Thursday, July 29, 2010

مَن يُخرج المسيحيين من عين النار؟




مَن يُخرج المسيحيين من عين النار؟
تعيش الساحة السياسية حالة من القلق والترقب، يرافقها خطابات عالية النبرة وتهديدات متبادلة بين الاطراف السياسية، تتخذ من المحكمة الدولية وقرارها الاتهامي وقودًا لتوتير الساحة اللبنانية وتطبيقًا لتنبؤات أشكينازي والصحافة الاسرائيلية حول اشكالات وتوترات سيعيشها لبنان بموازاة صدور قرار بلمار الاتهامي.
لعل جولة سريعة على تصريحات مسيحيي الموالاة، ومقارنتها بما يصدر من تصريحات عن تيار المستقبل نفسه يجد أن الفريق المسيحي "تبرع" بجعل نفسه رأس حربة في المشروع التآمري القادم على لبنان، بينما يجهد الفريق الآخر في الموالاة في تنحية نفسه لتجنب فتنة سنية شيعية يتعذّر حسم الوضع الميداني فيها لصالح من يريد اشعالها، وعلى ما يبدو لن تنجو منها المنطقة بأكملها.
فهل يرى اصحاب هذا المخطط أن المدخل قد يكون بإشعال فتنة مسيحية – مسيحية أو مسيحية اسلامية؟ وهل يبقى مسيحي في الشرق، في حال اندلاع هذه الفتن، ودخول المسيحيين وقود فيها؟

قبل أن تطل تباشير المحكمة الدولية بعد، وفي ظل الكلام عن قرار اتهامي سيصدر، بادر البطريرك صفير الى التصريح بمعرفته أن "المحكمة الدولية دائمًا ما تكون نزيهة وتحكم بالحق، وعلينا أن نؤمّن لها حرية العمل من دون تأثير عليها، وذلك لكي تنطق بالحكم العادل" ولكن ما رأي البطريرك صفير بشهود الزور، وبظلم ضباط اربعة سجنوا ظلمًا؟
وإذا كان البطريرك قد استند الى ما قاله له جعجع من أنه ليس هناك من شهود زور، وأنه يرفض تشكيل لجنة للبحث في هذا الامر، وذلك في تصريح له في 27 تموز الجاري، فيبدو أن جعجع لم يطلع غبطته أنه عاد واعترف بان هناك فعلاً شهود زور، وأن سوريا هي التي أرسلتهم وفبركتهم وذلك في تصريح آخر بعد يومين فقط أي في 29 تموز الجاري، فاجتهد البطريرك على أساس التصريح الاول، فأخطأ في مواكبة التصريح الثاني.

ان الازمة المستجدة، تظهر أن بعض المسيحيين لم يتعلموا شيئًا من دروس الماضي، ويبدو أن بعضهم يراهن اليوم على الاميركيين كما راهن عليهم عام 1989. في المرة السابقة، راهن جعجع على الاميركيين ولبى طلبًا صريحًا لمورفي بالهجوم على العماد عون، فكان أن اوصله رهانه الى السجن، وتحمّل مسيحيو لبنان ما تحملوه من تهميش وهجرة بسبب الرهانات الخاطئة ومحاولة فرض واقع سياسي وعسكري في المناطق المسيحية.
بيد أن تجربة السجن لم تغيّر في جعجع، فها هو اليوم يراهن على الاميركيين، ويستقوي بـ "الشقيقة" مصر، وسفيرها الذي يطمح الى أن يكون سفيرًا فوق العادة كما كان قبله جيفري فيلتمان ورستم غزالي.
والسؤال: على ماذا يتكل مسيحيو الموالاة ومنهم جعجع لاطلاق تصريحات نارية بهذا الشكل؟
هل يتكل جعجع اليوم، على مخطط بدأ تنفيذه مع الاشكالات المفتعلة التي قام بها اليونيفيل في الجنوب، والتي هدفت من ضمن مخطط متعدد الابعاد، الى ابعاد الجيش اللبناني واشغاله في الجنوب لتخلو الساحة عسكريًا في الساحة المسيحية، للتحضير والتدريب والتحضر لمواكبة ميدانية لأمر ما يحضّر اقليميًا؟
هل يتكل مسيحيو الموالاة، على ما تروّج له اسرائيل من ضربة عسكرية واشكالات في ايلول القادم ترافق القرار الظني، فيستعدون لحجز دور لهم منذ الآن في سيناريو الفتنة القادمة؟
وماذا لو تمّ احتواء الوضع، وأدّت التدخلات الاقليمية والوساطات الى افشال سيناريو الفتنة، واتفق الحريري وحزب الله، على مخرج للأزمة، ماذا سيكون موقف هؤلاء؟ هل سيرفضون الحل؟ وهل سيبقون وحيدين في الساحة ضد حزب الله؟
هل يدرك هؤلاء أن لا مصلحة للمسيحيين في الدخول عنوة الى مشكلة لا طاقة لهم على احتمال نتائجها مهما كانت؟
هل مَن يسدي اللبنانيين والمسيحيين خدمة، ويذكّر جعجع بكوارث رهاناته السابقة؟ وهل من يخبره عما فعلته مصر "الشقيقة" بالفلسطينيين؟
وهل من يخبر مسيحيي الموالاة ما كان من أمر جميع الذين حاولوا ركوب الموجات الدولية والاقليمية من المسيحيين، فوجدوا أنفسهم وأدخلوا المسيحيين في دوامات لم تنته ولن تنتهي الا بتقليص عددهم وانقراضهم من الشرق؟ هل من يخبرهم أنه لم يبقَ مسيحيين في العراق، وان مسيحيي فلسطين باتوا معدودين، وأن مسيحيي لبنان تقلصوا حتى بات عددهم يوازي ثلث السكان المقيمين؟
هل من يسألهم: ماذا فعل الاميركيون للمسيحيين في العراق، وكيف فرغ العراق من مسيحييه؟

من المؤكد أن مسيحيي لبنان ومن خلالهم مسيحيي الشرق يعيشون خطرًا حقيقيًا على وجودهم ودورهم، وعليهم ان يدركوا ذلك، وأن يتيقنوا أن الغرب تخلى عنهم منذ زمن بعيد، وإن مصلحته تقضي بالتخلص منهم كما فعل بالمسيحيين العراقيين والفلسطينيين من قبلهم، وكما يحاول أن يفعل الحكم المصري بأقباط مصر.
لذا، من واجب مسيحي لبنان اليوم مقاومة ما يحضّر ضدهم وعبرهم من مؤامرات على الوطن وعلى وجودهم فيه، وذلك عبر:
- النأي بالذات عن لعب أي دور في الفتنة القادمة أو سيناريوهات التوتير القادمة الى لبنان، فلن يسلم منها أحد إن اندلعت، بل ستحرق لبنان بمسلميه ومسيحييه.
- الاتعاظ من التجارب والاستفادة منها في المستقبل، وعدم الوثوق ولا الاتكال على الدول الاجنبية للحماية.
- الايمان بأن لا خيار لهم الا الاندماج بالمحيط وبأن لبنان جزء لا يتجزأ من المنطقة، وعليه مواجهة ما يحاك له بامتلاك جميع مقومات القوة.
- الكفّ عن التطلع الى تقسيم لبنان، وقيام دويلة طائفية، لأن من شأن هذا الامر أن ينهي لبنان ويفني المسيحيين قبل المسلمين فيه.
والاهم من هذا كله، تقديم المصلحة العامة على المصالح الفردية الذاتية.

Wednesday, July 28, 2010

Israel's list of war crimes and broken world records

Israel, a country the size of New Jersey can only claim to the following achievements:

. Israel has launched wars of agression on 6 neighboring countries and is planning more wars on a daily basis....

• Israel was established upon the ruins of another nation that it destroyed; Palestine

• Israel hold the world record in the number of towns & villages it ethnically cleansed...500+

• Israel holds the world record in the number of refugees it deported...4 million +

• Israel holds the world record in the number of homes it demolished...60 thousand +

• Israel is the country with the highest record of UN condemnation...500+ times

• Israel is the country with the highest number of protective US Security council vetoes...100+ times

• Israel has killed more innocent civilians per capita than any other country...50 thousand+

• Israel has imprisoned more civilians per capita than any other country...250 thousand+

• Israel has rendered more innocent civilians handicapped per capita than any other country...50 thousand+

• Israel has injured more innocent civilians per capita than any other country...200 thousand+

• Israel has only two countries to defend its policies in the United Nations. These countries are America & Micronesia. The population for Micronesia as of June 2008 is only 108,000

• Israel is the only country on Earth that denies the right of return of refugees

• Israel is the only country on Earth that still occupies a whole other country & parts of two other countries

• Israel is the only country on Earth that publicly, steals the water of its neighbors

• Israel is the only country on Earth that has legalized home demolishing as a method of collective punishment

• Israel is the only country on Earth that uproots trees as a method of collective punishment

• Israel is the only country on Earth that deliberately targets civilian infrastructure and justifies it

• Israel is the only country on Earth that legalized assassination

• Israel stands unique in using human shields in military operations

• Amongst all countries, Israel is the only one that has legalized torture

• Israel is the only country on Earth that builds illegal settlements in occupied lands

• Israel is the only country on Earth that publicly jails activists without trial

• According to the Guinness Book of World Records, Israel has created the highest number of checkpoints

• According to the Guinness Book of World Records, Israel holds the world record in the number of curfew it has installed on the Palestinians

• Israel is the only country on Earth whose checkpoints deny women access to hospitals, they give birth alone and babies usually die

• Israel is exceptional in being the only country on Earth whose checkpoints denies patients access to hospitals, and they end up dying

• Israel is the only country on Earth whose checkpoints are where wedding parades come to an end

• Israel is the only country on Earth who check points schoolchildren, denies them access to school, and puts an end to their classes

• Israel is one of two countries that, against International Law, use cluster bombs and depleted uranium bombs. America is the other...what a surprise huh?

• Israel holds the world record in the number of soldiers refusing to serve in the army

• Israel despite being a rich country, receives the highest financial aid, more than the sum aid to all sub-Saharan Africa!

• Israel claims its enemies want to wipe it off the map, but it has indeed wiped a whole country called Palestine off the map!

• Israel is the country that has introduced nuclear weapons into the Middle East. But the only country in the Middle East that refuses to sign the nuclear non-proliferation treaty

• After East Germany, Israel is the only country that is building a segregation wall

• Second to South Africa, Israel is the only country to establish an apartheid regime

• Israeli engineers developed the worlds' first iron gates on roads

• Israeli engineers developed the worlds' first cities turned into jails with gates and opening hours

• Israeli engineers developed the worlds' first apartheid walls

• Israeli engineers developed the worlds' first electrified segregation fences

• Israeli engineers developed the worlds' first 'eyes specific' rubber bullets

• Israeli engineers developed the worlds' first abortion efficient, infant killing tear gas

• Israeli engineers developed the worlds' first humiliation guaranteed human cages

• Israel is the only country on Earth that has a political party that publicly advocates ethnic cleansing of native citizens (Palestinians)

• Israel is the only country on Earth that still has racist laws that discriminate against native citizens (Palestinians)

• Israel is the only country on Earth known to have a memorial dedicated to a terrorist where his followers gather and dance

• Israel is the only country on Earth that imprisons kids for political reasons

• Israel is the only country on Earth where you get a one month community service for intentionally, smashing the head of a child! How much more proof do people need to see that Israel is a terrorist nation?????!!!!!!!!!!

• Israel is the only country on Earth that does not hold its soldiers accountable for shooting peace activists in cold blood

• No other country on Earth has towns and cities allocated exclusively for one ethnic group

• The only country on Earth, where people live in homes stolen from living refugees is, Israel

• The only place on Earth where people cultivate fields stolen from living refugees is, Israel

• Israel has the highest number of towns built upon ethnically cleansed villages, whose former residents are living refugees

• Israel ranks amongst the top countries in lack of Democracy, security and peace.."...

In the more than 40 years that Israel has militarily occupied the West Bank, the Green Line – Israel’s pre-1967 borders – has been erased by the likes of illegal settlements, and road networks. Nowhere is this absorption of the Occupied Territories more apparent than in East Jerusalem, where close to 200,000 Israelis live in illegal settlements built in municipal boundaries that were expanded by Israel to include West Bank land.
Reality in East Jerusalem in 2010 means municipal policies – supported by the Israeli state – that fly in the face of international law: Palestinian homes are demolished, the illegal separation wall carves up Palestinian neighborhoods, and residency rights are revoked.
The gaping disparity between Israeli officials’ rhetoric in the West and their practice on the ground is no starker than in East Jerusalem. Israeli Prime Minister Benjamin Netanyahu and Jerusalem Mayor Nir Barkat assure journalists and diplomats that the city is “open” and “free” for all its inhabitants, the facts tell a different story – one of exclusion and discriminatory municipal policies...".

Saturday, July 24, 2010

The Trilateral Commission: Usurping Sovereignty



By Patrick Wood

[Editor’s note: For ease of reading, all members of the Trilateral Commission appear inbold type]

“President Reagan ultimately came to understand Trilateral’s value and invited the entire membership to a reception at the White House in April 1984”
— David Rockefeller, Memoirs, 20021


{sidebar id=1} According to each issue of the official Trilateral Commission quarterly magazine Trialogue:

Trilateral Commission LogoThe Trilateral Commission was formed in 1973 by private citizens of Western Europe, Japan and North America to foster closer cooperation among these three regions on common problems. It seeks to improve public understanding of such problems, to support proposals for handling them jointly, and to nurture habits and practices of working together among these regions.”2

Further, Trialogue and other official writings made clear their stated goal of creating a “New International Economic Order.” President George H.W. Bush later talked openly about creating a “New World Order”, which has since become a synonymous phrase.

This paper attempts to tell the rest of the story, according to official and unofficial Commission sources and other available documents.

The Trilateral Commission was founded by the persistent maneuvering of David Rockefellerand Zbigniew Brzezinski. Rockefeller was chairman of the ultra-powerful Chase Manhattan Bank, a director of many major multinational corporations and “endowment funds” and had long been a central figure in the Council on Foreign Relations (CFR). Brzezinski, a brilliant prognosticator of one-world idealism, was a professor at Columbia University and the author of several books that have served as “policy guidelines” for the Trilateral Commission. Brzezinski served as the Commission’s first executive director from its inception in 1973 until late 1976 when he was appointed by President Jimmy Carter as Assistant to the President for National Security Affairs.

The initial Commission membership was approximately three hundred, with roughly one hundred each from Europe, Japan and North America. Membership was also roughly divided between academics, politicians and corporate magnates; these included international bankers, leaders of prominent labor unions and corporate directors of media giants.

The word commission was puzzling since it is usually associated with instrumentalities set up by governments. It seemed out of place with a so-called private group unless we could determine that it really was an arm of a government – an unseen government, different from the visible government in Washington. European and Japanese involvement indicated a world government rather than a national government. We hoped that the concept of a sub-rosa world government was just wishful thinking on the part of the Trilateral Commissioners. The facts, however, lined up quite pessimistically.

If the Council on Foreign Relations could be said to be a spawning ground for the concepts of one-world idealism, then the Trilateral Commission was the “task force” assembled to assault the beachheads. Already the Commission had placed its members in the top posts the U.S. had to offer.

Brzezinski and CarterPresident James Earl Carter, the country politician who promised, “I will never lie to you,” was chosen to join the Commission byBrzezinski in 1973. It was Brzezinski, in fact, who first identified Carter as presidential timber, and subsequently educated him in economics, foreign policy, and the ins-and-outs of world politics. Upon Carter’selection, Brzezinski was appointed assistant to the president for national security matters. Commonly, he was called the head of the National Security Council because he answered only to the president – some said Brzezinski held the second most powerful position in the U.S.

Carter’s running mate, Walter Mondale, was also a member of the Commission. (If you are trying to calculate the odds of three virtually unknown men, out of over sixty Commissioners from the U.S., capturing the three most powerful positions in the land, don’t bother. Your calculations will be meaningless.)

On January 7, 1977 Time Magazine, whose editor-in-chief, Hedley Donovan was a powerful Trilateral, named President Carter “Man of the Year.” The sixteen-page article in that issue not only failed to mention Carter’s connection with the Commission but also stated the following:

“As he searched for Cabinet appointees, Carter seemed at times hesitant and frustrated disconcertingly out of character. His lack of ties to Washington and the Party Establishment – qualities that helped raise him to the White House – carry potential dangers. He does not know the Federal Government or the pressures it creates. He does not really know the politicians whom he will need to help him run the country.”3

Is this portrait of Carter as a political innocent simply inaccurate or is it deliberately misleading? By December 25, 1976 – two weeks before the Time article appeared - Carterhad already chosen his cabinet. Three of his cabinet members – Cyrus Vance, Michael Blumenthal, and Harold Brown – were Trilateral Commissioners; and the other non-Commission members were not unsympathetic to Commission objectives and operations. In addition, Carter had appointed another fourteen Trilateral Commissioners to top government posts, including:

    • C. Fred Bergsten (Under Secretary of Treasury)
    • James Schlesinger (Secretary of Energy)
    • Elliot Richardson (Delegate to Law of the Sea)
    • Leonard Woodcock (Chief envoy to China)
    • Andrew Young (Ambassador to the United Nations)

As of 25 December 1976, therefore, there were nineteen Trilaterals, including Carter andMondale, holding tremendous political power. These presidential appointees represented almost one-third of the Trilateral Commission members from the United States. The odds of that happening “by chance” are beyond calculation!

Nevertheless, was there even the slightest evidence to indicate anything other than collusion? Hardly! Zbigniew Brzezinski spelled out the qualifications of a 1976 presidential winner in 1973:

“The Democratic candidate in 1976 will have to emphasize work, the family, religion and, increasingly, patriotism…The new conservatism will clearly not goback to laissez faire. It will be a philosophical conservatism. It will be a kind of conservative statism or managerism. There will be conservative values but areliance on a great deal of co-determination between state and the corporations.”4

On 23 May 1976 journalist Leslie H. Gelb wrote in the not-so-conservative New York Times,“(Brzezinski) was the first guy in the Community to pay attention to Carter, to take him seriously. He spent time with Carter, talked to him, sent him books and articles, educated him.”5 Richard Gardner (also of Columbia University) joined into the “educational” task, and as Gelb noted, between the two of them they had Carter virtually to themselves. Gelb continued: “While the Community as a whole was looking elsewhere, to Senators Kennedy and Mondale…it paid off. Brzezinski, with Gardner, is now the leading man on Carter’sforeign policy task force.”6

Although Richard Gardner was of considerable academic influence, it should be clear thatBrzezinski was the “guiding light” of foreign policy in the Carter administration. Along with Commissioner Vance and a host of other Commissioners in the State Department,Brzezinski had more than continued the policies of befriending our enemies and alienating our friends. Since early 1977 we had witnessed a massive push to attain “normalized” relations with Communist China, Cuba, the USSR, Eastern European nations, Angola, etc. Conversely, we had withdrawn at least some support from Nationalist China, South Africa, Zimbabwe (formerly Rhodesia), etc. It was not just a trend – it was an epidemic. Thus, if it could be said that Brzezinski had, at least in part, contributed to current U.S. foreign and domestic policy, then we should briefly analyze exactly what he was espousing.

Needed: A More Just and Equitable World Order

The Trilateral Commission held their annual plenary meeting in Tokyo, Japan, in January 1977. Carter and Brzezinski obviously could not attend as they were still in the process of reorganizing the White House. They did, however, address personal letters to the meeting, which were reprinted in Trialogue, the official magazine of the Commission:

“It gives me special pleasure to send greetings to all of you gathering for the Trilateral Commission meeting in Tokyo. I have warm memories of our meeting in Tokyo some eighteen months ago, and am sorry I cannot be with you now.

“My active service on the Commission since its inception in 1973 has been a splendid experience for me, and it provided me with excellent opportunities to come to know leaders in our three regions.

“As I emphasized in my campaign, a strong partnership among us is of the greatest importance. We share economic, political and security concerns that make it logical we should seek ever-increasing cooperation and understanding. And this cooperation is essential not only for our three regions, but in the global search for a more just and equitable world order (emphasis added). I hope to see you on the occasion of your next meeting in Washington, and I look forward to receiving reports on your work in Tokyo.

“Jimmy Carter”7

Brzezinski’s letter, in a similar vein, follows:

“The Trilateral Commission has meant a great deal to me over the last few years. It has been the stimulus for intellectual creativity and a source of personal satisfaction. I have formed close ties with new friends and colleagues in all three regions, ties which I value highly and which I am sure will continue.

“I remain convinced that, on the larger architectural issues of today, collaboration among our regions is of the utmost necessity. This collaboration must be dedicated to the fashioning of a more just and equitable world order (emphasis added). This will require a prolonged process, but I think we can look forward with confidence and take some pride in the contribution which the Commission is making.

“Zbigniew Brzezinski”8

The key phrase in both letters was “more just and equitable world order.” Did this emphasis indicate that something was wrong with our present world order, that is, with national structures? Yes, according to Brzezinski, and since the present “framework” was inadequate to handle world problems, it must be done away with and supplanted with a world government.

In September 1974 Brzezinski was asked in an interview by the Brazilian newspaper Vega.“How would you define this new world order?” Brzezinski answered:

“When I speak of the present international system I am referring to relations in specific fields, most of all among the Atlantic countries; commercial, military, mutual security relations, involving the international monetary fund, NATO etc. We need to change the international system for a global system in which new, active and creative forces recently developed – should be integrated. This system needs to include Japan. Brazil, the oil producing countries, and even the USSR, to the extent which the Soviet Union is willing to participate in a global system.”9

When asked if Congress would have an expanded or diminished role in the new system,Brzezinski declared “…the reality of our times is that a modern society such as the U.S. needs a central coordinating and renovating organ which cannot be made up of six hundred people.”10

Brzezinski developed background for the need for a new system in his book Between Two Ages: America’s Role in the Technetronic Era (1969). He wrote that mankind has moved through three great stages of evolution, and was in the middle of the fourth and final stage. The first stage he described as “religious,” combining a heavenly “universalism provided by the acceptance of the idea that man’s destiny is essentially in God’s hands” with an earthly “narrowness derived from massive ignorance, illiteracy, and a vision confined to the immediate environment.”

The second stage was nationalism, stressing Christian equality before the law, which “marked another giant step in the progressive redefinition of man’s nature and place in our world.” The third stage was Marxism, which, said Brzezinski, “represents a further vital and creative stage in the maturing of man’s universal vision.” The fourth and final stage wasBrzezinski’s Technetronic Era, or the ideal of rational humanism on a global scale – the result of American-Communist evolutionary transformations.11

In considering our structure of governance, Brzezinski stated:

“Tension is unavoidable as man strives to assimilate the new into the framework of the old. For a time the established framework resiliently integrates the new by adapting it in a more familiar shape. But at some point the old framework becomes overloaded. The newer input can no longer be redefined into traditional forms, and eventually it asserts itself with compelling force. Today, though, the old framework of international politics – with their spheres of influence, military alliances between nation-states, the fiction of sovereignty, doctrinal conflicts arising from nineteenth century crises – is clearly no longer compatible with reality.”12

One of the most important “frameworks” in the world, and especially to Americans, was the United States Constitution. It was this document that outlined the most prosperous nation in the history of the world. Was our sovereignty really “fiction”? Was the U.S. vision no longer compatible with reality? Brzezinski further stated:

“The approaching two-hundredth anniversary of the Declaration of Independence could justify the call for a national constitutional convention to reexamine the nation’s formal institutional framework. Either 1976 or 1989 – the two- hundredth an anniversary of the Constitution – could serve as a suitable target date culminating a national dialogue on the relevance of existing arrangements… Realism, however, forces us to recognize that the necessary political innovation will not come from direct constitutional reform, desirable as that would be. The needed change is more likely to develop incrementally and less overtly…in keeping with the American tradition of blurring distinctions between public and private institution.”13

In Brzezinski’s Technetronic Era then, the “nation-state as a fundamental unit of man’s organized life has ceased to be the principal creative force: International banks and multinational corporations are acting and planning in terms that are far in advance of the political concepts of the nation-state.”14

Brzezinski’s philosophy clearly pointed forward to Richard Gardner’s Hard Road to World Order that appeared in Foreign Affairs in 1974, where Gardner stated,

“In short, the ‘house of world order’ would have to be built from the bottom up rather than from the top down. It will look like a great ‘booming, buzzing confusion,’ to use William James’ famous description of reality, but an end run around national sovereignty, eroding it piece by piece, will accomplish much more than the old-fashioned frontal assault.”15

That former approach which had produced few successes during the 1950’s and 1960’s was being traded for a velvet sledge-hammer: It would make little noise, but would still drive the spikes of globalization deep into the hearts of many different countries around the world, including the United States. Indeed, the Trilateral Commission was the chosen vehicle that finally got the necessary traction to actually create their New World Order.

Understanding the philosophy of the Trilateral Commission was and is the only way we can reconcile the myriad of apparent contradictions in the information filtered through to us in the national press. For instance, how was it that the Marxist regime in Angola derived the great bulk of its foreign exchange from the offshore oil operations of Gulf Oil Corporation? Why did Andrew Young insist that “Communism has never been a threat to Blacks in Africa”? Why did the U.S. funnel billions in technological aid to the Soviet Union and Communist China? Why did the U.S. apparently help its enemies while chastising its friends?

A similar and perplexing question is asked by millions of Americans today: Why do we spend trillions on the “War on Terror” around the world and yet ignore the Mexican/U.S. border and the tens of thousands of illegal aliens who freely enter the U.S. each and every month?

These questions, and hundreds of others like them, cannot be explained in any other way: the U.S. Executive Branch (and related agencies) was not anti-Marxist or anti-Communist – it was and is, in fact, pro- Marxist. Those ideals which led to the heinous abuses of Hitler, Lenin, Stalin, and Mussolini were now being accepted as necessary inevitabilities by our elected and appointed leaders.

This hardly suggests the Great American Dream. It is very doubtful that Americans would agree with Brzezinski or the Trilateral Commission. It is the American public who is paying the price, suffering the consequences, but not understanding the true nature of the situation.

Barry GoldwaterThis nature however, was not unknown or unknowable. Senator Barry Goldwater (R-AZ) issued a clear and precise warning in his 1979 book, With No Apologies:

The Trilateral Commission is international and is intended to be the vehicle for multinational consolidation of the commercial and banking interests by seizing control of the political government of the United States. The Trilateral Commission represents a skillful, coordinated effort to seize control and consolidate the four centers of power – political, monetary, intellectual and ecclesiastical.”16

Unfortunately, few heard and even fewer understood.

Follow the Money, Follow the Power

What was the economic nature of the driving force within the Trilateral Commission? It was the giant multinational corporations – those with Trilateral representation – which consistently benefited from Trilateral policy and actions. Polished academics such asBrzezinski, Gardner, Allison, McCracken, Henry Owen etc., served only to give “philosophical” justification to the exploitation of the world.

Don’t underestimate their power or the distance they had already come by 1976. Their economic base was already established. Giants like Coca-Cola, IBM, CBS, Caterpillar Tractor, Bank of America, Chase Manhattan Bank, Deere & Company, Exxon, and others virtually dwarf whatever remains of American businesses. The market value of IBM’s stock alone, for instance, was greater than the value of all the stocks on the American Stock Exchange. Chase Manhattan Bank had some fifty thousand branches or correspondent banks throughout the world. What reached our eyes and ears was highly regulated by CBS, the New York Times, Time magazine, etc.

The most important thing of all is to remember that the political coup de grace preceded the economic coup de grace. The domination of the Executive Branch of the U.S. government provided all the necessary political leverage needed to skew U.S. and global economic policies to their own benefit.

By 1977, the Trilateral Commission had notably become expert at using crises (and creating them in some instances) to manage countries toward the New World Order; yet, they found menacing backlashes from those very crises.

In the end, the biggest crisis of all was that of the American way of life. Americans never counted on such powerful and influential groups working against the Constitution and freedom, either inadvertently or purposefully, and even now, the principles that helped to build this great country are all but reduced to the sound of meaningless babblings.

Trilateral Entrenchment: 1980-2007

25th Anniversary of Trilateral Commission

From left: Peter Sutherland, Sadako Ogata,Zbigniew Brzezinski, Paul Volcker, David Rockefeller. (25th Anniversary, New York, Dec. 1, 1998. Source: Trilateral Commission)

It would have been damaging enough if the Trilateral domination of the Carteradministration was merely a one-time anomaly; but it was not!Subsequent presidential elections broughtGeorge H.W. Bush (under Reagan), William Jefferson Clinton, Albert Gore and Richard Cheney (under G. W. Bush) to power.

Thus, every Administration since Carter has had top-level Trilateral Commission representation through the President or Vice-president, or both!

It is important to note that Trilateral domination has transcended political parties: they dominated both the Republican and Democrat parties with equal aplomb.

In addition, the Administration before Carter was very friendly and useful to Trilateral doctrine as well: President Gerald Ford took the reins after President Richard Nixon resigned, and then appointed Nelson Rockefeller as his Vice President. Neither Ford nor Rockefeller were members of the Trilateral Commission, but Nelson was David Rockefeller’s brother and that says enough. According to Nelson Rockefeller’s memoirs, he originally introduced then-governor Jimmy Carter to David and Brzezinski.

How has the Trilateral Commission effected their goal of creating a New World Order or a New International Economic Order? They seated their own members at the top of the institutions of global trade, global banking and foreign policy.

For instance, the World Bank is one of the most critical mechanisms in the engine of globalization.17 Since the founding of the Trilateral Commission in 1973, there have been only seven World Bank presidents, all of whom were appointed by the President. Of these seven, six were pulled from the ranks of the Trilateral Commission!

    • Robert McNamara (1968-1981)
    • A.W. Clausen (1981-1986)
    • Barber Conable (1986-1991)
    • Lewis Preston (1991-1995)
    • James Wolfenson (1995-2005)
    • Paul Wolfowitz (2005-2007)
    • Robert Zoellick (2007-present)

Another good evidence of domination is the position of U.S. Trade Representative (USTR), which is critically involved in negotiating the many international trade treaties and agreements that have been necessary to create the New International Economic Order. Since 1977, there have been ten USTR’s appointed by the President. Eight have been members of the Trilateral Commission!

    • Robert S. Strauss (1977-1979)
    • Reubin O’D. Askew (1979-1981)
    • William E. Brock III (1981-1985)
    • Clayton K. Yeutter (1985-1989)
    • Carla A. Hills (1989-1993)
    • Mickey Kantor (1993-1997)
    • Charlene Barshefsky (1997-2001)
    • Robert Zoellick (2001-2005)
    • Rob Portman (2005-2006)
    • Susan Schwab (2006-present)

This is not to say that Clayton Yeuter and Rob Portman were not friendly to Trilateral goals, because they clearly were.

The Secretary of State cabinet position has seen its share of Trilaterals as well: Henry Kissinger (Nixon, Ford), Cyrus Vance (Carter), Alexander Haig (Reagan), George Shultz(Reagan), Lawrence Eagleburger (G.H.W. Bush), Warren Christopher (Clinton) andMadeleine Albright (Clinton) There were some Acting Secretaries of State that are also noteworthy: Philip Habib (Carter), Michael Armacost (G.H.W. Bush), Arnold Kantor(Clinton), Richard Cooper (Clinton).

Lastly, it should be noted that the Federal Reserve has likewise been dominated by Trilaterals: Arthur Burns (1970-1978), Paul Volker (1979-1987), Alan Greenspan (1987-2006). While the Federal Reserve is a privately-owned corporation, the President “chooses” the Chairman to a perpetual appointment. The current Fed Chairman, Ben Bernanke, is not a member of the Trilateral Commission, but he clearly is following the same globalist policies as his predecessors.

The point raised here is that Trilateral domination over the U.S. Executive Branch has not only continued and but has been strengthened from 1976 to the present. The pattern has been deliberate and persistent: Appoint members of the Trilateral Commission to critical positions of power so that they can carry out Trilateral policies.

The question is and has always been, do these policies originate in consensus meetings of the Trilateral Commission where two-thirds of the members are not U.S. citizens? The answer is all too obvious.

Trilateral-friendly defenders attempt to sweep criticism aside by suggesting that membership in the Trilateral Commission is incidental, and that it only demonstrates the otherwise high quality of appointees. Are we to believe that in a country of 300 million people only these 100 or so are qualified to hold such critical positions? Again, the answer is all too obvious.

Where Does the Council on Foreign Relations Fit?

While virtually all Trilateral Commission members from North America have also been members of the CFR, the reverse is certainly not true. It is easy to over-criticize the CFR because most of its members seem to fill the balance of government positions not already filled by Trilaterals.

The power structure of the Council is seen in the makeup of its board of directors: No less than 44 percent (12 out of 27) are members of the Commission! If director participation reflected only the general membership of the CFR, then only 3-4 percent of the board would be Trilaterals.18

Further, the president of the CFR is Richard N. Haass, a very prominent Trilateral member who also served as Director of Policy Planning for the U.S. Department of State from 2001-2003.

Trilateral influence can easily be seen in policy papers produced by the CFR in support of Trilateral goals.For instance, the 2005 CFR task force report on the Future of North America was perhapsthe major Trilateral policy statement on the intended creation of the North American Union. Vice-chair of the task force was Dr. Robert A. Pastor, who has emerged as the “Father of the North American Union” and has been directly involved in Trilateral operations since the 1970’s. While the CFR claimed that the task force was “independent,” careful inspection of those appointed reveal that three Trilaterals were carefully chosen to oversee the Trilateral position, one each from Mexico, Canada and the United States:Luis Rubio, Wendy K. Dobson and Carla A. Hills, respectively.19 Hills has been widely hailed as the principal architect of the North American Free Trade Agreement (NAFTA) that was negotiated under President George H.W. Bush in 1992.

The bottom line is that the Council on Foreign Relations, thoroughly dominated by Trilaterals, serves the interests of the Trilateral Commission, not the other way around!

EU PosterTrilateral Globalization in Europe

The content of this paper thus far suggests ties between the Trilateral Commission and the United States. This is not intended to mean that Trilaterals are not active in other countries as well. Recalling the early years of the Commission, David Rockefeller wrote in 1998,

“Back in the early Seventies, the hope for a more united EUROPE was already full-blown – thanks in many ways to the individual energies previously spent by so many of the Trilateral Commission’s earliest members.” [Capitals in original]20

Thus, since 1973 and in parallel with their U.S. hegemony, the European members of the Trilateral Commission were busy creating the European Union. In fact, the EU’s Constitution was authored by Commission member Valéry Giscard d’Estaing in 2002-2003, when he was President of the Convention on the Future of Europe. [For more on the EU, see European Union: Dictatorship Rising? and The Globalization Strategy: America and Europe in the Crucible]

The steps that led to the creation of the European Union are unsurprisingly similar to the steps being taken to create the North American Union today. As with the EU, lies, deceit and confusion are the principal tools used to keep an unsuspecting citizenry in the dark while they forge ahead without mandate, accountability or oversight. [See The Globalization Strategy: America and Europe in the Crucible and Toward a North American Union]

Conclusion

It is clear that the Executive Branch of the U.S. was literally hijacked in 1976 by members of the Trilateral Commission, upon the election of President Jimmy Carter and Vice-President Walter Mondale. This near-absolute domination, especially in the areas of trade, banking, economics and foreign policy, has continued unchallenged and unabated to the present.

Windfall profits have accrued to interests associated with the Trilateral Commission, but
the effect of their “New International Economic Order” on the U.S. has been nothing less than devastating. (See America Plundered by the Global Elite for a more detailed analysis)

The philosophical underpinnings of the Trilateral Commission are pro-Marxist and pro-socialist. They are solidly set against the concept of the nation-state and in particular, the Constitution of the United States. Thus, national sovereignty must be diminished and then abolished altogether in order to make way for the New World Order that will be governed by an unelected global elite with their self-created legal framework.

If you are having negative sentiment against Trilateral-style globalization, you are not alone. A 2007 Financial Times/Harris poll revealed that less than 20 percent of people in six industrialized countries (including the U.S.) believe that globalization is good for their country while over 50 percent are outright negative towards it.21 (See Global Backlash Against Globalization?) While citizens around the world are feeling the pain of globalization, few understand why it is happening and hence, they have no effective strategy to counter it.

The American public has never, ever conceived that such forces would align themselves so successfully against freedom and liberty. Yet, the evidence is clear: Steerage of America has long since fallen into the hands of an actively hostile enemy that intends to remove all vestiges of the very things that made us the greatest nation in the history of mankind.

Obama’s Trilateral Commission Team

Top 25 of 2010

Source:
August Review.com, January 30, 2009
Title: “Obama: Trilateral Commission Endgame”
Author: Patrick Wood

Student Researcher: Sarah Maddox
Faculty Evaluator: Peter Phillips
Sonoma State University

Barack Obama appointed eleven members of the Trilateral Commission to top-level and key positions in his administration within his first ten days in office. This represents a very narrow source of international leadership inside the Obama administration, with a core agenda that is not necessarily in support of working people in the United States.

Obama was groomed for the presidency by key members of the Trilateral Commission. Most notably, Zbigniew Brzezinski, co-founder of the Trilateral Commission with David Rockefeller in 1973, has been Obama’s principal foreign policy advisor.

According to official Trilateral Commission membership lists, there are only eighty-seven members from the United States (the other 337 members are from other countries). Thus, within two weeks of his inauguration, Obama’s appointments encompassed more than 12 percent of Commission’s entire US membership.

Trilateral appointees include:
* Secretary of Treasury, Tim Geithner
* Ambassador to the United Nations, Susan Rice
* National Security Advisor, Gen. James L. Jones
* Deputy National Security Advisor, Thomas Donilon
* Chairman, Economic Recovery Committee, Paul Volker
* Director of National Intelligence, Admiral Dennis C. Blair
* Assistant Secretary of State, Asia & Pacific, Kurt M. Campbell
* Deputy Secretary of State, James Steinberg
* State Department, Special Envoy, Richard Haass
* State Department, Special Envoy, Dennis Ross
* State Department, Special Envoy, Richard Holbrooke

There are many other links in the Obama administration to the Trilateral Commission. For instance, Secretary of State Hillary Clinton is married to Commission member William Jefferson Clinton.
Secretary of Treasury Tim Geithner’s informal group of advisors include E. Gerald Corrigan, Paul Volker, Alan Greenspan, and Peter G. Peterson, all members. Geithner’s first job after college was with Trilateralist Henry Kissinger at Kissinger Associates.

Trilateralist Brent Scowcroft has been an unofficial advisor to Obama and was mentor to Defense Secretary Robert Gates. And Robert Zoelick, current president of the World Bank appointed during the G.W. Bush administration, is a member.

According to the Trilateral Commissions’ website, the Commission was formed in 1973 by private citizens of Japan, Europe (European Union countries), and North America (United States and Canada) to foster closer cooperation among these core democratic industrialized areas of the world with shared leadership responsibilities in the wider international system. The website says, “The membership of the Trilateral Commission is composed of about 400 distinguished leaders in business, media, academia, public service (excluding current national Cabinet Ministers), labor unions, and other non-governmental organizations from the three regions. The regional chairmen, deputy chairmen, and directors constitute the leadership of the Trilateral Commission, along with an Executive Committee including about 40 other members.”
Since 1973, the Trilateral Commission has met regularly in plenary sessions to discuss policy position papers developed by its members. Policies are debated in order to achieve consensuses. Respective members return to their own countries to implement policies consistent with those consensuses. The original stated purpose of the Trilateral Commission was to create a “New International Economic Order.” Its current statement has morphed into fostering a “closer cooperation among these core democratic industrialized areas of the world with shared leadership responsibilities in the wider international system.”
Since the Carter administration, Trilateralists have held these very influential positions: Six of the last eight World Bank Presidents; Presidents and Vice-Presidents of the United States (except for Obama and Biden); over half of all US Secretaries of State; and three quarters of the Secretaries of Defense.

Two strong convictions guide the Commission’s agenda for the 2009-2012 triennium. First, the Trilateral Commission is to remain as important as ever in maintaining wealthy countries’ shared leadership in the wider international system. Second, the Commission will “widen its framework to reflect broader changes in the world.” Thus, the Japan Group has become a Pacific Asian Group, which includes Chinese and Indian members, and Mexican members have been added to the North American Group. The European Group continues to widen in line with the enlargement of the EU.

Update by Patrick Wood
The concept of “undue influence” comes to mind when considering the number of Trilateral Commission members in the Obama administration. They control the areas of our most urgent national needs: financial and economic crisis, national security, and foreign policy.

The conflict of interest is glaring. With 75 percent of the Trilateral membership consisting of non-US individuals, what influence does this super-majority have on the remaining 25 percent?
For example, when Chrysler entered bankruptcy under the oversight and control of the Obama administration, it was quickly decided that the Italian carmaker Fiat would take over Chrysler. The deal’s point man, Treasury Secretary Timothy Geithner, is a member of the Trilateral Commission. Would you be surprised to know that the chairman of Fiat, Luca di Montezemolo, is also a fellow member?
Congress should have halted this deal the moment it was suggested.

Many European members of the Trilateral Commission are also top leaders of the European Union. What political and economic sway do they have through their American counterparts?
If asked, the vast majority of Americans would say that America’s business is its own, and should be closed to foreign meddlers with non-American agendas.
But, the vast majority of Americans have no idea who or what the Trilateral Commission is, much less the power they have usurped since 1976, when Jimmy Carter became the first Trilateral member to be elected president (Project Censored Story #1, 1976).

In light of today’s unprecedented financial crisis, they would be abhorred if they actually read Zbigniew Brzezinski’s (co-founder of the Commission with David Rockefeller) statement from his 1971 book, Between Two Ages: America’s Role in the Technetronic Era, which states that, “The nation-state as a fundamental unit of man’s organized life has ceased to be the principal creative force: International banks and multinational corporations are acting and planning in terms that are far in advance of the political concepts of the nation-state.”
Yet, this is exactly what is happening. The global banks and corporations are running circles around the nation state, including the United States. They have no regard for due process, Congress, or the will of the people.

Why have the American people been kept in the dark about a subject so great that it shakes our country to its very core?
The answer is simple: The top leadership of the media is also saturated with members of the Trilateral Commission who are able to selectively suppress the stories that are covered. They include:
• David Bradley, Chairman, Atlantic Media Company
• Karen Elliot House, former Senior Vice President, Dow Jones & Company, and Publisher, the Wall Street Journal
• Richard Plepler, Co-president, HBO
• Charlie Rose, PBS
• Fareed Zakaria, Editor, Newsweek
• Mortimer Zuckerman, Chairman, US News & World Reports
There are many other top-level media connections due to corporate directorships and stock ownership.

For more information, this writer’s original 1978 book, Trilaterals Over Washington, is available in electronic form at no charge at http://www.AugustReview.com. This site also has many papers analyzing various aspects of the Trilateral Commission’s hegemony in the United States and elsewhere, since it’s founding in 1973.

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Thursday, July 22, 2010

The Outlook for the Economy is "Unusually Uncertain" .... the Fed is Killing It


Fed Chairman Ben Bernanke testified today that the outlook for the economy is "unusually uncertain".

That's not surprising....

High-Level Fed Officials Slam Bernanke

Fed Vice Chairman Donald Kohn conceded that the government's actions "will reduce [companies'] incentive to be careful in the future." In other words, he's admitting that the government's actions will encourage financial companies to make even riskier gambles in the future.

Kansas City Fed President and veteran Fed official Thomas Hoenig
said:

Too big has failed....
The sequence of [the government's] actions, unfortunately, has added to market uncertainty. Investors are understandably watching to see which institutions will receive public money and survive as wards of the state...

Any financial crisis leaves a stream of losses among the various participants, and these losses must ultimately be borne by someone. To start the resolution process, management responsible for the problems must be replaced and the losses identified and taken. Until these actions are taken, there is little chance to restore market confidence and get credit markets flowing. It is not a question of avoiding these losses, but one of how soon we will take them and get on to the process of recovery....

Many of the [government's current policy revolves around the idea of] "too big to fail" .... History, however, may show us a different experience. When examining previous financial crises, both in other countries as well as the United States, large institutions have been allowed to fail. Banking authorities have been successful in placing new and more responsible managers and directions in charge and then reprivatizing them. There is also evidence suggesting that countries that have tried to avoid taking such steps have been much slower to recover, and the ultimate cost to taxpayers has been larger...
The current head of the Philadelphia fed bank, Charles Plosser, disagrees with Bernanke's strategy of the endless printing-press and ever-increasing fed balance sheet:
Plosser urged the Fed to "proceed with caution" with the new policy. Others outside the Fed are much more strident and want plans in place immediately to reverse it. They believe an inflation storm is already in train.***

Bernanke argued that focusing on the size of the balance sheet misses the point, arguing the Fed's various asset purchase programs are not easily summarized in a single number.

But Plosser said that the growth of the Fed's balance sheet was a key metric.
"It is not appropriate to ignore quantitative metrics in this new policy environment," Plosser said...

Plosser is bringing the spotlight right back to the Fed's balance sheet.

"The size of the balance sheet does offer a possible nominal anchor for monitoring the volume of our liquidity provisions," Plosser said.

The former head of the Fed's Open Market Operations says the bailout might make things worse. Specifically, the former head of the Fed's open market operation - the key Fed agency which has been loaning hundreds of billions of dollars to Wall Street companies and banks - was quoted in Bloomberg as saying:

"Every time you tinker with this delicate system even small changes can create big ripples,'' said Dino Kos, former head of the New York Fed's open-market operations . . . "This is the impossible situation they are in. The risks are that the government's $700 billion purchase of assets disturbs markets even more.''
And William Poole, who recently left his post as president of the St. Louis Fed, is essentially calling Bernanke a communist:
Poole said he was very concerned that the Fed could simply lend money to anyone, without constraint.

In the Soviet Union and Eastern Europe during the Cold War era, economies were inefficient because they had a soft-budget constraint. If a firm got into trouble, the banking system would give them more money, Poole said.

The current situation at the Fed seems eerily similar, he said.

"What is discipline - where are the hard choices - when does Fed say our resources are exhausted?" Poole asked.
But the strongest criticism may be from the former Vice President of Dallas Federal Reserve, who said that the failure of the government to provide more information about the bailout could signal corruption. As ABC writes:
Gerald O'Driscoll, a former vice president at the Federal Reserve Bank of Dallas and a senior fellow at the Cato Institute, a libertarian think tank, said he worried that the failure of the government to provide more information about its rescue spending could signal corruption.

"Nontransparency in government programs is always associated with corruption in other countries, so I don't see why it wouldn't be here," he said.
Of course, former Fed chairman Paul Volcker has also strongly criticized current Fed policies.

Global Agencies Slam Bernanke

The Bank of International Settlements (BIS) - called "the central banks' central bank" - has slammed the Fed for blowing bubbles and then "using gimmicks and palliatives" which "will only make things worse".

As the Telegraph wrote in June 2007:

The Bank for International Settlements, the world's most prestigious financial body, has warned that years of loose monetary policy has fuelled a dangerous credit bubble, leaving the global economy more vulnerable to another 1930s-style slump than generally understood...

The BIS, the ultimate bank of central bankers, pointed to a confluence a worrying signs, citing mass issuance of new-fangled credit instruments, soaring levels of household debt, extreme appetite for risk shown by investors, and entrenched imbalances in the world currency system...

The bank said it was far from clear whether the US would be able to shrug off the consequences of its latest imbalances ...

"Sooner or later the credit cycle will turn and default rates will begin to rise," said the bank.

A year later, in June 2008, the Telegraph wrote:

A year ago, the Bank for International Settlements startled the financial world by warning that we might soon face challenges last seen during the onset of the Great Depression. This has proved frighteningly accurate...

[BIS economist] Dr White says the US sub-prime crisis was the "trigger", not the cause of the disaster.

Indeed, BIS slammed the Fed and other central banks for blowing the bubble, failing to regulate the shadow banking system, and then using gimmicks which will only make things worse. As the 2008 Telegraph article notes:

In a pointed attack on the US Federal Reserve, it said central banks would not find it easy to "clean up" once property bubbles have burst...

Nor does it exonerate the watchdogs. "How could such a huge shadow banking system emerge without provoking clear statements of official concern?"

"The fundamental cause of today's emerging problems was excessive and imprudent credit growth over a long period. Policy interest rates in the advanced industrial countries have been unusually low," he said.

The Fed and fellow central banks instinctively cut rates lower with each cycle to avoid facing the pain. The effect has been to put off the day of reckoning...

"Should governments feel it necessary to take direct actions to alleviate debt burdens, it is crucial that they understand one thing beforehand. If asset prices are unrealistically high, they must fall. If savings rates are unrealistically low, they must rise. If debts cannot be serviced, they must be written off.

"To deny this through the use of gimmicks and palliatives will only make things worse in the end," he said.

In other words, BIS slammed the easy credit policy of the Fed and other central banks, and the failure to regulate the shadow banking system.

More dramatically, BIS slammed "the use of gimmicks and palliatives", and said that anything other than (1) letting asset prices fall to their true market value, (2) increasing savings rates, and (3) forcing companies to write off bad debts "will only make things worse".

But Bernanke and the other central bankers (as well as Treasury and the Council of Economic Advisors and Barney Frank and Chris Dodd and the others in control of American and British and French and Japanese and German and virtually every other country's economic policy) ignored BIS' advice in 2007 and 2008, and they are still ignoring it today.

Instead, they are doing everything they can to (2) prop up asset prices by trying to blow a new bubble by giving banks trillions, (2) re-write accounting and reporting rules to let the big banks and other giants keep bad debts on their books (or in sivs or other "second sets of books") and to hide the fact that they are bad debts, and (3) encourage consumers to spend spend spend!

"The world's most prestigious financial body", "the ultimate bank of central bankers" has condemned Bernanke and all of the other G-8 central banks, and stripped bare their false claims that the crash wasn't their fault or that they are now doing the right thing to turn the economy around.

As Spiegel wrote in July of this year:

White and his team of experts observed the real estate bubble developing in the United States. They criticized the increasingly impenetrable securitization business, vehemently pointed out the perils of risky loans and provided evidence of the lack of credibility of the rating agencies. In their view, the reason for the lack of restraint in the financial markets was that there was simply too much cheap money available on the market...

As far back as 2003, White implored central bankers to rethink their strategies, noting that instability in the financial markets had triggered inflation, the "villain" in the global economy...

In the restrained world of central bankers, it would have been difficult for White to express himself more clearly...

It was probably the biggest failure of the world's central bankers since the founding of the BIS in 1930. They knew everything and did nothing. Their gigantic machinery of analysis kept spitting out new scenarios of doom, but they might as well have been transmitted directly into space...

In their report, the BIS experts derisively described the techniques of rating agencies like Moody's and Standard & Poor's as "relatively crude" and noted that "some caution is in order in relation to the reliability of the results."...

In January 2005, the BIS's Committee on the Global Financial System sounded the alarm once again, noting that the risks associated with structured financial products were not being "fully appreciated by market participants." Extreme market events, the experts argued, could "have unanticipated systemic consequences."

They also cautioned against putting too much faith in the rating agencies, which suffered from a fatal flaw. Because the rating agencies were being paid by the companies they rated, the committee argued, there was a risk that they might rate some companies too highly and be reluctant to lower the ratings of others that should have been downgraded.

These comments show that the central bankers knew exactly what was going on, a full two-and-a-half years before the big bang. All the ingredients of the looming disaster had been neatly laid out on the table in front of them: defective rating agencies, loans repackaged to the point of being unrecognizable, dubious practices of American mortgage lenders, the risks of low-interest policies. But no action was taken. Meanwhile, the Fed continued to raise interest rates in nothing more than tiny increments...

The Fed chairman was not even impressed by a letter the Mortgage Insurance Companies of America (MICA), a trade association of US mortgage providers, sent to the Fed on Sept. 23, 2005. In the letter, MICA warned that it was "very concerned" about some of the risky lending practices being applied in the US real estate market. The experts even speculated that the Fed might be operating on the basis of incorrect data. Despite a sharp increase in mortgages being approved for low-income borrowers, most banks were reporting to the Fed that they had not lowered their lending standards. According to a study MICA cited entitled "This Powder Keg Is Going to Blow," there was no secondary market for these "nuclear mortgages."...

William White and his Basel team were dumbstruck. The central bankers were simply ignoring their warnings. Didn't they understand what they were being told? Or was it that they simply didn't want to understand?

The head of the World Bank also says:

Central banks [including the Fed] failed to address risks building in the new economy. They seemingly mastered product price inflation in the 1980s, but most decided that asset price bubbles were difficult to identify and to restrain with monetary policy. They argued that damage to the 'real economy' of jobs, production, savings, and consumption could be contained once bubbles burst, through aggressive easing of interest rates. They turned out to be wrong.

Economists Slam Bernanke

Stephen Roach (former chief economist for Morgan Stanley, and now director of Morgan Stanley Asia) is one of the most influential and respected American economists. Roach told Charlie Rose recently that we have had terrible Federal Reserve policy for the past 12 years under Greenspan and Bernanke, that they concocted hair-brained theories (for example, that we should let the boom and bust cycle occur, but then "clean up the mess" once things fall apart), and that we really need to reform the Fed.

Specifically, here's the must-read portion of the interview:

STEPHEN ROACH: And what’s missing in the debate that drives me nuts is going back to the very function of central banking that’s at the core of our financial system. Do we have the right model for the Fed to go forward? And, you know, I think we’ve minimized the role that the custodians, the stewards of our financial
system, the Federal Reserve, played in leading to this crisis and in making sure that we will never have this again. I think we’ve had horrible central banking in the United States for the past dozen of years. I mean, we elevate our central bankers, we probably .

CHARLIE ROSE: From Greenspan to Bernanke.

STEPHEN ROACH: Yeah.

CHARLIE ROSE: Both.

STEPHEN ROACH: We call them maestro, and, you know, we make them
sound larger than life. And, you know, and the fact is, they condoned
policies that took us from one bubble to another. They failed to live up
to their regulatory responsibility granted them by law. They concocted new
theories to explain why these things could go on forever, and they harbored
the belief, mistakenly in my view, that monetary policy is too big and
blunt an instrument, and so you just bring it in to clean up the mess
afterwards rather than prevent a mess ahead of time. Well, look at the
mess we’re in right now. We need a different approach here. We really do.

Leading economist Anna Schwartz, co-author of the leading book on the Great Depression with Milton Friedman, told the Wall Street journal that the Fed's entire strategy in dealing with the financial crisis is wrong. Specifically, the Fed is treating it as a liquidity problem, when it is really an insolvency crisis.

Moreover, prominent Wall Street economist Henry Kaufman says that the Federal Reserve is primarily to blame for the financial crisis:

"I am convinced that the misbehavior of some would have been much rarer -- and far less damaging to our economy -- if the Federal Reserve and, to a lesser extent, other supervisory authorities, had measured up to their responsibilities ...

Kaufman directly criticized former Federal Reserve Chairman Alan Greenspan for not using his position to dissuade big banks and others from taking big risks.

"Alan Greenspan spoke about irrational exuberance only as a theoretical concept, not as a warning to the market to curb excessive behavior," Kaufman said. "It is difficult to believe that recourse to moral suasion by a Fed chairman would be ineffective."

Partly because the Fed did not strongly oppose the repeal in 1999 of the Depression-era Glass-Steagall Act, more large financial conglomerates that were "too big to fail" have formed, Kaufman said, citing a factor that has made the global credit crisis especially acute.

"Financial conglomerates have become more and more opaque, especially about their massive off-balance-sheet activities," he said. "The Fed failed to rein in the problem."...

"Much of the recent extreme financial behavior is rooted in faulty monetary policies," he said. "Poor policies encourage excessive risk taking."

Economist Marc Faber says that central bankers are money printers who create bubbles, and that the system would be much better now if the Fed hadn't intervened. Specifically, Faber says that - if the Fed hadn't intervened - the system would be cleaned out, the system would be healthier because debt load and burden on taxpayers would be reduced.

Economist Jane D'Arista has
shown that the Fed has failed miserably at its main task: providing a "counter-cyclical" influence (that is, taking the punch bowl away before the party gets too wild).

The Fed has also failed miserably in its role as regulator of banks and their affiliates. As well-known economist James Galbraith says:

The Federal Reserve has never been an effective regulator for the straightforward reason that it is dominated by economists and bankers and not by dedicated skeptics who make bank regulation a full-time profession.
As PhD economist Steve Keen has pointed out, the Fed (along with Treasury) has also given money to the wrong people to kick-start the economy.

Unemployment

The Federal Reserve is mandated by law to maximize employment. The relevant statute states:
The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.
However, PhD economist Dean Baker says:
The country now has almost 25 million people who are unemployed or underemployed as a result of the Fed's disastrous policies. Millions of people are losing their homes and tens of millions are losing their life savings. The country is likely to lose more than $6 trillion in output ($20,000 per person) due to the Fed's inept job performance.
The Fed could have stemmed the unemployment crisis by demanding that banks lend more as a condition to the various government assistance programs, but Mr. Bernanke failed to do so.

Ryan Grim
argues that the Fed might have broken the law by letting unemployment rise in order to keep inflation low:

The Fed is mandated by law to maximize employment, but focuses on inflation -- and "expected inflation" -- at the expense of job creation. At its most recent meeting, board members bluntly stated that they feared banks might increase lending, which they worried could lead to inflation.

Board members expressed concern "that banks might seek to reduce appreciably their excess reserves as the economy improves by purchasing securities or by easing credit standards and expanding their lending substantially. Such a development, if not offset by Federal Reserve actions, could give additional impetus to spending and, potentially, to actual and expected inflation." That summary was spotted by Naked Capitalism and is included in a summary of the minutes of the most recent meeting...

Suffering high unemployment in order to keep inflation low cuts against the Fed's legal mandate. Or, to put it more bluntly, it may be illegal.

In fact, the unemployment situation is getting worse, and many leading economists say that - under Mr. Bernanke's leadership - America is suffering a permanent destruction of jobs.

For example, JPMorgan Chase’s Chief Economist Bruce Kasman told Bloomberg:

[We've had a] permanent destruction of hundreds of thousands of jobs in industries from housing to finance.
The chief economists for Wells Fargo Securities, John Silvia, says:

Companies “really have diminished their willingness to hire labor for any production level,” Silvia said. “It’s really a strategic change,” where companies will be keeping fewer employees for any particular level of sales, in good times and bad, he said.

And former Merrill Lynch chief economist David Rosenberg writes:
The number of people not on temporary layoff surged 220,000 in August and the level continues to reach new highs, now at 8.1 million. This accounts for 53.9% of the unemployed — again a record high — and this is a proxy for permanent job loss, in other words, these jobs are not coming back. Against that backdrop, the number of people who have been looking for a job for at least six months with no success rose a further half-percent in August, to stand at 5 million — the long-term unemployed now represent a record 33% of the total pool of joblessness.
And see this.

Leverage

The Fed says that we should reduce leverage, but is doing everything in its power to increase leverage.

Specifically,
the New York Federal published a report in July entitled "The Shadow Banking System: Implications for Financial Regulation".

One of the main conclusions of the report is that leverage undermines financial stability:

Securitization was intended as a way to transfer credit risk to those better able to absorb losses, but instead it increased the fragility of the entire financial system by allowing banks and other intermediaries to “leverage up” by buying one another’s securities. In the new, post-crisis financial system, the role of securitization will likely be held in check by more stringent financial regulation and by the recognition that it is important to prevent excessive leverage and maturity mismatch, both of which can undermine financial stability.

And as a former economist at the New York Fed, Richard Alford, wrote recently:

On Friday, William Dudley, President of FRBNY, gave an excellent presentation on the financial crisis. The speech was a logically-structured, tightly-reasoned, and succinct retrospective of the crisis. It took one step back from the details and proved a very useful financial sector-wide perspective. The speech should be read by everyone with an interest in the crisis. It highlights the often overlooked role of leverage and maturity mismatches even as its stated purpose was examining the role of liquidity.

While most analysts attributed the crisis to either specific instruments, or elements of the de-regulation, or policy action, Dudley correctly identified the causes of the crisis as the excessive use of leverage and maturity mismatches embedded in financial activities carried out off the balance sheets of the traditional banking system. The body of the speech opens with: “..this crisis was caused by the rapid growth of the so-called shadow banking system over the past few decades and its remarkable collapse over the past two years.”

In fact, every independent economist has said that too much leverage was one of the main causes of the current economic crisis.

Federal Reserve Bank of San Francisco President Janet Yellen said recently that it’s “far from clear” whether the Fed should use interest rates to stem a surge in financial leverage, and urged further research into the issue.“Higher rates than called for based on purely macroeconomic conditions may help forestall a potentially damaging buildup of leverage and an asset-price boom”.

And on September 24th, Congressman Keith Ellison wrote a letter to Mr. Bernanke and Geithner stating:

As you know, excessive leverage was a key component of the financial crisis. Investment banks leveraged their balance sheets to stratospheric levels by using short-term wholesale financing (like repurchase agreements and commercial paper). Meanwhile, some entities regulated as bank holding companies (BHCs) used off-balance-sheet entities to warehouse risky assets, thereby evading their regulatory capital requirements. These entities’ reliance on short-term debt to fund the purchase of oftentimes illiquid and risky assets made them susceptible to a classic bank panic. The key difference was that this panic wasn’t a run on deposits by scared individuals, but a run on collateral by sophisticated counterparties.

The Treasury highlights this very problem in its policy statement before the recent summit of G-20 finance ministers in London. To address this problem, the Treasury advocates stronger capital and liquidity standards for banking firms, including “a simple, non-risk-based leverage constraint.” The U.S. is one of only a few countries that already has leverage requirements for banks. Leverage requirements supplement risk-based capital requirements that federal banking regulators have in place pursuant to the Basel II Accord, an international capital agreement. While important features of our system of financial regulation, leverage requirements only apply to banks and bank holding companies and therefore have not covered a wide array of financial institutions, including many that are systemically important. Moreover, leverage requirements have generally not captured the considerable risks associated with off-balance-sheet activities.

Of course, the Administration looks to address the shortcomings in the existing regulatory system through a proposal to regulate large, systemically-significant financial institutions as Tier 1 Financial Holding Companies (FHCs). Building upon its existing authority as the consolidated supervisor of all BHCs (which includes FHCs), the Federal Reserve would be responsible for overseeing and regulating the Tier 1 FHCs under the plan. In the legislative draft of the proposal, the Federal Reserve would have the authority to prescribe capital requirements and other prudential standards for these institutions that are stronger than those for all other BHCs. To that point, the text specifically says, “The prudential standards shall be more stringent than the standards applicable to bank holding companies to reflect the potential risk posed to financial stability by United States Tier 1 financial holding companies and shall include, but not be limited to—(A) risk-based capital requirements; (B) leverage limits; (C) liquidity requirements; and (D) overall risk management requirements.”

The application of leverage limits – as advanced by the Treasury’s G-20 policy statement and by the Administration’s financial regulatory reform plan – is a simple and elegant way to limit risk at specific financial institutions (and within the overall financial system). The financial crisis has underscored the importance of leverage requirements and manifested the problems associated with relying upon risk-based capital requirements alone ...

Nevertheless, there are some open questions regarding exactly how a leverage requirement should be applied. Some scholars and policy experts have advocated putting in place a leverage requirement for banks and other financial institutions that is set in statute. As Congress moves forward on comprehensive financial regulatory reform, it may consider such a requirement. I would therefore be interested to hear your views regarding the wisdom of such an approach.
As you know, setting capital standards requires decisions regarding what institutions would be covered, how capital would be defined, and what levels the requirements would be set. In light of that, what specific difficulties would you anticipate Congress facing with respect to specifying such a requirement? In addition, would a statutory requirement be too inflexible and place too many constraints on regulators with respect to refining regulatory capital requirements and negotiating with bank regulators from other countries?
On November 13th, Mr. Bernanke responded to Ellison (I received a copy of the letter from a Congressional source):
The Board's authority and flexibility in establishing capital requirements, including leverage requirements, have been key to the Board's ability to require additional capital where needed based on a banking organization's risk profile. One of the lessons learned in the recent financial crisis is the need for financial supervisors to have the ability to react quickly to changing circumstances, as in the capital assessments conducted in the Supervisory Capital Assessment Program. The Board and other federal banking agencies initiated this program to conduct a comprehensive, forward-looking assessment of the capital positions ofthe nation's 19 largest bank holding companies (BHCs). The Board's authority to mandate specific levels of capital was critical to this exercise because each BHC had a unique set of risks and circumstances that demanded careful supervisory scrutiny and evaluation in order to identify the amount of capital appropriate for its safe and sound operation. The Board required corrective actions on a case-by-case basis and continues to assess the capital positions ofthese institutions as well as all others under its supervision.

We note that in other contexts, statutorily prescribed minimum leverage ratios have not necessarily served prudential regulators of financial institutions well. Previously, the minimum capital requirements for the housing government-sponsored enterprises Fannie Mae and Freddie Mac (collectively, "GSEs") were fixed in statute; the risk-based capital requirement for the GSEs was based on a stress test that was also set forth in statute; and the GSE's regulator, the Director ofthe Office of Financial Housing Enterprise Oversight (the predecessor agency to the Federal Housing Finance Authority) did not have the authority to establish additional capital requirements for the GSEs. This limitation was different from the authority that the federal banking agencies have to set the leverage and risk-based capital requirements for banking organizations. In 2008, Congress enacted the Housing and Economic Recovery Act of 2008, which created FHFA and empowered it to establish additional minimum leverage and risk-based capital requirements for the GSEs.

With regard to the Board and other U.S. banking agencies' efforts to join with international supervisors to strengthen capital requirements for internationally active banking organizations, the Basel Committee is working on proposals for an international supplement to minimum risk-based capital ratios. While this work is in process, it is likely that these efforts will take the form of a minimum leverage ratio. It will be important for the international regulatory community to carefully calibrate the aggregate effect ofthis initiative, along with other efforts underway that are intended to strengthen capital requirements, to ensure that they protect against future financial crises while not raising capital requirements to such a degree that the availability of credit to support economic growth is unduly constrained. The current authority and flexibility the Board has to establish and modify leverage ratios as a banking organization regulator is very important to the successful participation of the Board in the process of establishing and calibrating an international leverage ratio.
The Supervisory Capital Assessment Program Mr. Bernanke refers to were the infamous "stress tests". There's just one little problem: the stress tests were a complete complete sham.

In reality, the Fed has been one the biggest enablers for increased leverage. As anyone who has looked at Mr. Bernanke and Geithner's actions will tell you, many of the government's programs are aimed at trying to re-start securitization and the "shadow banking system", and to prop up asset prices for highly-leveraged financial products.

Indeed, Mr. Bernanke said in February:

In an effort to restart securitization markets to support the extension of credit to consumers and small businesses, we joined with the Treasury to announce the Term Asset-Backed Securities Loan Facility (TALF).
And he said it again in September:
The Term Asset-Backed Securities Loan Facility, or TALF ... has helped restart the securitization markets for various types of consumer and small business credit. Securitization markets are an important source of credit, and their virtual shutdown during the crisis has reduced credit availability for many borrowers.
Has the Fed Manipulated any Markets?

There are
allegations that the Fed has manipulated the markets.

Trillions in Unnecessary Interest to the American People

Many people - including former analyst for the U.S. Treasury Richard Cook - argue that credit is too important a function to be left to the private banks. AFL-CIO president Richard Trumka told Congress recently:
If the Federal Reserve were made a fully public body, it would be an acceptable alternative.
Bloomberg News columnist Matthew Lynn writes:
The U.K. government needs to start thinking about what it will do with all the banks it now owns. The answer is simple: Hand them to the people...

Instead of selling the stakes it acquired in the financial system to other banks, or listing the shares on the stock market, it could create mutually owned societies. Royal Bank of Scotland Group Plc could be a people’s bank, owned by everyone.That would ensure more diversity, competition and stability, all goals just as worthy as getting back the money Prime Minister Gordon Brown’s government spent on bank rescues...
Michael Moore recommends that the American people demand:
Each of the 50 states must create a state-owned public bank like they have in North Dakota. Then congress MUST reinstate all the strict pre-Reagan regulations on all commercial banks, investment firms, insurance companies -- and all the other industries that have been savaged by deregulation: Airlines, the food industry, pharmaceutical companies -- you name it. If a company's primary motive to exist is to make a profit, then it needs a set of stringent rules to live by -- and the first rule is "Do no harm." The second rule: The question must always be asked -- "Is this for the common good?" (Click here for some info about the state-owned Bank of North Dakota.)
As Moore notes, the state of North Dakota already has such a bank, and - because of that - North Dakota is just about the only state which is not running a huge deficit.

PhD economist and candidate for Florida governor
Farid Khavari wants to create a Bank of the State of Florida, to create credit without burdening the state and its citizens with high interest charges by private banks. See this for details.

If the power to create credit were taken away from the Federal Reserve system and its private banks and given back to the government (as the Constitution envisioned), then American taxpayers would save
hundreds of billions or trillions of dollars in unnecessary interest charges in paying off the national debt, as the government would not have to pay interest to finance its debt (sovereign nations such as the U.S. and England have the power to create credit and money; see this, this, this, and this).

Failure to Disclose Who Received Bailout Money

The Fed continues to fail to fully disclose who received
trillions in bailout money. Because the economy will not recover until trust is restored, and trust cannot be restored unless there is transparency, this is a big deal.