Health Insurance is Not Healthcare
By JP Sottile | January 18, 2013
Insurance companies make a simple wager with you each time you sign a policy. They are betting that, over the life of the policy, they will pay out less to you and your beneficiaries than you will pay them.
Insurance companies of all kinds make tidy profits on this simple wager. If they don’t, sometimes the government will bail them out.
Either way, insurance is still just a bet. And in America, we do not have a healthcare system. We have a health insurance industry.
That industry has been one of the most profitable sectors of the economy for well over a decade. But costs skyrocketed and care suffered. We heard horror stories about rationed care, denied procedures and corporate bureaucracies run amok. Ironically, these were the horror stories we were supposed to hear if the government took the reigns of the “best healthcare system in the world.”
So, instead of a single-payer healthcare system, we got The Affordable Care Act—aka Obamacare. Instead of retiring the health insurance industry and its actuarial tables and profit margins and wagers, Obama “saved” the health insurance industry and enshrined it in perpetuity as the “Health Insurance-Industrial Complex.”
As the Affordable Care Act’s provisions begin to take effect, the folks in the Complex are wasting no time doing what they can to keep their profits tidy. Leading insurers in California are seeking increases in premiums ranging from 20% to 26%. Regulators in Florida and Ohio have already approved increasing premiums as much as 20%, and, since the ACA doesn’t set federal standards, insurance companies are moving in a number of states to force these spikes in premiums.
Remember, if you can “afford” health insurance, you have to buy it. If you refuse, you’ll pay a penalty to the government at tax time. Some are exempt from this mandate. But, in effect, the ACA has guaranteed the health insurance industry a captive market.
Meanwhile, they continue to change the terms of all those bets they’ve placed against millions of Americans and the cost of the “best healthcare in the world” continues to rise. When compared to other nations with some form of single-payer system, the difference is so stark that it’s almost obscene. It’s not just the $800 difference between an MRI in France versus the U.S., it’s almost every part of a system that has at its heart the relentless desire to turn a profit.
Even worse, a much-ballyhooed part of the promised “21st Century transformation” into greater “affordability” has turned out be little more than a profiteering scheme.
Remember the “streamlining” and “cost savings” guaranteed from the conversion to electronic medical records? Well, it hasn’t quite panned out. In fact, the only real beneficiaries of the conversion are companies like General Electric that sell electronic medical records systems. Not coincidentally, GE and other interested parties funded the key RAND study in 2005 that both predicted $81 billion in savings for America’s health care system and also became the driving rationale for the profitable conversion.
This type of closed system is par for the course in Washington, D.C.
Every door revolves in the nation’s only recession-proof city. Is it any surprise that the woman who wrote the Affordable Care Act is now leaving the White House for a job with health care giant Johnson & Johnson? Liz Fowler worked for Senator Max Baucus (D-MT) during the drafting of the ACA and had the primary responsibility for authoring the legislation. After its passage, she migrated to the White House to help with implementation. Seems reasonable enough. However, it is important to note where she was before joining the staff of Senator Baucus. Yup, you guessed it…she was a bigwig at WellPoint, the nation’s second leading health insurance company with nearly 54 million policyholders.
All of this makes you wonder who knew whom in the breast milk-pump industry, which is seeing a huge spike in its profits thanks to a new coverage requirement written into the ACA.
It may be too early to render judgment on a law that hasn’t yet been fully implemented, but it is not too early to determine that the profit motive might simply be incompatible with the equitable delivery of healthcare. As matter of course, businesses try to lower costs and increase revenue. That may be okay when they sell scissors or candlesticks, but it seems ill-suited to deliver labor-intensive care for those who are most vulnerable.
And as far as the health of the insurance industry, it’s a safe bet that they’ll keep coming out on top as the Affordable Care Act is fully implemented.
JP Sottile is a freelance journalist, published historian, radio co-host and documentary filmmaker (The Warning, 2008). His credits include a stint on the Newshour news desk, C-SPAN, and as newsmagazine producer for ABC affiliate WJLA in Washington. His weekly show, Inside the Headlines w/ The Newsvandal, co-hosted by James Moore, airs every Friday on KRUU-FM in Fairfield, Iowa. He blogs under the pseudonym “the Newsvandal.”
Anti-corruption demonstrations held across Spain
Press TV – January 19, 2013
People in Spain have staged demonstrations in several cities across the country to voice their anger at the corruption in the eurozone member state which is in the grip of a sharp economic downturn, Press TV reports.
On Friday, angry protesters assembled near the headquarters of Prime Minister Mariano Rajoy’s centre-right Popular Party in the capital Madrid, chanting slogans. The building was protected by riot police and metal barriers.
The demonstrations were sparked by a recent report by the centre-right newspaper El Mundo disclosing that senior members of Popular Party collected undeclared salaries, largely from private companies.
The paper added that former Popular Party treasurer Luis Barcenas gave envelopes which contained 5,000-15,000 euros (USD 6,500 -20,000) to party officials in addition to their official salaries during two decades.
The newspaper, however, highlighted that Rajoy did not receive such kind of payments and he ordered Popular Party secretary general Maria Dolores de Cospedal to end the practice in 2009.
“The Popular Party’s accounts are clear, transparent and inspected by the Court of Auditors,” Cospedal said, denying allegations that party members got undisclosed payments under her supervision.
This comes as on January 16, Spanish media reported that Barcenas along with several others held a Swiss bank account with some 22 million euros.
“The thieves… are taking all the money. Undoubtedly who is going to suffer the consequences are the poor people,” a protester told Press TV.
As the fourth largest eurozone economy, Spain must lower its deficit to 4.5 percent in 2013 and 2.8 percent in 2014.
Economists, however, say those targets will be difficult to meet amid poor prospects for the country’s economic recovery.
Battered by the global financial downturn, the Spanish economy collapsed into recession in the second half of 2008, taking with it millions of jobs.
Big Banks Slither out of Mortgage Fraud Review with Minor Costs
BY Noel Brinkerhoff | AllGov | January 11, 2013
After a year and a half of bungled work and plenty of criticism, the Obama administration decided to close down its review of mortgage fraud this week and order banks to pay a sum that consumer advocates say falls short of what’s fair.
The Independent Foreclosure Review was established 18 months ago to vet how banks handled home foreclosures and to compensate Americans for any wrongdoing.
In the end, federal regulators decided on an $8.5 billion settlement that banks must pay. But of this total, only $3.3 billion is actual cash, while another $5.2 billion represents “credits” that financial institutions will receive for avoiding future foreclosure.
The $3.3 billion in funds will be distributed to about 3.8 million borrowers who were eligible to have their foreclosures reviewed. That amounts to approximately $870 per homeowner.
The Office of the Comptroller of the Currency, one of the federal regulators that managed the review and negotiated the new settlement, would not reveal to the media how it decided on the $3.3 billion figure.
As for the review itself, the process was wrought with problems, starting with the fact that banks were allowed to hire “independent” consultants to review mortgage files—consultants who often turned out to have business relationships with the banks they were reviewing, thus creating potential conflicts of interest.
Honduras: Miguel Facusse is Tragically Misunderstood
By Dan Beeton | CEPR | December 21, 2012
The Los Angeles Times’ Tracy Wilkinson conducted a rare interview with Miguel Facussé Barjum, considered by many to be the most powerful man in Honduras, and also believed to be behind the killings of dozens of campesinos in the Aguan Valley, where Facussé has extensive land holdings. He has been the subject of much recent scrutiny, as Wilkinson notes, especially following the assassination of attorney Antonio Trejo Cabrera, who worked on behalf campesino organizations in the Aguan. Wilkinson describes some of the allegations and criticism leveled at Facussé from members of the U.S. Congress and human rights organizations:
In October, shortly before he lost reelection, U.S. Rep. Howard L. Berman (D-Valley Village) took the unusual step of singling out Facusse in a letter to Secretary of State Hillary Rodham Clinton. Berman demanded a major overhaul of U.S. policy toward Honduras, including suspension of aid to human rights abusers. He repeated Trejo’s accusation, calling for an investigation of Facussé.
“It is breathtaking that Facusse has been so untouchable,” said a House of Representatives staffer with knowledge of the issue, who spoke anonymously in keeping with Washington protocol.
The New York-based Center for Constitutional Rights, in filings with the International Criminal Court, alleges that Facusse may have committed “crimes against humanity” in the killings of Trejo and several peasant farmers.
As we have previously noted, Facussé has admitted the killings of some campesinos by his security forces. A 2011 human rights report from the FoodFirst Information and Action Network, the International Federation for Human Rights and other groups details a number of killings, kidnappings, torture, forced evictions, assaults, death threats and other human rights violations that victims, witnesses and others attribute to Facussé’s guards. In May this year, Reporters Without Borders declared Facussé to be a “predator” of press freedom. Facussé’s response has sometimes been to threaten to sue for defamation. As he explains in the LA Times article, “He said he considered suing Berman but was advised by friends that legal action would be a waste of time.”
Perhaps seeing the limits to suing for defamation when the allegations are supported by evidence, Facussé, it appears, wanted to sit down with Wilkinson in order to set the record straight. He explains that, while yes, his airplane was “was used to illegally carry the foreign minister out of the country against her will” during the 2009 coup d’etat; and yes, drug planes have used his property to traffic cocaine; and yes, he normally keeps a pistol on his desk; and yes, he “keeps files of photos of the various Honduran activists who are most vocal against him,” and yes, he was aware of the plans for the 2009 coup in advance – he’s misunderstood. One has to appreciate the tremendous pathos as Facussé laments, “My name is mud all over the world,” he said. “I’m the bad guy in the world.”
And
As for the allegations of involvement in the lawyer’s killing?
“I probably had reasons to kill him,” he said, “but I’m not a killer.”
Zapatista Army of National Liberation Announces Next Steps
Mexico – December 30, 2012
To the People of Mexico:
To the Peoples and Governments of the World:
Brothers and Sisters:
Compañeros and compañeras:
This past December 21, 2012, in the pre-dawn hours, tens of thousands of indigenous Zapatistas mobilized and we took over, peacefully and in silence, 5 municipal seats in the Mexican southeastern state of Chiapas.
San Cristobal, Chiapas. December 21, 2012
In the cities of Palenque, Altamirano, Las Margaritas, Ocosingo, and San Cristobal de las Casas, we watched you and we watched ourselves in silence.
This is not a message of resignation.
It is not one of war, death, or destruction.
Our message is one of struggle and resistance.
After the media-driven coup d’état that exalted a poorly concealed and even more poorly disguised ignorance to the federal executive branch, we made ourselves present so that you would know that if they never left, neither did we.
Six years ago, a segment of the political and intellectual class went out in search of someone to blame for its loss. At that time we were in cities and communities, struggling for justice for an Atenco that was not fashionable at that time.
On that yesterday first they defamed us, and then they wanted to shut us up. Too incapable and dishonest to see that within themselves they had and have the seeds of their own destruction, they tried to make us disappear with lies and complicit silence.
Six years later, two things remain clear:
They don’t need us to fail.
We don’t need them to survive.
We never left, even though media from all over the spectrum have dedicated themselves to making you believe that, and we are reemerging as the indigenous Zapatistas that we are and will be.
In these past years we’ve strengthened ourselves and we have significantly improved our living conditions. Our standard of living is superior to that of the indigenous communities that are linked to the governments in power, that receive charity and squander it all on alcohol and useless things.
Our homes improve without hurting nature by imposing roads upon it that are foreign to it. In our villages, the land that was previously used to fatten estate owners’ cattle is now used to grow the corn, beans, and vegetables that brighten our tables.
Our work has the double satisfaction of providing us with what we need to live honorably and to contribute to the collective growth of our communities.
Our boys and girls go to a school that teaches them their own history, that of their fatherland and of the world, as well as the sciences and techniques they need to grow without no longer being indigenous.
The indigenous Zapatista women are not sold as merchandise. The indigenous PRI members go to our hospitals, clinics, and laboratories because in those provided by the government there are no medicines, nor equipment, nor doctors, nor qualified personnel.
Our culture flourishes not in isolation, but rather enriched by contact with the cultures of other peoples of Mexico and the world.
We govern and we govern ourselves, always seeking agreement before confrontation.
All of this has been achieved not only without the government, the political class, and the media that accompanies them, but also while resisting their attacks of all kinds.
We have demonstrated, yet again, that we are who we are. With our silence, we were present.
Now, with our word we announce that:
First: we reaffirm and consolidate our membership in the National Indigenous Congress [CNI],a space for meeting with the original peoples of our country.
Second: we will resume contact with our compañeros and compañeras who are Adherents to the Sixth declaration of the Lacandon Jungle in Mexico and around the world.
Third: we will try to construct the necessary bridges towards the social movements that have arisen and will arise, not to lead them or take their place, but rather to learn from them, from their history, from their journeys and fates.
For this we have achieved the support of individuals and groups in different parts of the world who comprise the support teams for the EZLN’s Sixth and International commissions, so that they will become communication links between the Zapatista Support Bases and the individuals, groups, and collectives that are Adherents to the Sixth Declaration in Mexico and around the world who still maintain their conviction and dedication to the construction of a leftist non-institutional alternative.
Fourth: our critical distance from the Mexican political class will continue; they have done nothing but prosper at the cost of the necessities and the hopes of humble and simple people.
Fifth: regarding the federal, state, and municipal bad governments–executive, legislative, and judicial–, and the media that accompanies them, we say to them the following:
The bad governments from all over the political spectrum, without exception, have done everything they can to destroy us, buy us, and make us give in. The PRI, PAN, PRD, PVEM, PT, CC, and the future RN party have attacked us militarily, politically, socially, and ideologically.
The corporate media tried to make us disappear, first with servile and opportunistic slander, later with cunning and complicit silence. Those whom they served and whose moneys breastfeed them are no longer around. And those who have taken their place won’t last longer than their predecessors.
As was evident on December 21, 2012, they’ve all failed.
It remains to be seen if the federal, executive, legislative, and judicial government decides to once again resort to the counterinsurgency policy that has only achieved a rickety farse clumsily based on media management, or if it recognizes and fulfills its duty and raises indigenous rights and culture to constitutional ranking as established by the so-called “San Andres Accords,” signed by the federal government in 1996, which was ruled by the same party that now controls the executive branch.
It remains to be seen if the state government will decide if it continues its dishonest and despicable strategy of its predecessor which, in addition to being corrupt and deceitful, used the Chiapan people’s money for his own enrichment and that of his accomplices and set about openly buying voices and pens in the media, while he heaped misery upon the Chiapan people, at the same time that he was using police and paramilitaries to try to stop the organizational advance of the Zapatista villages; or if it will instead, with truth and justice, accept our existence and the idea that a new form of social life is blossoming in Zapatista territory, Chiapas, Mexico. Blossoming that draws the attention of honest people all over the planet.
It remains to be seen if the municipal governments decide to keep swallowing the millstones that the anti-Zapatista or supposedly “Zapatista” organizations use to extort them to attack our communities, or if they instead use that money to improve the living conditions of their constituents.
It remains to be seen if the people of Mexico who organize themselves in electoral struggle and resist decide to continue viewing us as the enemies or rivals upon whom they can unload their frustration about the frauds and attacks that, in the end, all of us suffer, and if in their struggle for power they continue to ally themselves with our persecutors; or if they finally see in us another way of doing politics.
Sixth: in the coming days the EZLN, through its Sixth and International commissions, will announce a series of initiatives of a civil and peaceful nature, to continue walking together with the other original peoples of Mexico and the whole continent, along with those in Mexico and around the whole world who resist and struggle down and to the left.
Brothers and sisters:
Compañeros and compañeras:
Before, we had the good fortune of honest and noble attention from various media outlets. We thanked them for it then. But that was completely erased with their later attitude.
Those who bet that we only existed in the media and that with the siege of lies and silence we would disappear were wrong.
When there weren’t cameras, microphones, pens, ears, and looks, we existed.
When they defamed us, we existed.
When they silenced us, we existed.
And here we are, existing.
Our pace, as has been demonstrated, does not depend upon our impact in the media, but rather upon the world’s and its parts’ understanding, upon the indigenous wisdom that dictates our steps, upon the unflinching courage that comes from below and to the left.
From now on, our word will begin to be selective in its recipient and, with the exception of a few occassions, will only be understood by those who have walked and walk with us without giving in to the media and current trends.
Here, with not a few errors and a lot of difficulties, another way of doing politics is already a reality.
Few, very few, will have the privilege of knowing it and learning from it directly.
Nineteen years ago we surprised them by taking over their cities with fire and blood. Now we’ve done it again, without weapons, without death, without destruction.
That is how we differentiate ourselves from those who, during their administrations, delivered and deliver death to their constituents.
We are the same from 500 years ago, from 44 years ago, from 30 years ago, from 20 years ago, from just a few days ago.
We are the Zapatistas, the smallest, the ones who live, struggle, and die in the last corner of the fatherland, those who don’t give up, those who don’t sell out, those who don’t give in.
Brothers and sisters:
compañeros and compañeras:
We are the Zapatistas, and we send you a hug.
Democracy!
Freedom!
Justice!
From the mountains of the Mexican southeast,
For the Indigenous Revolutionary Clandestine Committee — General Command of the Zapatista Army of National Liberation.
Subcomandante Insurgente Marcos.
Mexico. December 2012-January 2013.
Translation: Kristin Bricker
Ex-Israeli chief rabbi indicted
Press TV – December 25, 2012
Former Israeli chief rabbi has been indicted by the regime’s authorities over charges of fraud and breach of trust, reports say.
Eliahu Bakshi-Doron was indicted on Monday for his role in, what has become known as, the “Rabbis’ File” scandal, which involves the regime’s Chief Rabbinate.
Bakhsi-Doron and other Israeli rabbis face charges of giving false rabbinical ordination certificates to thousands of troopers and police officers so that they could receive pay rises.
The rabbi’s indictment said that hundreds of millions of shekels had been given to the troopers and police officers without any justification.
The scandal came under spotlight in 2002 when irregularity was found in the personal file of a policeman, who had faced disciplinary action for family violence.
The policeman was found receiving an extra bonus for “a rabbinical degree” in addition to his salary.
An investigation was launched into the case, finding that 540 such “rabbis” were serving in the Israel police at the time.
Bakshi-Doron’s attorneys, Yaakov Weinroth and Yaron Kostelitz, slam the indictment, saying the rabbi had been subjected to “a serious injustice.” They also said that 12 years had passed since the offenses took place and five years since the prosecution told the rabbi it was dropping the case.
U.S. Government Redistributes Wealth… to the Rich
By Matt Bewig | AllGov | December 24, 2012
For about thirty years now, the federal government has been implementing policies that take tax dollars from middle class Americans and give them to the rich, supposedly as a way to spur economic growth. Although Americans actually want greater economic equality, the net effect has been to redistribute wealth to the rich and create the most unequal developed society on earth.
According to a series of reports by Reuters, since 1989 inequality has risen all across the U.S. to levels not seen since before the Great Depression:
• Inequality has increased in every state except Mississippi, which is the poorest state in the Union;
• The poverty rate increased in 43 states;
• In 28 states inequality and poverty rose while median income fell;
• In every state, the richest 20% of households far outpaced the income gains of any other quintile;
• Income for the median household fell in 28 states.
Three specific aspects of federal policy—low taxes for the rich, outsourcing government functions to private companies, and the financial clout of Washington lobbyists—have been the major drivers of growing inequality.
Low taxes for the rich
Tax cuts enacted during the administrations of Presidents Ronald Reagan and George W. Bush cut taxes sharply on the wealthy, redistributing nearly $2 trillion to high income families—just in the past ten years. In 2011, the nonpartisan Congressional Budget Office and Congressional Research Service each studied income inequality and concluded that the cuts made the tax system less progressive and were the second biggest contributor to growing inequality.
Outsourcing
Starting under President Bill Clinton’s “reinventing government” initiative, the federal government has directed trillions of tax dollars to private-sector contractors by outsourcing government operations that would previously have been performed by government employees. Federal money flowing to business rose 7% during Clinton’s second term and 72% percent under Bush, before leveling off in 2010. This has contributed to inequality because private employers typically offer lower skilled workers less job security, lower wages and fewer benefits than the federal government does.
Lobbying
Nearly 13,000 registered lobbyists reported $3.3 billion in fees last year. There are 22% more lobbyists than in 1998, and their inflation-adjusted revenue is 37% higher than in 1998. Because re-election to Congress is so expensive, the campaign contributions that lobbyists influence or control are critical to political survival on Capitol Hill. But lobbyists work overwhelmingly for groups representing social elites. According to a study led by Prof. Kay Schlozman, the majority of lobbying groups exist to advance the interests of business, while groups advocating for union workers and the poor came in last and second to last on the list.
Obama JOBS Act Helped Big Companies Avoid Transparency
By Noel Brinkerhoff, David Wallechinsky| AllGov | December 16, 2012
Legislation that was supposed to help smaller companies go public has aided larger firms to keep financial data out of the hands of investors.
The “Jumpstart Our Business Startups Act” (or JOBS Act) was promoted by President Barack Obama as a way to assist small businesses in their efforts to raise money through IPOs (stock market launches).
The same legislation, though, made it possible for larger companies (those earning less than $1 billion a year) to dodge reporting details about executive compensation and financial histories to the Securities and Exchange Commission.
Companies also can delay disclosing their plans to go public until just before the big day, under the JOBS Act.
“In effect, it means the press and potential investors have less time to comb through financial information, as well as less information to examine,” wrote James Temple in the San Francisco Chronicle.
The abuse of the law should not come as a surprise. At the time that the JOBS Act passed through Congress, Democratic Senator Carl Levin of Michigan warned, “We are about to embark upon the most sweeping deregulatory effort and assault on investor protection in decades.… It will allow vast new opportunities for fraud and abuse in capital markets.”
Meanwhile, the new law, which was adopted in April, hasn’t done much to boost the numbers for IPOs, according to Ernst & Young. This year, 130 companies raised $45 billion on U.S. exchanges, compared to 124 businesses and $40 billion in 2011.
The JOBS Act was the “brainchild” of the President’s Council on Jobs and Competitiveness, which is headed by General Electric CEO Jeffrey Immelt and, at the time the JOBS Act was proposed, consisted of 18 corporate CEOs and investment executives, two academics and two labor leaders.
Israeli FM Resigns Following Fraud, Breach Of Trust, Indictment
Palestine Information Center – 15/12/2012
NAZARETH — Israeli foreign minister Avigdor Lieberman declared his intention to resign from his post on Friday after being charged with fraud and breach of trust, in a move that could have profound implications for the next general election.
Lieberman’s declared resignation came after Israel’s attorney general issued a legal indictment against him in this regard.
On his facebook page, Lieberman, who leads the extremist Yisrael Beiteinu party, claimed he stepped down, although he was sure he had committed no crime.
The indictment he will face stems from an investigation into other offences he has committed. He is accused of promoting Israel’s former ambassador to Belarus for another post after the ambassador gave him confidential information regarding an Israeli police investigation into Lieberman’s activities.
Lieberman said on his page that he had been hounded by corruption accusations since July 1996.
He was already accused of financial corruption and money laundering, but the attorney general had to drop those charges against him for insufficient evidence.
Banking on Criminality: Drug Money and the Above-the-Law Global Banking Cartel
By Andrew Gavin Marshall | December 13, 2012
In what the New York Times declared as a “dark day for the rule of law” on December 11, 2012, HSBC, the world’s second largest bank, failed to be indicted for extensive criminal activities in laundering money to and from regimes under sanctions, Mexican drug cartels, and terrorist organizations (including al-Qaeda). While admitting culpability, and with guilt assured, state and federal authorities in the United States decided not to indict the bank “over concerns that criminal charges could jeopardize one of the world’s largest banks and ultimately destabilize the global financial system.” Instead, HSBC agreed to pay a $1.92 billion settlement.
The fear was that an indictment would be a “death sentence” for HSBC. The U.S. Justice Department, which was prosecuting the case, was told by the U.S. Treasury Department and the Federal Reserve that taking such an “aggressive stance” against HSBC could have negative effects upon the economy. Instead, the bank was to forfeit $1.2 billion and pay $700 million in fines on top of that for violating the Bank Secrecy Act and the Trading with the Enemy Act. In a statement, HSBC’s CEO stated, “We accept responsibility for our past mistakes… We are committed to protecting the integrity of the global financial system. To this end, we will continue to work closely with governments and regulators around the world.” With more than $7 billion in Mexican drug cartel money laundered through HSBC alone, the fine amounts to a slap on the wrist, no more than a cost-benefit analysis of doing business: if the ‘cost’ of laundering billions in drug money is less than the ‘benefit,’ the policy will continue.
As part of the settlement, not one banker at HSBC was to be charged in the case. The New York Times acknowledged that, “the government has bought into the notion that too big to fail is too big to jail.” HSBC joins a list of some of the world’s other largest banks in paying fines for criminal activities, including Credit Suisse, Lloyds, ABN Amro and ING, among others. The U.S. Assistant Attorney General Lanny A. Breuer referred to the settlement as an example of HSBC “being held accountable for stunning failures of oversight.” Lanny Breuer, who heads the Justice Department’s criminal division, which was responsible for prosecuting the case against HSBC, was previously a partner at a law firm (along with the U.S. Attorney General Eric Holder) where they represented a number of major banks and other conglomerates in cases dealing with foreclosure fraud. While Breuer and Holder were partners at Covington & Burling, the firm represented notable clients such as Bank of America, Citigroup, JP Morgan Chase and Wells Fargo, among others. It seems that at the Justice Department, they continue to have the same job: protecting the major banks from being persecuted for criminal behaviour.
With a great deal of focus on the $1.9 billion in fines being paid out by HSBC, little mention was made of the fact that HSBC had roughly $2.5 trillion in assets, and earned $22 billion in profits in 2011. But not to worry, HSBC’s executive said that they “accept responsibility for our past mistakes,” and added: “We have said we are profoundly sorry for them, and we do so again.” So not only did the executives of the world’s second largest bank apologize for laundering billions in drug money (along with other crimes), but they apologized… again. Thus, they pay a comparably small fine and face no criminal charges. I wonder if a crack dealer from a ghetto in the United States could avoid criminal prosecution if he were to apologize not once, but twice. Actually, we don’t have to wonder. In May of 2012, as HSBC executives were testifying before the U.S. Senate in Washington D.C., admitting their role in drug money laundering, a poor black man was convicted of peddling 5.5 grams of crack cocaine just across the river from the U.S. Capitol building, and he was given 10 years in prison.
Back in August the bank stated that they had put aside $700 million to pay fines for illegal activities, which conveniently was the exact amount they were fined by the U.S. Justice Department (not including the forfeiture of profits). Lanny Breuer declared the settlement to be “a very just, very real and very powerful result.” Indeed, one could agree that the results are “powerful” and “very real,” in that they provide a legal state-sanctioned decision that big banks will not be prosecuted for their vast criminal activities, precisely because they are big banks. The “very real” result of this is that we can guarantee that such criminal behaviour will continue, since the banks will continue to be protected by the state. With news of the settlement, HSBC’s market share price rose by 2.8%, a clear sign that “financial markets” also reward criminal behaviour and the “pervasively polluted” culture at HSBC (in the words of the U.S. Senate report).
Jack Blum, a Washington attorney and former special counsel for the Senate Foreign Relations Committee who specializes in money laundering and financial crimes stated that, “If these people aren’t prosecuted, who will be?” He further asked: “What do you have to do to be prosecuted? They have crossed every bright line in bank compliance. When is there an offense that’s bad enough for a big bank to be prosecuted?” But the Justice Department’s Lanny Breuer explained that his department had to consider “the collateral consequences” of prosecutions: “If you prosecute one of the largest banks in the world, do you risk that people will lose their jobs, other financial institutions and other parties will leave the bank, and there will be some kind of event in the world economy?”
In other words, the U.S. Justice Department decided that big banks are above the law, because if they weren’t, there would be severe consequences for the financial system. And this is not just good news for HSBC, the “favourite” bank of Mexican drug cartels (according to Bloomberg), but it’s good news for all banks. After all, HSBC is not the only bank engaged in laundering drug money and other illegal activities. Back in 2010, Wachovia (now part of Wells Fargo) paid roughly $160 million in fines for laundering some $378.4 billion in drug money. Drug money has also been found to be laundered through other major financial institutions, including Bank of America, Banco Santander, Citigroup, and the banking branch of American Express. Nearly all of the world’s largest banks have been or are currently being investigated for other crimes, including rigging interest rates (in what’s known as the Libor scandal), and other forms of fraud. Among the banks being investigated for criminal activity by U.S. prosecutors are Barclays, Deutsche Bank, Citigroup, JP Morgan Chase, Royal Bank of Scotland, UBS, Bank of America, Bank of Tokyo Mitsubishi, Credit Suisse, Lloyds, Rabobank, Royal Bank of Canada, and Société Générale, among others. Regulators and investigators of the Libor scandal – “the biggest financial scandal ever” – report that the world’s largest banks engage in “organized fraud” and function like a “cartel” or “mafia.”
The pervasive criminality of this “international cartel” is so consistent that one commentator with the Guardian has referred to global banks as “the financial services wing of the drug cartels.” But indeed, where could be a better place for drug cartels to deposit their profits than with a financial cartel? And why would banks give up their pivotal role in the global drug trade? While the pharmaceutical drug industry records annual revenues in the hundreds of billions of dollars (which is nothing to ignore), the global trade in illicit drugs, according to the United Nations Office on Drugs and Crime, amounted to roughly 2.3-5.5% of global GDP, around $2.1 trillion (U.S.) in 2009. That same year, the same United Nations office reported that billions of dollars in drug money saved the major global banks during the financial crisis, as “the only liquid investment capital” pouring into banks. Roughly $325 billion in drug money was absorbed by the financial system in 2009. It is in the interest of banks to continue profiting off of the global drug trade, and now they have been given a full green light by the Obama administration to continue.
Welcome to the world of financial criminality, the “international cartel” of drug money banks and their political protectors. These banks not only launder billions in drug money, finance terrorists and commit massive fraud, but they create massive financial and economic crises, and then our governments give them trillions of dollars in bailouts, again rewarding them for creating crises and committing criminal acts. On top of that, we, the people, are handed the bill for the bailouts and have to pay for them through reduced standards of living by being punished into poverty through ‘austerity measures’ and have our labour, resources, and societies exploited through ‘structural reform’ policies. These criminal banks dominate the global economy, and dictate policies to national political oligarchies. Their greed, power, and parasitic nature knows no bounds.
The fact that the Justice Department refused to prosecute HSBC because of the effects it could have on the financial system should be a clear sign that the financial system does not function for the benefit of people and society as a whole, and thus, that it needs to be dramatically changed, cartels need to be destroyed, banks broken up, criminal behaviour punished (not rewarded), and that people should dictate the policies of society, not a small network of international criminal cartel banks.
But then, that would be rational, so naturally it’s not even up for discussion.
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“Democratic Institutions?” – 10 Lessons from history that will destroy your trust in the CIA
By Kit | OffGuardian | July 20, 2018
… At every corner, we are urged to simply believe what we are told. Whether it is about believing Porton Down and MI6 about “novichok”, or believing the White Helmets about Sarin, or believing the FBI about “collusion”, we are presented with no facts, just assertions from authority. Those who question those assertions are deemed “bots” at best or “traitors” at worst.
Well here, fellow traitors, are the Top Ten reasons to question anything and everything the CIA – or any intelligence agency – has ever told you. … Read full article
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