Friday, March 25, 2011

CBO: Taxing mileage a 'practical option' for revenue enhancement

The Hill
By Pete Kasperowicz
March 25, 2011

The Congressional Budget Office (CBO) this week released a report that said taxing people based on how many miles they drive is a possible option for raising new revenues and that these taxes could be used to offset the costs of highway maintenance at a time when federal funds are short.

The report discussed the proposal in great detail, including the development of technology that would allow total vehicle miles traveled (VMT) to be tracked, reported and taxed, as well as the pros and cons of mandating the installation of this technology in all vehicles..........

Continue reading here:

VIDEO: Peter Schiff Talks On The Economic Fallout Resulting From The Japan Crisis

Wednesday, March 23, 2011

The United Nations Is After Our Guns Again! Victim Disarmament + Government Gun Grabbing = Tyranny and Genocide

Dear fellow American,

Gun-grabbers around the globe believe they have it made.

Secretary of State Hillary Clinton recently announced the Obama Administration will be working hand-in-glove with the UN to pass a new “Small Arms Treaty.”

Disguised as an “International Arms Control Treaty” to fight against “terrorism,” “insurgency” and “international crime syndicates,” the UN’s Small Arms Treaty is in fact a massive, GLOBAL gun control scheme.

If passed by the UN and ratified by the U.S. Senate, the UN “Small Arms Treaty” would almost certainly FORCE the United States to:

*** Enact tougher licensing requirements, making law-abiding Americans cut through even more bureaucratic red tape just to own a firearm legally;

*** CONFISCATE and DESTROY ALL “unauthorized” civilian firearms (all firearms owned by the government are excluded, of course);

*** BAN the trade, sale and private ownership of ALL semi-automatic weapons;

*** Create an INTERNATIONAL gun registry, setting the stage for full-scale gun CONFISCATION.

I'm sure I don't have to tell you that this is NOT a fight we can afford to lose.

I’m helping lead the fight to defeat this radical treaty in the United States Senate and I want your help.

Please join me by taking a public stand AGAINST this outright assault on our national sovereignty by signing the Official Firearms Sovereignty Survey below!

For Freedom,

Rand Paul
U.S. Senator (R-KY)

Strangling of the Free Internet Begins

Matt Ryan
March 22, 2011

AT&T’s pending acquisition of T-Mobile USA has the tech world buzzing with various pros and cons of what this merging would mean for the consumer. Among the pros are the possibility of having a single mobile standard (4G LTE) and a market where phones aren’t restricted to a single carrier. The cons include having less choice between carriers and rate plans, millions of customers suddenly being subject to a more restricted terms of service, and the loss of what T-Mobile customers considered to be a much better overall customer experience.

What’s more troubling, are recent announcements by AT&T to begin capping the monthly usage and impose overage fees on their DSL and U-Verse customers. These customers were originally given a promise of unlimited usage by AT&T only to find an essential mode of communication is now restricted. In a sense, AT&T is forcing their customers to buy in to their cable and phone service to defer the bandwidth used by their online competitors, Skype, Hulu, Netflix, and others.

If you’ve spent time searching for an apartment in the U.S. over the past few years, you may have noticed complexes are beginning to sign contracts with service providers like AT&T, Time Warner, Comcast, and others that forbid their tenants from switching to any other provider than the one they’re under contract with. This deal is offered to landlords in exchange for either what amounts to a kickback or a mock coupon giving their tenants a small discount on service costs. In a sense, you’re subject to your carrier’s restrictive terms and conditions as long as you’re under lease. With some of these contracts, tenants are forced as part of the lease to purchase and maintain a cable and/or Internet service with the carrier. For many in small towns and rural communities where WiMax and other options are impossible, this means you are all but forced to use a carrier’s service, especially when a certain complex is all you can afford.

As we’ve covered here in the past, all signs point to an eventual collapse of the Internet as we know it today. With phone, cable, and web services provided by only a handful select single corporations, more and more Americans are essentially at the mercy of an elite few. AT&T has been in hot water before with privacy advocates, in particular their sharing of private information with the NSA. (Hepting v. AT&T)

This trend to restrict services is even more concerning when coupled with Google and other search engines moves to limit search ranking for news aggregates and other sites they deem to be a “content farm”. This determination is based on the “quality” of a site’s content as determined by the search engine.

Bandwidth is becoming cheaper to the provider, and more expensive for the consumer. This is a complete reverse from what we should expect from any technology-driven industry. In a market where choices are quickly becoming fewer and restrictions on our communication continue to become tighter, it’s becoming clear that communication is becoming both more restricted and more expensive.

Infowars Analysis:
Bottom line, a cocktail of attacks have been launched on the Internet and communication as a whole. The endgame is a transformed Internet run by monopolies that can control access to websites and content, ending the free web as we know it.

Glenn Beck's Shtick? Alex Jones Got There First

'He rips me off and spins the information, often injecting lies into the truth,' says Jones

Rolling Stone
By Alexander Zaitchik
March 4, 2011

So, is Alex Jones really the invisible senior writer of Beck’s TV and radio shows? If the below is any indication, the answer is “Yes.”

1. “Inside-Job” Terror
Alex Jones was the first 9/11 Truther. Two months before the attacks took place, in July of 2001, Jones warned that the U.S. government was planning to blow up the World Trade Center and blame Osama bin Laden. More recently, Jones and his websites have been sounding the alarm, based on mainstream press clippings, that the Obama Administration might find political gain in the tragedy of a “new Oklahoma City Bombing” or a 9/11-style attack. Jones had been making this argument for several months when Beck began to hit a very similar note shortly after the midterms last year. “They are setting up an Oklahoma City. They are claiming that one is coming and they’re already marked the one who caused it,” Beck said in November, referring to himself. Unlike Jones, however, Beck continues to harshly criticize those who entertain or believe similar actions could have occurred during the Bush Administration or past governments.

Scorecard: Rip-off and redirection. Beck takes a page from Jones in discussing state-sponsored terror, but twists it for use against Democrats — ignoring Jones’ more radical theory that both parties are historically capable of heinous acts against their own people.

2. Martial Law, Food Riots & Pentagon Planning for Domestic Unrest

For the past several years, Glenn Beck echoed Alex Jones on the Doomsday themes of looming economic disaster and subsequent societal collapse. What’s more, Beck often relies heavily on guests who first appeared on the Alex Jones Show to discuss the same topics. For example, on October 13, 2008, Beck discussed the “threat of martial law” with frequent Alex Jones guest and former Senate candidate Peter Schiff. During the same program, Beck went on to discuss what he considered “coercive” and “manufactured fear” — classic Jones themes. Similar echoes can be found on Beck’s website, The Blaze, which often cover subjects shortly after Jones, such as the Pentagon’s plans for civil unrest and a possible food crisis triggering martial law.

Scorecard: Beck is caught red-handed here — stealing ideas, language and guests. Incidentally, the more Beck has incorporated themes of social collapse into his show, the more his online advertising roster resembles that found on Jones’ site, which has featured survivalist gear and products for more than a decade.

3. New World Order & Global Currency

If any one term defines the career of Alex Jones, it is the New World Order. Beck, who used to make fun of N.W.O conspiracy, now covers it frequently and has incorporated the term into his show. This began while Beck was still on CNN. On Oct 9, 2008 he declared, “New world Order is the endgame.” That February, he hosted longtime Alex Jones guest Ron Paul on his Fox News show to discuss world government. He has also borrowed language from Jones when expressing his fears about the creation of a global currency and sterilants in the water.

Beck’s Scorecard:
The mother of all rip-offs by Beck. He again leans heavily on Jones’ trademark New World Order language, but deemphasizes or ignores the role played by corporations, which are prominent in Jones’ more sweeping critique.

4. Fabian Socialists, Eugenics and George Bernard Shaw
Alex Jones and his guests have long covered the history of eugenics, including the role of George Bernard Shaw, the playwright and unabashed eugenicist. Alex’s 2007 documentary film Endgame takes an in-depth look at Shaw, who has been discussed on-air many times, including here. In January, 2010, Glenn Beck’s documentary The Revolutionary Holocaust included the exact same clips of Shaw as those discussed or shown on The Alex Jones Show. Later, Beck would revisit the subject to link eugenics and Fabian Socialists to the London School of Economics and his favorite new target, George Soros.

Scorecard: Classic example of Beck stealing material from Jones and stripping it of context so as to better attack Beck’s progressive straw-men — in this case George Soros and other usual suspects found on Beck’s chalk board.

5. Egypt Revolution Staged Destabilization of Mideast Region
From the beginning of the recent unrest in Egypt, frequent Alex Jones guest Dr. Webster Tarpley was often on-air discussing the destabilization of Egypt and other nations in the region. In these interviews, Tarpley and Jones discussed the role of U.S., British and Israeli intelligence agencies in the creation and backing of the Muslim Brotherhood. Glenn Beck was soon on TV and the radio giving a similar explanation for the Egyptian protest, with one key and all-too typical twist: In Beck’s telling, it was a leftist-oriented and -inspired revolution led by the Muslim Brotherhood.

Scorecard: A textbook example of Beck echoing information recently aired on Jones’ show, but with the information narrowly deployed to provide ballast for Beck’s nakedly partisan politics.

6. Google Boycott & Google’s Ties to U.S. Government

Alex Jones has been calling out Google as a front and ally to the NSA and other U.S.- backed intelligence since at least 2006, when he had expert Robert Steele on to discuss Google’s founding and funding. Lately, in an offshoot of his theory regarding tumult in the Mideast, Beck has begun to blast Google’s ties to the government, as well as alleged leftist ties to the revolution. But he has not condemned systematic, universal spying and cataloguing of data by Google. This quickly drew Jones’ ire.

Scorecard: Once again, Beck seems to be taking a critique from Jones and reverse engineering it as a weapon to attack the left, ignoring its more sweeping condemnation of Google or its activities under both Republican and Democratic administrations.

7. The Google Bomb
On Feb. 3, 2011 Beck told viewers to search “caliphate.” They did, and the term went to No. 3 on Google Trends. Where did Beck get the idea? Likely its innovator, Alex Jones, who has initiated more than 50-60 Google Trends that have become #1 search terms.

Scorecard: Innovation begets imitation. Beck saw Jones’ successful Google Bombing initiatives and decided to borrow the idea to drive traffic to his own websites — where Beck’s fans can digest bastardized versions of theories and facts originally found on the Alex Jones Show.

VIDEO: The Banksters / Corrupt Government Scam Exposed Again

Thursday, March 17, 2011

VIDEO: We don't know the truth about Japan's nuclear disaster

Free Trade Zones…Or So We’re Told

By Tony Myrick
GCN Exclusive
March 17, 2011

According to Texas Representative Ron Paul, the Free Trade Zones are not what Americans are being told that they really are. These Free Trade Zones are really Foreign Trade Zones. Americans will shortly figure out that these Foreign Trade Zones are to be what motivates the global communist to make their move on the United States of America.

The goal of the “globalist communist” is to infiltrate the contiguous 48 states of American territory (including Alaska and Hawaii). All of our state governors have already approved and now have allocated many acres of land across the U.S.A. to be inhabited by Communist Chinese. These communist Chinese businessmen will bring along with them their fellow Chinese citizens to live on the various state land given to them by each of the state governors and by our federal government. The communist Chinese are to build their little cities with a city for the purpose of producing Chinese products for sale in the U.S.A. These cities within a city will be considered “Foreign territory.”
GCN Mobile Apps

There are now 257 of these little communist towns that are being build or will be built all over the United States of America. These towns or cities within a city are to be called “zones.” Most American citizens are told that the laws of the state where these Chinese communist live will apply to the communist Foreign Trade Zones (the FTZ) or so we believe?

You can go to the following web site and see what national and state officials have do to us.

The alert citizens of Boise, Idaho were shocked when they found almost 30,000 precious acres of their state have been taken away from them or set aside for these so-called Free Trade Zones, now known as Foreign Trade Zones. You may remember that earlier in 2011, the Communist Chinese came to Washington, D.C. where it was the first time American citizens have ever seen Communist Chinese flags flying all along the streets of our nations’ capital signaling the invasion of the United States of America by China with their Foreign Trade Zones has begun. And that’s the Truth!

Remember, fellow Americans, that truth has no friend and citizens of the United States of America have just lost their country.

Tony Myrick is a GCN listener who wanted to participate in our citizen journalist program. You too can try your hand at writing, by sending submissions to the GCN News Editor at

Sunday, March 13, 2011

VIDEO: US Caught In A Web Hypocrisy When It Comes To Internet Freedom

New York man faces five years in jail for ‘linking’ to online videos

Raw Story
By David Edwards
March 10, 2011

You may want to think twice the next time you share a link to your favorite video.

In a case against a New York website owner, the Department of Homeland Security (DHS) is claiming that merely linking to copyrighted material is a crime.

DHS, along with Immigration and Customs Enforcement (ICE), seized Brian McCarthy's domain,, in late January. The site has now been replaced with a government warning: "This domain has been seized by ICE - Homeland Security Investigations, Special Agent in Charge, New York Office."

"It is unlawful to reproduce copyrighted material, such as movies, music, software or games, without authorization... First-time offenders convicted of a criminal felony copyright law will face up to five years in federal prison, restitution, forfeiture and fine."

The advocacy group Demand Progress has claimed that McCarthy never reproduced copyrighted material, and that his website simply linked to other sites.

A criminal complaint obtained by the group seems to acknowledge that agents knew that McCarthy was running a "linking website."

"Based on my participation in the investigation leading to the February 2011 Seizure, I know that was a 'linking' website," special agent Daniel Brazier wrote in the complaint.

"Based on my training and experience, I know that 'linking' websites generally collect and catalog links to files on third party websites that contain illegal copies of copyrighted content, including sporting events and Pay-Per-View events," he added.

The special agent detailed 17 copyrighted sports programs he was able to watch when he "clicked on links" at

While the criminal complaint alleges that McCarthy did engage in the "reproduction and distribution" of copyrighted material, it is never clear that he actually reproduced any of the specified broadcasts.

"Under that sort of thinking, everyone who's sent around a link to a copyrighted YouTube video is a criminal," Demand Progress warned, calling the prosecution a "radical shift" in the way the government polices the Internet.

The Phoenix Independent Examiner's Chris Greenwood expressed concern about what the case meant for freedom of expression on the Internet.

"You see, when you shut down the last truly free medium that absolutely anyone can use to call for justice, freedom, or democracy where they don’t exist, you leave the communication to the wealthy, who can afford the ad space in print media and air time on television and radio," he wrote.

"Bryan McCarthy is being used as an example," Greenwood added. "Someone who possesses no copyright material, broadcasts no copyrighted material and duplicates no copyrighted material is being held by authorities because he has a site that indicates to people that there are people who are possessing, duplicating and reproducing potentially copyrighted material for others to watch."

VIDEO: Bob Chapman's Friday Report 3/11/11, Fed Monetisation is a Political Power Tool

High Energy Prices Are Obama’s ‘Explicit Policy Goal,’ Inhofe Says

By Christopher Neefus
March 10, 2010

( – A prominent GOP senator on energy issues accused President Barack Obama Thursday morning of having set an “explicit policy goal” of making energy prices more costly for Americans.

“My message today is simply this: higher gas prices - indeed, higher prices for the energy we use - are an explicit policy goal of the Obama administration,” said Sen. James Inhofe (R-Okla), ranking member of the Senate Environment and Public Works Committee. “Let me put it another way: the Obama administration is attacking affordable energy.”

Inhofe’s comments come as crude oil futures traded up on anxiety over unrest in the Middle East and broke the triple-digit mark in recent weeks. As of Thursday, light crude was trading at over $101 per barrel.

“We have, in fact, 163 billion barrels of recoverable oil - nearly six times higher than what President Obama and the Democrats like to claim,” Inhofe continued. “Let's think about 163 billion barrels for a moment: that is enough to maintain our current levels of production and replace our imports from the Persian Gulf for more than 50 years.”

The senator, who regularly rails against the Obama administration’s support of so-called “cap-and-trade” legislation, said such policies are about starving the country of energy supply.

“You see, the cap-and-trade agenda is also about energy austerity,” Inhofe said on the Senate floor. “The hope is that if we restrict enough supply, the price will increase, and we can then simply shift to less costly alternatives. Yet this is wishful thinking.”

“If you think $4.00 is too much for a gallon of regular, fasten your seat belts.”

Inhofe made the speech in support of the Energy Tax Prevention Act, legislation designed to bar the Environmental Protection Agency from moving to regulate carbon dioxide emissions under the Clean Air Act, which Republicans claim is outside the agency’s purview. After he introduced the bill last week, it quickly picked up 42 more co-sponsors, including Democrat Joe Manchin (W.Va.).

Friday, March 11, 2011

German Physicist Slams Climate Science, Says “Climate Politics Is Grand Déjà Vu Of Communist East Germany”

P Gosselin
March 11, 2011

Prof. Knut Löschke, a solid state physicist, who conducted research until 1986, founded PC-Ware AG, and then turned it into a European IT company before leaving in 2009, had some harsh words about climate science and policy in an interview with the magazine Smart Investor.

This is reported in the German realist blog Ökowatch. Dr. Löschke:

What is happening with regards to the climate hypothesis today is that profound and far-reaching conclusions are being based on pure suspicions. That’s religion, and not science. There are also many other well-founded hypotheses on climate dynamics that allow completely other conclusions to be drawn. But strangely, they are being massively suppressed – simply because they don’t accommodate the political concept of rescuing the planet. That’s propaganda, manipulation, suppression of the freedom of expression and demagoguery. As ‘an educated citizen of former communist East Germany’, I’m experiencing grand déjà-vu.”

Today Löschke is also honorary professor at the Leipzig Technical University, a member of the supervisory board of the Deutsche Bahn AG (German Railway) and a board member of Softline AG. In the interview with Smart Investor he added:

Rescuing the climate – which is absolute nonsense – and the discussion about energy systems and energy policy, which is absolutely necessary, are unfortunately all getting thrown into one pot and mixed into a formless slop. Moreover, environmental protection is getting lumped with ‘climate protection’, which in turn is only harming the correct idea of environmental protection. Not only does the German Railway (Deutsche Bundesbahn) have to preoccupy itself with the topic of energy, but so do many other large energy consumers. Not in relation to “climate”, but in relation to economics and environmental protection.”

Smart Investor can be ordered in a printed edition here:

Wednesday, March 9, 2011

Soros: Communist Chinese Model Of Order May Become “The Envy Of The World”

“Western democracies provide less successful leadership than China”

Steve Watson
March 9, 2011

Billionaire investor George Soros has once again cited China’s dictatorship as the model for the rest of the world in a speech at an elite gathering in Europe.

Soros told the exclusive Travellers Club, that “China’s model of state capitalism, in which the interests of the individual are subordinated to those of the government, poses a danger if its example becomes“the envy of the world.”

“Perfect order and global governance are not realistic expectations.” Soros was reported to have said at the elite gentleman’s meeting in Paris.

“However, it is a sad fact that Western democracies provide less successful leadership than China.” he continued.

Soros is clearly imagining a world in which freedom has all but vanished, given that he believes anyone in Europe or the US could ever envy life in China.

Soros has repeatedly stated that he sees China as the model for a new financial world order, replacing the U.S., slowing economic growth and reducing living standards.

Soros has characterized the United States as a drag on the global economy because of the declining dollar, adding that a new global currency is required in the form of IMF special drawing rights – paper bonds printed by the global regulatory body.

He has also described gold as “the ultimate bubble”, advising against investing in it, while privately doubling his own gold holdings.

Soros is on a speaking tour of Europe promoting the European Council on Foreign Relations, which advocates a move toward global financial regulation and further integration within the European Union. He was a founding member of the elite globalist group.

“The world does need order, and that order needs maintenance.” Soros further told the Traveller’s Club. “The idea that markets can correct their excesses turned out to be false.” he said in an open attack on the free market.

Soros also spoke of a need for Europe to defend it’s single currency and re-order its financial structure “across borders”. He said the EU should be granted the power to “supervise and protect the banking system”, and “also to guarantee banks that become insolvent”.

Soros pointed to a difficulty in seeing this brand of economic globalism come to fruition, because of increased resistance.

“The authors of the euro knew that it was an incomplete construction,” Soros said. “They could be confident that when deficiencies became apparent, the political will would be there to overcome them. Now, political will is difficult to summon.” he said.


Steve Watson is the London based writer and editor for Alex Jones’, and He has a Masters Degree in International Relations from the School of Politics at The University of Nottingham in England.

VIDEO: Obamacare Will Break The Country

VIDEO: Currupt Empire 3/9/11

Tuesday, March 8, 2011

VIDEO: Alex Jones Tv. Max Keiser: The Wall Street Plantation

We’re All North Koreans Now: ‘Era of Constant Electricity at Home is Ending, says UK power chief’

Willis Eschenbach
Watts Up With That?
March 7, 2011

I guess having electricity when you need it is sooooo last century … UK families will have to get used to “only using power when it was available”. That constant electricity at home was dangerous anyhow, the unending hum of the wires can drive a man so insane that the only way to cure him is to make him head of the National Grid …

VIDEO: The Max Keiser Report 3/8/11. More Financial Terrorism News!

VIDEO: Hired Rebels And Civil War Part Of Globalists Lybian Destabilization Plan

VIDEO: Peter Schiff Cuts Dick Morris Down To Size

Monday, March 7, 2011

VIDEO: Secret Prisions And Indefinite Detention In America

VIDEO: Ron Paul On The Fall Of The Federal Empire

Hapless Players in History’s Trilogy of Global Government

America 20xy
By Andrew Steele

In the early days of the Egyptian uprising activists from all over the world sat on the edge of their seats, wanting to believe that the angry men and women that they saw on their TV and laptop screens were not simply unwitting players in the globalists’ real life game of Risk– where manipulation, espionage, and sophisticated propaganda take the place of dice rolls in the battle for territorial control– but rather organically grown freedom fighters who had had enough of what they were getting. Caught up in the hope that it could be the first domino to fall in the successful battle against global tyranny, much of the world demanded that President Mubarak step down, many looking to 1776 as the inevitable outcome of the revolution, overlooking the long list of other revolutions in history that have led to even worse regimes taking power than the ones that were deposed.

After the leadership of Saudi Arabia– another country where uprisings are now taking place– told President Obama that they would financially support Mubarak if the U.S. withdrew its own, Mubarak defiantly refused to step down, claiming that he “cannot and will not accept to be dictated orders from outside” .

However, Mubarak suddenly and inexplicably had a change of heart. Shortly after his infamous speech he relinquished power to his freshly appointed VP– Omar Suleiman, the former head of intelligence who sanctioned the use of torture on his own citizens, and who, when interviewed, blamed the uprising on ”foreign operatives with their own agendas whose objective was to create instability, intimidation and rift between Egyptians.”

People cheered. Pundits on TV once again praised “democracy” as if the word equated to liberty. Bloggers squealed with glee at the exercise of “people power” against the U.S. puppet regime. Yet in the days that followed the supposed victory of the Egyptian people, the military took total control, the parliament was dissolved, and the constitution was suspended.

Now, other uprisings are happening around the Middle East, including in Iran, whose government the United States has been trying for years to overthrow, even supporting known terrorist groups in order to do so. In the aftermath of the Egyptian Revolution the U.S. has quietly sent warships to the Suez Canal (after having sent 11 warships back in June in response to a Gaza bound Iranian aid flotilla) while Israel has screamed about Iran doing the same, with war hawks in Israel and the U.S. claiming it to be an aggressive move on Iran’s part rather than a strategic act of national security in the face of a series of world events that, (it’s becoming more clear), aren’t all they’re cracked up to be.

While the uprising in Egypt flared the Telegraph published a document from the U.S. Embassy in Cairo that revealed that the U.S. was secretly backing the protests. As the U.S. government and military prepared an Internet kill switch for its citizens to protect them from free speech and exaggerated cyber threats, they righteously demanded that Mubarak keep Egypt’s Internet going so that freedom could ring through the Tweets of his people. During this time, the fake conservative media fear-mongered over a possible power vacuum in Egypt and threats to the Egypt’s peace treaty with Israel if so-called fundamentalists like the Muslim Brotherhood started running the show there.

Issues like rising commodity prices no doubt were the fuel burning the revolutionary spirits of the young people who took to the streets in Egypt, but was it Egyptians who ignited that fuel? As the dollar weakens, it doesn’t take much economic savvy to realize that the prices of commodities will increase due to the dollar’s reserve status, and that this will cause understandable social upheaval, first in poorer countries, and then inevitably in supposedly wealthy, (however bankrupt) ones. The narrative that the intelligence community never saw the current uprisings coming provides a convenient and over-simplified cover for allowing a situation that ordinary people predicted years in advance to happen, and like 9/11 seems to cloak a sophisticated web of geopolitics with a blanket of alleged incompetence to hide willful participation.

Whether the protests in Egypt and now in other nations began organically and were hijacked by skilled intelligence operatives, or were started by Western intelligence agencies ahead of the projected fallout of the Fed’s quantitative easing, they are now being used as an excuse for strongmen, Western backed and otherwise, to tighten the chains around the necks of their people and for the U.S. and Israel to justify a firmer footing in the region, including beating the same drum against Iran that they’ve been beating for years.

The Islamic boogeyman is alive and well in the words of war-mongering propagandists, given fresh life by the chaos of rebellion. And while the revolutions abroad conveniently give neocons an excuse to talk about further expanding the U.S. military’s reach overseas, they also provide an easy scapegoat, superficially explaining why commodities like food and oil will continue to become more expensive. Already, trouble in the Suez Canal is being cited as cause for why we’ll have to pay more for gas. The fact that commodity prices were rising even before the uprisings occurred means very little in the dizzying world of political spin…as long as it sounds good and people buy it. Ben Bernanke would have the public believe that the Fed’s haphazard money printing and the dollar’s reserve currency status has no effect on the current reality of commodity inflation and that events like those in Egypt were the cause of higher prices rather than just another result…assuming they weren’t staged to begin with.

The notion that the United States is behind the overthrow of the Egyptian government is a very real and very probable possibility. It is also not without precedent, since the United States has overthrown many foreign governments in the past. The Suez Canal is a strategic waterway and choking off China and Russia, among other nations, from it would allow the globalists to poke an entire den of bears and incite the next great conflict…the kind that we’re taught in school allegedly got us out of the last Great Depression and led to the creation of the U.N.

What we’re witnessing is the same problem-reaction-solution dynamic that we’ve witnessed throughout history. If Americans don’t look at the deeper politics at work happening before them, and look past the latest mosaic of tyranny disguised as freedom in the form of sudden uprisings against governments that happen to be standing under the geographical archway of the New World Order, then they’re going to find themselves caught in a situation like the Egyptians find themselves in– hapless players in the final chapter of history’s trilogy of global chaos and growing world government, unable to see reality for what it is until the smoke clears and their world has drastically changed around them.

Sunday, March 6, 2011

The Perfidy of Government: Evidence v. Denial

Paul Craig Roberts
March 2, 2011

This essay is about three recent books that explain how we lost our economy, the Constitution and our civil liberties, and how peace lost out to war.

Matt Taibbi is the best — certainly the most entertaining — financial/political reporter in the country. There is no better book than Griftopia (2010) to which to turn to understand how stupidity, greed, and criminality, spread evenly among policymakers and Wall Street, created the financial crisis that has left Americans overburdened with both private and public debt. Taibbi walks the reader through the fraudulent financial instruments that littered the American, British, and European financial communities with toxic waste. He has figured it all out, and what in other hands might be an arcane account for MBAs is, in Taibbi’s hands, a highly readable and entertaining story.

For the first 65 pages, Taibbi entertains the reader with the inability of the public and politicians to focus on any reality. The financial story begins on page 65 with Fed chairman Alan Greenspan undermining the Glass-Steagall Act leading to its repeal by three political stooges, Gramm-Leach-Bliley. This set the stage for the banksters to leverage debt upon debt until the house of cards collapsed. When Brooksley Born, head of the Commodity Futures Trading Commission, attempted to do her regulatory job and regulate derivatives, the Federal Reserve, Treasury, and Securities and Exchange Commission got her bounced out of office. To make certain that no other regulator could protect the financial system and its participants from what was coming, Congress deregulated the derivatives markets by passing the Commodity Futures Modernization Act.

As an Ayn Randian mentality of a self-regulating private sector crowded out prudence, the media cheered. Taibbi captures the era in a sentence: “In was in the immediate wake of all these historically disastrous moves — printing 1.7 trillion new dollars in the middle of a massive stock bubble, dismantling the Glass-Steagall Act, deregulating the derivatives market, blowing off his regulatory authority in the middle of an era of rampant fraud — that Greenspan was upheld by the mainstream financial and political press as a hero of almost Caesarian nature. In February 1999, Time magazine put him on the cover.”

Mortgage securitization allows lenders such as banks to issue mortgages that can be sold to third parties. Instead of making money from the interest from mortgages in its portfolio, the bank issues mortgages for a fee and sells the mortgages. The mortgages are then combined with mortgages sold by other lenders and resold to investors. This development resulted in lenders being less interested in the credit-worthiness of borrowers.

In order to assure investors about credit-worthiness and to appeal to risk-tolerant hedge funds, the next development was to take a pool of mortgages of varying credit-worthiness and to organize them into three tranches. The mortgages were separated into AAA, B grade, and high-risk stuff. The triple A tranche could be sold to pension funds and institutional investors. Hedge funds would take the high-risk tranche for the high-interest rate that they offered, intending to get rid of the mortgages before they had time to go bad. The middle tranche was the one hard to sell. The interest rate on the B-grade tranche was not high enough to appeal to hedge funds, and pension funds were restricted to investment grade.

So what did the banks do? Well, they lumped together all the B-grade tranches and started the process all over. The best of the lot were turned into — you guessed it — AAA, then came the B grade, and then the worst of the lot became the third tranche. And then the process was repeated.

This was bad enough, but even worse was happening. Many of the triple A and B grade mortgages had that rating only because of fraudulent credit scores and rating agencies assigning investment grade ratings to lower grade mortgages. Everyone was focused on short-term profits, from the lenders who churned out mortgages for fees to hedge funds that had no intention of holding the high-risk tranches beyond the short-run. You can see how toxic waste was spread throughout the financial system.

Then it became possible to “insure” the AAA mortgages (many of which were not AAA). Once this happened, financial institutions that were required to maintain reserves against deposits or to capitalize obligations, such as insurance policies, could now substitute higher-paying mortgage derivatives for U.S. Treasury notes and still meet their reserve requirements for a ready cash reserve. Treasury notes are so liquid that they are considered the equivalent of cash, and insured AAA-securitized mortgages acquired similar status.

AIG became the big provider of “insurance” in an operation run by Joe Cassano. Cassano’s “insurance” product is called a credit default swap. It is not insurance, because AIG did not set aside capital to pay any claims. And claims there would be. Not only were the AAA mortgages that were being insured littered with toxic waste, investment banks and hedge funds could purchase swaps against mortgages that they did not even own. As Taibbi puts it, people were gambling in a casino in which gamblers did not have to cover their bets or own the financial instruments that they were insuring.

While Cassano was collecting fees for bets that he could not cover, Win Neuger on the other side of AIG was lending the insurance giant’s long-term portfolio of sound investments to short-sellers for a fee.

Short-selling works like this: A short-seller thinks a company’s stock price is going to fall in value. He borrows the stock from AIG by putting up collateral equal to its market price the day the stock is borrowed plus a small fee, sells the stock, pockets the money and waits for the stock to fall. If his hunch or inside information is correct, and the stock falls in value, he buys the stock and returns it to AIG, pocketing the difference in the two prices.

Normally, people who lend stock to short-sellers are content with the fee and with the interest on the collateral (cash) invested in safe instruments like Treasury bills. The lender of the stock cannot take any risk with the cash collateral, because the cash must be returned to the short-seller when he returns the borrowed stock.

Once, however, toxic waste got AAA ratings plus insurance from Cassano, higher-paying insured investment grade toxic waste could displace of US Treasuries as a place for Neuger to hold the short-sellers’ collateral. You can see the untenable position into which Cassano and Neuger put AIG.

Enter Goldman Sachs as a buyer of swaps from Cassano and a borrower of stocks from Neuger. Once the real estate bubble that the crazed Federal Reserve had caused popped, all the fraud that had been disguised by rising real estate prices appeared in its naked glory. AIG couldn’t cover Cassano’s swaps, and it could not return the collateral to short-sellers that Neuger had invested, unknowingly, in toxic waste.

This was the origin of the TARP bailout, which was perceived by Goldman Sachs (whose former executives, as Taibbi relates, controlled the U.S. Treasury, financial regulatory agencies, and the Federal Reserve) as an opportunity not merely to have U.S. taxpayers make good on its exploitation of AIG, but also to fund with free capital supplied by hapless taxpayers more money-making opportunities for “banks too big to fail.”

As Taibbi shows, Goldman Sachs had yet more ruin to bring to Americans. Goldman Sachs managed to get the position limits that regulation imposed on speculators in order to prevent speculation from taking over commodity markets (for example, grains, metals, and oil) secretly repealed. This allowed Goldman Sachs to create a new product, index speculation, which brought hundreds of billions into commodities markets and drove up the price of gasoline in 2008 to $4.50 per gallon despite the fact that there was no change in supply or consumer demand. It was entirely a profit rip-off from speculation in oil futures contracts.

From here on Taibbi’s book really rolls. If the U.S. had a media worthy of the name, instead of mere shills for private oligarchs and propagandists for government, Matt Taibbi would be the editor of an independent Wall Street Journal with a regiment of investigative reporters. Then Americans would have a prospect of reclaiming their country and their economy.

Charlie Savage is a summa cum laude graduate of Harvard with a Master’s degree in law from Yale. As a Boston Globe reporter, he documented the destruction of U.S. civil liberties and the constitutional separation of powers as they occurred during the reign of the 43rd president of the United States. Savage draws on this disillusioning experience to give us another important book, Takeover (2007). Savage documents completely how American civil liberty was destroyed by Dick Cheney and the traitors he was able to place in key positions in the Bush regime.

President George Bush, an inconsequential person, gloried in the increase in his power that the Cheney forces and the Federalist Society achieved by a fabricated doctrine of “inherent power” that allegedly resides in the presidency. This power, its tyrannical advocates assert, places the President above Congress, the Judiciary, and the law itself during times of war. The advocates of this doctrine used war to advance their claims, but actually believe that the President, as long as he is a Republican, is, in fact, a Caesar who is unaccountable.

Savage is a clear, masterful writer. He shows that the Bush/Cheney traitors have left Americans with an executive branch that is unaccountable to statutory law, treaties, international law such as the Geneva Conventions, and Congress. What one reads in Takeover is not opinion but documented fact. There is no better way for gullible flag-waving Americans to sober up than to read Takeover.

Anyone who has any remaining faith in the U.S. government after reading the Taibbi and Savage books will lose it completely when they read James W. Douglass’ JFK And The Unspeakable (2008). Douglass’ book is more gripping than the best thriller or murder mystery; yet, it is based on hard evidence documented in 100 pages of footnotes. Douglass presents the solution to the greatest murder mystery of the 20th century — that of President John F. Kennedy.

Douglass is not the first to take on this task. Millions of people in the U.S. and abroad have been convinced by years of investigation by many competent researchers that President Kennedy was murdered by his own government. What differentiates Douglass book is that he proves it several times over with official government documents that have been declassified in the years that have passed, with personal and careful interviews with eye-witnesses whose testimony was excluded from the Warren Commission’s report and whose mouths where shut by threats that silenced them into old age when they had nothing left to lose, and with circumstantial evidence that is so overwhelming that it could not be a mere coincidence.

In brief, JFK, who began political life as a cold warrior was brought face-to-face with reality in the Cuban missile crisis when the U.S. military insisted that the crisis be resolved by military attack on Cuba and a first-strike nuclear attack on the Soviet Union. Kennedy found his intelligence and humanity isolated within his own government and turned via back channels to Soviet leader Khrushchev for help.

Khrushchev sensed sincerity in JFK’s plea and withdrew the Soviet nuclear missiles from Cuba in exchange for Kennedy’s promise that the US would not invade Cuba. Kennedy added the promise to remove U.S. strategic missiles from Turkey in six months but not as a public part of the deal.

The U.S. Joint Chiefs of Staff, the CIA, and even the Secret Service entrusted with the protection of the president concluded that JFK was soft on communism and a national security threat.

Kennedy had not gone along with the Bay of Pigs invasion of Cuba, calling off the U.S. air support. He had nixed the Operation Northwoods project conceived by the Joint Chiefs of Staff to conduct black ops terrorist operations against American citizens in Miami and Washington D.C., to hijack and shoot down American airliners (“real and simulated”), to strafe and bomb Cuban refugee ships headed for Florida and to blame it all on Castro in order to create public support for “regime change” in Cuba.

When Kennedy signed the nuclear test ban treaty with Khrushchev, it brought him more condemnation from within his own government. In the eyes of the Joint Chiefs, the CIA, and the Secret Service, America had a national security risk in the White House who was selling out the country to Soviet deceptiveness.

The decision was made to eliminate the security risk. Douglass presents in fascinating detail every inch of the story. I can’t reproduce it here. Suffice it to say that Oswald was on both the CIA and FBI payrolls. He was set up as the patsy without realizing it until he was in the Dallas jail where he was shot by Jack Ruby, another CIA asset.

The FBI at headquarters level was not part of the plot, although local offices were infiltrated by the CIA. The CIA had set the assassination up so that the patsy, Oswald, was linked to a KGB assassin and to Castro. The goal was to use Kennedy’s murder to enrage the American public and to attack Cuba and the Soviet Union. I know, it sounds to naive Americans like a far-fetched conspiracy theory, but I have never seen a better proven case.

After JFK’s assassination, J. Edgar Hoover clued in Lyndon Johnson that the linkages of Oswald to the KGB and Cuba were fabricated by the CIA.

The problem for President Johnson was that the CIA had assassinated Kennedy in a manner that was too transparent. The CIA had overdone its setup of Oswald, for example, to the point that it was transparently a CIA operation.

What to do? If Johnson ordered the arrest of the CIA operatives responsible, the responsibility rose high up into the ranks. What would be the effect on the American public during a difficult time of the cold war if they learned that they could not trust their own government not to murder their own president? In addition, liberals were concerned that if the truth came out, Americans’ trust in their government would evaporate. Heaven forbid!

Johnson made the decision to cover up the crime and that was the task assigned to the Warren Commission.

J. Edgar Hoover knew the truth, but went along with the cover-up.

Johnson and Earl Warren were thinking short-run and did not understand the unintended consequences of the cover-up. They thought that by blaming Oswald as a lone deranged assassin, that they had done service by eliminating the CIA plot to implicate Cuba and the Soviet Union. Johnson did not realize that he had handed the U.S. government over to the CIA, and that he would soon be involved in an escalating war in Vietnam — a war that JFK had ordered wound down — which would deny him a second term.

Evidence continues to pile up that the Warren Commission covered up JFK’s murder by a conspiracy within the U.S. government. In his multi-volume, Inside The Assassination Records Review Board, Douglas P. Horne, Chief Analyst for Military Records, Assassination Records Review Board, provides voluminous incontrovertible evidence that fraud was introduced into the autopsy reports that served as the basis for the Warren Commission’s conclusion that JFK was shot from behind by a lone gunman.

Out of JFK’s assassination came Robert Kennedy’s assassination, the Oklahoma City bombing, Waco, and 9/11.

Niels Harrit, a professor of nano-chemistry at the University of Copenhagen, together with U.S. physicists and engineers published a paper in the Open Chemical Physics Journal in 2009 that proves that nano-thermite was used to bring down the World Trade Center towers.

In the U.S. this startling finding is unreported except on 9/11 truth sites. The researchers say that in the dust from the World Trade Towers destruction they found unreacted nano-thermite, some of which they tested to confirm their identification. The researchers say that they have enough of the unreacted nano-thermite left for others to examine.

There have been no takers in America. Not a single U.S. physics department, most of which are totally dependent on federal government grants, will touch the subject.

The campaign that has been organized against the finding of Harrit and his associates is that the dust has not been in certified custody, and the explosive material could have been added. This claim overlooks that nano-thermite is a material that is not available to anyone except the U.S. military.

In America today the financial press says we cannot believe Taibbi. Law professors hoping for elevation to the federal bench say we cannot believe Savage. The mainstream media and some left-wing Internet sites say we can’t believe Douglass.

It is in this disbelief of hard evidence that America is dissolving.

Dr. Paul Craig Roberts is the father of Reaganomics and the former head of policy at the Department of Treasury. He is a columnist and was previously the editor of the Wall Street Journal. His latest book, “How the Economy Was Lost: The War of the Worlds,” details why America is disintegrating.

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