DHS whistleblower ‘almost loses child’ for probing immigration & corruption
RT | June 12, 2015
After voicing concerns about an obscure US immigration program for foreign investors, a Department of Homeland Security agent says she was barred from owning a personal firearm and almost lost custody of her one-year-old adopted daughter.
Taylor Johnson, a senior special agent with a division of the Immigration and Customs Enforcement (ICE), testified before the Senate Committee on Homeland Security and Governmental Affairs on Thursday. She was at a hearing alongside several other whistleblowers who claim that they have also faced harassment for speaking out against their agencies wrongdoings.
Johnson told the committee her problems started after investigating the so-called EB-5 program, which offers visas to foreign investors. When she questioned whether visas were being approved with enough scrutiny, her managers began to receive complaints about her queries. She was removed from the investigation and the case was closed.
“Some of the violations investigated surrounding the project included bank and wire fraud, and I discovered ties to organized crime and high-ranking politicians and they received promotions that appeared to facilitate the program,” Johnson testified.
The whistleblower discovered that “EB-5 applicants from China, Russia, Pakistan, Malaysia had been approved in as little as 16 days” and that case files didn’t have “the basic and necessary law enforcement queries.”
Johnson told the committee her gun was confiscated. She mentioned her access to her workplace and government databases were revoked and the government vehicle she used was also taken away. “I was told I couldn’t even carry or own a personal weapon, which is a constitutional rights violation,” she added.
“When an adoption social worker tried to contact and verify employment, she was told that I had been terminated for a criminal offense,” Johnson said, choking up. “I almost lost my one-year-old-child.”
Johnson’s testimony comes as the EB-5 program is already under intense criticism due to a report released in March by the DHS’ inspector general John Roth. Roth’s report concluded that Homeland Security deputy secretary Alejandro Mayorkas violated ethics rules by intervening as the head of USCIS on several occasions in EB-5 visa cases involving prominent Democrats, such as Senator Harry Reid and Governor Terry McAuliffe.
Mayorkas has since said, “I regret the perception my own involvement created.” It is unclear however if Johnson’s investigation concerned Mayorkas or any of his associates.
Read more:
TSA whistleblower says agency operates on culture of ‘fear and distrust’ & lax security
German political prisoner Horst Mahler’s latest book slated for ‘harmful media’ list
By ADELHEID RITTER | Non-Aligned Media | June 11, 2015
Today, Thursday, June 11, 2015, at 11.30 AM, the council of the Federal Department for Media Harmful for Young Persons in Germany will be deciding whether Horst Mahler’s book Das Ende der Wanderschaft – Gedanken über Gilad Atzmon und die Judenheit (2013) (The End of the Wanderings – Reflections on Gilad Atzmon and Jewry) will be put on the harmful media index. Mahler wrote his book in his prison cell after reading Gilad Atzmon’s book The Wandering Who?A Study of Jewish Identity Politics (2011), sent to him by a friend.
Friedrich Bode, a retired Protestant minister and founding member of the Green Party, as well as Gerard Menuhin, son of the world famous violinist Yehudi Menuhin, will be there to defend the book.
Horst Mahler is Germany’s number one political prisoner. As a professional lawyer he encountered revisionist material when he was asked to defend a client over charges of “Holocaust Denial”. Although previously Mahler had identified himself on the radical left and had been a founding member of the Red Army Faction (RAF), he was shocked by the treatment of revisionist research in German courts with regard to Holocaust laws. Having been indoctrinated with guilt over the Holocaust, he found it deeply liberating to discover that Jews had been expelled from countries all over the world throughout the centuries, and that the expulsion of Jews from Germany was by no means a singular event.
Mahler maintains that Germany today is in effect a nation that is ruled by a foreign will. That foreign will is the will of the Jewish people, which manifests itself in Germany’s Holocaust laws and the numerous Holocaust memorials which literally pave the country. These, he believes, serve to reinforce German guilt. In Mahler’s analysis, such elements, along with the “re-education” programme implemented by the Allies (mainly through the mass media, educational institutions, politicians willing to execute this foreign will, and Jewish institutions), prevent the healthy self-expression of the German people. Such mechanisms need to be understood as part of a strategy of psychological warfare with the goal of effecting the “soul murder” of the German people. A people without a soul cannot survive physically. According to Mahler, this is a genocidal project that has its basis in the Jewish understanding of the German people as part of the nation of Amalek, the Biblical arch enemy whose “seed” must be destroyed.
Mahler frequently quotes Jewish philosopher and Rabbi Martin Buber to prove that the annihilation impulse exists in the Jewish people not only against the German people but also against every other nation, since Judaism embodies a stark “No to the lives of the peoples” (“ein Nein zum Leben der Völker” – meaning “no to the traditional ways of non-Jewish peoples”). According to Mahler, the German spirit and the Jewish spirit are antagonistic to each other, which is the root of the conflict. Whilst German philosophy is a deeply organic way of thinking that seeks to maintain sanctimonious harmony with nature, Jewish thinking and behaviour is the polar opposite, aiming at the destruction of naturally grown structures.
Mahler was sentenced to 12 years in prison for “incitement to the detriment of the Jews” and “Holocaust denial” in 2009. In his open letter to the Central Committee of Jews in Germany and the Jewish organisation “Sons of the Covenant” (B’nai B’rith), dated on August 2009, Mahler declares himself a personal prisoner of organised World Jewry (All-Juda).
Regarding incitement, it must be noted that Mahler nowhere calls for hostility against Jews, and explicitly says that hatred and physical harm against Jews must be prevented under any circumstances. His analysis of the current state of affairs is based on Hegelian philosophy, readings of Christian and Jewish Scripture, and a thorough understanding of the legal situation of present day Germany.
He has now served five years of his twelve-year term. At 79 years of age, German law should now permit him to leave prison early. However, authorities do not seem to be willing to act in accordance with the law in this case, and have asked Mahler to withdraw his proposal.
This is a very rough summary of Mahler’s positions. When writing in German, Mahler articulates his views in a well-informed, sophisticated and precise language.
Please feel free to send him an uplifting note:
Horst Mahler
JVA Brandenburg a.d. Havel
Anton-Saefkow Allee 22
14772 Brandenburg a. d. Havel
Egyptian journalists protest against arrests, for better labor laws
By Mostafa Mohie | Mada Masr | June 11, 2015
More than 200 members of the press gathered at the Journalists Syndicate in downtown Cairo on Wednesday, chanting for the “32 detained journalists and hundreds dismissed from their job” as they commemorated Egyptian Journalist Day.
The syndicate’s freedoms committee had sent a general invitation to protest on June 10 to denounce the recent wave of arrests, arbitrary dismissals and low wages faced by local journalists. Several websites for both privately and state-owned newspapers, including Ahram Gate, Bedaya, Al-Mal and Al-Fagr, published statements supporting the demonstration.
Leading up to the protest, the syndicate also filed 13 complaints with the prosecutor general demanding the immediate release of all journalists currently detained pending investigations, and detailing alleged acts of torture inflicted upon those journalists while in custody.
Among the protesters was Ibrahim Aref, editor-in-chief of the privately owned Al-Bayan newspaper. Aref and a colleague were recently prosecuted on charges of publishing false information regarding the assassination of six prosecutors, news which the newspaper had subsequently amended and apologized for.
Recounting his arrest to Mada Masr, Aref says that police personnel broke into his office and took him to the prosecutor’s headquarters in the Fifth Settlement district of New Cairo. He claims the building was under construction at the time and had no running water. The next day, he was taken to the High Court, where he was left in a defendant’s dock for nine hours without food or water before being released later that night on bail, he says.
“According to the law, everything that happened was illegal,” Aref argues. “Journalists cannot be detained for cases related to publishing. I went through the experience and got out of prison, but other colleagues are still detained, and their children are cheering with us today.”
Aya Allam, wife of detained journalist Hassan al-Qabanni, was also at Wednesday’s protest.
She spoke to Mada of her husband’s arrest, saying, “On January 22, police broke into my home and arrested my husband. He disappeared for three days, and we filed a report with the general prosecutor about the incident. It turned out he was being kept at the National Security headquarters in Sheikh Zayed.”
When Qabbani was finally called before the prosecutor, he bore injuries that suggested he was beaten, electrocuted and tortured, Allam says.
She claims that her husband never faced specific charges. Instead, during interrogations he was asked about his opinion of the January 25, 2011 revolution, the events of June 30, 2013, the Muslim Brotherhood and the Armed Forces. Later, his family learned that he was accused of spying for the Norwegian government, in the same case as Muslim Brotherhood leader Mohamed Ali Bishr, according to Allam.
Qabbani is currently being detained in dire conditions at the Aqrab prison, Allam alleges. She adds that he is restricted to his cell, isn’t allowed access to newspapers or books and only receives one meal per day.
Furthermore, his wife claims that though the prison management has been issuing visiting permits to the families of the detainees at the prison, when they arrive, they are not permitted to enter. Qabbani hasn’t received visitors since February, Allam says, accusing prison staff of tampering with the visitor records.
Reda Gamal’s husband, journalist Reda al-Darawy, has been detained for close to two years, she says.
“After July 3 [2013] and the ousting of the Muslim Brotherhood, my husband travelled to Amman to work at Yarmouk satellite channel, then to Lebanon to work at Al-Quds Channel. He came back on August 6 and was a guest speaker on Tamer Amin’s show. On his way out of Media Production City, he was arrested.”
Darawy has been accused of spying for Hamas and belonging to a banned group — the Muslim Brotherhood was declared an illegal organization at the end of 2013. He was later added as a defendant in the espionage case alongside former President Mohamed Morsi and other Brotherhood leaders, Gamal says.
Gamal adds that her husband was accused of illegally entering the Gaza Strip through the tunnels from Sinai, but refutes those charges.
“My husband visited the Strip twice for work, and the stamps on his passport prove it,” she argues.
His first visit was in July 2011, she says, when he conducted interviews with leaders of various political factions in Palestine for a piece that was published in the state-owned Akhbar al-Youm newspaper. Then under the Morsi administration, Darawy visited Gaza again to cover the truce agreement between Hamas and Israel, Gamal says.
Darawy has now been in custody for 22 months. A verdict is anticipated in his case on June 16.
Darawy’s case bears some similarities with that of journalist Mahmoud Abou Zeid, known as Shawkan, who is also currently in detention pending investigations. His brother, Mohamed Abou Zeid, says that Shawkan was covering the Rabea al-Adaweya sit-in after Morsi’s ouster in 2013, and had obtained permission to shoot photographs there from security forces in the area.
However, Shawkan was then arrested alongside a number of foreign journalists by men dressed in civilian clothing, Abou Zeid says. The foreign photojournalist were released, but Shawkan has remained in detention ever since.
Photographer Ahmed Gamal Zeyada, who was recently acquitted in a case related to violence at Al-Azhar University, says that his arrest was similar to Shawkan’s. Zeyada says he hadn’t met Shawkan prior to his arrest, but began exchanging letters with him following a march that was organized to draw attention to both of their arrests by their fellow photojournalists.
“After a while we became close friends, though we never met,” says Zeyada.
The arbitrary firing of journalists was also a core issue discussed by the protesters. Sahar Abdel Ghani, a journalist at the privately owned newspaper Al-Alam Al-Youm, says that she and 30 of her colleagues were fired due to budget cuts.
“We have been working for the newspaper for 13 years, and have put up with all the financial challenges throughout,” she says.
But despite the fact that she was fired under the pretext of budgetary constraints, Abdel Ghani claims that “the newspaper recently launched a new website and hired new reporters,” suggesting that the business wasn’t in such dire straits after all. She says she and her colleagues filed a wrongful termination complaint with the labor bureau, but nothing happened.
The Journalists Syndicate is currently in negotiations with the newspaper to either rehire the fired journalists or compensate them, she adds.
At the protest, around 150 journalists — most of them working for newspapers affiliated with political parties that have recently been shut down — declared they would go on strike.
Iman Ouf, a journalist for the privately owned Al-Mal newspaper and a member of the syndicate’s freedom committee that organized the demonstration, felt that Wednesday’s protest represented a good step toward solving the problem of journalists working in Egypt today.
“The number of participants wasn’t big, but it is a good start. Today is better than how things were before,” Ouf says.
Next, the syndicate plans to launch a campaign for a fair labor law, a unified contract for all journalists and an industry-wide a minimum wage, in addition to providing compensation for the families of the detained journalists, she continues.
The journalist adds that the regional and international support for the protest was a good indicator that journalists are capable of defending themselves. The protest received letters of support from the Arab Journalists Union and the International Union for Journalists, Ouf says, in addition to journalists syndicates in Jordan, Morocco, Tunisia, the European Union and the United States, and finally, from local political parties.
The Ideological Perils of Bernie Sanders
Hope and Change 2.0
By EOIN HIGGINS | CounterPunch | June 12, 2015
A Bernie Sanders run at the Democratic nomination has garnered a lot of interest from the liberal wing of the Democratic Party. Members of the anyone-but-Hillary caucus (who readily admit they will vote for her anyway come the general election) are desperately seeking an alternative. Just as in 2008, a challenger has come from her putative left. Then it was the Junior Senator from Illinois, Barack Obama. This time, it is the Independent Senator from Vermont, Bernie Sanders.
Although it is difficult to remember now that we are seven years into the neoliberal and neocon Obama administration, in the primary battle between Clinton and Obama there seemed to be an actual difference between the two candidates. Where Clinton was a relic of the past, Obama was the future. Where Clinton’s record in the Senate tied her irrevocably to the wars and policies of the Bush administration, Obama’s scant record and impassioned though empty speeches on the campaign trail promised a new way forward. Hope. Change.
It hardly bears explaining what a sham the Obama campaign of 2008 was. Wether bailing out the banks to warrantless domestic surveillance, or continuing the wars in Afghanistan and Iraq and extra-judicial assassinations, a plurality of the most noxious Bush policies were continued and in many cases expanded under Obama. The writing was on the wall in the first week, of course, when Obama immediately broke his pledge to close Guantanamo.
Yet after seven long years of their increasingly acrobatic Obama apologia and the slow, slow realization that they were duped into supporting a president well to the right of sainted slime Ronald Reagan, the liberal wing of the Democratic Party is willing and ready once again to throw its support behind an inevitable disappointment.
It’s not that Bernie Sanders is as right wing as Barack Obama on domestic issues. Sanders has identified as a democratic socialist for most of his political career and his rhetoric on domestic economic policy is remarkably consistent. He isn’t radical, or at least he wouldn’t be in a sane society. Sanders embodies and exemplifies the traditional urge of the Democrats to be slightly more accommodating to the interests of the working class under capitalism, while still maintaining the basic economic status quo.
For an illustrative example of Sanders’ lack of radical politics, take his social media post of a few weeks ago which was spent lauding Facebook for paying its employees a baseline salary of 15 dollars an hour. Now while it is certainly better for the company to pay its workers 15 dollars an hour than, say, 10 dollars an hour, it’s not as if Facebook is the kind of company any self-respecting member of the left wing of American politics should be heaping praise upon. After all, this is a company that a few years ago was shamed into backing away from assuming control over the life rights to the image identity of newborns.
“Fine,” you say, “I can see that Bernie may have had to adopt some of his rhetoric and policies to the realities of American capitalism. But he’s still in favor of the working class! Haven’t you heard his speeches? This won’t be like Obama, I swear it! He’ll be different!”
Sorry to burst your bubble, but Bernie Sanders is no friend of the working class, in America or the world. It’s fundamentally impossible to be such if you support the Washington war machine and the system of Western imperialism. And Bernie Sanders has proven, over and over again, that he is the friend of those who dominate, not the domineered, and the friend of those who kill, not their victims.
Bernie has been a vocal supporter of American military adventurism for the length of his Congressional career. Whenever there are wars to be fought, Bernie comes out in favor of them eventually and helps to facilitate their fighting. Maybe he sees it as an American Jobs Program to send the country’s disadvantaged youth halfway across the world to kill similarly disadvantaged people who had the misfortune to be born in the wrong country. Maybe he just doesn’t care about the poor in other countries. Who knows. What’s for sure, though, is that the Independent Senator from Vermont, Bernie Sanders, likes war just as much as his Democratic and Republican counterparts.
When the reality of Sanders’ milquetoast left wingery and neocon foreign policy finally sink in for the American liberal, the refrain will include such hits as:
“Well, it’s him or Hillary”
“What alternative would you choose?”
“It’s hard to be ideologically pure and politically successful”
These are all meaningless arguments. In fact, they’re the antithesis to the arguments being used by Sanders’ allies to support his bid for the Democratic nomination. Almost every week, another thinkpiece or article is released wagging the metaphorical finger at Sanders naysayers for denying the possibility of a Bernie Democratic nomination. “If you work at it and go out and vote,” they say, “then Bernie will beat Hillary and get the nomination!”
Here’s a real alternative: find a candidate who actually represents the left and go out and vote for him or her in the general election. Supporting Bernie Sanders will only lead to more disappointment, no matter what happens in the primary fight and general election.
Don’t say I didn’t warn you.
Turkish intelligence agency giving ISIL safe passage into Syria
Press TV – June 12, 2015
Newly-surfaced video footage has corroborated widespread assertions that the Turkish government’s intelligence agency has been ensuring ISIL terrorists safe passage into Syria.
The center-left Turkish daily, Cumhuriyet, integrated the videos in a Thursday report implicating the National Intelligence Organization (MİT) in assisting the notorious Takfiri group.
The footage shows drivers admitting that they are “doing their duty to the state” by helping the militants bypass the territory near the heavily-defended Syrian city of Kobani.
One driver explains how vehicles would be accompanied by MİT agents during the trip, which would start from the Atme camp in Syria and end at the border town of Akçakale in Şanlıurfa Province, where the militants and cargo would reenter Syria.
One driver is seen saying, “They didn’t allow us to leave the vehicle [once we had arrived at Akçakale]. One of them [militants] was waiting by our side. Another vehicle came and parked behind my coach and they started moving the cargo from my vehicle [into the other one]. There were 46 [militants] in my coach, and I learned later on that there were 27 in the other bus. They were bearded men, scruffy looking.”
On June 5, the opposition daily had likewise accused Turkish authorities and intelligence agency of helping smuggle ISIL and other Takfiri terrorists into Syria from Turkey.
Cumhuriyet had also posted a video on its website on May 29, purportedly showing trucks belonging to Turkey’s intelligence agency carrying weapons to the Takfiri terror groups operating in Syria.
Syria has been struggling with an implacable militancy since March 2011. The US and its regional allies – especially Qatar, Saudi Arabia, and Turkey – are supporting the militants operating inside Syria.
The international community has long been critical of Turkey over its provision of assistance to Takfiri terrorists waging war in Syria.
The Turkish opposition group, the People’s Democratic Party (HDP), has called for an immediate end to Ankara’s support for terrorists in Syria.
Selahattin Demirtas, HDP’s co-leader, has noted that the move would be key to restoring the foreign relations of the new Turkish government to a normal state.
Pillage and Class Polarization: The Rise of “Criminal Capitalism”
By James Petras :: 06.11.2015
About 75% of US employees work 40 hours or longer, the second longest among all OECD countries, exceeded only by Poland and tied with South Korea. In contrast, only 10% of Danish workers, 15% of Norwegian, 30% of French, 43% of UK and 50% of German workers work 40 or more hours.
With the longest work day, US workers score lower on the ‘living well’ scale than most western European workers. Moreover, despite those long workdays US employees receive the shortest paid holidays or vacation time (one to two weeks compared to the average of five weeks in Western Europe). US employees pay for the costliest health plans and their children face the highest university fees among the 34 countries in the Organization for Economic Cooperation and Development (OECD).
In class terms, US employees face the greatest jump in income inequalities over the past decade, the longest period of wage and salary decline or stagnation (1970 to 2014) and the greatest collapse of private sector union membership, from 30% in 1950 down to 8% in 2014.
On the other hand, profits, as a percentage of national income, have increased significantly. The share of income and profits going to the financial sector, especially the banks and investment houses, has increased at a faster rate than any other sector of the US economy.
There are two polar opposite trends: Employees working longer hours, with costlier services and declining living standards while finance capitalists enjoy rapidly rising profits and incomes.
Paradoxically, these trends are not directly based on greater ‘workplace exploitation’ in the US.
The historic employee-finance capitalist polarization is the direct result of the grand success of the trillion dollar financial swindles, the tax payer-funded trillion dollar Federal bailouts of the crooked bankers, and the illegal bank manipulation of interest rates. These uncorrected and unpunished crimes have driven up the costs of living and producing for employees and their employers.
Financial ‘rents’ (the bankers and brokers are ‘rentiers’ in this economy) drive up the costs of production for non-financial capital (manufacturing). Non-financial capitalists resort to reducing wages, cutting benefits and extending working hours for their employees, in order to maintain their own profits.
In other words, pervasive, enduring and systematic large-scale financial criminality is a major reason why US employees are working longer and receiving less– the ‘trickle down’ effect of mega-swindles committed by finance capital.
Mega-Swindles, Leading Banks and Complicit State Regulators
Mega-swindles, involving trillions of dollars, are routine practices involving the top fifty banks, trading houses, currency speculators, management fund firms and foreign exchange traders.
These ‘white collar’ crimes have hurt hundreds of millions of investors and credit-card holders, millions of mortgage debtors, thousands of pension funds and most industrial and service firms that depend on bank credit to meet payrolls, to finance capital expansion and technological upgrades and raw materials.
Big banks, which have been ‘convicted and fined’ for mega-swindles, include Citi Bank, Bank of America, HSBC, UBS, JP Morgan, Barclay, Goldman Sachs, Royal Bank of Scotland, Deutsch Bank and forty other ‘leading’ financial institutions.
The mega-swindlers have repeatedly engaged in a great variety of misdeeds, including accounting fraud, insider trading, fraudulent issue of mortgage based securities and the laundering of hundreds of billions of illegal dollars for Colombian, Mexican, African and Asian drug and human traffickers.
They have rigged the London Interbank Official Rate (LIBOR), which serves as the global interest benchmark to which hundreds of trillions of dollars of financial contracts are tied. By raising LIBOR, the financial swindlers have defrauded hundreds of millions of mortgage and credit-card holders, student loan recipients and pensions.
Bloomberg News (5/20/2015) reported on an ongoing swindle involving the manipulation of the multi-trillion-dollar International Swaps and Derivatives Association (ISDA) fix, a global interest rate benchmark used by banks, corporate treasurers and money managers to determine borrowing costs and to value much of the $381 trillion of outstanding interest rate swaps.
The Financial Times (5/23/15, p. 10) reported how the top seven banks engaged in manipulating fraudulent information to their clients, practiced illegal insider trading to profit in the foreign exchange market (forex), whose daily average turnover volume for 2013 exceeded $5 trillion dollars.
These seven convicted banks ended up paying less than $10 billion in fines, which is less than 0.05% of their daily turnover. No banker or high executive ever went to jail, despite undermining the security of millions of retail investors, pensioners and thousands of companies.
The Direct Impact of Financial Swindles on Declining Living Standards
Each and every major financial swindle has had a perverse ripple effect throughout the entire economy. This is especially the case where the negative consequences have spread downward through local banks, local manufacturing and service industries to employees, students and the self-employed.
The most obvious example of the downward ripple effect was the so-called ‘sub-prime mortgage’ swindle. Big banks deliberately sold worthless, fraudulent mortgage-backed securities (MBS) and collateralized debt obligation (CDO) to smaller banks, pension funds and local investors, which eventually foreclosed on overpriced houses causing low income mortgage holders to lose their down payments (amounting to most of their savings).
While the effects of the swindle spread outward and downward, the US Treasury propped up the mega-swindlers with a trillion-dollar bailout in working people’s tax money. They anointed their mega-give-away as the bail out for ‘banks that are just too big to fail”! They transferred funds from the public treasury for social services to the swindlers.
In effect, the banks profited from their widely exposed crimes while US employees lost their jobs, homes, savings and social services. As the US Treasury pumped trillions of dollars into the coffers of the criminal banks (especially on Wall Street), the builders, major construction companies and manufacturers faced an unprecedented credit squeeze and laid off millions of workers, and reduced wages and increased the hours of un-paid work.
Service employees in consumer industries were hit hard as wages and salaries declined or remained frozen. The costs of the FOREX, LIBOR and ISDA fix swindles’ fell heavily on big business, which passed the pain onto labor: cutting pension and health coverage, hiring millions of ‘contingent or temp’ workers at minimum wages with no benefits.
The bank bailouts forced the Treasury to shift funds from ‘job-creating’ social programs and national infrastructure investment to the FIRE (finance, insurance and real estate) sector with its highly concentrated income structure.
As a result of the increasing concentration of wealth among the financial swindlers, inequalities in income grew; wages and salaries were frozen or reduced and manufacturers outsourced production, resulting in declines in production.
Employees, suffering from the loss of income brought on by the mega-swindles, found that they were working longer hours for less pay and fewer benefits. Productivity suffered. With the total breakdown of the ‘capitalist rules of the game’, investors lost confidence and trust in the system. Mega-swindles eroded ‘confidence’ between investors and traders, and made a mockery of any link between performance at work and rewards. This severed the nexus between highly motivated workers, engaged in ‘hard work, long hours’ and rising living standards, and between investment and productivity.
As a result, profits in the finance sector grew while the domestic economy floundered and living standards stagnated.
Financial Impunity: Regulatees Controlling the Regulators
Despite the proliferation of mega-swindles and their pervasive ripple effects throughout the economy and society, none of the dozens of federal or state regulatory agencies intervened to stop the swindle before it undermined the domestic economy. No CEO or banker was ever arrested for their part in the swindle of trillions. The regulators only reacted after trillions had ‘disappeared’ and swindles were ‘a done deal’. The impunity of the swindlers in planning and executing the pillage of hundreds of millions of employees, taxpayers and mortgage holders was because the federal and state regulatory agencies are populated by ‘regulatory administrators’ who came from or aspired to join the financial sector they were tasked with ‘regulating’.
Most of the high officials appointed to lead the regulatory agencies had been selected by the ‘Lords of Wall Street, Frankfurt, the City of London or Zurich.’ Appointees are chosen on the basis of their willingness to enable financial swindles. It therefore came as no surprise on May 28 2015 when US President Obama approved the appointment of Andrew Donahue, Managing Director and Associate General Council for the repeatedly felonious, mega-swindling banking house of Goldman Sachs to be the ‘Chief of Staff’ of the Security and Exchange Commission. His career has been typical of the Washington-Wall Street ‘Revolving Door’.
Only after fraud and swindles evoked the nationwide public fury of mortgage holders, investors and finance companies did the regulators ‘investigate’ the crimes and even then not a single major banker was jailed, not a single major bank was closed down.
There were a few low-level bond traders and bank employees who were fired or jailed as scapegoats. The banks paid puny (for them) fines, which they passed on to their customers. Despite pledges to ‘mend their ways’ the bankers concocted new schemes with their windfalls of billions of Federal ‘bailout’ money while the regulators looked on or polished their CV’s for the next pass through the ‘revolving door’.
Every top official in Treasury, Commerce and Trade, and every regulator in the Security Exchange Commission (SEC) who ‘retired to the private sector’ has ended up working for the same mega-criminal banks and finance houses they had investigated, regulated and ‘slapped on the wrist’.
As one banker, who insists on anonymity, told me: ‘The most successful swindlers are those who investigated financial transgressions’.
Conclusion
Mega-swindles define the nature of contemporary capitalism. The profits and power of financial capital is not the outcome of ‘market forces’. They are the result of a system of criminal behavior that pillages the Treasury, exploits the producers and consumers, evicts homeowners and robs taxpayers.
The mega swindlers represent much less than 1% of the class structure. Yet they hold over 40% of personal wealth in this country and control over 80% of capital liquidity.
They grow inexorably rich and richer, even as the rest of the economy wallows in crisis and stagnation. Their swindles send powerful ripples across the national economy, which ultimately freeze or reduce the income of the skilled (middle class) employees and undermine the living conditions for poor working-class whites, and especially under and unemployed Afro-American and Latino-American young workers.
Efforts to ‘moralize’ capital have failed repeatedly since the regulators are controlled by those they claim to ‘regulate’.
The rare arrest and prosecution of any among the current tribe of mega-swindlers would only result in their being replaced by new swindlers. The problem is systemic and requires deep structural changes.
The only answer is to build a political movement independent of the two party system, willing to nationalize the banks and to pass legislation outlawing derivatives, forex trading and other unnatural parasitic speculative activities.
WPost Plays Ukraine’s Lapdog
By Robert Parry | Consortium News | June 11, 2015
There once was a time when the U.S. news media investigated U.S. imperial adventures overseas, such as Washington-sponsored coups. Journalists also asked tough questions to officials implicated in corruption even if those queries were inconvenient to the desired propaganda themes. But those days are long gone, as the Washington Post demonstrated again this week.
On Wednesday, the Post’s editorial board had a chance to press Ukraine’s Prime Minister Arseniy Yatsenyuk about the U.S. government’s role in the Feb. 22, 2014 coup that elevated him to his current post – after he was handpicked by U.S. Assistant Secretary of State for European Affairs Victoria Nuland, who declared “Yats is the guy” in a pre-coup intercepted phone call.
Wouldn’t it have been interesting to ask Yatsenyuk about his pre-coup contacts with Nuland and U.S. Ambassador Geoffrey Pyatt and what their role was in fomenting the “regime change” that ousted elected President Viktor Yanukovych and hurtled Ukraine into a civil war? Sure, Yatsenyuk might have ducked the questions, but isn’t that the role that journalists are supposed to play, at least ask? [See Consortiumnews.com’s “What Neocons Want from Ukraine Crisis.”]
Or why not question Yatsenyuk about the presence of neo-Nazis and other right-wing extremists who spearheaded the violent coup and then were deployed as the shock troops in Ukraine’s “anti-terrorism operation” that has slaughtered thousands of ethnic Russians in eastern Ukraine? Wouldn’t that question have spiced up the interview? [See Consortiumnews.com’s “Wretched US Journalism on Ukraine.”]
And, since Ukraine’s Finance Minister Natalie Jaresko was at the editorial board meeting as well, wouldn’t it have made sense to ask her about the propriety of her enriching herself while managing a $150 million U.S.-taxpayer-financed investment fund for Ukraine over the past decade? What kind of message does her prior work send to the people of Ukraine as they’re asked to tighten their belts even more, with cuts to pensions, reduction of worker protections, and elimination of heating subsidies?
How would Jaresko justify her various schemes to increase her compensation beyond the $150,000 limit set by the U.S. Agency for International Development and her decision to take court action to gag her ex-husband when he tried to blow the whistle on some improprieties? Wouldn’t such an exchange enlighten the Post’s readers about the complexities of the crisis? [See Consortiumnews.com’s “Ukraine Finance Minister’s American ‘Values.’”]
Yet, based on what the Post decided to report to its readers, the editorial board simply performed the stenographic task of taking down whatever Yatsenyuk and Jaresko wanted to say. There was no indication of any probing question or even the slightest skepticism toward their assertions.
On Thursday, the Post combined a news article on the visit with an editorial that repeated pretty much as flat fact what Yatsenyuk and Jaresko had said. So, after Yatsenyuk alleged that Russia had 10,000 troops on the ground inside Ukraine, the Post’s editorial writers simply asserted the same number as a fact in its lead editorial, which stated: “Russia … has deployed an estimated 10,000 troops to eastern Ukraine and, with its local proxies, attacks Ukrainian forces on a near-daily basis.”
Though both assertions are in dispute – with many of the cease-fire violations resulting from Ukrainian government assaults around the rebel-controlled Donetsk Airport – the Post had no interest in showing any skepticism, arguably one of the consequences from the failure to impose any accountability for the Post’s similarly biased writing prior to the Iraq War.
In 2002-03, editorial-page editor Fred Hiatt repeatedly declared as flat fact that Saddam Hussein possessed stockpiles of WMDs, thus supposedly justifying the U.S.-led invasion. After the invasion failed to locate these WMD stockpiles, Hiatt was asked about his editorials and responded:
“If you look at the editorials we write running up [to the war], we state as flat fact that he [Saddam Hussein] has weapons of mass destruction,” Hiatt said. “If that’s not true, it would have been better not to say it.” [CJR, March/April 2004]
Yes, journalists generally aren’t supposed to say something is a fact when it isn’t – and when a news executive oversees such a catastrophic error, which contributed to the deaths of nearly 4,500 U.S. soldiers and hundreds of thousands of Iraqis, you might expect him to be fired.
Yet, Hiatt remains the Post’s editorial-page editor today, continuing to push neoconservative propaganda themes, now including equally one-sided accounts of dangerous crises in Ukraine, Syria and elsewhere. [See Consortiumnews.com’s “Why WPost’s Hiatt Should Be Fired.”]
On Ukraine – although the risks of neocon “tough-guy-ism” against nuclear-armed Russia could mean extermination of life on the planet – the Post refuses to present any kind of balanced reporting. Nor apparently will the Post even direct newsworthy questions to Ukrainian officials.
~
Investigative reporter Robert Parry broke many of the Iran-Contra stories for The Associated Press and Newsweek in the 1980s. You can buy his latest book, America’s Stolen Narrative, either in print here or as an e-book (from Amazon and barnesandnoble.com).
Reviving the Cold War
By JACK BALKWILL | CounterPunch | June 11, 2015
The National Security State is risking our lives in an attempt to promote a new arms race and revive the old Cold War.
At the center of this they are pushing an ABM system initially labeled “Star Wars” by its opponents, since having been known by a great many euphemisms since, starting with “The Strategic Defense Initiative,” and lately “missile defense.”
The ABM program will not die, for once “defense” contractors develop a new profit source, it dispenses cash forever in the best government money can buy.
Strategic weapons experts say if the Russians built such an ABM system on our borders we would attack it and blow it up, because it would interfere with our nuclear deterrent. In other words, it would be feared as a component of a first-strike nuclear attack.
But that doesn’t stop the USA from building one on Russia’s borders and supplementing it with ship-borne components in the seas around Russia, even knowing the Russians and Chinese have declared they will manufacture more nuclear weapons in response. This throws arms control out the window, exactly as planned by the “Nuclear Mafia,” a term coined by former Commander in Chief of Pacific Forces, Admiral Noel Gaylor, to describe defense contractors.
THE NEW COLD WAR
Our National Security State is pushing for a new arms race which could result in global investors and global corporations bringing in as much as trillions of dollars over time. Astronomer and anti-nuclear activist Carl Sagan (and friend, I edited some of his anti-nuke work) once estimated that the old Cold War cost over $10 trillion, enough money, at the time, to buy everything in the USA except for the land.
The Nuclear Mafia see the current “War on Terror” as extensively manpower-based, and the cost of maintaining a large troop force is competing with their funding for strategic weapons systems. They don’t want expensive-to-maintain troops, they want strategic submarines, manned bombers and ICBMs that provide stunning profit.
So the National Security State folks in the Executive Branch and Congress, on behalf of their Nuclear Mafia sponsors, are worrying the Russians by enlisting former Warsaw Pact nations and former Soviet Republics into NATO, right on their borders. At the end of the old Cold War, Secretary of State James Baker promised the Russians we wouldn’t do this.
This week, in Pravda, Vyacheslav Tetekin, who sits on the Russian Duma Committee on Defense, said “Our own sworn friends have been moving their red lines closer and closer to Moscow. They may eventually say that Russia can not have its troops stationed somewhere near Moscow, as it would threaten Europe’s security.”
He continued, “In a nutshell, they have been progressively moving towards Russia’s borders. At first, they made Eastern European countries NATO members. Afterwards, they moved into the territory of the former Soviet Union and approached key industrial and military centers. They are unacceptably close – I am talking about the Baltic region. Today, they say that any response from the Russian side would be considered as Russia’s aggression against the West.”
Coupled with this NATO encroachment, the USA is initiating the new Star Wars system on Russia’s borders, an obvious attempt to trigger a new arms race, since there is no practical reason for doing this. One feeble excuse given was that the ABM system is to defend against Iranian missiles, but Iran has no ICBM nor nuclear warhead, so this was just propaganda with which to fool the American public.
These belligerent acts have caused the Russians to begin building weapons systems with which to defend themselves, exactly as planned. The Nuclear Mafia are using this as an excuse to build weapons systems in further response, even though we could stop it all by agreeing not to build any of this, because the Russians had largely disarmed after the end of the Cold War, and really don’t want to spend money on another ridiculous arms race. Our government is selling us out, and endangering people everywhere by this corrupt act.
And the corruption is as deep as it goes. Our tax dollars are going toward TV commercials for the defense contractors, and commercials in newspapers and online with no reasonable explanation, since there is only one buyer, the US government, already besieged by Nuclear Mafia lobbyists. Our tax dollars are also going for millions of dollars in Nuclear Mafia campaign contributions with which to bribe the Congressional and presidential candidates. The Nuclear Mafia say the money comes from a different pot, which is ridiculous when one looks into what the money buys– public opinion and government leaders to push programs which are not only unnecessary, but dangerous to global security.
Back during the Cold War I interviewed retired Admiral Gene LaRocque, when the USA had 30,000 nuclear warheads, and asked him if we had enough for our defense. He gave me a confused look, replying “How can you defend someone with a nuclear weapon?” These strategic nuclear forces have nothing to do with defense.
The idea that the Russians are a threat to global peace is itself ridiculous coming from a nation with 800 overseas military bases. Russia has one, in Tartus, Syria.
“Russia is not building up its offensive military capabilities overseas and is only responding to security threats caused by US and NATO military expansion on its borders, “President Vladimir Putin told Italian outlet Il Corriere della Sera this week. Putin added, “I think that only an insane person and only in a dream can one imagine that Russia would suddenly attack NATO.“
The reason for the ongoing belligerence against Russia and China is to trigger a new cold war with a lucrative arms race, like the fifty-year cold war that brought in billions in profit for the Nuclear Mafia who all but run the country today and are willing to risk global, thermonuclear war for the profits that a new arms race would bring them.
US encircling Russia with bioweapons labs, covertly spreads them – Russian FM
RT | June 11, 2015
The US is obstructing international efforts to eradicate biological weapons, seeking to involve other nations covertly in research on weaponized diseases, Moscow charged. America’s record of handling bioweapons is poor.
The accusations of mishandling biological weapons voiced by the Russian Foreign Ministry refer to a recent report that the US military shipped live anthrax by mistake. Last week, the Pentagon admitted sending samples of the highly dangerous disease to at least 51 labs in 17 US states and three foreign countries.
The delivery “posed a high risk of outbreak that threatened not only the US population, but also other countries, including Canada and Australia. Of great concern is the shipment of bacteria to a US military facility in a third country, the Osan Air Base in South Korea,” the Russian ministry said in a statement.
It added that an anthrax outbreak incident occurred in 2001, which also involved a US military lab.
For Russia such incidents are of particular concern, because one of its neighbors, Georgia, hosts a research facility for high-level biohazard agents. The Richard G. Lugar Center for Public and Animal Health Research near Tbilisi is an undercover American bioweapons lab, a branch of the Walter Reed Army Institute of Research, Russia believes.
“American and Georgian authorities are trying to cover up the real nature of this US military unit, which studies highly dangerous infectious diseases. The Pentagon is trying to establish similar covert medico-biological facilities in other countries [in Russia’s neighborhood],” the Russian ministry said.
Moscow says the US is de facto derailing international efforts under the Biological and Toxin Weapons Convention (BTWC), a 1972 international treaty aimed at eradicating bioweapons worldwide.
“The US administration is obviously not interested in strengthening this convention. It’s known that in 2001 the US unilaterally torpedoed multilateral talks in Geneva to work on a verification mechanism for the BWTC and have since obstructed their restart. Decades of international effort to strengthen the convention were derailed,” the statement said.
The Russian Foreign Ministry’s indictment comes amid a wider list of accusations against the US over what Moscow sees as American violations of various international agreements dealing with weapons control, non-proliferation and disarmament.
The statement came in response to a US annual report on the issue, which accused Russia of various wrongdoings. Moscow considers such reports “megaphone diplomacy.” Such tactics aren’t aimed at resolving any differences, but instead support America’s pretense to be the ultimate judge of other nation’s behavior, the ministry said.
Americans support military force against Russia if necessary: Poll
Press TV – June 11, 2015
A majority of people in the United States are supporting a military strike against Russia in response to an attack by Moscow on a NATO country, according to a new survey.
The poll conducted by the Pew Research Center showed Wednesday that 56 percent of Americans back a military response.
The result is in sharp contrast with the European countries as people in Germany, Italy and France do not support war on Russia.
In Germany, 58 percent of the respondents said they are against the use of military force. People in France and Italy oppose the idea 53 and 51 percent respectively.
After the US, 53 percent of the public in Canada are in favor of a military response.
“Many allied countries are reluctant to uphold Article 5 of the North Atlantic Treaty, which requires NATO members to defend an ally with armed force if necessary,” the survey said.
The survey also indicated that people in NATO countries view Russia as the culprit in the deadly Ukraine conflict.
The US accuses Russia of destabilizing Ukraine by supporting pro-Russian forces in the eastern regions. The Kremlin, however, denies the allegations.
Last week, Russian President Vladimir Putin said that the Ukraine crisis was deliberately manufactured by “unprofessional actions” of the West.
“I believe that this crisis was created deliberately and it is the result of our partner’s unprofessional actions,” Putin said.
“I would like to emphasize once more: this was not our choice, we did not seek it, we are simply forced to respond to what is happening,” he added.
Egypt’s Sisi cancels South Africa visit amid calls for his arrest
MEMO | June 11, 2015
Egyptian President Abdel Fattah Al-Sisi on Thursday cancelled a trip to South Africa to attend the African Union Summit after a group of lawyers filed an official legal request for his arrest.
The Egyptian president was supposed to arrive Friday in Johannesburg to lead his country’s delegation in the African summit titled “Enabling African Women,” which will take place on June 14 and 15.
“We believe Al-Sisi committed war crimes and crimes against humanity for the horrendous killings that resulted from the (2013) coup in Egypt,” attorney Yousha Tayoub, a member of the South African Muslim Lawyers Association, told Anadolu Agency on Wednesday.
A well-informed African diplomatic source told Anadolu Agency that Al-Sisi would not participate. The source, who spoke on condition of anonymity, added that Egypt had officially informed the host country that Al-Sisi would not participate in the summit, and that PM Ibrahim Mehleb will lead the Egyptian delegation instead.
A former military commander, Al-Sisi is widely seen as the architect of the 2013 coup against President Mohamed Morsi, Egypt’s first freely elected president and a Muslim Brotherhood leader.
At the time, the South African government had vocally criticized Morsi’s ouster and the subsequent crackdown on political dissent waged by Egypt’s army-backed government.
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By Thomas S. Harrington | CounterPunch | August 19, 2016
… What will almost never be talked about are the many very good reasons a person from the vast region stretching from Morrocco in the west, to Pakistan in the east, have to be very angry at, and to feel highly vengeful toward, the US, its strategic puppeteer Israel, and their slavishly loyal European compadres like France, Germany and Great Britain. … Read full article
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