Paying interest on reserves was intended to prevent “inflation,” but it is having the opposite effect, contracting the money and credit that are the lifeblood of a functioning economy. The whole economic model is wrong. The fear of price inflation has prevented governments from using their sovereign power to create money and credit to serve the needs of their national economies. Instead, they must cater to the interests of a private banking industry that profits from its monopoly power over those essential economic tools.
Whether by accident or design, federal policymakers still have not got it right.
I recall that Viet-Nam era secret writing was blown by an Admiral in his memoirs, causing all future terrorists and secret police to photocopy incoming and outgoing mail. This appears to be publicity we could have done without.
‘The capability of doing mass tracking is possible.’
EXTRACT
Around the world, TruePosition markets something it calls “location intelligence,” or LOCINT, to intelligence and law enforcement agencies. As a homeland security tool, it’s enticing. Imagine an “invisible barrier around sensitive sites like critical infrastructure,” such as oil refineries or power plants, TruePosition’s director of marketing, Brian Varano, tells Danger Room. The barrier contains a list of known phones belonging to people who work there, allowing them to pass freely through the covered radius. “If any phone enters that is not on the authorized list, [authorities] are immediately notified.”
KABUL, AFGHANISTAN The assassination of President Hamid Karzai’s half brother, Ahmed Wali Karzai, along with the recent attack on the Intercontinental Hotel in the heart of the capital in Kabul, underscore the increasingly fragile security situation in Afghanistan.
Both events occurred soon after U.S. President Barack Obama announced his intention to begin withdrawing 30,000 “surge” troops beginning this month, with a goal of removing all American forces by the end of 2014.
With the death of Osama bin Laden and claims that his terror network had been crippled in Afghanistan, the president suggested the United States and its international partners had done all they could in the country.
Afghans would have to assume responsibility for security in Afghanistan, the president said.
The hotel attack, however, immediately raised questions about the Afghan military’s capabilities, with eight terrorists successfully overwhelming one of the most secure places in the capital. It was only after NATO helicopters were called in after an all-night firefight that the siege was brought to an end.
While many complain the assault laid bare the weakness of Afghanistan’s security forces, with some guards reportedly fleeing after the first shots were fired, others note that their response was about as good as could have been expected, given the Afghan forces’ level of equipment and training.
What the attack on the hotel did show was the pervasive presence of the Taliban and their growing alliance with other anti-government forces all across the country.
These insurgents in recent months have steadily ratcheted up the size, frequency and effectiveness of these attacks, while showing an alarming ability to penetrate seemingly impenetrable places.
Recent events included the wholesale escape of nearly 500 Talban captives from a prison in the southern province of Kandahar; the dramatic attack on the defence ministry headquarters in Kabul; and the suicide attack on a high-level military meeting in the northern Takhar province that killed one of Afghanistan’s best commanders and injured a NATO general.
The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. “As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world,” said Sanders. “This is a clear case of socialism for the rich and rugged, you're-on-your-own individualism for everyone else.”
Among the investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. “No agency of the United States government should be allowed to bailout a foreign bank or corporation without the direct approval of Congress and the president,” Sanders said.
Does anyone still remember the GOP of the chowder and marching society, Jell-O salads, Buicks, and cloth coats? Is it conceivable that a Republican could have written the following? —
“Should any political party attempt to abolish social security, unemployment insurance, and eliminate labor laws and farm programs, you would not hear of that party again in our political history. There is a tiny splinter group, of course, that believes you can do these things. Among them are H. L. Hunt (you possibly know his background), a few other Texas oil millionaires, and an occasional politician or business man from other areas. Their number is negligible and they are stupid.”
That was President Eisenhower, writing to his brother Edgar in 1954.
But the Republican Party of 2011 is not your grandfather's GOP, not by a long shot. To be sure, the party always had its share of crackpots, like Robert K. Dornan or William E. Dannemeyer. But the crackpot outliers of two decades ago have become the vital center today: Steve King! Michele Bachman (now a leading presidential candidate as well)! Paul Broun! Patrick McHenry! Virginia Foxx! Louie Gohmert! The Congressional Directory now reads like a casebook of lunacy.
The Republican Party of 2011 believes in three principal tenets (the rest of their platform is essentially window dressing):
1. They solely and exclusively care about their rich contributors, and have built a whole catechism on the protection and further enrichment of America's plutocracy. Their caterwauling about deficit and debt is so much eyewash, intended to con the booboisie. Whatever else President Obama has accomplished (and many of his purported accomplishments are highly suspect), his $4-trillion deficit reduction package did perform the useful service of smoking out Republican hypocrisy. The GOP could not abide so much as a one-tenth of one percent increase on the tax rates of the Walton family (net worth: $86 billion) or the Koch brothers, much less a repeal of the carried interest rule that permits billionaire hedge fund managers to pay income tax at a lower effective rate than cops or nurses.
2. They worship at the altar of Mars. While the me-too Democrats have set a horrible example of keeping up with the Joneses with respect to waging war, they can never match GOP stalwarts such John McCain or Lindsey Graham in their sheer, libidinous enthusiasm for invading other countries. McCain wanted to mix it up with Russia — a nuclear-armed state — during the latter's conflict with Georgia in 2008 (remember? — “we are all Georgians now,” a slogan that did not, fortunately, catch on), while Graham has been persistently agitating for attacks on Iran and intervention in Syria. And these are not fringe elements of the party; they are the leading “defense experts” who always get tapped for the Sunday talk shows. If we are to believe Eric Cantor, a majority of House Republicans will not vote to raise the debt ceiling; yet these are the same people who just passed a defense appropriations bill that increases spending by $17 billion over the prior year's defense appropriation. To borrow Chris Hedges' formulation, war is the force that gives meaning to their lives.
3. Gimme that old time religion. Pandering to religious nuts is a full-time vocation in the GOP. Beginning in the 1970s, religious cranks ceased simply to be a minor public nuisance and grew into the major element of the Republican rank and file. Pat Robertson's strong showing in the 1988 Iowa Caucus signaled the gradual merger of politics and religion in the party. The results are all around us: if the American people poll more like Iranians or Nigerians than Europeans or Canadians on questions of evolution versus creationism, scriptural inerrancy, the existence of angels and demons, and so forth, that result is due to the rise of the Religious Right, its insertion into the public sphere by the Republican Party, and the consequent normalizing of formerly reactionary or quaint beliefs. The Constitution to the contrary notwithstanding, there is now a de facto religious test for the presidency: major candidates are encouraged (or coerced) to “share their feelings” about their “faith” in a revelatory speech; or, some televangelist like Rick Warren dragoons the candidates (as he did with Obama and McCain in 2008) to debate the finer points of Christology, with Warren himself, of course, as the arbiter. Politicized religion is also the sheet anchor of the culture wars. But how did this toxic stew of beliefs come completely to displace Eisenhower Republicanism?
Indeed, if there is one sentiment that unites the crises in Europe and America it is a powerful sense of “baby boomers behaving badly” — a powerful sense that the generation that came of age in the last 50 years, my generation, will be remembered most for the incredible bounty and freedom it received from its parents and the incredible debt burden and constraints it left on its kids.
. . . . . . .
I was struck by one big similarity between what I heard in Tahrir Square in Cairo in February and what one hears in Syntagma Square today. It’s the word “justice.” You hear it more than “freedom.” That is because there is a deep sense of theft in both countries, a sense that the way capitalism played out in Egypt and Greece in the last decade was in its most crony-esque, rigged and corrupt deformation, letting some people get fantastically rich simply because of their proximity to power. So there is a hunger not just for freedom, but for justice. Or, as Rothkopf puts it, “not just for accounting, but for accountability.”
Israel likes to pride itself by claiming it is the only democracy in the Middle East … Uri Avnery, a hero of the 1948 War, a former member of the Knesset, and a prominent peace activist, describes how that claim is becoming a hollow shell.
Years ago I said that there are but two miracles in Israel: the Hebrew language and democracy.
Hebrew had been a dead language for many generations, more or less like Latin, when it was still used in the Catholic church. Then, suddenly, concurrent with the emergence of Zionism (but independently) it sprang back to life. This never happened to any other language.
Theodor Herzl laughed at the idea that Jews in Palestine would speak Hebrew. He wanted us to speak German. “Are they going to ask for a railway ticket in Hebrew?” he scoffed.
Well, we now buy airline tickets in Hebrew. We read the Bible in its Hebrew original and enjoy it tremendously. As Abba Eban once said, if King David were to come to life in Jerusalem today, he could understand the language spoken in the street. Though with some difficulty, because our language gets corrupted, like most other languages.
Anyhow, the position of Hebrew is secure. Babies and Nobel Prize laureates speak it.
The fate of the other miracle is far less assured.
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THE FUTURE – indeed, the present – of Israeli democracy is shrouded in doubt.
