Why is it that I've spent my adult life believing that the purpose of the IMF has been to help indebted countries out of debt? Whereas its true purpose has been to force those countries to privatize their profit-making sectors, allowing them to be bought off by speculators and global corporations, while forcing the government to cut old-age pensions, government services, government employment, and subsidies to the rest of the populace in order to pay back the IMF for the money that they promised but never really deliver, because the Western banks are given the money (something you surely won't learn from the presstitute "mainstream" media).

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Western Looting Of Ukraine Has Begun — Paul Craig Roberts

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March 29, 2014 | Original Here                                              Go here to sign up to receive email notice of this news letter

Western Looting Of Ukraine Has Begun

Paul Craig Roberts

It is now apparent that the “Maiden protests” in Kiev were in actuality a Washington organized coup against the elected democratic government. The purpose of the coup is to put NATO military bases on Ukraine’s border with Russia and to impose an IMF austerity program that serves as cover for Western financial interests to loot the country. The sincere idealistic protesters who took to the streets without being paid were the gullible dupes of the plot to destroy their country.

Politically Ukraine is an untenable aggregation of Ukrainian and Russian territory, because traditional Russian territories were stuck into the borders of the Ukraine Soviet Republic by Lenin and Khrushchev. The Crimea, stuck into Ukraine by Khrushchev, has already departed and rejoined Russia. Unless some autonomy is granted to them, Russian areas in eastern and southern Ukraine might also depart and return to Russia. If the animosity displayed toward the Russian speaking population by the stooge government in Kiev continues, more defections to Russia are likely.

The Washington-imposed coup faces other possible difficulties from what seems to be a growing conflict between the well-organized Right Sector and the Washington-imposed stooges. If armed conflict between these two groups were to occur, Washington might conclude that it needs to send help to its stooges. The appearance of US/NATO troops in Ukraine would create pressure on Putin to occupy the remaining Russian speaking parts of Ukraine.

Before the political and geographical issues are settled, the Western looting of Ukraine has already begun. The Western media, doesn’t tell any more truth about IMF “rescue packages” than it does about anything else. The media reports, and many Ukrainians believe, that the IMF is going to rescue Ukraine financially by giving the country billions of dollars.

Ukraine will never see one dollar of the IMF money. What the IMF is going to do is to substitute Ukrainian indebtedness to the IMF for Ukrainian indebtedness to Western banks. The IMF will hand over the money to the Western banks, and the Western banks will reduce Ukraine’s indebtedness by the amount of IMF money. Instead of being indebted to the banks, Ukraine will now be indebted to the IMF.

Now the looting can begin. The IMF loan brings new conditions and imposes austerity on the Ukrainian people so that the Ukraine government can gather up the money with which to repay the IMF. The IMF conditions that will be imposed on the struggling Ukraine population will consist of severe reductions in old-age pensions, in government services, in government employment, and in subsidies for basic consumer purchases such as natural gas. Already low living standards will plummet. In addition, Ukrainian public assets and Ukrainian owned private industries will have to be sold off to Western purchasers.

Additionally, Ukraine will have to float its currency. In a futile effort to protect its currency’s value from being driven very low (and consequently import prices very high) by speculators ganging up on the currency and short-selling it, Ukraine will borrow more money with which to support its currency in the foreign exchange market. Of course, the currency speculators will end up with the borrowed money, leaving Ukraine much deeper in debt than currently.

The corruption involved is legendary, so the direct result of the gullible Maiden protesters will be lower Ukrainian living standards, more corruption, loss of sovereignty over the country’s economic policy, and the transfer of Ukrainian public and private property to Western interests.

If Ukraine also falls into NATO’s clutches, Ukraine will also find itself in a military alliance against Russia and find itself targeted by Russian missiles. This will be a tragedy for Ukraine and Russia as Ukrainians have relatives in Russia and Russians have relatives in Ukraine. The two countries have essentially been one for 200 years. To have them torn apart by Western looting and Washington’s drive for world hegemony is a terrible shame and a great crime.

The gullible dupes who participated in the orchestrated Maiden protests will rue it for the rest of their lives.

When the protests began, I described what the consequences would be and said that I
would explain the looting process. It is not necessary for me to do so. Professor Michel Chossudovsky has explained the IMF looting process along with much history here: http://www.globalresearch.ca/regime-change-in-ukraine-and-the-imfs-bitter-economic-medicine/5374877

One final word. Despite unequivocal evidence of one country after another being looted by the West, governments of indebted countries continue to sign up for IMF programs. Why do governments of countries continue to agree to the foreign looting of their populations? The only answer is that they are paid. The corruption that is descending upon Ukraine will make the former regime look honest.

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Banks confess to massive mortgage fraud. Government declines to prosecute either the CEOs or the companies. Too big to jail?

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Original Here

Documents in JPMorgan settlement reveal how every large bank in U.S. has committed mortgage fraud

Bill Black: Justice Dept.'s failure to understand pervasive schemes of fraud in financial industry obstructs meaningful prosecution of banks - November 29, 13

Bio                                                                                                              .

William K. Black, author of THE BEST WAY TO ROB A BANK IS TO OWN ONE, teaches economics and law at the University of Missouri Kansas City (UMKC). He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. He has taught previously at the LBJ School of Public Affairs at the University of Texas at Austin and at Santa Clara University, where he was also the distinguished scholar in residence for insurance law and a visiting scholar at the Markkula Center for Applied Ethics. Black was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and general counsel of the Federal Home Loan Bank of San Francisco, and senior deputy chief counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement. Black developed the concept of "control fraud" frauds in which the CEO or head of state uses the entity as a "weapon." Control frauds cause greater financial losses than all other forms of property crime combined. He recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae's former senior management.

The US mainstream media regularly disparages "conspiracy theorists" as though all crimes are committed by idividuals. Here is proof positive that if you DON'T believe in conspiracy theories you are inviting victimization by all manner of conspirators.

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Three More NYC Contractors Found Guilty in Massive CityTime Scandal to Modernize Payroll System

http://www.democracynow.org/2013/11/27/three_more_nyc_contractors_found_guilty

Three computer consultants were found guilty on Friday of multiple charges for defrauding New York City of millions of dollars in the largest corruption case in city history. Private consultants were found guilty of siphoning tens of millions of dollars in kickbacks from the scandal-ridden $700 million CityTime payroll project. Last year, the project’s main contractor, SAIC, was forced to repay the city $500 million as part of a deferred prosecution agreement. Meanwhile, a top SAIC official is poised to become the next Secretary of the Air Force. The Senate is expected to soon hold a confirmation vote for Deborah Lee James who was in charge of “corporate responsibility” at SAIC at the time of the CityTime scandal. We get an update on the story from Democracy Now! co-host Juan González, who originally broke the story in the New York Daily News.

Paul Craig Roberts is the greatest American truth teller of our times. He sees through today's America like a doctor studying an x-ray. And the cancer he sees is the exact opposite of what most Americans imagine to be "the greatest country in the world." Instead of "liberty and justice for all" today's American government is now a totally corrupt kleptocracy in possession of the power (and the stupidity) to destroy the human race. Obama's determination to attack Syria come hell or high water is just the latest step in that direction. Wake up America!

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Obama Has Decided That It Is Safer To Buy Congress Than To Go It Alone — Paul Craig Roberts

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September 1, 2013 | Original Here                                               Go here to sign up to receive email notice of this news letter

Obama Has Decided That It Is Safer To Buy Congress Than To Go It Alone

Paul Craig Roberts

While still claiming dictatorial powers to start a war on his own authority, Obama put his unilateral attack on Syria on hold when he received a letter from more than 160 members of the House of Representatives reminding him that to take the country to war without congressional approval is an impeachable offense and when he saw that no country that could serve as cover for a war crime, not even the puppet British government and the NATO puppet states, would support America’s announced military aggression against Syria.

Obama got away with attacking Libya without an OK from Congress, because he used Washington’s NATO puppets and not US military forces. That ploy let Obama claim that the US was not directly involved.

Now that the lack of cover and the challenge from Congress has caused the would-be tyrant Obama to put on hold his attack on Syria, what can we expect?

If Obama were intelligent, and clearly anyone who would appoint Susan Rice as his national security adviser is not intelligent, he would simply let the attack on Syria fade into the background and die as Congress returns on September 9 to face the insoluble problems of the budget deficit and debt ceiling.

A competent administration would realize that a government that is unable to pay its bills without heavy use of the printing press is in far too much trouble to be worrying about what is going on in Syria. No competent administration would risk a military strike that could result in a Middle East conflagration and a rise in oil prices, thus worsening the economic situation that Washington faces.

But Obama and his collection of incompetents have demonstrated that they have no competence. The regime is also corrupt, and the entire edifice rests on nothing but lies.

Now that the White House realizes that Obama cannot commit a war crime without cover, here is what we can likely expect. The argument will move away from whether or not Assad used chemical weapons and become an argument that Congress must not undermine US prestige and credibility by failing to support President Obama, the latest front man for American wars of aggression.

The White House will bribe, cajole, and intimidate the Congress. The regime’s argument will be that with America’s prestige and credibility on the line, Congress must support the President. The President and Secretary of State have made unequivocal statements of Assad’s guilt and their determination to punish Assad. Given Washington’s insanity, the way Washington punishes Assad for (allegedly) killing Syrians with chemical weapons is for Washington to kill more Syrians with cruise missiles.

If this doesn’t make sense to you, you don’t belong in Obama’s government or in the American media, and you could never be a neoconservative.

The White House will argue that Obama has compromised with Congress by letting Congress vote on the decision, and that Congress’ part of the compromise is to give its support. Meet us half-way, the White House will say.

The Israel Lobby, Susan Rice, the neocons, and warmongers such as Senators John McCain and Lindsey Graham will argue that lack of support for Obama’s attack on Syria hurts America’s credibility, aids the “terrorists” and “leaves America defenseless.” It is bad enough, they will argue, that Obama has shown indecision by waiting for Congress’ approval and irresolution by substituting a limited strike for the original plan of regime change.

Faced with threats of a cutoff of campaign donation munificence from the Israel Lobby and the military/security complex, the House and Senate can be brought into line to “support the country” as it commits another war crime. The combination of bribes, intimidation, and patriotic appeals to support America’s prestige can swing the Congress. No one really knows if the 160 or so members of the House are sincere about putting Obama on notice, or whether they simply want something. Perhaps they only want Obama to cough up for their approval.

If Congress gives its backing to another American war crime, British Prime Minister David Cameron can go back to Parliament and tell them that Obama “has now brought Congress on board, thus providing cover, and if Parliament doesn’t go along we will be cut out of the money.”

Few British politicians, other than George Galloway, are comfortable with being cut out of the money.

If Cameron brings Parliament around, the other NATO countries might decide to get on the payments bandwagon. The overriding rule of Western civilization is that more money is better than no money.

Washington and its NATO European puppets will criticize Russia and China for using their Security Council vetoes to block the UN from bringing justice, freedom, and democracy to Syria. These faux arguments will be used by the presstitute Western media to undermine the importance of the UN Security Council’s opposition to Washington’s attack on Syria. Why should Washington be deterred by Security Council members who support Assad’s use of chemical weapons, the US media whores will ask. The prostitutes that comprise the US media will do all in their power to ensure that Washington kills yet more Syrians. Killing is America’s hallmark.

As the history of humankind proves, people will do anything for money. Noteworthy exceptions are Edward Snowden, Bradley Manning, and Julian Assange. Were any of these truth-tellers to have gone to Washington and say, “buy me,” in exchange for their silence Washington would have provided large fortunes with which they could live a life of comfort.

Considering how corrupted the US government is and how determined Washington is to have its way, the UN chemical weapons inspectors are at risk. It is unlikely that they will have an accident like SEAL Team Six. But unless they are sequestered like a jury, they are targets for bribery. If the UN report doesn’t support the White House position, the Secretary General will be pressured to make the report inconclusive. After all, Washington writes the checks that keep the UN in business.

No one should expect the US Congress to vote on the basis of the evidence. Moreover, Congress has so far shown no understanding that regardless of whether Assad used chemical weapons, it is a war crime for the US to commit naked aggression against Syria, a country that has not attacked the US. It is not Washington’s business how the Syrian government puts down the effort by al-Nusra extremists to overthrow it.

Obama’s argument that it is OK to kill people with white phosphorus and depleted uranium, as the US and Israel does, but not with sarin gas, has no logic. http://www.washingtonsblog.com/2013/08/the-u-s-and-israel-have-used-chemical-weapons-within-the-last-8-years.html

Washington itself has contingency plans to use nuclear bunker busters against Iran’s underground nuclear energy facilities. If Washington believes that weapons of mass destruction are impermissible, why does Washington have so many of them and contingency plans to use them? Is Washington regretful that Washington dropped two nuclear bombs on civilian Japanese cities at the very time that the Japanese government was doing everything in its power to surrender?

Ever since the dangerous Cold War ended, hot war has been the mainstay of US foreign policy. George H.W. Bush attacked Iraq after Bush’s ambassador gave Saddam Hussein the green light to attack Kuwait. Clinton attacked Serbia on false pretenses and without any constitutional or legal authority. George W. Bush attacked Afghanistan and Iraq on the basis of lies. Obama renewed the attack on Afghanistan and has attacked also Yemen, Pakistan, and Somalia. Obama sent his NATO puppets to attack Libya, sent mercenaries into Syria, and now intends to prevent his mercenaries’ defeat by attacking Syria.

Washington is building a string of military bases around both Russia and China. These bases are extremely provocative and foretell nuclear war.

The US, a country with a vast nuclear weapons arsenal, whose political leaders are both corrupt and insane, is a great danger to life on earth. That Washington is the number one danger to the world is now universally recognized, except by Americans who wear their patriotism on their sleeve. These gullible dupes are the enablers of the demise of humanity by war.

Until the US economy collapses, Washington still has printed money, and it can buy acquiescence to its crimes. Washington can rely on the presstitute media to tell its lies as if they were facts. The world will not be safe until the American house of cards collapses.

I feel sorry for those uninformed Americans who think that they live in the best country in the world. Too few Americans care that their government has destroyed countless lives from Central America and Vietnam to the Middle East and Africa. The US military routinely murders civilians in Afghanistan, Pakistan, Yemen, Somalia, and is responsible for as many as 1,000,000 Iraqi deaths and 4,000,000 displaced Iraqis. The American definition of “the best country in the world” is the country that can murder the most innocent people, people who have never attacked America, people who once looked upon America as the hope of the world and now see a deadly threat.

Too many Americans have no idea that one-fifth of their fellow citizens are dependent on government support, or if they do know, they blame the unfortunate for being leeches on the taxpayers’ purse. In the US wages and employment opportunities are declining. There are no impediments to the looting of citizens by financial institutions. There are no constraints on the lawlessness and brutality of the police, and no limit to the lies that keep the American population entrapped in the Matrix unaware of reality.

How such a people can retain liberty or restrain a government committed to war strains the imagination.

Those Republicans who worry about our children’s and grandchildren’s debt burdens are worried about a future that might never come about. Washington’s hubris is pushing the world toward nuclear war.

“The best country in the world” is the evil force that is destroying the lives and prospects of many different peoples and might yet destroy all life on earth.

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Those who disbelieve conspiracy theories are doomed to be victims of massive global conspiracies regarded by our complicit government to be too big to jail: The latest stunning evidence is reported here.

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Everything Is Rigged: The Biggest Price-Fixing Scandal Ever

The Illuminati were amateurs. The second huge financial scandal of the year reveals the real international conspiracy: There's no price the big banks can't fix

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Read more: Go here. Follow us: @rollingstone on Twitter | RollingStone on Facebook

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Illustration by Victor Juhasz

By MATT TAIBBI

Matt Taibbi is a contributing editor for
Rolling Stone. He’s the author of five
books and a winner of the National
Magazine Award for commentary.
Please direct all media requests to
taibbimedia@yahoo.com

April 25, 2013 1:00 PM ET

Conspiracy theorists of the world, believers in the hidden hands of the Rothschilds and the Masons and the Illuminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world's largest banks may be fixing the prices of, well, just about everything.

You may have heard of the Libor scandal, in which at least three – and perhaps as many as 16 – of the name-brand too-big-to-fail banks have been manipulating global interest rates, in the process messing around with the prices of upward of $500 trillion (that's trillion, with a "t") worth of financial instruments. When that sprawling con burst into public view last year, it was easily the biggest financial scandal in history – MIT professor Andrew Lo even said it "dwarfs by orders of magnitude any financial scam in the history of markets."

That was bad enough, but now Libor may have a twin brother. Word has leaked out that the London-based firm ICAP, the world's largest broker of interest-rate swaps, is being investigated by American authorities for behavior that sounds eerily reminiscent of the Libor mess. Regulators are looking into whether or not a small group of brokers at ICAP may have worked with up to 15 of the world's largest banks to manipulate ISDAfix, a benchmark number used around the world to calculate the prices of interest-rate swaps.

Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. It's about a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget.

It should surprise no one that among the players implicated in this scheme to fix the prices of interest-rate swaps are the same megabanks – including Barclays, UBS, Bank of America, JPMorgan Chase and the Royal Bank of Scotland – that serve on the Libor panel that sets global interest rates. In fact, in recent years many of these banks have already paid multimillion-dollar settlements for anti-competitive manipulation of one form or another (in addition to Libor, some were caught up in an anti-competitive scheme, detailed in Rolling Stone last year, to rig municipal-debt service auctions). Though the jumble of financial acronyms sounds like gibberish to the layperson, the fact that there may now be price-fixing scandals involving both Libor and ISDAfix suggests a single, giant mushrooming conspiracy of collusion and price-fixing hovering under the ostensibly competitive veneer of Wall Street culture.

The Scam Wall Street Learned From the Mafia

Why? Because Libor already affects the prices of interest-rate swaps, making this a manipulation-on-manipulation situation. If the allegations prove to be right, that will mean that swap customers have been paying for two different layers of price-fixing corruption. If you can imagine paying 20 bucks for a crappy PB&J because some evil cabal of agribusiness companies colluded to fix the prices of both peanuts and peanut butter, you come close to grasping the lunacy of financial markets where both interest rates and interest-rate swaps are being manipulated at the same time, often by the same banks.

"It's a double conspiracy," says an amazed Michael Greenberger, a former director of the trading and markets division at the Commodity Futures Trading Commission and now a professor at the University of Maryland. "It's the height of criminality."

The bad news didn't stop with swaps and interest rates. In March, it also came out that two regulators – the CFTC here in the U.S. and the Madrid-based International Organization of Securities Commissions – were spurred by the Libor revelations to investigate the possibility of collusive manipulation of gold and silver prices. "Given the clubby manipulation efforts we saw in Libor benchmarks, I assume other benchmarks – many other benchmarks – are legit areas of inquiry," CFTC Commissioner Bart Chilton said.

But the biggest shock came out of a federal courtroom at the end of March – though if you follow these matters closely, it may not have been so shocking at all – when a landmark class-action civil lawsuit against the banks for Libor-related offenses was dismissed. In that case, a federal judge accepted the banker-defendants' incredible argument: If cities and towns and other investors lost money because of Libor manipulation, that was their own fault for ever thinking the banks were competing in the first place.

"A farce," was one antitrust lawyer's response to the eyebrow-raising dismissal.

"Incredible," says Sylvia Sokol, an attorney for Constantine Cannon, a firm that specializes in antitrust cases.

All of these stories collectively pointed to the same thing: These banks, which already possess enormous power just by virtue of their financial holdings – in the United States, the top six banks, many of them the same names you see on the Libor and ISDAfix panels, own assets equivalent to 60 percent of the nation's GDP – are beginning to realize the awesome possibilities for increased profit and political might that would come with colluding instead of competing. Moreover, it's increasingly clear that both the criminal justice system and the civil courts may be impotent to stop them, even when they do get caught working together to game the system.

If true, that would leave us living in an era of undisguised, real-world conspiracy, in which the prices of currencies, commodities like gold and silver, even interest rates and the value of money itself, can be and may already have been dictated from above. And those who are doing it can get away with it. Forget the Illuminati – this is the real thing, and it's no secret. You can stare right at it, anytime you want.

The banks found a loophole, a basic flaw in the machine. Across the financial system, there are places where prices or official indices are set based upon unverified data sent in by private banks and financial companies. In other words, we gave the players with incentives to game the system institutional roles in the economic infrastructure.

Libor, which measures the prices banks charge one another to borrow money, is a perfect example, not only of this basic flaw in the price-setting system but of the weakness in the regulatory framework supposedly policing it. Couple a voluntary reporting scheme with too-big-to-fail status and a revolving-door legal system, and what you get is unstoppable corruption.

Every morning, 18 of the world's biggest banks submit data to an office in London about how much they believe they would have to pay to borrow from other banks. The 18 banks together are called the "Libor panel," and when all of these data from all 18 panelist banks are collected, the numbers are averaged out. What emerges, every morning at 11:30 London time, are the daily Libor figures.

Banks submit numbers about borrowing in 10 different currencies across 15 different time periods, e.g., loans as short as one day and as long as one year. This mountain of bank-submitted data is used every day to create benchmark rates that affect the prices of everything from credit cards to mortgages to currencies to commercial loans (both short- and long-term) to swaps.

Gangster Bankers Broke Every Law in the Book

Dating back perhaps as far as the early Nineties, traders and others inside these banks were sometimes calling up the company geeks responsible for submitting the daily Libor numbers (the "Libor submitters") and asking them to fudge the numbers. Usually, the gimmick was the trader had made a bet on something – a swap, currencies, something – and he wanted the Libor submitter to make the numbers look lower (or, occasionally, higher) to help his bet pay off.

Famously, one Barclays trader monkeyed with Libor submissions in exchange for a bottle of Bollinger champagne, but in some cases, it was even lamer than that. This is from an exchange between a trader and a Libor submitter at the Royal Bank of Scotland:

SWISS FRANC TRADER: can u put 6m swiss libor in low pls?...
PRIMARY SUBMITTER: Whats it worth
SWSISS FRANC TRADER: ive got some sushi rolls from yesterday?...
PRIMARY SUBMITTER: ok low 6m, just for u
SWISS FRANC TRADER: wooooooohooooooo. . . thatd be awesome

Screwing around with world interest rates that affect billions of people in exchange for day-old sushi – it's hard to imagine an image that better captures the moral insanity of the modern financial-services sector.

Hundreds of similar exchanges were uncovered when regulators like Britain's Financial Services Authority and the U.S. Justice Department started burrowing into the befouled entrails of Libor. The documentary evidence of anti-competitive manipulation they found was so overwhelming that, to read it, one almost becomes embarrassed for the banks. "It's just amazing how Libor fixing can make you that much money," chirped one yen trader. "Pure manipulation going on," wrote another.

Yet despite so many instances of at least attempted manipulation, the banks mostly skated. Barclays got off with a relatively minor fine in the $450 million range, UBS was stuck with $1.5 billion in penalties, and RBS was forced to give up $615 million. Apart from a few low-level flunkies overseas, no individual involved in this scam that impacted nearly everyone in the industrialized world was even threatened with criminal prosecution.

Two of America's top law-enforcement officials, Attorney General Eric Holder and former Justice Department Criminal Division chief Lanny Breuer, confessed that it's dangerous to prosecute offending banks because they are simply too big. Making arrests, they say, might lead to "collateral consequences" in the economy.

The relatively small sums of money extracted in these settlements did not go toward reparations for the cities, towns and other victims who lost money due to Libor manipulation. Instead, it flowed mindlessly into government coffers. So it was left to towns and cities like Baltimore (which lost money due to fluctuations in their municipal investments caused by Libor movements), pensions like the New Britain, Connecticut, Firefighters' and Police Benefit Fund, and other foundations – and even individuals (billionaire real-estate developer Sheldon Solow, who filed his own suit in February, claims that his company lost $450 million because of Libor manipulation) – to sue the banks for damages.

One of the biggest Libor suits was proceeding on schedule when, early in March, an army of superstar lawyers working on behalf of the banks descended upon federal judge Naomi Buchwald in the Southern District of New York to argue an extraordinary motion to dismiss. The banks' legal dream team drew from heavyweight Beltway-connected firms like Boies Schiller (you remember David Boies represented Al Gore), Davis Polk (home of top ex-regulators like former SEC enforcement chief Linda Thomsen) and Covington & Burling, the onetime private-practice home of both Holder and Breuer.

The presence of Covington & Burling in the suit – representing, of all companies, Citigroup, the former employer of current Treasury Secretary Jack Lew – was particularly galling. Right as the Libor case was being dismissed, the firm had hired none other than Lanny Breuer, the same Lanny Breuer who, just a few months before, was the assistant attorney general who had balked at criminally prosecuting UBS over Libor because, he said, "Our goal here is not to destroy a major financial institution."

In any case, this all-star squad of white-shoe lawyers came before Buchwald and made the mother of all audacious arguments. Robert Wise of Davis Polk, representing Bank of America, told Buchwald that the banks could not possibly be guilty of anti- competitive collusion because nobody ever said that the creation of Libor was competitive. "It is essential to our argument that this is not a competitive process," he said. "The banks do not compete with one another in the submission of Libor."

If you squint incredibly hard and look at the issue through a mirror, maybe while standing on your head, you can sort of see what Wise is saying. In a very theoretical, technical sense, the actual process by which banks submit Libor data – 18 geeks sending numbers to the British Bankers' Association offices in London once every morning – is not competitive per se.

But these numbers are supposed to reflect interbank-loan prices derived in a real, competitive market. Saying the Libor submission process is not competitive is sort of like pointing out that bank robbers obeyed the speed limit on the way to the heist. It's the silliest kind of legal sophistry.

But Wise eventually outdid even that argument, essentially saying that while the banks may have lied to or cheated their customers, they weren't guilty of the particular crime of antitrust collusion. This is like the old joke about the lawyer who gets up in court and claims his client had to be innocent, because his client was committing a crime in a different state at the time of the offense.

"The plaintiffs, I believe, are confusing a claim of being perhaps deceived," he said, "with a claim for harm to competition."

Judge Buchwald swallowed this lunatic argument whole and dismissed most of the case. Libor, she said, was a "cooperative endeavor" that was "never intended to be competitive." Her decision "does not reflect the reality of this business, where all of these banks were acting as competitors throughout the process," said the antitrust lawyer Sokol. Buchwald made this ruling despite the fact that both the U.S. and British governments had already settled with three banks for billions of dollars for improper manipulation, manipulation that these companies admitted to in their settlements.

Michael Hausfeld of Hausfeld LLP, one of the lead lawyers for the plaintiffs in this Libor suit, declined to comment specifically on the dismissal. But he did talk about the significance of the Libor case and other manipulation cases now in the pipeline.

"It's now evident that there is a ubiquitous culture among the banks to collude and cheat their customers as many times as they can in as many forms as they can conceive," he said. "And that's not just surmising. This is just based upon what they've been caught at."

Greenberger says the lack of serious consequences for the Libor scandal has only made other kinds of manipulation more inevitable. "There's no therapy like sending those who are used to wearing Gucci shoes to jail," he says. "But when the attorney general says, 'I don't want to indict people,' it's the Wild West. There's no law."

The problem is, a number of markets feature the same infrastructural weakness that failed in the Libor mess. In the case of interest-rate swaps and the ISDAfix benchmark, the system is very similar to Libor, although the investigation into these markets reportedly focuses on some different types of improprieties.

Though interest-rate swaps are not widely understood outside the finance world, the root concept actually isn't that hard. If you can imagine taking out a variable-rate mortgage and then paying a bank to make your loan payments fixed, you've got the basic idea of an interest-rate swap.

In practice, it might be a country like Greece or a regional government like Jefferson County, Alabama, that borrows money at a variable rate of interest, then later goes to a bank to "swap" that loan to a more predictable fixed rate. In its simplest form, the customer in a swap deal is usually paying a premium for the safety and security of fixed interest rates, while the firm selling the swap is usually betting that it knows more about future movements in interest rates than its customers.

Prices for interest-rate swaps are often based on ISDAfix, which, like Libor, is yet another of these privately calculated benchmarks. ISDAfix's U.S. dollar rates are published every day, at 11:30 a.m. and 3:30 p.m., after a gang of the same usual-suspect megabanks (Bank of America, RBS, Deutsche, JPMorgan Chase, Barclays, etc.) submits information about bids and offers for swaps.

And here's what we know so far: The CFTC has sent subpoenas to ICAP and to as many as 15 of those member banks, and plans to interview about a dozen ICAP employees from the company's office in Jersey City, New Jersey. Moreover, the International Swaps and Derivatives Association, or ISDA, which works together with ICAP (for U.S. dollar transactions) and Thomson Reuters to compute the ISDAfix benchmark, has hired the consulting firm Oliver Wyman to review the process by which ISDAfix is calculated. Oliver Wyman is the same company that the British Bankers' Association hired to review the Libor submission process after that scandal broke last year. The upshot of all of this is that it looks very much like ISDAfix could be Libor all over again.

"It's obviously reminiscent of the Libor manipulation issue," Darrell Duffie, a finance professor at Stanford University, told reporters. "People may have been naive that simply reporting these rates was enough to avoid manipulation."

And just like in Libor, the potential losers in an interest-rate-swap manipulation scandal would be the same sad-sack collection of cities, towns, companies and other nonbank entities that have no way of knowing if they're paying the real price for swaps or a price being manipulated by bank insiders for profit. Moreover, ISDAfix is not only used to calculate prices for interest-rate swaps, it's also used to set values for about $550 billion worth of bonds tied to commercial real estate, and also affects the payouts on some state-pension annuities.

So although it's not quite as widespread as Libor, ISDAfix is sufficiently power-jammed into the world financial infrastructure that any manipulation of the rate would be catastrophic – and a huge class of victims that could include everyone from state pensioners to big cities to wealthy investors in structured notes would have no idea they were being robbed.

"How is some municipality in Cleveland or wherever going to know if it's getting ripped off?" asks Michael Masters of Masters Capital Management, a fund manager who has long been an advocate of greater transparency in the derivatives world. "The answer is, they won't know."

Worse still, the CFTC investigation apparently isn't limited to possible manipulation of swap prices by monkeying around with ISDAfix. According to reports, the commission is also looking at whether or not employees at ICAP may have intentionally delayed publication of swap prices, which in theory could give someone (bankers, cough, cough) a chance to trade ahead of the information.

Swap prices are published when ICAP employees manually enter the data on a computer screen called "19901." Some 6,000 customers subscribe to a service that allows them to access the data appearing on the 19901 screen.

The key here is that unlike a more transparent, regulated market like the New York Stock Exchange, where the results of stock trades are computed more or less instantly and everyone in theory can immediately see the impact of trading on the prices of stocks, in the swap market the whole world is dependent upon a handful of brokers quickly and honestly entering data about trades by hand into a computer terminal.

Any delay in entering price data would provide the banks involved in the transactions with a rare opportunity to trade ahead of the information. One way to imagine it would be to picture a racetrack where a giant curtain is pulled over the track as the horses come down the stretch – and the gallery is only told two minutes later which horse actually won. Anyone on the right side of the curtain could make a lot of smart bets before the audience saw the results of the race.

At ICAP, the interest-rate swap desk, and the 19901 screen, were reportedly controlled by a small group of 20 or so brokers, some of whom were making millions of dollars. These brokers made so much money for themselves the unit was nicknamed "Treasure Island."

Already, there are some reports that brokers of Treasure Island did create such intentional delays. Bloomberg interviewed a former broker who claims that he watched ICAP brokers delay the reporting of swap prices. "That allows dealers to tell the brokers to delay putting trades into the system instead of in real time," Bloomberg wrote, noting the former broker had "witnessed such activity firsthand." An ICAP spokesman has no comment on the story, though the company has released a statement saying that it is "cooperating" with the CFTC's inquiry and that it "maintains policies that prohibit" the improper behavior alleged in news reports.

The idea that prices in a $379 trillion market could be dependent on a desk of about 20 guys in New Jersey should tell you a lot about the absurdity of our financial infrastructure. The whole thing, in fact, has a darkly comic element to it. "It's almost hilarious in the irony," says David Frenk, director of research for Better Markets, a financial-reform advocacy group, "that they called it ISDAfix."

After scandals involving libor and, perhaps, ISDAfix, the question that should have everyone freaked out is this: What other markets out there carry the same potential for manipulation? The answer to that question is far from reassuring, because the potential is almost everywhere. From gold to gas to swaps to interest rates, prices all over the world are dependent upon little private cabals of cigar-chomping insiders we're forced to trust.

"In all the over-the-counter markets, you don't really have pricing except by a bunch of guys getting together," Masters notes glumly.

That includes the markets for gold (where prices are set by five banks in a Libor-ish teleconferencing process that, ironically, was created in part by N M Rothschild & Sons) and silver (whose price is set by just three banks), as well as benchmark rates in numerous other commodities – jet fuel, diesel, electric power, coal, you name it. The problem in each of these markets is the same: We all have to rely upon the honesty of companies like Barclays (already caught and fined $453 million for rigging Libor) or JPMorgan Chase (paid a $228 million settlement for rigging municipal-bond auctions) or UBS (fined a collective $1.66 billion for both muni-bond rigging and Libor manipulation) to faithfully report the real prices of things like interest rates, swaps, currencies and commodities.

All of these benchmarks based on voluntary reporting are now being looked at by regulators around the world, and God knows what they'll find. The European Federation of Financial Services Users wrote in an official EU survey last summer that all of these systems are ripe targets for manipulation. "In general," it wrote, "those markets which are based on non-attested, voluntary submission of data from agents whose benefits depend on such benchmarks are especially vulnerable of market abuse and distortion."

Translation: When prices are set by companies that can profit by manipulating them, we're fucked.

"You name it," says Frenk. "Any of these benchmarks is a possibility for corruption."

The only reason this problem has not received the attention it deserves is because the scale of it is so enormous that ordinary people simply cannot see it. It's not just stealing by reaching a hand into your pocket and taking out money, but stealing in which banks can hit a few keystrokes and magically make whatever's in your pocket worth less. This is corruption at the molecular level of the economy, Space Age stealing – and it's only just coming into view.

This story is from the May 9th, 2013 issue of Rolling Stone.

BREAKING: PIMA COUNTY CITIZENS OF ALL POLITICAL STRIPES (INCLUDING PROMINENT REPUBLICANS!) SUE THE COUNTY TO ALLOW SEVERAL RANDOMLY SELECTED PRECINCTS' PAPER BALLOTS TO BE HAND COUNTED AFTER THE OFFICIAL RESULTS ARE POSTED "TO MAKE SURE THAT NOBODY CHEATS."

Blogger's Note: My yesterday's post seems to imply that "Republicans" are stealing our elections, whereas the truth of the matter is that elections are being stolen by criminals for illicit purposes having nothing to do with their political party affiliations. Case in point: John Brakey and I are both progressive Democrats and cofounders in Tucson of AUDIT-AZ (Americans United for Democracy, Integrity and Transparency in Elections), and in the video below you will hear Republican Brad Roach, former candidate for Pima County Attorney, remark on how much he learned from AUDIT-AZ. Although at opposite ends of the Democrat-Republican political scale, John and Brad are great friends in their quest to restore honest elections in Arizona (see photograph below)! 

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FRIDAY, OCTOBER 26, 2012                                                                                  Original here

Arizona Citizens' Election Integrity Lawsuit Explained by Attorney Brad Roach and Republican Candidate Bill Beard

From left to right:  Attorney Brad Roach,  John Brakey,
Bill Beard, Chris DeSimone

KVOA Wakeup Tucson at 7:00 AM Mountain Time on 1030 AM radio Stay tuned for the final clip containing Pima County shill Benny White refusing to participate in the Elections Integrity Board's emergency meeting scheduled to discuss former NSA employee Mickey Duniho's analysis of past elections. White mistakenly assumed that the meeting was going to discuss the pending lawsuit requiring Pima County to follow existing election laws. One can assume he is also mistaken in thinking he can be a co-defendant in that case because he ultimately would be acting against significant members within Pima County's Republican Party who are plaintiffs in the lawsuit. 


NSA Analyst Mickey Duniho's presentation to the Pima County's Election Integrity Board will be posted later this evening.

......

Pima commission to discuss chance of election fraud in larger precincts

Arizona Daily Star                                                                                            Original here
Carli Brosseau

The Pima County Election Integrity Commission is holding a special meeting today to talk about whether one member's statistical analysis of votes in recent elections shows evidence of fraud.

Under the group's bylaws, an emergency meeting can be held if at least five of the nine members call for one.

Michael "Mickey" Duniho
His presentation to the Election Integrity Board
will be posted on The Intercept today.

Mickey Duniho, a retired National Security Agency computer programmer, requested the meeting two days ago after he began plotting cumulative votes by precinct and noticing that outcomes seemed to differ by precinct size.
He was replicating earlier studies done by California researchers Francois Choquette and James Johnson, an aerospace engineer and a financial analyst. The researchers argue that their analysis of the recent Republican primary shows Mitt Romney making strange vote gains in most states' large precincts.
Duniho - formerly a Republican election observer in Maryland, a supporter of Democrat-backed lawsuits against Pima County's Elections Department and now a registered independent - said that his results seem to parallel those of Choquette and Johnson, who tried to account for their findings using demographics.
He is now collecting demographic data by precinct to try to explain his results with other factors, such as whether a precinct is rural or the affluence of the precinct's residents.

Duniho suspects that the patterns he found show a 10 percent flip of votes in favor of the Republican candidate in the 2010 race between Raúl Grijalva and Ruth McClung and the race between Gabrielle Giffords and Jesse Kelly the same year, as well as votes switched to benefit Romney in the Republican primary.

"The problem is figuring out what the statistical evidence does mean," Duniho said. "The computer is a black box. It is very easy for the guy who wrote the program to do just about anything."

At today's meeting, Duniho hopes to persuade the county Elections Department to sort early ballots by precinct before doing the hand-count audit required by law.

He has been advocating for that sorting, as well as for upping the percentage of ballots hand-counted, for about six years, arguing that his method boosts the chances of revealing fraud if it were to occur.

By law, Arizona counties must do a hand-count audit of 1 percent of early ballots and 2 percent of precincts in at least one federal and one state race. Pima County already audits more than required - 4 percent of precinct-cast ballots and 1 percent of early ballots. No local races are audited.

Some of the commission's members have argued strongly against holding the meeting and worry that it could unnecesarily increase fears about the vote count.

Benny White, a Republican election observer, responded to news of the meeting request with a sharply worded email.

"After reviewing the academic research involved with the links in the message, I conclude that the allegations being made are absolute nonsense," he wrote. "These academics don't take into account the fact that election results are the response by voters to campaigns and candidates. …

"I think there is a greater probability that fluctuations in the electrical voltage of the lines serving the election department have more to do with variations in election results than these alleged anomalies."

The county's technical consultant on election matters, John Moffatt, agrees that the data do not seem to show a vote flip in Pima County, but he does think the California researchers may be on to something with their findings in some other states. 

Pima County employee John Moffatt speaks of
"witch hunts" in the past, but is responsible
for the incoherent rationale that required a suit
to obtain electronic public records.

"It's worth paying attention to, and we took it seriously," he said. "My personal opinion is that it's another witch hunt, but our responsibility is to check this stuff out, not just blow it off."

He adamantly rejects allegations that county elections staff somehow tampered with any results.

The county's elections director, Brad Nelson, will not be at the meeting to approve a change of audit procedures because of family issues, but county workers involved in those processes caution that while it's theoretically possible to make Duniho's suggested change, it would be logistically difficult.

"That's a monumental task," Pima County Recorder F. Ann Rodriguez said. "It's kind of late to be changing the procedures in the middle of a major election."

The sorting machine needed to do the job efficiently would cost at least $125,000, said Chris Roads, deputy recorder and registrar of voters.

To do the sorting by hand would likely take two days, Moffatt said.

The window to challenge a vote count after an election in Arizona is five days after the canvass.

Posted by Intercept at 3:56 PM.  

"THE FDA HAS REMOVED ALL LIABILITY FROM VACCINE MANUFACTURERS AND PARTICPATED IN A VAST CONSPIRACY AGAINST HUMANITY BY COVERING UP THE DAMAGE THAT VACCINES CAUSE, BY COVERING UP THE DAMAGE OF GMOS, BY COVERING UP THE DAMAGE THAT PESTICIDES AND HERBICIDES AND IRRADIATION AND ALL OF THE OTHER APPROVED TECHNIQUES THAT THE FDA SO HAPPILY ENDOSES WILL COST." -- RIMA E. LAIBOW, M.D.

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WAR ON HEALTH - The FDA's Cult of Tyranny

http://youtu.be/VibVIRsHnI0

Published on Jul 3, 2012 by PRNfm

Progressive Radio Network presents
A Gary Null Production
WAR ON HEALTH: The FDA's Cult of Tyranny
Introduced by the director (from his speech at the world premiere in New York City, June 15, 2012)

In the near future, American medical practice may change dramatically for the worse. No longer will maximal dose natural supplements—vitamins, natural compounds, and scientifically proven medicinal herbs—be available over the counter in local health and grocery stores. Holistic practice, which relies upon non-prescription natural treatments instead of Big Pharma drugs prescribed life-long, will diminish. American healthcare will be imprisoned, patients will be forced to abide by a single medical paradigm defined by corporate drug and food executives and dictated by a government enforcement agency, the Food and Drug Administration (FDA). This is the bleak scenario if the FDA succeeds in limiting Americans' options to prevent and treat diseases.

'War on Health' is the first documentary detailing and challenging the FDA agenda and its allegiance with the international Codex Alimentarius, which hopes to establish a monolithic food and health regime. Betraying its founding mandate to assure drug, food and chemical safety in the interests of public health, the FDA today is a repressive bureaucracy serving pharmaceutical and agricultural greed and profits. Vaccines, medical devices, prescription drugs are fast tracked at alarming rates through the FDA at the expense of scientific oversight to assure their efficacy and safety. The result is hundreds of thousands premature deaths annually from pharmaceutical drugs, vaccines and medical devices and an epidemic of medical incompetence and fraud sanctioned by federal health officials.

Featuring many pioneering American and European attorneys, physicians, medical researchers and advocates of health freedom, War on Health lifts the veil on FDA's militaristic operations against organic food providers and alternative physicians. The film's conclusion is perfectly clear: the FDA is a tyrannical cult founded upon the denial of sound medical science with little intention to improve the nation's health and prevent disease.

Written and Directed by Gary Null
Produced by Valerie Van Cleve
Associate Producer: Richard Gale
Editor: Richie Williamson
Offline Editing: Valerie Van Cleve, L.A. Jones
Camera Operators: Marcello Coppuchino, Peter Bonilla, David Grier, L.A. Jones
Gregory Jason Russ, Jake Hammer Mesmire, Edson Tanakae, Valerie Van Cleve, Richie Williamson

NAOMI WOLF: "WE ARE SEEING SYSTEMATIC CORRUPTION IN BANKING -- AND SYSTEMATIC COLLUSION." THE COLLUSION IS BOTH AMONG BANKS AND BETWEEN BANKS AND GOVERNMENT. NO ONE HAS BEEN INDICTED FOR THESE MULTI-TRILLION-DOLLAR CRIMES. HOWEVER, THE U.S. IS PROPOSING NEW WAYS TO PUNISH WHISTLEBLOWERS.

This global financial fraud and its gatekeepers

The media's 'bad apple' thesis no longer works. We're seeing systemic corruption in banking – and systemic collusion

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Naomi Wolf
guardian.co.uk, Saturday 14 July 2012 15.47 BST 

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Protesters outside a Bank of America annual shareholders' meeting in Charlotte, North Carolina.
Photograph: Jason Miczek/Reuters

Last fall, I argued that the violent reaction to Occupy and other protests around the world had to do with the 1%ers' fear of the rank and file exposing massive fraud if they ever managed get their hands on the books. At that time, I had no evidence of this motivation beyond the fact that financial system reform and increased transparency were at the top of many protesters' list of demands.

But this week presents a sick-making trove of new data that abundantly fills in this hypothesis and confirms this picture. The notion that the entire global financial system is riddled with systemic fraud – and that key players in the gatekeeper roles, both in finance and in government, including regulatory bodies, know it and choose to quietly sustain this reality – is one that would have only recently seemed like the frenzied hypothesis of tinhat-wearers, but this week's headlines make such a conclusion, sadly, inevitable.

The New York Times business section on 12 July shows multiple exposes of systemic fraud throughout banks: banks colluding with other banks in manipulation of interest rates, regulators aware of systemic fraud, and key government officials (at least one banker who became the most key government official) aware of it and colluding as well. Fraud in banks has been understood conventionally and, I would say, messaged as a glitch. As in London Mayor Boris Johnson's full-throated defense of Barclay's leadership last week, bank fraud is portrayed as a case, when it surfaces, of a few "bad apples" gone astray.

In the New York Times business section, we read that the HSBC banking group is being fined up to $1bn, for not preventing money-laundering (a highly profitable activity not to prevent) between 2004 and 2010 – a six years' long "oops". In another article that day, Republican Senator Charles Grassley says of the financial group Peregrine capital: "This is a company that is on top of things." The article goes onto explain that at Peregrine Financial, "regulators discovered about $215m in customer money was missing." Its founder now faces criminal charges. Later, the article mentions that this revelation comes a few months after MF Global "lost" more than $1bn in clients' money.

What is weird is how these reports so consistently describe the activity that led to all this vanishing cash as simple bumbling: "regulators missed the red flag for years." They note that a Peregrine client alerted the firm's primary regulator in 2004 and another raised issues with the regulator five years later – yet "signs of trouble seemingly missed for years", muses the Times headline.

A page later, "Wells Fargo will Settle Mortgage Bias Charges" as that bank agrees to pay $175m in fines resulting from its having – again, very lucratively – charged African-American and Hispanic mortgagees costlier rates on their subprime mortgages than their counterparts who were white and had the same credit scores. Remember, this was a time when "Wall Street firms developed a huge demand for subprime loans that they purchased and bundled into securities for investors, creating financial incentives for lenders to make such loans." So, Wells Fargo was profiting from overcharging minority clients and profiting from products based on the higher-than-average bad loan rate expected. The piece discreetly ends mentioning that a Bank of America lawsuit of $335m and a Sun Trust mortgage settlement of $21m for having engaged is similar kinds of discrimination.

Are all these examples of oversight failure and banking fraud just big ol' mistakes? Are the regulators simply distracted?

The top headline of the day's news sums up why it is not that simple: "Geithner Tried to Curb Bank's Rate Rigging in 2008". The story reports that when Timothy Geithner, at the time he ran the Federal Reserve Bank of New York, learned of "problems" with how interest rates were fixed in London, the financial center at the heart of the Libor Barclays scandal. He let "top British authorities" know of the issues and wrote an email to his counterparts suggesting reforms. Were his actions ethical, or prudent?

A possible interpretation of Geithner's action is that he was "covering his ass", without serious expectation of effecting reform of what he knew to be systemic abuse.

And what, in fact, happened? Barclays kept reporting false rates, seeking to boost its profit. Last month, the bank agreed to pay $450m to US and UK authorities for manipulating the Libor and other key benchmarks, upon which great swaths of the economy depended. This manipulation is alleged in numerous lawsuits to have defrauded thousands of bank clients. So Geithner's "warnings came too late, and his efforts did not stop the illegal activity".

And then what happened? Did Geithner, presumably frustrated that his warnings had gone unheeded, call a press conference? No. He stayed silent, as a practice that now looks as if several major banks also perpetrated, continued.

And then what happened? Tim Geithner became Treasury Secretary. At which point, he still did nothing.

It is very hard, looking at the elaborate edifices of fraud that are emerging across the financial system, to ignore the possibility that this kind of silence – "the willingness to not rock the boat" – is simply rewarded by promotion to ever higher positions, ever greater authority. If you learn that rate-rigging and regulatory failures are systemic, but stay quiet, well, perhaps you have shown that you are genuinely reliable and deserve membership of the club.

Whatever motivated Geithner's silence, or that of the "government official" in the emails to Barclays, this much is obvious: the mainstream media need to drop their narratives of "Gosh, another oversight". The financial sector's corruption must be recognized as systemic.

Meanwhile, Britain is sleepwalking in a march toward total email surveillance, even as the US brings forward new proposals to punish whistleblowers by extending the Espionage Act. In an electronic world, evidence of these crimes lasts forever – if people get their hands on the books. In the Libor case, notably, a major crime has not been greeted by much demand at the top for criminal prosecutions. That asymmetry is one of the insurance policies of power. Another is to crack down on citizens' protest.