Posts Tagged ‘White’

WHAT REALLY HAPPENED

Wednesday, May 19th, 2010

 

ay 18 06:14

CIA director, national security adviser to meet with officials in Pakistan

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President Obama’s national security adviser, James L. Jones, and CIA Director Leon Panetta were set to travel to Pakistan on Monday night for meetings with top government, military and intelligence officials on progress in the Times Square car bomb investigation and concerns about future terrorist attacks.

But officials said that Jones and Panetta intend to reiterate to the Pakistanis the importance that the administration places on more aggressive military action against groups allied with al-Qaeda in the Federally Administered Tribal Areas, or FATA. Shahzad, a Pakistani American, has said he traveled to the region to train with elements of the Pakistani Taliban, officials say.

Webmaster’s Commentary:

As reported 11 May, 2010 in

http://afpakwar.com/blog/archives/1588

"With Asif Zardari now placed in office, it appears that “Blackwater” (that now does business under the name Xe Services LLC), and not primarily U.S. troops will be the American forces that occupy Pakistan. The U.S. Embassy in Pakistan may therefore be technically correct that no “U.S. Marines” are intended to be housed in its proposed fortress (“Embassy”) in Islamabad. Also by occupying the capital the Americans would be in a good position to both protect their puppet civilian regime and promote their plans for the Balkanisation of Pakistan. Meanwhile, real estate agents report massive buying and renting of properties in Islamabad by Blackwater."

Look for a greatly expanded "Xe" presence after this little visit in Pakistan from Panetta and Jones.

And the question which has to arise from this is, how much longer before we see US troops on the ground in Pakistan?!?

May 18 05:59

Israel Demands Europe Stop Citizens From Gaza Aid Trip

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Naor Gilon, a high ranking member of Israel’s Foreign Ministry, today announced that he had met with the ambassadors from several European states to demand that they do something to prevent their citizens from sending private aid ships to the Gaza Strip.

Gilon warned the ambassadors that Israel considered the aid “provocation” and that they would do whatever was necessary to stop the aid ships from reaching the strip.

Webmaster’s Commentary:

Only the Israeli government would have the chutzpah to demand that foreign nationals stop "plotting" to deliver humanitarian aid to Gaza!

And a note to the Israeli government; creating martyrs out of any of these people is going focus the world’s attention on the siege of Gaza, the horrendous quality of life for Gazan Palestinians, and may even remove Israel from some country’s diplomatic contacts.

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May 18 05:44

Seoul set to formally blame North for sinking naval ship

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South Korea is scheduled to announce on Thursday the results of its investigation into the sinking of a navy corvette that broke in two on March 26, killing 46 South Korean sailors.

It is widely expected that the announcement will officially hold North Korea responsible for the incident.

Webmaster’s Commentary:

This could go from tense to a shooting war in a heartbeat.

One only hopes that China will offer the watchwords of prudence, and an absence of belligerence to its client state, North Korea, but it is difficult to say just how much Kim Jong Il will listen to such counsel.

May 18 05:38

17,000 Form Human Chain At U.S. Base In Japan

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— Thousands of Japanese linked hands and encircled a Marine Corps base in Okinawa on Sunday to protest its presence on the island, putting more pressure on Tokyo to resolve an impasse over the base’s future.

About 17,000 residents surrounded the Futenma air base early in the afternoon, chanting slogans and completing a human chain twice for several minutes each time, city official Hitoshi Nakou said. The base covers about 1.9 square miles (4.92 sq. kilometers), and sits in the middle of Ginowan, a city of about 93,000.

Webmaster’s Commentary:

Unless this situation is resolved, Hatoyama and his party are going to lose their collective shirts in the next election.

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May 18 05:31

Tar Balls Found Off Key West

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The U.S. Coast Guard says 20 tar balls have been found off Key West, Fla., but the agency stopped short of saying whether they came from a massive oil spill in the Gulf of Mexico.

Some 5 million gallons of crude has spewed into the Gulf and tar balls have been washing ashore in several states along the coast.

Scientists are worried that oil is getting caught in a major ocean current that could carry it through the Florida Keys and up the East Coast.

»

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May 18 05:27

US: Iran nuclear deal will not halt sanctions plan

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Iran has agreed to ship much of its low enriched uranium abroad in a nuclear fuel swap deal backed by Turkey and Brazil, but the United States said moves for toughened sanctions would still go ahead.

But the United States said it would not halt or slow its drive for toughened sanctions against the Islamic republic.

"It does not change the steps that we are taking to hold Iran responsible for its obligations, including sanctions," White House spokesman Robert Gibbs said.

Webmaster’s Commentary:

The White House has just telegraphed, loudly and clearly, that no matter what Iran does, the US is still going to go ahead with a futile attempt at sanctions, which China will not sign on to.

Then, we will have unilateral, coupled with multilateral sanctions, which will almost inevitably lead to a world war.

The hypocrisy here just stinks.

May 18 05:22

Study suggests processed meat a real health risk

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Eating bacon, sausage, hot dogs and other processed meats can raise the risk of heart disease and diabetes, U.S. researchers said on Monday in a study that identifies the real bad boys of the meat counter.

Eating unprocessed beef, pork or lamb appeared not to raise risks of heart attacks and diabetes, they said, suggesting that salt and chemical preservatives may be the real cause of these two health problems associated with eating meat.

May 18 05:20

Director of federal drilling safety oversight in Gulf calls it quits

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Chris Oynes, appointed during the Bush administration to oversee offshore energy oversight at the Mineral Management Service (MMS), has quit.

"After 35 years of service," an MMS employee told AFP, Oynes plans to announce his retirement soon, leaving behind a career forever tarnished by a photo of him presenting Transocean, the Deepwater Horizon’s owners, with a safety award.

His agency is blamed for severely lax safety oversight and neglecting inspections in BP’s massive Gulf of Mexico oil spill.

Webmaster’s Commentary:

Under Oynes’ watch, there literally was no oversight, which lead this country to the catastrophe we see today in the Gulf.

This man does not deserve a retirement and a watch: he deserves to be prosecuted to the fullest extent of Federal law for absolute dereliction of duty.

May 18 05:02

Warren Buffet Does Heavy Selling; 13-F Filings Reveal

By: chartist
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Billionaire investor Warren Buffet did some heavy selling during the first quarter of 2010. According to the most recent 13-f filing, Mr. Buffett liquidated his entire position health insurers United Health (UNH) and WellPoint (WPT). He dumped his holdings in financial companies Travelers (TRV) and Sun Trust Banks (STI).

May 18 04:54

Will swap deal weaken U.S. push for sanctions on Iran?

By: poorrichard
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The Washington Post said on its website that Iran appears to have scored a victory on Monday in the long-running diplomatic battle between Iran and the West, because Iran has seemingly made progress without offering any real compromise.

Ironically, the Obama administration now faces the uncomfortable prospect of rejecting a proposal it offered in the first place — or seeing months of effort to enact new sanctions derailed, the newspaper said.

May 18 04:47

Officials Find Tarballs Along Key West Shores

By: johnu78
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Yesterday Coast Guard personnel discovered two dozen tarballs on Key West shores. They’re in the process of testing them to see if they came from the Gulf of Mexico’s growing oil disaster…

May 18 04:39

The Responses to the Gulf Oil Spill and to the Financial Crisis Are Remarkably Similar … And Have Made Both Crises Much Worse

By: poorrichard
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Indeed, the industry and government spokespeople have used the exact same word as each crisis – financial and environmental – unfolded. They said the problem was "contained".

In both cases, we the people are left holding the bag because the giant companies and their campaign-contribution-buddies in DC are trying to sweep the severity of the problem under the rug, to manage the crisis as p.r. campaigns to protect those who let it happen … instead of actually taking steps necessary to solve the problems, and to make sure they won’t happen again.

May 18 02:29

Saakashvili: Brazil, Turkey-brokered Iranian Deal is Breakthrough

By: CEM
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President Saakashvili said on May 17 that an agreement, mediated by Brazil and Turkey, to send low-enriched uranium to Turkey in exchange for receiving nuclear fuel for an Iranian nuclear reactor was "a diplomatic victory" and "a matter of survival" for the small countries of the region.

"This is a real diplomatic breakthrough and a great diplomatic victory for Iran, Europe, the United States and the world and for the entire region, for Turkey and of course for Georgia… This is peace for Iran and for the entire region and for Georgia as well," Saakashvili said.

Misha crosses over to the dark side! Thought I’d post this before he gets a call from Telavivington telling him to tone his enthusiasm down a bit.

May 18 01:22

Key Oklahoma Bombing Witness Denied Access to Attorneys Fears for Life

By: poorrichard
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David Hammer, the death row inmate who authored two books on the Oklahoma City bombing, was locked down by prison officials following his interview last week on the Alex Jones Show.

Margaret Roberts, a journalist who wrote the preface to Hammer’s 2004 book Secrets Worth Dying For: Timothy James McVeigh and the Oklahoma City Bombing, contacted Alex Jones today.

»

May 17, 2010

May 17 22:22

Franklin Lamb : Why We Petition For Palestinian Civil Rights in Lebanon

By: My Catbird Seat
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“We don’t have to engage in grand, heroic actions to participate in the process of change or resistance. Small acts, when multiplied by many people, can transform the world”

“If we remember those times and places–and there are so many–where people have behaved magnificently, this gives us the energy to act, and at least the possibility of sending this spinning top of a world in a different direction. And if we do act, in however small a way, we don’t have to wait for some grand utopian future. The future is an infinite succession of presents, and to live now as we think human beings should live, in defiance of all that is bad around us, is itself a marvelous victory.” Professor Howard Zinn (1922-2010)

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May 17 22:09

Elvis Costello: Withdraws from two performances scheduled in Israel

By: My Catbird Seat
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It Is After Considerable Contemplation….

I have lately arrived at the decision that I must withdraw from the two performances scheduled in Israel on the 30th of June and the 1st of July.

One lives in hope that music is more than mere noise, filling up idle time, whether intending to elate or lament.

Then there are occasions when merely having your name added to a concert schedule may be interpreted as a political act that resonates more than anything that might be sung and it may be assumed that one has no mind for the suffering of the innocent.

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May 17 21:46

US military prick meets US Border Patrol pricks

By: disinter
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A US military paid thug was detained at a border checkpoint in Texas a few weeks back, and didn’t do the standard “roll over, lick boots” routine expected of the Empire’s chattels. The detainee has some kind of dual camera system in his car which records everything

May 17 20:35

Bo Obama worth $1,600

By: suman
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The records show that Bo, a Portuguese water dog that was a gift to the Obamas from the late Senator Edward Kennedy, was worth £1,105.

Royalties from Mr Obama’s two books, ‘Dreams From My Father’ and ‘Audacity of Hope’ earned him at least $1 million (£690,000) each, according to filings released by the White House.

The records showed the Obamas had some retirement savings accounts with the mutual fund company Vanguard and checking accounts at J P Morgan Chase and Northern Trust. Other assets in the president’s accounts include US treasury notes and bills, college savings plans for his daughters Sasha and Malia, and a pension from his service in the Illinois state legislature.

May 17 19:53

May 18, 9-11 Truth Demonstration at L.A.Israeli Consulate

By: mytrueword
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The 9-11 Truth Demonstration at Israeli Consulate in L.A. on May 18
Sunday, May 16
|May 18: 9-11 Truth Demonstration at Israeli Consulate in L.A. On May 18 there will be a public demonstration at the Israeli Consulate in Los Angeles by people who believe that Israel’s Mossad (along with Zionist Gentile and Jewish agents) carried out 9/11. The demonstration will take place in front of the Israeli Consulate at 6380 Wilshire Blvd. in Los Angeles between 2 PM and 4PM on Tuesday, May 18th, 2010. We hope you will join us!
This article has been updated with photos of a Zionist Jew attacking Zan on a sidewalk in Los Angeles as he peacefully picketed with a sign that said "Israel – not Muslims – did 9-11".

May 17 18:36

Scientists Claim Tarballs Will Hit Florida Keys Within Two Weeks

By: johnu78
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May 17 18:14

Penn. activist facing 8 years in prison after videotaping officers outside courthouse

By: disinter
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George Donnelly, the Pennsylvania videographer who was arrested last week for videotaping federal officers in front of an Allentown courthouse, is facing eight years in prison for his deed.

May 17 18:10

The Coming Sedition Act?

By: disinter
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The gangster government now in control in our nation’s capitol is a grim and repugnant reminder that freedom, at best, is ephemeral. At worst, it’s a myth. In fact, true freedom – like true capitalism – has never existed anywhere on this planet. Rest assured that those with an insatiable lust for power will never allow either to occur.

May 17 17:46

Pelosi to Aspiring Musicians: Quit Your Job, Taxpayers Will Cover Your Health Care

By: 12160.org
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Does silicone poising lead to retardation ?

May 17 17:39

Israeli soldier dancing around a tied woman

By: PoliticalTheatrics
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WHAT REALLY HAPPENED | The History The US Government HOPES You Never Learn!

A Free Press for a Free People

Thursday, May 13th, 2010

 

LAW OF THE LAND
WorldNetDaily Exclusive

Kagan’s 9/11 connection
you haven’t been told
You won’t believe whose side
Obama pick took after terror

–WND



WorldNetDaily Exclusive
Kagan slammed own memo during 1st Senate hearing
Obama pick calls her writing ‘dumbest thing I ever read’
–WND

IN THE FIRST PERSON
WorldNetDaily

Kagan wanted a ‘more leftist left’ after Reagan election
College opinion piece lamented ‘liberal camp’ losses in 1980
–WND

WorldNetDaily Exclusive
Petition drive to stop Kagan confirmation
Farah announces campaign to fight Supreme Court takeover
–WND

WorldNetDaily Exclusive
Give Senate spine transplant
Easy, inexpensive, effective way to block Kagan nod
–WND Superstore

Kagan ‘not sympathetic’ to gun-rights argument
Man contended constitutional rights violated by D.C.’s firearms statute
–Bloomberg News

Did Kagan cover up leak involving eco-terrorists?
Questions surround handling of White House controversy involving standoff in Oregon
–Washington Examiner

White House won’t let reporters question Kagan
Posts ‘interview’ with nominee conducted by government employee
–CBS News

GOP wants Clinton-era papers on Kagan
Focus reflects difficult task of turning up material that could power opposition to nominee
–Los Angeles Times

WorldNetDaily Exclusive
The question everyone’s whispering about Kagan
Voices from both sides of cultural divide ask: ‘Is she a lesbian?’
–WND

Kagan softball pic blasted for sexuality implication
‘Might as well have gone with a headline that said, Lesbian or switch-hitter?’
–Politico

Friends say Kagan not ‘gay’
Eliot Spitzer: ‘I did not go out with her, but other guys did’
–Politico

WND.COMMENTARY
‘Manchurian’ smear misfires
Exclusive: Jack Cashill offers further evidence of Bill Ayers’ ghostwriting for Obama
–WND

WorldNetDaily Exclusive
Obama exposé scorches charts
‘Manchurian President’ tops 2 Amazon ‘hot’ lists
–WND


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–Stansberry & Associates Investment Research


BORN IN THE USA?
WorldNetDaily Exclusive

Investigators: Obama uses Connecticut Soc. Sec. #
3 experts insist White House answer new questions about documentation
–WND

WorldNetDaily Exclusive
Obama eligibility ‘trial’ set to launch
Academics, citizenship to be investigated
–WND

WorldNetDaily Exclusive
Hearing set for officer challenging eligibility
Army doctor’s investigation scheduled for June 11
–WND

9 indicted for accessing Obama’s student-loan records
Defendant: ‘I don’t know what the others did, but I know that I did not do it’
–Quad-City Times, Iowa

New Hawaii law shuns Obama birth-certificate requests
Republican Gov. Linda Lingle doesn’t elaborate on her reasons for signing bill
–Associated Press

WND POLL
Origin of the specious
Why do you think Obama has a Connecticut-based Social Security Number?
–WND

WorldNetDaily Exclusive
NASCAR has new connection to Obama’s birth certificate
Drivers near famed racetrack confronted with president’s eligibility
–WND

WorldNetDaily Exclusive
‘New eligibility strategy working’
Petition drive spurs action in half a dozen states
–WND

THE FULL STORY
WorldNetDaily Exclusive

Is Obama constitutionally eligible to serve?
WND’s complete archive of news reports on the issue
–WND

WND FILMS
WorldNetDaily Exclusive

The movie Obama doesn’t want you to see!
Own the DVD that probes this unprecedented presidential eligibility mystery!
–WND

WND APPAREL
Make yourself a walking billboard!
T-shirt demands eligibility proof from Obama
–WND Superstore


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WND.COMMENTARY
Why some are offended by a little girl’s flag
David Kupelian on why so many today see good as evil, and evil as good
–WND


DAY OF INFAMY 2001
WorldNetDaily Exclusive

Islamic mosque at 9/11 Ground Zero sparks protest
‘Any decent, American, Muslim or otherwise, wouldn’t dream of such an insult’
–WND

WND POLL
New York City Allah-buzz
What do you think about building an Islamic mosque at 9/11′s Ground Zero?
–WND


HOMELAND INSECURITY
Obama slashing NYC anti-terror funding
Pleas from lawmakers fall flat despite recent attempted Times Square bombing
–New York Post

FBI raids homes, gas station in Times Square probe
Multiple searches across Northeast target potential cash connections
–NBC News


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BLACK-GOLD BLUES
Obama to punish oil companies with tax hike
Face immediate increase of 1 cent per barrel to help pay for clean-up in Gulf
–London Times


WND MONEY
WorldNetDaily Exclusive

Cabal killing off U.S. wealth
Investigation documents American economy didn’t fall, it was pushed
–WND

Fed moves on Europe bank-rescue plan
Lawmakers do nothing to deter actions to assist unprecedented $1 trillion bailout
–Washington Times

Budget deficit 4 times higher than last year
Yet White House claims it’s looking to avoid kind of debt crisis that hit Greece
–Reuters

FROM JEROME CORSI’S RED ALERT
WorldNetDaily Exclusive

Bombshell! Actual jobless rate tops 21%
Nearly half of unemployed out of work 27 weeks or longer
–WND

THE OTHER RUSH
It’s government that has ‘made enough money’
Exclusive: Erik Rush uses ‘Twilight Zone’ episode to make point about public ‘service’
–WND

DEAL OF THE DAY
Prepare for ‘The Return of the Great Depression’
Author: We’re in ‘early stages of ongoing economic contraction of massive proportions’
–WND


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MEDIA MATTERS
WorldNetDaily Exclusive

Look who’s scoping out lawsuit against Obama now …
Complaint already cites correspondents for dissing online news site
–WND

Obama calls ‘information’ threat to democracy?
Suggests less is more when it comes to media, some see swipe at blogs, cable TV
–Fox News

A Free Press for a Free People

American Free Press Newspaper

Tuesday, May 11th, 2010

05_10_10_elenakagan

On Monday, Americans woke up to news that the White House had picked Elena Kagan to replace outgoing Supreme Court Justice John Paul Stevens. But who is Kagan? Even some liberals seems to oppose her. Also, questions have come as to whether she’s a lesbian. AFP will continue to update reports on Kagan as they surface.

Hot news links

Full Video of Speech of Ahmadinejad to UN

Pat Buchanan: The End of La Dolce Vita
FEMA in Financial Crisis as Tennessee Sinks
FCC Will Seek Net Neutrality Despite Corporate Pressure
Taxpayers Will Eat Most of the Costs of BP’s Oil Spill Disaster

US AG Says Pakistan Taliban Behind NY Failed Bombing
Clinton Warns Pakistan About ‘Very Severe Consequences’ for Attack in NY

Pentagon Chief Says US Cannot Afford Another Afghan, Iraq War
Democrats Can’t Muster Support to Break Up Banks

Sanders Sells Out on Audit the Fed Provision

Was the Market Pushed?
Europe Throws the Kitchen Sink at the EU Crisis
Would You Tolerate What Is Being Asked of the Greek People?
Riot Dog Kanellos Becomes Symbol of Greek Protesters
Newly Found Photos Show Devastation of Berlin After WWII

Top_story3

PASTOR JOHN HAGEE: Is the Devil in Him?

More_news3

In Defense Of Arizona Immigration Policy
AFP Editor Reports On Secret Gathering
Of Trilats in Ireland

Democrat Leaders Renew Calls for National ID Card
AFP Interviews Anti-Zionist Rabbi Weiss of Neturei Karta
SPLC, ADL Smear Patriots
Child Exploitation Investigator Found Killed in Home
The Short, Hard Life of a Slave Laborer for China

American Free Press Newspaper

ROGUEGOVERNMENT.COM

Thursday, April 22nd, 2010

 

Yes The TSA Is Doing Subway Bag Checks Now

04-22-2010: America’s New $100 Bill Might as Well Be a Euro

Under the guise of stopping counterfeiting the newly designed U.S. Dollar is more colorful and looks more like a Euro than a Dollar.

Former Acorn Head Calls Tea Party "Bowel Movement"

Idiiot Slaves Demand Higher Taxes In Illinois Protest

04-22-2010: Anybody’s Son Will Do

In 1983, the National Film Board of Canada produced a 57-minute film, "Anybody’s Son Will Do". Arguably the best anti-war film ever made, and tailored for public television, it scared the hell out of the U.S. military machine, which has done its best to "disappear" it.

04-22-2010: Goldman’s Chief Executive Visited the White House at Least Four Times

While Goldman Sachs’ lawyers negotiated with the Securities and Exchange Commission over potentially explosive civil fraud charges, Goldman’s chief executive visited the White House at least four times.

04-22-2010: Greece Welcomes Its New IMF Overlords With Day Of Rioting And National Strikes

What do you do when you are the prime minister of a bankrupt country and your only recourse is to get the Washington D.C.-based IMF to come in and tell you you have to cut wages by about 120% and fire 75% of the country?

04-22-2010: Food costs jump most in 26 years

Wholesale prices rose more than expected last month as food prices surged by the most in 26 years.

04-22-2010: Pandemic of panic: The great volcanic shutdown was the price we pay for a society that overreacts to any risk

Well, was it worth it? The six-day shutdown of most of Europe’s and all Britain’s airports is estimated to have cost the airline industry at least £1.2 billion. Millions of people have suffered expense, inconvenience and even distress rescuing themselves from faraway places.

04-22-2010: Goldman Probe Is A Smokescreen

A top Asian fund manager said on Wednesday the civil fraud allegations against massive Wall Street bank Goldman Sachs was a smokescreen to divert attention from the financial crisis in the United States.

04-22-2010: Human Torpedoes Blamed For Korea Ship Strike

An elite North Korean suicide squad of human torpedoes has been blamed for the sinking of a South Korean ship in mysterious circumstances.

04-22-2010: ACTA treaty aims to deputize ISPs on copyrights

Internet service providers could become copyright cops encouraged to block access to suspected pirate Web sites, according to a previously secret draft treaty made public on Wednesday.

04-21-2010: McAfee Antivirus Program Goes Berserk, Freezes PCs

Computers in companies, hospitals and schools around the world got stuck repeatedly rebooting themselves Wednesday after an antivirus program identified a normal Windows file as a virus.

04-21-2010: IEEE: Checks and Cash Slowing Starting To Disappear

The Washington Post is reporting that the US Department of the Treasury will be announcing later today that most federal benefits payments from Social Security to Veteran disability checks will be made by electronic direct deposit beginning 1 March 2013.

04-21-2010: UK relies on ‘virtual’ water from drought-prone countries, says report

Britain and other rich countries depend heavily on importing hidden "virtual" water from places that regularly experience droughts and shortages, according a report published today by the Royal Academy of Engineering.

04-21-2010: Heritage Foundation indignantly denies influencing Obamacare

It’s no surprise that Mitt Romney bent himself into a pretzel to disavow the portions of Obamacare that derive from his own reform in Massachusetts.

04-21-2010: Police Raid Homes Of White Supremacists

The Southern California homes of dozens of white supremacists were raided Tuesday as part of a probe into a string of potentially deadly booby trap attacks targeting police officers, authorities said.

Google Not Interested In Privacy Say Information Czars

04-21-2010: U.S. Soldier Who Felt Bad About Slaughter of Civilians in Iraq: “I was told that I needed to get the sand out of my vagina”

From our own experiences, and the experiences of other veterans we have talked to, we know that the acts depicted in this video are everyday occurrences of this war: this is the nature of how U.S.-led wars are carried out in this region.

04-21-2010: Greece begins bailout talks with EU, IMF

With borrowing costs at a 12-year high and its economy shrinking for a second straight year, Greece is struggling to slash its budget gap with painful austerity measures to convince markets it will not default on its debt.

04-21-2010: BRIC Must Create New World Order

ROGUEGOVERNMENT.COM

Goldman Sachs and the Mega Banks: Too Big To Obey The Law

Tuesday, April 20th, 2010

by Simon Johnson

image

Global Research, April 20, 2010

Baseline Scenario – 2010-04-19

On a short-term tactical basis, Goldman Sachs clearly has little to fear.  It has relatively deep pockets and will fight the securities “Fab” allegations tooth and nail; resolving that case, through all the appeals stages, will take many years.  Friday’s announcement had a significant negative impact on the market perception of Goldman’s franchise value – partly because what they are accused of doing to unsuspecting customers is so disgusting.  But, as a Bank of America analyst (Guy Mozkowski) points out this morning, the dollar amount of this specific allegation is small relative to Goldman’s overall business and – frankly – Goldman’s market position is so strong that most customers feel a lack of plausible alternatives.

The main action, obviously, is in the potential widening of the investigation. This is likely to include more Goldman deals as well as other major banks, most of which are generally presumed to have engaged in at least roughly parallel activities – although the precise degree of nondisclosure for adverse material information presumably varied.  Two congressmen have reasonably already drawn the link to the AIG bailout (how much of that was made necessary by fundamentally fraudulent transactions?), Gordon Brown is piling on (a regulatory sheep trying to squeeze into wolf’s clothing for election day on May 6), and the German government would dearly love to blame the governance problems in its own banks (e.g., IKB) on someone else.

But as the White House surveys the battlefield this morning and considers how best to press home the advantage, one major fact dominates.  Any pursuit of Goldman and others through our legal system increases uncertainty and could even cause a political run on the bank – through politicians and class action lawsuits piling on.

And, as no doubt Jamie Dimon (the articulate and very well connected head of JP Morgan Chase) already told Treasury Secretary Tim Geithner over the weekend, if we “demonize” our big banks in this fashion, it will undermine our economic recovery and could weaken financial stability around the world.

Dimon’s points are valid, given our financial structure – this is exactly what makes him so very dangerous. Our biggest banks, in effect, have become too big to be held accountable before the law.

On a more positive note, the administration continues to wake from its deep slumber on banking matters, at least at some level.  As Michael Barr said recently to the New York Times,

“The intensity, ferocity and the ugliness of the lobbying in the financial sector — it’s gotten worse. It’s more intense.”

This is exactly in line with what we say in 13 Bankers – just take a look at the introduction (free), and you’ll see why our concerns about “The Wall Street Takeover and the Next Financial Meltdown” have grabbed attention in Mr. Barr’s part of official Washington.

But at the very top of the White House there is still a remaining illusion – or there was in the middle of last week – that big banks are not overly powerful politically.  “Savvy businessmen” is President Obama’s most unfortunate recent phrase – he was talking about Dimon and Lloyd Blankfein (head of Goldman).  After all, some reason, auto dealers are at least as powerful as auto makers – so if we break up our largest banks, the resulting financial lobby could be even stronger.

But this misses the key point, which Senator Kaufman will no doubt be hammering home this week: There is fraud at the heart of Wall Street.

And we can only hold firms accountable, in both political and legal terms, if they are not too big.

It is much harder to sue a big bank and win; ask your favorite lawyer about this.  Big banks can more easily hold onto their customers despite so obviously treating them as cannon fodder (take this up with the people who manage your retirement funds).  Big banks spend crazy amounts on political lobbying – even right after being saved by the government (chapter and verse on this in 13 Bankers.)

When you really do want to take on megabanks through the courts – and have found the right legal theory and compelling lines of enquiry – they will threaten to collapse or just contract credit.

No auto dealer has this power.  No Savings and Loan could ultimately stand against the force of law – roughly 2,000 S&Ls went out of business and around 1,000 people ended up in jail after the rampant financial fraud of the 1980s.

We should not exaggerate the extent to which we really have equality before the law in the United States.  Still, the behavior and de facto immunity of the biggest banks is out of control.

These huge banks will behave better only when and if their executives face credible criminal penalties.  This simply cannot happen while these banks are anywhere near their current size.

Fortunately there is precisely zero evidence that we need banks anywhere near their current size – we document this at length in 13 Bankers (in fact, this was a major motivation for writing the book).

Break up the big banks before they do even more damage.
Simon Johnson, co-author of 13 Bankers.

Global Research Articles by Simon Johnson

 

http://www.globalresearch.ca/index.php?context=va&aid=18759

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