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Posts Tagged ‘European Union’

Why Portugal May Be the Next Greece

Posted by Admin on May 22, 2012

http://business.time.com/2012/03/27/why-portugal-may-be-the-next-greece/

Why Portugal May Be the Next Greece

The worst is over for the euro zone, the experts say. But Greece isn’t really fixed and Portugal could become a second big problem before year-end

By Michael Sivy | @MFSivy | March 27, 2012

When Greece celebrated its Independence Day on Sunday, there were scattered protests over the harsh austerity program aimed at stabilizing the country’s finances. The government reportedly removed low-hanging fruit from bitter-orange trees along the parade route, so it couldn’t be thrown by protesters. But, basically, the most recent bailout appears to be successful. As a result, worries about the European financial crisis have diminished somewhat. Indeed, European Central Bank president Mario Draghi has said that the worst is over for the euro-currency zone.

Such optimism may be premature, however. Not only does Greece remain a long-term financial concern, but in addition Portugal is on track to become a second big problem.

The dangers Greece still poses are clear. Higher taxes and government-spending cuts may reduce new borrowing, but such austerity policies also undermine a country’s ability to pay the interest on its existing debt. Unless accompanied by progrowth policies, austerity can become the financial equivalent of a medieval doctor trying to cure patients by bleeding them. In addition, the bailout plan for Greece consisted of marking down the value of much of the country’s debt held by banks and other private lenders. That means entities such as the European Central Bank now hold most of Greece’s remaining debt. And so, in the event of a default, important international institutions would suffer the greatest damage.

(MORE: Is Germany’s Euro-Crisis Strategy Actually Working?)

The net result has been to postpone the Greek financial crisis for months or even a couple of years, while raising the stakes if things go wrong. That could be seen as a considerable achievement, if you believe Greece is a unique case and that the problem has been successfully contained. The trouble is that other countries — and especially Portugal — seem to be heading down the same path. Here’s why forecasters are worried:

Portuguese interest rates haven’t come down. Because of the Greek crisis, bond yields rose to dangerous levels in several financially troubled European countries. Then after Greece was bailed out, yields fell in most of them. In Italy, yields on bonds with maturities of around 10 years dropped from more than 7.2% to around 5%; in Spain, from 6.7% to 5.4%; and in Ireland, from 9.7% to 6.9%. The notable exception was Portugal, where bond yields came down a bit but still remain above 12%. Double-digit borrowing costs are impossible for a heavily indebted country to sustain for any significant period of time. Yet Portugal’s bond yields have been above 10% for the past nine months.

Portugal’s total debt is greater than that of Greece. In one way, Greece really is unique — the country’s massive debt is largely the result of borrowing by the government rather than by the private sector (corporations and households). By contrast, Portugal, Spain and Ireland have far more private-sector debt. As a result, while government debt in Portugal is less than that of Greece, relative to GDP, total debt (including private-sector debt) is actually greater.

(MORE: The Most Important Man in Europe)

The Portuguese economy is shrinking. Portugal’s economy has been weak ever since the financial crisis began in 2008, and the country has actually been in recession for more than a year. Moreover, last month the Portuguese government projected that the country’s economy would contract by 3.3% in 2012. As Portuguese companies struggle to pay off their own massive debt, it’s hard to imagine that they will be able to help pull the country out of recession.

Thanks to a bailout last year, Portugal has enough money to make it into 2013, despite brutally high interest rates and a shrinking economy. But the markets are unlikely to wait that long to go on red alert. In the case of Greece, bond yields topped 13% in April 2011, and by September they were above 20% and heading for 35%. Portuguese yields have been above 11.9% for the past four months and have topped 13% several times. If the country follows the same timeline as Greece, Portugal could suffer a serious financial crisis before the end of the year.

There are a number of reasons such an outcome would be serious, despite the relatively small size of Portugal’s economy. First, the European Union has been operating on the assumption that Greece is a unique case, a poor country suffering from rampant tax fraud and an unusually dysfunctional government bureaucracy. If another euro-zone country experiences similar problems — and they occur partly because of private-sector debt rather than government borrowing — then the flaws in the system start looking more general, and the stability of the entire euro zone is called into question.

(LIST: The 10 Most Memorable Ads Featuring Celebrities And Their Kin)

Moreover, much of the borrowing by Portuguese companies has been financed by Spanish banks. That creates the possibility of a domino effect, whereby a financial squeeze in Portugal leads to a crunch in the Spanish banking sector. Moreover, the debt structure in both Spain and Ireland — with large amounts of private-sector borrowing — is similar to that of Portugal. Germany and the Netherlands are already balking at making further loans to Greece. And although Northern European countries could afford to bail out Portugal, their resources are limited. If a second country goes the way of Greece, several more might well follow.

Since Europe’s problems seem to have receded for the moment, U.S. investors are understandably focused on other risks — like conflict with Iran that could sharply push up oil prices, or fights over taxes and the federal budget in the run-up to the elections. But the danger of a European financial crisis has not gone away — and the ultimate costs could run to more than half a trillion dollars.

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Euro Crisis: Why a Greek Exit Could Be Much Worse than Expected

Posted by Admin on May 22, 2012

http://news.yahoo.com/euro-crisis-why-greek-exit-could-much-worse-082511184.html

Euro Crisis: Why a Greek Exit Could Be Much Worse than Expected

By MICHAEL SIVY | Time.com – 4 hrs ago

 At the Camp David G8 meeting last weekend, lip service was paid to keeping Greece in the euro zone. But economists who watch the continuing financial crisis in Europe are increasingly coming to two conclusions: Greece is likely to abandon the common euro currency now used by 17 European countries. And when it does, perhaps within a matter of months, there will be a damaging domino effect throughout much of Europe. Not all domino effects are created equal, however. And there are two possible consequences if Greece leaves the euro zone that few observers seem to have considered.

The scenario everyone recognizes is based on Greece reviving its traditional drachma currency. What this means is that salaries and prices within Greece would be converted from euros to drachmas, and then the drachma currency would be allowed to depreciate to make the Greek economy more competitive. The problem comes with debts that are denominated in euros, especially if the lenders are outside of Greece. These lenders would naturally resist being repaid with less valuable drachmas. However, if Greek borrowers have to repay the loans with euros, the debt would become more expensive for them to pay off after the drachma is devalued.

(PHOTOS: Protests in Athens)

The most likely domino effect, therefore — and the one most widely expected — is that debts to non-Greek creditors are compromised after Greece switches to the drachma. Either there would be lawsuits over which currency to use, or borrowers would default on the loans, or the lenders would be forced to accept reductions in the amount of the loan that has to be repaid, in order to avoid outright defaults. Whichever outcome occurs, the lenders lose money. Just as in the U.S. mortgage-lending crisis, once some banks lose enough money to become troubled, the contamination spreads to other banks, because they all lend to each other.

That’s not a pleasant prospect, but at least it’s fairly clear how to manage it. Greece leaves the euro zone, and its economy suffers for a couple of years but then stabilizes. With Greece gone, the rest of the euro zone could be propped up more easily. Many major banks take big losses on Greek debt. Some fail, some are taken over by stronger banks. Governments have to bail out the biggest losers. And the banking system is made sound again, although at considerable expense to taxpayers in many countries.

(MORE: Why Portugal May Be the Next Greece)

But what if Greece’s exit from the euro zone causes other kinds of domino effects that don’t have obvious precedents? The fallout could be a lot harder to control. As I see it, there are two possible scenarios that aren’t getting the attention they should.

Derivatives could set off a global chain reaction. Most people have heard of the complex, “synthetic” financial securities known as derivatives, which Warren Buffett famously referred to as “financial weapons of mass destruction.” In the case of bonds, these are known as credit derivatives. They include all sorts of loans secured by bonds, as well as incredibly complicated vehicles that amount to insurance policies if the bonds default. No one really knows how much of this stuff is sloshing around the international financial system, but the total value for all types of bonds was estimated at more than $50 trillion in 2008 and has continued to grow rapidly since then. Trouble is, if the bonds underlying these derivatives become questionable, all the derivatives become uncertain, too, even if they add up to far more than the value of the bonds themselves. Moreover, some of the synthetic investments based on Greek bonds could be governed by Greek law, some by British law (if anything originated in London), and some by U.S. law (if Wall Street was involved).

(MORE: Is a Greek Exit from the Euro Inevitable?)

What if one legal system accepts the conversion of euro loans into drachmas and another one doesn’t? Everything could be thrown into the courts for months. Even worse, if synthetic investments secured by Greek bonds become untrustworthy, why would anyone trust similarly complex investments involving Spanish bonds or Italian bonds?

The result of a meltdown in the world of derivative investments could cause far more chaos than simple bond defaults, not least because it would be almost impossible to figure out who owed how much to whom.

Greece recovers quickly and all the other troubled countries want out of the euro zone too. At the opposite end of the spectrum is the possibility that Greece abandons the euro and bounces back surprisingly fast. Paradoxically, that could cause another sort of disaster. Both Argentina and Iceland suffered currency collapses, and after a horrible year or two, both rebounded and were better off than if they had fought to save a failing currency. Analysts point out that both countries were big exporters of grain, meat or fish, and that sales boomed after currencies were devalued. But Greece, in its own way, could profit from a similar recovery — a rebound in tourism. A 30% drop in the exchange rate might make a vacation in Greece the best deal in years.

(MORE: The Future of Oil: The Environmental and Economic Costs of New Exploration)

So why would that be bad? Think of what it would mean for the other countries in the euro zone. How could the Italian government persuade its people of the need for higher taxes or the Spanish government explain soaring unemployment if Greece were obviously better off outside of the euro zone. Result: The entire European Union might unravel, with financial consequences many times greater than those resulting from Greece alone.

I’m certainly not predicting an extreme, doomsday scenario as the most likely outcome of a Greek exit. But it is important to realize just how unpredictable this situation is. In my own stock portfolio, I eliminated all the banks a long time ago and have largely stuck with financially strong companies that deal in essential goods — such as oil & gas, consumer staples and pharmaceuticals. The euro created a financial entity comparable in scale to the U.S., and if it gets into serious trouble the financial effects could be world-shaking.

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Greek cabinet tackles austerity, rescue hopes rise

Posted by Admin on February 18, 2012

http://news.yahoo.com/more-needed-yet-elusive-greek-bailout-deal-005931736.html;_ylt=AkMlhwQqqjB3a4GMc3efm4Os0NUE;_ylu=X3oDMTNsYnRhaHM4BG1pdANUb3BTdG9yeSBGUARwa2cDN2E0ZWU3YTAtMzdlMC0zMTZkLTk1NjEtMzFhYjBlYWJiZTA5BHBvcwMxBHNlYwN0b3Bfc3RvcnkEdmVyAzMwMTljMDYwLTU5Y2MtMTFlMS05ZmVlLTM3Yzk5MWRiZTI3ZA–;_ylg=X3oDMTFvdnRqYzJoBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3

By David Stamp and George Georgiopoulos | Reuters – 4 mins 57 secs ago

ATHENS (Reuters) – Greece’s cabinet tackled on Saturday how to implement austerity demanded by the EU and IMF as a 130-billion-euro ($171-billion) rescue seemed within reach, while the euro zone considered modifying a deal with private creditors to help Athensreduce its huge debts.

After months of often acrimonious negotiations, Greek hopes were rising that euro zone finance ministers Monday will endorse the rescue which Athens needs to avoid bankruptcy next month when major debt repayments fall due.

A statement from the office of Prime Minister Lucas Papademossaid the cabinet would discuss implementing the bailout package which demands pay, pension and job cuts on top measures that have already hit many Greeks’ living standards.

The cabinet is due to approve measures that already provoked rioting on the streets of Athens last Sunday before they go into a supplementary budget due to be put to parliament next week.

“The Greek people have done everything they can and we are determined to make good on our commitments,” Public Order Minister Christos Papoutsis told reporters as he arrived. Many EU officials remain deeply skeptical of Athens’s will to reform.

Also on the agenda is the future of the old Athens airport, a prime seafront site that lies derelict more than a decade after the new airport opened, symbolizing the wasted opportunities which have helped to reduce Greece to its knees.

Friday German Chancellor Angela Merkel, Italian Prime Minister Mario Monti and Papademos all voiced optimism about a Greek accord during a three-way conference call, Monti’s office said in a statement.

However, Jean-Claude Juncker, who will chair Monday’s meeting of the Eurogroup in Brussels, made clear that urgent work was still needed to get a program to reduce Greece’s crippling debts back on track.

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Euro zone crisis in graphics http://r.reuters.com/hyb65p

Interactive timeline http://link.reuters.com/pys56s

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MISSING THE TARGET

At stake is a target of lowering the debt from the equivalent of 160 percent of annual Greek economic output now to a more manageable 120 percent by 2020.

“All the discussions I will have … until Sunday night will try to move the figure nearer to the target,” Juncker told reporters.

At the moment, EU and IMF officials believe that target – which assumes that Greece will run a budget surplus next year, excluding the massive cost of its debts – will be missed.

Under the main scenario of an analysis by the European Commission, the European Central Bank and the International Monetary Fund, Greek debt will fall to only 129 percent of gross domestic product in 2020, one official said.

The euro zone is therefore looking at modifying a deal negotiated over many months with private creditors under which they would accept a cut of around 70 percent in the real value of their Greek bondholdings.

Senior euro zone finance officials meet Sunday to discuss the analysis and find ways to bring the debt closer to the 120 percent target before the finance ministers gather Monday.

“If you do a number of things you can bring the 129 close to 120,” one euro zone official familiar with the document said.

These might include changes to interest accrued on privately held bonds, but the EU and its national institutions might also play their part, the official said.

Interest rates on EU loans to Greece could be cut, and those national central banks in the euro zone which hold Greek bonds might accept similar terms to the private creditors on some of their holdings.

The national central banks own an estimated 12 billion euros of Greek debt. The European Central Bank has refused to take part in the complex deal for the private creditors – involving swapping old bonds for new ones with a lower face value, lower interest rates and longer maturities – and would need to approve the national central bank decision.

Officials also are considering a cut in the cash “sweetener” which would be offered to the private creditors in return for accepting the cut in the value of their bond holdings

ROCK-BOTTOM MORALE

With Greek morale at rock bottom, the national mood darkened yet further after armed thieves looted a museum Friday in Olympia, birthplace of the Olympic Games. They stole bronze and pottery artifacts weeks after the National Gallery was burgled.

A Greek newspaper suggested the state could no longer look after the nation’s immense cultural heritage properly. “The Greek state has gone bankrupt, let’s face it,” the daily Kathimerini said.

“If the state cannot guard the country’s great cultural heritage for financial or other reasons it must find other ways to do it,” the conservative daily said.

“It could, for example, turn to large foundations and ask them to assume the cost of security at the country’s important museums in the next two to three difficult years.”

Critics say years have been wasted arguing and dithering over major national decisions. This is symbolized by the old Athens airport, which is supposed to be rebuilt as a Monte Carlo-style development of housing, tourist facilities and a marina, but remains a wasteland.

Athens opened a new airport in 2001, well in time for the 2004 Olympic games, but longstanding plans to privatize it have also yet to materialize.

(Additional reporting by Dina Kyriakidou, Angeliki Koutantou and Harry Papachristou and Jan Strupczweski in Brussels; Editing by Michael Roddy)

Posted in Economic Upheavals, Geo-Politics | Tagged: , , , , , , , , , , , , | Comments Off on Greek cabinet tackles austerity, rescue hopes rise

Syria rejects new Arab League plan to end crisis

Posted by Admin on January 24, 2012

http://news.yahoo.com/syria-rejects-arab-league-plan-end-crisis-070421433.html;_ylt=AnzTTNzI67qMmLNiaSP7YVas0NUE;_ylu=X3oDMTNsNHBjOTFnBG1pdANUb3BTdG9yeSBGUARwa2cDOGU4ZjIxNGItMGJhZS0zNzUyLThlOTItM2Y1MWY1ZmY0ZTA4BHBvcwM3BHNlYwN0b3Bfc3RvcnkEdmVyAzEyNzc1ZTQwLTQ1ZGMtMTFlMS1hOTVmLWM3ODg2MWQ3YTgyNg–;_ylg=X3oDMTFvdnRqYzJoBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3

By BASSEM MROUE and BEN HUBBARD | Associated Press – 27 mins ago

BEIRUT (AP) — Syria on Monday rejected the Arab League‘s wide-ranging new plan to end the country’s 10-month crisis, saying theLeague’s call for a national unity government in two months is a clear violation of Syrian sovereignty, as violence raged.

Tens of thousands of people poured into the streets in a suburb outside the capital, Damascus to mourn for 11 residents who were either shot dead by security forces or killed in clashes between army defectors and troops a day earlier, activists said.

An activist group said 23 people were killed in Syria on Monday.

The crowd in Douma — which one activist said was 60,000-strong — was under the protection of dozens of army defectors who are in control of the area after regime forces pulled out late Sunday, said Samer al-Omar, a Douma resident.

The reports could not be independently confirmed.

In Syria’s north, opposition figure Radwan Rabih Hamadi was killed in an ambush by unknown gunmen in the rebellious Jabal al-Zawiya mountain region, activists said. Hamadi, 46, was a prominent figure in the revolt against President Bashar Assad.

Assad blames the uprising that erupted in March on terrorists and armed gangs acting out a foreign conspiracy to destabilize the country. His regime has retaliated with a brutal crackdown that the U.N. says has killed more than 5,400 people.

There is growing urgency, however, to find a resolution to a crisis that is growing increasingly violent as regime opponents and army defectors who have switched sides have started to fight back againstgovernment forces.

The Arab League has tried to stem the bloodshed by condemning the crackdown, imposing sanctions and sending a team of observers to the country. On Sunday, the League called for a unity government within two months, which would then prepare for parliamentary and presidential elections to be held under Arab and international supervision.

The proposal also provides for Assad to give his vice president full powers to cooperate with the proposed government to enable it to carry out its duties during a transitional period.

The state-run news agency, SANA, said Damascus considers the plan “flagrant interference in its internal affairs” and the latest turn in an international plot against Syria.

It was not immediately clear what steps, if any, Syria could take to counter the Arab League’s stance.

The European Union backed the Arab plan Monday, and it extended existing sanctions against Assad’s government by adding 22 more officials and eight companies to the blacklist.

In New York, German U.N. Ambassador Peter Wittig called Monday on fellow Security Council members to endorse the Arab League’s new plan to end the violence in Syria, including formation of a national unity government.

“The decisions taken in Cairo may be a game-changer, also for the Security Council,” Wittig told a small group of reporters.

Omar Idlibi, a spokesman for the Syrian National Council opposition group, said the Arab efforts do not go far enough. He and many other opposition figures demand Assad leave power and say anything less will just give the regime time to bury the revolt.

But there are significant splits in the opposition about the way forward.

Hassan Abdul-Azim, who heads the National Coordination Body for Democratic Change in Syria, or NCB, said the Arab plan is an “advanced step as the Arab League has started dealing with matters more seriously.”

Abdul-Azim told The Associated Press that the plan would put more pressure on Assad’s regime and “tells it that it’s impossible to keep matters as they are.”

Syria appeared to get a serious boost Monday from its powerful allies in Russia. Russia’s business daily Kommersant reported that Moscow has signed a contract to sell 36 Yak-130 combat jets to Syria — a deal that, if confirmed, would openly defy international efforts to pressure Assad’s regime.

The Arab League’s observer mission has come under heavy criticism for failing to stop the violence in Syria.

On Monday, the head of the mission defended the observers’ work, saying their presence had cut down on the bloodshed. Speaking at League headquarters in Cairo, Sudanese Gen. Mohammed Ahmed al-Dabi told reporters the observers have witnessed violence from both the Syrian security forces and armed opposition groups.

“When the delegation arrived, there was clear and obvious violence,” he said. “But after the delegation arrived, the violence started to lessen gradually.”

On Sunday, Arab League foreign ministers extended the mission for another month. The mission’s one-month mandate technically expired on Thursday.

Violence continued inside Syria on Monday.

The British-based Syrian Observatory for Human Rights said troops and army defectors clashed Monday near the western town of Qusair, close to the Lebanese border. It said five soldiers were killed and 13 were wounded.

The Observatory added that 20 civilians were killed by security forces in different parts of Syria, nine of them in the northwestern province of Idlib that borders Turkey.

The LCC put Monday’s death toll at 23.

It was impossible to reconcile the discrepancy.

Syria has prevented most independent media coverage and until recently has refused to issue visas for most foreign journalists. In recent weeks, the regime has begun to permit entry for journalists on trips escorted by government minders.

___

Hubbard reported from Cairo. Anita Snow contributed reporting from the U.N.

___

Bassem Mroue can be reached on http://twitter.com/bmroue

 

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Obama Raises the Military Stakes: Confrontation on the Borders with China and Russia

Posted by Admin on December 20, 2011

http://www.globalresearch.ca/index.php?context=va&aid=28144

by Prof. James Petras

Global Research, December 10, 2011

Introduction

After suffering major military and political defeats in bloody ground wars in Afghanistan and Iraq, failing to buttress long-standing clients in Yemen, Egypt and Tunisia and witnessing the disintegration of puppet regimes in Somalia and South Sudan, the Obama regime has learned nothing: Instead he has turned toward greater military confrontation with global powers, namely Russia and China. Obama has adopted a provocative offensive military strategy right on the frontiers of both China and Russia .

After going from defeat to defeat on the periphery of world power and not satisfied with running treasury-busting deficits in pursuit of empire building against economically weak countries, Obama has embraced a policy of encirclement and provocations against China, the world’s second largest economy and the US’s most important creditor, and Russia, the European Union’s principle oil and gas provider and the world’s second most powerful nuclear weapons power.

This paper addresses the Obama regime’s highly irrational and world-threatening escalation of imperial militarism. We examine the global military, economic and domestic political context that gives rise to these policies. We then examine the multiple points of conflict and intervention in which Washington is engaged, from Pakistan , Iran , Libya , Venezuela , Cuba and beyond. We will then analyze the rationale for military escalation against Russia and China as part of a new offensive moving beyond the Arab world ( Syria , Libya ) and in the face of the declining economic position of the EU and the US in the global economy. We will then outline the strategies of a declining empire, nurtured on perpetual wars, facing global economic decline, domestic discredit and a working population reeling from the long-term, large-scale dismantling of its basic social programs.

The Turn from Militarism in the Periphery to Global Military Confrontation

November 2011 is a moment of great historical import: Obama declared two major policy positions, both having tremendous strategic consequences affecting competing world powers.

Obama pronounced a policy of military encirclement of China based on stationing a maritime and aerial armada facing the Chinese coast – an overt policy designed to weaken and disrupt China ’s access to raw materials and commercial and financial ties in Asia . Obama’s declaration that Asia is the priority region for US military expansion, base-building and economic alliances was directed against China , challenging Beijing in its own backyard. Obama’s iron fist policy statement, addressed to the Australian Parliament, was crystal clear in defining US imperial goals.

“Our enduring interests in the region [Asia Pacific] demands our enduring presence in this region … The United States is a Pacific power and we are here to stay … As we end today’s wars [i.e. the defeats and retreats from Iraq and Afghanistan]… I have directed my national security team to make our presence and missions in the Asia Pacific a top priority … As a result, reduction in US defense spending will not … come at the expense of the Asia Pacific” (CNN.com, Nov. 16, 2011).

The precise nature of what Obama called our “presence and mission” was underlined by the new military agreement with Australia to dispatch warships, warplanes and 2500 marines to the northern most city of Australia ( Darwin ) directed at China . Secretary of State Clinton has spent the better part of 2011 making highly provocative overtures to Asian countries that have maritime border conflicts with China . Clinton has forcibly injected the US into these disputes, encouraging and exacerbating the demands of Vietnam , Philippines , and Brunei in the South China Sea . Even more seriously, Washington is bolstering its military ties and sales with Japan , Taiwan , Singapore and South Korea , as well as increasing the presence of battleships, nuclear submarines and over flights of war planes along China ’s coastal waters. In line with the policy of military encirclement and provocation, the Obama-Clinton regime is promoting Asian multi-lateral trade agreements that exclude China and privilege US multi-national corporations, bankers and exporters, dubbed the “Trans-Pacific Partnership”. It currently includes mostly smaller countries, but Obama has hopes of enticing Japan and Canada to join …

Obama’s presence at the APEC meeting of East Asian leader and his visit to Indonesia in November 2011 all revolve around efforts to secure US hegemony. Obama-Clinton hope to counter the relative decline of US economic links in the face of the geometrical growth of trade and investment ties between East Asia and China .

A most recent example of Obama-Clinton’s delusional, but destructive, efforts to deliberately disrupt China ’s economic ties in Asia, is taking place in Myanmar ( Burma ). Clinton ’s December 2011 visit to Myanmar was preceded by a decision by the Thein Sein regime to suspend a China Power Investment-funded dam project in the north of the country. According to official confidential documents released by WilkiLeaks the “Burmese NGO’s, which organized and led the campaign against the dam, were heavily funded by the US government”(Financial Times, Dec. 2, 2011, p. 2). This and other provocative activity and Clinton ’s speeches condemning Chinese “tied aid” pale in comparison with the long-term, large-scale interests which link Myanmar with China . China is Myanmar ’s biggest trading partner and investor, including six other dam projects. Chinese companies are building new highways and rail lines across the country, opening southwestern China up for Burmese products and China is constructing oil pipelines and ports. There is a powerful dynamic of mutual economic interests that will not be disturbed by one dispute (FT, December 2, 2011, p.2). Clinton’s critique of China’s billion-dollar investments in Myanmar’s infrastructure is one of the most bizarre in world history, coming in the aftermath of Washington’s brutal eight-year military presence in Iraq which destroyed $500 billion dollars of Iraqi infrastructure, according to Baghdad official estimates. Only a delusional administration could imagine that rhetorical flourishes, a three day visit and the bankrolling of an NGO is an adequate counter-weight to deep economic ties linking Myanmar to China . The same delusional posture underlies the entire repertoire of policies informing the Obama regime’s efforts to displace China ’s predominant role in Asia .

While any one policy adopted by the Obama regime does not, in itself, present an immediate threat to peace, the cumulative impact of all these policy pronouncements and the projections of military power add up to an all out comprehensive effort to isolate, intimidate and degrade China’s rise as a regional and global power. Military encirclement and alliances, exclusion of China in proposed regional economic associations, partisan intervention in regional maritime disputes and positioning technologically advanced warplanes, are all aimed to undermine China ’s competitiveness and to compensate for US economic inferiority via closed political and economic networks.

Clearly White House military and economic moves and US Congressional anti-China demagogy are aimed at weakening China ’s trading position and forcing its business-minded leaders into privileging US banking and business interests over and above their own enterprises. Pushed to its limits, Obama’s prioritizing a big military push could lead to a catastrophic rupture in US-Chinese economic relations. This would result in dire consequences, especially but not exclusively, on the US economy and particularly its financial system. China holds over $1.5 trillion dollars in US debt, mainly Treasury Notes, and each year purchases from $200 to $300 billion in new issues, a vital source in financing the US deficit. If Obama provokes a serious threat to China ’s security interests and Beijing is forced to respond, it will not be military but economic retaliation: the sell-off of a few hundred billion dollars in T-notes and the curtailment of new purchases of US debt. The US deficit will skyrocket, its credit ratings will descend to ‘junk’, and the financial system will ‘tremble onto collapse’. Interest rates to attract new buyers of US debt will approach double digits. Chinese exports to the US will suffer and losses will incur due to the devaluation of the T-notes in Chinese hands. China has been diversifying its markets around the world and its huge domestic market could probably absorb most of what China loses abroad in the course of a pull-back from the US market.

While Obama strays across the Pacific to announce his military threats to China and strives to economically isolate China from the rest of Asia, the US economic presence is fast fading in what used to be its “backyard”: Quoting one Financial Times journalist, “China is the only show [in town] for Latin America” (Financial Times, Nov. 23, 2011, p.6). China has displaced the US and the EU as Latin America’s principle trading partner; Beijing has poured billions in new investments and provides low interest loans.

China’s trade with India , Indonesia , Japan , Pakistan and Vietnam is increasing at a far faster rate than that of the US . The US effort to build an imperial-centered security alliance in Asia is based on fragile economic foundations. Even Australia , the anchor and linchpin of the US military thrust in Asia, is heavily dependent on mineral exports to China . Any military interruption would send the Australian economy into a tailspin.

The US economy is in no condition to replace China as a market for Asian or Australian commodity and manufacturing exports. The Asian countries must be acutely aware that there is no future advantage in tying themselves to a declining, highly militarized, empire. Obama and Clinton deceive themselves if they think they can entice Asia into a long-term alliance. The Asian’s are simply using the Obama regime’s friendly overtures as a ‘tactical device’, a negotiating ploy, to leverage better terms in securing maritime and territorial boundaries with China .

Washington is delusional if it believes that it can convince Asia to break long-term large-scale lucrative economic ties to China in order to join an exclusive economic association with such dubious prospects. Any ‘reorientation’ of Asia, from China to the US , would require more than the presence of an American naval and airborne armada pointed at China . It would require the total restructuring of the Asian countries’ economies, class structure and political and military elite. The most powerful economic entrepreneurial groups in Asia have deep and growing ties with China/Hong Kong, especially among the dynamic transnational Chinese business elites in the region. A turn toward Washington entails a massive counter-revolution, which substitutes colonial ‘traders’ (compradors) for established entrepreneurs. A turn to the US would require a dictatorial elite willing to cut strategic trading and investment linkages, displacing millions of workers and professionals. As much as some US-trained Asian military officers , economists and former Wall Street financiers and billionaires might seek to ‘balance’ a US military presence with Chinese economic power, they must realize that ultimately advantage resides in working out an Asian solution.

The age of Asian “comprador capitalists”, willing to sell out national industry and sovereignty in exchange for privileged access to US markets, is ancient history. Whatever the boundless enthusiasm for conspicuous consumerism and Western lifestyles, which Asia and China’s new rich mindlessly celebrate, whatever the embrace of inequalities and savage capitalist exploitation of labor, there is recognition that the past history of US and European dominance precluded the growth and enrichment of an indigenous bourgeoisie and middle class. The speeches and pronouncements of Obama and Clinton reek of nostalgia for a past of neo-colonial overseers and comprador collaborators – a mindless delusion. Their attempts at political realism, in finally recognizing Asia as the economic pivot of the present world order, takes a bizarre turn in imagining that military posturing and projections of armed force will reduce China to a marginal player in the region.

Obama’s Escalation of Confrontation with Russia

The Obama regime has launched a major frontal military thrust on Russia ’s borders. The US has moved forward missile sites and Air Force bases in Poland, Rumania, Turkey, Spain, Czech Republic and Bulgaria: Patriot PAC-3 anti-aircraft missile complexes in Poland; advanced radar AN/TPY-2 in Turkey; and several missile (SM-3 IA) loaded warships in Spain are among the prominent weapons encircling Russia, most only minutes away from it strategic heartland. Secondly, the Obama regime has mounted an all-out effort to secure and expand US military bases in Central Asia among former Soviet republics. Thirdly, Washington , via NATO, has launched major economic and military operations against Russia ’s major trading partners in North Africa and the Middle East . The NATO war against Libya , which ousted the Gadhafi regime, has paralyzed or nullified multi-billion dollar Russian oil and gas investments, arms sales and substituted a NATO puppet for the former Russia-friendly regime.

The UN-NATO economic sanctions and US-Israeli clandestine terrorist activity aimed at Iran has undermined Russia ’s lucrative billion-dollar nuclear trade and joint oil ventures. NATO, including Turkey , backed by the Gulf monarchical dictatorships, has implemented harsh sanctions and funded terrorist assaults on Syria , Russia ’s last remaining ally in the region and where it has a sole naval facility (Tartus) on the Mediterranean Sea . Russia ’s previous collaboration with NATO in weakening its own economic and security position is a product of the monumental misreading of NATO and especially Obama’s imperial policies. Russian President Medvedev and his Foreign Minister Sergey Lavrov mistakenly assumed (like Gorbachev and Yeltsin before them) that backing US-NATO policies against Russia ’s trading partners would result in some sort of “reciprocity”: US dismantling its offensive “missile shield” on its frontiers and support for Russia ’s admission into the World Trade Organization. Medvedev, following his liberal pro-western illusions, fell into line and backed US-Israeli sanctions against Iran , believing the tales of a “nuclear weapons programs”. Then Lavrov fell for the NATO line of “no fly zones to protect Libyan civilian lives” and voted in favor, only to feebly “protest”, much too late, that NATO was “exceeding its mandate” by bombing Libya into the Middle Ages and installing a pro-NATO puppet regime of rogues and fundamentalists. Finally when the US aimed a cleaver at Russia’s heartland by pushing ahead with an all-out effort to install missile launch sites 5 minutes by air from Moscow while organizing mass and armed assaults on Syria, did the Medvedev-Lavrov duet awake from its stupor and oppose UN sanctions. Medvedev threatened to abandon the nuclear missile reduction treaty (START) and to place medium-range missiles with 5 minute launch-time from Berlin , Paris and London .

Medvedev-Lavrov’s policy of consolidation and co-operation based on Obama’s rhetoric of “resetting relations” invited aggressive empire building: Each capitulation led to a further aggression. As a result, Russia is surrounded by missiles on its western frontier; it has suffered losses among its major trading partners in the Middle East and faces US bases in southwest and Central Asia .

Belatedly Russian officials have moved to replace the delusional Medvedev for the realist Putin, as next President. This shift to a political realist has predictably evoked a wave of hostility toward Putin in all the Western media. Obama’s aggressive policy to isolate Russia by undermining independent regimes has, however, not affected Russia ’s status as a nuclear weapons power. It has only heightened tensions in Europe and perhaps ended any future chance of peaceful nuclear weapons reduction or efforts to secure a UN Security Council consensus on issues of peaceful conflict resolution. Washington , under Obama-Clinton, has turned Russia from a pliant client to a major adversary.

Putin looks to deepening and expanding ties with the East, namely China , in the face of threats from the West. The combination of Russian advanced weapons technology and energy resources and Chinese dynamic manufacturing and industrial growth are more than a match for crisis-ridden EU-USA economies wallowing in stagnation.

Obama’s military confrontation toward Russia will greatly prejudice access to Russian raw materials and definitively foreclose any long-term strategic security agreement, which would be useful in lowering the deficit and reviving the US economy.

Between Realism and Delusion: Obama’s Strategic Realignment

Obama’s recognition that the present and future center of political and economic power is moving inexorably to Asia , was a flash of political realism. After a lost decade of pouring hundreds of billions of dollars in military adventures on the margins and periphery of world politics, Washington has finally discovered that is not where the fate of nations, especially Great Powers, will be decided, except in a negative sense – of bleeding resources over lost causes. Obama’s new realism and priorities apparently are now focused on Southeast and Northeast Asia, where dynamic economies flourish, markets are growing at a double digit rate, investors are ploughing tens of billions in productive activity and trade is expanding at three times the rate of the US and the EU.

But Obama’s ‘New Realism’ is blighted by entirely delusional assumptions, which undermine any serious effort to realign US policy.

In the first place Obama’s effort to ‘enter’ into Asia is via a military build-up and not through a sharpening and upgrading of US economic competitiveness. What does the US produce for the Asian countries that will enhance its market share? Apart from arms, airplanes and agriculture, the US has few competitive industries. The US would have to comprehensively re-orient its economy, upgrade skilled labor, and transfer billions from “security” and militarism to applied innovations. But Obama works within the current military-Zionist-financial complex: He knows no other and is incapable of breaking with it.

Secondly, Obama-Clinton operate under the delusion that the US can exclude China or minimize its role in Asia, a policy that is undercut by the huge and growing investment and presence of all the major US multi-national corporations in China , who use it as an export platform to Asia and the rest of the world.

The US military build-up and policy of intimidation will only force China to downgrade its role as creditor financing the US debt, a policy China can pursue because the US market, while still important, is declining, as China expands its presence in its domestic, Asian, Latin American and European markets.

What once appeared to be New Realism is now revealed to be the recycling of Old Delusions: The notion that the US can return to being the supreme Pacific Power it was after World War Two. The US attempts to return to Pacific dominance under Obama-Clinton with a crippled economy, with the overhang of an over-militarized economy, and with major strategic handicaps: Over the past decade the United States foreign policy has been at the beck and call of Israel ’s fifth column (the Israel “lobby”). The entire US political class is devoid of common, practical sense and national purpose. They are immersed in troglodyte debates over “indefinite detentions” and “mass immigrant expulsions”. Worse, all are on the payrolls of private corporations who sell in the US and invest in China .

Why would Obama abjure costly wars in the unprofitable periphery and then promote the same military metaphysics at the dynamic center of the world economic universe? Does Barack Obama and his advisers believe he is the Second Coming of Admiral Commodore Perry, whose 19th century warships and blockades forced Asia open to Western trade? Does he believe that military alliances will be the first stage to a subsequent period of privileged economic entry?

Does Obama believe that his regime can blockade China , as Washington did to Japan in the lead up to World War Two? It’s too late. China is much more central to the world economy, too vital even to the financing of the US debt, too bonded up with the Forbes Five Hundred multi-national corporations. To provoke China , to even fantasize about economic “exclusion” to bring down China , is to pursue policies that will totally disrupt the world economy, first and foremost the US economy!

Conclusion

Obama’s ‘crackpot realism’, his shift from wars in the Muslim world to military confrontation in Asia , has no intrinsic worth and poses extraordinary extrinsic costs. The military methods and economic goals are totally incompatible and beyond the capacity of the US , as it is currently constituted. Washington ’s policies will not ‘weaken’ Russia or China , even less intimidate them. Instead it will encourage both to adopt more adversarial positions, making it less likely that they lend a hand to Obama’s sequential wars on behalf of Israel . Already Russia has sent warships to its Syrian port, refused to support an arms embargo against Syria and Iran and (in retrospect) criticized the NATO war against Libya . China and Russia have far too many strategic ties with the world economy to suffer any great losses from a series of US military outposts and “exclusive” alliances. Russia can aim just as many deadly nuclear missiles at the West as the US can mount from its bases in Eastern Europe .

In other words, Obama’s military escalation will not change the nuclear balance of power, but will bring Russia and China into a closer and deeper alliance. Gone are the days of Kissinger-Nixon’s “divide and conquer” strategy pitting US-Chinese trade agreements against Russian arms. Washington has a totally exaggerated significance of the current maritime spats between China and its neighbors. What unites them in economic terms is far more important in the medium and long-run. China ’s Asian economic ties will erode any tenuous military links to the US .

Obama’s “crackpot realism”, views the world market through military lenses. Military arrogance toward Asia has led to a rupture with Pakistan , its most compliant client regime in South Asia . NATO deliberately slaughtered 24 Pakistani soldiers and thumbed their nose at the Pakistani generals, while China and Russia condemned the attack and gained influence.

In the end, the military and exclusionary posture to China will fail. Washington will overplay its hand and frighten its business-oriented erstwhile Asian partners, who only want to play-off a US military presence to gain tactical economic advantage. They certainly do not want a new US instigated ‘Cold War’ dividing and weakening the dynamic intra-Asian trade and investment. Obama and his minions will quickly learn that Asia ’s current leaders do not have permanent allies – only permanent interests. In the final analysis, China figures prominently in configuring a new Asia-centric world economy. Washington may claim to have a ‘permanent Pacific presence’ but until it demonstrates it can take care of its “basic business at home”, like arranging its own finances and balancing its current account deficits, the US Naval command may end up renting its naval facilities to Asian exporters and shippers, transporting goods for them, and protecting them by pursuing pirates, contrabandists and narco-traffickers.

Come to think about it, Obama might reduce the US trade deficit with Asia by renting out the Seventh Fleet to patrol the Straits, instead of wasting US taxpayer money bullying successful Asian economic powers.

James Petras is a frequent contributor to Global Research.  Global Research Articles by James Petras

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Italy prime minister to resign

Posted by Admin on November 9, 2011

http://news.yahoo.com/photos/italians-protest-berlusconi-in-rome-1320518740-slideshow/;_ylt=AgVUBqqjuyqDSEyLdViiFlobANEA;_ylu=X3oDMTM3MXJjNmV2BG1pdAMEcGtnAzJhZDIwNGI2LWZlYzMtMzRlZi05ZDUyLWE4NzIyZjU1ZjM3YQRwb3MDNARzZWMDZW5kX3NzBHZlcgM1N2MzMmMyZS0wYTdmLTExZTEtOGRiMi1mYmE2ODJmZmIxNjY-;_ylv=3

Italy Premier Silvio Berlusconi promised November 8 to resign after parliament passes economic reforms demanded by the European Union.

File photo of Italy's Prime Minister Berlusconi getting into a car after an official welcoming ceremony in Sofia

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October 27, 2011 – White Hats Report #31

Posted by Admin on October 28, 2011

http://tdarkcabal.blogspot.com/2011/10/october-27-2011-white-hats-report-31.html

BUSH SR. – THE “KING” IS LOSING HIS MIND – How can a Stage Two Alzheimer Patient continue to terrorize American and  World Leaders!?

America is in grave danger by Washington Autocracy who have continued to fail to address the criminal actions of Bush Senior’s Dark Cabal who are in collusion with renegade bankers to destroy not only America’s, but the entire World’s financial system.  America is not immune to the collateral damage from other countries, because our financial systems and currencies have become homogeneous and interdependent. An unchecked system has allowed the greed, self interest, and criminal activities of a few to prosper while the rest of the world collapses.  JP Morgan Chase, Goldman Sachs, Bank of America, Citibank and Wall Street stand ready to fall, as they are cross invested in the European Union with substantial loans and trading portfolios.   America is in a free-fall led by a clueless President who is involved in vast criminal manipulations, a puppet on a string controlled by Bush Senior’s Cabal and George Soros.

As the global financial system spirals faster and faster to a bankrupt state, Bush Senior and Obama plan for their next move.  Obama is preparing for his exit as a failed one term President, with Senior allowing him to spend more time congregating his stolen offshore bank funds, which we last reported exceeded 11 Billion Dollars.  He has degradated America with the ultimate scam.  And a long time ago Bush Senior started to make plans for his escape.  Hence, the Bush family, Soros and cohorts over the last several weeks have been flying in mass equipment and assets to their heavily fortified 100,000 plus acre Paraguay Ranches.  As the World’s major financial system collapses, their plan is to take all their stolen assets and escape to the old Nazi Safe Haven immune from extradition. The Paraguayan newspapers have already announced the future arrival of the Bush family.   Our justice system is neutered to stop and apprehend them.  The world looks at America aghast with disbelief.

By the end of next week investigators will have completed a comprehensive report on Bush Senior, exposing the location of his stolen global banking funds.  Upon completion we will also detail an expose of Obama’s fraudulent funds.  Furthermore, this information will be made available to the proper global authorities for future criminal investigations.

As the G20 countries struggle for a global financial solution, Chancellor Angela Merkel and Nicholas Sarkozy now realize their own survival is being threatened and entrapped with the sinking ship.  They see the demise of Bush Senior’s power and the disintegration of the old Cabal.   Although they both understand that Bush Senior’s Dark Cabal still has some power,  the encroaching reality that Bush Senior has entered the second phase of dementia is now perceived that it is time to review Geo Political loyalties.   Simply stated, “The King is losing his mind,” but make no mistake that even now Senior is still calling all the shots.   Obama, Geithner, Bush Junior, the Clintons and other of the co-conspirators are still moving to the will of the puppet master.

As an example of Bush Senior’s control, as we have viewed from recent European Union events, we are very concerned that the present actions of Chancellor Merkel may possibly reveal that Bush Senior or his co-conspirators may be bribing or threatening Merkel if she does not prevent or derail by any means a solution to the European financial crisis.  Remember the Cabal’s new world order can only succeed with the failure of the global financial system.

Even though Bush Senior maintains control over some of the political powers, we are seeing signs of his collapse.  We have reported that Josef Ackermann played a focal role in conjunction with Bush Senior, but due to Josef Ackermann’s clear criminal exposure and visibility via the White Hats, the Bilderbergs have now severed their relationship with Ackermann in hopes of preventing criminal activities encroaching on them.  Ackermann’s wheels are coming off.   Dr. Michael Herzog has threatened to tell all when he is arraigned over the Falcone fraud executed by Ackermann, Mitt Romney, Bush Senior and other co-conspirator’s associates.   We can now report from further investigation that Bush Senior, Mitt Romney and Josef Ackermann made approximately 3 Billion Dollars together with their criminal partners Dr. Michael Herzog and Paul Guenette stealing from Edward Falcone.  The CIA was also a recipient of Falcone’s stolen funds.   Ben Bernanke tracked this transaction following Falcone’s stolen funds, but later took no action due to pressure from Bush Senior.   How will the new CIA director, an honorable man and true patriot, react to this?

Now that we see signs of the collapse of the Dark Cabal, a demented King slowly losing his mind to Stage Two Alzheimers and a President perceived by the world as greatly inept with his moral authority lost and his moral compass destroyed, the World is ready for a financial and political reset.   We have reported that money exists via the World Global Settlements and lawful obligations by the United States Treasury to patriotic individuals which would more than suffice to regenerate the World Global economies.

The United States Treasury and Federal Reserve have been offered a simple and fast way out of our dilemma:

  1. Return the long overdue funds rightfully owed to patriotic Americans.
  2. Release the World Global Settlements.
  3. Repay what was stolen from Tropos Capital and all other missing funds.

The Federal tax revenue alone will eliminate our national debt.  This responsible action will immediately channel major US humanitarian and global infrastructure projects.  This will immediately help resolve the Euro financial dilemma, create millions of jobs through industrial projects and new technologies, while building a new foundation that will not only benefit America, but financially stabilize the World.

Edward Falcone is another American Investor ruthlessly betrayed in a Bush Senior fraudulent transaction.  Falcone has planned substantial construction investment projects to develop and aid communities in Florida and other US states, which would create jobs and income security for Americans.  Via an audit review, over 800 Billion Dollars has been created by inter-Bank compound trading with Falcone’s stolen funds.  Based on Falcone’s stolen funds, the British Tax Authority may have missed 160 Billion (US Dollars) in tax revenue.  This does not include all the other transactions that could possibly run into the trillions of dollars in tax revenue owed to the British Government.  The largest beneficiary of these funds was the CIA, and secondly Bush Senior, whose accounts we are presently tracking.  Instead of Falcone’s earned capital going as planned to help America, it has triggered theft and bribery of corrupt Politicians.

Remember, we reported a Two Hundred Million Dollar bribe taken by Vice President Joe Biden, offered by Hillary Clinton, acting for Bush Senior.   Of the 3 Billion dollars reported above, Mitt Romney alone, acting with Bush Senior was paid over $1 Billion to front for Bush Senior.  This money was stolen from Falcone’s program.  Falcone and his associates have already communicated with key Republican Senators and their plan to remove Romney as a Presidential candidate by filing a Federal lawsuit against Romney, Bush Senior and his associates.  Falcone is using the same strategy now as he did when Romney was a Vice Presidential candidate for John McCain.  Just when he is most vulnerable and a likely candidate, Falcone will share the incriminating evidence and have Romney removed.  The White Hats will make sure that all opposition parties are aware of the details of Romney’s corruption. Romney cannot be allowed to be elected as yet another corrupt and bribe-taking United States President.

This whole saga of Political and Banking corruption was predicated upon large scale use of London Banking, operating via nominee and hidden offshore accounts.  Trillions of dollars have been traded in a series of bank programs making a total mockery of the humanitarian intent of these programs.  Political entities and persons in high level positions have been bought off.  Even the Bank of England itself is implicated in the Falcone affair along with Barclays, Deutsche Bank and HSBC Bank.

This corrupt practice has now been exposed to the House of Lords and the Parliamentary Audit Committee under Margaret Hodge.  While pressures and roadblocks will be imposed to delay investigations, once this gets into the hands of the opposition MP’s, Unions and media, exposure will create a Tsunami of redress consequences.  It will blow the lid off in a fire storm of retribution.   There are possibly Trillions in withholding Taxes which have been avoided, and will face enforced collection by the Revenue Commissioners in London once appraised.  The UK’s own Fiscal dilemmas can be resolved by simple Tax enforcement and conspiring Bankers being brought to justice.   Murdoch’s own media interests will be well served to expose this as Political dynamite but that has a lot to do with what the Bildeberg’s direct him to do.    The Federal Reserve Bank of New York has no idea of the extent of their files being held, corruption activities becoming known and being systematically tracked.   As this is exposed to the European Union and British media, IT’S GAME OVER!   Watergate will look like a Kindergarten birthday party.

THE WORLD GLOBAL SETTLEMENTS MUST BE RELEASED TODAY!   Also, the Iraqi Dinar revaluation is a cross-linked element of the solution, but compromised by Bush family interests and co-conspirators who have demanded and received twenty percent (20%) of the Forex differential, when exchange valuations are set to underpin the new currency.   In demonstration of the collusion between Bush and Obama, Obama has agreed to this “fee” for the Bush family.  Yet Obama, nor any one person in the Administration, is willing to provide a justifiable and legal position for this “fee”.

Will Obama finally realize he is being cut loose and that Senior has no more use for him?  Does he realize that he is expendable and will take the major part of the fall?  Can Obama be so blind or is Valarie Jarret not serving the interests of the President and thereby the interests of the American people?   Senior has allowed him to steal in excess of 11 Billion dollars in fraudulent funds.  Will Obama wake up and realize that Senior will never allow him to use these funds?  THE ONLY CHOICE FOR OBAMA IS TO USE HIS EXECUTIVE POWERS AND RELEASE ALL THE WORLD GLOBAL SETTLEMENTS IMMEDIATELY!   He still has the power to do what is right, but will his moral compass continue to be self edifying?  Obama alone will take the final punishment and be the end of his own demise.

All this and so much more has and will continue to be unveiled.  Pay what is lawfully owed and get Americans back to work.  Let real Patriots get Projects started.  Investigate and start the political and banking clean-up NOW!

What happens in the next few days may be the most important events in the history of mankind.

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As U.K. Releases UFO Files, Former UFO Project Chief Apologizes For ‘Spin And Dirty Tricks’ (Exclusive)

Posted by Admin on September 30, 2011

http://battleofearth.wordpress.com/2011/08/21/as-u-k-releases-ufo-files-former-ufo-project-chief-apologizes-for-spin-and-dirty-tricks-exclusive/

Huffington Post, August 17, 2011
Posted here: Sunday, August 21, 2011 @ 7:45 Am

This image from 2004 was taken of the town hall in Retford, Nottinghamshire. When the image was developed, it revealed what appears to be a flying saucer in the sky (right side of image). A senior government image analyst ruled there was insufficient information to determine what the object was.

As the British National Archives continues to releaseUFO-related documents, the former Ministry of Defense (MoD) UFO Project chief is openly admitting to being part of what he claims was a U.K. policy of ridiculing UFO reports and the people who reported them.

The U.K. made public 34 previously-classified files, totaling about 9,000 pages of documents covering the years 1985 to 2007. For three of those years, 1991 to 1994, Nick Pope was in charge of the official MoD office.

“What’s abundantly clear from these files is that, while in public we were desperately pushing the line that this was of no defense interest,” Pope told The Huffington Post. “We couldn’t say ‘There’s something in our air space; pilots see them; they’re tracked on radar; sometimes we scramble jets to chase these things, but we can’t catch them.’ This would be an admission that we’d lost control of our own air space, and such a position would be untenable.”

“Every time we got a report from a pilot, we were checking the radar tapes. So it was an interesting sleight of hand. We were telling the public we’re not interested, this is all nonsense, but in reality, we were desperately chasing our tails and following this up in great detail,” he added.

One file reveals how officials were afraid to be embarrassed if the public learned that UFO research was hindered by a lack of funds and higher priorities.

Another case, from 2007, took place in the vicinity of the Channel Islands and involved a small commercial aircraft.

“The pilot and several of his passengers saw a UFO, which they said was essentially a mile long,” Pope recounted. “And several other pilots saw it, but said, ‘We’re not going to report this.’ And here’s the great little get-out-of-jail-free-card for the MoD: Just by a matter of maybe a few hundred meters, it turned out that this was in French air space, so MoD was given this little get out to say, ‘Well, it happened in French air space, so it’s not an issue for us.’ Clearly, that was an absolutely outrageous abrogation of responsibility.”

A file from 1993 (while Pope was chief of the UFO Project) describes how European Union funds had been wasted on a report that included a theory that aliens had established a base in the asteroid belt between Mars and Jupiter.

It turns out that Pope may have been directly involved with this case.

“I’m a little bit apologetic about this because obviously, when I was in MoD, I had to play this game myself. To really achieve our policy of downplaying the UFO phenomenon, we would use a combination of ‘spin and dirty tricks.’

“We used terms like UFO buffs and UFO spotters — terms that mean these people are nut jobs. In other words, we were implying that this is just a very somewhat quaint hobby that people have as opposed to a serious research interest.”

But Pope said the ridicule policy went much further than that.

“Another trick would be deliberately using phrases like ‘little green men.’ We were trying to do two things: either to kill any media story on the subject, or if a media story ran, insure that it ran in such a way that it would make the subject seem ridiculous and that it would make people who were interested in this seem ridiculous.”

Pope further admits that he may have been the one who drafted actual MoD statements that contributed to the ridicule policy.

“If it was my words, then I apologize, I’m very sorry for that. I believe in open government and freedom of information. I believe that the UFO phenomenon does raise important defense, national security and air safety issues, and if I helped kill any initiative on that, I’m deeply sorry.”

Some U.K. cases were apparently easier than others in trying to make them seem non-credible. Like the file that describes UFOs reported at the June 2003 Glastonbury Music Festival.

“It was very easy to find an incident where something is seen at an event like a rock concert,” Pope noted. “You don’t even need to say a thing without the public or media perception being that drugs and alcohol might have played a part. It was all part of the way in which we spun the subject, to try and discredit it.”

Despite the thousands of pages of documents released — with one final batch of files yet to come, sometime early next year — Pope concedes there’s still no written evidence confirming alien visits to Earth.

“Not just yet — there’s no spaceship-in-a-hangar smoking gun. However, there are plenty of sightings that I think show that we’re dealing with more than just aircraft lights and weather balloons.”

The latest 34 U.K. UFO files can be downloaded free of charge for the next month at the National Archives website.

Posted in Exopolitics by Ed Komarek and Others | Tagged: , , , , , , , , | Comments Off on As U.K. Releases UFO Files, Former UFO Project Chief Apologizes For ‘Spin And Dirty Tricks’ (Exclusive)

The Ideological Crisis of Western Capitalism

Posted by Admin on July 10, 2011

http://www.truth-out.org/ideological-crisis-western-capitalism/1310127895

 

(Photo: emperley3)

Just a few years ago, a powerful ideology – the belief in free and unfettered markets – brought the world to the brink of ruin. Even in its hey-day, from the early 1980’s until 2007, American-style deregulated capitalism brought greater material well-being only to the very richest in the richest country of the world. Indeed, over the course of this ideology’s 30-year ascendance, most Americans saw their incomes decline or stagnate year after year.

Moreover, output growth in the United States was not economically sustainable. With so much of US national income going to so few, growth could continue only through consumption financed by a mounting pile of debt.

I was among those who hoped that, somehow, the financial crisis would teach Americans (and others) a lesson about the need for greater equality, stronger regulation, and a better balance between the market and government. Alas, that has not been the case. On the contrary, a resurgence of right-wing economics, driven, as always, by ideology and special interests, once again threatens the global economy – or at least the economies of Europe and America, where these ideas continue to flourish.

In the US, this right-wing resurgence, whose adherents evidently seek to repeal the basic laws of math and economics, is threatening to force a default on the national debt. If Congress mandates expenditures that exceed revenues, there will be a deficit, and that deficit has to be financed. Rather than carefully balancing the benefits of each government expenditure program with the costs of raising taxes to finance those benefits, the right seeks to use a sledgehammer – not allowing the national debt to increase forces expenditures to be limited to taxes.

This leaves open the question of which expenditures get priority – and if expenditures to pay interest on the national debt do not, a default is inevitable. Moreover, to cut back expenditures now, in the midst of an ongoing crisis brought on by free-market ideology, would inevitably simply prolong the downturn.

A decade ago, in the midst of an economic boom, the US faced a surplus so large that it threatened to eliminate the national debt. Unaffordable tax cuts and wars, a major recession, and soaring health-care costs – fueled in part by the commitment of George W. Bush’s administration to giving drug companies free rein in setting prices, even with government money at stake – quickly transformed a huge surplus into record peacetime deficits.

The remedies to the US deficit follow immediately from this diagnosis: put America back to work by stimulating the economy; end the mindless wars; rein in military and drug costs; and raise taxes, at least on the very rich. But the right will have none of this, and instead is pushing for even more tax cuts for corporations and the wealthy, together with expenditure cuts in investments and social protection that put the future of the US economy in peril and that shred what remains of the social contract. Meanwhile, the US financial sector has been lobbying hard to free itself of regulations, so that it can return to its previous, disastrously carefree, ways.

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But matters are little better in Europe. As Greece and others face crises, the medicine du jour is simply timeworn austerity packages and privatization, which will merely leave the countries that embrace them poorer and more vulnerable. This medicine failed in East Asia, Latin America, and elsewhere, and it will fail in Europe this time around, too. Indeed, it has already failed in Ireland, Latvia, and Greece.

There is an alternative: an economic-growth strategy supported by the European Union and the International Monetary Fund. Growth would restore confidence that Greece could repay its debts, causing interest rates to fall and leaving more fiscal room for further growth-enhancing investments. Growth itself increases tax revenues and reduces the need for social expenditures, such as unemployment benefits. And the confidence that this engenders leads to still further growth.

Regrettably, the financial markets and right-wing economists have gotten the problem exactly backwards: they believe that austerity produces confidence, and that confidence will produce growth. But austerity undermines growth, worsening the government’s fiscal position, or at least yielding less improvement than austerity’s advocates promise. On both counts, confidence is undermined, and a downward spiral is set in motion.

Do we really need another costly experiment with ideas that have failed repeatedly? We shouldn’t, but increasingly it appears that we will have to endure another one nonetheless. A failure of either Europe or the US to return to robust growth would be bad for the global economy. A failure in both would be disastrous – even if the major emerging-market countries have attained self-sustaining growth. Unfortunately, unless wiser heads prevail, that is the way the world is heading.

For a podcast of this commentary in English, please use thislink.

Copyright: Project Syndicate, 2011.

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JOSEPH E. STIGLITZ

Joseph E. Stiglitz is University Professor at Columbia University, a Nobel laureate in Economics, and the author of Freefall: Free Markets and the Sinking of the Global Economy.

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Syrian troops move on restive town, West alarmed

Posted by Admin on June 7, 2011

http://news.yahoo.com/s/nm/20110607/wl_nm/us_syria

By Khaled Yacoub Oweis 1 hr 4 mins ago

AMMAN (Reuters) – Syrian troops with tanks moved on Tuesday toward a town where the government has vowed to quell a revolt after accusing gunmen of killing scores of security men.

Though accounts of days of bloodshed in Jisr al-Shughour ranged from an official version of gunmen ambushing troops to residents’ reports of an army mutiny, the risk seemed to be growing of even greater violence than that which has left over 1,100 Syrians dead since popular unrest began three months ago.

France took a lead in proposing U.N. moves against President Bashar al-Assad. But Russia, citing NATO’s inconclusive war on Libyan leader Muammar Gaddafi, said it would veto intervention against Syria in the United Nations Security Council.

Despite enthusiasm for pro-democracy movements that have unseated dictators in Tunisia and Egypt, few Western leaders — let alone their autocratic Arab partners — have shown a will to intervene in Syria, an Iranian ally whose volatile mix of ethnic and religious groups sits astride a web of regional conflicts.

Assad’s family and supporters from the minority Alawite sect have dominated Syria since his late father seized power 41 years ago. He has responded with promises of reform, and a security crackdown on protesters in towns across the country.

The government has expelled independent journalists, making it hard to determine clearly what is happening in the country.

DIPLOMATIC MOVES

Tuesday, local residents said a column of armoured vehicles and troops, apparently heading for Jisr al-Shughour, had reached the town of Ariha, 25 km (16 miles) to the east, a day after Information Minister Adnan Mahmoud said army units would carry out their “national duty to restore security.”

Western powers have raised the alarm. British Foreign Secretary William Hague told parliament: “President Assad is losing legitimacy and should reform or step aside.” He said European governments were looking at further sanctions.

For France, Britain’s ally in the air war against Gaddafi and the former colonial power in Syria, Foreign Minister Alain Juppe said Paris was ready to ask the U.N. Security Council to condemn Syria: “The process of reform is dead and we think that Bashar has lost his legitimacy to rule the country.

“We’ll see what the Russians will do. If they veto, they will take their responsibility. Maybe if they see that there are 11 votes in favor of the resolution, they will change their mind. So there is a risk to take and we’re ready to take it.”

The United States has also said Assad should reform or go.

But in Brussels, Russia’s envoy to the European Union, Vladimir Chizhov, said: “The prospect of a U.N. Security Council resolution that’s along the same lines as Resolution 1973 on Libya will not be supported by my country … The use of force, as Libya shows, does not provide answers.”

Veto-holding Russia abstained on the Libya vote, allowing NATO to begin a bombing campaign that Western powers say saved civilians in rebel-held Benghazi from an onslaught by Gaddafi’s forces, but which has failed to dislodge the Libyan leader.

Just what has happened in Jisr al-Shughour, which lies in the northeast close to the Turkish border, remains unclear.

Official accounts say gunmen roaming the town and setting fire to government buildings had inflicted an extremely high death toll of over 120 on security men, said to have been killed in an ambush and attacks on a post office and a security post.

State television aired footage of at least five dead soldiers and police who it said were victims of an “ambush by armed gangs.” Voices are heard in the video cursing the dead men and describing how they were killed.

“I stabbed them, I stabbed the three of them,” said a man who was not seen on camera.

But residents and anti-government activists disputed the government account, saying the casualties followed a mutiny among forces sent to quell civilian protests. Assad loyalists and mutineers then fought each other around the town, they said.

Other footage posted on You Tube showed bodies of at least three soldiers and voices off camera say they were killed by fellow-security force members for refusing to fire on civilians.

PAST VIOLENCE

Fears of a sharp increase in the level of violence are informed by memories of 1982, when the forces of Assad’s father, Hafez al-Assad, crushed an armed Islamist revolt in the city of Hama, killing many thousands and razing the town’s old center.

Jisr al-Shughour residents said violence began when scores of civilians were killed in a crackdown on the hill town on a road between Syria’s second city Aleppo and the port of Latakia.

They said security men had raided homes and made scores of arbitrary arrests after the largest pro-democracy protest yet held in the town, Friday. At least five people were killed.

The killings enraged the townsfolk and prompted defections from security police and troops belonging, like most people in Jisr al-Shugour, to Syria’s Sunni Muslim majority, they said. Assad and many of his army and security commanders are Alawites.

Neighboring countries, including Israel and Turkey, worry about any chaos that could set off sectarian conflict and the emergence of violent, radical Islamists, as happened in nearby Iraq after the U.S. invasion of 2003.

“Military intelligence agents and security police stormed the town Monday. Snipers began firing at people who dared go out in the streets. Bodies lay in the streets. Around 100 police and soldiers defected and stood with us,” one resident said by phone, adding that six military intelligence agents were killed.

He said pro-Assad Alawite gunmen from neighboring villages, known as ‘shabbiha’, had been seen around Jisr al-Shughour.

Many analysts with close contacts on the ground inside Syria were reluctant to be identified when interviewed. One analyst based in Damascus said violence by security forces, who are also detaining and torturing people, was creating a violent backlash.

“Growing numbers of protesters have been pushed to take up arms, which are also being smuggled into the country at an alarming pace,” said the analyst, who works for an international organization.

The Syrian human rights organization Sawasiah said the 120 people killed were mostly civilians, or troops apparently shot dead by security agents who refused to join in the crackdown.

“The authorities are repeating their pattern of killings. They choose the town or city where demonstrations have been most vibrant and punish the population,” a Sawasiah spokesman said.

ARMY MUTINY?

Wissam Tarif, director of human rights organization Insan, said the fighting pitted rival army units against each other.

“An army unit or division arrived in the area in the morning. It seems then another unit arrived to contain the mutiny,” Tarif told Reuters. He said he had spoken to several people in Jisr al-Shughour who confirmed that account.

A Western diplomat in the region said he took the mutiny reports seriously, although he had no first-hand knowledge of events in Jisr al-Shughour. “It is plausible that the violent response to the protesters is causing widening cracks on sectarian lines within the army,” he said.

Rights groups say security forces, troops and gunmen loyal to Assad have killed 1,100 civilians since protests erupted in the southern city of Deraa on March 18. Unrest later spread to the Mediterranean coast and eastern Kurdish regions.

Assad has made some reformist gestures, such as issuing a general amnesty to political prisoners and launching a national dialogue, but protesters and opposition figures have dismissed such measures, saying thousands of political prisoners remain in jail and there can be no dialogue while repression continues.

Another resident, a history teacher who gave his name as Ahmed, said clashes had begun Saturday when snipers on the roof of the post office fired at a funeral for six protesters killed the day before. Mourners then set the post office ablaze.

State television said eight members of the security forces were killed when gunmen attacked the post office building.

It said at least 20 more were killed in an ambush by “armed gangs,” and 82 in an attack on a security post. It said the overall death toll for security forces topped 120.

(Additional reporting by Mariam Karouny and Yara Bayoumy in Beirut; editing by Alistair Lyon and Alastair Macdonald)

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WHO: Time running out to solve E. coli outbreak

Posted by Admin on June 7, 2011

http://news.yahoo.com/s/ap/20110607/ap_on_he_me/eu_contaminated_vegetables_investigation;_ylt=AmPpLvgL3mF190QkHr7fysNvaA8F;_ylu=X3oDMTNkdmRvMjJiBGFzc2V0A2FwLzIwMTEwNjA3L2V1X2NvbnRhbWluYXRlZF92ZWdldGFibGVzX2ludmVzdGlnYXRpb24EcG9zAzYEc2VjA3luX2FydGljbGVfc3VtbWFyeV9saXN0BHNsawN3aG90aW1lcnVubmk-

by MARIA CHENG, Associated Press 32 mins ago

LONDON – An expert at the World Health Organization says time is running out for German investigators to find the source of the world’s deadliest E. coli outbreak, which has spread fear across Europe and cost farmers millions in exports.

German officials are still seeking the cause of the outbreak weeks after it began May 2. They wrongly accused Spanish cucumbers of being the culprit last week but had to retract when the cucumbers had a different strain of E. coli. On Sunday, they blamed German sprouts, only to backtrack a day later when initial tests were negative. The sprouts are still being tested.

So far, the outbreak has killed 24 people, infected over 2,400 and left hundreds hospitalized with a serious complication that can lead to kidney failure.

“If we don’t know the likely culprit in a week’s time, we may never know the cause,” Dr. Guenael Rodier, the director of communicable diseases at WHO, told The Associated Press in an interview Tuesday.

He said the contaminated vegetables have likely disappeared from the market and it would be difficult for German investigators to link patients to contaminated produce weeks after they first became infected.

“Right now, (Germans) are interviewing patients about foods they ate one to two weeks ago,” he said. “It’s very hard to know how accurate that information is.”

Without more details about what exact foods link sick patients, Rodier said it would be very difficult to narrow down the cause.

“The final proof will come from the lab,” he said. “But first you need the epidemiological link to the suspected food.”

Other experts issued harsher criticism of the German investigation.

“If you gave us 200 cases and 5 days, we should be able to solve this outbreak,” said Michael Osterholm, director of the Center for Infectious Disease Research and Policy at the University of Minnesota, whose team has contained numerous food-borne outbreaks in the United States.

Osterholm described the German effort as “erratic” and “a disaster” and said officials should have done more detailed patient interviews as soon as the epidemic began.

The medical director of Berlin’s Charite Hospitals, Ulrich Frei, said it took the national disease control center weeks to send his hospital questionnaires for E. coli patients to fill out about their eating habits.

Osterholm said the Germans should have been able to trace cases of illness to infected produce by now and that tests on current produce won’t be helpful.

“It’s like looking at camera footage of a traffic intersection today to see what caused an accident three weeks ago,” he said.

“This is an outbreak response that is not being led by the data,” he added. “Solving an outbreak like this is difficult, but it’s not an impossible task.”

On Tuesday, the EU health chief warned Germany against issuing any more premature — and inaccurate — conclusions about the source of contaminated food. The comments by EU health chief John Dalli came only a day after he had defended the German investigators, saying they were under extreme pressure.

Dalli told the EU parliament in Strasbourg that information must be scientifically sound and foolproof before it becomes public.

“It is crucial that national authorities do not rush to give information on the source of infection that is not proven by bacteriological analysis, as this spreads unjustified fears (among) the population all over Europe and creates problems for our food producers,” Dalli said.

In outbreaks, it is not unusual for certain foods to be suspected at first, then ruled out. In 2008 in the U.S., raw tomatoes were initially implicated in a nationwide salmonella outbreak. Consumers shunned tomatoes, costing the tomato industry millions. Weeks later, jalapeno peppers grown in Mexico were found to be the cause.

In the current E. coli outbreak, tests are continuing on sprouts from an organic farm in northern Germany, but have so far come back negative. Rodier said that doesn’t necessarily exonerate the vegetables.

“Just because tests are negative doesn’t mean you can rule them out,” he said. “The bacteria could have been in just one batch of contaminated food and by the time you collect specimens from the samples that are left, it could be gone.”

He said food-borne outbreaks are difficult to investigate because they involve multiple industries, government departments and in Germany’s case, several layers of bureaucracy to report numbers.

In Luxembourg, a heated battle erupted Tuesday over compensation payments to European farmers blindsided by plunging demand during the deadly E. coli outbreak, with Spain and France scoffing at the amount proposed by the EU farm chief.

Farm Commissioner Dacian Ciolos suggested the European Union give farmers euro150 million ($219 million) in compensation — about 30 percent of the value of vegetables that cannot be sold.

But Spain and France, traditional vegetable producers, insisted that is not even close to enough, aiming for aid to farmers between 90 percent and 100 percent of the market price for their produce.

The losses to EU farmers have been staggering — in the neighborhood of euro417 million ($611 million) a week.

Germany’s national disease control center, the Robert Koch Institute, on Tuesday raised the number deaths to 24 — 23 in Germany and one in Sweden — and the number of infections in Germany to 2,325. The number of victims with a rare complication that may lead to kidney failure rose by 12 to 642.

Ten other European countries and the United States have another 100 cases.

The institute said the number of new cases had declined — a sign the epidemic might have reached its peak — but added it was not certain whether that decrease will continue.

In a major difference from other E. coli outbreaks, the crisis is mostly affecting women. Most of the victims in Germany are women between 20 and 50 years old, highly educated and very fit, investigators said.

“What do they have in common? They are thin, clean pictures of health,” said Friedrich Hagenmueller of the Asklepios Hospital in Hamburg, Germany.

___

David Rising in Hamburg, Raf Casert in Brussels and Juergen Baetz in Berlin contributed to this report.

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