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Saturday, June 27, 2009

Ron Paul: Obama’s ‘goal’ is economic collapse



By David Edwards and Stephen Webster

Published: June 23, 2009


Ron Paul, the popular Republican Congressman from Texas, is ripping into the president and Congress for what he sees as their “goal” with round after round of stimulus: complete economic collapse.
“From their spending habits, an economic collapse seems to be the goal of Congress and this administration,” he said in his June 22, 2009, weekly address.
He added that Democrats who voted for the president’s war funding request, which gave an additional $106 billion to military operations in Afghanistan and Iraq — among other, unrelated items — were actually voting in favor of the wars, not just authorization of the president’s agenda.
He called it an affront to everyone who believed a vote for Obama was a vote for a peace candidate.
The president’s insistence on including an additional $108 billion in asset exchange with the International Monetary Fund is merely “buying global oppression,” he said.
Paul added that, “this [bill sent] $660 million to Gaza, $555 million to Israel, $310 million to Egypt, $300 million to Jordan and $420 million to Mexico; and some $889 million will be sent to the United Nations for so-called peace keeping missions.”
In other words, the latest U.S. war funding was an “International bailout,” he said.
The legislation’s provisions for the IMF included 100 billion dollars for the New Arrangements to Borrow (NAB), a credit instrument providing the multilateral institution with additional resources to deal with exceptional risks to the stability of the international monetary system.
They also include an expansion of the nation’s special drawing rights by five billion SDRs, adding roughly eight billion dollars to the IMF’s financial firepower.
The 100 billion dollars for the NAB acts as a credit line for the IMF in case member countries need emergency loans that exceed the institution’s resources. As such, the money is not considered an immediate budget expense.
Sen. Jim DeMint (R-SC) had proposed to strip out the IMF funds, but his measure was defeated in May by a vote of 64-30.
“Not only does sending money to the IMF hurt citizens here, evidence shows that it even hurts those it pretends to help,” Paul said. “Along with IMF loans come IMF required policy changes called ’structural adjustment programs,’ which amount to forced Keynesianism. This is the very fantasy-infused economic model that brought our own country to its knees.”
This audio is from Congressman Ron Paul’s weekly address, released June 22, 2009.

Download video via RawReplay.com

http://rawstory.com/08/news/2009/06/23/ron-paul-obamas-goal-is-economic-collapse/

Obama contemplates Executive Order for detention without charges

updated below - Update II)
When Obama first unveiled his "preventive detention" policy, many defenders praised him (and claimed he was different than Bush) because of his vow that -- as he put it -- "my Administration will work with Congress to develop an appropriate legal regime." But now, relying exclusively on three Obama officials speaking behind a veil of anonymity, Peter Finn and Dafner Linza of The Washington Post and ProPublica report that the White House is "crafting language for an executive order that would reassert presidential authority to incarcerate terrorism suspects indefinitely." TPM calls this "the latest installment in the Obama administration's tendency to mimic the Bushies on war on terror tactics." And the article itself points out the obvious: "Such an order would embrace claims by former president George W. Bush that certain people can be detained without trial for long periods under the laws of war." Revealingly, the article quotes two Bush national security officials justifying the need for detention without charges.
Anonymous trial balloon articles like this one are difficult to comment on because it's obviously designed to announce that a certain policy is being considered before it's actually written, and so none of the key details is known. Would Obama's new detention powers apply only to current "War on Terror" prisoners at places like Guantanamo and Bagram, or would they also apply to future, not-yet-abducted detainees as well? Would these powers apply to detainees picked up anywhere in the world, far away from "war zones"? Would there be any judicial review or other meaningful oversight provisions so that -- even in theory -- this was something other than the unilateral, unchecked presidential power to detain indefinitely without charges? None of these important details is known (though the article notes that, under one White House proposal, "ongoing detention would be subject to annual presidential review"; the Emperor, sitting alone, will decree once a year whether they must remain in a cage).
This specific article is even worse than the usual one of its type, since it's particularly uncritical in passing along administration claims without any skepticism (I addressed each of the "justifications" for Obama's preventive detention proposal -- Obama has to do this because of what Bush did; we can't get convictions because of Bush's torture; it's common in War to do things like this, etc. etc. -- here). Worse, the article does not provide any information about the Obama officials whose mission the reporters are dutifully carrying out, so there's no way to assess their motives.
Those journalistic practices produce egregious sentences like this: "'Civil liberties groups have encouraged the administration, that if a prolonged detention system were to be sought, to do it through executive order', the official said." I'd love to know which so-called "civil liberties groups" are pushing the White House for an Executive Order establishing the power of indefinite detention. It's certainly not the ACLU or Center for Constitutional Rights, both of which issued statements vehemently condemning the proposal (ACLU's Anthony Romero: "If President Obama issues an executive order authorizing indefinite detention, he’ll be repeating the same mistakes of George Bush").
All of that said, we already know that Obama wants a system of preventive detention without charges -- because he said so explicitly in last month's "civil liberties" speech ironically and cynically delivered in front of the U.S. Constitution at the National Archives. And it's hard to imagine how he won't get what he wants: Republicans are eager to grant the President this detention authority (Sens. Tom Coburn and Lindsey Graham have both gushingly praised Obama's proposal) and, as the Bush era proved, there are always more than enough Congressional Democrats to join with the GOP caucus to enact any new system of expanded detention and surveillance powers. Absent serious public opposition (and one recent poll shows overwhelming opposition), it seems highly likely that Barack Obama will wield the power to imprison people indefinitely without charges of any kind.
* * * * *
There is one point in particular I really want to highlight about all of this:
There has now emerged a very clear -- and very disturbing -- pattern whereby Obama is willing to use legal mechanisms and recognize the authority of other branches only if he's assured that he'll get the outcome he wants. If he can't get what he wants from those processes, he'll just assert Bush-like unilateral powers to bypass those processes and do what he wants anyway. In other words, what distinguishes Obama from the first-term Bush is that Obama is willing to indulge the charade that Congress, the courts and the rule of law have some role to play in political outcomes as long as they give him the power he wants. But where those processes impede Obama's will, he'll just bypass them and assert the unilateral power to do what he wants anyway (by contrast, the first-term Bush was unwilling to go to Congress to get expanded powers even where Congress was eager to give them to him; the second-term Bush, like Obama, was willing to allow Congress to endorse his radical proposals: hence, the Military Commissions Act, the Protect America Act, the FISA Amendments Act, etc.).
That, for instance, is the precise pattern that's driving his suppression of torture photos. Two federal courts ordered the President to release the photos under the 40-year-old Freedom of Information Act. Not wanting to abide by that decision, the White House (using Lindsey Graham and Joe Lieberman) tried to pressure Congress to enact new legislation vesting the administration with the power to override FOIA. When House progressives blocked that bill, the White House assured Lieberman and Graham that Obama would simply use an Executive Order to decree the photos "classified" (when they are plainly nothing of the sort) and thus block their release anyway. In other words:
We'll go to court and work with Congress so we can pretend that we're not like those bad people in the last administration, but if we don't get what we want by doing that, we'll just do it anyway through unilateral Presidential action, using the theories that the last administration so helpfully left behind and which we've been aggressively defending in court.
This was also the mentality that shaped Obama's "civil liberties" speech generally and his "prolonged detention" policy specifically. In that speech, Obama movingly assured us that some of the Guantanamo detainees will be tried in a real court -- i.e., only those the DOJ is certain ahead of time they can convict. For those about whom there's uncertainty, he's going to create new military commissions to make it easier to obtain convictions, and then try some of the detainees there -- i.e., only those they are certain ahead of time they can convict there. For the rest -- meaning those about whom Obama can't be certain he'll get the outcome he wants in a judicial proceeding or military commission -- he'll just keep them locked up anyway. In other words, he'll indulge the charade that people he wants to keep in a cage are entitled to some process (a real court or military commissions) only where he knows in advance he will get what he wants; where he doesn't know that, he'll bypass those pretty processes and assert the unilateral right to keep them imprisoned anyway.
A government that will give you a trial before imprisoning you only where it knows ahead of time it will win -- and, where it doesn't know that, will just imprison you without a trial -- isn't a government that believes in due process. It's one that believes in show trials.
And here again, with this Executive Order proposal, we see this same mentality at play. According to the Post article, one motive behind the Executive Order is that "White House officials are increasingly worried that reaching quick agreement with Congress on a new detention system may be impossible." In other words: we'll be happy to work with Congress as long as they give us what we want; if they don't, we'll just do it anyway using unilateral presidential powers. It's certainly possible -- in fact, I'd say it's likely -- that if Congress passes a preventive detention law, it will be even more Draconian than the one Obama wants. But a President who recognizes Congressional authority only when he likes the outcome -- and ignores it when he doesn't -- isn't a President who actually recognizes Congressional authority at all.
* * * * *
What ultimately matters here is that we not lose sight of the critical point: no matter the form it takes, and no matter which route is used to implement it (act of Congress or executive order), indefinite detention without charges is a repugnant and tyrannical power. Democrats and progressives had no trouble understanding that fact during the last eight years, so they should have no trouble understanding it now. As The New York Times columnist (and Obama supporter) Bob Herbert put it this week: "Policies that were wrong under George W. Bush are no less wrong because Barack Obama is in the White House." Herbert also wrote:
Americans should recoil as one against the idea of preventive detention , imprisoning people indefinitely, for years and perhaps for life, without charge and without giving them an opportunity to demonstrate their innocence.
And yet we’ve embraced it, asserting that there are people who are far too dangerous to even think about releasing but who cannot be put on trial because we have no real evidence that they have committed any crime, or because we’ve tortured them and therefore the evidence would not be admissible, or whatever. President Obama is O.K. with this (he calls it "prolonged detention"), but he wants to make sure it is carried out -- here comes the oxymoron -- fairly and nonabusively.
Proof of guilt? In 21st-century America, there is no longer any need for such annoyances.
Human rights? Ha-ha. That’s a good one.
Just look at the rationale being invoked by Obama officials to justify all of this, from the Post article:
Tawfiq bin Attash, who is accused of involvement in the bombing of the USS Cole in 2000 and who was held at a secret CIA prison, could be among those subject to long-term detention, according to one senior official.
Little information on bin Attash's case has been made public, but officials who have reviewed his file said the Justice Department has concluded that none of the three witnesses against him can be brought to testify in court. One witness, who was jailed in Yemen, escaped several years ago. A second witness remains incarcerated, but the government of Yemen will not allow him to testify.
Administration officials believe that testimony from the only witness in U.S. custody, Abd al-Rahim al-Nashiri, may be inadmissible because he was subjected to harsh interrogation while in CIA custody.
I thought Democrats (and Obama himself) believe that information obtained via "harsh interrogation" is unreliable. Isn't that supposed to be a core Democratic belief? If so, why would we want to imprison someone as "dangerous" based on unreliable information obtained using those methods? If the accusations against someone were drowned or beaten out of another person, shouldn't we consider those coerced accusations too unreliable to justify keeping the accused in a cage for years with no trial? And if they're willing to repeat the accusations in court now that they're not being tortured -- and if we have independent, non-coerced evidence to prove the accusations -- why would past abuse bar the use of their testimony (as Marcy Wheeler suggests, the real reason why we'd want to prevent witnesses who were tortured from testifying in a court seems to be "because we're covering up our own torture")?
More important, look at the mentality being expressed -- and about to be implemented -- here: there may be instances where we cannot get convictions because of witness unavailability or other logistical problems, so we'll just imprison them anyway. Does it really require any effort to demonstrate how dangerous that mentality is -- that the President will have the power to order people imprisoned wherever there are some logistical barriers to obtaining convictions? If there's one principle that can be described as fundamental to the American founding, it's that the state -- and certainly the President -- do not have the power to order people imprisoned without charges. Thomas Jefferson said that trials by jury is "the only anchor ever yet imagined by man, by which a government can be held to the principles of its constitution." Why is this painfully obvious proposition still necessary to defend after the November election?
UPDATE: I posted this before, but Rachel Maddow's 7-minute commentary on Obama's preventive detention proposal was really superb and well worth watching:
On a related note: as I've written many times, the area in which Obama is replicating Bush abuses most egregiously is his embrace of Bush's secrecy obsessions. Jon Stewart last night had much to say on that topic. That Obama is adopting approaches similar to Bush's in these areas is a view that is obviously spreading -- even among Obama supporters -- and is becoming increasingly difficult to deny.
UPDATE II: Digby, today:
The irony, of course, is that the man who ran on transparency is actually turning out to be less transparent than the president he excoriated on the campaign trail for his secrecy. Bush and Cheney were pretty upfront about the fact that they believed they had the constitutional right to act in any way they saw fit, regardless of the accepted understanding of the constitution or congressional and judicial prerogatives. Bush declared "I'm the decider" and he meant it. This administration obviously believes it has that right as well --- it just pretends otherwise.
I suspect they understand that keeping the folks from losing that freedom loving, patriotic illusion of American exceptionalism is an important part of exercising American political power. And they're probably right. Bush and Cheney's biggest mistakes were in being honest about something nobody wants to know.
Relatedly, Booman -- a very enthusiastic Obama supporter -- documents multiple reasons to be suspicious of the claim that the DOJ cannot prosecute Tawfiq bin Attash (the example Obama officials cited in the Post article). That's why excessive secrecy is the linchpin of abuse of power -- it allows government officials to make dubious and misleading claims without any ability to verify them, all while they operate in the dark.

http://www.salon.com/opinion/greenwald/2009/06/27/preventive_detention/

Friday, June 26, 2009

Important Information and Action Alert on H.R. 2749:Food Safety Enhancement Act of 2009



Please read the following information on HR 2749. The concern is that the real intent behind the food safety bill is to extend the powers of the government and though representatives in Washington write reassuring emails about the intent, the fact is that the language of the law is interpreted literally and "intent" has no meaning in most courts since the spirit of the law appears to be missing in the psyche of judges.

Alarming Provisions:
* HR 2749 would impose an annual registration fee of $500 on any "facility" that holds, processes, or manufactures food. Although "farms" are exempt, the agency has defined "farm" narrowly. And people making foods such as lacto-fermented vegetables, cheeses, or breads would be required to register and pay the fee, which could drive beginning and small producers out of business during difficult economic times.
* HR 2749 would empower FDA to regulate how crops are raised and harvested. It puts the federal government right on the farm, dictating to our farmers.
* HR 2749 would give FDA the power to order a quarantine of a geographic area, including "prohibiting or restricting the movement of food or of any vehicle being used or that has been used to transport or hold such food within the geographic area." Under this provision, farmers markets and local food sources could be shut down, even if they are not the source of the contamination. The agency can halt all movement of all food in a geographic area.
* HR 2749 would empower FDA to make random warrantless searches of the business records of small farmers and local food producers, without any evidence whatsoever that there has been a violation. Even farmers selling direct to consumers would have to provide the federal government with records on where they buy supplies, how they raise their crops, and a list of customers.
* HR 2749 charges the Secretary of Health and Human Services with establishing a tracing system for food. Each "person who produces, manufactures, processes, packs, transports, or holds such food" would have to "maintain the full pedigree of the origin and previous distribution history of the food," and "establish and maintain a system for tracing the food that is interoperable with the systems established and maintained by other such persons." The bill does not explain how far the traceback will extend or how it will be done for multi-ingredient foods. With all these ambiguities, it's far from clear how much it will cost either the farmers or the taxpayers.
* HR 2749 creates severe criminal and civil penalties, including prison terms of up to 10 years and/or fines of up to $100,000 for each violation for individuals.


5 MINUTE ACTION on HR 2749 FOOD SAFETY on Small Farms
1- Sign the "Oppose HR 2749" petition on the Fund website (www.farmtoconsumer.org) and send messages to your legislators through the petition system.
2- Contact your Representative. Use the finder tool at www.Congress.org
3. Call the Capitol Switchboard at 202-224-3121.
4- Send a message through the petition system at http://www.ftcldf.org/petitions_new.htm.
5- forward this message to your friends. Take my name off the forward, please.

UPDATE: JUNE 17 HEARING

A further amended version of HR 2749 passed out of the Energy and Commerce Committee on June 17. The bill next goes to House floor for a vote. HR 2749 could be amended again before the vote takes place.
The worst provisions of HR 2749 remain in the bill. The latest version does, however, reduce the amount of civil fines that can be assessed against individuals and corporations; but the fines FDA can levy under the latest amendment are still substantial.
The bill has tightened the standards under which the federal government can quarantine food in a geographic area; but the Secretary of Health and Human Services is still given the power to impose a geographic quarantine without a court order.
The latest version of HR 2749 can be found at
http://energycommerce.house.gov/Press_111/20090617/hr2749_ans.pdf
HR 2749 needs to be defeated!! Please take action NOW.

Monday, June 1, 2009

PLEASE READ! SEIZING POWER AND PROPERTY

Deanna Spingola
May 31, 2009
NewsWithViews.com

Governments, local, county, state or federal, are artificial entities created by the people. Governments, collective organizations, were created to protect the life, liberty and property of each and every person.

Frederic Bastiat said: “If every person has the right to defend even by force — his person, his liberty, and his property, then it follows that a group of men have the right to organize and support a common force to protect these rights constantly. Thus the principle of collective right — its reason for existing, its lawfulness — is based on individual right. And the common force that protects this collective right cannot logically have any other purpose or any other mission than that for which it acts as a substitute. Thus, since an individual cannot lawfully use force against the person, liberty, or property of another individual, then the common force — for the same reason — cannot lawfully be used to destroy the person, liberty, or property of individuals or groups.”
[1]

Individuals cannot transfer rights or powers they do not inherently possess to an artificial government entity. One cannot bestow a right or privilege that one does not possess – those powers that each and every person possessed prior to the establishment of said government. Individuals may not legally plunder the property or resources of others, kill people, impose moral sanctions, or a plethora of other regulations, public and private extortions that governments regularly engage in.

Bastiat said: “Force has been given to us to defend our own individual rights. Who will dare to say that force has been given to us to destroy the equal rights of our brothers? Since no individual acting separately can lawfully use force to destroy the rights of others, does it not logically follow that the same principle also applies to the common force that is nothing more than the organized combination of the individual forces?”
[2]

The government, constitutionally, is limited only to those functions in which an individual citizen has a right to act. The government has derived its powers from the governed. People cannot delegate powers it does not possess to its creation. John Locke explained the concept: “For nobody can transfer to another more power than he has in himself and nobody has an absolute arbitrary power over himself, or over any other, to destroy his own life, or take away the life of property of another.”
[3]
For instance, if Citizen A has a vehicle and Citizen B doesn’t, Citizen B cannot arbitrarily seize citizen A’s vehicle. That would be stealing! Citizen B, despite the fact that he may lust after Citizen A’s vehicle, cannot legally delegate a government entity to take Citizen A’s vehicle in his behalf. If the government usurps such authority, that would constitute public plundering – the road to tyranny. America is obviously well down that road, given the current pandemic public plundering sanctioned and facilitated by the government.

The vehicle analogy is also applicable to car dealerships, many of which are being illegally seized and transferred to other parties. The following letter appeared in a Florida newspaper in late May 2009: “My name is George C. Joseph. I am the sole owner of Sunshine Dodge-Isuzu, a family owned and operated business in Melbourne, Florida. My family bought and paid for this automobile franchise 35 years ago in 1974. I am the second generation to manage this business. We currently employ 50+ people and before the economic slowdown we employed over 70 local people. We are active in the community and the local chamber of commerce. We deal with several dozen local vendors on a day to day basis and many more during a month. All depend on our business for part of their livelihood. We are financially strong with great respect in the market place and community. We have strong local presence and stability. I work every day the store is open, nine to ten hours a day. I know most of our customers and all our employees. Sunshine Dodge is my life. On Thursday, May 14, 2009 I was notified that my Dodge franchise, that we purchased, will be taken away from my family on June 9, 2009 without compensation and given to another dealer at no cost to them. My new vehicle inventory consists of 125 vehicles with a financed balance of 3 million dollars. This inventory becomes impossible to sell with no factory incentives beyond June 9, 2009. Without the Dodge franchise we can no longer sell a new Dodge as "new," nor will we be able to do any warranty service work. Additionally, my Dodge parts inventory, (approximately $300,000.) is virtually worthless without the ability to perform warranty service. There is no offer from Chrysler to buy back the vehicles or parts inventory. Our facility was recently totally renovated at Chrysler's insistence, incurring a multi-million dollar debt in the form of a mortgage at Sun Trust Bank. HOW IN THE UNITED STATES OF AMERICA CAN THIS HAPPEN? THIS IS A PRIVATE BUSINESS NOT A GOVERNMENT ENTITY. This is beyond imagination! My business is being stolen from me through NO FAULT OF OUR OWN. We did NOTHING wrong. This atrocity will most likely force my family into bankruptcy. This will also cause our 50+ employees to be unemployed. How will they provide for their families? This is a total economic disaster. HOW CAN THIS HAPPEN IN A FREE MARKET ECONOMY IN THE UNITED STATES OF AMERICA?
I am certain that George Joseph is just one of many dealers whose businesses have been seized by major car manufacturers, sanctioned by the bankers directing the current administration’s spoils system of rewarding campaign contributors, friends and corporate allies. This is a blatant Communistic redistribution of property. The Elite have no loyalties – other than to each other.

Unfortunately, government power was usurped long ago by the Elite, the majority of them lawyers, who impose laws favorable to themselves and their corporate cohorts but disastrous to the common citizen. To keep us fighting among ourselves, the Elite fashioned political parties. The sincere Republican and Democrat citizens are so preoccupied blaming the specific parties that they fail to recognize that the Elite within both parties utilize the spoils system – no matter which party is in power.

Politicians are like professional wrestlers with orchestrated differences who choreograph their moves and celebrate after each match. Citizens naively believe the rhetoric because we hope things will improve while government Elites of both parties plunder our lives, liberties and pockets. We have all become enslaved and ransacked by a government that was “hired” to protect us from such egregious abuse.

In the 1700s the term “slave’ was applied to all indentured servants. Both black and white servants were granted their freedom as serving a specified length of time – typically seven years. Black and white slaves worked, lived, and played together, apparently indifferent to skin color differences. Racism was absent. That mutual acceptance was artificially altered when the minority colonial Elites, concerned about possible rebellion from the majority non-voting lower classes, took firm measures to divide poor whites and blacks “both socially and economically.” The bulk of society was composed of servants, landless tenants or small yeomen who owned inconsequential land that the Elite didn’t want. The Elite established a “divide and conquer” tactic that is still very much in place in most societies.
[4]

Historian Edmund S. Morgan pointed out, “For those with eyes to see, there was an obvious lesson in the rebellion. Resentment of an alien race might be more powerful than resentment of an upper class.”
[5]

Edward Bernays, the grand master of propaganda stated: “We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized.”
[6]

The government and their compliant corporate press mold and manage our perceptions and prefer that we focus our anger and attention on numerous distractions – the illegal aliens, illusive terrorists, same-sex marriages, welfare recipients, North Korean testing, whether the CIA lied or was it Pelosi, Islamic fundamentalism, whether torture photos should be released or the current Supreme Court nominee, as if one court appointment can change the political landscape. The fact is that the government Elite set up this entire environment of contention to divert our attention from their treacherous unconstitutional, criminal activities – in both parties. This is all part of America’s drive into a One World Order, now hyper accelerated under the current administration.

You might ask – how did government Elites create the current environment. Decades ago the government abandoned the constitutional principles of non entanglement with foreign countries. Government officials are no longer public servants but private servants to deep-pocketed multinational corporations whose money keeps ego-driven politicians in power. Those same multinational corporations control the media flow of information in order to keep the people in an ignorant trance. Character-challenged politicians, mesmerized by power and money, cater to the insatiable greed of the privileged Elite under the pretext of spreading democracy, ousting cruel dictators, restricting the spread of Communism, Nazism, Fascism or terrorism.

The CIA created al Qaeda, the database and instigated Islamic fundamentalism by training 100,000 fundamentalist Muslim Mujahadeen. The CIA-friendly Zbigniew Brzezinski revealed that, unbeknownst to the American public and Congress, that Trilateralist Jimmy Carter authorized $500 million on July 3, 1979 to create an international terrorist movement that would spread Islamic fundamentalism throughout Central Asia in order to destabilize the Soviet Union, another made-in-America enemy that had served the purpose of its creation and now had to be dismantled. The CIA called this Operation Cyclone and functioned from 1979 to 1989 at a cost of $20-30 million per year beginning in 1980 which rose to $630 million per year in 1987. The U.S. poured another $4 billion into setting up Islamic training schools in Pakistan (Taliban means student). Young zealots were recruited and sent to the CIA's spy training camp in Virginia, where future members of al Qaeda were taught sabotage skills – terrorism. Young Afghans, Egyptian and Jordanian Arabs and some African American Muslims were instructed in the latest sabotage skills.
[7]

Taxpayer funds financed the I-hate-America textbooks for Muslim students. Prior to 1967, Islamic fundamentalism was a relatively small movement. In the early 1980’s, the U.S. Agency for International Development (AID) gave a taxpayer funded grant to the University of Nebraska-Omaha and it’s Center for Afghanistan Studies to develop specialized textbooks. For more than twenty years the U.S. spent millions of dollars producing fanatical Islamic schoolbooks for distribution in Afghanistan, a country now known for its terrorist training camps. The schoolbooks, used throughout the 1990s for the country’s core curriculum, included illustrations of guns, bullets, soldiers, and mines to indoctrinate young minds towards violent destruction. Who authorized this hateful instruction for young impressionable minds?
[8]

For $190,000 a year, Donald Rumsfeld sat on the board and “attended nearly all of the board meetings” of the Swiss-based ABB Company between 1990 and February 2001.
[9] In 2000 (based on a Clinton era contract) ABB sold $200 million worth of components to North Korea to allow construction of two nuclear reactors. Currently, there are concerns about their activities. In December 1983 and again in March 1984, Ronald Reagan sent his personal emissary, Donald Rumsfeld, a former Secretary of Defense, to meet with Saddam Hussein along with Reagan’s handwritten note. This first meeting, on December 20, 1983, was for the reestablishment of diplomatic relations between Iraq and the United States, the first since the 1967 war. We formally restored diplomatic relations with Iraq in November 1984. Then, Rumsfeld and his corporate cronies secretly supplied Saddam's military with the components to build chemical and biological weapons. Rumsfeld is just one example from dozens of Elites who repeatedly shift from boardroom to government office while stuffing their pockets from both positions.

David Rockefeller admitted in his relatively-recent book: “For more than a century, ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as 'internationalists' and of conspiring with others around the world to build a more integrated global political and economic structure - one world, if you will. If that is the charge, I stand guilty, and I am proud of it.”
[10] What further proof do we need of a pervasive conspiracy – just look at the mounting evidence and forget the mesmerizing, feel-good political jargon emanating from Washington.

Footnotes:
1, The Law, The Classic Blueprint for a Just Society by Frederic Bastiat, Foundation for Economic Research, New York, pp. 2-3
2, The Law, The Classic Blueprint for a Just Society by Frederic Bastiat, Foundation for Economic Research, New York, pp. 2-3
3, Locke, John, 1632-1704. Two Treatises of Government: of Civil Government Book II, p. 135
4, Divided, the South’s Inner Civil War by David Williams, The New Press, New York, 2008, p. 15
5, American Slavery, American Freedom by Edmund S. Morgan, W.W. Norton & Co., 2003, pp. 269-270
6, Propaganda by Edward Bernays, Organizing Chaos, p. 37
7, How Jimmy Carter and I Started the Mujahadeen: Interview with Zbigniew Brzezinski, Interview of Zbigniew Brzezinski Le Nouvel Observateur (France), January 15-21, 1998, p. 76; The CIA's "Operation Cyclone" - Stirring the Hornet's Nest of Islamic Unrest, October 27, 2002,
8, From U.S., the ABC's of Jihad; Violent Soviet-Era Textbooks Complicate Afghan Education Efforts by Joe Stephens and David B. Ottaway, Washington Post, March 23, 2002
9, Rumsfeld was on ABB board during deal with North Korea
10, David Rockefeller: Memoirs by David Rockefeller, Random House, owned since 1998 by the large German private media corporation Bertelsmann, 2002, p. 405

© 2008 Deanna Spingola - All Rights Reserved

Deanna Spingola has been a quilt designer and is the author of two books. She has traveled extensively teaching and lecturing on her unique methods. She has always been an avid reader of non-fiction works designed to educate rather than entertain. She is active in family history research and lectures on that topic. Currently she is the director of the local Family History Center. She has a great interest in politics and the direction of current government policies, particularly as they relate to the Constitution.

web site: www.spingola.com

Monday, April 20, 2009

Ron Paul: My Conversation With Ben Bernanke, February 15, 2006

by Ron Paul

Monetary Policy and The State of the Economy hearing before the Committee on Financial Services, U.S. House of Representatives, February 15, 2006

Chairman OXLEY. The gentlelady yields back. The gentleman from Texas, Mr. Paul.

Dr. PAUL. Thank you, Mr. Chairman. Thank you, and welcome, Chairman. Mr. Chairman, I was very pleased with what you said about your support for transparency, and I want to ask a question dealing with that. Also, at the bottom of page 8, you said something that I thought was very important, where you said that the Federal Reserve, together with all other central bankers, has found that successful policy depends on painstaking examination of a broad range of economic and financial data, and I also think that’s very important. There is a famous quote by an economist, which I’m sure you’re familiar with, that inflation is always and everywhere a monetary phenomenon. And likewise, another famous economist from the 20th Century, and I’ll paraphrase this, said that monetary authorities deliberately confuse the issue of inflation by talking only about price increases. Yet it’s the price increases which are merely the inevitable consequence of inflation. This is done on purpose to distract from the real cause, which is the increase in the quantity of money and credit. And I notice in your report to the Congress, you do report M2, and it went up last year at four percent. And M3 was not mentioned, other than the fact that it won’t be reported any more. M3, interestingly enough, went up twice as fast, and M3 is going up probably more than two times as fast as the GDP. And this is information that I consider important and I know a lot of other economists consider important. And I find it rather interesting and ironic that one of the reasons that the Federal Reserve has given – of course, this was before you were the chairman – for this change is the fact that it costs money; it costs too much money. Now that is really something in this day and age, especially since the Federal Reserve creates their own money and their own budget and they have essentially no oversight, and all of a sudden it costs too much money to give us a little bit of information. So that to me is a bit ironic that this information will not be available to us. And my question to you is, would you ever reconsider this policy of denying this information to the Congress just so that we have another tool to analyze what’s going on with monetary policy? It seems like with your support for transparency, this should be something that you would heartily support.

Mr. BERNANKE. Congressman, first, you’re absolutely right. We do look at a wide variety of indicators, and money aggregates are among those indicators. In particular, M2 has proven to have some forecasting value in the past, and I think the slowdown this year is consistent with the removal of accommodation that’s been going on. In regard to your references to M3, a still broader measure of money, we have done, and I’m now speaking about the Federal Reserve before my arrival, but we have done periodic analyses of the various data series that we collect to see how useful they are. And our research department’s conclusion was that M3 was not being used by the academic community, nor were we finding it very useful ourselves in our internal deliberations. Now it’s not just a question of our own cost; although, of course, we do want to be fiscally responsible on our own budget, but it’s also I think important for us to recognize the burden that’s placed on banks that have to report this information. And so when we can reduce that burden, we would like to do so. And that was one of the considerations in the decision that was made about M3. Would we reconsider it? If there were evidence that this was an informative series and that it was useful to the public and to the Federal Reserve in forecasting the economy, naturally we would look at it again. There’s nothing dogmatic going on here.

Dr. PAUL. If the Congress expressed an interest in receiving this information, would you take that into consideration?

Mr. BERNANKE. If there was broad interest in the Congress in receiving this information, we would look at it. But, again, Congressman, remember, it’s a burden on the reporting banks to provide the information, and we are trying to reduce that burden as much as we can.

Dr. PAUL. But, of course, this has been available to the financial community for a lot of years, and for some people it’s very important to measure what you’re doing. If the money supply is important, which a lot of people believe it is, and it causes the inflation, this to me seems like we’re taking information about the money supply and literally hiding it from the people. And I yield back.

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Dr. Ron Paul is a Republican member of Congress from Texas.

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Sunday, April 19, 2009

This Is Your Economy on Credit Crack - and Heading for a Crack-Up

15 April 2009


Here is a clear and simple explanation of why we may have already passed the point at which the Fed and Treasury will have no choice but to substantially devalue the bonds and reissue a 'new US dollar' as part of a managed default on our sovereign debt.


Ben's Un-shrinkable Balance Sheet
Delta Global Advisors
April 14, 2009

As he stated again clearly today, the Chairman of the Federal Reserve has deluded himself into thinking that when the time comes, he will be able to shrink the size of the Fed's balance sheet and reduce the monetary base with both ease and impunity. He also has deluded himself into thinking inflation will be easily contained.

It is very important that he does not fool you as well.

The Fed believes low interest rates should not be the result of a high savings rate, but instead can exist by decree, a conviction which has directly led consumers to believe their spending can outstrip disposable income.

The result of such thinking has been a rise in household debt from 47% of GDP in 1980 to 97% of total output in Q4 2008. As a result of this ever increasing burden, the Fed has been forced into a series of lower lows and lower highs on its benchmark lending rate. Keeping rates low is an attempt to make debt service levels manageable and keep the consumer afloat. Problem is, this endless pursuit of unnaturally low rates has so altered the Fed's balance sheet that Mr. Bernanke will be hard-pressed to substantially raise rates to combat inflation once consumer and wholesale prices begin to significantly increase.

Banana Ben Bernanke has grown the monetary base from just $842 billion in August 2008 to a record high of $1,723 billion as of April 2009. But it's not only the size of the balance sheet that is so daunting; it's the makeup that's becoming truly scary.

Historically speaking, the composition of the Fed's balance sheet has been mostly Treasuries. And the Federal Open Market Committee would typically raise rates by selling Treasuries from its balance sheet into the market to soak up excess liquidity. However, because of the Fed's decision to purchase up to $1 trillion in Mortgage Backed Securities (and other unorthodox holdings), it will not be selling highly-liquid US debt to drain reserves from banks. Rather, it will be unwinding highly distressed MBS and packaged loans to AIG. Not to mention the fact the Fed would have to break its promise of being a "hold-to-maturity investor" of such assets.

Moreover, not only are the new assets on the Fed's balance sheet less liquid but the durations of the loans are being extended. According to Bloomberg, the Fed is contemplating extending TALF loans to buy mortgaged backed securities to five years from three after pressure it received from lobbyists and a failed second monthly round of auctions. That means when it finally decides it's time to fight inflation, the Fed will find it much more difficult to reverse course.

But because of the extraordinary and unprecedented (some would say illegal) measures Mr. Bernanke has implemented, only $505 billion of the $2 trillion balance sheet is composed of U.S. Treasury debt. Today, most Fed assets are derived from the alphabet soup of lending programs including $250 billion in commercial paper, $312 billion of Central Bank liquidity swaps and $236 billion in mortgage-backed securities.

Thus, our economy has become more addicted than ever to low interest rates. But because bank assets will now be collecting income at record low rates, when and if the Fed tries to raise rates it will only be able to do so on the margin. If Bernanke raises rates substantially to fight inflation, banks will be paying out more on deposits than they collect on their income streams. Couple that with their already distressed balances sheets and look out!

Additionally, not only do the consumers need low rates to keep their Financial Obligation Ratio low, but the Federal government also needs low rates to ensure interest rates on the skyrocketing national debt can be serviced.
Our projected $1.8 trillion annual deficit stems from the belief that the government must expand its balance sheet as the consumer begins to deleverage. In fact, both the consumer and government need to deleverage for total debt relief to occur, else we're just shuffling debts around and avoiding a healthy deleveraging entirely.

In order to have viable and sustainable growth total debt levels must decrease, savings must increase and interest rates must rise. But that would require an extended period of negative GDP growth-a completely untenable position for politicians of all stripes. Ben Bernanke would like you to believe inflation will be quiescent and he can vanquish it if it ever becomes a problem. Just make sure you don't invest as though you believe him.

http://jessescrossroadscafe.blogspot.com/2009/04/this-is-your-economy-on-credit-crack.html