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Archive for January, 2010

New Aurora Mystery: What is Going on in the Skies over Norway!?

Posted by Admin on January 29, 2010

RedIce Creations, January 28. 2010

Jan. 26, 2010 -- This was the view looking over the small town of Andenes, Norway, on Jan. 20. Snaking across the sky from horizon to horizon was a dynamic green aurora, signaling to the inhabitants of Earth that the sun was spraying us with an intense stream of energetic particles.

On Jan. 20, 2010, Per-Arne Mikalsen was photographing a vast aurora erupting over the northern Norwegian town of Andenes.

Because solar activity is on the increase, aurora spotters have many opportunities to see the Northern Lights. On this particular night the aurora was intense, stretching toward the southern latitudes of Norway.

In one of the photographs taken by Mikalsen was an “object” that couldn’t be identified. Although Mikalsen had taken several images at the same location, just one photo showed a mysterious green parachute-like object hanging with the main aurora. (This time, it appears that the Russian military was not involved in the making of this strange shape in the sky.)

At first it seemed easy to dismiss the object as a lens flare or a spot on the camera lens, but after further study it became clear that the answer wasn’t that simple.

Also, Mikalsen is no stranger to aurorae, having worked on Andøya Rocket Range (on the island of Andøya) for many years. He’s seen aurorae of all shapes and sizes, but he’d never before seen a structure like this hanging in the sky.

“I have been working the Andøya Rocket Range for 25 years (the 20 last years in the management) and I have become more and more fascinated by the aurora,” Mikalsen told Discovery News. “Photography is a hobby for me.”

According to Mikalsen, as soon as he posted his aurora photographs on the Spaceweather.com Northern Lights Gallery, he received dozens of emails from all over the world requesting more information about the mysterious shape.

So what could it be? In correspondence with Truls Lynne Hansen, lead scientist at the Tromsø Geophysical Observatory, he doubts that the mystery object can be explained by a technical fault.

“Usually such aberrations appear when there is a small and intense source of light in the field of view, or at least so close that the light from it hits the lens,” Hansen explained to me via email. “That seems not to be the case here.”

“Additionally the color of the ‘phenomenon’ is the same as the color in the aurora, the auroral green line from atomic oxygen,” Hansen continued, “so the ‘phenomenon’ is either a genuine auroral feature or a reflection of auroral light somewhere in space.”

Hold on. A reflection of auroral light… in space? That’s impossible.

Or is it?

The structured shape of the phenomenon, plus its distance from any light sources, seems to indicate that this isn’t an equipment problem. There is also no known aurora that could do this naturally. So that leaves the “reflection from space” argument. What do we have in space that could possibly reflect the green light being emitted by the aurora?

“I agree with Pål Brekke [Senior Advisor at the Norwegian Space Centre] that a reflection from a satellite is a candidate,” said Hansen. “It reminds of the so-called ‘Iridium flares’ — reflections of sunlight from the regularly shaped Iridium satellites.”

Satellite flares are well known by astronomers. As a satellite passes overhead, the conditions may be right for the spacecraft’s solar panels or antennae to reflect sunlight down to the ground. The result is a short-lived burst of light, known as a “flare.”

The network of Iridium communication satellites are best known for their flares, since they have three huge door-sized antennae that act as orbital mirrors. Witnessing an Iridium flare is immensely rewarding; the event can be predicted beforehand because these satellites have orbits that can be tracked.

My personal concern about the satellite flare theory is the question about auroral light intensity. Is the light from a large aurora bright enough to bounce off a satellite and appear as an auroral satellite flare as a point? And in turn produce a parachute-shaped, lens flare-like projection in the photo? I couldn’t imagine even an Iridium satellite amplifying auroral light that much (although a stonking-huge orbital solar power array of the future might do a better job).

“The intensity of an intense aurora is not far from the intensity of moonlight, which is 1/100,000 of sun’s light, and the solar Iridium flares apparently are several orders of magnitude stronger than this ‘auroral flare,’ so the intensity does not immediately exclude the satellite reflection hypothesis,” said Hansen.

How an Iridium flare works with sunlight, but the same should be true for other light sources, such as aurorae (astrosat.net)

 “The intensity of an intense aurora is not far from the intensity of moonlight, which is 1/100,000 of sun’s light, and the solar Iridium flares apparently are several orders of magnitude stronger than this ‘auroral flare,’ so the intensity does not immediately exclude the satellite reflection hypothesis,” said Hansen.

A weak auroral flare seems feasible, but as pointed out by astronomer Daniel Fischer via Twitter, the green flare might not have anything to do with reflected aurora light, it could just be the color of the lens coating. The lens flare was therefore the result of internal reflections inside the camera lens caused by the bright lights in the lower left-hand corner of the frame.

“It has the typical caustic shape and it is opposite several bright point lights,” Fischer observed. “Green color could be caused by lens coatings.”

Although more research will need to be done, it certainly seems plausible that Per-Arne Mikalsen serendipitously took a photograph of a satellite flare (possibly an Iridium satellite).

What makes this revelation even more exciting is that we’ve never seen an auroral reflection from a satellite before (if it’s not a lens flare, that is).

“I have, by the way, never seen or heard of a similar phenomenon,” Hansen said.

Article from: DiscoveryNews.com

By Ian O’Neill | DiscoveryNews.com

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Galactic Timeline Interprets

Posted by Admin on January 29, 2010

Galactic Timelines

by Grant Robb, Exopolitics Australia, February 2, 2009
Published here: Sunday, January 3, 2010 at 5:41 PM

http://battleofearth.files.wordpress.com/2010/01/enki010310.gif?w=305&h=298

Cuneiform Inferences

Comment by Wes Penre: I don’t think this timeline and the events are totally accurate, but it is a “guideline” and good enough to use as reference points.

The following information come from various sources. Where different sources overlap, they will be merged with each other.

Between 450,000 BCE and 2023 BCE, is information that comes from schollar Zecharia Sitchin, one of the few people on the planet who has been able to read and translate the Sumerian Clay Tablet writing, Cuniform.

While not all researchers fully agree with his interpretation, it will give you a good start to the happenings of our solar system for the past few hundred thousand years.

More information will be added as it comes to hand.

Events before the Deluge.

450,000 years ago. On Nibiru, a distant member of our solar system, life faces slow extinction as the planet’s atmosphere erodes. Deposed by Anu, the ruler Alalu escapes in a spaceship and finds refuge on Earth. He discovers that Earth has gold that can be used to protect Nibiru’s atmosphere.

445,000 years ago. Led by Enki, a son of Anu, the Anunnaki land on Earth, establish Eridu – Earth Station I – for extracting gold from the waters of the Persian Gulf.

430,000 years ago. Earth’s climate mellows. More Anunnaki arrive on Earth, among them Enki’s half-sister Ninhursag, Chief Medical Officer.

416,000 years ago. As gold production falters, Anu arrives on Earth with Enlil, the heir apparent. It is decided to obtain the vital gold by mining it in southern Africa. Drawing lots, Enlil wins command of Earth Mission; Enki is relegated to Africa. On departing Earth, Anu is challenged by Alalu’s grandson.

400,000 years ago. Seven functional settlements in southern Mesopotamia include a Spaceport (Sippar), Mission Control Center (Nippur), a metallurgical center (Shuruppak). The ores arrive by ships from Africa; the refined metal is sent aloft to orbiters manned by Igigi, then transferred to spaceships arriving periodically from Nibiru

380,000 years ago. Gaining the support of the Igigi, Alalu’s grandson attempts to seize mastery over Earth. The Enlilites win the War of the Olden Gods.

300,000 years ago. The Anunnaki toiling in the gold mines mutiny. Enki and Ninhursag create Primitive Workers through genetic manipulation of Ape woman (Neanderthal); they take over the manual chores of the Anunnaki. Enlil raids the mines, brings the Primitive Workers to the Edin in Mesopotamia. Given the ability to procreate, Homo Sapiens begins to multiply.

200,000 years ago. Life on Earth regresses during a new glacial period.

100,000 years ago. Climate warms again. The Anunnaki (the biblical Nefilim), to Enlil’s growing annoyance marry the daughters of Man.

75,000 years ago. The “accursation of Earth” – a new Ice Age-begins. Regressive types of Man roam the Earth. Cro-Magnon man survives.

49,000 years ago. Enki and Ninhursag elevate humans of Anunnaki parentage to rule in Shuruppak. Enlil, enraged. plots Mankind’s demise.

13,000 years ago. Realizing that the passage of Nibiru in Earth’s proximity will trigger an immense tidal wave, Enlil makes the Anunnaki swear to keep the impending calamity a secret from Mankind.

Events after the Deluge.

11,000 BC – Enki breaks the oath, instructs Ziusudra / Noah to build a submersible ship. The Deluge sweeps over the Earth; the Anunnaki witness the total destruction from their orbiting spacecraft. Enlil agrees to grant the remnants of Mankind implements and seeds; agriculture begins in the highlands. Enki domesticates animals.

10,500 BC – The descendants of Noah are allotted three regions. Ninurta, Enlil’s foremost son, dams the mountains and drains the rivers to make Mesopotamia habitable; Enki reclaims the Nile valley. The Sinai peninsula is retained by the Anunnaki for a post-diluvial spaceport; a control center is established on Mount Moriah (the future Jerusalem).

9780 BC – Ra/Marduk, Enki’s firstborn son, divides dominion over Egypt between Osiris and Seth.

9330 BC – Seth seizes and dismembers Osiris, assumes sole rule over the Nile Valley.

8970 BC – Horus avenges his father Osiris by launching the First Pyramid War. Seth (Marduk, his Adapite wife, Sarpanit and their sons, Asar-Osiris and Satu-Seth) escapes to Asia, seizes the Sinai peninsula and Canaan.

8670 BC – Opposed to the resulting control of all the space facilities by Enki’s descendants, the Enlilites launch the Second Pyramid War. The victorious Ninurta empties the Great Pyramid of its equipment. Ninhursag, half-sister of Enki and Enlil, convenes peace conference. The division of Earth is reaffirmed. Rule over Egypt transferred from the Ra/Marduk dynasty to that of Thoth (Ningishzidda – Enki’s and Ereshkigal son, and Marduk’s earthborn half-brother). Heliopolis built as a substitute Beacon City.

8500 BC – The Anunnaki establish outposts at the gateway to the space facilities; Jericho is one of them.

7400 BC – As the era of peace continues, the Anunnaki grant Mankind new advances; the Neolithic period begins. Demigods rule over Egypt.

3800 BC – Urban civilization begins in Sumer as the Anunnaki reestablish there the Olden Cities, beginning with Eridu and Nippur. Anu comes to Earth for a pageantful visit. A new city, Uruk (Erech), is built in his honor; he makes its temple the abode of his beloved granddaughter Inanna/lshtar.

Kingship begins on Earth.

3760 BC – Mankind granted kingship. Kish is first capital under the aegis of Ninurta. The calendar begun at Nippur. Civilization blossoms out in Sumer (the First Region).

3450 BC – Primacy in Sumer transferred to Nannar/Sin. Marduk proclaims Babylon “Gateway of the Gods.” The “Tower of Babel” incident. The Anunnaki confuse Mankind’s languages. His coup frustrated, Marduk/Ra returns to Egypt, deposes Thoth, seizes his younger brother Dumuzi who had betrothed Inanna. Dumuzi accidentally killed; Marduk imprisoned alive in the Great Pyramid. Freed through an emergency shaft, he goes into exile.

3100 BC – 350 years of chaos end with installation of first Egyptian Pharaoh in Memphis. Civilization comes to the Second Region.

2900 BC – Kingship in Sumer transferred to Erech. Inanna given dominion over the Third Region; the Indus Valley Civilization begins.

2650 BC – Sumer’s royal capital shifts about. Kingship deteriorates. Enlil loses patience with the unruly human multitudes.

2371 BC – Inanna falls in love with Sharru-Kin (Sargon). He establishes new capital city. Agade (Akkad). Akkadian empire launched.

2316 BC – Aiming to rule the four regions, Sargon removes sacred soil from Babylon. The Marduk-Inanna conflict flares up again. It ends when Nergal, Marduk’s brother, journeys from south Africa to Babylon and persuades Marduk to leave Mesopotamia.

2291 BC – Naram-Sin ascends the throne of Akkad. Directed by the warlike Inanna, he penetrates the Sinai peninsula, invades Egypt.

2255 BC – Inanna usurps the power in Mesopotamia; Naram-Sin defies Nippur. The Great Anunnaki obliterate Agade. Inanna escapes. Sumer and Akkad occupied by foreign troops loyal to Enlil and Ninurta.

2220 BC – Sumerian civilization rises to new heights under enlightened rulers of Lagash. Thoth helps its king Gudea build a ziggurat-temple for Ninurta.

2193 BC – Terah, Abraham’s father, born in Nippur into a priestly-royal family.

2180 BC – Egypt divided; followers of Ra/Marduk retain the south; Pharaohs opposed to him gain the throne of lower Egypt (north).

2130 BC – As Enlil and Ninurta are increasingly away, central authority also deteriorates in Mesopotamia. Inanna’s attempts to regain the kingship for Erech does not last.

The fateful century.

2123 BC – Abraham born in Nippur.

2113 BC – Enlil entrusts the Lands of Shem to Nannar; Ur declared capital of new empire. Ur-Nammmu ascends throne, is named Protector of Nippur. A Nippurian priest-Terah, Abraham’s father – comes to Ur to liaison with its royal court.

2096 BC – Ur-Nammu dies in battle. The people consider his untimely death a betrayal by Anu and Enlil. Terah departs with his family for Harran.

2095 BC – Shulgi ascends the throne of Ur, strengthens imperial ties. As empire thrives, Shulgi falls under charms of Inanna, becomes her lover. Grants Larsa to Elamites in exchange for serving as his Foreign Legion.

2080 BC – Theban princes loyal to Ra/Marduk press northward under Mentuhotep I. Nabu, Marduk’s son, gains adherents for his father in Western Asia.

2055 BC – On Nannar’s orders, Shulgi sends Elamite troops to suppress unrest in Canaanite cities. Elamites reach the gateway to the Sinai peninsula and its Spaceport.

2048 BC – Shulgi dies. Marduk moves to the Land of the Hittites. Abraham ordered to southern Canaan with an elite corps of cavalrymen.

2047 BC – Amar-Sin (the biblical Amraphel) becomes king of Ur. Abraham goes to Egypt, stays five years, then returns with more troops.

2041 BC – Guided by Inanna, Amar-Sin forms a coalition of Kings of the East, launches military expedition to Canaan and the Sinai. Its leader is the Elamite Khedor-la’omer. Abraham blocks the advance at the gateway to the Spaceport.

2038 BC – Shu-Sin replaces Amar-Sin on throne of Ur as the empire disintegrates.

2029 BC – Ibbi-Sin replaces Shu-Sin. The western provinces increasingly to Marduk.

2024 BC – Leading his followers, Marduk marches on Sumer, enthrones himself in Babylon. Fighting spreads to central Mesopotamia. Nippur’s Holy of Holies is defiled. Enlil demands punishment for Marduk and Nabu; Enki opposes, but his son Nergal sides with Enlil. As Nabu marshals his Canaanite followers to capture the Spaceport, the Great Anunnaki approve of the use of nuclear weapons. Nergal and Ninurta destroy the Spaceport and the errant Canaanite cities.

2023 BC – The winds carry the radioactive cloud to Sumer. People die a terrible death, animals perish, the water is poisoned, the soil becomes barren. Sumer and its great civilization lie prostrate. Its legacy passes to Abraham’s seed as he begets – at age 100 – a legitimate heir: Isaac.

This is where Sitchins timeline ends for now. As new information comes to hand I will insert it in here.

Thanks and warm regards,

Grant Robb

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The Fix Is In For The Owners Of The Fed

Posted by Admin on January 28, 2010

The Fix Is In For The
Owners Of The Fed

From Joel Skousen
World Affairs Brief
3-13-9

http://www.rense.com/general85/own.htm

As the US Treasury Department continues to brag that the US has not yet been forced to make good on its guarantees of toxic debt held by the major insider banks (Citigroup, JP Morgan, Bank of America, etc) we find they have been using a back door to funnel money to their friends–AIG the world insurance giant holding the largest share of derivative contracts that guarantee those toxic debts against default.

In point of fact, those debts are defaulting in ever increasing number, and AIG is having to pay out billions. But, those billions are being replenished by additional bailout funds from the Treasury–while the rest of the nation suffers from lack of credit.

Why should the American taxpayer be bailing out gambling bets based on promises to pay that were utterly fraudulent? Now we find out that AIG is also the preferred avenue of funneling money into European banks.

Lastly, what do all these insider banks have in common? They constitute the private owners of the Federal Reserve. It all begins to make sense why only the largest banks are receiving these funds and why the regulators continue to squeeze the smaller banks with millions in new surcharges–forcing them into liquidation. The fix is in.

International law professor Richard Cummings, writing for Lew Rockwell.com, says, “Fed Chairman Ben Bernanke has resisted calls from Congress that he release the names of the banks that were recipients of the bailout money the Fed gave to AIG to prevent it from collapsing.

AIG insured its counterparties against losses from mortgage-backed derivatives. The Fed poured $85 billion into AIG, which paid out $37.3 billion of that money to counterparties that had purchased a certain type of derivative-based protection from AIG, called multi-sector credit default swaps.

“The counterparties have never been disclosed but the Wall Street Journal reported that they included Goldman Sachs, Merrill Lynch, UBS and Deutsche Bank. AIG and the Federal Reserve Bank of New York have unwound many of these contracts. To do this, they offered to buy the CDOs (collateralized debt obligations) that were originally insured by those agreements. The counterparties sold these assets at a discount, but were compensated in full in return for allowing AIG to extricate itself from the obligations. The counterparties also got to keep the $37.3 billion in collateral, according to the Wall Street Journal.

“While Bear Stearns was collapsing, Goldman Sachs boasted that it had insulated itself by buying insurance against the mortgage-backed derivatives. As it turns out, it was, in fact, rescued by the Fed when it bailed out AIG. In 2007, Lloyd Blankfein, Goldman Sachs’ CEO, received $70 million in compensation, including bonuses, $27 million in cash… At the time the New York Fed came to AIG’s assistance, Secretary of the Treasury Timothy Geithner was its head.

“Blankfein is still drawing down millions in compensation. The rationale for his compensation is the alleged profitability of Goldman Sachs, which raked in over $9 billion in 2006. It should also be noted that the bailout stopped Goldman stock from plummeting, thereby protecting not only Blankfein’s fortune, but that of Hank Paulson, the former chairman of Goldman Sachs, who was Secretary of the Treasury under George W. Bush.

“This is perhaps the greatest financial scandal in American history but most Americans are totally ignorant of it. On top of this, the AIG bailout enabled John Thain to pay out billions in bonuses while he headed Merrill Lynch, just prior to its sale to Bank of America, a recipient of billions of bailout money, this while the unemployment rate is headed towards ten percent and the market collapse has caused losses in the trillions. Were the names of the banks made officially public, there would be cries of outrage so loud as to be deafening, making any further bailouts dubious for political reasons.

“And while Bernanke has said that he would not permit the big banks to fail, the looting of America by some of the richest and most powerful people, such as Blankfein and Thain, goes on, with no end in sight. Pandit the bandit now says Citigroup is profitable, enabling its stock to rise above a dollar, generating a temporary euphoria in the market. The cheers going up on CNBC can be heard all the way to Warren Buffett’s coffers. And American tax payers are not only bailing out the American banks, they are also bailing out Europe.”

Toni Reinhold of Reuters answers “Who got AIG’s bailout billions?” “The Wall Street Journal reported… that some of the banks paid by AIG since the insurer started getting taxpayer funds were: Goldman Sachs Group Inc, Deutsche Bank AG, Merrill Lynch, Societe Generale, Calyon, Barclays Plc, Rabobank, Danske, HSBC, Royal Bank of Scotland, Banco Santander, Morgan Stanley, Wachovia, Bank of America, and Lloyds Banking Group.” I think it’s the large number of foreign banks that would be particularly irritating to the public if it knew the extent of this largess.

WHO OWNS THE FED?

Jim Quinn unravels for us the real link between all this insider dealing. Who really owns the Federal Reserve. It’s not the US government and its not you the taxpayer. “The average American does not know much about the Federal Reserve. The government and the Federal Reserve prefer to operate in the shadows. If the American public understood what their policies have done to their lives, they would be rioting in the streets. Henry Ford had a similar opinion: ‘It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.’

“Most Americans believe that the Federal Reserve is part of the government. They are wrong. It is a privately held corporation owned by stockholders. The Federal Reserve System is owned by the largest banks in the United States. There are Class A, B, and C shareholders. The owner banks and their shares in the Federal Reserve are a secret. Why is this a secret? It is likely that the biggest banks in the country are the major shareholders. Does this explain why Citicorp, Bank of America and JP Morgan, despite being insolvent, are being propped up by Ben Bernanke and Timothy Geithner?” It does, indeed.

Tony Rheinholt continues: “The U.S. Federal Reserve has refused to publicize a list of AIG’s derivative counterparties and what they have been paid since the bailout, riling the U.S. Senate Banking Committee. Federal Reserve Vice Chairman Donald Kohn testified before that committee on Thursday that revealing names risked jeopardizing AIG’s continuing business. Kohn said there were millions of counterparties around the globe, including pension funds and U.S. households.” What this means is that AIG is only paying out on SOME of its obligations, and US Pension funds are NOT on that list. In other words, the bailout monies are only going to a select few. AIG has absorbed $180B so far, with no end in sight, no transparency, and no sign of changing this pattern.

Proof that we haven’t even turned the corner yet comes from Greg Gordon and Kevin G. Hall of McClatchy Newspapers (itself a losing enterprise like dozens of other print media): “America’s five largest banks, which already have received $145 billion in taxpayer bailout dollars, still face potentially catastrophic losses from exotic investments if economic conditions substantially worsen, their latest financial reports show. Citibank, Bank of America, HSBC Bank USA, Wells Fargo Bank and J.P. Morgan Chase reported that their ‘current’ net loss risks from derivatives —- insurance-like bets tied to a loan or other underlying asset —- surged to $587 billion as of Dec. 31. Buried in end-of-the-year regulatory reports that McClatchy has reviewed, the figures reflect a jump of 49 percent in just 90 days.”

Not counted in those write downs, of course, are the funds they are getting through the back door, which are not accounted for publicly. “While the potential loss totals include risks reported by Wachovia Bank, which Wells Fargo agreed to acquire in October, they don’t reflect another Pandora’s Box: the impact of Bank of America’s Jan. 1 acquisition of tottering investment bank Merrill Lynch, a major derivatives dealer.”

SQUEEZING THE SMALL SOLVENT BANKS

The next part of the fix is the most evil, in my opinion. The Fed and the US Treasury have given trillions of paper dollars to insider banks, and yet they are letting the FDIC run short of money so that this “insurer” of the public’s deposits ($250,000 and below) can have an excuse to jack up the insurance premiums (surcharges) to member banks. These new “temporary” fees are more than most small bank profits, and will ensure that these banks fail.

As Paul Kiel writes in ProPublica, “It’s looking increasingly like the FDIC will have to turn to Treasury to help it weather the storm… FDIC’s deposit insurance fund has plummeted in the past year as a growing number of banks have failed. The fund relies on fees from member banks, and Bair held out hope that a recent bump in those feeswould provide enough cushion. But if it doesn’t, Bair said, people shouldn’t be nervous about their FDIC-insured accounts: ‘It is important for people to understand, we’re backed by the full faith and credit of the United States government. The money will always be there. We can’t run out of money.'” Then why has the fee increased? Why penalize the banks that have been conservative, and limited their growth for safety?

Bill Butler describes the “squeeze play” going on: “FDIC Chairwoman Sheila Bair announced last week that the quasi-public insurance monopoly would become insolvent in the next few months if it is not allowed to implement a one-time, draconian surcharge on all U.S. banks. This charge will, in some cases, wipe out last year’s profits. At the same time, the FDIC has requested an additional $500 billion ‘loan’ from Congress [notice that a loan requires the member banks to pay it off. A bailout would not. They choose to ask only for the loan as a justification for the surcharge].

“Small, solvent, well-run local and regional banks have objected. They rightly claim that they are not the problem. These banks have a solid and growing deposit base and many of them service their own loans and so did not get caught in the trap of originating bad loans and dumping them on the secondary mortgage market in federally-guaranteed bundles. Whether they know it or not, these banks intuit that, like Social Security, there is no FDIC “fund.” FDIC insurance, like social security, is just another government-coerced Ponzi scheme — a tax that, according to former FDIC commissioner Bill Isaac, goes immediately to the Treasury to buy “spending . . . on missiles, school lunches, water projects, and the like.”

“Rather than increasing their taxes and punishing their relatively good behavior, these small banks suggest that the FDIC look first to Bailout Banks, the Wall Street mega-banks that have received nearly a trillion dollars in unearned, government-supplied capital via the printing press, for any increased insurance premium/tax. Ms. Bair rejected these pleas by claiming that FDIC law does not allow her to ‘discriminate’ against banks based on their size. Clever [Actually, there is a basis for discrimination since the larger one’s 1) caused the problem and 2) are the recipients of taxpayer backed funds]. What is really going is that the Bailout Banks are using the government and its insurance monopoly to help them gain market share by drastically increasing the operating costs of their smaller, better-run and scrappy competitors.” We are about to see the worst banks absorb the smaller sound banks–a great injustice, and totally engineered.

(End Excerpt)

World Affairs Brief – Commentary and Insights on a Troubled World.

Copyright Joel Skousen. Partial quotations with attribution permitted.

Cite source as Joel Skousen’s World Affairs Brief http://www.worldaffairsbrief.com

World Affairs Brief, 290 West 580 South, Orem, Ut 84058, USA

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The Real AIG Scandal

Posted by Admin on January 28, 2010

The Real AIG Scandal

Tuesday 17 March 2009

by: Eliot Spitzer  |  Visit article original @ Slate Magazine

http://www.abovetopsecret.com/forum/thread446765/pg1

It’s not the bonuses. It’s that AIG’s counterparties are getting paid back in full.

Everybody is rushing to condemn AIG’s bonuses, but this simple scandal is obscuring the real disgrace at the insurance giant: Why are AIG’s counterparties getting paid back in full, to the tune of tens of billions of taxpayer dollars?

For the answer to this question, we need to go back to the very first decision to bail out AIG, made, we are told, by then-Treasury Secretary Henry Paulson, then-New York Fed official Timothy Geithner, Goldman Sachs CEO Lloyd Blankfein, and Fed Chairman Ben Bernanke last fall. Post-Lehman’s collapse, they feared a systemic failure could be triggered by AIG’s inability to pay the counterparties to all the sophisticated instruments AIG had sold. And who were AIG’s trading partners? No shock here: Goldman, Bank of America, Merrill Lynch, UBS, JPMorgan Chase, Morgan Stanley, Deutsche Bank, Barclays, and on it goes. So now we know for sure what we already surmised: The AIG bailout has been a way to hide an enormous second round of cash to the same group that had received TARP money already.

Also see below:

Hedge Funds May Be Getting a Bailout via AIG’s Payments•

It all appears, once again, to be the same insiders protecting themselves against sharing the pain and risk of their own bad adventure. The payments to AIG’s counterparties are justified with an appeal to the sanctity of contract. If AIG’s contracts turned out to be shaky, the theory goes, then the whole edifice of the financial system would collapse.

But wait a moment, aren’t we in the midst of reopening contracts all over the place to share the burden of this crisis? From raising taxes – income taxes to sales taxes – to properly reopening labor contracts, we are all being asked to pitch in and carry our share of the burden. Workers around the country are being asked to take pay cuts and accept shorter work weeks so that colleagues won’t be laid off. Why can’t Wall Street royalty shoulder some of the burden? Why did Goldman have to get back 100 cents on the dollar? Didn’t we already give Goldman a $25 billion capital infusion, and aren’t they sitting on more than $100 billion in cash? Haven’t we been told recently that they are beginning to come back to fiscal stability? If that is so, couldn’t they have accepted a discount, and couldn’t they have agreed to certain conditions before the AIG dollars – that is, our dollars – flowed?

The appearance that this was all an inside job is overwhelming. AIG was nothing more than a conduit for huge capital flows to the same old suspects, with no reason or explanation.

So here are several questions that should be answered, in public, under oath, to clear the air:

# What was the precise conversation among Bernanke, Geithner, Paulson, and Blankfein that preceded the initial $80 billion grant?

# Was it already known who the counterparties were and what the exposure was for each of the counterparties?

# What did Goldman, and all the other counterparties, know about AIG’s financial condition at the time they executed the swaps or other contracts? Had they done adequate due diligence to see whether they were buying real protection? And why shouldn’t they bear a percentage of the risk of failure of their own counterparty?

# What is the deeper relationship between Goldman and AIG? Didn’t they almost merge a few years ago but did not because Goldman couldn’t get its arms around the black box that is AIG? If that is true, why should Goldman get bailed out? After all, they should have known as well as anybody that a big part of AIG’s business model was not to pay on insurance it had issued.

# Why weren’t the counterparties immediately and fully disclosed?

Failure to answer these questions will feed the populist rage that is metastasizing very quickly. And it will raise basic questions about the competence of those who are supposedly guiding this economic policy.

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Eliot Spitzer is the former governor of the state of New York.

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Hedge Funds May Be Getting a Bailout via AIG’s Payments

Wednesday 18 March 2009

by: Dow Jones  |  Visit article original @ Dow Jones

New York – The fact that some payments made by American International Group Inc. (AIG) to hedge funds are coming from government bailout money raises a question: Are hedge funds receiving a de facto bailout?

If the answer is yes, it would signify the first taxpayer money yet to reach hedge funds since the financial crisis began back in late 2007. Hedge funds – investment pools made up primarily of high net worth individuals, pension funds and university endowments – have suffered like most during the crisis, but have pointed out with pride that as of yet their industry hasn’t requested any government handouts.

Officially, of course, any payments made by AIG to hedge funds wouldn’t change that fact. It was AIG that requested the bailout, not the hedge funds. The insurance giant is now simply meeting its contractual obligations.

In some cases, AIG has already paid out fairly hefty amounts to hedge funds with U.S. taxpayer funds. AIG said in a press release Sunday that it paid $200 million each in “public aid” to Citadel Investment Group and Paloma Securities. These payments were made to settle short-term trades last year in which the hedge funds loaned AIG cash in exchange for bonds.

Also, as reported Wednesday in The Wall Street Journal, AIG reportedly may be paying out many different hedge funds for bets in which the hedge funds waged that the housing market would crater against AIG’s bets that it would remain robust.

It isn’t clear how much in total that hedge funds stand to gain through the AIG payments, but the payments call into question the government’s decision, whether out of haste or for any other reason, to allow the AIG bailout money to be dispersed to any counterparties, including hedge funds.

“Taxpayer money is being paid to hedge funds by a Treasury that could have limited the payments to domestic banks but decided not to risk letting anyone big fail,” said John Coffee, a professor of securities law at Columbia University. “In short, everyone of importance is being protected.”

Not all observers see a problem.

While Edward Altman, a professor of finance at New York University’s Stern School of Business, questions the use of taxpayer funds to pay huge bonuses to AIG executives (another controversy surrounding the AIG bailout), he doesn’t see a problem with the hedge-fund payments.

“The ‘bailout’ funds are doing exactly what they were intended to…pay off [ AIG’s] bills on a timely basis so as not to cause any further harm to the system,” he said. “Otherwise, what’s the purpose of the bailout? It should have been clear that this involves [payments to] hedge funds.”

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By Dan Molinski, Dow Jones Newswires; 201-938-2245.

Posted in Economic Upheavals | Tagged: , , , , | Comments Off

Arcturian Corridor : STEP 18 ENTERING THE SIXTH DIMENSION

Posted by Admin on January 28, 2010

Multidimensional News
JANUARY OF 2010

2Jan2010

Thank you for showing interest in www.multidimensions.com.

STEP 18
ENTERING THE SIXTH DIMENSION

Dear Ones,
We, the Arcturians, welcome you again to our Corridor. We see that you are making progress in being fifth dimensional. It is glorious, indeed, to see your consciousness expand in such a manner that you are releasing your old bondage to third dimensional illusions and limitations.

WHAT IS REALITY

We perceive your confusion, as your collective minds ask, “What reality are we in now? Are we actually fifth dimensional, or are we only fifth dimensional in our consciousness.” Our response to that question is that “only in your consciousness” is REAL, for ALL reality is a state of consciousness.”  We understand that inter-dimensional travel can be very tricky. One minute you may be happily experiencing a lovely fifth dimensional day. Then, in the next moment you are stuck in traffic in a third-dimensional city. However, one thing you have learned is that being somewhat out-of-control in your inter-dimensional travel is much better than being trapped in the limitations of your physical world.

Fortunately, the third dimension is becoming more comfortable, as you have learned the laws of attraction and gained more mastery over your thoughts and emotions. Hence, you are gaining more control over your physical life and are no longer choosing to be victimized by the lies of the dark forces. You know that there will be many changes, but you are not exactly sure what will change or how. Nevertheless, you are increasingly ready to move onto the next level of your 3D Virtual Realty Game in which you return to your higher dimensional realities.

Despite the many ensuing changes, you KNOW that you are ONE with that which you love. The forces of Darkness in this 3D Game of polarity have made love so scarce and surrounded by fear that you have learned to unconditionally cherish what you love. In fact, you feel confident that the people, places, activities and even things that you love are staying with you throughout your transition into the “unknown” of your planetary ascension. Furthermore, you realize that on the fifth dimension you can easily manifest any “thing” that you have loved in your sojourn into the physical world.

The instant manifestation of the fifth dimension, which you are beginning to experience, may seem like a roller coaster ride to you. You think of what you want, then—instantly— it manifests. On the other hand, one second of doubt, fear and anger and—instantly— your manifestation disappears. Fortunately, you are realizing that it is all about your state of consciousness, especially raising your resonant frequency.

If your resonant frequency is third dimensional, then even fourth dimensional consciousness can be difficult to maintain, and fifth dimensional consciousness is out of the question. Of course, Earth has largely been fourth dimensional since the turn of the millennium.

The problem has been that whenever you, person and planet, enter the fourth dimension you, have to create your “tunnel of Light” through its Lower Astral Plane of the fourth dimension. The fact that the Darkness is losing most of its power over others now, indicates that you, people and planet, are putting the final touches on your tunnels of light. And you are just in time, for now you can use that Light to reveal the Truth that has been hiding behind all the third dimensional illusions. One of those truths is that darkness cannot attack light; it can only expand your own inner darkness. Hence, once you rise beyond your own darkness, which is some form of fear, you are beyond the reach of external darkness.

END OF ILLUSION

The main illusion that you are releasing is the illusion of separation.  You now realize you are NOT separate Beings. You are all ONE, no matter how you look, what you do and how, or where, you live. Most importantly, your cooperative effort with others, or with Gaia, to create your tunnels of light has changed your Consciousness from Personal to Collective to Planetary. As you become increasingly fifth dimensional, your consciousness will easily expand into Galactic Consciousness. Then, when we enter the sixth dimension, your consciousness will expand into Cosmic Consciousness.

On the other hand, your expanding consciousness also contributes to your confusion about “What reality is this?” The best way to determine your reality is by trusting your emotions. In the third and lower fourth dimensions, you need to be separate as a means to protect yourself from all the darkness and fear that you suffered—and have BEEN—in your many physical incarnations. However, when you get a taste of fifth dimensional reality, you feel such peace, calm and unconditional love that you have NO desire to be separate. You want to merge with the love, peace and calm, as well as with the people, plants, animals, places and things that emanate these fifth dimensional qualities.

You are discovering that certain objects, which you have formerly labeled as “things,” serve as capacitors to hold fifth dimensional energy. These objects have become enlivened by your creation or use of these objects during your strongest creative and healing moments of unconditional love. Therefore, crystals, art objects, homes, bridges, chairs seem to take on a life of their own. You have also found that if you diminish your intention and attention towards these objects, they return to being “just things” or they get “lost.”

Actually, these things are not getting lost. Instead, they are returning to a lower resonance/dimension , which matches the frequency of that matter. In other words, they become matter without consciousness.  It is helpful to know this fact about objects, for it also holds true for your earth vessel. When you hold the intention of peace, calm and unconditional love, the resonance of your earth vessel rises into the fifth dimension to match the frequency of your consciousness.

What will happen next remains to be seen, for your ascension process is a “create as you go” endeavor. Eventually, you will transmute into Lightbody. You have all read many physiological, scientific and metaphysical version of how this transmutation will take place. However, this Planetary Ascension is YOUR creation. Earth has always been a planet of myriad forms of life and people. Hence, owners of different earth vessels may become Lightbody in different manners.  Likely, the first ones for each form of transmutation will assist others who are drawn to make their transition in the same fashion.

Either way, you, people and planet, have myriad adventures ahead as you move into your year of 2010. We, the Arcturians, as well as the many members of your Galactic Family, lovingly observe you and are eager to assist whenever you call. In fact, it is now time to heed your call to be taken into the sixth dimension.

THE DIVINE MATRIX

The sixth dimension holds the Divine Matrix, which is projected into the lower worlds of third/fourth dimensional realities. It is in the sixth dimension that you can write, or re-write, the blueprints for your third and fourth dimensional holograms. The fifth dimension is not a hologram. Holographic realities are places for learning, schoolrooms, in the lower worlds of the third and fourth dimensions. Conversely, the fifth dimension is a reality where you integrate all that you learned in these lower worlds, as well as a format from which your SELF can assist your grounded, earth vessels.

Once you allow your Kundalini to rise into your Crown Chakra and download and integrate your Multidimensional SELF into your grounded earth vessel, your Personal Consciousness regains its expanded perceptions. As you experience reality through the multidimensional perception of your Soul/SELF, your “family” expands beyond the third dimension and into the fourth and fifth dimensions, to include your Galactic Family.

We are now accelerating our Corridor to the resonance the sixth dimension, so that you may merge with your sixth dimensional SELF. Yes, YOU have a component of your SELF on every dimension, but in the sixth dimension you will only contain your consciousness in a form for certain purposes. In the sixth dimension, you may choose to “put on your form,” as you would “put on a jacket” in your material world.

3Jan2010YOUR DIVINE COMPLEMENT

When Gaia first enters the fifth dimension, you will likely wear your form/body at all times as a means of comfort. Comfort often comes from what is familiar, such as wearing a form. In fact, you will likely choose to wear a form of gender, as that is also familiar. However, you will remain on the fifth dimensional threshold until you have recognized and united with your Divine Complement. Your Divine Complement, also known as your Twin Flame, is the completion of your SELF that split into a gender when you first took form in the third and fourth dimensions.

Since you are united with all life on the fifth dimension, there will be no effort in connecting with your Complement. Because there is no time or space in the fifth dimension, all you will need to “do” is to put out the call for your Twin Flame, and instantly, you will be united. You will know that this union has occurred because you will feel complete bliss and total unity. Many of you are already in contact with your Twin Flame/Divine Complement in your grounded reality, but you may not know it, as your Complement may be a child, a best friend, or a parent.

In fact, throughout your many third dimensional incarnations, you and your Complement have met in many differing forms of relationships. (see Reconstructing Reality by Suzan Caroll) Fortunately, the instant manifestation of your thoughts in the fifth dimension will allow you to instantly perceive your Complement. On the other hand, if your thoughts and emotions become fearful, your resulting lowered consciousness will immediately return you to the lower dimensional realities.

This return to the lower realities is in no way a punishment. It is simply a matter of resonance. Your reality is a result of your state of consciousness. In order to maintain a state of consciousness that resonates to the fifth dimension, your thoughts and emotions must be based on unconditional love, unconditional acceptance and unconditional forgiveness. We know that your grounded self may find unconditional love to be impossible to maintain. However, once in the fifth dimension, unconditional love fills the ethers, and you feel totally safe and united with all life. With more frequent experiences of the fifth dimension, it will become easier to maintain that state of consciousness.

Your Multidimensional SELF is preparing you now for this shift by showing you how quickly your thoughts and emotions create your reality. You are also being shown any remnants of your ego attachment and service to self. You are brave spiritual warriors to confront your ego and fears again and again, so that you may regain your full Mastery of Energy (thoughts and emotions). It is because you are becoming a Master of Energy that you are able to navigate from one reality to another.

VERTICAL AND HORIZONTAL REALITIES

The “fuel” for your inter-dimensional travel is unconditional love. Unconditional love raises the frequency of all it touches and is the force that will expand the Corridor to encompass the sixth dimension and beyond. As the force of your collective, unconditional love touches the perimeters of the Corridor, its resonance will escalate the frequency of the Corridor into the next dimension. In this case, it will extend the resonance of the Corridor into the sixth dimension. Do you see how we are having you participate in your journey now?  We no longer need to guide you, for you are fully awakening. Hence, we now give you the tools and allow you to experiment with your expanding perceptions and powers.

Remember that the fifth dimension and beyond is free of time and space. Therefore, it takes no time, nor do you travel across space to enter the sixth dimension. Instead, as the frequency of the Corridor oscillates, it raises its inhabitants into a higher dimension. Because of the tremendous force of unconditional love emanating from the many different ones who are now united in this Corridor, we can easily make our transition into the sixth dimension. Remember, since there is no time or space in the Corridor, it does not matter “when” people tune into this experience or “where” they are located.

The force of unconditional love oscillates us up and down the different frequencies/ densities via the “elevator” of vertical reality, where we can open the “elevator door” to enter the “floor” of the horizontal realities on each density. The constant oscillation of Flow of unconditional love up and down the different dimensions greatly increases its power. Therefore, we ask you to oscillate your energy/consciousnes s from the third dimension to the fourth dimension and back to the third dimension.

Then, oscillate your consciousness from the fourth dimension into the fifth dimension, then back to the fourth. In this manner, you will gather momentum to expand your resonance/conscious ness from the fifth dimension into the sixth. After you have practiced moving your consciousness up and down the vertical realities, “fuel up your consciousness” with unconditional love. Now, again oscillate your consciousness up and down the vertical reality, but FEEL how unconditional love is the force that drives you. You are creating a huge engine of unconditional love, which is the Cosmic Force needed to promote a higher state of consciousness, thinking, expectation, and perception.

Every possible reality is always with you in its own resonant frequency. In order to experience each reality, you must raise your consciousness up the vertical realities to match your resonant frequency to that horizontal reality. You will remain in that reality as long as you can maintain that resonance. Since there is no separation in the fifth dimension and beyond, you are always in all the realities all the time. However, the remaining attachments you have to the third and fourth dimensions make it difficult for you to experience more than one reality at a “time.”

Your multidimensional SELF is able to connect with and experience all your realities in the NOW of the ONE. When you are perfectly aligned with your Multidimensional SELF, you, too, can have this experience. However, you will need to release your attachments to your physical body, as well as your ego’s beliefs, illusions and expectations. Most important, you will need to release your attachment to fear.  You may think that releasing fear would be easy, but it has been your companion for many third and lower fourth dimensional lives.

FIFTH DIMENSIONAL SPACE STATION
4Jan2010
As you progress into the sixth dimension and beyond, you will repeatedly return to the fifth dimension to ground your primary consciousness, not in the third dimension, but in fifth dimensional Earth. Fifth dimensional Earth shall be your Space Station (Home) for all your inter-dimensional travels. It is the frequency of unconditional love that will allow you to remain HOME in the fifth dimension.

You may ask, “How is unconditional love a frequency?” To answer your question we remind you that All That Is vibrates to a frequency. As a famous earth scientist, Albert Einstein, said, “Even matter is a frequency, but it is vibrating at a very slow rate.” Conversely, unconditional love is vibrating at what you would call an “infinite frequency,” for it is a frequency beyond measure. How can you calculate something that is beyond time and space? Unconditional love is assessed like all love, according to its manifestations. Since unconditional love manifests virtually everything, it is certainly “beyond measure.”

Not only does unconditional love create all life, it transmutes all life.  Of course, since everything already exists, creation IS transmutation.  For example, a great art piece transmutes light placed onto a canvas with paints into an art form and music transmutes sounds into music via breath and or manipulation of instruments. However, the art was not created. Instead, elements of a lower frequency were blended together along with the unconditionally loving intention of the artist to transmute these elements into a higher resonance.

Yes, everything always IS in some frequency. In the same manner, you are not creating the sixth dimensional portal of the Corridor. You are using the great force of your unconditional love to transmute the Corridor into its sixth dimensional expression. Actually, we, Arcturians and humans, are using unconditional love to call forth that which has always existed in a higher frequency.

When unconditional love is used to heal, it calls forth the perfect health that already exists in a higher frequency.  Since your thoughts and emotions create your reality, negative thoughts and fear call forth/create illness and discord. However, when unconditional love governs your body, you bring down the energy pattern of your perfected body that already exists in the Divine Matrix of the sixth dimension.

In the same manner, you will use the power of unconditional love to call your Lightbody into manifestation. Of course, since your Lightbody resonates to the fifth dimension and beyond, the Lightbody, which you call down to your frequency, will simultaneously lift you up into the fifth dimension, which is the resonant frequency of your Lightbody.

When we say, “lift you up,” we do not mean the YOU of your earth vessel.  We mean the YOU of your multidimensional consciousness that already exists in every dimension. In other words, much like you now decide to “change your clothes,” you will decide to “change your form/body.” Your clothes cover and protect your body, whereas your body covers and protects your consciousness.  With the proper clothes you can go out into a hostile environment and survive. In the same manner, with a proper body you can go into the hostile environment of the third dimension with a better ability to survive.

Just as you call down your Lightbody to take you Home into the fifth dimension, you will call down the sixth dimensional Corridor, and it will lift you up into the sixth dimension. Remember, dear ones that up and down are third dimensional space terms. In our multidimensional reality, “down” means a lower frequency dimension and “up” means a higher frequency dimension. Ever since our journey has taken us into the fifth dimension, we have been beyond time and space, and ALL is HERE NOW.  Hence, we don’t go “up” to create; instead, we transmute form into a different resonance.

LIGHT AND LOVE

Unconditional love is the creative force of all life. All life is light, and all light is consciousness. Unconditional love is the Light Language that is innately within your multidimensional consciousness. Third dimensional light is polarized into light and dark, whereas third dimensional love is conditional and programmed to adapt to a polarized, light and dark reality. On the other hand, unconditional love is a zero point energy field and designed for the none-polarized fifth dimensional light. Unconditional love is a great force that serves as your “fuel” for inter-dimensional travel, whereas Light Language is your “steering system.”

While in the sixth dimensional Divine Matrix, your force of unconditional love will assist you to use your Light Language to program the release of all your perceptions of illusions of separation, limitation and polarity. Without these illusions, your ability to perceive the fifth dimensional reality in which you already exist will be greatly enhanced. All around you are moments, feelings and visions that resonate to the frequency of the fifth dimension, but you cannot see them through the veil of illusion. Once that veil is gone, you will be able to see the many ways that you are already fifth dimensional.

Take a moment now to merge with your Multidimensional SELF…

Using your innate Light Language, commune with and communicate with your SELF to feel the unconditional love that forever emanates from that expression of your SELF…

As you commune with your SELF, you receive the Light Language symbol of Unconditional Love…

Place this symbol in your Third Eye and High Heart and extend that force of Unconditional Love out from your Third Eye and High Heart to meet in an arch over your Throat Chakra…

Breathe the Light Symbols of unconditional love into your High Heart to “start the engine” of your Merkaba…

FEEL how your Merkaba amplifies your energy and extends your unconditional love into our Corridor to escalate its resonance into the sixth dimension…

Share your unconditional love with every consciousness in the Corridor to raise the resonant frequency of the Corridor…

Extend this Collective Consciousness down to third dimensional Gaia, so that She may ground and participate in your journey…

Feel your consciousness expand to Planetary Consciousness, as Gaia joins you in the Corridor…

Focus your Personal, Collective and Planetary Consciousness to expect to perceive the sixth dimension…

Gradually, you begin to perceive the sixth dimensional quality of the Corridor…

Light Ribbons of Possibility dance about the Corridor and beckon you to follow them.
See the Light of each Ribbon moving into and through the Corridor. Hear the Cosmic Choir emanating from each Ribbon of Light.
Touch them, as gently as you would touch a butterfly’s wing.

Take long breaths to expand your consciousness to embrace both the highest frequency of your Multidimensional SELF, as well as the smallest particles of your quantum reality…

Allow the sixth dimensional light and unconditional love to enter into every cell and atom of your being. Planetary ascension begins with the complete and total infusion of Spirit-into- Matter, Light-into-darkness , on every atomic, cellular, etheric and spiritual level.

FEEL the Ribbons of Possibility enter your form, which no longer appears to be human. The vessel that houses your consciousness has become a body of light with light projections of unconditional love emanating from the back of your heart that appear almost like wings. Above your heart is your Third Eye encased in a force field of pure intention.

Your arms are also projections of light emanating from your heart that change form depending on their purpose. From below your heart, your body flows down into two trails of light like the trains on a wedding gown.  You have no feet at this point, as you do not need to walk. Instead, you float or you are simply “there.”  If for some reason you desire to walk, emanations of light will appears to be legs and feet.

As you look at you hands, you see that your fingers also appear to be offshoots of light. There are no joints or fingernails. Your body is liquid light, and it can morph into any shape that you desire.  Upon discovering this phenomenon, you experiment with this form.

First, you so expand your form that you become the Corridor. Then you compress your form into a spec of light so minute that you are pure consciousness.  Finally, you become pure unconditional love.  You have no head and no limbs.  You are a pulsing portal of light. You ARE the Arcturian Corridor! Simultaneously, you are Earth.

5Jan2010
INTO THE SIXTH DIMENSION

The Corridor has opened to the sixth dimension. You are now ready to experience the threshold into the sixth dimension. Feel the Corridor around you, opening into a strange, new world. As you set your intention to stand upon this threshold, you again see myriad Ribbons of Light. Each Ribbon represents a different parallel reality that YOU created. When you stand upon this threshold, every thought and feeling that lingers in your consciousness will dictate the reality to which you will be attached.

You see that there are, in fact, millions of realities, as well as billions of possible realities. Your resonance will attract the reality that you enter, at the same time that it simultaneously creates it. It may be difficult to project this concept into your third dimensional brain, but spiritual growth is based on experience first and understanding second. It is the experience that allows you the wisdom of understanding. Experience is precisely why you decided to live in the third and fourth dimensional realities.

Feel the unconditional love of the Corridor push your towards the very edge of the sixth dimensional threshold. But, wait. Hold back a moment, and allow your resistance to build the oscillating force of unconditional love as it pulls your back into the Corridor, then pushes you out onto the threshold…

Again and again, you move back and forth, as your momentum grows stronger and stronger…
Feel yourself becoming the Corridor, becoming the threshold, becoming a new dimension, a new reality…

Now let go.
Let go!

Yes, you are there now. You are a being of pure light floating in a reality that looks somewhat like a lightning storm, only without the rain or thunder. Through the flashes of light, you see worlds, planets, stars and galaxies.

Suddenly, you are pulled into one of these flashes of light.  Feel yourself traveling through a long corridor that is more like a glass matrix. You can see each “possible reality” as it extends off from your tunnel, but you stay on a steady course.

Over, under, around and through you, realities co-exist in harmony and peace. However, you do not stop. You have set your intention for the reality in which your consciousness is currently grounded on third dimensional, ascending Earth.

You will choose any given reality with the power of your attention and intention. Hence, you view your many alternative worlds with detached compassion to remind you that no distraction will interfere with your journey.

Ah, here you are. You have arrived at the “programming station” for your current grounded reality. This life is very important, as it is the one in which you chose to participate in the planetary ascension.  You realize that many of the lives that you have passed on your journey to this “station” have been preparations for this planetary ascension life.

Feel yourself now without form. When you entered the sixth dimension, you become pure consciousness, and pure light. Send your Great Light and Love into the matrix of light of this reality so that you may login to your sixth dimensional SELF.

Within this matrix you feel your awareness flowing through many shapes and channels. You realize that there is a hub, or a heart, but you start at the periphery and flow inwards following the lay lines, the spiritual, electrical circuit board of the matrix for this reality.

You have entered a huge puzzle of light, traveling from all directions inward towards your center. Your pure Light and Love, the essence of your Creator SELF, is gradually merging inwards until it has filled each lay line of the Divine Matrix.

NOW, you have entered the Great Central Hub,
the heart, the core, the center, the ONE!
The All in ALL!

All the worlds, planets, stars, and galaxies, which you passed on your journey greet you in the NOW.  Once you are in the NOW, you are EVERY-WHERE and EVERY-WHEN.

From the EVERY-WHERE and EVERY-WHEN

You ARE the Universe that you observe
You ARE the Galaxy that you observe
You ARE the Planet that you observe
You ARE the Person that you observe

You ARE your SELF, silently observing your self!

Thank you for joining in the Arcturian Corridor.
If you are new to our journey please find the previous steps as a free download at http://www.multidim ensions.com/ TheVision/ books.html

Step 14 on are in the archived newsletters, starting with July 2009 at: http://www.multidim ensions.com/ TheVision/ integration_ newsletters. html

Multidimensional News by Suzan Caroll

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USA blamed for Haiti Earthquake!

Posted by Admin on January 27, 2010

On April 28, 1997 U.S. Defense Secretary William Cohen made the following statement:

“Others [terrorists] are engaging even in an eco-type of terrorism whereby they can alter the climate, set off earthquakes, volcanoes remotely through the use of electromagnetic waves. So there are plenty of ingenious minds out there that are at work finding ways in which they can wreak terror upon other nations.It’s real, and that’s the reason why we have to intensify our [counterterrorism] efforts.”

Secretary of Defense William Cohen at an April 1997 counterterrorism conference sponsored by former Senator Sam Nunn. Quoted from DoD News Briefing, Secretary of Defense William S. Cohen, Q&A at the Conference on Terrorism, Weapons of Mass Destruction, and U.S. Strategy, University of Georgia, Athens, Apr. 28, 1997.

Note that the Secretary did not speak the words in square blocks; these were added by the writers later, probably to “soften the tone” of the Secretary’s information release. So the Secretary confirmed that some nations of the world — not just some ragged terrorists, as the writers tried to imply for spin control — do possess novel electromagnetic weapons and are using them to induce earthquakes, engineer the weather and climate, and trigger volcanic eruptions.

In the case of Turkey, the quake might have been just another target practice shot by the KGB/Russians. In Russia, these weapons are totally under the control of the KGB, including research, development, manufacturing, deployment, and manning and firing the weapons. The weapons are not in the conventional Russian armed forces at all.

The weapons referred to by Secretary Cohen are longitudinal EM wave interferometers (LWIs). Longitudinal EM waves easily travel through the ocean and earth with very little loss. In a distant interference zone, there appears real EM energy again, of the kind we have in our textbooks. However, the energy arises from spacetime itself in the interference zone, as proven by M.W. Evans, P.K. Anastasovski, T.E. Bearden et al., “On Whittaker’s Representation of the Electromagnetic Entity in Vacuo: The Production of Transverse Fields and Energy by Scalar Interferometry,” Journal of New Energy, 4(3), Winter 1999, p. 76-78. (That entire issue of JNE contains some 60 papers by the Alpha Foundation’s Institute for Advanced Study (AIAS), dealing with the kind of higher symmetry electrodynamics needed to understand such weapons).

Though tested in prototype in the 1950s, the first strategic LWIs were deployed in Russia in April 1963, and were used to kill the U.S.S. Thresher nuclear attack submarine, underwater off the East coast of the United States, in April 1963. The signatures of the kill are 100% decisive. One day later, the same weapon placed an enormous electromagnetic burst (explosion) deep underwater, 100 miles north of Puerto Rico. From the surface of the ocean there arose a giant cone of water, rising a half mile into the air, turning into a mushroom, and falling back into the sea. This was the second test of the new Russian strategic LWIs, under KGB control. By this test and the fact that the West did not even recognize what killed the Thresher, Khrushchev managed to stay in power another two years or so, after his Cuban Crisis fiasco where he lost face in front of the entire world.

World-wide weather engineering started in earnest by the Russians on July 4, 1976 — as a quirky sense of humor and “bicentennial gift” to the United States.

The weapons have been used to shoot down aircraft, etc. worldwide also, mostly as tests, and have also destroyed ICBMs shortly after launch.

So while I cannot say for sure what generated the quake you spoke of, it easily could have been done by the KGB or by their protégées (a powerful and very wealthy rogue Japanese group, consisting of the Yakuza and the Aum Shinrikyo). At the end of 1989, the KGB/Russians — who had developed even more powerful weapons — leased many of their on-site earlier LWIs to a rogue Japanese group comprised of Yakuza and Aum Shinrikyo. Since then, weather control and engineering, and shoot-down of missiles and aircraft, have largely been done by this rogue group, under the close control of the KGB. Aircraft shot down included the TWA-800, e.g. and others.

The world is actually a secretly armed camp, armed to the teeth with unpublicized highly secret weapons, waiting to explode like a powderkeg at the touch of a match. These developments have eluded most of the scientific communities of the Earth (who are still mostly using a decrepit, hoary old U(1) electromagnetics theory put together in 1864, which is totally a material fluid flow theory and riddled with known errors, omissions, and curtailments). The developments over several decades also completely eluded the news media of the world, who are more concerned these days with yellow journalism than probing and investigating news. As an example, not a single news agency even reacted to the astounding revelation of Secretary Cohen, which merely shows how well the news media have brainwashed themselves with their own “formula news” and propaganda.

Presently, the world energy crisis — and particularly the “cheap oil” part of it — is being deliberately engineered from behind the scenes to escalate and place ever-increasing financial burdens on nations of the world. The plan is that the world economy is to be strained to the breaking point, so that it will begin seriously collapsing about 2008. A year or so before that (and perhaps even sooner), the despairing nations with their economies crumbling will be in increasingly great conflicts. This is rather like many independent and clashing servomechanisms, with the gain on their amplifiers being ever increased. Simple servo analysis shows such a system self-destructs because its conflict rises asymptotically to quick destruction.

In short, the nations of the world will unleash all the weapons of mass destruction in their arsenals; the only “defense” a nation has in the era of such mass weapons is to strike fast and with all its might, to destroy its perceived enemies before they destroy it. Years ago, all our strategic studies — back when we did them honestly and not for political correctness — clearly showed this “spasm response” by nations in total desperation; there was no other way out for any nation, once the WMD weapon arsenals start being used seriously. There is an immediate explosion that destroys civilization and contaminates much of the biosphere. The “High Cabal” (Winston’s Churchill’s name for that secretive group of financiers and loose cartels behind the several hundred interlocking corporations, etc. worldwide) wishes to remove about three-quarters of the population of the earth, as the “solution” to the “overpopulation” problem. They plan to escalate the energy crisis until it initiates the desired Armageddon for them. This plan has not changed since Bertrand Russell, one of their darlings because of his “logical positivism” (materialism by another name), made this astounding statement”

“At present the population of the world is increasing at about 58,000 per diem. War, so far, has had no very great effect on this increase, which continued throughout each of the world wars… War has hitherto been disappointing in this respect… but perhaps bacteriological war may prove effective. If a Black Death could spread through the world once in every generation, survivors could procreate freely without making the world too full. The state of affairs might be unpleasant, but what of it?” [Bertrand Russell, philosophical spokesman for a group of Westerners, in his Impact of Science on Society.]

If you will refer to Laurie Garrett’s “The Nightmare of Bioterrorism,” Foreign Affairs, 80(1), Jan./Feb. 2001, on p. xx you will find the following quotation:

“Were a terrorist to disperse the smallpox virus, for example, populations that were once universally vaccinated would now be horribly vulnerable. Today the U.S. government stows only about 15.4 million doses of the smallpox vaccine-enough for less than seven percent of the American population. The World Health Organization (WHO) keeps another 500,000 doses in the Netherlands, and other national stockpiles total about 60 million more doses of varying quality and potency. If the smallpox virus were released today, the majority of the world’s population would be defenseless, and given the virus’ 30 percent kill rate, nearly two billion people would die.”

The Russians/KGB also are using other weapons to “thin” the immune systems of the population of targeted areas, so that the 30% kill rate rises to 50% or more. And Russian secret BW labs also perfected additional strains of smallpox — which were clandestinely sold to some nations not very nice at all, for terrorists’ use. These strains are invulnerable to all present smallpox vaccines.

What is being prepared worldwide is a “mix” of all sorts of weapons and attacks — everything from terrorists armed with incredibly developed pathogens and already inserted in various nations, etc. — worldwide. Every major nation is also already “seeded” with clandestine nuclear weapons placed in its large cities, ready to annihilate them. E.g., the highest ranking GRU defector to the U.S. is Lunev. In his book (passed by the CIA), Lunev even tells some of the ways that the Russians secretly brought such nuclear weapons into the United States, easily. Quoting Stanislov Lunev and Ira Winkler, Through the Eyes of the Enemy: Russia’s Highest Ranking Military Defector Reveals Why Russia Is More Dangerous Than Ever, Regnery, Washington, D.C., 1998, p. 22:

“Though most Americans don’t realize it, America is already penetrated by Russian military intelligence to the extent that arms caches lie in wait for use by Russian special forces – or Spetznatz.” Quoting p. 26:

Quoting p. 26:

“It is surprisingly easy to smuggle nuclear weapons into the United States. A commonly used method is for a Russian airplane to fly across the ocean on a typical reconnaissance flight. The planes will be tracked by U.S. radar, but that’s not a problem. When there are no other aircraft in visual range, the Russian airplane will launch a small, high-tech, stealth transport missile that can slip undetected into remote areas of the country. The missiles are retrieved by GRU operatives. Another way to get a weapon into the country is to have an ‘oceanographic research’ submarine deliver the device-accompanied by GRU specialists-to a remote section of coastline. Nuclear devices can also be slipped across the Mexican or Canadian borders. It is easy to get a bomb to Cuba and from there transport it to Mexico. Usually the devices are carried by a Russian intelligence officer or a trusted agent.”

Quoting p. 30:

“Other instruments of destruction the Russians have had success with are seismic weapons. Spitac and other small towns in the Transcaucasus Mountains were almost destroyed during a seismic weapons test that set off an earthquake. This would have obvious applications on America’s west coast and other areas of the world prone to earthquakes.”

As you can see from the latter quotation, Lunev was actually referring to the LWIs and their use to initiate earthquakes, precisely what Secretary Cohen confirmed in 1997. Again, the news media are completely asleep.

Those planning the self-destruction of civilization about 2007, also appear to have lots of help from the quarreling nations themselves. The nations of the earth are so beset by petty quarrels (Arab against Jew, Jew against Arab, Saddam Hussein thirsting to disrupt and control the MidEast and much of the oil supply, one group against another) and so blinded by these “local” bloodthirsty concerns and so intent on killing one another that they become willing pawns and tools for manipulation upon the grand chessboard, not even realizing they are serving the ends of hidden game-players manipulating them as silly pawns.

At any rate, as a single citizen without great resources, all I can do is point these things out, and also work intensively on trying to solve or partially solve the energy crisis. On this latter we have made excellent progress in the last 30 years. Our technical understanding now is such that well-funded research can quickly break out into production of self-powering electrical power systems, easily manufactured, to replace the present incredibly wasteful power systems which in effect have us all by the throat (as California has just shown). Make no mistake, the rising energy needs and oil needs in Asia alone will reach the level of the energy needs of today’s United States, about 7-10 years from now. The day of “cheap oil” is ended, and the world will never be the same again. The economic collapse is coming this decade, unless this energy crisis is quickly and permanently solved.

The same hidden folks engineering the destruction of civilization have also engineered its plundering during the interim period while Armageddon is being prepared by the nations themselves. The globulists successfully passed great treaties (such as NAFTA, GATT, etc.) which meant that the manufacturing jobs are now being exported to those “emerging” nations (read: cheap slave labor nations) where workers have no rights, there are no pollution laws, politicians are bought for a song, etc. It is almost a return to a special kind of feudalism. So some two trillion dollars per year are to be extracted off the backs of those poor nations (slave laborers), and from the oil, etc. At Kyoto, they successfully fooled the environmentalists (who are extraordinarily naive about science) and got exemption for 160 nations — the very nations being used to play a major role in extracting the two trillion dollars per year from the economy of the world.

But we have the answer to the energy crisis, and it can be solved forever, once any nation commits sufficient scientific resources to do the rest of the research and development. We are placing information on the solution on our website, http://www.cheniere.org, as fast as we can. We are also trying to obtain substantial financing to go into intensive research and development on our own inventions in this field. There are other inventions by other inventors and scientists that can also take and use energy from the vacuum, and we strongly hope that every legitimate researcher succeeds in getting units onto the world market and helping to solve the energy crisis in time.

The energy crisis part of it can be solved completely in two years, if we can get the conventional scientific community uprooted from its terrible fascination with a horrible old electrodynamics riddled with errors, that absolutely excludes and does not even model the active vacuum interaction with every system. Generators and batteries in fact do not power their attached circuits anyway, but just make dipoles. The dipole — as is very well-known in particle physics — extracts energy from the vacuum, transforms it into usable, real EM energy, and pours out that energy in all directions, freely and indefinitely so long as the dipole exists. So the real problem is in the terrible “mindset” of the energy scientists and engineers. But real production electrical power systems have to be rolling off the assembly lines en masse no later than first quarter 2004, in spite of that mindset, or it is all over for civilization anyway.

We will continue to do everything we can to assist in meeting that “point of no return” in first quarter 2004. If that deadline is missed, humanity goes right down the tube to its destruction. The MidEast, e.g., is on the very brink of war right now, and if it explodes, it will also involve all the developed nations, with WMD strikes occurring right in their large population centers. In the U.S., e.g., we could wake up one morning and have 20 million Americans dying of anthrax, smallpox, etc. right in the streets.

Meanwhile, some nations such as the KGB/Russia along with their Yakuza/Aum Shinrikyo protégés are maneuvering in the shadows, continually attempting to arrange a great strategic strike that will devastate the entire West and its allies. That continues; we have narrowly avoided such strikes several times since January 1997.

Only time will tell how it all comes out. Just now the good guys are not doing very well, content in a complacent electrodynamics science obsolete after 136 years, and the bad guys are very far ahead. We hope to see that change very rapidly.

Thanks for your interest, and I hope this sheds some light in answer to your question,

Tom Bearden, Ph.D., LTC U.S. Army (Retired)

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How the Asian crisis was manufactured!

Posted by Admin on January 26, 2010

How the Asian crisis was manufactured by the Illuminati and the BIS

Many people, including some who should know better like Nobel prize winning economist Paul Krugman, believe the Asian crisis was an accident. It was no such thing. It was a deliberately planned attack aimed at stealing much of Asia’s wealth and weakening the Asian tigers.

The attack on Asia was two-pronged with one prong hitting South East Asia and the other aimed at Japan.

To attack Japan, the privately owned BIS (not accountable to any government on earth) changed its international banking rules in a way that deliberately weakened Japanese banks. They then forced (through threats of violence against Japan) the Japanese authorities to bankrupt one of their big so-called city banks. The Japanese chose the smallest of them: Hokkaido Takushoku Bank. When HTK went bankrupt over 1000 viable companies in Northern Japan were forced into insolvency. This meant that loans other Japanese banks had made to them had to be declared “bad.” The result was that all Japanese banks suddenly saw their BIS capital to asset ratio fall below the 8% needed to be allowed to engage in international banking. That meant they were all forced to “immediately” withdraw all their international loans, mostly made to Asia.

The Asian countries, meanwhile, were made extra vulnerable by a deliberate influx of “hot” money that created bubbles. As soon as the Japanese withdrew their loans, the “hot” money was also taken away, destroying the Asian economies. President Mahatir of Malaysia saved his country by seeing through the ruse and preventing the sudden withdrawal of “hot” money.

After the Asian economies collapsed, the carpet-baggers came in. “Hedge funds” and investment funds linked to the oligarchs came marching in and, using Japanese money, they bought up much of Asia’s economic infrastructure at a deep discount.

If the BIS and the IMF etc. were really concerned about economic development they would first of all never have forced HKT bank to go under in a disorderly manner. They would have also figured out a way for the Japanese banks to do something like issue subordinated bonds so they could bolster their BIS capital and not be forced to suddenly vacate Asia.

The criminals who carried this out think they got away with it but the Asians have long memories and they have identified the perpetrators of this attack.

The American economy has been subjected to a similar financial attack by the same group of criminals. They would do well to identify these gangsters and put them out of business for ever.

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Obama Administration’s Use of Drones Responsible for Increase in Civilian Deaths

Posted by Admin on January 26, 2010

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(Image: Jared Rodriguez / t r u t h o u t; Adapted: jeditrilobite, david.evenson)

Monday 25 January 2010 logo

by: William Fisher, t r u t h o u t | Report


The Obama administration is ramping up its use of drone unmanned aircraft to execute targeted killings in Afghanistan and Pakistan, and perhaps in other locations – and, in the process, killing civilians along with insurgents, and risking the compromise of US moral imperatives and foreign policy goals.

That’s the view of a leading civil rights organization, the American Civil Liberties Union (ACLU), which has filed a request under the Freedom of Information Act (FOIA), calling on the president to lift the curtain of secrecy and level with the American people.

The ACLU is asking the government to release basic information about its use of drones to execute targeted killings. The group believes that “the use and proliferation of this tactic must be the subject of public scrutiny and debate.” The strikes are reportedly being carried out both by US military forces and the CIA.

The request is seeking information, including who may be targeted and the geographical limits on where drone strikes may occur. It wants information about the scope and consequences of drone strikes, including a breakdown of the total number of people killed, the civilian casualty toll, the number of people killed who were fighters with the Afghan Taliban or al-Qaeda in Afghanistan or who had some other terror-related affiliation or status.

“The public has been kept in the dark and is therefore unable to assess the wisdom or legality of the strikes,” the group claimed.

“The use of drones to conduct targeted killings raises complicated questions – not just legal questions but policy and moral questions as well. These are not questions that should be decided behind closed doors. They are questions that should be debated openly, and the public should have access to information that would allow it to participate meaningfully in the debate,” according to Jameel Jaffer, director of the ACLU’s National Security Project.

One of the unmanned vehicles, known as the Predator, is capable of flying for hours, armed or unarmed, remotely controlled by pilots who are stationed thousands of miles away. The Predator is part of a growing number of similar craft that includes the Reaper and Raven as well as a new, high-tech video sensor system called the Gorgon Stare, which is being installed on Reapers.

The ACLU charged that the Obama administration has stepped up the use of drones to target individuals not only in Afghanistan, but also in Pakistan and perhaps other countries that are not active theaters of war.

“The use of unmanned drones to target and kill individuals is a profoundly new way of waging war. For the first time, military and intelligence officers can observe, track, and launch missiles at targeted individuals from control centers located thousands of miles away, without any significant US presence on the ground. The technology also permits the United States to target individuals nearly anywhere in the world,” the organization claimed.

The number of civilian casualties caused by drone attacks varies from the dozens to the hundreds. Human rights organizations are particularly concerned that drones could be used to target criminal suspects rather than legitimate military targets. Criminal suspects should be arrested and tried in civilian courts, the ACLU contended, adding that failure to do so could amount to “unlawful extrajudicial killings.”

The ACLU also raised concerns about the wisdom of using drones on policy and moral grounds.

“We hope that the Obama administration will live up to its professed commitments to transparency and openness in government and release this essential information in a timely manner,” the group said.

The increasing use of drones by the US has drawn sharp criticism from President Hamid Karzai of Afghanistan and Prime Minister Yousuf Raza Gilani and other high Pakistani officials.

Jonathan Manes, an ACLU attorney, told Truthout, “The Obama administration has stepped up the use of drones to target individuals not only in Afghanistan, but also in Pakistan, and that drones strikes might be authorized in other countries that are not active theaters of war.”

Pakistan said the strikes against suspected al-Qaeda and Taliban militants along its northwest violate its sovereignty. The attacks have resulted in serious anti-American feelings in Pakistan, which Washington sees as a critical ally in its war on extremism.

Gilani has told the press that drone attacks carried out on Pakistani soil were “counter-productive.” He said, “If the drone attacks had been useful, then we would have ourselves supported them.”

Gilani said the militants in the northwestern tribal areas bordering Afghanistan are strengthened by US missile strikes. “Our policy is to isolate militants from the local tribes, but drone attacks unite them,” he said.

His view was echoed by Pakistan’s Foreign Minister Shah Mehmood Qureshi, who told Reuters that intensified US drone aircraft attacks against Islamist militants in Pakistan could endanger relations between the two allies.

But when Secretary of State Hillary Clinton arrived in the Pakistani capital, Islamabad, she told a news conference the US was standing “shoulder to shoulder” with Pakistan in its military offensive. And the increased use of unmanned Predator drones is one of the highest profile ways the US is doing that.

The White House authorized an expansion of the CIA’s drone program in Pakistan’s tribal areas to parallel the president’s decision to send 30,000 more troops to Afghanistan. The New York Times reported that American officials are talking with Pakistan about the possibility of striking in Baluchistan for the first time – “a controversial move since it is outside the tribal areas – because that is where Afghan Taliban leaders are believed to hide.”

US strategy for eliminating safe havens for militants in the region turns on increasing covert pressure on al-Qaeda and its allies in Pakistan, while ground forces attempt to reverse the Taliban’s advances in Afghanistan.

Investigative reporter Jane Mayer of The New Yorker magazine has revealed that the number of US drone strikes in Pakistan has risen dramatically under President Obama. During his first 9.5 months in office, Obama authorized at least 41 CIA missile strikes in Pakistan, a rate of approximately one bombing a week. President Bush sanctioned approximately the same number of attacks in his final three years in office.

The attacks have killed between 326 and 538 people, according to Mayer. She wrote, “there is no longer any doubt that targeted killing has become official US policy.”

One of the most high-profile critics of the US drone program has been the United Nations human rights envoy, Philip Alston, the UN’s special rapporteur on extrajudicial, summary and arbitrary executions.

Alston told Amy Goodman of the Democracy Now! radio program that the US government’s use of Predator drones may violate international law. He also raised the issue in a report to the UN General Assembly’s Human Rights Committee and said the US should explain the legal basis for using unmanned drones for targeted killings.

In June, Alston presented a critical report on the drone program to the UN Human Rights Council, but he said US representatives ignored his concerns.

He said, “If you’re a Defense Department person, it’s a very attractive proposition. One can use the Predators without putting US servicemen in any harm. They are very effective. They can kill very significant numbers of people.”

But, he added, “The problem is that we have no real information on this program. What Jane Mayer exposed in her New Yorker piece is probably the most detailed information we have. She herself said that the CIA provides no information. It’s extraordinary that it’s the Central Intelligence Agency which is actually operating a missile program, which is actually deciding who to kill, when and where.”

Alston added, “There’s no accountability for it. There’s no indication of the rules that they use. So, I said before, there are rules, that it’s possible to justify a particular killing, but the CIA has never tried to do that. They have simply issued a general assurance: ‘No, no, everything’s fine. We really follow the rules, and we’re very careful.’ Well, if Israel or some other country that we’re scrutinizing says that, we say, ‘Sorry, guys, it’s not enough. We need to get the details’.”

Alston has called on the American government to make clear the details of the program; the legal basis, under US law, on which they are relying; the rules that they have put in place which govern the CIA actions, assuming there are rules; and what sort of accountability mechanisms they have. Do they review what they’ve done? They identify an individual. Often these identifications are very vague. But they say, “‘O.K., we’ve got X in our sights.’ Did they actually kill X? Did they kill someone else? How many other civilians did they kill? There’s never any accounting of that. And we need that sort of retrospective analysis, as well.”

He added that, in countries like Afghanistan and Iraq, “The United States has not done nearly enough, even today, to make sure that private military contractors do not carry out virtually all tasks, including, it seems, running a part of the drone program.”

But the drone program also has its fans. One of them is John Yoo, the former Office of Legal Counsel deputy who wrote the so-called “torture memos. ” Yoo appeared at the conservative American Enterprise Institute recently.

He said that in some areas, President Obama has gone beyond George W. Bush when it comes to the use of executive power. Yoo pointed toward the Obama administration’s increased use of predator drones overseas as an example.

“If we were still in peacetime, and this were the criminal justice system, police are not allowed to shoot missiles at people who might be criminals, might be about to commit a criminal act or might have committed a criminal act, even if we have a hard time finding and arresting them,” said Yoo. He added that in this area Obama has gone beyond Bush.

He said figuring out how to target terrorists is much more difficult because they do not wear uniforms or have territories. “It’s a complicated process that we had not had to think about before, but that doesn’t mean it’s not a war.”

Two leading US senators are also strong supporters of the drone program. They are Republican Sen. John McCain of Arizona and Joe Lieberman, Independent of Connecticut. Their recent visit to Islamabad underscored tensions between the anti-terrorist allies caused by strikes unmanned aircraft strikes against suspected Taliban and al-Qaeda targets.

“Friends don’t always agree on every issue,” Senator . McCain said at a news conference in Islamabad, adding that the United States will “try to find common ground” with Pakistani leaders on the drone issue, but that “we have to do everything we feel is necessary to protect Americans from the attacks of terrorists who may be based here.”

Pakistani President Asif Ali Zardari asked the senators to seek a halt to the drone attacks. He said they are undermining domestic support for the war against Islamist militants and asked that the United States give Pakistan the technology to carry out such strikes on its own.

Following the December 30 suicide bombing at a US base in eastern Afghanistan that killed seven CIA officers and contractors, Washington has also increased its use of the controversial strikes near the Afghan border. Suspected US missiles killed four people and injured three in the latest raid on the North Waziristan tribal area. That was the sixth attack in the region in a week, the Associated Press reported. The AP quoted two Pakistani intelligence officials, who said a pair of missiles struck a house and a vehicle in a village near the town of Miran Shah. They did not identify the victims.

It is the civilian deaths that are giving US policymakers serious headaches. The strategy outlined by Gen. Stanley McChrystal – and supported by Obama with the deployment of 30,000 additional troops – centers on protecting the Afghan people. It is unclear how killing civilians with drone attacks furthers that goal.

In a related development, military observers have revealed – and their revelations have been confirmed by the US military – that a new, “stealthy” US drone, nicknamed “The Beast,” is operating out of Kandahar, Afghanistan.

But they question what it’s doing there. One military web site wrote, “Since the Taliban do not have radar, why deploy an expensive, stealthy drone when conventional models like the Predator and Reaper work so well? And what’s the point of having a high-level, strategic craft in that theater?”

It says the speculation is that The Beast may be carrying out missions outside of Afghanistan, with Iran and Pakistan both being possible candidates.

The Air Force has confirmed The Beast’s existence to Aviation Week magazine. “Officially, it’s an RQ-170 Sentinel, developed by Lockheed and flown by the flown by the 30th Reconnaissance Squadron at Tonopah Test Range in Nevada,” the magazine reported.

And, in something of an embarrassment for the US military, The New York Times reported that insurgents in Iraq and Afghanistan have hacked into live video feeds from Predator drones, a key weapon in a Pentagon spy system that serves as the military’s eyes in the sky for surveillance and intelligence collection.

Though militants could see the video, The Times said there is no evidence they were able to jam the electronic signals from the unmanned aerial craft or take control of the vehicles, according to a senior defense official speaking on condition of anonymity.

Obtaining the video feeds can provide insurgents with critical information about what the military may be targeting, including buildings, roads and other facilities. The military has reportedly known about the vulnerability for more than a decade, but assumed adversaries would not be able to exploit it.

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What Cooked the World’s Economy?

Posted by Admin on January 26, 2010

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What Cooked the World’s Economy?

Tuesday 27 January 2009

http://www.truthout.org/013009T»

by: James Lieber, The Village Voice

It wasn’t your overdue mortgage.

It’s 2009. You’re laid off, furloughed, foreclosed on, or you know someone who is. You wonder where you’ll fit into the grim new semi-socialistic post-post-industrial economy colloquially known as “this mess.”

You’re astonished and possibly ashamed that mutant financial instruments dreamed up in your great country have spawned worldwide misery. You can’t comprehend, much less trim, the amount of bailout money parachuting into the laps of incompetents, hoarders, and miscreants. It’s been a tough century so far: 9/11, Iraq, and now this. At least we have a bright new president. He’ll give you a job painting a bridge. You may need it to keep body and soul together.

The basic story line so far is that we are all to blame, including homeowners who bit off more than they could chew, lenders who wrote absurd adjustable-rate mortgages, and greedy investment bankers.

Credit derivatives also figure heavily in the plot. Apologists say that these became so complicated that even Wall Street couldn’t understand them and that they created “an unacceptable level of risk.” Then these blowhards tell us that the bailout will pump hundreds of billions of dollars into the credit arteries and save the patient, which is the world’s financial system. It will take time – maybe a year or so – but if everyone hangs in there, we’ll be all right. No structural damage has been done, and all’s well that ends well.

Sorry, but that’s drivel. In fact, what we are living through is the worst financial scandal in history. It dwarfs 1929, Ponzi’s scheme, Teapot Dome, the South Sea Bubble, tulip bulbs, you name it. Bernie Madoff? He’s peanuts.

Credit derivatives – those securities that few have ever seen – are one reason why this crisis is so different from 1929.

Derivatives weren’t initially evil. They began as insurance policies on large loans. A bank that wished to lend money to a big, but shaky, venture, like what Ford or GM have become, could hedge its bet by buying a credit derivative to cover losses if the debtor defaulted. Derivatives weren’t cheap, but in the era of globalization and declining American competitiveness, they were prudent. Interestingly, the company that put the basic hardware and software together for pricing and clearing derivatives was Bloomberg. It was quite expensive for a financial institution – say, a bank – to get a Bloomberg machine and receive the specialized training required to certify analysts who would figure out the terms of the insurance. These Bloomberg terminals, originally called Market Masters, were first installed at Merrill Lynch in the late 1980s.

Subsequently, thousands of units have been placed in trading and financial institutions; they became the cornerstone of Michael Bloomberg’s wealth, marrying his skills as a securities trader and an electrical engineer.

It’s an open question when or if he or his company knew how they would be misused over time to devastate the world’s economy.

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Fast-forward to the early years of the Clinton administration. After an initial surge of regulatory behavior in favor of fair markets, especially in antitrust, that sort of behavior was abandoned, and free markets triumphed. The result was a morass of white-collar sociopathy at Archer Daniels Midland, Enron, and WorldCom, and in a host of markets ranging from oil to vitamins.

This was the beginning of the heyday of hedge funds. Unregulated investment houses were originally based on the questionable but legal practice of short-selling – selling a financial instrument you don’t own in hopes of buying it back later at a lower price. That way, you hedge your bets: You cover your investment in a company in case a company’s stock price falls.

But hedge funds later diversified their practices beyond that easy definition. These funds acquired a good deal of popular mystique. They made scads of money. Their notoriously high entry fees – up to 5 percent of the investment, plus as much as 36 percent of profits – served as barriers to all but the richest investors, who gave fortunes to the funds to play with. The funds boasted of having genius analysts and fabulous proprietary algorithms. Few could discern what they really did, but the returns, for those who could buy in, often seemed magical.

But it wasn’t magic. It amounted to the return of the age-old scam called “bucket shops.” Also sometimes known as “boiler rooms,” bucket shops emerged after the Civil War. Usually, they were storefronts where people came to bet on stocks without owning them. Unlike their customers, the shops actually owned blocks of stock. If customers were betting that a stock would go up, the shops would sell it and the price would plunge; if bettors were bearish, the shops would buy. In this way, they cleaned out their customers. Frenetic bucket-shop activity caused the Panic of 1907. By 1909, New York had banned bucket shops, and every other state soon followed.

In the mid-’90s, though, the credit-derivatives industry was hitting its stride and argued vehemently for exclusion from all state and federal anti-bucket-shop regulations. On the side of the industry were Federal Reserve Chairman Alan Greenspan, Treasury Secretary Robert Rubin, and his deputy, Lawrence Summers. Holding the fort for the regulators was Brooksley Born, who headed the Commodity Futures Trading Commission (CFTC). The three financial titans ridiculed the virtually unknown and cloutless, but brilliant and prophetic Born, who warned that unrestricted derivatives trading would “threaten our regulated markets, or indeed, our economy, without any federal agency knowing about it.” Warren Buffett also weighed in against deregulation.

But Congress loved Greenspan – a/k/a “the Maestro” and “the Oracle” – and Clinton loved Rubin. The sleepy hearings received almost no public attention. The upshot was that Congress removed oversight of derivatives from the CFTC and preempted all state anti-bucket-shop laws. Born resigned shortly afterward.

Soon, something odd started to happen. Legitimate big investors, often with millions of dollars to place, found that they couldn’t get into certain hedge funds, despite the fact that they were willing to pay steep fees. In retrospect, it seems as if these funds did not want fussy outsiders looking into what they were doing with derivatives.

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Imagine that a person is terminally ill. He or she would not be able to buy a life insurance policy with a huge death benefit. Obviously, third parties could not purchase policies on the soon-to-be-dead person’s life. Yet something like that occurred in the financial world.

This was not caused by imprudent mortgage lending, though that was a piece of the puzzle. Yes, Fannie Mae and Freddie Mac were put on steroids during the ’90s, and some people got into mortgages who shouldn’t have. But the vast majority of homeowners paid their mortgages. Only about 5 to 10 percent of these loans failed – not enough to cause systemic financial failure. (The dollar amount of defaulted mortgages in the U.S. is about $1.2 trillion, which seems like a princely sum, but it’s not nearly enough to drag down the entire civilized world.)

Much more dangerous was the notorious bundling of mortgages. Investment banks gathered these loans into batches and turned them into securities called collateralized debt obligations (CDOs). Many included high-risk loans. These securities were then rated by Standard & Poor’s, Fitch Ratings, or Moody’s Investors Services, who were paid at premium rates and gave investment grades. This was like putting lipstick on pigs with the plague. Banks like Wachovia, National City, Washington Mutual, and Lehman Brothers loaded up on this financial trash, which soon proved to be practically worthless. Today, those banks are extinct. But even that was not enough to cause a worldwide financial crisis.

What did cause the crisis was the writing of credit derivatives. In theory, they were insurance policies for investors; in practice, they became a guarantee of global financial collapse.

As insurance, they were poised to pay off fabulously when these weak bundled securities failed. And who was waiting to collect? Well, every gambler is looking for a sure bet. Most never find it. But the hedge funds and their ilk did.

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The mantra of entrepreneurial culture is that high risk goes with high reward. But unregulated and opaque derivatives trading was countercultural in the sense that low or no risk led to quick, astronomically high rewards. By plunking down millions of dollars, a hedge fund could reap billions once these fatally constructed securities plunged. Again, the funds did not need to own the securities; they just needed to pay for the derivatives – the insurance policies for the securities. And they could pay for them again and again. This was known as replicating. It became an addiction.

About $2 trillion in credit derivatives in 1989 jumped to $8 trillion in 1994 and skyrocketed to $100 trillion in 2002. Last year, the Bank for International Settlements, a consortium of the world’s central banks based in Basel (the Fed chair, Ben Bernanke, sits on its board), reported the gross value of these commitments at $596 trillion. Some are due, and some will mature soon. Typically, they involve contracts of five years or less.

Credit derivatives are breaking and will continue to break the world’s financial system and cause an unending crisis of liquidity and gummed-up credit. Warren Buffett branded derivatives the “financial weapons of mass destruction.” Felix Rohatyn, the investment banker who organized the bailout of New York a generation ago, called them “financial hydrogen bombs.”

Both are right. At almost $600 trillion, over-the-counter (OTC) derivatives dwarf the value of publicly traded equities on world exchanges, which totaled $62.5 trillion in the fall of 2007 and fell to $36.6 trillion a year later.

The nice thing about public markets is that they act as canaries that give warnings as they did in 1929, 1987 (the program trading debacle), and 2001 (the dot-com bubble), so we can scramble out with our economic lives. But completely private and unregulated, the OTC derivatives trade is justly known as the “dark market.”

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The heart of darkness was the AIG Financial Products (AIGFP) office in London, where a large proportion of the derivatives were written. AIG had placed this unit outside American borders, which meant that it would not have to abide by American insurance reserve requirements. In other words, the derivatives clerks in London could sell as many products as they could write – even if it would bankrupt the company.

The president of AIGFP, a tyrannical super-salesman named Joseph Cassano, certainly had the experience. In the 1980s, he was an executive at Drexel Burnham Lambert, the now-defunct brokerage that became the pivot of the junk-bond scandal that led to the jailing of Michael Milken, David Levine, and Ivan Boesky.

During the peak years of derivatives trading, the 400 or so employees of the London unit reportedly averaged earnings in excess of a million dollars a year. They sold “protection” – this Runyonesque term was favored – worth more than three times the value of parent company AIG. How could they have not known that they were putting at risk the largest insurer in the world and all the businesses and individuals that it covered?

This scheme that smacks of securities fraud facilitated the dreams of buyers called “counterparties” willing to ante up. Hedge fund offices sprouted in Kensington and Mayfair like mushrooms after a summer shower. Revenue from premiums for derivatives at AIGFP rose from $737 million in 1999 to $3.26 billion in 2005. Cassano reportedly hectored ever-willing counterparties to “play the power game” – in other words, gobble up all the credit derivatives backing CDOs that they could grab. As the bundled adjustable-rate mortgages ballooned, stretched home buyers defaulted, and the exciting power game became about as risky as blasting sitting ducks with a Glock.

People still seem surprised to read that hedge principals have raked in billions of dollars in a single year. They shouldn’t be. These subprime-time players knew how to score. The scam bled AIG white. In mid-September, when it was on the ropes, AIG received an astonishing $85 billion emergency line of credit from the Fed. Soon, that was supplemented by another $67 billion. Much of that money, to use the government’s euphemism, has already been “drawn down.” Shamefully, neither Washington nor AIG will explain where the billions went. But the answer is increasingly clear: It went to counterparties who bought derivatives from Cassano’s shop in London.

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Imagine if a ring of cashiers at a local bank made thousands of bad loans, aware that they could break the bank. They would be prosecuted for fraud and racketeering under the anti-gangster RICO Act. If their counterparties – the debtors – were in on the scam and understood that they didn’t have to pay off the loans, they could be charged, too. In fact, this scenario played out at subprime-pushing outlets of a host of banks, including Washington Mutual (acquired last year by JP Morgan Chase, which itself received a $25 billion bailout); IndyMac (which was seized by FDIC regulators); and Lehman Brothers (which went belly-up). About 150 prosecutions of this type of fraud are going forward.

The top of the swamp’s food chain, where the muck was derivatives rather than mortgages, must also be scrutinized. Apparently, that is the case. AIGFP’s Cassano has hired top white-collar litigator and former prosecutor F. Joseph Warin (profiled in the 2004 Washingtonian piece, “Who to Call When You’re Under Investigation!”). Neither Cassano nor his attorney responded to interview requests.

AIG’s lavishly compensated counterparties were willing participants and likewise could be considered for prosecution, depending on what they knew. Who were they?

At a 2007 conference, Cassano defined them as a “global swath” that included “banks and investment banks, pension funds, endowments, foundations, insurance companies, hedge funds, money managers, high-net-worth individuals, municipalities, sovereigns, and supranationals.” Abetting the scheme, ratings agencies like Standard & Poor’s gave high grades to the shaky mortgage-backed securities bundled by investment banks such as Goldman Sachs and Lehman Brothers.

After the relative worthlessness of these CDOs became clear, the raters rushed to downgrade them to junk status. This occurred suddenly with more than 4,000 CDOs in the first quarter of 2008 – the financial community now regards them as “toxic waste.” Of course, the sudden massive downgrading raises the question: Why had CDOs been artificially elevated in the first place, leading banks to buy them and giving them protective coloring just because the derivatives writers “insured” them?

After the raters got real (i.e., got scared), the gig was up. Hedge funds fled in droves from their luxe digs in London. The industry remains murky, but some observers feel that more than half of all hedges will fold this year. Not necessarily a good sign, it seems to show that the funds were one-trick ponies living mainly off the derivatives play.

We know that AIG was not the only firm that sold derivatives: Lehman and Bear Stearns both dealt them and died. About 20 years ago, JP Morgan, the now-defunct investment bank, had brought the idea to AIGFP in London, which ran with it. Seeing the Cassano group’s success, Morgan jumped in with both feet. Specializing in credit default swaps – a type of derivative triggered to pay off by negative events in the lives of loans, like defaults, foreclosures, and restructurings – Morgan had a distinctive marketing spin. Its “quants” were classy young dealers who could really do the math, which of course gave them credibility with those who couldn’t. They abjured street slang like “protection.” They pitched their sophisticated swaps as “technologies.” The market adored them. They, in turn, oversold the product, made huge commissions, and wounded Morgan, which had to sell itself to Chase, becoming JP Morgan Chase – now the country’s biggest bank.

Today, the real question is whether the Morgan quants knew the swaps didn’t work and actually were grenades with pulled pins. Like Joseph Cassano, such people should consult attorneys.

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Secrecy shrouds the bailout. The 21 banks that each received more than $1 billion from the Fed won’t disclose how, or even if, they’re lending it, which hardly quells fears of hoarding. The Treasury says it can’t force disclosure because it took only preferred (non-voting) stock in exchange for the money.

If anything, the Fed had been less candid. It stonewalls requests to reveal the winners (mainly banks and corporations) of $1.5 trillion in loans, as well as the securities it received as collateral. A Freedom of Information Act (FOIA) suit to obtain this information by Bloomberg News has been rebuffed by the Fed, which insists that a loophole in FOIA exempts it. Bloomberg will probably lose the case, but at least it’s trying to probe the black hole of bailout money. Of course, Barack Obama could tell the Fed to release the information, plus generally open the bailout to public eyes. That would be change that we could believe in.

As for Bloomberg, its business side, Bloomberg L.P., has been less than forthcoming. Requests to interview someone from the company – and Michael Bloomberg, who retains a controlling interest – about the derivatives trade went unanswered.

In his economic address at Cooper Union last spring, Obama argued for new regulations, which he called “the rules of the road,” and for a $30 billion stimulus package, that now seems quaint. In the OTC swaps trade, the Bloomberg L.P.’s computer terminals are the road, bridges, and tunnels for “real-time” transactions. The L.P.’s promotional materials declare: “You’re either in front of a Bloomberg or behind it.” In terms of electronic trading of certain securities, including credit default swaps: “Access to a dealer’s inventory is based upon client relationships with Bloomberg as the only conduit.” In short, the L.P. looks like a dominant player – possibly, a monopoly. If it has a true competitor, I can’t find it. But then, this is a very dark market.

Did Bloomberg L.P. do anything illegal? Absolutely not. We prosecute hit-and-run drivers, not roads. But there are many questions – about the size of the derivatives market, the names of the counterparties, the amount of replication of derivatives, the role of securities ratings in Bloomberg calculations (in other words, could puffing up be detected and potentially stop a swap?), and how the OTC industry should be reported and regulated in order to prevent future catastrophes. Bloomberg is a privately held company – to the chagrin of would-be investors – and quite private about its business, so this information probably won’t surface without subpoenas.

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So what do we do now? In 2000, the 106th Congress as its final effort passed the Commodity Futures Modernization Act (CFMA), and, disgracefully, President Clinton signed it. It opened up the bucket-shop loophole that capsized the world’s economic system. With the stroke of a presidential pen, a century of valuable protection was lost.

Even with that, the dangerous swaps still almost found themselves subjected to state oversight. In 2000, AIG asked the New York State Insurance Department to decide if it wanted to regulate them, but the department’s superintendent, Neil Levin, said no. The question was not posed by AIGFP, but by the company’s main office through its general counsel, a reminder that not long ago, AIG was a blue chip with a triple-A rating that touted its integrity.

We can’t know why Levin rejected the chance to regulate the tricky trade. He died in the restaurant at the top of the World Trade Center on the morning of 9/11. A Pataki-appointed former Goldman Sachs vice president, Levin may have shared other Wall Streeters’ love of derivatives as the last big-money sure thing as the IPO craze wound down. Or maybe he saw swaps as gambling rather than insurance, hence beyond his jurisdiction. Regardless, current Insurance Superintendent Eric Dinallo told me, “I don’t agree with his answer.” Maybe the economic crisis could have been averted if Levin had answered otherwise. “How close we came …” Dinallo mused.

Deeply occupied with keeping AIG, the parent company, afloat since the bailout, Dinallo saw the carnage that the swaps caused and, with the support of Governor Paterson, pushed anew for regulatory oversight, a position also adopted by the President’s Working Group (PWG), which includes the Treasury, Fed, SEC, and CFTC.

But regulation isn’t enough to stop a phenomenon called “de-supervision” that occurs when officials can’t, or won’t, oversee a market. For instance, the Fed under Greenspan had authority to regulate mortgage bankers and brokers, the industry’s cowboys who kicked off this fiasco. Because Greenspan’s libertarian sensibilities prevented him from invoking the Fed’s control, the mortgage market careened corruptly until the wheels came off. Notoriously lax and understaffed, the SEC did nothing to limit investment banks that bundled, pitched, and puffed non-prime mortgages as the raters cheered. It’s doubtful that any agency can be relied on to control lucrative default swaps, which should be made illegal again. The bucket-shop loophole must be closed. The evil genie should go back in the bottle.

Will Obama re-criminalize these financial weapons by pushing for repeal of the CFMA? This should be a no-brainer for Obama, who, before becoming a community organizer in Chicago, worked on Wall Street, studied derivatives, and by now undoubtedly knows their destructive power.

What about the $600 trillion in credit derivatives that are still out there, sucking vital liquidity and credit out of the system? It’s the tyrannosaurus in the mall, the one that made Henry Paulson, the former Treasury Secretary who looks like Daddy Warbucks, get down on his knees and beg Nancy Pelosi for a bailout.

Even with the bailout, no one can get their arms around this monster. Obviously, the $600 trillion includes not only many unseemly replicated death bets, but also some benign derivatives that creditors bought to hedge risky loans. Instead of sorting them out, the Bush administration tried to protect them all, while keeping the counterparties happy and anonymous.

Paulson has taken flack for spending little to bring mortgages in line with falling home values. Sheila Bair, the FDIC chief who often scrapped with Paulson, said this would cost a measly $25 billion and that without it, 10 million Americans could lose their homes over the next five years. Paulson thought it would take three times as much and balked. Congress is bristling because the Emergency Economic Stabilization Act (EESA) could provide mortgage relief – and some derivatives won’t detonate if homeowners don’t default. Obama’s nominee for Treasury Secretary, Timothy Geithner, could back such relief at his hearings.

The other key appointment is attorney general. A century ago, when powerful trusts distorted the market system, we had AGs who relentlessly tracked and busted them. Today’s crisis is missing, so far, an advocate as dynamic and energetic as the mortgage bankers, brokers, bundlers, raters, and quants who, in a few short years, littered the world with rotten loans, diseased CDOs, and lethal derivatives. During the Bush years, white-collar law enforcement actually dropped as FBI agents were transferred to antiterrorism. Even so, according to William Black, an effective federal litigator and regulator during the 1980s savings-and-loan scandal, by 2004, the FBI perceived an epidemic of fraud. Now a professor of law and finance at the University of Missouri-Kansas City, Black has testified to Congress about the current crisis and paints it as “control fraud” at every level. Such fraud flows from the top tiers of corporations – typically CEOs and CFOs, who control perverse compensation systems that reward cheating and volume rather than quality, and circumvent standard due diligence such as underwriting and accounting. For instance, AIGFP’s Cassano reportedly rebuffed AIG’s internal auditor.

The environment from the top of the chain – derivatives gang leaders – to the bottom of the chain – subprime, no-doc loan officers – became “criminogenic,” Black says. The only real response? Aggressive prosecution of “elites” at all stages in this twisted mess. Black says sentences should not be the light, six-month slaps that white-collar criminals usually get, or the Madoff-style penthouse arrest.

As staggering as the Madoff meltdown was, it had a refreshing side – the funds were frozen. In the bailout, on the other hand, the government often seems to be completing the scam by quietly passing the proceeds to counterparties.

The advantage of treating these players like racketeers under federal law is that their ill-gotten gains could be forfeited. The government could recoup these odious gambling debts instead of simply paying them off. In finance, the bottom line is the bottom line. The bottom line in this scandal is that fantastically wealthy entities positioned themselves to make unfathomable fortunes by betting that average Americans – Joe Six-Packs and hockey moms – would fail.

Black suggests that derivatives should be “unwound” and that the payouts cease: “Close out the positions – most of them have no social utility.” And where there has been fraud, he adds, “clawback makes perfect sense.” That would include taking back the ludicrously large bonuses and other forms of compensation given to CEOs at bailed-out companies.

No one knows how much could be clawed back from the soiled derivatives reap. Clearly, it’s not $600 trillion. William Bergman, formerly a market analyst at the Chicago Fed in “netting” – what’s left after financial institutions pay each other off for ongoing deals and debts – makes a “guess” that perhaps only 5 percent could be recouped, which he concedes is unfortunately low. Still, that’s $30 trillion, a huge number, more than 10 times what the Fed can deploy and over twice the U.S. gross domestic product. Such a sum, if recovered through the criminal justice process, could ease the liquidity crisis and actually get the credit arteries flowing. Not everyone would like it. What’s left of Wall Street and hedge funds want their derivatives gains; so do foreign banks.

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A tangle of secrecy, conflicts of interest, and favoritism plagues the process of recovery.

Lehman drowned, but Goldman Sachs, where Paulson was formerly CEO, was saved. The day before AIG reaped its initial $85 billion bonanza, Paulson met with his successor, Lloyd Blankfein, who reportedly argued that Goldman would lose $20 billion and fail unless AIG was rescued. AIG got the money.

Had Goldman bought from AIG credit derivatives that it needed to redeem? Like most other huge financial traders, Goldman has a secretive hedge fund, Global Alpha, that refuses to reveal its transactions. Regardless, Paulson’s meeting with Blankfein was a low point. If Dick Cheney had met with his successor at Halliburton and, the very next day, written a check for billions that guaranteed its survival, the press would have screamed for his head.

The second most shifty bailout went to Citigroup, a money sewer that won last year’s layoff super bowl with 73,000. Instead of being parceled to efficient operators, Citi received a $45 billion bailout and $300 billion loan package, at least in part because of Robert Rubin’s juice. While Treasury Secretary under Clinton, Rubin led us into the derivatives maelstrom, deported jobs with NAFTA, and championed bank deregulation so that companies like Citi could mimic Wall Street speculators. After he joined Citi’s leadership in 1999, the bank went long on mortgages and other risks du jour, enmeshed itself in Enron’s web, tanked in value, and suffered haphazard management, while Rubin made more than $100 million.

Rubin remained a director and “senior counselor” at Citi until January 9, 2009, and is an economic adviser to Obama. In truth, he probably shouldn’t be a senior counselor anywhere except possibly at Camp Granada. Like Greenspan, he should retire before he breaks something again, and we have to pay for it. (Incidentally, the British bailout, which is more open than ours and mandates mortgage relief, makes corporate welfare contingent on the removal of bad management.)

The third strangest rescue involved the Fed’s announcement just before Christmas that hedge funds for the first time could borrow from it. Apparently, the new $200 billion credit line relates to recently revealed securitized debts including bundled credit card bills, student loans, and auto loans. Obviously, it’s worrisome that the crisis may be morphing beyond its real estate roots.

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To say the bailout hasn’t worked so far is putting it mildly. Since the crisis broke, Washington’s reaction has been chaotic, lenient to favorites, secretive, and staggeringly expensive. An estimated $7.36 trillion, more than double the total American outlay for World War II (even correcting for inflation), has been thrown at the problem, according to press reports. Along the way, banking, insurance, and car companies have been nationalized, and no one has been brought to justice.

Combined unemployment and underemployment (those who have stopped looking, and part-timers) runs at nearly 20 percent, the highest since 1945. Housing prices continue to hemorrhage – last fall’s 18 percent drop could double. Holiday shopping fizzled: 160,000 stores closed last year, and 200,000 more are expected to shutter in ’09. Some forecasts place eventual retail darkness at 25 percent. In 2008, the Dow dropped further – 34 percent – than at any time since 1931. There is no sound sector in the economy; the only members of the 30 Dow Jones Industrials posting gains last year were Wal-Mart and McDonald’s.

Does Obama’s choice for attorney general, Eric Holder, have the tenacity and will to tackle the widest fraud in American history? Parts of his background don’t necessarily augur well: He worked on a pardon for Marc Rich, the fugitive billionaire tax evader once on the FBI’s Most Wanted List whom Clinton cleared. After leaving the Clinton era’s Justice Department, Holder went to work for Covington & Burling, a D.C. firm that represents corporate heavies including Big Tobacco. He defended Chiquita Brands in a notorious case, in which it paid a $25 million fine for using terrorists in Columbia as security. Holder fits well within the gaggle of elite D.C. lawyers who move back and forth between government and defending corporate criminals. He doesn’t exactly have the sort of résumé that startles robber barons.

Can Holder design and orchestrate a muscular legal response, including prosecution and stern punishment of top executives, plus aggressive clawbacks of money? There seems little question that he has the skill, so the decision on how aggressive the Justice Department will be is up to Obama.

Holder could ask for and get well-organized FBI white-collar teams. The personnel hole caused by shifts to antiterrorism would have to be more than filled to their pre-9/ll staffing if the incoming administration decides to break this criminogenic cycle rather than merely address it symbolically.

Black contends that aggressive prosecution would be good for the economy because it may help prevent cheating and fraud that inevitably cause bubbles and destroy wealth. The Sarbanes-Oxley law passed in Enron’s wake, for instance, is supposed to make corporations now keep the kinds of documents necessary to assess criminality. Whether the CEOs, CFOs, and others who controlled the current frauds will do so is another matter.

“Don’t count on them keeping records for long,” Black warns. “It’s time to get out the subpoenas.”

——-

James Lieber is a lawyer whose books on business and politics include “Friendly Takeover” (Penguin) and “Rats in the Grain” (Basic Books). This is his fifth article for The Voice.

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What are the Chances of a Nuclear War?

Posted by Admin on January 26, 2010

October 10, 2009

By Steve Beckow

Speaking at a Project Camelot Conference today in Brussels, George Green said that he saw a war with China in our near future.

http://www.ustream.tv/recorded/2325758

How likely is a war with China?  For that matter, how likely is a war between any of the nuclear powers?

Let us ask that question of Mike Quinsey’s group, Sheldan Nidle’s Spiritual Hierarchy and Galactic Federation, and Matthew Ward, who are, in my opinion, our most credible sources.

SaLuSa is very certain about the matter: “There will be no nuclear war or that type of aggression.” (1)    He reports that the galactics “can easily [quiet] the guns of war if there is any need to do so.” (2)

He lets it be known that “we are in contact with your leaders, and they have been warned that certain conduct will not be allowed that seriously endangers you.” (3)

“Regardless of what threats are perceived, you will not be involved in a nuclear exchange or war. Your governments are aware of this edict from us, but still use such threats against each other. …

“There is talk of further wars but we assure you that it is no longer part of your future. We have informed your governments and military that nuclear weapons will not be allowed, and have proved we are as good as our word. We are here to lead you into a peaceful era that will allow for the restoration of your planet, and for a quantum leap forward into the Light.” (4)

Diane of Sirius assures us that the galactics are well “abreast of what is taking place, and have a total picture of the likely outcome of the impetus created by you. … We are ready to seize control on your behalf as soon as it is practical to do so and prevent any madcap actions by the dark as they contemplate defeat. We know exactly how they think and will curtail any attempts to prevent the Light from manifesting on your world.  (5)

Atmos tells us that the galactics have shielded the rest of the universe from our nuclear destructiveness:  “Nuclear weapons are an abomination that is so destructive, even to the point of damaging the souls of those in their path. Fortunately, in the past where you have let off nuclear devices, we have placed a protective shield around your Earth to prevent damage to the outer planets, and life forces in Space.” (6)

He tells us that the Galactic Federation has been protecting Earth for millennia against its own destructiveness:

“On more than one occasion, you were intending to bring about a nuclear war. … Your actions could have destroyed your Earth. We wish you to be aware that we have acted as your guardians for many thousands of years and you would not have been where you are now without our help, indeed you would not have reached this high point in evolution.” (7)

Ker-On of Venus offers us his guarantee that the galactics will protect us from ourselves:

“We shall ensure that there is no interference from the dark forces [in Ascension], as their power will have been removed from them. Already we curtail their ability to cause more wars and use their nuclear weapons and we know that it has been their objective in the Middle East.” (8)

Like Atmos, he assures us that the galactics have saved us from our own destructiveness:

“We follow your development and, since you entered the Nuclear Age, have come a lot closer. Our service to Humanity has been to make sure that you complete this cycle, and that both you and the Earth are not destroyed. You have come close to doing so on a number of occasions and we have prevented it. It is fortunate that the Divine Plan for you requires that you see this cycle out to the end, which is but a few years away. (9)

Unequivocably he tells us there will be no nuclear war:

“No matter what rhetoric passes between different countries that confront each other, we give an absolute assurance that there will not be another nuclear war. It will simply not be allowed, and soon the weapons of war shall be completely silenced forever. (10)

The Spiritual Hierarchy and Galactic Fderation (SHGF), speaking through Sheldan Nidle, say they “are confident that the need for a rapid deployment of our forces in response to some dark-induced craziness is unlikely. Until the mass landing date, we will need to intercede only when necessary to prevent nuclear disaster or stop events from getting out of hand. By this we mean an event that swiftly escalates into something serious.”  (11)

Speaking for the terrestrial and spiritual side, Matthew Ward tells us that stopping nuclear wars is the one area of human life where the 2012 team has Creator’s consent to intervene.

“Creator made this single exception to Its law that all souls’ free will must be honored: There will be no more nuclear wars, and spiritually evolved civilizations are authorized to use their technology to prevent any attempts to initiate one. That is why we have been able to repeatedly and confidently assure you that there will be no nuclear war on Earth.

So there is no possibility of planetary-wide destruction. (12)

In answer to “several issues that keep popping up in Internet articles or channeled messages,” Matthew assured us that “There will be no war with Iran … Russia will not engage in a major war and neither will China.”  (13)

On the basis of this, and insofar as this information is true, as I believe it to be, I think I can say unequivocally that George Green’s predictions of  a near-future war with China have no substance to them and no chance of materializing.

Namaste,

Steve

Footnotes

(1) SaLuSa, Feb. 18, 2009 at http://www.treeofthegoldenlight.com/First_Contact/Channeled_Messages_by_Mike_Quinsey.htm.)

(2) SaLuSa of Sirius, Dec. 8, 2008, ibid.

(3) SaLuSa, March 20, 2009, ibid.

(4) SaLuSa, Nov. 14, 2008, ibid.

(5) Diane of Sirius, Aug. 6, 2008, at http://www.treeofthegoldenlight.com/First_Contact/Channeled_Messages_by_Mike_Quinsey.htm.

(6) Atmos, Dec. 17, 2008, at http://www.treeofthegoldenlight.com/First_Contact/Channeled_Messages_by_Mike_Quinsey.htm.

(7) Atmos,  Oct. 13, 2008, at http://www.treeofthegoldenlight.com/First_Contact/Channeled_Messages_by_Mike_Quinsey.htm.

(8) Ker-On, Nov. 3, 2008, at http://www.treeofthegoldenlight.com/First_Contact/Channeled_Messages_by_Mike_Quinsey.htm.  He adds: “The line has been drawn against certain activities that would endanger life on and beyond your Earth, and [the dark] are therefore curtailed in what they can do.” (Ker-On of Venus, Oct. 22, 2008, at http://www.treeofthegoldenlight.com/First_Contact/Channeled_Messages_by_Mike_Quinsey.htm.)

(9) Ker-On of Venus, Oct. 22, 2008, ibid.

(10) Ker-On, Sept. 8, 2008, ibid.

(11) Spiritual Hierarchy and Galactic Federation, “Update,” through Sheldan Nidle, Aug. 12, 2008 at http://www.paoweb.com/sn081208.htm.

(12) Matthew’s Message, March 10, 2009, at http://www.matthewbooks.com/mattsmessage.htm.

(13) Matthew’s Message,  Sept. 24, 2008, ibid.

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$5.4B NY housing complexes go to Creditors

Posted by Admin on January 25, 2010

AP - FILE - The Peter Cooper Village and Stuyvesant Town apartment complex is seen in New York in this ...

The Peter Cooper Village and Stuyvesant Town apartment complex is seen in New York in this image.

ap

On Monday January 25, 2010, 6:53 am EST

NEW YORK (AP) — The financially troubled owners of two massive apartment complexes that sold for a record $5.4 billion a few years ago said Monday they’re turning them over to their creditors.

The joint venture ownership team led by Tishman Speyer Properties and BlackRock Realty, hurt by the real estate market collapse, couldn’t make a multimillion-dollar loan payment earlier this month for the Stuyvesant Town and Peter Cooper Village apartments in Manhattan.

Over the last few days it became clear the only viable alternative to bankruptcy would be to transfer to lenders control and operation of the 110 buildings and 11,000 apartments overlooking the East River, partnership spokesman Bud Perrone said.

“We make this decision as we feel a battle over the property or a contested bankruptcy proceeding is not in the long-term interest of the property, its residents, our partnership or the city,” Perrone said in an e-mailed statement.

The group bought the complexes, which have about 25,000 tenants, in 2006 at the height of the real estate bubble in the nation’s largest residential real estate deal.

The record purchase price seemed outrageous to many real estate analysts, but the partnership believed it had a winning strategy: It would aggressively convert thousands of rent-regulated apartments occupied by middle-class families into luxury units that would fetch top dollar.

But the tactic was a bust as the city’s housing market cooled considerably. Ratings firms estimated the value of the 80-acre area had fallen to as little as $2 billion — far less than the outstanding loan balance.

Apartment conversions happened much slower than expected, tenants fought back and a state court ruled that about $200 million in the partnership’s new rent increases was improper.

The group, which used a $3 billion mortgage and a $1.4 billion secondary loan to buy the properties, had been trying to restructure its debt. It couldn’t make a $16 million loan payment due Jan. 8.

Analysts had been expecting the ownership group to default on its loan for several months.

It hasn’t been determined when the ownership transfer of the sister properties will take place and who specifically the new owners will be, Perrone said.

Tishman Speyer, whose other properties include Rockefeller Center and the Chrysler Building, said it wouldn’t consider a long-term management contract to continue operating the apartment complexes if it didn’t involve ownership. It said it was committed to an efficient transition of the properties’ operations and would manage them during that transition.

The housing complexes, which are so big they have their own newspaper, were built by Metropolitan Life in the 1940s for returning World War II veterans. MetLife Inc. decided to sell them in 2005, when real estate prices were soaring.

Tenants launched their own bid to take over the 11,227 units, three out of four of which were rent-stabilized and priced far below the market rate, before MetLife announced it had closed a deal with the partnership led by Tishman Speyer and BlackRock.

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