Paul Craig Roberts: "The extraordinary propaganda being conducted against Russia by the US and UK governments and Ministries of Propaganda, a.k.a., the “Western media,” have the purpose of driving the world to war that no one can win." "In contrast, Russia has emerged from tyranny and from a government based on lies..."

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War Is Coming — Paul Craig Roberts

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July 28, 2014 | Original Here                                              Go here to sign up to receive email notice of this news letter

War Is Coming

Paul Craig Roberts

The extraordinary propaganda being conducted against Russia by the US and UK governments and Ministries of Propaganda, a.k.a., the “Western media,” have the purpose of driving the world to war that no one can win. European governments need to rouse themselves from insouciance, because Europe will be the first to be vaporized due to the US missile bases that Europe hosts to guarantee its “security.”

As reported by Tyler Durden of Zero Hedge, the Russian response to the extra-legal ruling of a corrupt court in the Netherlands, which had no jurisdiction over the case on which it ruled, awarding $50 billion dollars from the Russian government to shareholders of Yukos, a corrupt entity that was looting Russia and evading taxes, is telling. Asked what Russia would do about the ruling, an advisor to President Putin replied, “There is a war coming in Europe.” Do you really think this ruling matters?”

The West has ganged up on Russia, because the West is totally corrupt. The wealth of the elites is based not only on looting weaker countries whose leaders can be purchased (read John Perkins’ Confessions of an Economic Hit Man for instruction on how the looting works), but also on looting their own citizens. The American elites excel at looting their fellow citizens and have wiped out most of the US middle class in the new 21st century.

In contrast, Russia has emerged from tyranny and from a government based on lies, while the US and UK submerge into tyranny shielded by lies. Western elites desire to loot Russia, a juicy prize, and there stands Putin in the way. The solution is to get rid of him like they got rid of President Yanukovich in Ukraine.

The looting elites and the neoconservative hegemonists have the same goal: make Russia a vassal state. This goal unites the Western financial imperialists with the political imperialists.

I have recorded for readers the propaganda that is used in order to demonize Putin and Russia. But even I was stunned by the astounding and vicious lies in the UK publication The Economist on July 26. The cover is Putin’s face in a spider web, and, you guessed it, the cover story is “A Web of Lies.” http://www.economist.com/news/leaders/21608645-vladimir-putins-epic-deceits-have-grave-consequences-his-people-and-outside-world-web?spc=scode&spv=xm&ah=9d7f7ab945510a56fa6d37c30b6f1709

You need to read this propaganda both in order to see the gutter level of propaganda in the West and the obvious drive to war with Russia. There is no evidence whatsoever in the story to support The Economist’s wild accusations and demand for the end of Western “appeasement” of Russia and the harshest possible action against Putin.

The kind of reckless lies and transparent propaganda that comprises The Economist’s story has no other purpose than to drive the world to war.

The Western elites and governments are not merely totally corrupt, they are insane. As I have previously written, don’t expect to live much longer. In this video one of Putin’s advisors and Russian journalists speak openly of US plans for a first strike on Russia:
http://financearmageddon.blogspot.co.uk/2014/07/official-warning-u-s-to-hit-russia-with.html

Blogger's Note: I provide below the video linked to just above. Everyone should play this video!

"American taxpayers have built an entire city in Virginia so that the Pentagon can practice occupying American cities and putting down protests by US citizens." "Lecturers in the training courses describe constitutionalists as 'domestic extremists'." "Does this make the President of the United States, whose oath of office is to defend the US Constitution against enemies domestic and foreign, a domestic extremist? Is the fear of arrest by Homeland Security as a domestic extremist the reason Obama refuses to defend the Constitution of the United States?" -- Paul Craig Roberts

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» Amerikan Stasi Police State Staring Us In The Face — Paul Craig Roberts

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February 18, 2014 | Original Here                                              Go here to sign up to receive email notice of this news letter

Amerikan Stasi Police State Staring Us In The Face

American sheeple stick heads in the sand, pretend to be ostriches

Paul Craig Roberts

Note: The Lorde story is likely a hoax, but it nevertheless captures the truth of the situation.


American taxpayers have built an entire city in Virginia so that the Pentagon can practice occupying American cities and putting down protests by US citizens. http://www.prisonplanet.com/u-s-army-builds-fake-city-in-virginia-to-practice-military-occupation.html This fake city is the training ground for the doctrine outlined in a leaked US Army document http://info.publicintelligence.net/USAMPS-CivilDisturbanceOps.pdf that describes how soldiers are to be trained to put down domestic disturbances and process prisoners through detainment camps where prisoners will be re-educated to appreciate US policies. In situations of “extreme necessity” the training embraces deadly force: “Warning shot will not be fired. When a firearm is discharged it will be fired with the intent of rendering the person(s) at whom it is discharged incapable of continuing that activity or course of behavior.” Lecturers in the training courses describe constitutionalists as “domestic extremists.”

Does this make the President of the United States, whose oath of office is to defend the US Constitution against enemies domestic and foreign, a domestic extremist? Is the fear of arrest by Homeland Security as a domestic extremist the reason Obama refuses to defend the Constitution of the United States?

The Army is being trained for domestic police duties that are in violation of the Posse Comitatus Act that prevents the use of the military for domestic law enforcement, another indication that Washington has no respect for the country’s laws and that Obama and his “Justice” Department have no intention of enforcing the laws of the land or abiding by the Constitution.

Where is the media outcry? Where are the law schools? Where is Congress? A government that disregards the laws of the land is both treasonous and tyrannical. Yet, not a peep from “the free and the brave.”

The US government and its puppet auxiliary, the UK government, have turned with vengeance against whistleblowers and their attorneys. Bradley Manning is in prison, Julian Assange is confined to the Ecuadoran Embassy in London, and Edward Snowden is under Russian protection from a tyrannical US government. Jessellyn Radack, an attorney who represented Snowden was recently detained and questioned in an intimidating way at London’s Heathrow Airport. http://rt.com/news/snowden-lawyer-heathrow-airport-346/ Washington has taught its British puppet state how to mimic Washington’s Gestapo ways.

The latest revelations of the criminal activities of the Amerikan National Stasi Agency
comes from a leaked NSA document that shows that the Stasi agency considers WikiLeaks Julian Assange to be a “malicious foreign actor” and launched “an international effort to focus the legal element of national power upon non-state actor Assange, and the human network that supports WikiLeaks.” Clearly, the Gestapo is upon us.

RT reports: “The NSA was not alone in its sweeping espionage on the whistle-blowing organization. It also enlisted its partners in the Five Eyes spying network (UK, New Zealand, Australia and Canada) as well as other nations. In documents dating back from August 2010, the US urged 10 other countries with forces in Afghanistan to consider pressing criminal charges against Julian Assange -- ‘founder of the rogue WikiLeaks internet website and responsible for the unauthorized publication of over 70,000 classified documents covering the war in Afghanistan.’” http://rt.com/news/wikileaks-assange-calls-prosecutor-526/

In other words, freedom of the press? We don’t need no stinking freedom of the press. We have the presstitute press--the TV networks, the New York Times, Washington Post, National Public Radio, and all the rest of the officially sanctioned state Ministry of Propaganda.

Julian Assange stated, correctly, “The NSA and its UK accomplices show no respect for the rule of law.”

WikiLeaks’ attorney, Judge Baltasar Garzon, the pursuer of Pinochet, had this to say:
“The paradox is that Julian Assange and the WikiLeaks organization are being treated as a threat instead of what they are: a journalist and a media organization that are exercising their fundamental right to receive and impart information in its original form, free from omission and censorship, free from partisan interests, free from economic or political pressure.”

What has happened that explains the transformation of the UK and all of its former English colonies--the US, Canada, Australia, New Zealand--into Gestapo Stasi states? These are the countries best known historically for their domestic civil liberties and rule of law, irrespective of their treatment of their indigenous populations and in the case of England her non-white colonies. The original dispossession was of indigenous peoples. Now these governments have turned on their own.Today the governments of the US, UK, Canada, Australia, and New Zealand (the Five Eyes) see civil liberty and the accountability of government to law as threats to themselves, and the governments are determined to stamp out the threats. The historical lands of liberty have abandoned liberty and become Stasi states.

What has occurred in the US and UK is that the criminal and treasonous acts of both governments have become so extreme that the governments must destroy civil liberty in order to protect themselves from exposure. Whenever you hear “national security” invoked, you know that government is covering up its crimes and its lies.

The criminal character of both US and UK governments is now recognized by the rest of the world, even by the bought-and-paid-for NATO puppet states, France and Germany. German Chancellor Angela Merkel and French President Francois Hollande are discussing the creation of an European communication network in order to protect Europeans’ communications from the NSA and from Google, Facebook, and other US communication companies that shamelessly cooperate with NSA’s spy network as junior members of the Stasi. Brazil and South America are facing the same challenge of protecting their communications from Washington’s National Stasi Agency.

NSA spies on foreign companies for the benefit of American ones, and it spies on US law firms representing clients against the US government. The New York Times recently reported that the corrupt Australian puppet state has been working with NSA to steal the private communications of US lawyers with their clients in the Indonesian government involved in a trade dispute with Washington.” http://on.rt.com/vw8d8v In other words, NSA spying helps the US government to prevail in economic lawsuits against it, but the spying is justified in the name of the nonexistent “terrorist threat.” The terrorist is NSA.

And you thought Washington was only spying on “terrorists” to prevent them from “killing us over here.”

It is impossible to paint a picture of a more lawless government than Washington has
painted of itself.

If it is not a hoax, it took a pop singer, Lorde, to declare in her Grammy Award acceptance speech last month that the emperor has no clothes: “Planet Earth is run by psychopaths that hide behind slick marketing, ‘freedom’ propaganda and ‘economic growth’ rhetoric, while they construct a global system of corporatized totalitarianism. As American journalist Chris Hedges has identified, a corporate totalitarian core thrives inside a fictitious democratic shell. This core yields an ‘inverted’ totalitarian state that few recognize because it does not look like the Orwellian world of Nineteen Eighty-four.This corporate totalitarian core is spreading outward from America. Planet Earth is being rapidly militarized by the world’s major and significant states, including their police forces. Meanwhile, state surveillance is becoming universal and torture is outsourced to gulags.” http://snoopman.wordpress.com/2014/02/06/lordes-suppressed-grammy-award-acceptance-speech-full-transcript-26-january-2014/ The TV channels censored her speech and cut it off by substituting pre-recorded content. http://snoopman.wordpress.com/2014/02/06/clipping-queen-bees-wings-lordes-real-grammy-speech-suppressed/ See also
http://snoopman.wordpress.com/author/snoopman/ and http://snoopman.wordpress.com/2014/02/15/royal-pencil-in-print-lordes-suppressed-grammy-speech-makes-front-page-news-in-far-flung-new-zealand/

This is a very large production for a hoax. An amazing amount of creativity and production effort went into it. Increasingly, our reality is composed of invented news, whether from the government or the Internet.

By cutting off Lorde’s speech, the media moguls are shown proving the truth of her words. Americans must not hear. The dolts might wake up.

Americans should take note that in fact the media is on guard, prepared at an instance’s notice to suppress free speech. Washington is ever so pleased to support protesters in Ukraine, who are witlessly helping Washington to subvert their country, but no protests at home thank you.

If the Lorde story is a hoax, it nevertheless captures the truth of the situation. And in more ways than one. As one reader put it, "the content of that non-speech may be truthful, but, you see, that is what 'they' do -  conflate truth, fiction & satire all into one ball of wax so we look like fools and no longer know what to believe."

With the Pentagon building fake cities for soldiers to demolish while practicing the unconstitutional occupation practices that are in store for us in the homeland, Alex Jones’ predictions move out of the realm of conspiracy theory. Washington has finally noticed that the result of moving middle class jobs offshore is an American population without a future. As Gerald Celente says, when people have nothing left to lose, they lose it. The US military is gearing up for when Americans can’t take it any more.

Meanwhile Washington continues the pretense of America as the land of “freedom and democracy” and “concern for human rights,” blah-blah-blah. People all over the world, with the exception of the paid protesters in western Ukraine, are no longer listening to the bullshit flowing from Washington and its presstitute media.

Note: This from a reader in Germany: "Last year the Green Party complained about Germany's own training field and city.  It's near Magdeburg and, as of last year, they were planning to add a subway station and expect to have 500 buildings built by 2017, including high rises, poor neighborhoods and industrial districts.Its official name is Gefechtsübungszentrum, GÜZ, or Combat Training Center. It's located on 232 square kilometers of practice grounds (30 km long by 12 km wide) and cost 100,000,000 Euros!  or $40,000,000 more than the U.S. version."

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Abby Martin (arguably the best TV newscaster in the world on subjects the mainstream media never tells us but we dearly need to know) interviews George Galloway (described by Paul Craig Roberts as "the only real leader in the entire Western World") on the horrors soon to unfold in Syria and the Middle East and how they will affect us. Don't miss this!

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http://youtu.be/I6qMCb14K3s
George Galloway: US in Bed w/ al-Qaeda & Christian Leaders Overseeing Destruction of Christian Sites

Published on Sep 6, 2013

Abby Martin speaks with UK Parliament Member, George Galloway, about Syria war propaganda and his upcoming film 'The Killing of Tony Blair'.

LIKE Breaking the Set @ http://fb.me/BreakingTheSet
FOLLOW Abby Martin @ http://twitter.com/AbbyMartin

Edward Snowden and Julian Assange have been in the news, but if you have relied on the "mainstream media" for the latest you certainly would not have heard things this way.

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   MONDAY, JUNE 24, 2013

Where is Edward Snowden? Glenn Greenwald on Asylum Request, Espionage Charge; More Leaks to Come
Original Here

"Back Off": Assange Attorney Michael Ratner Urges U.K., U.S. to Respect Asylum Decision, Int’l Law
Original 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?

Hear it from a thinking Republican: "Those concerned about 'The New World Order' speak as if the United States is coming under the control of an outside conspiratorial force. In fact, it is the US that is the New World Order. "Washington has demonstrated that it has no respect for its own laws and Constitution, much less any respect for international law and the law and sovereignty of other countries."

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Attack On Sovereignty — Paul Craig Roberts

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January 15, 2013 | Original Here

Those concerned about “The New World Order” speak as if the United States is coming under the control of an outside conspiratorial force. In fact, it is the US that is the New World Order. That is what the American unipolar world, about which China, Russia, and Iran complain, is all about.
Washington has demonstrated that it has no respect for its own laws and Constitution, much less any respect for international law and the law and sovereignty of other countries. All that counts is Washington’s will as the pursuit of hegemony moves Washington closer to becoming a world dictator.
 
The examples are so numerous someone should compile them into a book. During the Reagan administration the long established bank secrecy laws of Switzerland had to bend to Washington’s will. The Clinton administration attacked Serbia, murdered civilians and sent Serbia’s president to be tried as a war criminal for defending his country. The US government engages in widespread spying on Europeans’ emails and telephone calls that is unrelated to terrorism. Julian Assange is confined to the Ecuadoran embassy in London, because Washington won’t permit the British government to honor his grant of political asylum. Washington refuses to comply with a writ of habeas corpus from a British count to turn over Yunus Rahmatullah whose detention a British Court of Appeals has ruled to be unlawful. Washington imposes sanctions on other countries and enforces them by cutting sovereign nations that do not comply out of the international payments system.
 
Last week the Obama regime warned the British government that it was a violation of US interests for the UK to pull out of the European Union or reduce its ties to the EU in any way.
 
In other words, the sovereignty of Great Britain is not a choice to be made by the British government or people. The decision is made by Washington in keeping with Washington’s interest.
 
The British are so accustomed to being Washington’s colony that deputy prime minister Nick Clegg and a group of UK business executives quickly lined up with Washington.
 
This leaves Great Britain in a quandary. The British economy, once a manufacturing powerhouse, has been reduced to the City of London, Britain’s equivalent to Wall Street. London, like New York, is a world financial center of which there are none in Europe. Without its financial status, there wouldn’t be much left of the UK.
 
It is because of the City’s financial importance that the UK, alone of the EU member states, kept the British pound as its currency and did not join the euro. Because the UK has its own currency and central bank, the UK was spared the sovereign debt crisis that has plagued other EU member states. The Bank of England, like the Federal Reserve in the US, was able to bail out its own banks, whereas other EU states sharing a common currency could not create money, and the European Central Bank is prohibited by its charter (at Germany’s insistence) from bailing out member states.
 
The quandary for the UK is that the solution to the sovereign debt crisis toward which the EU is moving is to strip the member governments of their fiscal sovereignty. For the individual countries, the spending, taxing and, thereby, deficit or surplus positions of the member countries’ budgets will be set by EU central authority. This would mean the end of national sovereignty for European countries.
 
For Britain to remain an EU member while retaining its own currency and central bank would mean special status for Great Britain. The UK would be the only member of the EU that remained a sovereign country. What are the chances that the UK will be permitted such exceptional status? Is this acceptable to Germany and France?
 
If the British are to fold themselves into Europe, they will have to give up their currency, central bank, their law, and their economic status as a world financial center and accept governance by the EU bureaucracy. The British will have to give up being somebody and become nobody.
It would, however, free the UK from being Washington’s puppet unless the EU itself is Washington’s puppet.
 
According to reports, sometime this year Scotland, a constituent part of the UK, is to vote on leaving the UK and becoming an independent country. How ironic that as the UK debates its dismemberment the country itself faces being merged into a multi-national state.

Ecuador President Rafael “We Are Not A Colony” Correa Stands Up To The Jackbooted British Gestapo

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August 16, 2012  |  Original here

A coward dies many deaths; a brave man dies but once.

The once proud British government, now reduced to Washington’s servile whore, put on its Gestapo Jackboots and declared that if the Ecuadorean Embassy in London did not hand over WikiLeaks’ Julian Assange, British storm troopers would invade the embassy with military force and drag Assange out. Ecuador stood its ground. “We want to be very clear, we are not a British colony,” declared Ecuador’s Foreign Minister. Far from being intimidated the President of Ecuador, Rafael Correa, replied to the threat by granting Assange political asylum. http://www.nytimes.com/2012/08/17/world/americas/ecuador-to-let-assange-stay-in-its-embassy.html?pagewanted=2&_r=1&emc=na

The once law-abiding British government had no shame in announcing that it would violate the Vienna Convention and assault the Ecuadorean Embassy, just as the Islamic students in the 1979 Khomeini Revolution in Iran took over the US Embassy and held the diplomatic staff captive. Pushed by their Washington overlords, the Brits have resorted to the tactics of a pariah state. Maybe we should be worried about British nuclear weapons.

Let’s be clear, Assange is not a fugitive from justice. He has not been charged with any crime in any country. He has not raped any women. There are no indictments pending in any court, and as no charges have been brought against him, there is no validity to the Swedish extradition request. It is not normal for people to be extradited for questioning, especially when, as in Assange’s case, he expressed his complete cooperation with being questioned a second time by Swedish officials in London.

What is this all about? First, according to news reports, Assange was picked up by two celebrity-hunting Swedish women who took him home to their beds. Later for reasons unknown, one complained that he had not used a condom, and the other complained that she had offered one helping, but he had taken two. A Swedish prosecutor looked into the case, found that there was nothing to it, and dismissed the case.

Assange left for England. Then another Swedish prosecutor, a woman, claiming what authority I do not know, reopened the case and issued an extradition order for Assange. This is such an unusual procedure that it worked its way through the entire British court system to the Supreme Court and then back to the Supreme Court on appeal. In the end British “justice” did what the Washington overlord ordered and came down on the side of the strange extradition request.

Assange, realizing that the Swedish government was going to turn him over to Washington to be held in indefinite detention, tortured, and framed as a spy, sought protection from the Ecuadorean Embassy in London. As corrupt as the British are, the UK government was unwilling to release Assange directly to Washington. By turning him over to Sweden, the British could feel that their hands were clean.

Sweden, formerly an honorable country like Canada once was where American war resisters could seek asylum, has been suborned and brought under Washington’s thumb. Recently, Swedish diplomats were expelled from Belarus where they seem to have been involved in helping Washington orchestrate a “color revolution” as Washington keeps attempting to extend its bases and puppet states deeper into traditional Russia.

The entire world, including Washington’s servile puppet states, understands that once Assange is in Swedish hands, Washington will deliver an extradition order, with which Sweden, unlike the British, would comply. Regardless, Ecuador understands this. The Foreign Minister Ricardo Patino announced that Ecuador granted Assange asylum because “there are indications to presume that there could be political persecution.” In the US, Patino acknowledged, Assange would not get a fair trial and could face the death penalty in a trumped up case.

The US Puppet State of Great (sic) Britain announced that Assange would not be permitted to leave Britain. So much for the British government’s defense of law and human rights. If the British do not invade the Ecuadorean Embassy and drag Assange out dead or in chains, the British position is that Assange will live out his life inside the London Embassy of Ecuador. According to the New York Times, Assange’s asylum leaves him “with protection from arrest only on Ecuadorean territory (which includes the embassy). To leave the embassy for Ecuador, he would need cooperation that Britain has said it will not offer.” When it comes to Washington’s money or behaving honorably in accordance with international law, the British government comes down on the side of money.

The Anglo-American world, which pretends to be the moral face of humanity has now revealed for all to see that under the mask is the face of the Gestapo.

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A FORMER ASSISTANT SECRETARY OF THE TREASURY FOR ECONOMIC POLICY AND A FORMER MANAGING DIRECTOR OF GOLDMAN SACHS JOINTLY PERCEIVE A "DEEPER, DARKER" REASON FOR THE BIG BANKS TO HAVE MANIPULATED THE INTERBANK BORROWING RATE (LIBOR) DOWNWARD.

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The Real Libor Scandal ~Paul Craig Roberts and Nomi Prins

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July 14, 2012 | Original here

According to news reports, UK banks fixed the London interbank borrowing rate (Libor) with the complicity of the Bank of England (UK central bank) at a low rate in order to obtain a cheap borrowing cost. The way this scandal is playing out is that the banks benefitted from borrowing at these low rates. Whereas this is true, it also strikes us as simplistic and as a diversion from the deeper, darker scandal.

Banks are not the only beneficiaries of lower Libor rates. Debtors (and investors) whose floating or variable rate loans are pegged in some way to Libor also benefit. One could argue that by fixing the rate low, the banks were cheating themselves out of interest income, because the effect of the low Libor rate is to lower the interest rate on customer loans, such as variable rate mortgages that banks possess in their portfolios. But the banks did not fix the Libor rate with their customers in mind. Instead, the fixed Libor rate enabled them to improve their balance sheets, as well as help to perpetuate the regime of low interest rates. The last thing the banks want is a rise in interest rates that would drive down the values of their holdings and reveal large losses masked by rigged interest rates.

Indicative of greater deceit and a larger scandal than simply borrowing from one another at lower rates, banks gained far more from the rise in the prices, or higher evaluations of floating rate financial instruments (such as CDOs), that resulted from lower Libor rates. As prices of debt instruments all tend to move in the same direction, and in the opposite direction from interest rates (low interest rates mean high bond prices, and vice versa), the effect of lower Libor rates is to prop up the prices of bonds, asset-backed financial instruments, and other “securities.” The end result is that the banks’ balance sheets look healthier than they really are.

On the losing side of the scandal are purchasers of interest rate swaps, savers who receive less interest on their accounts, and ultimately all bond holders when the bond bubble pops and prices collapse.

We think we can conclude that Libor rates were manipulated lower as a means to bolster the prices of bonds and asset-backed securities. In the UK, as in the US, the interest rate on government bonds is less than the rate of inflation. The UK inflation rate is about 2.8%, and the interest rate on 20-year government bonds is 2.5%. Also, in the UK, as in the US, the government debt to GDP ratio is rising. Currently the ratio in the UK is about double its average during the 1980-2011 period.

The question is, why do investors purchase long term bonds, which pay less than the rate of inflation, from governments whose debt is rising as a share of GDP? One might think that investors would understand that they are losing money and sell the bonds, thus lowering their price and raising the interest rate.

Why isn’t this happening?

PCR’s June 5 column, “Collapse at Hand,” explained that despite the negative interest rate, investors were making capital gains from their Treasury bond holdings, because the prices were rising as interest rates were pushed lower.

What was pushing the interest rates lower?

The answer is even clearer now. First, as PCR noted, Wall Street has been selling huge amounts of interest rate swaps, essentially a way of shorting interest rates and driving them down. Thus, causing bond prices to rise.

Secondly, fixing Libor at lower rates has the same effect. Lower UK interest rates on government bonds drive up their prices.

In other words, we would argue that the bailed-out banks in the US and UK are returning the favor that they received from the bailouts and from the Fed and Bank of England’s low rate policy by rigging government bond prices, thus propping up a government bond market that would otherwise, one would think, be driven down by the abundance of new debt and monetization of this debt, or some part of it.

How long can the government bond bubble be sustained? How negative can interest rates be driven?

Can a declining economy offset the impact on inflation of debt creation and its monetization, with the result that inflation falls to zero, thus making the low interest rates on government bonds positive?

According to his public statements, zero inflation is not the goal of the Federal Reserve chairman. He believes that some inflation is a spur to economic growth, and he has said that his target is 2% inflation. At current bond prices, that means a continuation of negative interest rates.

The latest news completes the picture of banks and central banks manipulating interest rates in order to prop up the prices of bonds and other debt instruments. We have learned that the Fed has been aware of Libor manipulation (and thus apparently supportive of it) since 2008. Thus, the circle of complicity is closed. The motives of the Fed, Bank of England, US and UK banks are aligned, their policies mutually reinforcing and beneficial. The Libor fixing is another indication of this collusion.

Unless bond prices can continue to rise as new debt is issued, the era of rigged bond prices might be drawing to an end. It would seem to be only a matter of time before the bond bubble bursts.

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Nomi Prins is author of It Takes A Pillage and a former managing director of Goldman Sachs.

MATT TAIBBI FREAKS OUT OVER THE LIBOR BANKING SCANDAL

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Matt Taibbi at Skylight Studio in New York, 10/27/10. (photo: Neilson Barnard/Getty Images)

Why Is Nobody Freaking Out About the LIBOR Banking Scandal?

By Matt Taibbi, Rolling Stone

05 July 2012

he LIBOR manipulation story has exploded into a major scandal overseas. The CEO of Barclays, Bob Diamond, has resigned in disgrace; his was the first of what will undoubtedly be many major banks to walk the regulatory plank for fixing the interbank exchange rate. The Labor party is demanding a sweeping criminal investigation. Mervyn King, Governor of the Bank of England, responded the way a real public official should (i.e. not like Ben Bernanke), blasting the banks:

It is time to do something about the banking system…Many people in the banking industry are hardworking and feel badly let down by some of their colleagues and leaders. It goes to the culture and the structure of banks: the excessive compensation, the shoddy treatment of customers, the deceitful manipulation of a key interest rate, and today, news of yet another mis-selling scandal.

The furor is over revelations that Barclays, the Royal Bank of Scotland, and other banks were monkeying with at least $10 trillion in loans (The Wall Street Journal is calculating that that LIBOR affects $800 trillion worth of contracts).

The banks gamed LIBOR for two semi-overlapping reasons. As noted here last week, there were instances of Barclays traders badgering the LIBOR submitters to "push down" rates in order to fatten their immediate bottom lines, depending on what they were trading or holding that day. They also apparently rigged LIBOR downward in order to produce a general appearance of better health, essentially tweaking their credit scores a few ticks upward.

Most intriguingly, or perhaps disturbingly, there were revelations last week that Bank of England deputy Governor Paul Tucker had a conversation with Diamond at the peak of the crisis in 2008. The conversation reportedly left Diamond, and subsequently his traders, with the impression that the bank had carte blanche to rig LIBOR downward in order to help allay spiraling public fears about the banks’ poor financial health.

British officials, and Tucker individually, deny that Tucker gave Diamond permission to rig rates. But a report by British regulators did conclude that the two were talking about Barclays LIBOR submissions on October 29, 2008, and that as a result of that conversation, Diamond came away with a “misunderstanding.” The Daily Mail quotes the Financial Services Authority report:

However, as the substance of the telephone conversation was relayed down the chain of command at Barclays, a misunderstanding or miscommunication occurred.

This meant that Barclays’ submitters believed mistakenly that they were operating under an instruction from the Bank of England (as conveyed by senior management) to reduce Barclays’ Libor submissions.

That is explosive stuff. Members of Parliament will be grilling Tucker tomorrow about those events in what is sure to be a far more combative and entertaining legislative inquiry than the Jamie Dimon dog-and-pony show we just went through here in the states in recent weeks.

The implications of that part of the story should be particularly chilling to Americans, who in recent years have been party to a number of revelations about strange and seemingly inappropriate contacts between senior regulatory officials and big bankers during the heat of the crisis.

We know that American officials in 2008-2009 were extremely concerned about the appearance of weakness in the financial markets, so much so that they may have resisted pursuing criminal prosecutions against big banks, and we also know that they spent a lot of time commiserating with Wall Street figures before and during the crisis.

If Bob Diamond and Paul Tucker were having these talks about LIBOR, is it fair to wonder what else Hank Paulson and Lloyd Blankfein were talking about in the 24 discussions they had in the six days following the AIG disaster? When Paulson had a secret meeting with the entire board of Goldman Sachs in, of all places, his hotel suite in Moscow, in June of 2008? Or what other material nonpublic information was exchanged when Paulson met with a gang of hedge fund chiefs at the offices of Eton Park management in July 2008, and laid out for them a possible scenario for putting Fannie and Freddie into receivership?

Anyway, the LIBOR story is leading the front pages of most of Britain’s dailies, it’s on TV, and it’s producing blistering editorials and howls of outrage amongst politicians and activists. But as compadre Yves Smith at Naked Capitalism put it, where’s the outrage here in America?

The big story on our shores in the last few weeks has been the health care ruling, which makes sense, but then after that… what? The heat? Tom and Katie? (There’s actually a story about how Katie can wear heels again, now that she’s not married to a short person). Joe Sandusky? Nightline’s big story tonight, which is already being hyped on the net, is about how fat Chris Christie is and why the hell he hasn’t done the bypass surgery yet:

New Jersey Gov. Chris Christie opened up about his weight problem in an interview with ABC News and stressed he is "trying" to lose weight, a battle he's waged for 30 years, but said he's never considered gastric bypass surgery because it's "too risky."

"I mean, see, listen, I think there's a fundamental misunderstanding among people regarding weight and regarding all those things that go into, to people being overweight," Christie said in an interview that will air Tuesday on "Nightline."

Glad to be informed! The New York Times, meanwhile, did chime in with a house editorial yesterday, and it was appropriately somber. And there has been some coverage in the financial press.

But to me what’s missing from all of this is the “Holy Fucking Shit!” factor. This story is so outrageous that it shocks even the most cynical Wall Street observers. I have a friend who works on Wall Street who for years has been trolling through the stream of financial corruption stories with bemusement, darkly enjoying the spectacle as though the whole post-crisis news arc has been like one long, beautifully-acted, intensely believable sequel to Goodfellas. But even he is just stunned to the point of near-speechlessness by the LIBOR thing. “It’s like finding out that the whole world is on quicksand,” he says.

So as far as the stateside press goes, I’ve got to assume the cavalry is coming soon. But when?

THE LIBOR SCANDLE "IS THE LARGEST RIGGING OF PRICES IN THE WORLD BY MANY ORDERS OF MAGNITUDE" -- ECONOMIST AND CRIMINOLGIST, BILL BLACK

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UK to launch inquiry into banking scandal 

http://youtu.be/R0PkXPRUvP0  

Published on Jul 2, 2012 by AlJazeera

English Prosecutors in Britain are considering filing criminal charges against Barclays Bank. The UK lender is at the centre of a market manipulation scandal that could involve more than a dozen international banks. While much of the fallout has been confined to Britain - it's likely to spread overseas because Barclays manipulated a key interest rate known as libor - which is used to determine the value of financial products ranging from credit cards to ordinary loans. Al Jazeera's Laurence Lee reports from London. 

How Barclays manipulated the libor rates 

http://youtu.be/ZC_la9ar93w

Published on Jul 2, 2012 by AlJazeeraEnglish 

The Barclays Bank scandal centres around a key interest rate known as Libor. Al Jazeera's Dominic Kane reports on exactly what that is. We also speak to Bill Black, a former US banking regulator for more clarity on how this multi-million dollar fraud was perpetrated.