CIA head visits IsraHell to discuss Syria, Iran’s nuclear program

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CIA director John Brennan

John Brennan met with Defense Minister Ya’alon; the Defense Ministry did not provide details of the meeting; Russian FM Lavrov says Russia plans to go ahead with sale of missile defense systems to Syria.

Haaretz
The new director of the U.S. Central Intelligence Agency, John Brennan, visited Israel Thursday and met with senior members of the defense and intelligence establishment. Brennan’s meetings in Israel focused on the escalation of the civil war in Syria, and the international efforts to stop Iran’s nuclear program.

Brennan met with Defense Minister Moshe “Bogie” Ya’alon on Thursday afternoon. The Defense Ministry did not provide details of the meeting.

The visit from the new CIA head comes two months after U.S. PresidentBarack Obama visited Israel, and a month after visits by the new U.S. Secretary of State John Kerry and the new U.S. Secretary of Defense Chuck Hagel. Throughout each series of meetings with government representatives, Israeli officials emphasized that if necessary, Israel intends to act to stop the smuggling of advanced weapons, including chemical weapons, from Syria to Hezbollah in Lebanon.

Earlier this week, IDF Chief of Staff Lt. Gen Benny Gantz said in a public speech that Israel will act when its red lines are crossed in the northern arena.

At the end of April there were two air strikes in Syrian territory. These have been attributed to Israel, even though Israel has not officially admitted responsibility. The air strikes targeted shipments of Fateh-110 missiles in several sites in the Damascus area. Syria was an in-between stop for the missiles, which were being smuggled from Iran to Lebanon. These medium-range missiles had been fitted with improved navigation systems that considerably improve their accuracy.

On Thursday, Russian Foreign Minister Sergei Lavrov said that his country intends to sell Syria advanced anti-aircraft S-300 missiles, as it wants to honor its existing agreements with Syrian President Bashar Assad’s regime. These remarks were made only a few days after Prime Minister Benjamin Netanyahu’s speedy visit to Russia, where he tried to convince Russian President Vladimir Putin to cease the sale of weapons to Syria

Meanwhile, Obama met in Washington on Thursdaywith Turkish Prime Minister, Recep Tayyip Erdogan. At a joint press conference, Obama said that he and his guest both agree that Syrian President Bashar Assad must go, and that the U.S. also reserves the option for military intervention in Syria.

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Obama rules out unilateral action in Syria as Russia ships advanced missiles to Assad

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foreignpolicy.com

U.S. President Barack Obama again ruled out unilateral U.S. military action in Syria at a press conference with Turkish Prime Minister Recep Tayyip Erdogan yesterday. “It’s not going to be something that the United States does by itself. And I don’t think anybody in the region would think that U.S. unilateral actions … would bring about a better outcome,” the president said, promising to “keep increasing the pressure on the Assad regime and working with the Syrian opposition.”

Erdogan’s visit is aimed at convincing the U.S. to escalate it’s involvement in toppling Bashar al-Assad’s government. The prime minister favors the creation of a no-fly zone to shield civilians and rebel fighters in Northern Syria.

U.S. officials also said on Thursday that Russia has shipped advanced anti-ship cruise missiles to Assad’s government. The radar-equipped missiles could theoretically be used by the Syrian government to counter an internationally imposed naval embargo or no-fly zone.

The number of refugees fleeing the conflict has now likely exceeded 1.5 million with more than 80,000 killed. 

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Who In The Obama Administration Is Going To Jail?

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BY  16 COMMENTS

OBAMASCANDALS 467x1024 Who in the Obama Administration is Going to Jail?

It hasn’t been a very good week for the Obama administration. In fact, I’ve never seen the sharks circling as they are today… particularly about the IRS abuse scandal.

You see, Congress is serious about this one. They have five years of pent-up frustration over Obama’s Teflon-like ability to shirk responsibility; and now that he’s on the defensive, they’re going to make sure the law is enforced. The Speaker of the House, John Boehner, asked, “Who’s going to jail over this scandal?”

Yet somehow Obama and his team seem to not understand the gravity of the charges leveled against them. Or perhaps they’re simply in denial. They’ve clearly lost control of the news cycle, and even Obama’s own people are starting to look out for themselves.

Not even the most committed Obama followers want to do jail time for him.

The IRS Scandal in Review

So far, Mr. Boehner and the media have mostly focused on the delay/rejection of tax-exempt status for Tea Party and conservative advocacy groups.

We see this clearly in Boehner’s comments: “Someone made a conscious decision to harass and to hold up these requests for tax-exempt status… I think we need to know who they are and whether they violated the law. Clearly, someone violated the law.”

But my sources on Capitol Hill tell me the investigation has moved from this first violation onto even more significant breaches of IRS statute.

It seems that, under Obama, the IRS has leaked specific information from tax returns and IRS applications of conservative organizations to the media and liberal advocacy organizations.

We know this because of a report from the news organization, ProPublica, which received the illegal information. An article released on May 13 states: “The same IRS office that deliberately targeted conservative groups applying for tax-exempt status in the run-up to the 2012 election released nine pending confidential applications of conservative groups to ProPublica late last year.”

And if that wasn’t enough, House investigators have also heard about another major felony committed by someone at the IRS.

John Eastman, Chairman of the Board of the anti-same-sex-marriage group The National Organization for Marriage (NOM), reported, “A year ago, someone at the IRS illegally disclosed the confidential portions of its tax return to the Human Rights Campaign (HRC), the leading organization on the other side of NOM in the war over the definition of marriage. At the time, HRC was headed by someone who had just been named national co-Chair of the Obama for President campaign.”

The bottom line is this: Releasing confidential tax returns is a felony, and the review of confidential tax returns is also a felony.

The HRC reviewed the illicit tax returns and, after acknowledging the document was illegally received, placed it on their website. Soon afterward, the information appeared on the Huffington Post and in other news outlets.

Eastman tried repeatedly to get the attention of authorities. He said:

We asked the IRS and the Department of Justice for an investigation more than a year ago. An investigation was had, but they refuse to let us know who was responsible. We then filed several freedom of information act requests to get to the truth, beginning last August. But NOM’s requests have largely been stonewalled. That latest non-response response is priceless. The identity of the perpetrator, the person responsible for illegally disclosing NOM’s tax returns, is ‘confidential’ information protected from disclosure by the very same law that this individual violated.

Big Problems

Despite their nonchalance, Obama’s team actually has more to worry about than just Congress. The FBI is also looking into the IRS’s criminal activities under the Obama administration.

It’s been a busy – and shocking – week on Capitol Hill. We’ll stay on top of this scandal as the story progresses, and we’ll use our inside sources to bring you the big news before it breaks in the mainstream media.

 

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US Suspends Constitution in Permanent World War on Terror Eric Blair

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Obama, IsraHell and the new phase of the war on Syria

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US-IsraHell military escalation points toward wider intervention

IsraHell air strikes on May 5 near Damascus

by Richard Becker

The massive Israeli air strikes on May 5 near Damascus mark a new phase in the imperialist-led campaign to overthrow the Syrian government. Huge bombs lit the early morning sky and shook the ground in the country’s capital. Secondary explosions continued for four hours afterwards. It was the third Israeli bombing attack this year, the second in two days, and by far the largest thus far.

Later the same day, a U.N. commission revealed “strong, concrete suspicions” that the opposition military forces—and not the government—were responsible for the use of sarin nerve gas in Syria. The commission directly contradicted U.S. and British allegations, which the Syrian government has always denied.

Israel’s attack was in “closest coordination” with the Obama administration, according to a White House spokesperson. It is the latest act in a long history of Israel acting as an extension of U.S. military power, carrying out missions that Washington finds “inconvenient” to perform itself at a given time.

The latest raids and the fact that no Israeli planes were reported shot down could be a factor leading to a major air war.

Senator John McCain, an especially rabid supporter of a new U.S. war in Syria, responded by saying that “the Israelis seem to be able to penetrate it [Syrian air defenses] fairly easily.” He called for the U.S. to destroy Syrian air defenses “with cruise missiles; cratering their runways, where all of these supplies, by the way, from Iran and Russia are coming in by air.”

McCain is also a leading advocate of a “no-fly zone” (“no-fly” for Syrian aircraft only, that is) over large parts of the country, which could only be accomplished by first destroying Syria’s air forces and defenses. This initiative is clearly advancing in Washington.

Syrian government and opposition responses to Israeli raids

The Syrian government called the Israeli attacks, “acts of war” and “flagrant violations of international law,” and stated that they confirmed the complicity of the U.S. and Israel governments with the armed opposition.

On the other side, the New York Times (May 5, 2013) reported: “The rebels’ Damascus Military Council quickly sought to capitalize on the blasts. The council issued a statement calling on all fighters in the area to work together, put aside rivalries and mount focused attacks on government forces that have so far kept a solid hold on the capital.”

The National Coalition of Opposition and Revolutionary Forces, considered the main umbrella group, blamed the Syrian government itself for the attacks in a convoluted statement, which read:

“Israel’s actions, including the pre-emptive attacks to weaken Syrian defenses, demonstrate a fear of losing the years of peace that the Assad regime provided for Israel.”

According to this matchless “reasoning,” Israel carried out the bombing to weaken Syria and the Assad government out of fear of losing the Assad government.

The illogic of the National Coalition’s statement stems from its fundamental dishonesty. Due to the deep hostility among the Syrian population toward the racist and militarist Israeli state, the National Coalition leaders must conceal their real attitude toward the attacks.

How Israel factors into US considerations

While the corporate media portrayed the latest strikes as being aimed at preventing Iranian missiles from reaching the Lebanese resistance organization Hezbollah, the fact that there were multiple explosions at numerous locations, points toward wider strategic objectives.

If Syria retaliates for this latest in series of Israeli air raids, Israel could then act to destroy the Syria air force, a goal openly discussed in Washington in recent days. Thanks in large part to hundreds of billions in U.S. assistance Israel is the leading military power in the region—apart from the U.S. government itself—and has air superiority over other countries in the region.

If, on the other hand, Syria does not respond to the attacks, the government could be made to appear weak, unable to defend the country.

Escalation as opposition suffers setbacks

The escalation of imperialist intervention in the Syrian war is being accelerated now due to losses suffered by the splintered opposition forces in recent weeks. And it’s not as if the “Free Syrian Army,” the “Supreme Military Command,” the “National Coalition of Syrian Opposition and Revolutionary Forces,” the “Jabhat al-Nusra,” and other opposition groups have not already been receiving massive support from the United States, Britain, France, Turkey, Saudi Arabia, Qatar and more.

The U.S. and its allies have been funneling vast quantities of arms, money and supplies to the opposition, and training thousands of anti-government fighters in Turkey, Jordan and elsewhere. Harsh economic sanctions have been imposed Syria.

Outside support has sustained the opposition, but not brought it closer to victory. Thus the repeated and urgent appeals by opposition leaders for an imperialist air war against their own country.

Just as in case of Libya, some on the left here, even some who call themselves “socialist,” have taken the absurdly contradictory position of supporting the “revolution” in Syria, while opposing the “foreign intervention” that the leaders of the “revolution” are demanding, and without which they cannot hope to win.

The upheaval in Syria that began more than two years ago was fueled by a wide range of grievances, some legitimate, some reactionary. But the armed rebellion inside the country today is inextricably bound to imperialism and the most reactionary regimes in the Arab world.

The Israeli air strikes follow a week of escalating war rhetoric from the White House and Congress. Now is the time for the anti-war movement, the people’s movement and all those who stand for justice to reject the war propaganda emanating from Washington, and stand together to say: “No New War Against Syria—U.S. Out of the Middle East!”

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Zionist Puppet Capriles insists Venezuela must hold new presidential election

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Venezuela’s opposition leader Henrique Capriles

Venezuela’s opposition leader Henrique Capriles.

Nicolas Maduro won Venezuela’s presidential election on April 14, but opposition leader Henrique Capriles refused to accept the results.”

Venezuela’s opposition leader has warned that if the Supreme Court does not accept a demand for a new presidential election, he will bring the issue to ‘international bodies.’

Henrique Capriles told AFP on Wednesday that “within hours, we are going to have a decision on whether (the Supreme Court) accepts” the opposition’s request for a new election.

The opposition leader also stated that he would take his fight to “international bodies” including the Inter-American Commission on Human Rights.

On April 14, Nicolas Maduro won the presidential election with 50.7 percent of the vote against 49.1 percent for Capriles.

Capriles refused to accept the results and lawyers representing the opposition coalition lodged a complaint at the Supreme Court, claiming that a number of irregularities had occurred.

On April 27, Venezuela’s National Electoral Council said Capriles had failed to present any compelling proof that there were irregularities during the presidential election.

Maduro replaced late President Hugo Chavez, who lost a two-year-long battle with cancer on March 5.

The Venezuelan president says the United States provided the opposition with financial support. Maduro said on May 11 that Washington has made a “grave mistake” in refusing to acknowledge his victory.

“I believe (the United States) is committing a grave mistake, one more in its policy towards Latin America,” Maduro stated.

He made the remarks after US President Barack Obama rejected to say whether Washington recognized Maduro as the new president of Venezuela.

In addition, Maduro said Obama was “convinced” by his advisors to refuse to recognize the election results. “They promised him that I would be ousted in 24 or 48 hours, or that there would be a violent crisis in the country.”

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Drone Pilots Expose Politicians Lies

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by JGVibes

Our elected and unelected officials tell us that drone strikes target top level enemies of the United States who are imminent threats to us, and that killing innocent people is avoided altogether or minimized. 

War Is Crime

Congressional hearings, with a couple of excellent exceptions, question outside academics about the legality of this purported strategy.  The Obama administration declines to send any witnesses.

But drone pilots have begun talking to the media.  And they describe policies that bear a lot closer resemblance to reporting from the areas where the missiles strike.  These pilots should be brought before Congress.

Here is a stunning new interview with one of them:

“So the pilot is not only flying the airplane, he or she is using all those sensors to watch a potential target, circling over it for hours or days at a time. What can you really see?

“Okay, so in a village in, say, country X, where the houses are built together, there are adults who live in this house, and these children belong to those adults because we see them out in the fields together or we see them eating dinner. So you can start figuring out who is associated with who. Who is a stranger, who is it that’s visiting this house? There’s a dog and it barks at strangers, so if we needed to go in and free a hostage or conduct a raid, you’d want to tell the land forces there’s a dog there and either it’s an attack dog or it alerts the village that somebody’s coming.

“You must develop an emotional tie with the people on the ground that makes it hard if there is going to be a strike or a raid, people are going to be killed.

“I would couch it not in terms of an emotional connection, but a … seriousness. I have watched this individual, and regardless of how many children he has, no matter how close his wife is, no matter what they do, that individual fired at Americans or coalition forces, or planted an IED — did something that met the rules of engagement and the laws of armed conflict, and I am tasked to strike that individual.  The seriousness of it is that I am going to do this and it will affect his family. But that individual is the one that brought it on himself. He became a combatant the minute he took up arms.”

This pilot, in fact this director of the Air Force Remotely Piloted Aircraft Capabilities Division, has not said that a high level operation leader of terrorists who is imminently threatening the United States is targeted.  He has said that some ordinary guy who has chosen to violently resist the hostile foreign occupation of his country by shooting at the occupiers is targeted.

He has also not said anything to satisfy those who support the notion of just wars but want them conducted in compliance with the Geneva Conventions and other such legally binding limitations.  This director of a U.S. drone kill program openly says that our public employees target a family for death if needed in order to blow up a foreign soldier from thousands of miles away.  Every effort is made to avoid killing innocent family members, he says in the interview, but if it can’t be avoided, well, the target “brought it on himself.”

Here another pilot describes specific such incidents.  Here the New York Times reports on the resulting PTSD suffered by drone pilots.

War is murder, and this type of war ought to look to most people like the murder that it is.  But even if you accept war, this is not how ANYBODY claims it is to be legally done.  This is beyond what Congressional witnesses or even Congress members would say is acceptable or legal.  Yet this pilot blurts it out to the media with apparently no concern that his life will be inconvenienced by further questioning.

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Obama Should Ask Erdogan To Respect Press Freedom in Turkey

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An injured journalist is filmed and helped by his colleagues during clashes between riot police and May Day protesters in central Istanbul, May 1, 2013. (photo by REUTERS/Murad Sezer)

If US President Barack Obama brings up the controversial issue of freedom of speech tomorrow [May 16], at his meeting with Turkish Prime Minister Recep Tayyip Erdogan at the White House, it would be the most surprising news of all. Not only is the US administration facing its own flap over the seizure by the Justice Department last year of phone records at The Associated Press, the world’s most widely disseminated news service, Turkey has long been mired in issues of press freedom even as it espouses such values.

Wiretapping of media personalities and acquiring access to the privileged information of journalists is commonplace in Turkey. While no government is perfect in holding up the highest standards of press freedom, there are still major differences between civil rights and their implementation in Turkey and the United States. Even as the imperfections in the United States make the rest of the world question the sincerity of its democratic principles, Max Hoffman and Michael Werz of the Center for American Progress, question Turkey’s role as a “model” for the rest of the Muslim Arab world in transition to democracy in their new study, Freedom of the Press and Expression in Turkey,” released on May 14.

“The sidelining of press freedom, minority rights and judicial reform now threatens to impact the joint strategic project being advanced by the United States and Turkey to establish secure and democratic governance in the region and foster economic growth,” they write. “The fact that Turkey has regressed on issues of press freedom and stalled on judicial reforms undermines the persuasive power of the Turkish democratic model in the wider region.” They also admit that Washington almost never makes this issue a priority in bilateral talks. “As such, US officials and policy analysts focused on defining a cooperative regional agenda. Questions surrounding Turkey’s ongoing democratization, including issues of press freedom and freedom of expression, were therefore often sidelined.”

This, however, has always been the case — meaning freedom of the media has never been a priority when state interests are involved. It was not really a major issue in the 1990s, when the military imposed strict media controls covering the fight against Kurdish terrorism. In fact, Erdogan often refers to this kind of military rule and the fight against the Kurdistan Workers Party (PKK) as the two main obstacles to Turkey’s democratization and the freedom of the media. “The 2014 presidential elections may also reveal the extent to which the current controversies are the product of specific leadership personalities or a case of the familiar tools of power wielded by new hands,” Hoffman and Werz write.

Without getting into much detail, though, Hoffman and Werz provide an informative summary of all the challenges that a free press faces in Turkey — from imprisoned journalists to government pressure and media ownership — and propose some suggestions for correcting the system, as well as related laws to help build a freer atmosphere for the media and expression.

While theirs is not the first or the last analysis focusing on the growing concerns about freedom of the press in Turkey, the timing of its release just two days before Erdogan’s visit to the White House shows how Washington think tanks are focusing on this critical issue.

Obama and Erdogan may not even have time to talk about this issue as a good part of their discussion will focus on how to handle the Syrian civil war, and their differences may appear to be substantial. In a snapshot, Turkey is skeptical about giving a chance to the ideas that came out of the US-Russian led Geneva meeting between the Syrian opposition and Bashar al-Assad’s regime. Erdogan’s government — along with Qatar — prefers regime change in Syria. Surprisingly, even the Saudis are showing some restraint and siding with the more secular groups in the Syrian theater. In addition, Turkey wants the United States to impose a no-fly zone over Syria and provide lethal arms to the opposition. It would be a mistake to expect Obama to give Erdogan what he wants, but he still has to please Turkey so that their differences are not visible.

“Given the turmoil in the region,” write Hoffman and Werz, “Turkey cannot afford to come across as undemocratic or as cracking down on freedom of expression. The issue of press freedom is at the core of Turkey’s development as a modern democracy. Vigorous — and often controversial — internal debate is necessary to help reinforce Turkish leadership in the region and the strategic partnership with the United States.” They write: “The United States wants Turkey to be a capable and secure democratic partner with whom it can engage the broader Middle East, and therefore it should more clearly voice its concerns about the deterioration of press freedom and freedom of expression in the domestic political context.”

That said, Turkish authorities claim that the United States has no right to pass judgment on the practice of governmental restrictions on the press. Trying to rationalize the Turkish court’s order that brought heavy censorship and strict blackout to all kinds of visuals, audio and written publications of the terrorist attacks in Reyhanli on May 11, Deputy Prime Minister Huseyin Celik said, “Try to remember the September 11 attacks. There was such a situation in the US as well.”

There was, however, no court order that imposed censorship after 9/11 of the kind Celik refers to. Although it is unlikely that this issue of freedom expression and press freemdom will be addressed at the meeting between the two leaders, it would be best for US authorities to put these misguided comparisons into context and help build awareness in Turkey on these critical issues and prevent the spread of misinformation. The United States may not be the paragon of virtue on freedom of press issues, but Turkey’s press would be freer — and the Erdogan government more respectful of press freedom — if US rules and practices were applied.

 

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Jewish leaders to Kerry: Confront Hungary’s rising anti-Semitism

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U.S. Secretary of State John Kerry, left, greets Israeli official before wreath-laying ceremony marking Israel's annual day of Holocaust remembrance, Yad Vashem, Jerusalem, April 8, 2013.

Acute concerns over growth of extremist Jobbik party, violence against Jews, cemetery desecration, widespread anti-Jewish sentiment

Times of Israel

The heads of several major American Jewish groups called on Secretary of State John Kerry on Tuesday to confront Hungarian officials about the “alarming rise of anti-Semitism in Hungary.”

“Given the growth of hatred against Jews and other minorities (particularly the Roma) in Hungary, we urge you to keep the issue of intolerance and discrimination squarely on the US-Hungarian bilateral agenda,” the organization leaders urged. “We also encourage you to raise the matter personally in your direct dealings with Hungarian officials.”

 

The letter was addressed to Kerry and Ambassador Michael Kozak, the State Department’s acting special envoy on anti-Semitism.

The Jewish leaders commended the US State Department for its 2012 Human Rights Report that “identified a number of troubling developments” impacting the 100,000-strong Hungarian Jewish community, the largest in central Europe.

These developments included “the rise of the xenophobic and anti-Semitic Jobbik party, which has called for the creation of a list of Jewish public officials, repeated the historic ‘blood libel’ against Jews, and labeled Jews a ‘national security risk.’”

Jobbik is not a member of the current ruling government in Hungary, but holds 47 seats in the National Assembly, the country’s unicameral 386-seat parliament.

The leaders also noted an “increase in violence against Jewish individuals and institutions”; the desecration of Jewish cemeteries and Holocaust memorials; “the proliferation of anti-Semitic materials in the media, on the Internet, and in the streets”; and “the attempted rehabilitation and glorification of World War II-era figures, who were openly anti-Semitic and pro-fascist.”

The letter was signed by the heads of a broad spectrum of US Jewish religious and political groups, including, among others, Rabbi David Zwiebel of the Orthodox umbrella group Agudath Israel, Rabbi Julie Schonfeld of the Conservative rabbis’ group Rabbinical Assembly and Rabbi David Saperstein of the Reform movement’s Religious Action Center in Washington. They were joined by the Anti-Defamation League, the American Jewish Committee, the Simon Wiesenthal Center, the World Jewish Congress, the women’s group Hadassah, and the heads of umbrella bodies, including Jerry Silverman of the Jewish Federations of North America and Rabbi Steve Gutow of the Jewish Council for Public Affairs.

The letter noted Kerry’s promise at the time of the publication of the State Department human rights report that the US would engage “governments at the highest levels and [push] them to live up to their obligations to do right by their people.”

The letter comes just two days after the leadership of the Hungarian Jewish community’s umbrella federation, the Mazsihisz, resigned over accusations that local Jewish leaders had failed to challenge the country’s Prime Minister Viktor Orban’s statements on anti-Semitism at a World Jewish Congress confab a week earlier.

Dr. Peter Feldmajer, president of the Mazsihisz since 1991, quit Sunday, together with other communal leaders, following a no-confidence motion and several hours of fierce debate at the annual meeting of the group at the Budapest Jewish community headquarters.

Feldmajer was blamed for being too soft on Orban, who condemned anti-Semitism in Hungary in a speech to WJC, but who, critics said, did not go far enough in condemning the far-right Jobbik party in his own government.

An ADL poll in 2012 found that 63% of Hungary’s population held negative views of Jews, compared to 47% in 2009.

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US Dollar Collapse and Japan’s Sham Currency War: The Hidden Agenda Behind Japan’s Kamikaze Quantitative Easing

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Global Research

 

US$ dollars have been flooding the financial markets ever since Bernanke launched quantitative easing allegedly to turnaround the US economy. These huge amounts of US$ toilet paper are mainly in financial markets (and in central banks) outside of the United States. A huge chunk is represented as reserves in central banks led by China and Japan.

If truth be told, the real value of the US$ would not be more than a dime and I am being really generous here, as even toilet paper has a value.

That the US dollar is still accepted in the financial markets (specifically by central banks) has nothing to do with it being a reserve currency, but rather that the US$ is backed/supported by the armed might and nuclear blackmail of the US Military-Industrial Complex. The nuclear blackmail of Iran is the best example following Iran’s decision to trade her crude in other currencies and gold instead of the US$ toilet paper.

If the United States were not a military threat and a global bully that can blackmail with impunity the oil exporting countries in the Middle East, the global financial system which hinges on the US$ toilet paper would have collapsed a long time ago.

The issue is why has the US$ not collapsed as it should have by now?

When we apply common sense and logic to the state of affairs, the answer is so simple and it is staring at you.

But, you have not been able to see the obvious because the global mass media, specifically the global financial mass media controlled mainly from London and New York, has created a smokescreen to hide the truth from you.

Let’s analyse the situation in a step by step manner, and apply common sense.

1. The US is the world’s biggest debtor. The biggest creditors are China and Japan, followed by the oil exporting countries in the Middle East. With each passing day, the value of the US$ toilet paper is worth less and less. Like I said earlier, even toilet paper has some intrinsic value. It reaches zero value when everyone has to carry a wheelbarrow of US$ to purchase anything.

2. For the US$ toilet paper creditors, they cannot admit the fact that they have been conned by the global Too Big To Fail Banks (TBTFs) acting in concert with the FED and the Bank of England to accept US$ toilet papers. The central bankers of these countries have a reputation to preserve (not that there is in fact any reputation, for their so-called financial credibility is also part of the scam) and the political leaders that relied on them is in a bigger bind. How can the political leaders be so very stupid to trust these central bankers (who have stashed away in foreign tax havens huge US$ toilet papers as a reward for their complicity). This is the current state of affairs in plain English. They are having sleepless nights worrying if and when the citizens would wise up to this biggest con in history i.e. the promotion and acceptance of fiat currencies, the US$ being the ultimate fiat currency.

3. The global financial elites led by the FED know that this state of affairs is to their advantage and they are exploiting it to the hilt! They also know that no country or organisation has the military resources to threaten the US to stop this global ponzi scheme which has been going on since 1945 and intensified since 1971 when President Nixon de-coupled the US$ from gold. The pound sterling is another story but, it is not relevant for the purposes of this analysis.

4. Additionally, and as a result of the above-stated scam, countries were led to believe and to accept the false economic theory that export generated growth (GDP) should be the foundation of economic development, as the United States having limitless US$ toilet paper has the ability and the means to purchase the global exports, it being the largest consumer market in the world. In the result, the world’s factories and their workers, including those in the developed world such as France and Germany worked their butts off to be rewarded with US$ toilet paper whose value is less than the paper and ink that produce it! The financial frolic went on for more than forty years and came to an abrupt and foreseeable end in the 2008 global financial tsunami.

5. When the party ended, the United States was up to her eyeballs in debts as a result of reckless financial speculation in the global derivatives casino and the consumption binge financed by housing mortgages. Debts must be repaid. But, the US has no means to do so. They cannot produce enough goods to earn the revenue to pay the debts because US manufacturing has been outsourced to the developing world – China became the world’s number 1 factory. So, the financial elite appointed helicopter Bernanke to lead the charge for the US and the UK to use the printing press (digital or otherwise) to print more US$ toilet papers to pay off the debt. In economic jargon, this is “monetising the debt”. It is outright fraud, but no one (i.e. central bankers) in his right mind would admit to this fraud as they would be hung from the lamp-posts if the truth is discovered as was the case when the Italian fascist leader Mussolini was hung by the Italian partisans.

6. Initially, central bankers confronted with this situation and having to face a restless populace embarked on a regime of competitive easing/ devaluation of their currencies. But, the price was horrendous. Inflation spiked in all these countries. But, this scheme of things did not work out as planned for the simple reason, the US$ toilet paper continued to be lower as a result of more QE by Bernanke. China realised the danger and adopted other means to overcome this situation, one of which was to enter into bilateral arrangements with her trading partners to finance trade in their respective currencies. Such agreements were entered between China and Japan, members of BRIC, Malaysia etc. This counter-measure was perceived as a threat to the continued dominance of the US$ toilet paper regime. In the result, Obama declared at the urging of the financial elites (he does not have the grey cells to think) a foreign policy shift – the Asia Pivot to prevent a further deterioration of US$ dominance.

7. When Japan entered the agreement with China, her behaviour was deemed unacceptable since Japan was under the nuclear protection of the US. Japan was caught between a rock and a hard place. It was expected that sooner or later the US would apply the squeeze on Japan to behave in a proper manner. Applying geopolitical strategies, the US towing South Korea along provoked North Korea by launching a military exercise which included flying B-2 bombers which are capable of carrying nuclear weapons. North Korea responded in the manner that was expected. Japan was exposed and in like manner reacted by seeking US protection. To muddy the waters and complicate the situation, the US engineered a Idispute between China and Japan over the sovereignty of the Diaoyu Islands. This was followed by the installation of a new regime in Japan by the election of the Prime Minister Shinzo Abe and the appointment of Haruhiko Kuroda as the Governor of the Bank of Japan (BOJ).

8. Now comes the mechanics of US counter-measures in shoring up the artificial dominance/value of the US$ toilet paper. Japan was ordered to do its part as a quid pro quo for being protected by the US’s nuclear umbrella. A new version of the Plaza Accord must be put in place – a “reverse Plaza Accord”.

9. Let me explain. In the 1985 Plaza Accord, the dollar was devalued to reduce the current account deficit and to help the US recover from the recession of the early 1980s. It was a managed devaluation and the exchange value of the Dollar versus the Yen declined by 51 per cent from 1985 to 1987 – reaching ¥151 per US$1 in March 1987. The dollar continued to slide till 1988. The effect of the strengthened Yen depressed Japan’s exports and brought about the expansionary monetary policies that resulted in the infamous asset bubbles of the late 1980s. The G-6 countries then gathered in 1987 in Paris to arrest the slide of the dollar and to manage and stabilise the international currency markets. The end result was the Louvre Accord. In the next 18 months the dollar strengthened to ¥160 per US$1.

10. However, in the current situation, the devaluation of the US$ toilet paper was the result of massive QEs so as to enable US to monetise her debts. However, for US to continue to monetise her debts and have the world’s central banks agreement to continue to hold dollar reserves, the value of the dollar must appreciate, failing which the dollar would collapse, the US defaulting on her debts, as creditors would no longer accept US$ as payment. The trick was to artificially inflate the value of the dollar without arousing any suspicions.

11. In the 1970s, following the de-coupling of the dollar from gold by President Nixon, the dollar would have collapsed in like manner as it was not backed by gold. It became pure fiat money! The trick then was to create an artificial demand for dollar which would in turn raise the value of the currency. This was effected by the proposal of Kissinger to the Arabs that if they would dollarize their oil exports, the US would guarantee their safety and survival even from the threats of Israel. When the Arabs agreed to this arrangement, every country in the world had to buy oil in US$. Countries have to exchange their currencies into US$ to buy oil. This demand for US$ strengthened the currency and prolonged the US fiat money monopoly.

12. However, this option is no longer available presently as oil is now being sold in other currencies besides the US$. The petro-dollar is no longer in dominance. In any event, the continued use of petro-dollars would spike the oil price and this would be inflationary and detrimental to the US economy as well as the world’s economy in the present economic climate – i.e. deep recession. Another means must be used.

13. This is the reason for the sudden “shock and awe” monetary policy of the new Japanese regime of Shinzo Abe and Haruhiko Kuroda. My detractors will accuse me of indulging in conspiracy theories. But, the facts speak for themselves. I had said earlier, that the G-7 countries have collectively attempted to devalue their currencies but, it did not stem the slide of the US$ because Bernanke was increasing the intensity of QE since 2008. And the EU was not willing and or able to adopt a suicide policy of massive QE as Germany was well aware of such a risk having suffered the negative effects of hyperinflation. China would not kow-tow to the US and in fact together with fellow members of BRIC was adopting counter-measures to confront Bernanke’s QE financial weapon. That left only one country who can be compelled to do the US bidding, to commit Hara-kiri to save and or prolong the US$ toilet paper regime – Japan!

14. And so, Japan launched its sudden massive QE and the desired effect is that now the US$ toilet paper has artificially appreciated in value vis-a-vis the Yen and less so with other currencies. This cannot be disputed by my detractors because:

On May 11, the financial elites of G-7 countries explicitly agreed with this kamikaze policy of Japan.

Koichi Hamada has also declared earlier that the target for this policy is to allow the dollar to rise to ¥110 per US$1 and this rise would be managed in a staggered fashion in small increments (step by step approach) thereby controlling the rate of inflation in Japan which would not be allowed to exceed the agreed target rate.

It is suggested that Japan can do this because it can utilise its huge dollar reserves of US$1.2 Trillion to manage the devaluation! According to Alan Ruskin, the global head of Group of 10 foreign-exchange strategy in New York at Deutsche Bank ASG, he said “I think we are opening up the door to look at 105 in the next few months and 110 by the end of the year …” and this surely must be interpreted to mean that Koichi Hamada’s strategy is definitely in play.

In conclusion, it is my view that such “managed artificial appreciation” of the US$ toilet paper while effective in the short run would fail in the long run because the fundamental issues of the US economy have not been addressed and resolved. Only real economic growth can reverse the dollar’s demise.

Seriously, would Bernanke stop further QE when the yen exchange rate reaches ¥110 by the year end? Has not Bernanke declared that QE would continue till 2015? And since Japan has drawn the Red Line at ¥110, can Japan risk further damage to its economy and continue to back-stop US beyond ¥110?

The US$ quadrillion derivative casino is the millstone around the US and the global economy, and as long as this is not resolved, the crisis would only get worse. Like water, after sufficient heat, the boiling point would be reached.

While I cannot forecast the precise date of the implosion, I am of the view that the end is near, sparked by a black swan event and then snowballed to its final devastation.

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