Think your savings are safe? Well, think again. "Grand theft, bank account" is becoming a forgivable crime in Europe AND the U.S. ...so long as the criminals are too-big-to-jail banksters. BEWARE! Experts like Ellen Brown have been tracking the evidence for months and find that no other conclusion is possible.

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It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors

Posted on March 28, 2013 by Ellen Brown                                                                                                     Original Here

Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.  

New Zealand has a similar directive, discussed in my last article here, indicating that this isn’t just an emergency measure for troubled Eurozone countries. New Zealand’s Voxy reported on March 19^th:

The National Government [is] pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts . . . .

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

Can They Do That?

Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.”  The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.

The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.”  It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state:

An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.

No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks.  The directive is called a “resolution process,” defined elsewhere as a plan that “would be triggered in the event of the failure of an insurer . . . .” The only  mention of “insured deposits” is in connection with existing UK legislation, which the FDIC-BOE directive goes on to say is inadequate, implying that it needs to be modified or overridden.

An Imminent Risk

If our IOUs are converted to bank stock, they will no longer be subject to insurance protection but will be “at risk” and vulnerable to being wiped out, just as the Lehman Brothers shareholders were in 2008.  That this dire scenario could actually materialize was underscored by Yves Smith in a March 19th post titled When You Weren’t Looking, Democrat Bank Stooges Launch Bills to Permit Bailouts, Deregulate Derivatives.  She writes:

In the US, depositors have actually been put in a worse position than Cyprus deposit-holders, at least if they are at the big banks that play in the derivatives casino. The regulators have turned a blind eye as banks use their depositaries to fund derivatives exposures. And as bad as that is, the depositors, unlike their Cypriot confreres, aren’t even senior creditors. Remember Lehman? When the investment bank failed, unsecured creditors (and remember, depositors are unsecured creditors) got eight cents on the dollar. One big reason was that derivatives counterparties require collateral for any exposures, meaning they are secured creditors. The 2005 bankruptcy reforms made derivatives counterparties senior to unsecured lenders.

One might wonder why the posting of collateral by a derivative counterparty, at some percentage of full exposure, makes the creditor “secured,” while the depositor who puts up 100 cents on the dollar is “unsecured.” But moving on – Smith writes:

Lehman had only two itty bitty banking subsidiaries, and to my knowledge, was not gathering retail deposits. But as readers may recall, Bank of America moved most of its derivatives from its Merrill Lynch operation [to] its depositary in late 2011.

Its “depositary” is the arm of the bank that takes deposits; and at B of A, that means lots and lots of deposits. The deposits are now subject to being wiped out by a major derivatives loss. How bad could that be? Smith quotes Bloomberg:

. . . Bank of America’s holding company . . . held almost $75 trillion of derivatives at the end of June . . . .

That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show.

$75 trillion and $79 trillion in derivatives! These two mega-banks alone hold more in notional derivatives each than the entire global GDP (at $70 trillion). The “notional value” of derivatives is not the same as cash at risk, but according to a cross-post on Smith’s site:

By at least one estimate, in 2010 there was a total of $12 trillion in cash tied up (at risk) in derivatives . . . .

$12 trillion is close to the US GDP.  Smith goes on:

. . . Remember the effect of the 2005 bankruptcy law revisions: derivatives counterparties are first in line, they get to grab assets first and leave everyone else to scramble for crumbs. . . . Lehman failed over a weekend after JP Morgan grabbed collateral.

But it’s even worse than that. During the savings & loan crisis, the FDIC did not have enough in deposit insurance receipts to pay for the Resolution Trust Corporation wind-down vehicle. It had to get more funding from Congress. This move paves the way for another TARP-style shakedown of taxpayers, this time to save depositors.

Perhaps, but Congress has already been burned and is liable to balk a second time. Section 716 of the Dodd-Frank Act specifically prohibits public support for speculative derivatives activities. And in the Eurozone, while the European Stability Mechanism committed Eurozone countries to bail out failed banks, they are apparently having second thoughts there as well. On March 25^th, Dutch Finance Minister Jeroen Dijsselbloem, who played a leading role in imposing the deposit confiscation plan on Cyprus, told reporters that it would be the template for any future bank bailouts, and that “the aim is for the ESM never to have to be used.”

That explains the need for the FDIC-BOE resolution. If the anticipated enabling legislation is passed, the FDIC will no longer need to protect depositor funds; it can just confiscate them.

Worse Than a Tax

An FDIC confiscation of deposits to recapitalize the banks is far different from a simple tax on taxpayers to pay government expenses. The government’s debt is at least arguably the people’s debt, since the government is there to provide services for the people. But when the banks get into trouble with their derivative schemes, they are not serving depositors, who are not getting a cut of the profits. Taking depositor funds is simply theft.

What should be done is to raise FDIC insurance premiums and make the banks pay to keep their depositors whole, but premiums are already high; and the FDIC, like other government regulatory agencies, is subject to regulatory capture.  Deposit insurance has failed, and so has the private banking system that has depended on it for the trust that makes banking work.

The Cyprus haircut on depositors was called a “wealth tax” and was written off by commentators as “deserved,” because much of the money in Cypriot accounts belongs to foreign oligarchs, tax dodgers and money launderers. But if that template is applied in the US, it will be a tax on the poor and middle class. Wealthy Americans don’t keep most of their money in bank accounts.  They keep it in the stock market, in real estate, in over-the-counter derivatives, in gold and silver, and so forth.

Are you safe, then, if your money is in gold and silver? Apparently not – if it’s stored in a safety deposit box in the bank.  Homeland Security has reportedly told banks that it has authority to seize the contents of safety deposit boxes without a warrant when it’s a matter of “national security,” which a major bank crisis no doubt will be.

The Swedish Alternative: Nationalize the Banks

Another alternative was considered but rejected by President Obama in 2009: nationalize mega-banks that fail. In a February 2009 article titled “Are Uninsured Bank Depositors in Danger?“, Felix Salmon discussed a newsletter by Asia-based investment strategist Christopher Wood, in which Wood wrote:

It is . . . amazing that Obama does not understand the political appeal of the nationalization option. . . . [D]espite this latest setback nationalization of the banks is coming sooner or later because the realities of the situation will demand it. The result will be shareholders wiped out and bondholders forced to take debt-for-equity swaps, if not hopefully depositors.

On whether depositors could indeed be forced to become equity holders, Salmon commented:

It’s worth remembering that depositors are unsecured creditors of any bank; usually, indeed, they’re by far the largest class of unsecured creditors.

President Obama acknowledged that bank nationalization had worked in Sweden, and that the course pursued by the US Fed had not worked in Japan, which wound up instead in a “lost decade.”  But Obama opted for the Japanese approach because, according to Ed Harrison, “Americans will not tolerate nationalization.”

But that was four years ago. When Americans realize that the alternative is to have their ready cash transformed into “bank stock” of questionable marketability, moving failed mega-banks into the public sector may start to have more appeal.
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Ellen Brown is an attorney, chairman of the Public Banking Institute, and the author of eleven books, including Web of Debt: The Shocking Truth About Our Money System and How We Can Break Free. Her websites are webofdebt.com and ellenbrown.com. For details of the June 2013 Public Banking Institute conference in San Rafael, California, see here.

A small extract from what you will read below: "An audit of the Federal Reserve released in July, 2011, revealed that the Federal Reserve had provided $16 trillion – a sum larger than US GDP or the US public debt – in secret loans to bail out American and foreign banks, while doing nothing to aid the millions of American families being foreclosed out of their homes. Political accountability disappeared as all public assistance was directed to the mega-rich, whose greed had produced the financial crisis."

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Americans’ Economic Prospects And Civil Liberties Have Been Stolen — Paul Craig Roberts

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March 24, 2013 | Original Here

Note: there are many new interviews posted [on his original]. If you have time on your hands, the interviews will give you a better result than video games.

I receive numerous questions from readers about our economic situation and the condition of civil liberty. There is no way I can answer so many inquiries, and no need. I have written two books that provide the answers, and they are inexpensive. I have done my job. It is up to you to inform yourself. Kindle Reader software is available as a free online download that permits you to read ebooks in your own web browser. No Kindle device is required. Here are the URls for Apple and PC free downloads: Kindle for PC: http://www.amazon.com/gp/feature.html?ie=UTF8&docId=1000426311
Kindle for Mac: http://www.amazon.com/gp/feature.html?ie=UTF8&docId=1000464931

My latest, The Failure Of Laissez Faire Capitalism And Economic Dissolution of the West, is available as an ebook in English as of March 2013 from Amazon.com and from Barnes&Noble. My book is endorsed by Michael Hudson and Nomi Prims and has a 5 star rating from Amazon reviewers (as of March 23, 2013). Pam Martens’ review at Wall Street On Parade is available here: http://wallstreetonparade.com/2013/03/paul-craig-roberts’-primer-on-why-the-great-recession-is-the-new-normal/

Libertarians who have not read the book have had an ideological knee-jerk reaction to the title. They demand to know how can I call the present system of crony capitalism laissez faire. I don’t. The current system of government supported crony capitalism is the end result of a 25-year process of deregulation. Deregulation did not produce libertarian nirvana. It produced economic concentration and crony capitalism.

Amazon provides as a free read the introduction by Johannes Maruschzik to the German edition. Below is my Introduction to my book.

Not only has your economy been stolen from you but also your civil liberties. My coauthor Lawrence Stratton and I provide the scary details of the entire story in The Tyranny of Good Intentions. In the US law is no longer a shield of the people against arbitrary government. Instead, law has been transformed into a weapon in the hands of the government.

Josie Appleton documents that in England also law has been turned into a weapon against the people. http://www.spiked-online.com/site/printable/13420/ Anglo-American law, the foundation of liberty and one of the greatest human achievements, lies in ruins.

Libertarians think that liberty is a natural right, and some Christians think that it is a God-given right. In fact, liberty is a human achievement, fought for by Englishmen over the centuries. In the late 17th century, the achievement of the Glorious Revolution was to hold the British government accountable to law. William Blackstone heralded the achievement in his famous Commentaries On The Laws Of England, a bestseller in pre-revolutionary America and the foundation of the US Constitution.

In the late 20th century and early 21st century, governments in the US and Great Britain chafed under the requirement that government, like the people, is ruled by law and took steps to free government from accountability to law.

Appleton says that the result is a “tectonic shift in the relationship between the state and the citizen.” Citizens of the US and UK are once again without the protection of law and subject to arbitrary arrests and indictments or to indefinite detention in the absence of indictments.

In the US, citizens can be detained indefinitely and even executed without due process of law. There is no basis in the US Constitution for these asserted powers. The unconstitutional powers exist only because Congress, the judiciary and the American people have accepted the lie that the loss of civil liberty is the price paid for protection against terrorists.

In a very short time the raw power of the state has been resurrected. Most Americans are oblivious to this outcome. As long as government is imprisoning and killing without trials demonized individuals whom Americans have been propagandized to fear, Americans approve. Americans do not understand that a point is reached when demonization becomes unnecessary and that precedents have been established that revoke the Bill of Rights.

If you are educated by these two books, you will be better able to understand what is happening and, thus, you will be in a better position to survive what is coming.

Introduction to The Failure of Laissez Faire Capitalism and Economic
Dissolution of the West: Towards a New Economics for a Full World

The collapse of the Soviet Union in 1991 and the rise of the high speed Internet have proved to be the economic and political undoing of the West. “The End Of History” caused socialist India and communist China to join the winning side and to open their economies and underutilized labor forces to Western capital and technology. Pushed by Wall Street and large retailers, such as Wal-Mart, American corporations began offshoring the production of goods and services for their domestic markets. Americans ceased to be employed in the manufacture of goods that they consume as corporate executives maximized shareholder earnings and their performance bonuses by substituting cheaper foreign labor for American labor. Many American professional occupations, such as software engineering and Information Technology, also declined as corporations moved this work abroad and brought in foreigners at lower renumeration for many of the jobs that remained domestically. Design and research jobs followed manufacturing abroad, and employment in middle class professional occupations ceased to grow. By taking the lead in offshoring production for domestic markets, US corporations force the same practice on Europe. The demise of First World employment and of Third World agricultural communities, which are supplanted by large scale monoculture, is known as Globalism.

For most Americans income has stagnated and declined for the past two decades. Much of what Americans lost in wages and salaries as their jobs were moved offshore came back to shareholders and executives in the form of capital gains and performance bonuses from the higher profits that flowed from lower foreign labor costs. The distribution of income worsened dramatically with the mega-rich capturing the gains, while the middle class ladders of upward mobility were dismantled. University graduates unable to find employment returned to live with their parents.

The absence of growth in real consumer incomes resulted in the Federal Reserve expanding credit in order to keep consumer demand growing. The growth of consumer debt was substituted for the missing growth in consumer income. The Federal Reserve’s policy of extremely low interest rates fueled a real estate boom. Housing prices rose dramatically, permitting homeowners to monetize the rising equity in their homes by refinancing their mortgages.

Consumers kept the economy alive by assuming larger mortgages and spending the equity in their homes and by accumulating large credit card balances. The explosion of debt was securitized, given fraudulent investment grade ratings, and sold to unsuspecting investors at home and abroad.

Financial deregulation, which began in the Clinton years and leaped forward in the George W. Bush regime, unleashed greed and debt leverage. Brooksley Born, head of the federal Commodity Futures Trading Commission, was prevented from regulating over-the-counter derivatives by the chairman of the Federal Reserve, the Secretary of the Treasury, and the chairman of the Securities and Exchange Commission. The financial stability of the world was sacrificed to the ideology of these three stooges that “markets are self-regulating.” Insurance companies sold credit default swaps against junk financial instruments without establishing reserves, and financial institutions leveraged every dollar of equity with $30 dollars of debt.

When the bubble burst, the former bankers running the US Treasury provided massive bailouts at taxpayer expense for the irresponsible gambles made by banks that they formerly headed. The Federal Reserve joined the rescue operation. An audit of the Federal Reserve released in July, 2011, revealed that the Federal Reserve had provided $16 trillion–a sum larger than US GDP or the US public debt–in secret loans to bail out American and foreign banks, while doing nothing to aid the millions of American families being foreclosed out of their homes. Political accountability disappeared as all public assistance was directed to the mega-rich, whose greed had produced the financial crisis.

The financial crisis and plight of the banksters took center stage and prevented recognition that the crisis sprang not only from the financial deregulation but also from the expansion of debt that was used to substitute for the lack of growth in consumer income. As more and more jobs were offshored, Americans were deprived of incomes from employment. To maintain their consumption, Americans went deeper into debt.

The fact that millions of jobs have been moved offshore is the reason why the most expansionary monetary and fiscal policies in US history have had no success in reducing the unemployment rate. In post-World War II 20th century recessions, laid-off workers were called back to work as expansionary monetary and fiscal policies stimulated consumer demand. However, 21st century unemployment is different. The jobs have been moved abroad and no longer exist. Therefore, workers cannot be called back to factories and to professional service jobs that have been moved abroad.

Economists have failed to recognize the threat that jobs offshoring poses to economies and to economic theory itself, because economists confuse offshoring with free trade, which they believe is mutually beneficial. I will show that offshoring is the antithesis of free trade and that the doctrine of free trade itself is found to be incorrect by the latest work in trade theory. Indeed, as we reach toward a new economics, cherished assumptions and comforting theoretical conclusions will be shown to be erroneous.

This book is organized into three sections. The first section explains successes and failures of economic theory and the erosion of the efficacy of economic policy by globalism. Globalism and financial concentration have destroyed the justifications of market capitalism. Corporations that have become “too big to fail” are sustained by public subsidies, thus destroying capitalism’s claim to be an efficient allocator of resources. Profits no longer are a measure of social welfare when they are obtained by creating unemployment and declining living standards in the home country.

The second section documents how jobs offshoring or globalism and financial deregulation wrecked the US economy, producing high rates of unemployment, poverty and a distribution of income and wealth extremely skewed toward a tiny minority at the top. These severe problems cannot be corrected within a system of globalism.

The third section addresses the European debt crisis and how it is being used both to subvert national sovereignty and to protect bankers from losses by imposing austerity and bailout costs on citizens of the member countries of the European Union.

I will suggest that it is in Germany’s interest to leave the EU, revive the mark, and enter into an economic partnership with Russia. German industry, technology, and economic and financial rectitude, combined with Russian energy and raw materials, would pull all of Eastern Europe into a new economic union, with each country retaining its own currency and budgetary and tax authority. This would break up NATO, which has become an instrument for world oppression and is forcing Europeans to assume burdens of the American Empire.

Sixty-seven years after the end of World War II, twenty-two years after the reunification of Germany, and twenty-one years after the collapse of the Soviet Union, Germany is still occupied by US troops. Do Europeans desire a future as puppet states of a collapsing empire, or do they desire a more promising future of their own?

There are two forms of debt, public and private. Public debt is accrued by the government, and in the case of the U.S. does not have to be repaid (so long as the rest of the world continues to tolerate continued printing of more dollars). In fact, since the 2008 financial crisis, the U.S. (via the Fed) has printed $13 TRILLION(!) to bail out the big banks from their reckless mortage loans. Most of the private debt was socked on American citizens when the bank-created real-estate bubble burst. In the past, when there was a financial crisis the banks had to eat their losses, and private debts were written down to whatever the market could afford. But now the government is saying that there cannot be a market solution (because it would hurt its largest campaign contributers, the big banks). So the Obama administration and the Republicans are saying that more private debt (in the form of reinflating the real estate market) is the solution to the present "financial crisis." But in order to appear fiscally "responsible" the government claims that it should cut some part of the deficit ...and the only thing left to cut is Social Security, Medicare, and other social spending. But not only would this be stealing from the rapidly disappearing American middle class (whose payroll taxes have fully paid for these things), it would also be poor economics: As a result, the growth of private debt would grow to even more than the current 75 to 80 percent of family income, essentially shutting down all discretionary consumption ...whereas consumers consuming comprise 70% of the U.S. GDP. "We must destroy the village in order to save it"?

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 theREALnews                                                                               Permalink

March 25, 2013
Government Debt and Deficits Are Not the Problem - Private Debt Is

Michael Hudson: Why do they call for governments to balance the budget by pushing the economy at large deeper into debt, while trying to save the banks from taking a loss? -

Bio

Michael Hudson is a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of Super-Imperialism: The Economic Strategy of American Empire (1968 & 2003), Trade, Development and Foreign Debt (1992 & 2009) and of The Myth of Aid (1971). His most recent book is "Beyond the Bubble." 

According to Ellen Brown, who knows as much about banking as anyone in the world, what is now facing to the Cypriots can, and one day certainly will happen to Americans. The facts are that today's monster banks can loan much more money than their depositors deposit. However, in the event of a run on the banks, neither the banks nor those owning bank stocks will be liable. All losses will be borne by the depositors!!! You can look this up on Wikipedia. Advice: Move your savings account to a reliable credit union, STAT!

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A Safe and a Shotgun or Publicly-owned Banks? The Battle of Cyprus

Posted on March 21, 2013 by Ellen Brown

If these worries become really serious, . . . [s]mall savers will take their money out of banks and resort to household safes and a shotgun.

– Martin Hutchinson on the attempted EU raid on deposits in Cyprus banks

The deposit confiscation scheme has long been in the making.  US depositors could be next . . . .  
On Tuesday, March 19, the national legislature of Cyprus overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout.  Reuters called it “a stunning setback for the 17-nation currency bloc,” but it was a stunning victory for democracy. As Reuters quoted one 65-year-old pensioner, “The voice of the people was heard.”
 
The EU had warned that it would withhold €10 billion in bailout loans, and the European Central Bank (ECB) had threatened to end emergency lending assistance for distressed Cypriot banks, unless depositors – including small savers – shared the cost of the rescue. In the deal rejected by the legislature, a one-time levy on depositors would be required in return for a bailout of the banking system. Deposits below €100,000 would be subject to a 6.75% levy or “haircut”, while those over €100,000 would have been subject to a 9.99% “fine.”
 
The move was bold, but the battle isn’t over yet.  The EU has now given Cyprus until Monday to raise the billions of euros it needs to clinch an international bailout or face the threatened collapse of its financial system and likely exit from the euro currency zone.

The Long-planned Confiscation Scheme

 
The deal pushed by the “troika” – the EU, ECB and IMF – has been characterized as a one-off event devised as an emergency measure in this one extreme case. But the confiscation plan has long been in the making, and it isn’t limited to Cyprus.

In a September 2011 article in the Bulletin of the Reserve Bank of New Zealand titled “A Primer on Open Bank Resolution,” Kevin Hoskin and Ian Woolford discussed a very similar haircut plan that had been in the works, they said, since the 1997 Asian financial crisis.  The article referenced recommendations made in 2010 and 2011 by the Basel Committee of the Bank for International Settlements, the “central bankers’ central bank” in Switzerland.

The purpose of the plan, called the Open Bank Resolution (OBR) , is to deal with bank failures when they have become so expensive that governments are no longer willing to bail out the lenders. The authors wrote that the primary objectives of OBR are to:

• ensure that, as far as possible, any losses are ultimately borne by the bank’s shareholders and creditors . . . .

The spectrum of “creditors” is defined to include depositors:

At one end of the spectrum, there are large international financial institutions that invest in debt issued by the bank (commonly referred to as wholesale funding). At the other end of the spectrum, are customers with cheque and savings accounts and term deposits.

Most people would be surprised to learn that they are legally considered “creditors” of their banks rather than customers who have trusted the bank with their money for safekeeping, but that seems to be the case. According to Wikipedia:

In most legal systems, . . . the funds deposited are no longer the property of the customer. The funds become the property of the bank, and the customer in turn receives an asset called a deposit account (a checking or savings account). That deposit account is a liability of the bank on the bank’s books and on its balance sheet.  Because the bank is authorized by law to make loans up to a multiple of its reserves, the bank’s reserves on hand to satisfy payment of deposit liabilities amounts to only a fraction of the total which the bank is obligated to pay in satisfaction of its demand deposits.

The bank gets the money. The depositor becomes only a creditor with an IOU. The bank is not required to keep the deposits available for withdrawal but can lend them out, keeping only a “fraction” on reserve, following accepted fractional reserve banking principles. When too many creditors come for their money at once, the result can be a run on the banks and bank failure.

The New Zealand OBR said the creditors had all enjoyed a return on their investments and had freely accepted the risk, but most people would be surprised to learn that too. What return do you get from a bank on a deposit account these days? And isn’t your deposit protected against risk by FDIC deposit insurance?

Not anymore, apparently. As Martin Hutchinson observed in Money Morning, “if governments can just seize deposits by means of a ‘tax’ then deposit insurance is worth absolutely zippo.”

The Real Profiteers Get Off Scot-Free

Felix Salmon wrote in Reuters of the Cyprus confiscation:

Meanwhile, people who deserve to lose money here, won’t. If you lent money to Cyprus’s banks by buying their debt rather than by depositing money, you will suffer no losses at all. And if you lent money to the insolvent Cypriot government, then you too will be paid off at 100 cents on the euro. . . .
The big winner here is the ECB, which has extended a lot of credit to dubiously-solvent Cypriot banks and which is taking no losses at all.

It is the ECB that can most afford to take the hit, because it has the power to print euros. It could simply create the money to bail out the Cyprus banks and take no loss at all. But imposing austerity on the people is apparently part of the plan.  Salmon writes:

From a drily technocratic perspective, this move can be seen as simply being part of a standard Euro-austerity program: the EU wants tax hikes and spending cuts, and this is a kind of tax . . . .
The big losers are working-class Cypriots, whose elected government has proved powerless . . . . The Eurozone has always had a democratic deficit: monetary union was imposed by the elite on unthankful and unwilling citizens. Now the citizens are revolting: just look at Beppe Grillo.

But that was before the Cyprus government stood up for the depositors and refused to go along with the plan, in what will be a stunning victory for democracy if they can hold their ground.

It CAN Happen Here

Cyprus is a small island, of little apparent significance. But one day, the bold move of its legislators may be compared to the Battle of Marathon, the pivotal moment in European history when their Greek forebears fended off the Persians, allowing classical Greek civilization to flourish.  The current battle on this tiny island has taken on global significance.  If the technocrat bankers can push through their confiscation scheme there, precedent will be established for doing it elsewhere when bank bailouts become prohibitive for governments.

That situation could be looming even now in the United States.  As Gretchen Morgenson warned in a recent article on the 307-page Senate report detailing last year’s $6.2 billion trading fiasco at JPMorganChase: “Be afraid.”  The report resoundingly disproves the premise that the Dodd-Frank legislation has made our system safe from the reckless banking activities that brought the economy to its knees in 2008. Writes Morgenson:

JPMorgan . . . Is the largest derivatives dealer in the world. Trillions of dollars in such instruments sit on its and other big banks’ balance sheets. The ease with which the bank hid losses and fiddled with valuations should be a major concern to investors.

Pam Martens observed in a March 18th article that JPMorgan was gambling in the stock market with depositor funds. She writes, “trading stocks with customers’ savings deposits – that truly has the ring of the excesses of 1929 . . . .”

The large institutional banks not only could fail; they are likely to fail.  When the derivative scheme collapses and the US government refuses a bailout, JPMorgan could be giving its depositors’ accounts sizeable “haircuts” along guidelines established by the BIS and Reserve Bank of New Zealand.

Time for Some Public Sector Banks?

The bold moves of the Cypriots and such firebrand political activists as Italy’s Grillo are not the only bulwarks against bankster confiscation. While the credit crisis is strangling the Western banking system, the BRIC countries – Brazil, Russia, India and China – have sailed through largely unscathed. According to a May 2010 article in The Economist, what has allowed them to escape are their strong and stable publicly-owned banks.

Professor Kurt von Mettenheim of the Sao Paulo Business School of Brazil writes, “The credit policies of BRIC government banks help explain why these countries experienced shorter and milder economic downturns during 2007-2008.” Government banks countered the effects of the financial crisis by providing counter-cyclical credit and greater client confidence.

Russia is an Eastern European country that weathered the credit crisis although being very close to the Eurozone. According to a March 2010 article in Forbes:

As in other countries, the [2008] crisis prompted the state to take on a greater role in the banking system.  State-owned systemic banks . . . have been used to carry out anticrisis measures, such as driving growth in lending (however limited) and supporting private institutions.

In the 1998 Asian crisis, many Russians who had put all their savings in private banks lost everything; and the credit crisis of 2008 has reinforced their distrust of private banks.  Russian businesses as well as individuals have turned to their government-owned banks as the more trustworthy alternative. As a result, state-owned banks are expected to continue dominating the Russian banking industry for the foreseeable future.

The entire Eurozone conundrum is unnecessary. It is the result of too little money in a system in which the money supply is fixed, and the Eurozone governments and their central banks cannot issue their own currencies. There are insufficient euros to pay principal plus interest in a pyramid scheme in which only the principal is injected by the banks that create money as “bank credit” on their books. A central bank with the power to issue money could remedy that systemic flaw, by injecting the liquidity needed to jumpstart the economy and turn back the tide of austerity choking the people.

The push to confiscate the savings of hard-working Cypriot citizens is a shot across the bow for every working person in the world, a wake-up call to the perils of a system in which tiny cadres of elites call the shots and the rest of us pay the price. When we finally pull back the veils of power to expose the men pulling the levers in an age-old game they devised, we will see that prosperity is indeed possible for all.

For more on the public bank solution and for details of the June 2013 Public Banking Institute conference in San Rafael, California, see here.
____________
Ellen Brown is an attorney, chairman of the Public Banking Institute, and the author of eleven books, including Web of Debt: The Shocking Truth About Our Money System and How We Can Break Free. Her websites are webofdebt.com and ellenbrown.com.

Author and activist David Swanson speaks in Washington on the subject of war in general and in particular the U.S. government lies used to justify the Iraq war. Saddam Hussein was claimed by the Bush White House to have weapons of mass destruction (UN inspectors repeatedly found none, even when told by the State Department where to look) and he was depicted as repressing the Iraqi people (yes, he was a despot, but the country's infrastructure was modern, the citizens had civil rights, and sectarian violence was held in check). The result of the war was about 1.5 million Iraqis killed, similar numbers of Iraqis injured or displaced, thousands of deformed babies due to extensive use of spent-uranium munitions, and deliberate triggering of now-irreversible Sunni-Shite internecine violence. Swanson's research caused him to conclude that not only was the supposed justification for attacking Iraq based on lies, but so too have been all other wars.

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 theREALnews                                                                               Permalink

http://youtu.be/cEjVHW5OUk4
Iraq 10 Years Later: Still Shocked, Not Awed

StoryofAmerica




Published on Mar 19, 2013
David Swanson's remarks were filmed March 18, 2013 at Busboys and Poets in Washington DC.

From Wikipedia:

In May 2005, Swanson was instrumental in making the Downing Street memo known in the United States and discussed in Congress. He co-founded After Downing Street (now War Is A Crime .org) and led an ongoing campaign to impeach President George W. Bush and Vice President Dick Cheney.[2] Swanson continues to work closely with the peace movement and often leads campaigns to end the Iraq War and punish those involved in launching that war.

In 2009, he wrote Daybreak: Undoing the Imperial Presidency and Forming a More Perfect Union[3] and the introduction to Dennis Kucinich's The 35 Articles of Impeachment and the Case for Prosecuting George W. Bush.[4][5] He wrote War Is a Lie in 2010.

Swanson is the Washington Director of Democrats.com;[1] a board member of Progressive Democrats of America[6] and VotersForPeace;[7] a convenor of the legislative working group of United for Peace and Justice, and the chair of its working group on Accountability and Prosecution;[citation needed] a member of War Is A Crime.org's Robert Jackson Steering Committee;[8] and a blogger for the Backbone Campaign.[9] Swanson does paid work for various peace and justice groups, including creating websites and organizing campaigns. Most recently, Swanson has been working on Velvet Revolution's campaign to oppose the United States Chamber of Commerce and its CEO Tom J. Donohue,[10] and October 2011.[11][12]

In January 2012 Swanson offered a "peace lily" to the Charlottesville City Council after it passed its "anti-Iran war" resolution (which he helped to author).

Gulag Nation USA: 2.3 Million Inmates, Forced Labor, Rancid Food -- and It's Making the Corporate Overlords Wealthy. Until we slay the beast of corporate capitalism, our prison industry and the horror it perpetuates will only expand.

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Chris Hedges' Columns
The Shame of America’s Gulag

Posted on March 17, 2013                                                                                      Original Here

By Chris Hedges

Illustration by Mr. Fish

If, as Fyodor Dostoevsky wrote, “the degree of civilization in a society can be judged by entering its prisons” then we are a nation of barbarians. Our vast network of federal and state prisons, with some 2.3 million inmates, rivals the gulags of totalitarian states. Once you disappear behind prison walls you become prey. Rape. Torture. Beatings. Prolonged isolation. Sensory deprivation. Racial profiling. Chain gangs. Forced labor. Rancid food. Children imprisoned as adults. Prisoners forced to take medications to induce lethargy. Inadequate heating and ventilation. Poor health care. Draconian sentences for nonviolent crimes. Endemic violence.

Bonnie Kerness and Ojore Lutalo, both of whom I met in Newark, N.J., a few days ago at the office of American Friends Service Committee Prison Watch, have fought longer and harder than perhaps any others in the country against the expanding abuse of prisoners, especially the use of solitary confinement. Lutalo, once a member of the Black Liberation Army, an offshoot of the Black Panthers, first wrote Kerness in 1986 while he was a prisoner at Trenton State Prison, now called New Jersey State Prison. He described to her the bleak and degrading world of solitary confinement, the world of the prisoners like him held in the so-called management control unit, which he called “a prison within a prison.” Before being released in 2009, Lutalo was in the management control unit for 22 of the 28 years he served for the second of two convictions—the first for a bank robbery and the second for a gun battle with a drug dealer. He kept his sanity, he told me, by following a strict regime of exercising in his tiny cell, writing, meditating and tearing up newspapers to make collages that portrayed his prison conditions.

“The guards in riot gear would suddenly wake you up at 1 a.m., force you to strip and make you grab all your things and move you to another cell just to harass you,” he said when we spoke in Newark. “They had attack dogs with them that were trained to go for your genitals. You spent 24 hours alone one day in your cell and 22 the next. If you do not have a strong sense of purpose you don’t survive psychologically. Isolation is designed to defeat prisoners mentally, and I saw a lot of prisoners defeated.”

Lutalo’s letter was Kerness’ first indication that the U.S. prison system was creating something new—special detention facilities that under international law are a form of torture. He wrote to her: “How does one go about articulating desperation to another who is not desperate? How does one go about articulating the psychological stress of knowing that people are waiting for me to self-destruct?”

The techniques of sensory deprivation and prolonged isolation were pioneered by the Central Intelligence Agency to break prisoners during the Cold War. Alfred McCoy, the author of “A Question of Torture: CIA Interrogation, From the Cold War to the War on Terror,” wrote in his book that “interrogators had found that mere physical pain, no matter how extreme, often produced heightened resistance.” So the intelligence agency turned to the more effective mechanisms of “sensory disorientation” and “self-inflicted pain,” McCoy noted. [One example of causing self-inflicted pain is to force a prisoner to stand without moving or to hold some other stressful bodily position for a long period.] The combination, government psychologists argued, would cause victims to feel responsible for their own suffering and accelerate psychological disintegration. Sensory disorientation combines extreme sensory overload with extreme sensory deprivation. Prolonged isolation is followed by intense interrogation. Extreme heat is followed by extreme cold. Glaring light is followed by total darkness. Loud and sustained noise is followed by silence. “The fusion of these two techniques, sensory disorientation and self-inflicted pain, creates a synergy of physical and psychological trauma whose sum is a hammer-blow to the existential platforms of personal identity,” McCoy wrote. 

After hearing from Lutalo, Kerness became a fierce advocate for him and other prisoners held in isolation units. She published through her office a survivor’s manual for those held in isolation as well as a booklet titled “Torture in United States Prisons.” And she began to collect the stories of prisoners held in isolation.

“My food trays have been sprayed with mace or cleaning agents, … human feces and urine put into them by guards who deliver trays to my breakfast, lunch, and dinner… ,” a prisoner in isolation in the Wabash Valley Correctional Facility at Carlisle, Ind., was quoted as saying in “Torture in United States Prisons.” “I have witnessed sane men of character become self-mutilators, suffer paranoia, panic attacks, hostile fantasies about revenge. One prisoner would swallow packs of AA batteries, and stick a pencil in his penis. They would cut on themselves to gain contact with staff nurses or just to draw attention to themselves. These men made slinging human feces ‘body waste’ daily like it was a recognized sport. Some would eat it or rub it all over themselves as if it was body lotion. ... Prisoncrats use a form of restraint, a bed crafted to strap men in four point Velcro straps. Both hands to the wrist and both feet to the ankles and secured. Prisoners have been kept like this for 3-6 hours at a time. Most times they would remove all their clothes. The Special Confinement Unit used [water hoses] on these men also. ... When prisons become overcrowded, prisoncrats will do forced double bunking. Over-crowding issues present an assortment of problems many of which results in violence. ... Prisoncrats will purposely house a ‘sex offender’ in a cell with prisoners with sole intentions of having him beaten up or even killed.”

In 1913 Eastern State Penitentiary, in Philadelphia, discontinued its isolation cages. Prisoners within the U.S. prison system would not be held in isolation again in large numbers until the turmoil of the 1960s and the rise of the anti-war and civil rights movements along with the emergence of radical groups such as the Black Panthers. Trenton State Prison established a management control unit, or isolation unit, in 1975 for political prisoners, mostly black radicals such as Lutalo whom the state wanted to segregate from the wider prison population. Those held in the isolation unit were rarely there because they had violated prison rules; they were there because of their revolutionary beliefs—beliefs the prison authorities feared might resonate with other prisoners. In 1983 the federal prison in Marion, Ill., instituted a permanent lockdown, creating, in essence, a prisonwide “control unit.” By 1994 the Federal Bureau of Prisons, using the Marion model, built its maximum-security prison in Florence, Colo. The use of prolonged isolation and sensory deprivation exploded. “Special housing units” were formed for the mentally ill. “Security threat group management units” were formed for those accused of gang activity. “Communications management units” were formed to isolate Muslims labeled as terrorists. Voluntary and involuntary protective custody units were formed. Administrative segregation punishment units were formed to isolate prisoners said to be psychologically troubled. All were established in open violation of the United Nations Convention Against Torture, the U.N.’s International Covenant on Civil and Political Rights, and the International Convention on the Elimination of All Forms of Racial Discrimination. Kerness calls it “the war at home.” And she says it is only the latest variation of the long assault on the poor, especially people of color.

“There are no former Jim Crow systems,” Kerness said. “The transition from slavery to Black Codes to convict leasing to the Jim Crow laws to the wars on poverty, veterans, youth and political activism in the 1960s has been a seamless evolution of political and social incapacitation of poor people of color. The sophisticated fascism of the practices of stop and frisk, charging people in inner cities with ‘wandering,’ driving and walking while black, ZIP code racism—these and many other de facto practices all serve to keep our prisons full. In a system where 60 percent of those who are imprisoned are people of color, where students of color face harsher punishments in school than their white peers, where 58 percent of African [American] youth … are sent to adult prisons, where women of color are 69 percent more likely to be imprisoned and where offenders of color receive longer sentences, the concept of colorblindness doesn’t exist. The racism around me is palpable.”

“The 1960s, when the last of the Jim Crow laws were reversed, this whole new set of practices accepted by law enforcement was designed to continue to feed the money-generating prison system, which has neo-slavery at its core,” she said. “Until we deeply recognize that the system’s bottom line is social control and creating a business from bodies of color and the poor, nothing can change.” She noted that more than half of those in the prison system have never physically harmed another person but that “just about all of these people have been harmed themselves.” And not only does the criminal justice sweep up the poor and people of color, but slavery within the prison system is permitted by the 13th Amendment of the U.S. Constitution, which reads: “Neither slavery nor involuntary servitude, except as punishment for crime whereof the party shall have been duly convicted, shall exist within the United States. …”

This, Kerness said, “is at the core how the labor of slaves was transformed into what people in prison call neo-slavery.” Neo-slavery is an integral part of the prison industrial complex, in which hundreds of thousands of the nation’s prisoners, primarily people of color, are forced to work at involuntary labor for a dollar or less an hour. “If you call the New Jersey Bureau of Tourism you are most likely talking to a prisoner at the Edna Mahan Correctional Institution for Women who is earning 23 cents an hour who has no ability to negotiate working hours or working conditions,” she said.

The bodies of poor, unemployed youths are worth little on the streets but become valuable commodities once they are behind bars.

“People have said to me that the criminal justice system doesn’t work,” Kerness said. “I’ve come to believe exactly the opposite—that it works perfectly, just as slavery did, as a matter of economic and political policy. How is it that a 15-year-old in Newark who the country labels worthless to the economy, who has no hope of getting a job or affording college, can suddenly generate 20,000 to 30,000 dollars a year once trapped in the criminal justice system? The expansion of prisons, parole, probation, the court and police systems has resulted in an enormous bureaucracy which has been a boon to everyone from architects to food vendors—all with one thing in common, a paycheck earned by keeping human beings in cages. The criminalization of poverty is a lucrative business, and we have replaced the social safety net with a dragnet.”

Prisons are at once hugely expensive—the country has spent some $300 billion on them since 1980—and, as Kerness pointed out, hugely profitable. Prisons function in the same way the military-industrial complex functions. The money is public and the profits are private. “Privatization in the prison industrial complex includes companies, which run prisons for profit while at the same time gleaning profits from forced labor,” she said. “In the state of New Jersey, food and medical services are provided by corporations, which have a profit motive. One recent explosion of private industry is the partnering of Corrections Corporation of America with the federal government to detain close to 1 million undocumented people. Using public monies to enrich private citizens is the history of capitalism at its most exploitive.”

Those released from prison are woefully unprepared for re-entry. They carry with them the years of trauma they endured. They often suffer from the endemic health problems that come with long incarceration, including hepatitis C, tuberculosis and HIV. They often do not have access to medications upon release to treat their physical and mental illnesses. Finding work is difficult. They feel alienated and are often estranged from friends and family. More than 60 percent end up back in prison.

“How do you teach someone to rid themselves of degradation?” Kerness asked. “How long does it take to teach people to feel safe, a sense of empowerment in a world where they often come home emotionally and physically damaged and unemployable? There are many reasons that ex-prisoners do not make it—paramount among them is that they are not supposed to succeed.”

Kerness has long been a crusader. In 1961 at the age of 19 she left New York to work for a decade in Tennessee in the civil rights struggle, including a year at Tennessee’s Highlander Research and Education Center, where Rosa Parks and Martin Luther King Jr. trained. By the 1970s she was involved in housing campaigns for the poor in New Jersey. She kept running into families that included incarcerated members. This led her to found Prison Watch.

The letters that pour into her office are disturbing. Female prisoners routinely complain of being sexually abused by guards. One prisoner wrote to her office: “That was not part of my sentence to perform oral sex with officers.” Other prisoners write on behalf of the mentally ill who have been left to deteriorate in the prison system. One California prisoner told of a mentally ill man spreading feces over himself and the guards then dumping him into a scalding bath that took skin off 30 percent of his body.

Kerness said the letters she receives from prisoners collectively present a litany of “inhumane conditions including cold, filth, callous medical care, extended isolation often lasting years, use of devices of torture, harassment, brutality and racism.” Prisoners send her drawings of “four- and five-point restraints, restraint hoods, restraint belts, restraint beds, stun grenades, stun guns, stun belts, spit hoods, tethers, and waist and leg chains.” But the worst torment, prisoners tell her, is the psychological pain caused by “no touch torture” that included “humiliation, sleep deprivation, sensory disorientation, extreme light or dark, extreme cold or heat” and “extended solitary confinement.” These techniques, she said, are consciously designed to carry out “a systematic attack on all human stimuli.”

The use of sensory deprivation was applied by the government to imprisoned radicals in the 1960s including members of the Black Panthers, the Black Liberation Army, the Puerto Rican independence movement and the American Indian Movement, along with environmentalists, anti-imperialists and civil rights activists. It is now used extensively against Islamic militants, jailhouse lawyers and political prisoners. Many of those political prisoners were part of radical black underground movements in the 1960s that advocated violence. A few, such as Leonard Peltier and Mumia Abu Jamal, are well known, but most have little public visibility—among them Sundiata Acoli, Mutulu Shakur, Imam Jamil Al-Amin (known as H. Rap Brown when in the 1960s he was the chairman of the Student Nonviolent Coordinating Committee), Jalil Bottom, Sekou Odinga, Abdul Majid, Tom Manning and Bill Dunne. 

Those within the system who attempt to resist the abuse and mistreatment are dealt with severely. Prisoners in the overcrowded Southern Ohio Correctional Facility, a maximum-security prison in Lucasville, Ohio, staged a revolt in 1993 after years of routine beatings, degrading rituals of public humiliation and the alleged murders of prisoners by guards. The some 450 prisoners, who were able to unite antagonistic prison factions including the Aryan Brotherhood and the black Gangster Disciples, held out for 11 days. It was one of the longest prison rebellions in U.S. history. Nine prisoners and a guard were killed by the prisoners during the revolt. The state responded with characteristic fury. It singled out some 40 prisoners and eventually shipped them to Ohio State Penitentiary (OSP), a supermax facility outside Youngstown that was constructed in 1998. There prisoners are held in solitary confinement 23 hours a day in 7-by-11-foot cells. Prisoners at OSP almost never see the sun or have human contact. Those charged with participating in the uprising have, in some cases, been held in these punitive conditions at OSP or other facilities since the 1993 revolt. Five prisoners—Bomani Shakur, Siddique Abdullah Hasan, Jason Robb, George Skatzes and Namir Abdul Mateen—involved in the uprising were charged with murder. They are being held in isolation on death row.

Kerness says the for-profit prison companies have created an entrepreneurial class like that of the Southern slaveholders, one “dependent on the poor, and on bodies of color as a source for income,” and she describes federal and state departments of corrections as “a state of mind.” This state of mind, she said in the interview, “led to Abu Ghraib, Bagram and Guantanamo and what is going on in U.S. prisons right this moment.”

As long as profit remains an incentive to incarcerate human beings and our corporate state abounds in surplus, redundant labor, there is little chance that the prison system will be reformed. It is making our corporate overlords wealthy. Our prisons serve the engine of corporate capitalism, transferring state money to private corporations. These corporations will continue to stymie rational prison reform because the system, however inhumane and unjust, feeds corporate bank accounts. At its bottom the problem is not race—although race plays a huge part in incarceration rates—nor is it finally poverty; it is the predatory nature of corporate capitalism itself. And until we slay the beast of corporate capitalism, until we wrest power back from corporations, until we build social institutions and a system of governance designed not to profit the few but foster the common good, our prison industry and the horror it perpetuates will only expand.

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The World As It Is:

Dispatches on the Myth of Human Progress

 

A collection of Truthdig Columns
by Chris Hedges

Keep up with Chris Hedges’ latest columns, interviews, tour dates and more at www.truthdig.com/chris_hedges.

Paul Craig Roberts: "Ten years ago today the Bush regime invaded Iraq." ... "What threat did the victory defeat? There was no threat. Weapons of mass destruction was a propaganda hoax. Mushroom clouds over American cities was fantasy propaganda. How ignorant do populations have to be to fall for such totally transparent propaganda? Is there no intelligence anywhere in the Western world?"

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Iraq After Ten Years — Paul Craig Roberts

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March 18, 2013 |                                                                                                                                         Original Here

March 19, 2013. Ten years ago today the Bush regime invaded Iraq. It is known that the justification for the invasion was a packet of lies orchestrated by the neoconservative Bush regime in order to deceive the United Nations and the American people.

The US Secretary of State at that time, General Colin Powell, has expressed his regrets that he was used by the Bush regime to deceive the United Nations with fake intelligence that the Bush and Blair regimes knew to be fake. But the despicable presstitute media has not apologized to the American people for serving the corrupt Bush regime as its Ministry of Propaganda and Lies.

It is difficult to discern which is the most despicable, the corrupt Bush regime, the presstitutes that enabled it, or the corrupt Obama regime that refuses to prosecute the Bush regime for its unambiguous war crimes, crimes against the US Constitution, crimes against US statutory law, and crimes against humanity.

In his book, Cultures Of War, the distinguished historian John W. Dower observes that the concrete acts of war unleashed by the Japanese in the 20th century and the Bush imperial presidency in the 21st century “invite comparative analysis of outright war crimes like torture and other transgressions. Imperial Japan’s black deeds have left an indelible stain on the nation’s honor and good name, and it remains to be seen how lasting the damage to America’s reputation will be. In this regard, the Bush administration’s war planners are fortunate in having been able to evade formal and serious investigation remotely comparable to what the Allied powers pursued vis-a-vis Japan and Germany after World War II.”

Dower quotes Arthur Schlesinger Jr.: “The president [Bush] has adopted a policy of ‘anticipatory self-defense’ that is alarmingly similar to the policy that imperial Japan employed at Pearl Harbor on a date which, as an earlier American president said it would, lives in infamy. Franklin D. Roosevelt was right, but today it is we Americans who live in infamy.”

Americans paid an enormous sum of money for the shame of living in infamy. Joseph Stiglitz and Linda Bilmes calculated that the Iraq war cost US taxpayers $3,000 billion dollars. This estimate might turn out to be optimistic. The latest study concludes that the war could end up costing US taxpayers twice as much. http://www.reuters.com/article/2013/03/14/iraq-war-anniversary-idUSL1N0C5FBN20130314

In order to pay for the profits that have flowed into the pockets of the US military-security complex and from there into political contributions, Americans are in danger of losing Social Security, Medicare, and the social cohesiveness that the social welfare system provides.

The human cost to Iraq of America’s infamy is extraordinary: 4.5 million displaced Iraqis, as many as 1 million dead civilians leaving widows and orphans, a professional class that has departed the country, an infrastructure in ruins, and social cohesion destroyed by the Sunni-Shia conflict that was ignited by Washington’s destruction of the Saddam Hussein government.

It is a sick joke that the United States government brought freedom and democracy to Iraq. What the Washington war criminals brought was death and the destruction of a country.

The US population, for the most part, seems quite at ease with the gratuitous destruction of Iraq and all that it entails: children without parents, wives without husbands, birth defects from “depleted” uranium, unsafe water, a country without hope mired in sectarian violence.

Washington’s puppet state governments in the UK, Europe, the Middle East and Japan seem equally pleased with the victory–over what? What threat did the victory defeat? There was no threat. Weapons of mass destruction was a propaganda hoax. Mushroom clouds over American cities was fantasy propaganda. How ignorant do populations have to be to fall for such totally transparent propaganda? Is there no intelligence anywhere in the Western world?

At a recent conference the neoconservatives responsible for the deaths and ruined lives of millions and for the trillions of dollars that their wars piled on US national debt were unrepentant and full of self-justification. While Washington looks abroad for evil to slay, evil is concentrated in Washington itself. http://nationalinterest.org/blog/paul-pillar/still-peddling-iraq-war-myths-ten-years-later-8227

The American war criminals walk about unmolested. They are paid large sums of money to make speeches about how Americans are bringing freedom and democracy to the world by invading, bombing and murdering people. The War Crimes Tribunal has not issued arrest warrants. The US Department of State, which is still hunting for Nazi war criminals, has not kidnapped the American ones and sent them to be tried at the Hague.

The Americans who suffered are the 4,801 troops who lost their lives, the thousands of troops who lost limbs and suffer from other permanent wounds, the tens of thousands who suffer from post-traumatic stress and from the remorse of killing innocent people, the families and friends of the American troops, and the broken marriages and single-parent children from the war stress.

Other Americans have suffered on the home front. Those whose moral conscience propelled them to protest the war were beaten and abused by police, investigated and harassed by the FBI, and put on no-fly lists. Some might actually be prosecuted. The Unites States has reached the point where any citizen who has a moral conscience is an enemy of the state. The persecution of Bradley Manning demonstrates this truth.

A case could be made that the historians’ comparison of the Bush regime with Japanese war criminals doesn’t go far enough. By this October 7, Washington will have been killing people, mainly women, children, and village elders, in Afghanistan for 12 years. No one knows why America has brought such destruction to the Afghan people. First the Soviets; then the Americans. What is the difference? When Obama came into the presidency, he admitted that no one knew what the US military mission was in Afghanistan. We still don’t know. The best guess is profits for the US armaments industry, power for the Homeland Security industry, and a police state for the insouciant US population.

Washington has left Libya in ruins and internal conflict. There is no government, but it is not libertarian nirvana.

The incessant illegal drone attacks on Pakistani civilians is radicalizing elements of Pakistan and provoking civil war against the Pakistani government, which is owned by Washington and permits Washington’s murder of its citizens in exchange for Washington’s money payments to the political elites who have sold out their country to Washington.

Washington has destabilized Syria and destroyed the peace that the Assad family had imposed on the Islamic sects. Syria seems fated to be reduced to ruins and permanent violence like Libya and Iraq.

Washington is at work killing people in Yemen.

As the video released to WikiLeaks by Bradley Manning shows, some US troops don’t care who they kill–journalists and civilians walking peacefully along a street, a father and his children who stop to help the wounded. As long as someone is killed, it doesn’t matter who.
 
Killing is winning.

The US invaded Somalia, has its French puppets militarily involved in Mali, and perhaps has Sudan in its crosshairs for drones and missiles.

Iran and Lebanon are designated as the next victims of Washington’s aggression.

Washington protects Israeli aggression against the West Bank, Gaza, and Lebanon from UN censure and from embargoes. Washington has arrested and imprisoned people who have sent aid to the Palestinian children. Gaza, declares Washington which regards itself as the only fount of truth, is ruled by Hamas, a terrorist organization according to Washington. Thus any aid to Gaza is aid to terrorism. Aide to starving and ill Palestinian children is support of terrorism. This is the logic of an inhumane war criminal state.

What is this aggression against Muslims about?

The Soviet Union collapsed and Washington needed a new enemy to keep the US military/security complex in power and profits. The neoconservatives, who totally dominated the Bush regime and might yet dominate the Obama regime declared Muslims in the Middle East to be the enemy. Against this make-believe “enemy,” the US launched wars of aggression that are war crimes under the US imposed Nuremberg standard that was applied to the defeated WWII Germans.

Although the British and French started World War II by declaring war on Germany, it was Germans, defeated by the Red Army, who were tried by Washington as war criminals for starting a war. A number of serious historians have reached the conclusion that America’s war crimes, with the fire-bombings of the civilian populations of Dresden and Tokyo and the gratuitous nuclear attacks on the civilian populations of Hiroshima and Nagasaki, are of the same cloth as the war crimes of Hitler and the Japanese.

The difference is that the winners paint the defeated in the blackest tones and themselves in high moral tones. Honest historians know that there is not much difference between US WWII war crimes and those of the Japanese and Germans. But the US was on the winning side.

By its gratuitous murder of Muslims in seven or eight countries, Washington has ignited a Muslim response: bitter hatred of the United States. This response is termed “terrorism” by Washington and the war against terrorism serves as a source of endless profits for the military complex and for a police state to “protect” Americans from terrorism, but not from the terrorism of their own government.

The bulk of the American population is too misinformed to catch on, and the few who do
understand and are attempting to warn others will be silenced. The 21st century will be one of the worst centuries in human history. All over the Western world, liberty is dying.

The legacy of “the war on terror” is the death of liberty.