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War and the Police State: Complicity of the American People

by Donna J. Thorne

Global Research, April 21, 2007

"We are apt to shut our eyes against a painful truth…. Is this the part of wise men, engaged in a great and arduous struggle for liberty? Are we disposed to be of the number of those, who having eyes, see not, and having ears, hear not..? For my part, whatever anguish of spirit it might cost, I am willing to know the whole truth; to know.. it — now." Patrick Henry, 1775.

In this era of perpetual warfare, escalating domestic tyranny, government-sanctioned torture, and a Nazi-like pursuit of Middle-East domination, one would expect, at the very least, an audible outcry from the People who proclaim resolute devotion to the ideals of liberty and justice for all. Yet for the most part, Mainstream America continues to assume a posture of apathy, bitterness, or eery silence.

When confronted with hard facts and scientific evidence linking key government officials to the attacks of 9/11, ostensibly intelligent, levelheaded people angrily and defiantly reject said information without a moment's deliberation. Sincerely compassionate and peace-loving individuals support the criminal invasion of Iraq and close their eyes to the U.S. slaughter of 600,000 Iraqi civilians, choosing instead to believe in the myth of American supremacy, at the heart of which lies the notion that foreigners alone are capable of such atrocities.

And now, in the aftermath of 9/11 and the subsequent establishment of Homeland Security, previously rigid supporters of civil rights quietly tolerate the piecemeal deconstruction of the U.S. Constitution under the pretext of protection, and to their own peril, disregard increasingly strident warnings and signs of a growing and imminent police state. Clearly, Mainstream America has surrendered to the subjugation of a power-crazed, despotic administration whose control continues to expand exponentially with each passing rumor of imminent peril .

Why,when confronted with a black-and-white record of autocratic offenses, are so many sensible Americans ignoring and even endorsing the current administration as it openly paves a tyrannical road to hell? Are we so deluded by rhetoric and weapons-grade propaganda, that we are no longer able to distinguish truth from fiction, thereby allowing, if not abetting our own enslavement ?

Inarguably, a collective set of circumstances exist to explain the acquiescence of the American People. What follows is the first in a series of explorations by which this writer will attempt to identify possible core factors contributing to the scourge of apathy in American society today. Fear, the Nemesis of Rationality

One cannot analyze the dynamics of a post 9/11 society without examining one of its principal characteristics: fear, anxiety, dread, apprehension… in a word, Terror. To those who benefit from its proliferation, fear is a currency, a commodity, and a powerful marketing tool. If one is aware of the devices by which leaders have garnered power and support for any given war or agenda historically, one can easily discern the same machinations at work today. A key ingredient to any successful war rally or acquisition of power is the exploitation of fear through the manipulation of perception.

On September 11, 2001, corporate media and the government elite launched an aggressive political and media campaign upon and against the American people. With Madison-Avenue expertise, purveyors of fear heightened our perception of imminent threat by inundating the airwaves with continual, repetitive, easily-learned sound-bytes, words brimming with emotionally-charged meaning, "…Bin Laden, Taliban, Axis of Evil, Saddam Hussein, Terror-Threat, Terrorist…" with just enough intensity to successfully persuade the American people to procure security at any cost.

Comprehensive and firmly-entrenched fear is the means by which the current administration manages to sell the "War of Terror" and, allowed to flourish, has solidified mechanized cooperation from the masses as our leaders appeal to the most basic of all human needs-- security. The groundwork has been laid. Today, newly identified "threats" are announced with almost predictable regularity. Now firmly embedded in the collective unconscious of America, fear is employed to rationalize unprecedented dictatorial powers in the White House, to justify the erosion of privacy and the stripping of human rights once sacredly guarded by the Constitution. Yet, what should one expect from an administration whose platform is built upon a substratum of fear, except for fear itself?

Fear attempts to silence dissenters. As the Truth Movement gains momentum and amasses credibility, the fear profiteers have begun heralding yet another "threat" to National Security - inquiring minds. This is both good news and bad news. We are no longer ignorable. Fearing exposure, the Czars of Propaganda know that "Truthers" must be branded and discredited if government corruption and corporate fraud is to flourish unabated. This said, prepare for an intensified Smear-and-Fear Campaign. Any group or individual who vocally questions the official story of 9/11 or who exercises the right to demand Government accountability will be labeled "Anti-American and Anti-Patriotic".

A well-documented strategy of propagandists throughout modern history, dissolving credibility through character assassination is a calculated tactic utilized to persuade the uninformed public to turn a deaf ear, to, in effect, remain uninformed. It remains to be seen if this line of attack will succeed, and success is dependent upon each individual proponent of freedom. As with the human longing for security, the natural desire for affiliation and acceptance works in favor of the war-mongering, power-hungry elite, for they know only the bravest of the brave will dare risk ostracism for a noble cause.

Fear begets fear and dulls rationality. Under fear's influence, the autonomic nervous system shifts into fight-or-flight mode. Perhaps this either-or response clarifies the bipartisanship of laboring freedom fighters and the willingly deceived. The former empower themselves with knowledge. The latter, so fearful of annihilating reassuring illusions, continue to defend the crimes of their pseudo-conservative leaders, and in so doing, stave off the anxieties which would surely accompany enlightenment. So desperate to believe in an imaginary benevolent Big Brother, We the People unknowingly and sometimes willingly turn a deaf ear to the truth, choosing instead to believe a lie. We lull ourselves into complacency or forced submission. We allow fear to breed a culture of silent ignorance and unthinking loyalty by which dictatorial regimes are allowed to flourish.

We would do well to remember, a fear-struck population is easily led. Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. To become a Member of Global Research The CRG grants permission to cross-post original Global Research articles on community internet sites as long as the text & title are not modified. The source and the author's copyright must be displayed. For publication of Global Research articles in print or other forms including commercial internet sites, contact: crgeditor@yahoo.com

www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.

For media inquiries: crgeditor@yahoo.com © Copyright Donna J. Thorne, GlobalResearch.ca, 2007

The high office of the President has been used to foment a plot to destroy the Americans freedom


Document 31 of 39........

"The high office of the President has been used to foment a plot to destroy the Americans freedom and before I leave office I must inform the Citizen of his plight." -PRESIDENT JOHN F. KENNEDY (10 days before he was murdered)

On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business. The Christian Common Law Institute has exhaustively researched this matter through the Federal Register and Library of Congress and can now safely conclude that this Executive Order has never been repealed, amended, or superceded by any subsequent Executive Order. In simple terms, it is still valid.

When President John Fitzgerald Kennedy - the author of Profiles in Courage -signed this Order, it returned to the federal government, specifically the Treasury Department, the Constitutional power to create and issue currency -money - without going through the privately owned Federal Reserve Bank.

President Kennedy's Executive Order 11110 gave the Treasury Department the explicit authority: "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury."

This means that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation based on the silver bullion physically held there. As a result, more than $4 billion in United States Notes were brought into circulation in $2 and $5 denominations. $10 and $20 United States Notes were never circulated but were being printed by the Treasury Department when Kennedy was assassinated. It appears obvious that President Kennedy knew the Federal Reserve Notes being used as the purported legal currency were contrary to the Constitution of the United States of America. "United States Notes" were issued as an interest-free and debt-free currency backed by silver reserves in the U.S. Treasury.

A "Federal Reserve Note" issued from the private central bank of the United States (the Federal Reserve Bank a/k/a Federal Reserve System), is compared with a "United States Note" from the U.S. Treasury issued by President Kennedy's Executive Order. They almost look alike, except one says "Federal Reserve Note" on the top while the other says "United States Note". Also, the Federal Reserve Note has a green seal and serial number while the United States Note has a red seal and serial number.

President Kennedy was assassinated on November 22, 1963 and the United States Notes he had issued were immediately taken out of circulation. Federal Reserve Notes continued to serve as the legal currency of the nation. According to the United States Secret Service, 99% of all U.S. paper "currency" circulating in 1999 are Federal Reserve Notes.

Kennedy knew that if the silver-backed United States Notes were widely circulated, they would have eliminated the demand for Federal Reserve Notes. This is a very simple matter of economics. The USN was backed by silver and the FRN was not backed by anything of intrinsic value.

Executive Order 11110 should have prevented the national debt from reaching its current level (virtually all of the nearly $9 trillion in federal debt has been created since 1963) if LBJ or any subsequent President were to enforce it. It would have almost immediately given the U.S. Government the ability to repay its debt without going to the private Federal Reserve Banks and being charged interest to create new "money". Executive Order 11110 gave the U.S.A. the ability to, once again, create its own money backed by silver and real value worth something.

Again, just five months after Kennedy was assassinated, no more of the Series 1958 "Silver Certificates" were issued either, and they were subsequently removed from circulation.

Perhaps the assassination of JFK was a warning to all future presidents not to interfere with the private Federal Reserve's control over the creation of money. It seems very apparent that President Kennedy challenged the "powers that exist behind U.S. and world finance". With true patriotic courage, JFK boldly faced the two most successful vehicles that have ever been used to drive up debt: 1) war (Vietnam); and, 2) the creation of money by a privately owned central bank. His efforts to have all U.S. troops out of Vietnam by 1965 combined with Executive Order 11110 would have destroyed the profits and control of the private Federal Reserve Bank.

Executive Order 11110

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Putin: Russia will react to missile plan

Published: April 27, 2007 at 4:58 PM The Washington Times


Putin: Russia will react to missile plan Published: April 27, 2007 at 4:58 PM MOSCOW, April 27 (UPI) -- President Vladimir Putin said Friday Russia will ensure its own security if the United States proceeds with plans for a missile system in Europe. "There will be no hysteria in Russia over any deployments," Putin said, "but we will take appropriate measures." The United States has proposed installing defensive missile systems in the Czech Republic and Poland to defend against possible attack from Iran and North Korea, both of which have been perfecting their nuclear capabilities.

"There are no such missiles or systems (possessed by Iran or North Korea) and they will not appear any time soon," he said. Putin's comments echoed those of Gen. Yury Baluyevsky, the chief of the Russian General Staff, who recently offered the United States a terse warning. "If we see that these installations pose a threat to Russia's national security, they will be targeted by our forces," Baluyevsky said earlier this week. "What measures we are going to use -- strategic, nuclear or other -- is a technical issue."

Afghanistan and Iraq: it’s the same war

by David Orchard and Michael Mandel

Global Research, April 27, 2007

Afghanistan and Iraq: it’s the same war

Four years ago the U.S. and Britain unleashed war on Iraq, a nearly defenseless Third World country barely half the size of Saskatchewan.

For twelve years prior to the invasion and occupation Iraq had endured almost weekly U.S. and British bombing raids and the toughest sanctions in history, the “primary victims” of which, according to the UN Secretary General, were “women and children, the poor and the infirm.” According to UNICEF, half a million children died from sanctions related starvation and disease.

Then, in March 2003, the U.S. and Britain — possessors of more weapons of mass destruction than the rest of the world combined — attacked Iraq on a host of fraudulent pretexts, with cruise missiles, napalm, white phosphorous, cluster and bunker buster bombs and depleted uranium (DU) munitions.

The British Medical Journal The Lancet published a study last year estimating Iraqi war deaths since 2003 at 655,000, a mind-boggling figure dismissed all-too readily by the British and American governments despite widespread scientific approval for its methodology (including the British government’s own chief scientific adviser).

On April 11, 2007, the Red Cross issued a report entitled “Civilians without Protection: the ever-worsening humanitarian crisis in Iraq.” Citing “immense suffering,” it calls “urgently” for “ respect for international humanitarian law.” Andrew White, Anglican Vicar of Baghdad added, “What we see on our television screens does not demonstrate even one per cent of the reality of the atrocity of Iraq…”

The UN estimates two million Iraqis have been “internally displaced,” while another two million have fled — largely to neighbouring Syria and Jordan, overwhelming local infrastructure.

An attack such as that on Iraq, neither in self-defence nor authorized by the United Nations Security Council is, in the words of the Nuremberg Tribunal that condemned the Nazis, “the supreme international crime.” According to the Tribunal’s chief prosecutor, US Supreme Court Justice Robert Jackson, such a war is simply mass murder.

Most Canadians are proud that Canada refused to invade Iraq. But when it comes to Afghanistan, we hear the same jingoistic bluster we heard about Iraq four years ago. As if Iraq and Afghanistan were two separate wars, and Afghanistan is the good war, the legal and just war.

In reality, Iraq and Afghanistan are the same war. That’s how the Bush administration has seen Afghanistan from the start; not as a defensive response to 9/11, but the opening for regime change in Iraq (as documented in Richard A. Clarke’s Against all Enemies).That’s why the Security Council resolutions of September 2001 never mention Afghanistan, much less authorize an attack on it. That’s why the attack on Afghanistan was also a supreme international crime, which killed at least 20,000 innocent civilians in its first six months. The Bush administration used 9/11 as a pretext to launch an open-ended so-called “War on Terror” — in reality a war of terror because it kills hundreds of times more civilians than the other terrorists do.

That the Karzai regime was subsequently set up under UN auspices doesn’t absolve the participants in America’s war, and that includes Canada. Nor should the fact that Canada now operates under the UN authorized International Security Assistance Force (ISAF) mislead anyone. From the start, ISAF put itself at the service of the American operation, declaring “the United States Central Command will have authority over the International Security Assistance Force” (UNSC Document S/2001/1217). When NATO took charge of ISAF that didn’t change anything. NATO forces are always ultimately under US command. The “Supreme Commander” is always an American general, who answers to the American president, not the Afghan one.

Canadian troops in Afghanistan not only take orders from the Americans, they help free up more American forces to continue their bloody occupation of Iraq. When the U.S. devastated Vietnam, Laos and Cambodia (1961-1975), leaving behind six million dead or maimed, Canada refused to participate. But today Canada has become part of a U.S. war being waged not only in Iraq and Afghanistan, but also in a network of disclosed and undisclosed centres of physical and mental torture, like Guantanamo Bay in — let’s not forget — illegally occupied Cuban territory. And what we know about what the U.S. government calls terrorism is that it is largely a response to foreign occupation, and what we know about American occupation is that it is a way the rich world forces the rest to surrender their resources.

General Rick Hillier bragged that Canada was going to root out the “scumbags” in Afghanistan. He didn’t mention that the Soviets, using over 600,000 troops and billions in aid over ten years, were unable to control Afghanistan. Britain, at the height of its imperial power, tried twice and failed. Now, Canada is helping another fading empire attempt to impose its will on Afghanistan.

Canadians have traditionally been able to hold their heads high when they travel the world. We did not achieve that reputation by waging war against the world’s poor; in large part we achieved it by refusing to do so. Canada must — immediately, and at the minimum — open its doors to Iraqis and Afghanis attempting to flee the horror being inflicted on their homelands. We must stop pretending that we’re not implicated in their suffering under the bombs, death squads and torture. This means refusing to lend our name, our strength and the blood of our youth in this war without end against the Third World.

Michael Mandel is an author and Professor of International Law at York University’s Osgoode Hall Law School in Toronto. He can be reached at tel 416-736-5039, MMandel@osgoode.yorku.ca . David Orchard is an author and Borden, SK farmer who ran twice for the leadership of the Progressive Conservative party. He can be reached at tel 306-652-7095, davidorchard@sasktel.net.

-------------------------------------------------------------------------------- Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization.

To become a Member of Global Research The CRG grants permission to cross-post original Global Research articles on community internet sites as long as the text & title are not modified. The source and the author's copyright must be displayed. For publication of Global Research articles in print or other forms including commercial internet sites, contact: crgeditor@yahoo.com www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.

For media inquiries: crgeditor@yahoo.com © Copyright David Orchard, GlobalResearch.ca, 2007

Euro hits all-time high against dollar



FRANKFURT, Germany - The euro climbed to an all-time high against the dollar Friday as weak U.S. growth figures reinforced fears of a widening economic disparity between Europe and the United States.

The surge will not be kind to Americans visiting Europe this summer, who will pay more for hotel rooms in Rome, entrance fees at the Louvre and chocolates in Belgium. The euro hit $1.3682, shooting past its previous high of $1.3667 from December 2004, after the U.S. Commerce Department reported that economic growth slowed to a 1.3 percent annual rate in the first quarter, its weakest performance in four years.

The 13-nation currency then settled back to $1.3643 in late New York trading, still up from its $1.3601 level from late Thursday. "After some mixed figures ... the euro has broken through its previous all-time," noted James Hughes, a market analyst at CMC Markets in London, adding that they saw some buy orders as high as $1.3681.

The euro also hit a record against the Japanese yen after inflation data from Germany, coupled with improved business and consumer sentiment, pushed it to 162.91 yen, up from the previous high of 162.53 yen on Thursday.

A higher euro makes goods from the euro-zone more expensive for customers abroad, or cuts into manufacturers' profits if they try to keep the U.S. dollar price of products constant.

Along with the rise in the British pound, which broke through $2 earlier this month for the first time in nearly 15 years, the stronger euro makes visits to much of Europe more expensive for travelers from elsewhere and makes shopping trips to the U.S. more appealing to Europeans.

Philadelphia physicians Ritu Pierce, 31, and Donna Roy, 36, had to make adjustments during their trip to Rome. "It's definitely different from the past, when you could travel around Europe, especially in countries like Greece, with a small amount of money," said Pierce. "We don't want to shorten our stay, so we are finding low-profile hostels to sleep and grocery stores to get pizza or wine for cheap," Roy said. "Thank God, Rome has a lot of free beauties to offer, like monuments and beautiful piazzas. You don't need money to enjoy that."

Karen Sebastian, an American high school teacher visiting the Brandenburg Gate in Berlin with a group of high school students from Brattleboro, Vermont, was startled by the dollar's slide.

"I am glad that I changed all my money before I came. It was a great shock when I saw what the exchange rate was," Sebastian said. On Friday, the British pound dipped back below the $2 mark, trading at $1.9970, though still up from $1.9910 late Thursday. The dollar barely rose against the yen, edging up to 119.65 yen from 119.63 yen in New York.

In other trading, the dollar bought 1.2068 Swiss francs, slipping from 1.2079 late Thursday, and 1.1156 Canadian dollars, down from 1.1205. The euro had been tantalizing close to a new high for nearly two weeks, climbing to $1.3664 on Wednesday. But expectations for poor U.S. economic results had traders certain that Friday would be the decisive point.

The reading of U.S. gross domestic product, considered the best barometer of the country's economic fitness, was the weakest since a 1.2 percent pace registered in the opening quarter of 2003. It underscored just how much momentum the U.S. economy has been losing as it copes with the strain of the troubled housing market.

The dollar's woes aren't confined to Europe: It is at a 17-year low against the Australian dollar, hovering near 26-year lows against the British pound and at an all-time low against the Chinese yuan.

How did that come to pass? A combination of factors, said Howard Archer, chief U.K. economist of Global Insight in London. "The U.S. dollar has been pressurized significantly by softer U.S. growth, concerns over the housing market, and the increased possibility that the Fed will cut interest rates later this year," he said.

If the Fed starts cutting interest rates from the current level of 5.25 percent while other regions are still raising theirs, capital movement into the U.S. could suffer, Archer said.

"This is potentially worrying for the dollar," he said. The euro rose from a low of 82 U.S. cents in October 2000 to the previous high of $1.3667 on concerns over the enormous U.S. trade and budget deficits. But a string of rate increases by the Federal Reserve had helped cushion the decline of the dollar. Higher interest rates, used to combat inflation, can bolster a currency by making certain types of investments more attractive.

Of late, the Fed has left rates unchanged even as the European Central Bank has steadily increased the cost of borrowing. The euro began its recent run against the dollar on April 12, after the European Central Bank held its benchmark rate steady at 3.75 percent but set the scene for a raise to 4 percent in June.

An increase would be aimed at countering threats of inflation in the euro zone, a bloc of 317 million people that accounts for more than 15 percent of the world's GDP. How high could the euro climb against the dollar? Not very far, most analysts said, noting that a major increase could lead the ECB to stop raising rates or even start cutting them.

Commerzbank economist Michael Schubert said the euro is likely to rise in the coming weeks "owing largely to speculation" but will likely retreat to $1.30 by end of 2008.

___ Associated Press Writers Joelle Caimi in Rome and Jackie Farwell in New York contributed to this report.

U.S. shunned nearly $1 billion in foreign aid for Katrina

Russia Herald

Sunday 29th April, 2007

The United States rejected international offers of aid in the wake of Hurricane Katrina, failing to collect support to the value of more than $800 million.

The Washington Post, in a front page article Sunday, says in the days following the calamity the U.S. government was turning down many allies' offers of manpower, supplies and expertise worth untold millions of dollars. Eventually the United States also would fail to collect most of the unprecedented outpouring of international cash assistance for Katrina's victims.

Allies offered $854 million in cash and in oil that was to be sold for cash. But only $40 million has been used so far for disaster victims or reconstruction, according to U.S. officials and contractors, the Post article said. Most of the aid went uncollected, including $400 million worth of oil. Some offers were withdrawn or redirected to private groups such as the Red Cross. The rest has been delayed by red tape and bureaucratic limits on how it can be spent.

In addition, valuable supplies and services -- such as cellphone systems, medicine and cruise ships were delayed or declined because the government could not handle them. In some cases, supplies were wasted, The Washington Post reported.

The struggle to apply foreign aid in the aftermath of the hurricane, which has cost U.S. taxpayers more than $125 billion so far, is another reminder of the federal government's difficulty leading the recovery. Reports of government waste and delays or denials of assistance have surfaced repeatedly since hurricanes Katrina and Rita struck in 2005, said the 'Post article.

Administration officials acknowledged in February 2006 that they were ill prepared to coordinate and distribute foreign aid and that only about half the $126 million received had been put to use. Now, 20 months after Katrina, newly released documents and interviews make clear the magnitude of the troubles.

More than 10,000 pages of cables, telegraphs and e-mails from U.S. diplomats around the globe -- released piecemeal since last fall under the Freedom of Information Act -- provide a fuller account of problems that, at times, mystified generous allies and left U.S. representatives at a loss for an explanation. The documents were obtained by Citizens for Responsibility and Ethics in Washington, a public interest group, which provided them to The Washington Post.

In one exchange, State Department officials anguished over whether to tell Italy that its shipments of medicine, gauze and other medical supplies spoiled in the elements for weeks after Katrina's landfall on Aug. 29, 2005, and were destroyed. 'Tell them we blew it,' one disgusted official wrote. But she hedged, 'The flip side is just to dispose of it and not come clean. I could be persuaded.'

In another instance, the Department of Homeland Security accepted an offer from Greece on Sept. 3, 2005, to dispatch two cruise ships that could be used as hotels or hospitals for displaced residents. The deal was rescinded Sept. 15 after it became clear a ship would not arrive before Oct. 10. The U.S. eventually paid $249 million to use Carnival Cruise Lines vessels.

And while television sets worldwide showed images of New Orleans residents begging to be rescued from rooftops as floodwaters rose, U.S. officials turned down countless offers of allied troops and search-and-rescue teams. The most common responses: 'sent letter of thanks' and 'will keep offer on hand,' the new documents show. Overall, the United States declined 54 of 77 recorded aid offers from three of its staunchest allies, Canada, Britain and Israel, according to a 40-page State Department table of the offers that had been received as of January 2006.

'There is a lack of accountability in where the money comes in and where it goes,' said Melanie Sloan, executive director of the public interest group, which called for an investigation into the fate of foreign aid offers. She added, 'It's clear that they're trying to hide their ineptitude, incompetence and malfeasance.'

In a statement to The Washington Post, State Department spokesman Tom Casey said that the U.S. government sincerely appreciated support from around the world and that Katrina had proved to be 'a unique event in many ways.'

'As we continue our planning for the future, we will draw on the lessons learned from this experience to ensure that we make the best use of any possible foreign assistance that might be offered,' Casey said.

Asked about The Washington Post story on ABC's This Week With George Stephanopoulos, Secretary of State Condoleezza Rice said, 'Look, the fact is that we received a lot of very generous offers from people at the time of Katrina. It was a new circumstance. The United States is, frankly, not accustomed to receiving large-scale foreign assistance offers. We did tell people on a number of occasions that it might be useful to have this assistance go to private concerns like, for instance, the Bush-Clinton effort for Katrina. We thought that that and the Red Cross might be the most efficacious way for people to get their aid there.'

'But we used a lot of the aid. Some of it couldn't be used,' she said. 'Some of it was in-kind in ways that the United States could not use it. But a lot of it was used and a lot of it is still being used to help the victims.'

The Carlyle Group said they see another 12 to 24-months or more of “excess liquidity,

International Forcaster | April 27, 2007

Bob Chapman

Now hear this! What we are about to tell you comes from deep within the bowels of the Illuminati. This information runs parallel with what we have been forecasting in our issues of the IF.

In February, via an internal memo, the Carlyle Group said they see another 12 to 24-months or more of “excess liquidity,” which will drive further profits and growth and that the current liquidity environment cannot go on forever; and, that the longer it lasts the more money our investors will make; but also that the longer it lasts, the worse it will be when it ends”

In the missive it was stated that Carlyle’s fabulous profits were not solely a function of their investment genius, but have resulted in large part from a great market and the availability of enormous amounts of cheap debt. In fact, there has been and is so much liquidity in the world financial system that lenders, even their own lenders, are making very risky credit decisions. This sea of money and credit has allowed deals to be done that could never have been done otherwise.

They do not expect the Fed to reduce interest rates anytime soon.

What could bring this global liquidity to an end? Just that business would diminish their borrowing or could it be higher interest rates? Could it be a terrorist attack; $100 per barrel oil; trade protectionism; the absorption of excess skilled labor into the global economy; the US elections; Russian energy policies; a multi-billion dollar bankruptcy; a tightening by the Bank of Japan or the Fed; an end to the yen carry trade as a result; or perhaps the collapse of several hedge funds or a derivative collapse? All are possible and at least one is probable.

The strategy should be to take lower risk deals and earn lower returns rather than higher risk deals at only small incrementally higher returns. We should redouble our focus on deals with downside protection, asset coverage, multiple and early exit paths, strategic partners, debt pay down, government protection, consumer needs, controllable capital expenditures, defensible market positions, etc.

Carlyle is being careful because they know what is coming, just as we have been telling you here in the IF. Carlyle is the insider. What we have been busy doing for years is figuring out what these elitists will do before they do it.

This is exactly what we have been forecasting. If we and Carlyle are correct, we can expect more than ample liquidity until February of 2009. During the year to 1-1/2 years that follow liquidity will decline and inflation will diminish. After three months of declining liquidity or declining use of liquidity we will know it is time to sell all assets except gold bullion coins, quality gold shares and for those of you who have to have some liquidity, Swiss francs.

Now that foreclosures are going wild lots of crooks are defrauding homeowners. Here are some tips. Don’t pay upfront fees to any person or organization promising help. Don’t sign anything without have an independent lawyer review it. Seek out accredited financial counselors, using lists such as those kept by the Department of Housing and Urban Development. Wild rescue offers that are too good to be true are just a scam.

This week the Supreme Court stepped into the subprime lending crisis with a potentially far-reaching ruling that limits the power of individual states to regulate mortgage lending. The elitists have to control everything in our lives.

The Supreme Court is allowing banks to offer new terms on mortgages in violation of the law.

This will have a big impact on the ability of states to act independently on predatory lending and throws the spotlight on federal authorities.

The Consumer federation of America said, “This is really disappointing news, it could work to the detriment of consumers.”

Applications for mortgages fell for the 5th straight week as ARMs fell to 18.1% of applications, the lowest since 7/03. A year ago they accounted for 30%. Refis were 2.5% lower wow, but they were up 10% yoy. Refi apps fell 0.3% and accounted for 44% of applications. The volume of loan applications to buy a home fell 4.2%, but purchase loans were down 3% yoy. US home sales are off 5.5% yoy. The average 30-year fixed rate mortgage rose from 6.16% to 6.22%, the highest in nine weeks. The 15’s rose 1 bps to 5.92% and the one-year ARMs rose 1 bps to 5.89%.

US foreclosure filings rose 47% in March yoy. That was 149,000 as California’s filings rose 31,434. Nevada and Colorado had the largest percentage gains. Those making late payments are at a four-year high and the failure of 55 subprime mortgage companies has tightened the supply of money for lending. Nevada’s foreclosures were triple yoy. That is one foreclosure for every 183 households, which is four times the national average. Colorado’s rate was one for every 292. Nationally it was one of every 775. California had 6 of the 10 metropolitan areas with the highest foreclosure rates, Stockton being the highest. The others were Vallejo-Fairfield, Modesto, Sacramento, Riverside-San Bernardino and Bakersfield. Greeley, Colorado and Detroit and Denver were also up near the top.

Capitalism Endgame


"The American lifestyle is non-negotiable" Pres. Bush I & II

Are the power elite 'conspiring' to promote their good fortune at the expense of the working class? At first glimpse that statement appears fraught with 'wild eyed conspiracy theory'. There would be many who would say that it would involve too many people and thus highly unlikely. But how many people would have to know? What if those in power benefited from the policies and laws made to favor them, but were not aware that there was a very specific conspiracy to achieve total economic pre-eminence of the governing elite. It would be difficult to prove the existence of such a cabal, they would cover their tracks. They would practice to deceive, prevaricate, bully, lie and use the 'system' to protect and preserve their 'rights.' They would hope to co-opt the middle class by trying to convince them it is in their best interest as well. The evidence would be 'erased', made to disappear and it would indeed be difficult to find any hard proof. But there is a legal precedence in such cases when hard evidence is lacking and that is a preponderance of evidence. When one sees example after example of how the game has been rigged to benefit the few at the expense of the many one must wonder. This edifice that provides and protects the elite certainly did not arise overnight. It has incrementally been built up over the years. Like the formation of a pearl it has slowly been added to and like that pearl it is now ripe to be harvested and worn proudly and legitimately by the best and the brightest.

One layer of this anti-working class edifice is what is called universal default. It allows credit card companies to raise your interest rate if you pay some other loan late. Of course you should be punished if you are late with a payment, but what does being late with a car payment have to do with your credit card? Without ever missing a payment or going over your limit on your credit card your interest rate can be increased to the limit. Clearly you have proved to be a greater risk that expected. You are a scofflaw and should be penalized or so someone thinks. It's not really logic. Logic would dictate that you may have mistakenly missed a payment deadline or perhaps you did not have enough money to pay all your bills that were due. You did, however, pay your credit card bill and yet your rate is going up. This policy targets the blue collar workers and benefits the financial institutions. It defies logic but perhaps there is an underlying coherence. It redistributes money up from those who can least afford it to those who least need it.

Next we have the newly renovated bankruptcy laws. They have been revised to make sure that those with rather serious money problems are not let off the hook. The new bankruptcy laws have been designed to make it more difficult for the consumer to get a so called 'fresh' start. In short filing a Chapter 7 bankruptcy allows many people to pay off a portion of their debt and cancel the rest. There are strict rules that apply regarding assets that qualify for liquidation, but the filer normally is not allowed to keep much beyond necessities. It has now been made much more difficult and expensive to declare bankruptcy. Lawyers are being held to a higher standard as well, thus there is less gray area involved in the proceedings. Bottom line is it is more difficult for the little guy to get out from under their debt. It is still relatively easy for Corporations to go bankrupt and eliminate their debt, however. Although there appears to be a pattern here it could still be just a coincidence.

Next let's look at tax cuts. As reported in the New York Times the wealthy benefited most from the Bush administration tax cuts. The average tax reduction for a mid range income, $56,200 was $1,180. This is nothing to scoff at but it is very misleading. Those families with incomes in the $1.25 million range received tax cuts of $58,000. In effect the tax cut was regressive those at the middle received a smaller percentage tax break. As stated in the article, "tax cuts reduced rates for people at every level; they offered the biggest benefits by far to people at the top." There seems to be mounting evidence that there is some collusion or conspiracy to enrich the wealthy at the expense of the struggling middle, but clearly more evidence would be needed to prove the case.

There has been much said about the widening gap between the wealthiest Americans and their poorer counterparts. Not too long ago the United States replaced France as the industrial country with the widest income gap and recently that gap has continued to grow. As Janine Jackson says in her article Good News! The Rich Get Richer "Wages and income for average workers, adjusted for inflation, are down in recent years, -- The Poverty rate is rising, as is the number of people in debt." That this is taking place at the same time that a seeming upsurge in the economy is, is rather vexing. Perhaps the 'trickle down' effect has just not had time to run its course.

A 2005 article by Abid Aslam gives information about the widening compensation gap between the highest paid CEO's and the average worker. It points out that not only do the best paid employees get paid significantly more but, the percent of their raises is higher as well, thus constantly increasing the pay differential. In fact, the rich do continue to get richer and the middle and poor keep falling farther behind.

"An analysis of securities filings showed that CEO salaries rose 12 percent in 2004 compared with average raises of 3.6 percent for rank-and-file workers, further widening the world's largest gaps between executive and labor pay."

Surely if this is not by design it would be rectified, but it has not been and the CEO's have circled the wagons to protect their right to exorbitant wages.

Another thread to this web of complicity is war, war in general and The War on Terror specifically. War calls on the middle and lower classes to make the biggest sacrifices. The corporate leaders and politicians plan and execute wars and benefit greatly from the sale of war goods and owning stock in those corporations, but the middle and lower classes are called on to make the supreme sacrifice in the name of patriotism. While paying lip service to the soldiers in the field and decorating the 'heroes' who protect the motherland with the other hand they are busy trying to reduce medical benefits, save money on armor plating and failing to maintain hospitals in good condition. The actions of our politicians speak volumes. Be good patriots and don't ask questions. Contracting for armor plating is a prime example. A pentagon report said that as much as 80% of the fatalities to our troops could have been avoided with adequate body armor. Are they thinning the herd? With the high birth rates of minorities and the poor it would indeed take a long war to effectively offset those statistics.

President Bush Owes Troops an Apology

Last summer the government allowed United Airlines to drop their pension plan. This is a benefit derived from collective bargaining and would certainly seem to have the force of law, but the US government allowed United to drop the pension plan. They were let of the hook, would the government be as understanding if it were you or I who had defaulted on a contractual agreement?

The pension was taken over by the Pension Benefit Guaranty Corporation. There are some important considerations when the PBGC takes over a corporation's pension plan. They do not cover health benefits, lump-sum death benefits, or disability benefits claimed after the PBGC takeover. Those are some major concerns and would especially burden those who didn't have the savings or resources to pay for those necessities. It appears that those provisions would place an inordinate burden on the middle class or poorer workers. Is there a well established bias favoring the wealthier over the less well off?

This is by no means a comprehensive list of the numerous authorized slights to the middle/working class. Can this 'agenda' be passed off as a mere coincidence? If a class is systematically favored or legally diminished as the case with the middle and lower classes have been can it just be happenstance? How this has come to be accepted is quite a different topic and not the point of this discourse but it again brings up the systematic use of the legal system. One part of that edifice is deregulation of the media that has significantly narrowed the scope of opinions expressed in the mainstream media. Has the majority been lulled into a false sense of security? Have we gradually been desensitized to the removal of our former rights? Have we somehow accepted the fact that the wealthy should rule and that depending on their benevolence is the proper order? Ladies and gentlemen of the jury is this 'system' that has built up over the years just a random collection of laws, regulations, and customs that just happen to favor the wealthiest at the expense of the rest. Could it just have happened coincidentally over the years? I would submit not. There is a plan. There is a preponderance of evidence that supports the existence of such a plan. There is puppet master(s) and because the wealthy and powerful benefit they are willing to go along with the dismantling of our democratic system without a conscious understanding of who the 'wizard' behind the curtain is or of his (their) ultimate goal. It is not a coincidence!

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