Demons & Dialog

Exposing hidden news, history, & the new world order

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Media and Congressional Smoke and Mirrors/The Real AIG Conspiracy

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The Real AIG Conspiracy
By Prof. Michael Hudson
Global Research, March 18, 2009

It may seem odd, but the public outrage against $135 million in AIG bonuses is a godsend to Wall Street, AID scoundrels included. How can the media be so preoccupied with the discovery that there is self-serving greed to be found in the financial sector? Every TV channel and every newspaper in the country, from right to left, have made these bonuses the lead story over the past two days.

What is wrong with this picture? Is there not something over-inflated about the outrage led most vociferously by Senator Charles Schumer and Rep. Barney Frank, the two leading shills for the bank giveaways over the past year? And does Pres. Obama perhaps find it convenient that finally, at long last, he has been able to criticize something that he believes Wall Street has done wrong? Even the Wall Street Journal has gotten into the act. The government’s takeover of AIG, it pointed out, “uses the firm as a conduit to bail out other institutions.” So much more greed is involved than just that of AIG employees. The firm owed much more to other players – abroad as well as on Wall Street – than the assets it had. That is what drove it to insolvency. And popular opposition has been rising to how Mr. Obama and Mr. McCain could have banded together to support the bailout that, in retrospect, amounts to trillions and trillions of dollars thrown “down the drain.” Not really down the drain at all, of course – but given to financial speculators on the winning “smart” side of AIG’s bad financial gambles.

“The Washington crowd wants to focus on bonuses because it aims public anger on private actors,” it accused in a March 17 editorial. But instead of explaining that the shift is away from Wall Street grabbers of a thousand times the amount of bonuses being contested, it blames its usual all-purpose bete noire: Congress. Where the right and left differ is just whom the public should be directing its anger at!

Here’s the problem with all the hoopla over the $135 million in AIG bonuses: This sum is only less than 0.1% – one thousandth – of the $183 BILLION that the U.S. Treasury gave to AIG as a “pass-through” to its counterparties. This sum, over a thousand times the magnitude of the bonuses on which public attention is conveniently being focused by Wall Street promoters, did not stay with AIG. For over six months, the public media and Congressmen have been trying to find out just where this money DID go. Bloomberg brought a lawsuit to find out. Only to be met with a wall of silence.

Until finally, on Sunday night, March 15, the government finally released the details. They were indeed highly embarrassing. The largest recipient turned out to be just what earlier financial reporters had said was rumored: Mr. Paulson’s own firm, Goldman Sachs, headed the list. It was owed $13 billion in counterparty claims. So here’s the picture that’s emerging. Last September, Treasury Secretary Paulson, from Goldman Sachs, drew up a terse 3-page memo outlining his bailout proposal. The plan specified that whatever he and other Treasury officials did (thus including his subordinates, also from Goldman Sachs), could not be challenged legally or undone, much less prosecuted. This condition enraged Congress, which rejected the bailout in its first incarnation.

It now looks as if Mr. Paulson had good reason to put in a fatal legal clause blocking any clawback of funds given by the Treasury to AIG’s counterparties. This is where public outrage should be focused.

Instead, the leading Congressional shepherds of the bailout legislation – along with Mr. Obama, who came out in his final, Friday night presidential debate with Sen. McCain strongly in favor of the bailout in Mr. Paulson’s awful “short” version – have been posing as conspicuously as possible for the media to cover a deflected target – the AIG executives receiving bonuses, not the company’s counterparties.

There are two questions that one always must ask when a political operation is being launched. First, qui bono? Who benefits? And second, why now? In my experience, timing almost always is the key to figuring out the dynamics at work.

Regarding qui bono, what does Sen. Schumer, Rep. Frank, Pres. Obama and other Wall Street sponsors gain from this public outcry? For starters, it depicts them as hard taskmasters of the banking and financial sector, not its lobbyists carrying water for one giveaway after another. So the AIG kafuffle has muddied the water about where their political loyalties really lie. It enables them to strike a misleading pose – and hence to pose as “honest brokers” next time they dishonestly give away the next few trillion dollars to their major sponsors and campaign contributors.

Regarding the timing, I think I have answered that above. Talking about AIG bonuses has effectively distracted attention from the AIG counterparties who received the $183 billion in Treasury giveaways. The “final” sum to be given to its counterparties has been rumored to be $250 billion, do Sen. Schumer, Rep. Frank and Pres. Obama still have a lot more work to do for Wall Street in the coming year or so.

To succeed in this work – while mitigating the public outrage already rising against the bad bailouts – they need to strike precisely the pose that they’re striking now. It is an exercise in deception.

The moral should be: The wetter the crocodile tears shed over giving bonuses to AIG individuals (who seem to be largely on the healthy, bona fide insurance side of AIG’s business, not its hedge-fund Ponzi-scheme racket), the more they will distract public attention from the $180 billion giveaway, and the better they can position themselves to give away yet more government money (Treasury bonds and Federal Reserve deposits) to their favorite financial charities.

Isa 52:15 – “So shall he sprinkle many nations; the kings shall shut their mouths at him: for that which had not been told them shall they see; and that which they had not heard shall they consider.”

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http://astore.amazon.com/dddc-20

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Written by Michael Cooper

March 19, 2009 at 5:36 am

AIG: The Nexus of Capital, Debt and Insurance

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The AIG Bailout: It is not about regulation and de-regulation, as Washington lawmakers would like you to believe. It is also not about the inability to control derivative transactions, as self-styled experts are claiming on your television sets.

In fact, if the facts are closely scrutinized, the alarm bells are all ringing the wrong jagged tune.

What we are facing today is the complete lack of comprehension of the very nexus which triggered the most remarkable phase of capital accumulation following the Second World War.

http://yourmortgageoryourlife.wordpress.com/2009/03/03/aig-the-nexus-of-capital-debt-and-insurance/

Written by Michael Cooper

March 4, 2009 at 4:50 pm

Industrialized Civilization Must Collapse

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By Betty Freauf

March 4, 2009
NewsWithViews.com

Dr. D. L. Cuddy wrote in February 1995 The Daily Record, “Is World Financial Collapse Possible”? He referred to the May 1990 issue of West Magazine where a writer by the name of Daniel Wood related a conversation he had with Maurice Strong regarding a novel Strong wanted to write. Wood writes: “Strong explains as background to the telling of the novel’s plot, the World Economic Forum convenes in Davos, Switzerland… A small group of those world leaders ‘would come to the conclusion that the rich countries would not sign an agreement (like at the Earth Summit in 1992) reducing their impact upon the environment, so in order to save the plant, the group decides: Isn’t the only hope for the planet that the industrialized civilization collapse?’”

President Obama has just released his $3.6 trillion budget which doesn’t even include the bank bailouts, the Stimulus package or the Omnibus bill under consideration, future promised entitlements and I’m betting this handful of evil world leaders – we can call the international banksters – are meeting in Davos, Switzerland knowing full well America’s current misleaders have absolutely no plan to pay off this monumental debt which is meant to reduce America to a third-world status, and they are talking of ways to bring in a global currency and in order to have a global currency, we’ll have to have a global tax. Catherine Austin Fitts in her February 14, 2009 article: Financial Coup d’Etat called this capital being sucked out of country after country a “global heist.”

Our federal government, our states, our counties and our cities are all bankrupt. You’ll recall President Barack Obama’s chief of staff, Rahm Israel Emanuel, said no crisis should be wasted. The Money Powers are making their move and the Democrats are planning to keep Barack Obama in the White House until he dies. Who would have believed a leadership coup d’Etat could be pulled off right under our noses in America?

I even heard Rush Limbaugh mention a coup the week of February 23rd.

A European military bride and friend of mine recently said what is happening in America is exactly what happened in Europe and callers to radio shows who originate from other countries also say the same thing. They see it but Americans can’t see it until it’s too late. My friend reminded me of what Rev. Martin Neimoller, a German Lutheran pastor, arrested by the Gestapo in 1937 has often been quoted: In Germany they came first for the Communists, and I didn’t speak up because I wasn’t a Communist. Then they came for the Jews, and I didn’t speak up because I wasn’t a Jew. Then they came for the trade unionists, and I didn’t speak up because I wasn’t a trade unionist. They they came for the Catholics, and I didn’t speak up because I was a Protestant. Then they came for me and by that time no one was left so speak up. In other words, we should never empower a lion and then complain when he eats us for lunch.

These world leaders had to find someone they could groom for a few years to pull this gigantic collapse off – enter President Democrat Barack Obama – a man with questionable credentials to even serve as our president and someone who no one heard about outside of Illinois until the presidential election. It was a Democrat Jimmy Carter replay.

Joan Veon says one-world government isn’t coming, it’s here. Foolish American voters in November 2008 didn’t realize they were embracing the iron fist of totalitarianism when they voted for the guy with a funny name. This messiah we now have in the White House relies on his Chief of Staff, Rahm Israel Emanuel, to run the office of President while he travels around the country using his usual charismatic and persuasive ways to continue to mesmerize enough Americans to make him dangerous.

As I’m drafting this article, the Conservative Political Action Committee (CPAC) is meeting this weekend in Washington, D.C. (Feb. 25, 26, 27, 28) Back in October 2006, Rush Limbaugh was doing everything to allegedly distance himself from the conservatives but now overflow rooms have been set up for those who wish to hear keynote speaker radio talk show host Rush Limbaugh. The news reports there are 9,000 in attendance.

The Hegelian Dialectic blame game is on. While the GOP’s new chairman, Michael Steele, talks about all the Democrat earmarks in the Stimulus bill, he fails to point out that 40% of those earmarks belong to Republicans. I have long been skeptical of The Heritage Foundation, a sponsor of the CPAC. Is that organization a wolf in sheep’s clothing as some claim? Is there really a connection between the Fabian Socialists and the Heritage Foundation? Is it possible they are more “radical” than “conservative?” The CPAC cheerleaders at the conference still promote Reaganomics as if it were Utopia. Are they trillions of dollars short and years too late? Have we been set up and sold out by the enemies from within? Article Continues

Written by Michael Cooper

March 4, 2009 at 4:33 pm

AMERICA IS NOT PREPARED FOR WHAT’S COMING

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By Paul Proctor
February 25, 2009
NewsWithViews.com

There’s certainly a lot of fear, uncertainty and confusion in our world today, isn’t there? Many of us are just downright scared; but few are prepared for what surely lies ahead.

Recognizing storm clouds on the horizon really requires no discernment. Anyone with a TV can tell we’re in big trouble.

Oh, we can sit around and complain about all the bad news being reported and crave a more positive spin on it all – but really, that would just be living in denial, wouldn’t it? And, I don’t believe that’s the answer.

It seems to me that the vast majority of us find our solace these days in all the amusements our world has to offer as a means to evade and alleviate those fears and concerns – distractions and diversions, if you will – those who don’t just surrender themselves over to drink or drugs to manage the stress of it all.

Sadly, those amusements have become a staple in the Christian life too, as evidenced by all of the coffee shops, recreation centers, celebrity concerts and high-tech venues required now just to gather crowds and hold their attention at church. What does this say about the power of God to draw all men unto Himself? (John 12:32)

It says to me that today’s church no longer believes that Jesus is enough – that the Living Word of God can’t really compete in a sensory-driven world and that the Holy Spirit needs our help.

It’s not even enough to “tickle our ears” anymore. Now we need our eyes tickled, our noses tickled, our taste buds tickled and our funny bones tickled just to keep them coming back for more!

Is this what Jesus hung on a cross for – to see that His church could one day have the best evangetainment and facilities that money can buy?

Could this be what the Apostle Paul was referring to when he wrote to Timothy about those who had a form of godliness but denied the power thereof? (2nd Timothy 3:5)

Has the love of money so perverted the minds of Christians today that they can’t evangelize without it? Who needs the power of God when you’ve got the power of money? (1st Timothy 6:10)

Maybe this is why the economy is crashing to the ground – to remind us, yet again, that man cannot live by bread and circus alone – that he needs the power of God in Jesus Christ to put his fears to rest, find forgiveness and peace with Him and have eternal life in a kingdom not of this world.

Preparation for what’s coming begins on one’s knees in humility, confession and prayer.

“And the world passeth away, and the lust thereof: but he that doeth the will of God abideth for ever.” – 1st John 2:17

© 2009 Paul Proctor – All Rights Reserve

Written by Michael Cooper

February 25, 2009 at 5:09 pm

The Corbett Report: The New Media

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A new media is rising to displace the old corporate controlled media paradigm. But what is the new media, what is it replacing, and what challenges does it face? This week we talk to radio hosts, webmasters, activists and infowarriors to find out more about the new grassroots internet-based citizen journalism phenomenon.

Also this week, I\’d like to feature our video promoting my interview with Alex Jones. In this extract from our interview, Alex Jones addresses the citizen journalism phenomenon and some of the challenges it faces.  Please help to spread this link around the internet.

http://veracityvideos.com/play.php?vid=288

Written by Michael Cooper

February 22, 2009 at 5:07 pm

14th Bank Failure of 2009

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Silver Falls Bank, Silverton, Oregon, was closed today by the Oregon Department of Consumer and Business Services, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Bank, Corvallis, Oregon, to assume all of the deposits of Silver Falls Bank.

The three branches of Silver Falls Bank will reopen on Monday as branches of Citizens Bank. Depositors of Silver Falls Bank will automatically become depositors of Citizens Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until Citizens Bank can fully integrate the deposit records of Silver Falls Bank…….

14th Bank Failure of 2009

Written by Michael Cooper

February 21, 2009 at 8:55 pm

global financial coup d’etat underway

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In the fall of 2001 I attended a private investment conference in London to give a paper, The Myth of the Rule of Law or How the Money Works: The Destruction of Hamilton Securities Group. The presentation documented my experience with a Washington-Wall Street partnership that had:
* Engineered a fraudulent housing and debt bubble;
* Illegally shifted vast amounts of capital out of the U.S.;
* Used “privatization” as a form of piracy – a pretext to move government assets to private investors at below-market prices and then shift private liabilities back to government at no cost to the private liability holder.
Other presenters at the conference included distinguished reporters covering privatization in Eastern Europe and Russia. As the portraits of British ancestors stared down upon us, we listened to story after story of global privatization throughout the 1990s in the Americas, Europe, and Asia.
Slowly, as the pieces fit together, we shared a horrifying epiphany: the banks, corporations and investors acting in each global region were the exact same players. They were a relatively small group that reappeared again and again in Russia, Eastern Europe, and Asia accompanied by the same well-known accounting firms and law firms.
Clearly, there was a global financial coup d’etat underway.
The magnitude of what was happening was overwhelming. In the 1990’s, millions of people in Russia had woken up to find their bank accounts and pension funds simply gone – eradicated by a falling currency or stolen by mobsters who laundered money back into big New York Fed member banks for reinvestment to fuel the debt bubble…….

http://solari.com/blog/?p=2058

Written by Michael Cooper

February 21, 2009 at 8:50 pm