Olberman: Meet the Press + The Campaigner in Chief (videos)

Dandelion Salad

heathr234

After President Bush’s press conferen… After President Bush’s press conference this morning 72 Senators voted to condemn the newspaper ad run by MoveOn.org. Dana Milbank weighs in and Keith rips apart the President’s performance at the press conference.

The Campaigner in Chief

Keith discusses George Bush’s trashing the tradition of Presidents at least making the effort to appear they’re above playing politics and being involved in upcoming campaigns. Johnathon Alter weighs in.

see:

Olbermann: Special Comment: Your hypocrisy is so vast + Worst Person (videos)

“Enemy entity”: Why a new name for an old foe? (video; Gaza)

Dandelion Salad

TheRealNews

More at http://www.therealnews.com
Avi…

More at http://www.therealnews.com
Avishai Ehrlich: Is this the first step to a new round of hostilities by Israel against Hamas in Gaza?

2007-09-20

“To threaten now that they will cut off supplies of these essential necessities, to me amounts to collective punishment…”

Biden Breaks Loose in AARP Democratic Debate (video) + Kucinich locked out of debate!

Dandelion Salad

PoliticalChase Sen. Joe Biden (D-DE) breaks loose an…

Sen. Joe Biden (D-DE) breaks loose and separates himself from the other candidates in the AARP Democratic presidential debate held in Davenport, Iowa.

***

AARP deal with private insurers raises serious questions

FOR IMMEDIATE RELEASE

Wednesday, September 19, 2007

WASHINGTON, D.C. – The sponsor of tomorrow night’s Presidential forum in Iowa focused on health care reform has “a $4 billion vested interest in preserving the role of private, for-profit insurance companies in the health care industry,” Ohio Congressman and Democratic Presidential candidate Dennis Kucinich said today.

According to published reports, the American Association of Retired Persons (AARP) “will net AARP $4.4 billion over seven years from the insurance giants United Healthcare and Aetna” with whom the organization signed agreements earlier this year. Under the AARP brand name, the organization will promote Aetna insurance policies to its members between the ages of 50 and 64 and United Healthcare policies for Medicare-eligible members.

Kucinich, the only Democratic candidate proposing a national, not-for-profit health insurance plan that would eliminate for-profit insurers from the health care system (HR 676), was specifically excluded from tomorrow’s forum by AARP.

“It’s clear that they didn’t want me upsetting their multi-billion dollar applecart,” Kucinich said. “The health care plans of the invited candidates preserve and promote the interests of for-profit insurance and pharmaceutical companies at the expense of tens of millions of everyday Americans who either can’t afford coverage or are being over-charged for the inadequate coverage they struggle to afford.”

Kucinich said AARP’s sponsorship of the Presidential forum “is like having Haliburton or Blackwater sponsor a Presidential forum on doing away with no-bid government contracts to private contractors; or an oil company sponsoring a forum on reducing the world’s dependence on oil.”

Kucinich emphasized that he was not taking issue with the 38 million members of AARP. “Millions of trusting AARP members have bought Medicare-supplemental and prescription drug insurance plans from AARP, believing that they were getting a good deal. The ‘AARP name’ was like the ‘Good Housekeeping Seal of Approval.’ It turns out, however, that AARP is taking a $4 billion cut by steering its members to profiteering private insurance companies trying to capitalize on fear and confusion.”

His plan, he explained, “would cover every American, with no premiums, no deductibles, and no co-payments. No one would be denied coverage or services.”

“The fact that Senators Clinton, Obama, and former Senator Edwards are pushing plans to keep the for-profit private insurers in business and in control may explain why they are willing to participate in this fake and tainted debate,” Kucinich said.

He also questioned the decision by Iowa Public Television to televise the Presidential forum and simulcast it to other PBS stations in other states. “Profit-driven and politics-driven media conglomerates are controlling what we see on TV and what we hear on the radio. Public broadcasting should represent a higher, more ethical standard,” he said. “In this case, public broadcasting will shamefully promote private interests.”

h/t: Dennis 4 President in 2008!

Olbermann: Special Comment: Your hypocrisy is so vast + Worst Person (videos)

Dandelion Salad

XpldnBoy Keith’s special comment on George Bus…

A reaction to Thursday’s press conference: the president was the one who interjected Gen. Petraeus into the political dialogue in the first place. A special comment by Keith Olbermann. 9/20/2007

transcript

Worst Person

CSPANJUNKIEdotORG

SEPTEMBER 20, 2007 KEITH OLBERMANN

Hank Williams, Jr: A Country Boy Can Survive (Live) (video; lyrics)

Dandelion Salad

amwars22

Hank Williams, Jr. ‘A Country Boy Can… Hank Williams, Jr. ‘A Country Boy Can Survive’ Music Video.

h/t: DAVID

***

Artist: Williams Hank Jr
Song: Country Boy Can Survive
Album: Greatest Hits

Source

The preacher man says it’s the end of time
And the Mississippi River she’s a goin’ dry
The interest is up and the Stock Markets down
And you only get mugged
If you go down town

I live back in the woods, you see
A woman and the kids, and the dogs and me
I got a shotgun rifle and a 4-wheel drive
And a country boy can survive
Country folks can survive

I can plow a field all day long
I can catch catfish from dusk till dawn
We make our own whiskey and our own smoke too
Ain’t too many things these ole boys can’t do
We grow good ole tomatoes and homemade wine
And a country boy can survive
Country folks can survive

Because you can’t starve us out
And you cant makes us run
Cause one-of- ‘em old boys raisin ole shotgun
And we say grace and we say Ma’am
And if you ain’t into that we don’t give a damn

We came from the West Virginia coalmines
And the Rocky Mountains and the western skies
And we can skin a buck; we can run a trot-line
And a country boy can survive
Country folks can survive

I had a good friend in New York City
He never called me by my name, just hillbilly
My grandpa taught me how to live off the land
And his taught him to be a businessman
He used to send me pictures of the Broadway nights
And I’d send him some homemade wine

But he was killed by a man with a switchblade knife
For 43 dollars my friend lost his life
Id love to spit some beechnut in that dudes eyes
And shoot him with my old 45
Cause a country boy can survive
Country folks can survive

Cause you can’t starve us out and you can’t make us run
Cause one-of- ‘em old boys raisin ole shotgun
And we say grace and we say Ma’am
And if you ain’t into that we don’t give a damn

We’re from North California and south Alabam
And little towns all around this land
And we can skin a buck; we can run a trot-line
And a country boy can survive
Country folks can survive

[Thanks to James Mason for corrections]

‘Giving’ and Taking by Chris Hedges

Dandelion Salad

by Chris Hedges
TruthDig.com
September 17, 2007

Bill Clinton has written a new book. It is called “Giving: How Each of Us Can Change the World.” He will give a portion of the proceeds to charity. Giving, the former president informs us, gives us fulfillment in life and is “the fabric of our shared humanity.”

Continue reading

Foreclosures & The Economy Hearing + Ron Paul (videos; links)

Dandelion Salad

CapNewsNet

Video from:

House Financial Services C…

Video from:

House Financial Services Committee – September 20, 2007

Full committee hearing on “legislative and regulatory options for minimizing
and mitigating mortgage foreclosures.” Witnesses included Henry Paulson, Secretary of the Treasury; Alphonso Jackson, Secretary of Housing and Urban
Development; and Ben Bernanke, Chairman, Board of Governors of the Federal Reserve System

Treasury Chief Paulson [Part II]

http://www.youtube.com/watch?v=p2gmJep6XSo

Fed Chief Bernanke’s Testimony

http://www.youtube.com/watch?v=w6ZsdmjF8Ug

Rep. Frank’s Opening Remarks

http://www.youtube.com/watch?v=IFSCmS6Bft4

Rep. Bachus’ Opening Remarks

http://www.youtube.com/watch?v=wfx79CRS1Og

HUD Secretary Jackson’s Testimony

http://www.youtube.com/watch?v=PQ5WeV_GdTc

Rep. Ron Paul

Fears of dollar collapse as Saudis take fright By Ambrose Evans-Pritchard

Dandelion Salad

By Ambrose Evans-Pritchard, International Business Editor
ICH
09/20/07 “The Telegraph”

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.

“This is a very dangerous situation for the dollar,” said Hans Redeker, currency chief at BNP Paribas.

“Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States,” he said.

The Saudi central bank said today that it would take “appropriate measures” to halt huge capital inflows into the country, but analysts say this policy is unsustainable and will inevitably lead to the collapse of the dollar peg.

As a close ally of the US, Riyadh has so far tried to stick to the peg, but the link is now destabilising its own economy.

The Fed’s dramatic half point cut to 4.75pc yesterday has already caused a plunge in the world dollar index to a fifteen year low, touching with weakest level ever against the mighty euro at just under $1.40.

There is now a growing danger that global investors will start to shun the US bond markets. The latest US government data on foreign holdings released this week show a collapse in purchases of US bonds from $97bn to just $19bn in July, with outright net sales of US Treasuries.

The danger is that this could now accelerate as the yield gap between the United States and the rest of the world narrows rapidly, leaving America starved of foreign capital flows needed to cover its current account deficit – expected to reach $850bn this year, or 6.5pc of GDP.

Mr Redeker said foreign investors have been gradually pulling out of the long-term US debt markets, leaving the dollar dependent on short-term funding. Foreigners have funded 25pc to 30pc of America’s credit and short-term paper markets over the last two years.

“They were willing to provide the money when rates were paying nicely, but why bear the risk in these dramatically changed circumstances? We think that a fall in dollar to $1.50 against the euro is not out of the question at all by the first quarter of 2008,” he said.

“This is nothing like the situation in 1998 when the crisis was in Asia, but the US was booming. This time the US itself is the problem,” he said.

Mr Redeker said the biggest danger for the dollar is that falling US rates will at some point trigger a reversal yen “carry trade”, causing massive flows from the US back to Japan.

Jim Rogers, the commodity king and former partner of George Soros, said the Federal Reserve was playing with fire by cutting rates so aggressively at a time when the dollar was already under pressure.

The risk is that flight from US bonds could push up the long-term yields that form the base price of credit for most mortgages, the driving the property market into even deeper crisis.

“If Ben Bernanke starts running those printing presses even faster than he’s already doing, we are going to have a serious recession. The dollar’s going to collapse, the bond market’s going to collapse. There’s going to be a lot of problems,” he said.

The Federal Reserve, however, clearly calculates the risk of a sudden downturn is now so great that the it outweighs dangers of a dollar slide.

Former Fed chief Alan Greenspan said this week that house prices may fall by “double digits” as the subprime crisis bites harder, prompting households to cut back sharply on spending.

For Saudi Arabia, the dollar peg has clearly become a liability. Inflation has risen to 4pc and the M3 broad money supply is surging at 22pc.

The pressures are even worse in other parts of the Gulf. The United Arab Emirates now faces inflation of 9.3pc, a 20-year high. In Qatar it has reached 13pc.

Kuwait became the first of the oil sheikhdoms to break its dollar peg in May, a move that has begun to rein in rampant money supply growth.

© Copyright of Telegraph Media Group Limited 2007.

 

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. This material is distributed without profit.

The Era of Global Financial Instability By Mike Whitney

Mike Whitney rewrote this story, see: The Era of Global Financial Instability By Mike Whitney (rewrite) ~ Lo

Dandelion Salad

By Mike Whitney
09/20/07 “ICH

“Scientists say they have discovered a hole in the universe. We’re not surprised. We knew something was wrong.”

Bill Bonner, “The Daily Reckoning”

Wall Street loves cheap money. That’s why traders were celebrating on Tuesday when Fed chief Ben Bernanke announced that he’d drop interest rates from 5.25% to 4.75%. The stock market immediately zoomed upward adding 336 points before the bell rang. The next day the giddiness continued. By mid-morning the Dow was up another 110 points and headed for the stratosphere. Everyone on Wall Street loves Bernanke. He brings them candy and sweets and lets the American worker pay the bill.

We’re disappointed in the new Fed Chief. We thought he would be different than Greenspan. We were taken in by his scholarly appearance and his modest demeanor. We thought we sensed the heart of a real patriot—a man of character and conviction. We were wrong. In his first crisis, Bernanke caved in and gave away the store. He rewarded his fat-cat friends at the hedge funds and investment banks while paving the way for more inflation for the rest of us. Presently, gold is soaring at $736 per ounce, oil is at $82 per barrel, and the euro just climbed to a new high of $1.40. Food and energy prices are bound to skyrocket. Bernanke has crushed the dollar for a “last fling” on Wall Street. It’s madness.

Bernanke invoked the “Greenspan put”, which means that he used his power to protect his friends from the losses they should have incurred from their bad bets. Now, the big market players know that he can be counted on to bail them out whenever they make poor investment choices. He’s also lived up to his nickname, “Helicopter Ben”; ready to deal with every new calamity by tossing trillions of freshly-minted US greenbacks into the jet-stream over the NYSE so elated traders can jack-up their PEs and fatten their bottom line . We think Bernanke should abandon the helicopter altogether and personally deliver pallet-loads of $100 bills to Wall Street’s doorstep on a Fed-owned fork-lift, just like Bush does with contractors in Iraq. That way the fund managers and blue suits can keep stoking the market with cheap cash without wasting time at the Fed’s Discount Window.

Despite the merriment on Wall Street, there is a downside to Bernanke’s actions. The Fed chief has shown foreign investors that he WILL NOT DEFEND THE DOLLAR. That is a powerful message to anyone who hopes to profit by investing in the US. It alerts them to the fact that the “strong dollar” policy is a fraud and that they’re better off getting out of US Treasuries and dollar-backed assets. Apparently, they got the message. Last month, foreign central banks and investors dumped $9.4 billion of US Treasuries and bonds compared to net purchases in June of $24.7 billion. That means that foreigners have stopped buying our debt which is currently $800 billion per year. That’s the last leg holding up the wobbly greenback. The dollar will undoubtedly fall precipitously.

So, why would Bernanke weaken the dollar even more by lowering rates 50 basis points?

Is he crazy or did he panic?

We don’t know, but we do know that this is the beginning of Capital flight—the sudden exodus of foreign investment from US debt and equities. Most likely, it will be accompanied by the hissssing sound of gas escaping from a punctured equity bubble followed quickly by a painful round of deflation, massive unemployment and the gnashing of teeth.

Surprisingly, Bernanke’s rate cuts don’t even address the underlying problems they are supposed to cure. Millions of homeowners who took out subprime and Alt-a loans are headed for foreclosure. Only a small percentage of these will benefit from the rate cuts and avoid default because of lower “resets” on their loans. Most of them will not qualify for refinancing UNDER ANY TERMS because they don’t meet the new standards for securing a loan. Banks and mortgage companies have become much stricter in their loaning practices.

The rate cuts don’t really help the banks or hedge funds either. Their stocks may lurch upward for a day or two, but that won’t last. Money is getting tighter and spending is down. It’s not a good time to be holding hundreds of billions in mortgage-backed liabilities (CDOs) which may have been levered many times their original-value. There’s no market for these CDOs. They’re turkeys. The debt will either have to be written off or the companies will be forced into bankruptcy.

Rate cuts won’t stem the tide of insolvencies or fix the deeply-ingrained problems in the financial markets. All they will do is forestall the impending recession by sustaining abnormal levels of liquidity. But as consumer spending shrinks and unemployment continues to rise; the Fed’s “band-aid” approach to these systemic problems will prove to be ineffective. Bernanke is sacrificing the one thing he’ll need most in the bumpy months ahead; his credibility.

As economist and author Henry Liu says, “A market that catches on to the impotence of central-bank intervention can go into free fall.”

The most compelling argument for interest rate cuts was made by economist Martin Feldstein in a Wall Street Journal article “Liquidly Now”. Feldstein summarized the issue like this:

“Three separate but related forces are now threatening economic activity: a credit market crisis, a decline in house prices and home building, and a reduction in consumer spending. These developments compound the general weakening of the economy earlier in the year, marked by slowing employment growth and declining real spendable income.”

“The subprime mortgage defaults have triggered a widespread flight from risky assets, with a substantial widening of all credit spreads, and a general freezing of credit markets. Official credit ratings came under suspicion. Investors and lenders became concerned that they did not know how to value complex risky assets.

In some recent weeks credit became unavailable. Loans to support private equity deals could not be syndicated, forcing the banks to hold those loans on their own books. Banks are also being forced to honor credit guarantees to previously off-balance-sheet conduits and other back-up credit lines, further reducing the banks’ capital available to support credit of all types.

The inability of credit markets to function properly will weaken the overall economy in the coming months. And even when the credit market crisis has passed, the wider credit spreads and increased risk aversion will be a damper on economic activity.

In addition to these general credit market problems, the decline of house prices and home building will be a growing drag on the economy….Falling house prices would not only cause further declines in home building but would also shrink household wealth and thus consumer spending.”

Feldstein demonstrates a keen understanding of the problem, but backpedals on the remedy:

“Fed action to lower interest rates cannot solve the credit market problems, but it would help the economy: by stimulating the demand for housing, autos and other consumer durables; by encouraging a more competitive dollar to stimulate increased net exports; by raising share prices to increase both business investment and consumer spending; and by freeing up spendable cash for homeowners with adjustable-rate mortgages”.

What? So Feldstein wants rate cuts even though he admits that “lower interest rates cannot solve the credit market problems” but will just stimulate more wasteful “consumer spending”?!?

That’s not a cure, Martin. That’s just more Greenspan snake oil.

“Too much liquidity” is the problem not the solution. The reason the markets are so volatile and likely to implode at any minute is because every asset-class has been foolishly inflated by a monetary policy that followed Feldstein’s prescription. Now he wants to avoid the consequences of these misguided policies by reflating the bubble and destroying the dollar in the process. It’s a bad idea.

The Fed’s cuts coincide with the dismal earnings reports from Wall Street’s investment giants; Lehman Brothers, Morgan Stanley, Bear Stearns and Goldman Sachs. The four banks have taken a combined 22% haircut in the last quarter and are expected to sustain heavy losses from the billions of dollars of subprime CDOs they’ll have to either downgrade or write-off. So far, Bernanke’s rate cuts have diverted attention from the grim news and falling profits from America’s investment core.

The big financials aren’t the only one’s feeling the pinch from the housing meltdown either. There are many others including Bank of America that announced “unprecedented dislocations” in credit markets will have a “meaningful impact” on third-quarter results at its corporate investment bank. “Chief Financial Officer Joe Price told investors at a conference in San Francisco, ‘These are quite challenging financial times, and I cannot remember when credit markets in particular have been as volatile and unpredictable as they have been for the last few months.”’ (Bloomberg News)

Bernanke’s rate cuts are “thin gruel” for the banks bottom line, but they do offer a welcome distraction from the relentless drumbeat of bad economic news. The subprime sarcoma has spread to every part of the financial markets. It’s not just the steady up tick of foreclosures and mushrooming real estate inventory. The banks are also hoarding capital to cover their losses on unmarketable CDOs and leveraged buyouts (LBOs) which means that new mortgages will slow to a crawl even to credit-worthy applicants. An article in Bloomberg News gives us some idea of how quickly the market for housing-related bonds has deteriorated:

“Sales of US asset-backed securities, such as bonds that repackage subprime loans or credit card debts as well as collateralized debt obligations., FELL73% FROM A YEAR EARLIER to $30 billion last month, according to estimates from analysts at Deutsche Bank AG”. (Bloomberg News)

Bernanke is just prolonging the pain by not allowing the market to complete its cycle so that bad debts to be written off and industry can retool for the future. He’s buying time for his banker-friends, but doing considerable damage to the dollar in the process. Jim Rogers, the chairman of Beeland Interests Inc. summed up the rate cuts like this:

“Every time the Fed turns around to save its friends on Wall Street, it makes the situation worse. The dollar’s going to collapse, the bond market’s going to collapse. There’s going to be a lot of problems in the U.S.”

Rogers is not alone in his conclusions.

Even foreign leaders, like Venezuelan President Hugo Chavez, have commented recently on the worrisome state of US markets. Three days ago Chavez said on public television that we may be facing a “global financial earthquake” as the result of “irresponsible” US economic policies. Chavez quoted Nobel Laureate Joseph Stiglitz’s warning that we may be facing a major economic disaster which could lead to “widespread misery, hunger and severe unrest. And the United State is to blame.”

Chavez added that the Bush administration “has had to inject $300 US billion into the private banks this month to avoid a collapse of the dollar and the world economy ….The dollar is going down, they don’t see that it isn’t supported by reality” and because it is “because its fiscal deficit is the largest in history.”

Chavez’s predictions appear to be accurate as we can see that gold has suddenly skyrocketed while the dollar continues to fall.

The firestorm that began with the Fed’s low interest rates in 2002-2003 and evolved into the subprime-lending crisis of 2006-2007 is now threatening the stability of the entire financial system and the broader global economy. The reason for this is that mortgage debt is the foundation upon which all manner of bizarre-sounding debt-instruments are now resting. These debt-instruments (derivatives) greatly magnify the leverage on the underlying asset which is often is nothing more than a dodgy subprime loan.

According to Satyajit Das, a respected authority on derivatives trading, “A single dollar of “real” capital supports $20 to $30 of loans. This spiral of borrowing on an increasingly thin base of real assets, writ large and in nearly infinite variety, ultimately created a world in which derivatives outstanding earlier this year stood at $485 trillion — or eight times total global gross domestic product of $60 trillion.” (Are We Headed for an Epic Bear Market” Jon Markman)

We are now seeing the first signs that this enormous debt-bubble is beginning to unwind. There’s very little the Fed can do to affect the inevitable crash. As defaults in housing continue to rise; the swaps and derivatives in the secondary market will implode. Trillions in market capitalization will vanish in a flash.

US GDP for the last 6 years has largely depended on transactions involving the exchange of massively over-levered assets. Production in the real economy has remained flat. The investment banks are at the epicenter of this controversial new system called “structured finance”. We continue to believe that the banks that depended on mortgage-backed securities (MBSs) and collateralized debt obligations (CDOs) (as well as asset-backed commercial paper) for the bulk of their income; are in deep trouble. Robert E. Lucas alluded to potential bank-woes in an article in the Wall Street Journal, “Mortgages and Monetary Policy”:

“There is an immediate risk of a payments crisis, a modern analogue to an old-fashioned bank run. Many institutions — not just banks – HAVE PAYMENT OBLIGATIONS THAT ARE FAR IN EXCESS OF THE RESERVES TO WHICH THEY HAVE IMMEDIATE ACCESS. Against these obligations they hold short-term securities that they believed could be liquidated on short notice at little cost. If some of these securities turn out not to be liquid in this sense (and especially if no one is sure who holds them) then everyone wants to get into Treasury bonds.”

It‘s rare when we are in agreement with the far-right viewpoints of the WSJ’s Editorial page, but in this case, Lucas nailed it. The banks have “obligations that are far in excess of the reserves to which they have immediate access.” This is a direct result of the new market architecture of “structured finance” which stacks debt on debt until the whole system is pushed to the breaking point.

Low interest rates can’t fix this “systemic” problem. Only fiscal policy can soften the blow of a deflating credit bubble. Economist Henry Liu offers this constructive “New Deal-type” proposal which is a sensible (and ethical) way to address the prospect of growing unemployment and increasing economic hardship for the middle and lower classes:

“A case can be made that what is needed under current conditions is not more cheap money from the Fed, but full employment with rising wages by government fiscal stimulants to boost consumer demand. The US government should make use of the money that the banks cannot find worthy borrowers to lend to, with money-cautious investors seeking to lend to the government, creating jobs for infrastructure rehabilitation and upgrading education to get the economy moving again off the destructive track of privatized systemic financial manipulation.” (“Either Way, It could be an Unkind Cut” Henry C K Liu, Asia Times)

Americans will be forced to wean themselves off debt-spending but—at the same time—the current market system must be completely transformed and re-regulated. The financial innovations of the last decade have created an opaque system that rewards clever debt-schemes and ignores productivity. Structured finance promised to use capital with greater efficiency while distributing risk more evenly throughout the system. Instead, it has polluted world financial markets and pushed the global economy to the brink of disaster.

Author Gabriel Kolko summed it up better than anyone in his article “The Predicted Financial Storm Has Arrived”:

“We are at an end of an era…Now begins global financial instability. It is impossible to speculate how long today’s turmoil will last-but there now exists an uncertainty and lack of confidence that has been unparalleled since the 1930s-and this ignorance and fear is itself a crucial factor. The moment of reckoning for bankers and bosses has arrived. What is very clear is that losses are massive and the entire developed world is now experiencing the worst economic crisis since 1945, one in which troubles in one nation compound those in others.

Internationalization of finance has meant less regulation than ever, and regulation was scarcely very effective even at the national level….. Greed’s only bounds are what makes money. Existing international institutions-of which the IMF is the most important–or well-intentioned advice will not change this reality.”

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. This material is distributed without profit.

The Police State Is Right Here, Right Now By Carolyn Baker

Dandelion Salad

By Carolyn Baker
09/20/07 “ICH

As nightfall does not come all at once, neither does oppression. In both instances, there is a twilight when everything remains seemingly unchanged. And it is in such a twilight that we all must be aware of change in the air-however slight-lest we become unwilling victims of the darkness.

~Justice William O. Douglas~

In April, 2007 I was pleasantly surprised to find Naomi Wolf’s article, “Fascist America, in 10 easy steps” posted in several places online. I have been a fan of Wolf for many years, greatly appreciating her works and especially her 1991 book, The Beauty Myth. I had been looking for a list-or more specifically, an encyclopedia of the losses of civil liberties in the United States that might clarify for my history students the extent to which America has become a fascist empire. Wolf’s “10 Easy Steps” was perfect, but her just-published book, The End Of America: Letter Of Warning To A Young Patriot, from which the 10 easy steps was compiled, offers an even fuller picture-a succinct and engaging explanation of how our civil liberties have been hijacked in the past decade. It is the most poignant, powerful, genuinely patriotic piece of literature I have encountered since Thomas Paine’s Common Sense. No wonder then, that the book’s cover greatly resembles that 46-page tract by Paine written in 1775-as well it should.

One of the most frightening realities of teaching college history is that most students rarely have a clue what fascism is. They know about Hitler and the extermination of Jews, but they see little connection with Nazi rule in the 1930s and 40s and the current political milieu in the United States. Overwhelmingly, they cannot define fascism, nor can they define socialism or democracy. After all, they were pre-occupied during grammar school with becoming standardized human beings by way of taking standardized “No Child’s Behind Left” tests, five hours a day, four days a week. So why would they know the definitions of fascism, socialism or democracy?

Refreshingly, Wolf is not shy about using the term fascism and lets the reader know why. “I have made a deliberate choice in using the terms fascist tactics and fascist shift when I describe some events in America now. I stand by my choice. I am not being heated or even rhetorical; I am being technical.” (20) She explains that where Americans tend to see the various political “isms” as all-or-nothing, that perception is often inaccurate because of what she calls a “range of authoritarian regimes, dictatorships, and varieties of Fascist states…there are many shades of gray on the spectrum from an open to a closed society.” (20)

Wolf also emphasizes that America has flirted with fascism openly in the 1930s when numerous corporations and robber barons helped finance Hitler and when as Edwin Black notes in IBM And The Holocaust, some American corporations assisted the Nazi regime in carrying out its “final solution” to the “Jewish problem.” In fact, several of these corporate tycoons attempted to stage a coup d’ etat to overthrow Franklin Roosevelt in 1933 and restructure the American government under fascist control. A thorough investigation of American politics and society from the end of the Civil War until the present moment reveals, as I have carefully traced in my book U.S. History Uncensored: What Your High School Textbook Didn’t Tell You, that much of recent American history is replete with a preference on the part of corporations and the politicians they own for an economic and political system on the far right end of the spectrum. In fact, resistance to fascism in the United States has been an arduous and daunting struggle for those who have been able to understand and oppose the appeal that fascism has to the corporatocracy, and in fact, take seriously Mussolini’s fundamental definition of fascism: “Fascism should more properly be called corporatism because it is the merger of state and corporate power.”

As an historian who views American history as the complex unfolding of events that it is, I feel invigorated upon hearing someone like Wolf-especially the Wolf of feminist Beauty Myth fame-part company with the presentation of the Founders as “dead white men” inwardly tormented by various hypocrisies, such as the ownership of slaves and the subordination of women. Yes, Jefferson owned slaves and fathered six children by one of them, but what gets lost in that drama and other colorful stories of the Founders is that they were also thinking, speaking, and writing highly subversive thoughts. “You are not taught,” says Wolf, that “these men and women were radicals for liberty; that they had a vision of equality that was a slap in the face of what the rest of their world understood to be the unchanging, God-given order of nations; and that they were wiling to die to make that desperate vision into a reality for people like us, whom they would never live to see.” (27) I do not wish to romanticize the Founders and their generation living in a milieu replete with racism, misogyny, and classism, but neither will I throw their achievements out with the bathwater of political correctness, nor is Wolf willing to do so in her examination of them.

In the “10 easy steps” outlined by Wolf, countries move from open to closed and repressive societies by devolving past certain markers, and Wolf makes a powerful case for the way in which the United States is following a similar pattern without any significant deviation. In each instance she compares and contrasts how America’s adherence to the pattern compares or contrasts with the pattern in pre-World War II Germany. The 10 steps are:

  1. Invoking an external and internal threat
  2. Establishing secret prisons
  3. Developing a paramilitary force
  4. Surveiling ordinary citizens
  5. Infiltrating citizens’ groups
  6. Arbitrarily detaining and releasing citizens
  7. Targeting key individuals
  8. Restricting the press
  9. Casting criticism as “espionage” and dissent as “treason”
  10. Subverting the rule of law

As noted in the quote from Justice Douglas above, the fascist shift is a protracted process; it never happens overnight, and in U.S. History Uncensored, I offer an historical narrative describing exactly how we have arrived where we are-at “the end of America”. Some aspects of the process were generated before the U.S. Civil War, but our recent history is nothing less than the story of the acceleration of the fascist agenda and the death of the Republic.

Frequently, books come into our lives with momentous timing. Several weeks ago a friend of mine was traveling through a small town in upstate New York looking for the location of a meeting he was scheduled to attend. Realizing that he was lost, he spotted a police officer in a marked car and waived to the officer to pull over. The officer pulled over, and my friend innocently got out of his car to walk back to the officer’s car. Suddenly, the officer’s voice came blasting across a loud speaker, “Get back in the car! Stop where you are! Get back in the car!” My friend returned to his vehicle and waited for the officer to approach his driver’s side window. The officer, with a hand on his holstered firearm, angrily asked my friend what he wanted. When my friend asked him for directions, he replied with hostility that he didn’t know the location of the place for which my friend was searching and once again repeated, “Never get out of your car when you’re dealing with a police officer.” So much for asking directions from a police officer these days.

On another occasion, two friends of mine returning from Canada were detained at the U.S./Canadian border, and while one of them had a U.S. passport, the other had forgotten to bring his. He produced a variety of identification but was taken aside, questioned, shouted at, and harassed in an extremely hostile manner as if he were an enemy of the state. Fortunately, after over-the-top intimidation from a couple of surly customs officers, he was allowed to enter the U.S.

About three weeks ago I was returning from a routine visit to the dentist in Mexico and had a U.S. passport with me, even though none will be required for returning from Mexico until January, 2008. I was told by a very aggressive female customs agent to pull over to the center where vehicles are detained. I was ordered in a very hostile manner to give her my driver’s license and the keys to my vehicle and stay in my vehicle. When I asked what the problem was, I was told to be quiet and again, to stay in my vehicle. Having taught in Mexico for three years, returning to the U.S. every day and rarely having to show any identification whatsoever, I found this procedure to be astonishingly rigid and unnecessary. I have made many trips to Mexico in recent months and have never had any problem when the automatic photos that are taken of every license plate crossing the border appeared on U.S. Customs computer screens.

After what seemed like an eternity the female officer returned and told me that it appeared that I had had an expired vehicle registration four years ago which I had not taken care of and that I needed to do so at once. She gave me the name of the court where the offense was allegedly registered. The very next day I contacted the court and discovered that indeed I had been stopped four years ago for an expired registration for which I was given a warning. Every year since, I have purchased my annual registration well before the deadline, but the offense was never brought to my attention, and I even acquired a new driver’s license last year through the motor vehicles division and was not informed of the offense. Not wanting any further hassle regarding the “heinous crime” of having an expired registration four years ago, I agreed to pay the small fine imposed by the court.

Some readers may assume that I was harassed because of who I am and my open delivery of alternative news and opinions on this website daily. I, on the other hand, do not believe that this was “all about me.” Whether or not it was, it is blatantly obvious to me that the behavior of law enforcement in the United States has shifted dramatically in recent months. Whether or not I was targeted, which I sincerely doubt, this kind of treatment is becoming standard in law enforcement procedure throughout the United States.

And now fast-forward to Monday, September 17, 2007 (U.S. Constituion Day), at the University of Florida and the tasering of a student questioning John Kerry regarding the 2004 elections and Kerry’s membership in Skull and Bones-an incident which has been viewed by millions on the internet and on mainstream TV news broadcasts. Writing of this debacle, Wolf’s article “A Shocking Moment For Society” appeared on various internet sites this morning, and in it she states:

There is a chapter in my new book, The End of America, entitled “Recast Criticism as ‘Espionage’ and Dissent as ‘Treason,'” that conveys why this moment is the horrific harbinger it is. I argue that strategists using historical models to close down an open society start by using force on ‘undesirables,’ ‘aliens,’ ‘enemies of the state,’ and those considered by mainstream civil society to be untouchable; in other times they were, of course, Jews, Gypsies, Communists, homosexuals. Then, once society has been acculturated to that use of force, the ‘blurring of the line’ begins and the parameters of criminalized speech are extended – the definition of ‘terrorist’ expanded – and the use of force begins to be deployed in HIGHLY VISIBLE, STRATEGIC and VISUALLY SHOCKING WAYS against people that others see and identify with as ordinary citizens. The first ‘torture cellars’ used by the SA, in Germany between 1931 and 1933 – even before the National Socialists gained control of the state, during the years when Germany was still a parliamentary democracy – were informal and widely publicized in the mainstream media. Few German citizens objected because those abused there were seen as ‘other’ – even though the abuse was technically illegal. But then, after this escalation of the use of force was accepted by the population, students, journalists, opposition leaders, and clergy were similarly abused during their own arrests. Within six months dissent was stilled in Germany.

What is the lesson for us from this and from other closing societies, some of them democracies? You can have a working Congress or Parliament; newspapers; human rights groups; even elections; but when ordinary people start to be hurt by the state for speaking out, dissent closes quickly and the shock chills opposition very, very fast. Once that happens, democracy has been so weakened that major tactical and strategic incursions – greater violations of democratic process – are far more likely. If there is dissent about the vote in Florida in this next presidential election – and the police are tasering voters’ rights groups – we will still have an election.

What we will not have is liberty.

We have to understand what time it is. When the state starts to hurt people for asking questions, we can no longer operate on the leisurely time of a strong democracy – the ‘Oh gosh how awful!’ kind of time. It is time to take to the streets. It is time to confront those committing crimes against the Constitution. The window has now dropped several precipitous inches and once it is closed there is no opening it without great and sorrowful upheaval.

As I read Wolf’s latest article, I realized that despite my enormous admiration for her and The End Of America, there are a number of areas where I must disagree with her.

First, the only thing shocking to me about the University of Florida incident is that so many Americans are shocked that it happened. Last night I posted a communication to her mailing list regarding the incident from former Congresswoman Cynthia McKinney who says:

No police officer should be in the business of denying Constitutional rights to anyone; I am particularly chagrined when it appears that a black police officer participated in this attack on an innocent student.

What is happening to us???? How much more will the people accept?? I was outraged as early as 2000 when Florida was stolen and the Democrats said nothing!!!! Now, innocent students get tasered just for asking questions.

What kind of US Senator do we have who can’t or won’t answer a question about his own election that affects all of us???

Wolf has given us a compendium of civil and Constitutional rights stolen from us during the past eight years of the Bush administration. If one understands this odyssey of oppression, then yesterday’s tasering of a questioning student makes perfect sense. I appreciate why Wolf used the word “shocking” in her most recent article, but I’d be willing to bet that she isn’t shocked at all-not after the extraordinary documentation she has given us in The End Of America. What I do believe she wishes to clarify is the intentionally traumatizing methodology of law enforcement to maintain social control.

Secondly, I must take issue with Wolf regarding her statement that “…we on the left must snap out of our ‘it’s-all-the-WTO-the-two-parties-are-the-same’ torpor…We have to reengage in an old-fashioned commitment to democratic action and believe once again in an old-fashioned notion of the Republic. We need to help lead a democracy movement in America like the ones that have toppled repressive regimes overseas.” (141)

Again, let’s fast forward not to Monday, but today and the headline “Senate bars bill to restore detainee rights“-a decision which supports the Bush administration’s denial of habeas corpus to Guantanamo prisoners who want to challenge their imprisonment in court. Need we reiterate one more time that since the 2006 elections, the Democrats have done virtually nothing to end the occupation of Iraq? Need we watch the video one more time of John Kerry standing mute and statue-like on the University of Florida auditorium stage-saying or doing nothing as a student was tasered for asking him why he handed the 2004 election to George W. Bush? Does anyone seriously believe that in a world where fellow students applaud as police remove and taser a questioning student and do nothing to speak up against such an outrage that we will see a viable, effective “democracy movement in America like the ones that have toppled repressive regimes overseas”?

As for Wolf’s suggestion in today’s article that we “take to the streets”, the police state is preparing for that eventuality as well by letting us know that it has developed severely injuring electromagnetic crowd control technology that will dramatically limit how many and how often people can “take to the streets.” Welcome to full-spectrum “1984”.

I repeat: the police state is right here, right now!

Moreover, some pivotal factors that Wolf has not addressed are global energy depletion, climate change, and global economic meltdown which are exacerbating the fascist shift about which she so brilliantly writes and which will continue to embolden that shift as energy scarcity, climate chaos, and financial crises add fuel to the fires of terrorism that the ruling elite have so consciously and carefully incited and fanned throughout America. As American society continues to unravel, the fascist shift will escalate, and what is left of our civil liberties will further evaporate.

As for political parties, I prefer the definition offered by Mike Ruppert in “America: From Freedom To Fascism” in which he explains that the two major parties are like two crime families-the Genoveses and the Gambinos. They function like players in a crap game that feign opposition to each other, but when the chips are down, they will always unite to serve their common interests. (If the Iraq occupation is not a case in point, then I don’t know what is.) When we vote in presidential elections for corporately-owned candidates or “the lesser evil”, we are merely choosing between the two crime families, and even if one candidate were not a crime family member, our votes in the past two presidential elections, as Bev Harris has so astutely demonstrated, have been hacked. In the throes of the current, and I might add, rapidly-accelerating fascist shift, what evidence do we have for assuming that if there is an election in 2008, anything will be different? Tell me again, what’s the definition of insanity?

At this moment another Naomi comes to mind-Naomi Klein whose book Shock Doctrine I shall soon review on this site. In that work Klein documents one of the key strategies of fascist empires: shocking their citizens into submission in a variety of ways from widespread societal terrorism to the administering of electroshock therapy to individuals. What we witnessed at the University of Florida yesterday, and what we are likely to see more frequently in America, are deliberate shock tactics applied by law enforcement to citizens for the purpose of achieving massive social control.

Some of my students who are criminal justice majors tell me that the latest strategies now being taught to police officers are “shock doctrine” techniques which terrorize and intimidate civilians in order to control them. Law enforcement officers are no longer encouraged to “keep a cool head” but to “follow their own instincts” (which usually means their own internal, adrenaline-charged state of terror) and react with full force because it’s easier to apologize (or encounter a lawsuit) than to ask permission or risk being killed. Terrified people should not be wearing a badge and carrying a gun, and when they are, a fully terrorized society is guaranteed.

In spite of my disagreements with Naomi Wolf’s suggested solutions, I cannot recommend The End Of America enthusiastically enough. It is now a permanent part of my U.S. history curriculum and is an ideal tool not only for educators, but for parents who want to teach their children where all those civil liberties we used to have actually came from as well as how and why they are disappearing in the present moment.

Carolyn is an adjunct professor of history, a former psychotherapist, an author, and a student of mythology and ritual. Visit Carolyn’s website http://carolynbaker.net/

Speaking Truth to Power

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. This material is distributed without profit.

see:

Fascist America, in 10 easy steps by Naomi Wolf

The Colbert Report: 10 Easy Steps to Fascism by Manila Ryce (video link)

Reviewing Naomi Klein’s “The Shock Doctrine” by Stephen Lendman

Student Tasered for Armed Madhouse Question to Kerry by Greg Palast + UF Lacks Freedom of Speech + Protest for Meyer (video; link)

The Whitehouse Coup – The Dark Heart Of Fascism In The United States (must-listen audio link)

Bush Fulfills His Grandfather’s Dream By David Swanson

Machine Tools: Another Terror War Triumph for the Texas Twerp by Chris Floyd

Dandelion Salad

Written by Chris Floyd
Empire Burlesque
Wednesday, 19 September 2007

Machine Tools: Another Terror War Triumph for the Texas Twerp

How many times must a duck go “quack,” before you call it a duck?
– with apologies to Bob Dylan.

The Senate has failed to move forward on a bill to restore the ancient right of habeas corpus to captives of the Bush Regime’s Terror War, many of whom have proved to be innocent people — sometimes kidnapped, sometimes sold into captivity by bounty hunters — caged without legal protection, often for years on end. With a few momentarily honorable exceptions, the Republicans voted in near lock-step to support George W. Bush’s perversion of the Magna Carta and the U.S. Constitution. The Democrats, who soft-pedaled the legislation, making no rousing public campaign about the measure before the vote (indeed, scarcely mentioning it at all), once again saw their impotent majority go down to defeat.

The result is a further entrenching of the lawless authoritarian state that has now fully supplanted the remains of the constitutional republic founded in 1787. It’s curious that on the very day the United States Senate was on bended knee once more to the shabby sovereign in the White House, over in the Old Country, where monarchy still reigns (but doesn’t rule), a major political figure delivered a wholesale rejection of the Terror War and its destruction of long-held, hard-won liberties.

Continued…

FAIR USE NOTICE: This blog may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues, etc. This constitutes a ‘fair use’ of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. This material is distributed without profit.