] by Bertrand Russell who was also a proponent of world government. The quote below highlights one of the benefits - in Russell's view - of such a world allocation system.
"To deal with this problem [increasing population and decreasing food supplies] it will be necessary to find ways of preventing an increase in world population. If this is to be done otherwise than by wars, pestilence, and famines, it will demand a powerful international authority. This authority should deal out the world's food to the various nations in proportion to their population at the time of the establishment of the authority. If any nation subsequently increased its population it should not on that account receive any more food. The motive for not increasing population would therefore be very compelling. What method of preventing an increase might be preferred should be left to each state to decide." - 124
[1] Quotes from Mihajlo Mesarovic and Eduard Pestel, Mankind at the Turning Point: The Second Report to The Club of Rome (1974). ISBN 0-525-03945-7

[2] Quotes from Bertrand Russell, The Impact of Science on Society (1952). ISBN 0-415-10906-X

See no evil

David Cogswell
Online Journal
http://onlinejournal.com/artman/publish/article_3001.shtml
Wednesday, February 27, 2008

I recently had a conversation with a person I'll just call "a successful writer," and when I mentioned an idea that he classified as "conspiracy theory" he said this: "The trouble with conspiracy theories is that they really take a toll on readership. Many people write you off as a conspiracy nut and the result is that you don't get to have your voice in the mainstream dialogue."
Now that gave me pause. It was a slap in the face that forced me to confront the question: Why write? I had to consider the question of whether I want to participate in a dialogue in which one must wear blinders and observe strict boundaries to the free flow of logical discourse or thought. Must I stymie the flow of rational thought whenever I reach a point deemed unacceptable by the establishment? Let's be clear with our terms. The term "conspiracy theory" is not a literal description, it's a label for ideas that cross certain borders, in particular, ideas that suggest abuses of power and illegal activity by people in high places. Conspiracy theory is the label for forbidden thought. The problem with "going there" is not just that one can be proven wrong. It is that it is forbidden to even think about it or discuss it. If one disobeys, one is exiled from the community.
The fact that the term "conspiracy theory" has no literal meaning is one of the many things that was firmly established by the events of 9/11. The official explanation of events of that day is unequivocably a theory of conspiracy. It's the ultimate conspiracy theory for the world's most spectacular crime, but it's not called a conspiracy theory. That term is reserved for any ideas that contradict the official story. This is a very important point. Conspiracy theories are not about conspiracies, they are about forbidden thought. The label "conspiracy theory" is a stop sign on the avenues of rational thought and inquiry. It says, "Stop here. Entrance forbidden."

When one reaches the stop sign, one must turn around, one must find another way, must bend the very laws of physics if that is what it takes, or throw them out altogether in order to avoid following a certain train of thought to its logical conclusion. In 2008 the abuses and outrages of the American political system have ballooned to such monstrous proportions, that there is very little room to think at all if one wishes to remain respectable. That's why the noise from the official media propaganda system is so overwhelmingly loud. The box that we are forced to contain our thoughts within is getting so small there is barely enough room within it to scratch one's nose.
My conversation with the Successful Writer raises the question, "Why does one write?" If one chooses writing as the means by which one seeks financial security, and one wants to write about politics and "go where the money is," then it is necessary to observe the boundaries and play by the rules of the big media owners. If one seeks the wealth and glory of someone like, for example, Chris Matthews, then one must play the game by the rules and always stop at the stop signs. That's the price you pay for entrance into that club.
But there are other reasons to write besides wealth, fame or financial security. There is, of course, activism. Does one write to effect change? If so, then one may wish to challenge authority, but must also consider that one's audience will be larger if one's writing appears in the mainstream. And credibility gets a boost by acceptance within that sphere. But if the writing itself is artificially cut off wherever it may offend the mighty, then the writing itself may suffer, become stunted and its effect nullified. After a prolonged period of staying within a small fishbowl the writing may just atrophy.
Even within the activist community, there are rules to be followed. In politics, one must "choose one's battles." You can't fight every battle, so it is better to choose the most important ones and leave others alone, especially avoiding issues that are so controversial one may lose credibility by engaging in them and risking being branded a conspiracy theorist or a nut. So many progressive writers and activists strictly avoid anything deemed "conspiracy theory" in order that their writing on other issues will have more impact. These are choices one has to make in these areas. So Daily Kos, for example, an alternative Web-based news source that is aspiring for mainstream acceptance, refuses to entertain certain notions, such as the idea that the official 9/11 story is not entirely correct, or that voting machines may not be entirely reliable. "We are a reality-based community," Kos proclaims. However, in the shifting sands of that reality, we may see an idea that was once in the category of forbidden thought, like the unreliability of voting machines, suddenly shift into mainstream acceptance.
But there are still other reasons to write besides wealth, fame or political activism. Writing as a medium of exploration and inquiry has its own reason for existing, its own rewards. Surely a writer needs readers and cannot forever write in a vacuum only for himself. But the exercise of language as a medium of thinking and experience exists for its own sake and does not require rewards of a material nature. The pursuit of truth is its own reward as the practice of any art can be its own reward. Instead of accepting the limits of the fishbowl of the political elite, one can allow thought to take wing and follow it anywhere it may go. And though one's body may be imprisoned, one's spirit may soar.
So there is writing as a means of financial security and recognition, writing as a force for social change, and there is the pursuit of the exercise for the sake of the art, for the exploration of the human spirit. The latter does not mean writing only for oneself. The act of writing presumes a reader, though it may be far removed in time and place from the writer. But like a sculptor or a painter or an athlete, a writer can draw great pleasure from the exercise of the medium itself, from the practice of the art.
McLuhan called media the extensions of man, and they are the means of movement, by which we may progress. It is through the medium of language and ideas that we may take ourselves to a new stage of development, both individually and as a community or species. So even writing that does not obey the stop signs and does not bring material rewards or glory may still be an engine of progress. Language and ideas are the ultimate drivers of human growth, the progress of communities and the evolution of the species. So while disobeying the stop signs may not bring immediate material gratification, one may find down the road that the writing actually went somewhere and one has evolved as a human being.
Jean Paul Sartre shed some light on the evolving function of the writers in his historical analysis called “What is Literature?” in which he traces the rise of writing as we know it with the rise of a middle class and the transition from royalism to democracy. The act of writing requires a reader for its completion, Sartre said, and a writer cannot force a reader to read him, so writing is inherently an appeal to a reader, and, therefore, and act of generosity between two free people. The act of writing itself implies the freedom of the reader. “One does not write for slaves,” he said. “The art of prose is bound up with the only rĂ©gime in which prose has meaning, democracy. When one is threatened, the other is too."
Since the writer consumes but does not produce, Sartre said, “his works remain gratuitous; thus no market price can be set on their value . . . Actually the writer is not paid, he is fed, either well or badly depending on the period. The system cannot work any differently, for his activity is useless. It is not at all useful; it is sometimes harmful for society to become self-conscious . . . If society sees itself and, in particular, sees itself as seen, there is, by virtue of this very fact, a contesting of the established values of the regime. The writer presents it with its image; he calls upon it to assume it or to change itself. At any rate, it changes; it loses the equilibrium which its ignorance had given it; it wavers between shame and cynicism; it practices dishonesty; thus, the writer gives society a guilty conscience; he is thereby in a state of perpetual antagonism toward the conservative forces which are maintaining the balance he tends to upset."
In the 19th century, as the merchant class took over power from the noble class and became the reading public, the writer became employed as an expert. “If he started reflecting on the social order, he upset it,” says Sartre. “All they wanted was to be provided with infallible recipes for winning over and dominating. . . ." The writer’s works became “inventories of bourgeois appurtenances, psychological reports of an expert which invariably tended to ground the rights of the elite and to show the wisdom of institutions and handbooks of civility. The conclusions were decided in advance; the degree of depth permitted to the investigation was also established in advance; the psychological motives were selected; the very style was regulated. The public feared no surprise, it could buy with its eyes closed.”
Needless to say, the best writers refused, and, Sartre said, “It was taken for granted that it was better to be unknown than famous, that success -- if the writer ever got it in his lifetime -- was to be explained by a misunderstanding.”
Now we are in a new age, a new century. With the Worldwide Web we are really in a new world and no one knows exactly where it is going. We can’t call upon Sartre for insight into the condition to which we have evolved because he is gone and our world bears little resemblance to the one he knew. But he did utter a principle that might be used as guidance in assessing the place of writing in this brave new world.
“I say that the literature of a given age is alienated when it has not arrived at the explicit consciousness of its autonomy and when it submits to temporal powers or to an ideology, in short, when it considers itself as a means to an end and not as an unconditioned end."
I've already committed far too many sins to ever be allowed entry into the mainstream, so I'll just continue to give vent to whatever ideas produce themselves in my consciousness through the process of inquiry. I refuse to block my consciousness from pursuing a line of reasoning just because of an authority that says, “Don’t go there.” If common sense tells me that a bullet cannot go down, then up, then over and down again, or that a huge steel and concrete skyscraper can’t suddenly melt and dissolve into ashes for no reason, then so be it. I don’t care what the implications are. I do not wish to pretend the laws of physics can be suspended by the authorities in this society or any other society in history. I do not recognize an authority that tries to force me to relinquish my common sense.
If I have a cause, that is my cause. Render unto Caesar what is Caesar's. I do not expect the power structure to relinquish its iron grip, certainly not because of anything I do. I am not chasing windmills. Let them have their power. Let them wallow in it until it destroys them in a pisspool of their own greed. But I refuse to give up the integrity of my own mind.
Let whoever wants to read it read it.

Triumph of the Red-State Fascists

Llewellyn H. Rockwell, Jr.
http://www.lewrockwell.com/rockwell/red-state-triumph.html
Tuesday, February 26, 2008

Every Republican I've spoken to is mystified that John McCain has sewn up the Republican nomination. For his entire career, he has been more statist on both domestic and foreign policy than even the typical Republican. He has been considered a "liberal," and not in a good sense. He doesn't share any of the values that are said to make up the Republican consensus on economics or culture or religion. His personal baggage is heavy and a mile long. He had no dedicated constituency within the party.
Of course I'm not talking to the run-of-the-mill Republican. There are vast hoards of these people who have never read a book and vote only by the most sordid political instinct known to man. McCain is their candidate. It comes down to one thing only: the simple-minded, unthinking impression that he is a war hero and, more than anyone else, has what it takes to smash the evil foreign peoples who want to kill us. In short, he appeals to the militaristic, nationalistic impulses of the base Republican base.
The real question is why that one issue would trump every other concern alive among Republicans. How is it that imperialist nationalism has come to trump every other issue?

Murray Rothbard used to tell the story of speaking to conservative and Republican audiences in the late 1950s and early 1960s. There would be large groups gathered for various talks on economics and politics. He would give a lecture on the problem of price controls, or protectionism, or high taxes. People really liked what he had to say. They would clap, and learn from his lecture.
Then he would sit down. At some point in the course of the conference, the appointed anti-communist speaker would rise to the podium. He would decry the evil of Russia and its atheistic system of government. He would call for beefing up nuclear weapons and hint darkly of the necessity of war. He would end with an apocalyptic statement about the need for everyone to completely dedicate themselves to eradicating the communists by any means necessary. No talk of limiting or cutting government; quite the opposite.
So how would these people, who clapped for Murray, respond to the warmonger? Insanely, wildly, uncontrollably. They would stand and scream and yell and cheer, getting up on their chairs and putting their hands together high in the air. The applause would go on for five minutes and more, and the speaker would be later mauled for autographs. His books would sell wildly.
Meanwhile, poor Murray would stand there in alarm. How could these same people cheer both a call for liberty and a call for empire, and, most notably, give their hearts over to the maniacal nationalist while being merely polite to a call for the same liberty that had led this party to oppose FDR's domestic and foreign-policy? It was experiences like these that led him to write the most important dissection of the Republican party ever to appear: The Betrayal of the American Right. It is here that Murray engages in a deep, soul-searching look at his own role in red-baiting in the 1950s. He had hoped to use the anti-communist movement to educate people about the need for freedom.
"It is clear that libertarians and Old Rightists, including myself, had made a great mistake in endorsing domestic red-baiting, a red-baiting that proved to be the major entering wedge for the complete transformation of the original right wing," writes Murray. Instead of supporting freedom, the anti-communist movement ended up acculturating Republicans to the imperial mindset. The moral priority of crushing a foreign government trumped every other issue.
At the same time, the libertarianism of the GOP's domestic agenda was supplanted by a belief that "big government and domestic statism were perfectly acceptable, provided that they were steeped in some sort of Burkean tradition and enjoyed a Christian framework." Fiery individualism and radicalism were replaced by a longing for a static, controlling elite of the European sort. Liberty was washed away.
That was fifty years ago. Today the same priorities abound on the right: first, nationalism and empire, and, second, longing for order in the domestic area. The switch from anti-communist militarism to anti-Islamic imperialism was not difficult. They took a chapter out of Orwell, and merely changed the name of the enemy.
All of this laid the groundwork for McCain. Each Republican presidential contender has been worse than the last: Nixon and Reagan felt the need to endorse some libertarian themes in their campaigns, and even the two Bushes used limited government and anti-big government rhetoric. But that has evaporated, replaced now by the most virulent jingoism combined with domestic statism.
Many of my Republican friends criticize McCain as a leftist. I can see the point. But we ought not be too quick to believe that all forms of anti-libertarian ideology are leftist. We need to recognize that there is a form of non-leftist statism of a very distinct kind. It is not socialist in the traditional sense. It believes in a corporate state, combined with protectionism and belligerence in foreign policy. The right-wing predecessors here are Mussolini, Franco, and Hitler, and the name of the ideology is fascism.
For more on this, see John T. Flynn's As We Go Marching. He listed some points of the fascist program. It is a form of social organization "in which the government acknowledges no restraint upon its powers," is managed by the "leadership principle," and in which "the government is organized to operate the capitalist system and enable it to function – under an immense bureaucracy." In fascism, "militarism is used as a conscious mechanism of government spending," and "imperialism is included as a policy inevitably flowing from militarism." "Wherever you find a nation using all of these devices," he wrote, "you will know that this is a fascist nation."
Republicans are prepared to push this agenda, altered to fit the American political context, in this election. Their number one tactic to retain power is impugning the patriotism of Barack Obama. It seems like a puzzle, but an opinion piece by William Kristol in the New York Times offers a clue into the basis of the Republican campaign. He first makes a big deal out of the fact that Obama used to wear an American flag pin on his coat, but now no longer does so. He drags this up as if to accuse him of disloyalty to the American cause.
It is hard to imagine a more brainless and low-level tactic than to harp on such things. It compares only to the periodic campaigns by Republicans on the issue of flag burning, as if whether a person burns a privately owned flag has any bearing at all on the well-being of the country. But then Kristol goes further into the depths of depravity by attempting to paint Obama's wife as guilty of treason for saying that she is proud of America "for the first time in my adult lifetime." By citing these words, he is implying that she is an America hater.
Now, what buttons is Kristol trying to push here? It is the now familiar fascist theme: loyalty to the nation state and its wars must be the first and only test of worthiness to serve in public office. Folks, this is a cloud no bigger than a man's hand that is very likely to mutate into a full storm. Sad to say, the Republican faithful, the same people that were stupid enough to vote for McCain, will probably go for it.
How I recall those heady days of the 1970s, when everyone said that the move of the neoconservatives into the Republican party portended a raising of the intellectual level. Quite the reverse. These people are taking things straight into the gutter, where they had already been tending since the late 1950s.

Stiglitz Blames Greenspan For Recession

Former World Bank Chief Economist says US probably already in recession

Steve Watson
Infowars.net
http://www.infowars.net/articles/february2008/260208Stiglitz.htm
Tuesday, Feb 26, 2008

Former chief economist of the World Bank, Joseph Stiglitz, has said that the US economy is already in recession and is pointing the finger of blame directly towards former Federal Reserve chairman Alan Greenspan.
Remarking that the economy is "probably" now in recession, Stiglitz told Bloomberg Television that "There is a very significant slowdown in the U.S. economy... The housing bubble has broken and housing prices are coming down. Most experts think they will have to come down substantially more.''
Stiglitz stressed that Alan Greenspan "is right that this downturn is going to be the worst downturn in a quarter century, but he's largely to blame,'' adding "It's not just that he was asleep at the wheel, he actively looked the other way''.
Stiglitz's comments come on the back of news that Greenspan has been actively urging Gulf states to abandon the dollar peg, a move that could result in financial chaos and a further economic depression in America. We have previously reported on Greenspan's penchant for working to destroy the US economy.

Stiglitz also took a swipe at current Fed chairman Ben S. Bernanke, charging him with failing to counter the deterioration of the real-estate market by procrastinating over interest rate cuts.
"The dramatic lowering of the main interest rate by 75 basis points [last month] was a panic not a prudent measure.'' Stiglitz said.
The Nobel-prize winning economist also cited the $3 trillion cost of the Iraq war as a key factor in the economic downturn, saying it has increased the budget deficit and consumed resources that would otherwise promote growth.
In contrast, the president last week stated that the war in Iraq has had no bearing on the economic slump.
Stiglitz is no stranger to speaking out against the establishment on the economy. In October 2001 he caused controversy when he exposed rampant corruption within the IMF and blew the whistle on their nefarious methods of inducing countries to fall under their debt before stripping them of sovereignty and hollowing out their economies.
Sixteen months ago, on the nationally syndicated Alex Jones radio show, Stiglitz predicted a global economic crash would occur within 2 years.

Dollar slides to new lows after Fed warning

Neil Dennis and Krishna Guha
Financial Times
http://www.ft.com/cms/s/0/fa616ac0-e519-11dc-9334-0000779fd2ac.html
Wednesday, February 27, 2008

The euro broke new records above $1.50 against the dollar on Wednesday, pushing oil and precious metals to fresh peaks, while weighing on equity markets.
The dramatic moves followed weak US data and comments from the Federal Reserve which reinforced expectations of further aggressive US rate cuts.
Dollar weakness was widespread. There were records for the euro, which climbed as high as $1.5087, and the Swiss franc, which hit SFr1.0668. By midday in London, the euro was up 0.4 per cent at $1.5035 and the Swissie was 0.5 per cent higher at SFr1.0693.
The dollar index, a measure of the US unit’s strength against a basket of currencies, fell to a record low of 74.264.

Tumbling US house prices and weak consumer confidence overshadowed rising producer price inflation on Tuesday. Later, the Federal Reserve’s Don Kohn said slowing growth was a greater risk than rising inflation.
Mr Kohn said aggressive rate cuts by the Fed in recent weeks would not forestall a period of economic weakness in the near term.
He indicated that price pressures were moving up the Fed’s list of concerns but added: “I expect the run-up in headline inflation to be reversed and core inflation to edge lower over the next few years.”
Alan Ruskin, currency strategist at RBS Greenwich Capital, said: ”Ugly US data has kept up momentum for the Federal Reserve to ease rates, while the Fed shows it is still willing to oblige, regardless of the state of inflation.”
The moves in currency markets encouraged buyers of commodities as the weak dollar made investment in assets priced in the US currency cheaper.
Oil prices also hit records. Nymex West Texas intermediate soared to $102.08, before edging back to $101.25. Brent crude rose to $100.53 as investors hedged against the weaker dollar.
Gold, which is often used as a hedge against inflation when oil prices rise, hit a fresh peak of $964.70 a troy ounce, and helped lift other precious metals. Silver rose to $19.43 its highest level since November 1980.
James Steel at HSBC said: ”The combination of higher prices and an accommodative monetary policy is in our view, tailor made for gold price appreciation.”

Video: The US Economy, the Dollar, and Presidential Politics

Tuesday, February 26, 2008

Former World Bank Chief Economist Predicts Global Crash

Nobel Prize winner Stiglitz highlights agenda of predatory globalism now arriving in America under auspices of NAFTA Superhighway, North American Union

Paul Joseph Watson & Alex Jones/Prison Planet.com | October 30 2006
http://www.prisonplanet.com/articles/october2006/301006globalcrash.htm

Former World Bank Vice President, Chief Economist and Nobel Prize winner Joseph Stiglitz has predicted a global economic crash within 24 months - unless the current downturn is successfully managed. Asked if the situation was being properly handled Stiglitz emphatically responded "no," and also drew ominous parallels to the development of the NAFTA Superhighway and the North American Union.
Stiglitz caused controversy in October 2001 when he exposed rampant corruption within the IMF and blew the whistle on their nefarious methods of inducing countries to fall under their debt before stripping them of sovereignty and hollowing out their economies.
Speaking on the nationally syndicated Alex Jones radio show, Stiglitz defined the process of globalization as a system that was "rigged against the poor countries, rigged for the advanced industrial countries - the result of that is there were an awful lot of losers."
The Columbia University Professor described how rampant privatization has crippled Mexico, in particular citing the sell-off of major infrastructure such as roads.
"They sold the roads to the private enterprise and the hope was that they would be more efficient but of course what happens is that they didn't maintain the roads, they couldn't generate enough revenue and they eventually had to default and give the roads back to the government."
Stiglitz agreed that the process of hijacking and looting key infrastructure on the part of the IMF and World Bank, as an offshoot of predatory globalization, had now moved from the third world to Europe, the United States and Canada.
These sentiments are especially disturbing when we consider the current fast-moving quasi-secret agenda to sell-off major American highways to foreign corporations who plan to turn them into toll roads for tracking and taxation purposes - collectively known as the NAFTA Superhighway. The program forms the framework for the advancement of the North American Union - a collective governmental, border and trading bloc that President Bush has signed the U.S. over to under the Security and Prosperity Partnership of March 2005.
As we previously reported, US citizens will be forced to adopt a de-facto national identification card and have their freedom of mobility defined by behavioral fealty to the government under proposals set to derive from NAFTA superhighway toll road systems and the implementation of the American Union.
"This is a movement that's gone on all over the world," said Stiglitz, "the movement of trying to turn over basic facilities - water, roads, to the private sector."

Speaking about the agenda of the World Bank since the installation of Paul Wolfowitz, Stiglitz highlighted the shift which began back in August 2001 whereby the Bush administration moved to block transparency of secret bank accounts, which in part facilitated the 9/11 terror attacks.
"Unfortunately in this current administration, the defense industries and the energy industries have really been running the show and it has been disastrous," said Stiglitz.
Discussing the warning signs of plummeting real estate prices in the U.S., Stiglitz stated that a global economic depression could only be avoided if a correction was made but at the moment all the indicators are that the situation is not being well managed.
"If it's well managed it will only be a slow-down, if it's not well-managed it could be a recession," said Stiglitz.
Asked if the debt bubble was being well-managed Stiglitz plainly responded in the negative.
"It's gonna be difficult....this has been perhaps the worst six years of mismanagement of the macro economy....I think we can avoid an implosion if we manage this carefully but it's going to be very risky," said Stiglitz, agreeing that if the same course continued to be followed a global depression would occur within 12-24 months.
Stiglitz said his reason for leaving the World Bank was that he was told he would not be able to speak his mind on the issues he considered paramount to the press, summarized as helping make the world a better place, and that the two "amicably parted ways." He also said that the IMF were particularly upset that his predictions about their disastrous policies quickly came true - which is an ominous portender for his thoughts on the possibility of a global crash.
Stiglitz also slammed the recently passed Military Commissions Act, stating that the bill, "really did compromise some of our basic rights," and that it was a "disaster" for American freedom.
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Great Audio: Our Corrupt Banking System

Click link to hear Our Corrupt Banking System:
http://prisonplanet.com/audio/180907economy.mp3

Greenspan Working To Destroy US Economy

Steve Watson & Alex Jones
Infowars.net Editorial
http://infowars.net/articles/september2007/180907Greenspan.htm
Tuesday, Sept 18, 2007

Over the past few days Alan Greenspan has appeared in every major financial publication to explain exactly what is going to happen to the economy and what the next steps should be, while also deriding the Neocon administration for the current downturn. For this he has been lauded as some form of economic savior, yet a cursory examination of the facts reveals that the economic decline has long been in the pipeline and Greenspan and his ilk operate under the influence of those who continue to engineer the slow meltdown.
Alan Greenspan and Paul Volker, both former Federal Reserve Chairmen, along with current chairman Ben Bernanke, the Treasury Secretary Henry Paulson and Alistair Darling, Exchequer of the Treasury in England have been out in unison since last Friday announcing over and over that the economy is going to implode, there is going to be serious inflation, housing is going to go down between ten and thirty percent, and the Dollar is going to be replaced with the Euro.

With the effects of the credit crunch hitting more and more lower level lenders, it is clear to see that the fallout is spreading and propagating a general decline. We are seeing the unfolding of an overall meltdown that represents a gutting of the United States by neo-mercantilist institutions bent on the formation of a new global monopoly.

We are witnessing the unfolding of a crash exactly as predicted by Former World Bank Vice President, Chief Economist and Nobel Prize winner Joseph Stiglitz this time last year.
Stiglitz agreed that the process of hijacking and looting key infrastructure on the part of the IMF and World Bank, as an offshoot of predatory globalization, has now moved from the third world to Europe, the United States and Canada.
Stiglitz warned that the signs were there with plummeting real estate prices in the U.S., stating that a global economic depression could only be avoided if a correction was made.
But no correction will be made because the World Bank/IMF/Globalist doctrine betrays a focused agenda to deliberately foment economic turmoil, riots, and then enforced bondage to eternal debt. We have witnessed this time and time again, their own documents even confirm this as the chosen method of social control.
The shareholders of Federal Reserve, part of the same group of elite families that owns the bank of England, created the IMF and World bank to siphon government funds. Then they effectively steal the real assets of the third world countries that take their loans in some cases at 42% interest. These global loan sharks secure the water, power and roads which are then handed over to private, piratical, letter of mark companies.
The heads of such companies, together with the central banks come together within elite institutions such as the Bilderberg group to pull together their policies and discuss how to proceed.
Bilderberg have sworn to bring about what Jose Barroso, President of the European Commission and a Bilderberg member, refers to as the "post-industrial revolution," which in layman's terms translates as a global economic crash, another great depression and the total evisceration of the middle class. They are intent on achieving this by ensuring oil prices soar via a combination of conflict in the middle east and encouraging fears over peak oil.
At the 2005 Bilderberg meeting sources inside the group told reporters Daniel Estulin and Jim Tucker, who have built up a credible reputation for accurately forecasting future events based on leaks from Bilderberg conferences, that the elite wanted to consolidate by bringing down the standard of living in the US and Europe, fearing that the middle class is out of control and has been granted too much credit which must be offset by a phase of consolidation.
We now see figures like Alan Greenspan re-iterating the exact same mantra, that there has been too much "irrational exuberance".
Greenspan is now being lauded for doing the job of publicly destroying confidence in the dollar, publicly trying to destroy confidence in the banks, and publicly trying to destroy the economy, enabling a consolidation during a recession as set out exactly in globalist blueprints.

500 billion globally has been pumped in not to save the markets, but to ensure a slow, gradual, non-panic inducing decline.
It is disgusting to see the very people, the elite central bankers that the founding fathers of the U.S. fought against, the very veracious criminals that took over the economy and bankrupted the country, present themselves as salvation.
It was the banks that issued the credit, the banks that overprinted the money and the banks that sent credit cards to 17 year old high school graduates. When the elite start positioning themselves, blaming the fallout of their own actions on scapegoats and posing as our guardians, alarm bells should be ringing.
Two and a half years ago they tried to pop the real estate bubble, a year and a half ago they tried again, and this year they have succeeded. While allowing credit to continue, the central banks had the larger institutions stop buying paper securities, now that has caused a major restriction in the issuance of credit. They are not the saviors, they are the perpetrators.
The crisis is an engineered one on behalf of a global elite who have long pushed for increased regionalization, a single currency and a market they can monopolize more effectively.

Listen to Alex Jones' impassioned rant on this topic here.
http://prisonplanet.com/audio/180907economy.mp3

False Flag Prospects, 2008 -- Top Three US Target Cities

Captain Eric H. May
Global Research
http://www.globalresearch.ca/index.php?context=va&aid=8165
Monday, February 25, 2008

The easiest way to carry out a false flag attack is by setting up a military exercise that simulates the very attack you want to carry out. As I'll detail below, this is exactly how government perpetrators in the US and UK handled the 9/11 and 7/7 "terror" attacks, which were in reality government attacks blamed on "terrorists."

Although ill health keeps me from working as hard in the area of false flag analysis as I used to, the urging of independent editors and brother intelligence officers has prompted me to write this essay. I'll keep it short for readers with limited time, but I will include invaluable links for those who want to delve deeper and understand better.

My aim, as a former military intelligence officer who spent five years with the U.S. Army 75th Division conducting military war games, is to convince the American people that the "next 9/11" -- constantly promised by officials and the media -- is likely to be carried out under the guise of future military exercises. If the American people are aware of pending exercises and the danger they represent, then the exercises cannot "go live" and effect the very terror events that they are supposed to be rehearsing against.

Military Exercises

The 9/11, 2001 attacks in the United States and the 7/7, 2005 attacks in the United Kingdom both have smoking guns proving that the mass murderers were not foreign terrorists but domestic tyrants. Each country's government was conducting military exercises that simulated the exact events that were to occur.

The US 9/11 Commission stumbled across strong evidence of treason by Dick Cheney when it interviewed Secretary of Transportation Norman Mineta, who was present in Cheney's famous command bunker as Flight 77 sped toward Washington, DC. Cheney was at the center of national military exercises simulating terrorist hijackings of US aircraft -- at the very time that those hijackings were occurring in real life. On May 23, 2003, Secretary Mineta testified:

"During the time that the airplane was coming in to the Pentagon, there was a young man who would come in and say to the Vice President, "The plane is 50 miles out." "The plane is 30 miles out." And when it got down to "the plane is 10 miles out," the young man also said to the Vice President, "Do the orders still stand?" And the Vice President turned and whipped his neck around and said, "Of course the orders still stand. Have you heard anything to the contrary?"

9/11 Commission co-chairman Lee Hamilton failed to follow up on the bombshell revelation, and quickly switched the topic. Thanks to YouTube, Mineta's astounding revelation and Hamilton's amazing reaction are both viewable on a three minute clip:
http://www.youtube.com/watch?v=bDfdOwt2v3Y

In the case of the 7/7 London railway bombings, there is same-day evidence in a BBC interview with former Scotland Yard anti-terrorism agent, Peter Power, who was a contract employee working in government exercises:

POWER: "At half past nine this morning we were actually running an exercise for a company of over a thousand people in London based on simultaneous bombs going off precisely at the railway stations where it happened this morning, so I still have the hairs on the back of my neck standing up right now."

BBC HOST: "To get this quite straight, you were running an exercise to see how you would cope with this and it happened while you were running the exercise?"

POWER: "Precisely."

For a one minute excerpt containing the statements above, refer to
http://www.youtube.com/watch?v=JKvkhe3rqtc

Mainstream Media

It goes without saying that serious media inquiry would quickly ferret out the facts demonstrating high treason in the cases of 9/11 and 7/7. It also goes without saying, unfortunately, that the traitors behind the two false flag attacks understood this very well, and would not have done what they did without a green light from a collaborative media.

Three World Trade Center buildings collapsed in New York City on September 11, 2001: WTC 1 and WTC 2 (the Twin Towers) in the morning, and WTC 7 (the Salomon Building) at 5:20 p.m. EST. Given that all three buildings were said to be unexpected collapses by all official sources, there is no good reason -- except for complicity -- to explain how it is that the BBC reported the collapse of WTC 7 twenty minutes before it happened:
http://www.youtube.com/watch?v=C7SwOT29gbc&feature=related

Fox news damned itself by announcing that WTC 7 had collapsed -- even as it showed a live shot of downtown New York with WTC 7 still standing. A few seconds later the building collapsed, understandably confusing the newscasters:
http://www.youtube.com/watch?v=GwUJ9MhzgK

The owner of all three buildings was Larry Silverstein, who had recently doubled the insurance value of the Twin Towers. Amazingly, "Lucky Larry," later stated in a PBS interview that he and the New York Fire Department agreed to a controlled demolition of WTC 7. Since skyscrapers are not wired for demolition -- unless someone intends to demolish them -- Silverstein's statement is an admission that 9/11 was an inside job:
http://www.youtube.com/watch?v=7WYdAJQV100

"The Noble Lie"

I believe that on the strength of the five YouTube links above an objective investigation would have more than enough evidence to warrant impeachment of Bush and Cheney on a charge of high treason, and to summon a grand jury that would indict many others on charges of high treason against Larry Silverstein and other apparent 9/11 collaborators. I believe that the American people, if presented with a single news story containing the five YouTube links above, would demand that the case of high treason be carried to its logical conclusion.

Congress, though, won't impeach the president. The mainstream media, for which I used to write, will not investigate and report the story. The military that was used as a tool to mass murder American citizens will not take action against traitors in uniform who knew exactly what they were doing on 9/11, or the many more uniformed dupes who thought they were conducting military exercises until the events of 9/11 occurred. To this day there have been no adverse actions -- which would require investigation and evaluation -- against any military person involved in what even official apologists call the greatest defense failure in American history. All of this shows that the fix is in, and that we are in a fix.

The high officials, media executives and military officers who are bound by law and ethics to serve the American people have become a textbook example of a grand conspiracy. To look at it from their point of view, they are historic actors who are beyond good and evil, who must stimulate the American people to a necessary geostrategic adventure by any means necessary. To them, the official account of the 9/11 "terror" attacks is what Plato once described as the "noble lie," a necessary falsehood told to a childlike public in order to direct it maturely. The simple fact is that 9/11 has justified an attempt to seize and control the ultimate geostrategic resource: oil. He who controls Middle East oil controls the world.

Top Three US Target Cities

Last year I published "Next 9/11, Summer 2007?" in response to the same kind of requests that have led me to publish this essay as a 2008 update. My 2007 three most likely cities for the next 9/11 were Houston, Chicago and Portland. This year the same three cities are still most endangered, in light of the fact that the US military has designated Texas, Indiana and Oregon as three of its four target states in the 2008 version of its Noble Resolve military exercises. Granted, Chicago is in Illinois, not Indiana, but Indiana is quite close, and has been used to stage forces for terror exercises conducted in Chicago in recent years.

It may come as a surprise to people not acquainted with military preparations that the same cities remain on the list even though analysts like me have publicized them widely. There are considerable difficulties in setting up the political, police, military and media players necessary to support a false flag attack. While many in the 911 truth movement believes that national military forces can simply hit any city at any time, it's not so easy -- thank God. Fortunately, this means that those of us who study false flag prospects and focus on most likely targets; regrettably, this means that target cities can't breathe easy just because they have detected, exposed and preempted a single false flag attempt.

Here is a brief target analysis of the top three cities:

Primary Target: Houston. Over the past four years military and police veterans like me have been alerting the public to government exercises aiming at the nuclear destruction of Houston petro-suburbs. Five times in those four years we were able to predict to within a day major petrochemical explosions in those petro-suburbs. The odds against this kind of accuracy are astronomical. As the center of Big Oil and the Bush Family, Houston remains the most endangered city in America. Any patriotic group, like mine, trying to alert its home city to the dangers of a false flag attack should read my recent article, "The 1/31 Nuke: Proof for Ron Paul" about the successful interdiction of a 2006 attempt against Texas City:
http://www.thepriceofliberty.org/08/01/28/may.htm

Secondary Target: Chicago. While Houston is the most endangered city, the most endangered building -- the best candidate to be the next World Trade Center -- is the Sears Tower. Official sources have pronounced it just that ever since the original 9/11 attack, when they said it was on the Al Qaeda hit list. Larry Silverstein, who bought the Twin Towers two months before 9/11, led a group that purchased the Sears Tower on 3/11, 2004, the day of the Madrid bombings. Federal officials have been pointing to Chicago and its Sears Tower as Al Qaeda targets since the original 9/11 attacks, and have repeated the threat ever since. In May 2006,, the government scheduled secret 9/11-type exercises in Chicago, while Chicago Mayor Daley was docked conveniently away in Israel for his first visit there. I sent a widely read communiqu? to Illinois Governor Blagojevich as part of a successful Internet attempt to shut down the pending false flag attack:
http://tekgnosis.typepad.com/tekgnosis/2006/05/ghost_troop_com.html

Tertiary Target: Portland. Portland, called "Little Beirut" by Bush cronies because of its enmity to Bush 41 and Bush 43, only made my top three list last summer, when it was designated as a target for a nuclear attack by successive exercises Noble Resolve and TOPOFF. The language in an official press release stated the case plainly enough: "Noble Resolve will coordinate with officials in Oregon to model a nuclear attack on Portland." In the course of researching Portland for a series of articles I wrote about the city and its exercises. I discovered that Stanford and Harvard had prepared a detailed nuclear fallout map for it, that national military commanders and state National Guard commanders were telling different stories about what the exercises were trying to accomplish, and that Portland's The Oregonian newspaper was doing everything it could to avoid investigating the frightening anomalies. I wasn't at all surprised that the last day of the exercises found the Homeland Security director Michael Chertoff in downtown Portland, which was largely closed down by an "unexpected" bomb threat. For another professional perspective on how great the danger was -- and may be again -- I refer the reader to the analysis of my colleague, Major William B. Fox (USMC):
http://www.lonestaricon.com/absolutenm/anmviewer.asp?a=2006&z=186

Postscript

"Good morning. At this moment, somewhere in the world, terrorists are planning new attacks on our country. Their goal is to bring destruction to our shores that will make September the 11th pale by comparison." -- George W. Bush, Feb. 13, 2008

I can't think of a more important question than the one of where the next 9/11 will be attempted. Common sense dictates to all of us who understand the truth about 9/11 that its perpetrators must strike again. Indeed, every directive, act and decision of our post-9/11 unitary executive, cowards Congress and Judas judiciary has increased the power of the federal government to wage the Global War and impose the Homeland State.

Why on earth would those already guilty of high treason, mass murder and war crimes fail to follow up on their earlier efforts? They understand quite well that the Global War is going badly and the Homeland State is becoming onerous, and that only a reapplication of false flag terror will force the American people to proceed with our post-9/11 national insanity.

Still, for every one person who republishes or constructively comments on this essay, there will be another who employs division, abuse and ridicule against me or anyone else who asserts the common sense point that false flaggers will continue to false flag, just as murderers will continue to murder and robbers will continue to rob. It's Newtonian in its simplicity: things continue to drift the way they are drifting until they are stopped.

We can only stop the deadly drift of America by understanding 9/11 and anticipating the next 9/11. Many of the vociferous voices impeding our understanding and anticipation are performing a vital service for treason. The federal government once used counterintelligence programs (COINTELPRO) against the Vietnam era antiwar and civil rights movement, and common sense would suggest that they are using it again in the post-9/11 era, this time against the antiwar and 911 truth movement. The most dangerous voices of all our those from false friends who have infiltrated us to confuse us until the traitors who carried out 9/11 can repeat their performance.

Captain May is a former Army military intelligence and public affairs officer, as well as a former NBC editorial writer. His political and military analyses have appeared in The Wall Street Journal, the Houston Chronicle and Military Intelligence Magazine.

For more information, or his interview schedule, refer to his homesite:
http://www.spiritone.com/~pazuu/pow-mia/Ghost_Troop_Captain_Eric_H_May.htm

Monday, February 25, 2008

Middle Class May Be Subject To Food Rations, Warns UN

Paul Joseph Watson
Prison Planet
http://www.prisonplanet.com/articles/february2008/022508_food_rations.htm
Monday, February 25th, 2008

The UN is warning of a food shortage crisis and drawing up plans for food rations which will hit even middle-class suburban populations as inflation and economic uncertainty causes the prices of staple food commodities to skyrocket.
The United Nation's World Food Programme cautions today that if it doesn't receive more funding, it will have to halt food aid to developing countries like Mexico and China.
"The WFP crisis talks come as the body sees the emergence of a “new area of hunger” in developing countries where even middle-class, urban people are being “priced out of the food market” because of rising food prices," reports the Financial Times.

The warning coincides with a speech by William Lapp, of US-based consultancy Advanced Economic Solutions, who cautioned that rising agricultural raw material prices would translate this year into sharply higher food inflation.
It also parallels a prediction by Don Coxe, a Chicago-based global portfolio strategist for BMO Financial Group who correctly forecast the fall of the dollar and the rise in price of gold and oil years in advance, who last week spoke of a "global food crisis" which will cause the world to enter into, "A period of food shortages and swiftly rising prices," leading to government embargoes.
With the U.S. on the verge of a recession and, as many analysts have warned, a potential second great depression, those long scoffed at for hoarding vast quantities of storable food may unfortunately be able to say "I told you so" if the dollar continues to deteriorate and people begin to be priced out of the food market.

Global food prices have skyrocketed by as much as 60 per cent in the past year, while UN officials warn of the likelihood of food riots.
"If prices continue to rise, I would not be surprised if we began to see food riots,” said Jacques Diouf, director-general of the UN’s Food and Agriculture Organisation, last October.
Many see the food shortages, whether real or manufactured, as simply another pretext for the implementation of martial law and the introduction of foreign troops to patrol major U.S. cities.
A recent announcement by Northcom confirmed that U.S. and Canadian troops will be allowed to patrol each other's countries in the event of a national emergency.
"U.S. Air Force Gen. Gene Renuart, commander of North American Aerospace Defense Command and U.S. Northern Command, and Canadian Air Force Lt.-Gen. Marc Dumais, commander of Canada Command, have signed a Civil Assistance Plan that allows the military from one nation to support the armed forces of the other nation during a civil emergency," reads a Northcom press release.

Sunday, February 24, 2008

Elite Funding Both Sides Of Immigration Issue

Ethan Allen
IntelStrike
http://intelstrike.com/?p=205
February 20, 2008

In yet another move by the global elite in hedge funding to insure victory no matter who wins, the Ford Foundation, Rockefeller Foundation, the Gates Foundation, the Macarthur Foundation, as well as others, have been providing funding to the National Council of La Raza, one of the most racist Hispanic ‘civil rights’ groups. La Raza literally means ‘The Race’ translated from Spanish, and is well known for selling racist and xenophobic propaganda to legal as well as illegal Hispanic immigrants inside the United States. They have a long and controversial history and have had clashes with whites and minorities of other races over immigration, employment and cultural issues.
The elites’ cash cows have also been big donors to other left leaning illegal immigration, including MALDEF, the Center for Immigrant democracy, Casa Mexico, and the Mexican-American legal defense and education fund. A quick google search of the philanthropic groups will reveal that they are open and proud of their investments into these immigration groups. The Macarthur Foundation’s own website admits proudly how they showered La Raza with $600,000 and a $350,000 grants. The Bill and Melinda Gates Foundation has gone ever farther, coughing up over $20 million to La Raza since 2002.
And on the flip side of the immigration issue, the pro border control and anti-illegal immigration group, FAIR (Federation for American immigration reform), has received over $1.2 million dollars from the Pioneer Fund, a group founded in 1937 on the basis of study in eugenics and ‘race sciences.’ Several of the the Pioneer fund’s beneficiaries include Arthur Jenson, Richard Lynn, J Phillip Rushton, and Roger Pearson, all right leaning eugenicists and social biology advocates. The Pioneer fund also has ties to the Council for National Policy and the Heritage foundation, two more right wing policy research organizations.
Despite funding both sides of the immigration issue and the apparent contradictions involved, that’s not the end to the madness. The Macarthur Foundation has also been forking over dough to several planned parenthood organizations to increase the education and use of abortion and safe sex; tools of soft population control. Since 1986, the Macarthur Foundation has donated over $215 million to almost 1,000 groups and individuals in the field of population and reproductive health.
Whether it’s left wing groups promoting open borders and drivers licenses for illegal aliens, or right wing groups calling for deportation and border control, the eugenics loving, big brother hugging elites have been bank rolling their way to a victorious step in moving us all closer to their vision of a new world order. How can one fail when one has pawns on both sides of the chess board? The game is fixed.

Video: Aztlan La Raza (the race)

Texans protest against planned NAFTA superhighway

Nick Langewis and David Edwards
Raw Story
http://rawstory.com/news/2008/Texans_protest_against_planned_NAFTA_superhighway_0220.html
Friday, February 22, 2008

As Senators Clinton and Obama prepared to debate in their state, Texans were marching in protest over the NAFTA superhighway known as the Trans-Texas Corridor, or I-69, the primary purpose of which is to speed the delivery of goods coming in from Mexico to proposed inland ports.
The TTC is planned to span the state of Texas from Laredo, on the Mexican border, to Texarkana, on the border with Arkansas, to continue north to Canada. The projected cost is $183 billion over fifty years, with no American companies expressing interest in financing it.
With no public approval required to begin construction, repeated calls against the TTC at public meetings, with seldom a word of support, may easily go unheeded.
(Article continues below)

"This is about international--global companies that are coming in and having their way with our politicians," says Terri Hall of TexasTURF. "It doesn't matter what does to the people in the path," she continues, "it doesn't matter what it does to our way of life..."
"Citizens here," says an unidentified man at a public hearing, "are not going to bear the burden so Wal-Mart can get their cargo into the U.S. cheaper and faster."
Congressman Ron Paul (R-TX) is among opponents of the TTC, doubting the intentions of those planning its construction. He cites millions of acres subject to eminent domain, which the state promises to use against landowners who protest, and also notes that he has yet to encounter a person that supports the TTC.
"Frankly," says Texas Department of Transportation's Phil Russell, "we're in a different day and age right now, and the way we built our roadways fifty years ago simply isn't keeping up with the congestion that we're seeing here in Texas now."
"This is really messing with Texas," quips an incredulous Lou Dobbs to anchor Bill Tucker. "You can't tell me that Governor Rick Perry and the head of the Department of Transportation down there--that they're dumb enough to say that, because all of this traffic's coming out of Mexico, that Texas citizens should be funding the highway that is needed as a result of that traffic. That's absolutely idiotic."
"If people are putting up with this nonsense from their state government, and Governor Rick Perry, and their Department of Transportation," Dobbs continues, "these aren't the Texans that I know, and who I respect mightily."

The Bonfire of Capital

MIKE WHITNEY
Counterpunch
http://www.counterpunch.org/whitney02222008.html
Saturday, February 23, 2008

The credit storm which began in July when two Bear Stearns hedge funds were forced to liquidate, has continued to intensify. Last week the noose tightened around auction-rate securities, a little-known part of the market that requires short-term funding to set rates for long-term municipal bonds. The $330 billion ARS market has dried up overnight pushing up rates as high as 20 per cent on some bonds -- a new benchmark for short term debt. Auction-rate securities are now headed for extinction just like the other previously-vital parts of the structured finance paradigm.
The $2 trillion market for collateralized debt obligations (CDOs), the multi-trillion dollar mortgage-backed securities market (MBSs) and the $1.3 asset-backed commercial paper (ABCP) market have all shut down draining a small ocean of capital from the financial system and pushing many of the banks and hedge funds closer to default.
The price of insuring corporate bonds has skyrocketed in the last few weeks, making it more difficult for businesses to get the funding they need to expand or continue present operations. Much of this has to do with the growing uncertainty about the reliability of credit default swaps, a $45 trillion dollar market which remains virtually unregulated. Credit-default swaps are a type of financial instrument that are used to speculate on a company's ability to repay debt. They pay the buyer face value in exchange for the underlying securities or the cash equivalent if a borrower fails to adhere to its debt agreements. When the price of CDSs increases, it means that there is greater doubt about the quality of the bond. Prices are presently soaring because the entire structured finance market -- and everything connected to it-is under withering attack from the meltdown in subprime mortgages. As foreclosures continue to rise, the subprime loans that were transformed into securities will continue to unwind, destroying trillions of dollars of virtual-capital in the secondary market.

It all sounds more complicated than it really is. Imagine a 200 ft. conveyor belt with two burly workers and a mountain-sized pile of money on one end, and a towering bonfire on the other. Every time a home goes into foreclosure; the two workers stack the money that was lost on the transaction, plus all of the cash that was leveraged on the home via "securitization" and derivatives, onto the conveyor-belt where it is fed into the fire. That is precisely what is happening right now and the amount of capital that is being consumed by the flames far exceeds the Fed's paltry increases to the money supply or Bush's projected $168 billion "surplus package". Capital is being sucked out of the system faster than it can be replaced which is apparent by the sudden cramping in the financial system and a more generalized slowdown in consumer spending.
According to a recent Bloomberg article:
"A year ago $20 million would have gotten Luminent Mortgage Capital Inc. access to $640 million in loans to buy top-rated mortgage-backed securities. Now that much cash gets the firm no more than $80 million. ... (Only) 6 lenders are offering 5 times leverage, while a year ago, 20 banks extended 33 times."
The banks are not providing anywhere near as much money for leveraged investments as they did just last year. And, when credit shrinks on a national scale -- as it is -- so does the economy. It' a simple formula; less money means less economic activity, less growth, fewer jobs, tighter budgets and more pain.
Bloomberg continues:
"Wall Street firms, reeling from $146 billion in losses on their debt holdings, are fueling a credit crisis by clamping down on lending to investors and hedge funds that use borrowed money to buy securities. By pulling back, (the banks) are contributing to reduced demand and lower prices throughout the fixed-income world."
The banks are in no position to be generous because they're already saddled with $400 billion in MBSs and CDOs---as well as another $170 billion in private equity deals -- for which there is currently no market. They've had to dramatically cut back on their lending because they either don't have the resources or are facing bankruptcy in the near future.
An article which appeared on the front page of the Financial Times last week, illustrates how hard-pressed the banks really are:
"US banks have been quietly borrowing massive amounts of money from the Federal Reserve...$50 billion in one month."
The Fed's new Term Auction Facility "allows the banks to borrow money against all sort of dodgy collateral," says Christopher Wood, analyst at CLSA. "The banks are increasingly giving the Fed the garbage collateral nobody else wants to take ... [this] suggests a perilous condition for America's banking system."
The move has sparked unease among some analysts about the stress developing in opaque corners of the US banking system and the banks' growing reliance on indirect forms of government support." ("US Banks borrow $50 billion via New Fed Facility", Financial Times) (The story appeared nowhere in the US media)
At the same time the banks are getting backdoor injections of liquidity from the Fed. Banking giant Citigroup has been trying to off-load some of its branches so it can cover its structured investment losses. It all looks rather desperate, but scouring the planet for capital to shore up flagging balance sheets is turning out to be a full-time job for many of America's largest investment banks. It is the only way they can stay one step ahead of the hangman.
In the last few days, gold has spiked to $950, a new high, while oil futures passed the $100 per barrel mark. The battered greenback has already taken a beating, and yet, Fed chairman Bernanke is signaling that there are more rate cuts to come. The prospect of a global run on the dollar has never been greater. Still, Bernanke will do whatever he can to resuscitate the faltering banking system, even if he destroys the currency in the process. Unfortunately, interest rates alone won't cut it. The banks need capital; and fast. Meanwhile, the waning dollar has sent food and energy prices soaring which is leaving consumers without the discretionary income they need for anything beyond the basic necessities. As a result, retail sales are down and employers are forced to lay off workers to reduce their spending. This is all part of the self-reinforcing negative-feedback loop that begins with falling home prices and then rumbles through the broader economy. There is no chance that the economy will rebound until housing prices stabilize and the rate of foreclosures returns to normal. But that could be a long way off. With housing inventory at historic highs and mortgage applications at new lows, the economy could keep somersaulting down the stairwell for a good two years or more. Only then, will we hit rock-bottom.
The country is now headed into a deep and protracted recession. Low interest credit and financial innovation have paralyzed the credit markets while inflating a monstrous equity bubble that is wreaking havoc with the world's financial system. The new market architecture, "structured finance", has collapsed under the stress of falling asset-values and rising defaults. Many of the banks are technically insolvent already, drowning in their own red ink. Public confidence in the nations' financial institutions has never been lower. Monetary policy and deregulation have failed. The system is self-destructing.
Now that the credit crunch has rendered the markets dysfunctional, spokesmen for the investor class are speaking out and confirming what many have suspected from the very beginning; that the present troubles originated at the Federal Reserve and, ultimately, that's where the responsibility lies. In an article in the Wall Street Journal this week, Harvard economics professor and former Council of Economic Advisers under President Reagan, Martin Feldstein, made this candid admission:
"There is plenty of blame to go around for the current situation. The Federal Reserve bears much of the responsibility, because of its failure to provide the appropriate supervisory oversight for the major money center banks. The Fed's banking examiners have complete access to all of the financial transactions of the banks that they supervise, and should have the technical expertise to evaluate the risks that those banks are taking. Because these banks provide credit to the nonbank financial institutions, the Fed can also indirectly examine what those other institutions are doing.
The Fed's bank examinations are supposed to assess the adequacy of each bank's capital and the quality of its assets. The Fed declared that the banks had adequate capital because it gave far too little weight to their massive off balance-sheet positions -- the structured investment vehicles (SIVs), conduits and credit line obligations---that the banks have now been forced to bring onto their balance sheets. Examiners also overstated the quality of the banks' assets, failing to allow for the potential bursting of the house price bubble. The implication of this for Fed supervision policy is clear. The way out of the current crisis is not."
How odd. So, when all else fails; tell the truth?
But Feldstein is right; the Fed refused to perform its oversight duties because its friends in the banking industry were raking in vast profits selling sketchy, subprime junk to gullible investors around the world. They knew about the "massive off balance-sheet positions" which allowed the banks' to create mortgage-backed securities and CDOs without sufficient capital reserves. They knew it all; every last bit of it, which simply proves that the Federal Reserve is an organization which serves the exclusive interests of the banking establishment and their corporate brethren in the financial industry.
Surprised?
The upcoming global recession/depression will give us plenty of time to mull over the ruinous effects of Fed policy and to devise a plan for abolishing the Federal Reserve once and for all. That is, if they don't destroy us first.