Sunday, June 7, 2009

President of the Federal Reserve Bank of Kansas City Warns of Oligarchy

As I have previously pointed out, two top IMF officials and the former Vice President of the Dallas Federal Reserve have all warned that the U.S. has been taken over by an oligarchy.

Wednesday, the head of the Federal Reserve Bank of Kansas City, Thomas Hoenig, agreed:

    If we hesitate to make needed changes, we will perpetuate an oligarchy of interests that will fail to serve the best interests of business, the consumer and the U.S. economy…

    In discussing any aspect of financial reform, one of the most significant changes that must be accomplished is the end of “Too Big to Fail” . . . Institutions must be allowed to fail, no matter their size or political influence…The effect is to lower the costs to these firms and significantly raise costs to the taxpayer and, ultimately, to fundamentally weaken our financial system.

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Saturday, June 6, 2009

Weaponized Education: Controlling Tomorrow With The Youth of Today

There has been and continues to be an effort by some of the worlds most elite families to establish a global community, with a global government, some call it the new world order.The plan always benefits them at our expense, and they beleive as long as we show no opposition they can retain control. The massive goal is to bring the global populace into harm-ony, but it is an impossibility unless family loyalty is dissolved and individuality is eradicated.

Psychological force has been introduced to achieve their world domination, and it is our children’s minds that are being attacked most viciously. The crux of which is being done at school, through both passive and aggressive formulas.

Our enemy is ruthless, picking us off one community at a time, using a multi prong approach inside American schools, Pavlovian behavioral techniques, coupled with soviet brainwashing and scariest of all, trauma based mind control (which also sheds light on a disgusting display of the most power hungry men and women in uniform).

Soviet brainwashing techniques have been a part of the overall agenda of mass education for well over a hundred years, but today the globalists are flaunting their agenda. As recently as April of 2009 UNESCO announced its plan to promote their Earth Charter to encourage all children to become responsible, “global citizens in the 21st century”. The charter is a loaded document that also promotes, redistribution of wealth, “among nations” (communism).

One system already promoting that exact agenda is the International Bacceulette (IB) Program, which claims to be an ‘elite’ international education, and it is being implemented in 2,591 schools in 134 countries.

Miami Beach Florida has been the most recent community to adopt the IB Program, and it will be the only curriculum used throughout the entire city for all grade levels. The announcement was made shortly after the IB council met in Miami in March 2009.

The IB was founded in 1968 in Switzerland, and was an offshoot of the International School of Geneva, which was founded in part by the League of Nations, and it is where IB’s founding Director, John Goormaghtigh, served as chairman of the Board prior to IB. Goormaghtigh also served as the director of the European Centre of the Carnegie Endowment for International Peace, whose nefarious goal of ‘controlling the education in the united states’ had been previously revealed by the Reece commission in the early 1950’s.

    “In order to raise children with equality, we must take them away from families and communally raise them.” - Dr. Mary Jo Bane

This is how the ruling class does it, when they are exposed they merely change a few things and have another go at us. They believe that the key to controlling our minds as adults is to dominate us as children, when we are impressionable. They get us all inside our schools away from the influence (and loving care) of our parents, and sadly it does get worse.

    “It would have been impossible for us to develop our plan for the world if we had been subject to the bright lights of publicity…. But, the work is now much more sophisticated and prepared to march towards a world government.” -David Rockefeller

Since Columbine, and 9/11 the ante has been upped, trauma based mind control has been added to their arsenal. Using terrorism drills, not to capture terrorists but to define them. The most terrifying drills are taking place inside public schools, usually without warning for the parents, or teachers and worst of all, the unsuspecting children who will see little difference between a real terrorist or a masked man acting like one.

    “The children were in that room …begging for their lives, because they thought there was someone with a gun after them,” -Mother of mock victim

Some drills are terrorizing children as young as five years old. A stranger comes plowing through a classroom door, wielding a gun shouting at everyone splattered in fake blood. Children are screaming and crying and wetting their pants. The conditions are torturous, no food or water for hours, no access to restrooms, and no way of knowing when it will end, some drills have gone past normal school hours. This is known as trauma based mind control, and it would be called abuse if it wasn’t being promoted by the Department of Homeland Security and acted out inside our public schools.

Their drills are specific, the mock terrorists are homeschoolers, angry parents, and Christians, they tote guns and bombs, leaving the mock victims wondering who the “terrorists” really are. Imposing the idea that people we are familiar with (a father, classmate, or neighbor) could be terrorists, (and they may not even know it) leaves a suspicious paranoid population.

It is plain to see that they are the terrorists, no matter what or who they dress up as, the “authorities” are the ones terrorizing us and these scenarios are not preparing our children for anything other than how to be afraid, and how to be a slave, condition them now, control them later.

    “The ultimate tragedy is not the oppression and cruelty by the bad people but the silence over that by the good people.” -Martin Luther King, Jr

The elite families running the world that exists behind your television, just out of view, will never quit, they are committed to their goal of global dominance. They won’t just go away they have to be fought off, constantly, continuously - intergenerationally. We can not just work to be free and go along to get along, instead restore your families and pass knowledge along, this is a fight our children will face. The elite do not have broken families like many of us, they work together to hold their place at the controls.

    “In this new world system international education will become more indispensable than ever, but also more possible.” - John Goormaghtigh

    “the real goal of the earth charter is that it will in fact become like the ten commandments.” — Maurice Strong


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Friday, June 5, 2009

NASA Goddard study suggests solar variation plays a role in our current climate

NASA Study Acknowledges Solar Cycle, Not Man, Responsible for Past Warming

Report indicates solar cycle has been impacting Earth since the Industrial Revolution
From the Daily Tech, Michael Andrews. (h/t to Joe D’Aleo)

Some researchers believe that the solar cycle influences global climate changes. They attribute recent warming trends to cyclic variation. Skeptics, though, argue that there’s little hard evidence of a solar hand in recent climate changes.

[NOTE: there is evidence of solar impact on the surface temperature record, as Basil Copeland and I discovered in this report published here on WUWT titled Evidence of a Lunisolar Influence on Decadal and Bidecadal Oscillations In Globally Averaged Temperature Trends - Anthony]

Past studies have shown that sunspot numbers correspond to warming or cooling trends. The twentieth century has featured heightened activity, indicating a warming trend. (Source: Wikimedia Commons)

Solar activity has shown a major spike in the twentieth century, corresponding to global warming. This cyclic variation was acknowledged by a recent NASA study, which reviewed a great deal of past climate data. (Source: Wikimedia Commons)

Now, a new research report from a surprising source may help to lay this skepticism to rest. A study from NASA’s Goddard Space Flight Center in Greenbelt, Maryland looking at climate data over the past century has concluded that solar variation has made a significant impact on the Earth’s climate. The report concludes that evidence for climate changes based on solar radiation can be traced back as far as the Industrial Revolution.

Past research has shown that the sun goes through eleven year cycles. At the cycle’s peak, solar activity occurring near sunspots is particularly intense, basking the Earth in solar heat. According to Robert Cahalan, a climatologist at the Goddard Space Flight Center,

“Right now, we are in between major ice ages, in a period that has been called the Holocene.”

Thomas Woods, solar scientist at the University of Colorado in Boulder concludes,

“The fluctuations in the solar cycle impacts Earth’s global temperature by about 0.1 degree Celsius, slightly hotter during solar maximum and cooler during solar minimum. The sun is currently at its minimum, and the next solar maximum is expected in 2012.”

According to the study, during periods of solar quiet, 1,361 watts per square meter of solar energy reaches Earth’s outermost atmosphere. Periods of more intense activity brought 1.3 watts per square meter (0.1 percent) more energy.

While the NASA study acknowledged the sun’s influence on warming and cooling patterns, it then went badly off the tracks. Ignoring its own evidence, it returned to an argument that man had replaced the sun as the cause current warming patterns. Like many studies, this conclusion was based less on hard data and more on questionable correlations and inaccurate modeling techniques.

The inconvertible fact, here is that even NASA’s own study acknowledges that solar variation has caused climate change in the past. And even the study’s members, mostly ardent supports of AGW theory, acknowledge that the sun may play a significant role in future climate changes.

NOTE: for those that wish to see the original NASA Goddard article which sparked both the Daily Tech and Science Daily news stories referenced above, you can read it here:

http://erc.ivv.nasa.gov/topics/solarsystem/features/solar_variability.html

- Anthony


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Thursday, June 4, 2009

Obama's speech in Egypt warns not to challenge official 9/11 story

President Obama's speech in Egypt echoes Bush's speech to the UN, in its warning not to challenge the 9/11 story.

Obama's remarks:

"But let us be clear: Al Qaeda killed nearly 3,000 people on that day. The victims were innocent men, women and children from America and many other nations who had done nothing to harm anybody. And yet al Qaeda chose to ruthlessly murder these people, claimed credit for the attack and even now states their determination to kill on a massive scale. They have affiliates in many countries and are trying to expand their reach. These are not opinions to be debated; these are facts to be dealt with," he said.

Bush's remarks:

"We must speak the truth about terror. Let us never tolerate outrageous conspiracy theories concerning the attacks of September the 11th, malicious lies that attempt to shift the blame away from the terrorists themselves, away from the guilty. To inflame ethnic hatred is to advance the cause of terror."

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US Intel Officials Link Groups Listed In DHS “Extremist” Reports To Al Qaeda Bio-Attack

Counterterrorism officials have stated that they believe “Al Qaeda” terrorists are seeking to align themselves with anti-government groups in the US in order to carry out mass casualty attacks.

The suggestion dovetails with recent Department of Homeland security documents that equate with violent terrorists those who champion States’ rights over the authority of the Federal government.

“Al Qaeda is looking to exploit weaknesses in U.S. border security and also is willing to ally itself with white militia groups or other anti-government entities interested in carrying out an attack inside the United States, according to counterterrorism officials…” a report by The Washington Times states.

The officials, who spoke only on the condition they not be named, have pointed to a grainy video, first aired by the Arabic news network Al Jazeera in February, of supposed veteran Al Qaeda recruiter Abdullah al-Nafisi saying that the terrorists should essentially hook up with disgruntled militia groups in the US.

“These militias even think about bombing nuclear plants within the U.S.,” al-Nafisi is quoted as saying. “May God grant them success, even though we are not white, or even close to it, right? They have plans to bomb the nuclear plant at Lake Michigan. This plant is very important. … May God grant success to one of these militia leaders, who is thinking about bombing this plant. I believe that we should devote part of our prayers to him.”

al-Nafisi also suggests that biological weapons, capable of killing hundreds of thousands, could be smuggled into the US through tunnels under the Mexican border.

The translated video is below:


Given that the government has made it clear that it sees little difference between white supremacist groups and Americans who still believe in the first and second amendments, this does not bode well.

Of course, there is no actual evidence that any militia group is plotting to blow up nuclear plants or is in league with Al-CIA-da, neither is there any credible evidence that the phantom terrorist group has the capability to carry out a mass biological attack.

No matter, what this does is continue to set the precedent for the authorities to blame the next major attack on those that disagree with their policies and the actions in the name of fighting the “war on terror”.

From the reports of “White Al Qaeda” to “homegrown terrorists”, we have seen the emergence of an ongoing agenda to foment some kind of connection between foreign terrorists hell bent on attacking and killing Americans, and US citizens protesting and speaking out against the erosion of their constitutional rights. The prime example of this is the recently leaked DHS report, entitled Rightwing Extremism: Current Economic and Political Climate Fueling Resurgence in Radicalization and Recruitment (PDF link).

The document characterizes concerns about the economy, unemployment, the loss of U.S. sovereignty and the move towards global government as “rightwing extremist chatter on the Internet” which itself is defined as a potential tool for terrorists to network, build bombs, and send encrypted messages to each other.

It also lists gun owners, veterans, and those opposed to abortion or immigration as potential extremists.

A footnote attached to the report by the Homeland Security Office of Intelligence and Analysis defines “rightwing extremism in the United States” as including not just racist or hate groups, but also groups that reject federal authority in favor of state or local authority.

Republican Representatives have demanded answers from the Department of Homeland Security over the origins of the report. Their demands remain unanswered.

A further disturbing DHS security document emerged last month. Entitled “Domestic Extremism Lexicon”, it shockingly lists the “alternative media” with other radical extremist groups and implies that people who disagree with the mass media’s version of events are potential domestic terrorists.

These reports exist in addition to countless other documents, such as the MIAC report, intended to train police nationwide that supporters of presidential candidates Ron Paul, Chuck Baldwin, and Bob Barr are “militia” influenced terrorists.

The singling out in this way of Americans who merely talk about the U.S. constitution, the loss of national sovereignty or the erosion of the Bill of Rights, should act as a wake-up call and prompt more people to expose the tyranny unfolding before their eyes.

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Tuesday, June 2, 2009

Cybersecurity Is Framework For Total Government Regulation & Control Of Our Lives

Surveillance grid will be allied with “smart” technology to create a behemoth of big brother management of our behavior and consumption

The Obama administration’s new Cybersecurity system will only make the Internet more vulnerable to attack, while creating the framework for a massively upgraded government surveillance grid that will control and regulate every aspect of our daily lives through the implementation of “smart” technology.

Obama’s announcement of the new cybersecurity grid dovetails with a recently introduced Senate bill, the Cybersecurity Act of 2009, that would hand the president the power to shut down the entire Internet in the event of a “cybersecurity” crisis.

“The bill’s draft states that “the president may order a cybersecurity emergency and order the limitation or shutdown of Internet traffic” and would give the government ongoing access to “all relevant data concerning (critical infrastructure) networks without regard to any provision of law, regulation, rule, or policy restricting such access,” reports Raw Story.

The legislation would allow the government to tap into any digital aspect of every citizen’s information without a warrant. Banking, business and medical records would be wide open to inspection, as well as personal instant message and e mail communications.

This is President Bush’s warrantless wiretapping program on steroids, yet the reaction from the liberal left has been muted to say the least.

Furthermore, the reasoning behind the proposal is a farce, since cybersecurity will make the Internet even more vulnerable to attack.

According to Jennifer Granick, director of civil liberties at the Electronic Frontier Foundation, the program would “basically establish a path for the bad guys to skip down.”

One of the bill’s authors, Democratic Sen. Jay Rockefeller of West Virginia, admitted that the bill was about more than just military or intelligence concerns. “It is a lot more than that. It suddenly gets into the realm of traffic lights and rail networks and water and electricity,” said Rockefeller.

Essentially, this is the framework within which every aspect of our lives will be managed and regulated by a gargantuan government bureaucracy designed to control and shape every aspect of our behavior through our dependence on technology.

This is what Nancy Pelosi was referring to when she visited China last week and let slip the fact that “Every aspect of our lives must be subject to inventory” in order to fight global warming.

Under the cybersecurity grid, our electricity consumption, our water consumption and every other basic utility that we rely upon will be subject to state regulation.

This is already being introduced through “smart” technology, manifesting in such things as fridges that are controlled by power companies and not the individual. If you are deemed to have bypassed government-approved levels of consumption, your fridge will be automatically turned off remotely.

“A domestic refrigerator that can be turned on and off by the electricity supplier without the homeowner being aware is to go on trial,” reported the Daily Mail in January. “Npower will distribute 300 ‘smart fridges’ free to homeowners throughout Britain within the next five weeks as part of the energy companies’ efforts to tackle climate change.”

“At times of high demand, the National Grid will activate the switches in the fridges to achieve a balance in the power supply. The development means that, for the first time, consumers will lose control over the use of electricity in their own homes,” stated the report.

All British homes are also set to have “smart” electricity and gas meters installed by law by 2020. The meters would “record energy use” according to a Reuters report.

Likewise, water companies are preparing to force homeowners to install water meters so that water consumption can be accurately recorded and restricted in times of drought.

This is just the beginning of the imposition of a suffocating prison planet whereby our every action will not only be recorded by big brother but also subject to government approval and control.

The Cybersecurity grid will also be an upgrade of the pervasive snoop network that has already been operating under NSA auspices for decades.

During a speech last week on “cybersecurity,” Obama told a whopper. He said the government’s effort to protect us from cyber bad guys “will not include monitoring private sector networks or Internet traffic. We will preserve and protect the personal privacy and civil liberties that we cherish as Americans.”

Is it possible Obama has never heard of Mark Klein, the retired AT&T communications technician who said years ago that the company shunted all Internet traffic — including traffic from peering links connecting to other Internet backbone providers — to semantic traffic analyzers, installed in a secret room inside the AT&T central office on Folsom Street in San Francisco? There are similar rooms in Seattle, San Jose, Los Angeles and San Diego, all sucking up internet data.



Klein explained that the multinational corporation is doing this at the behest of the NSA. It is “vacuum-cleaner surveillance” approach that grabs everything. “Despite what we are hearing, and considering the public track record of [the Bush] administration, I simply do not believe their claims that the NSA’s spying program is really limited to foreign communications or is otherwise consistent with the NSA’s charter or with FISA [the Foreign Intelligence Surveillance Act],” said Klein in 2006.

After the NSA showed up in 2002 at AT&T’s Folsom Street facility, Klein began connecting the dots. “You might recall there was a big blowup in the news about the Total Information Awareness [TIA] program, led by Adm. [John] Poindexter, which caused the big upsetness in Congress, because what Poindexter was proposing to do was draw in databases from everywhere — and this was in The New York Times — draw in Internet data, bank records, travel records, everything into one big conglomeration which could be searchable by the government so they could find out everything about what anybody’s doing at any time of day,” Klein told PBS. “And all this would be done without any warrants. This is how it was presented by Poindexter himself in The New York Times, and that caused a great upset, brouhaha, in Congress.”

On January 16, 2003, Senator Russ Feingold introduced legislation to suspend the activity of the Total Information Awareness program pending a Congressional review of privacy issues involved. In February 2003, Congress passed legislation suspending activities of the IAO (Information Awareness Office) pending a Congressional report of the office’s activities.

Congress acted after William Safire published an article in the New York Times claiming “[TIA] has been given a $200 million budget to create computer dossiers on 300 million Americans” (see You Are a Suspect, November 14, 2002).

Of course, the program didn’t go away. Legislators included a classified annex to the Defense Appropriations Act that preserved funding for TIA’s component technologies, if they were transferred to other government agencies. TIA projects continued to be funded under classified annexes to Defense and Intelligence appropriation bills.

“Total Information Awareness — the all-seeing terrorist spotting algorithm-meets-the-mother-of-all-databases that was ostensibly de-funded by Congress in 2003, never actually died, and was largely rebuilt in secret by the NSA, according to the Wall Street Journal’s Siobhan Gorman,” Ryan Singel wrote for Wired on March 10, 2008. “There’s been no real debate in Congress or in the press about whether the government should be allowed to track every Americans phone calls, emails and web browsing.”

Jon Stokes, writing for Ars Technica, notes that TIA technology is nothing new. “TIA-like efforts are still going on” Stokes wrote in 2005, and “the government has been trying to use new technology, like database tech and voice recognition, for domestic surveillance for a long time. And when I say a long time, I mean well before the current administration came into office.” It really got a boost under Clinton in 1995 when the Communications Assistance for Law Enforcement Act (CALEA) was passed. “CALEA mandated that the telcos aid wiretapping by installing remote wiretap ports onto their digital switches so that the switch traffic would be available for snooping by law enforcement.” In other words, Mark Klein had but scratched the surface.

Truman created the NSA in 1952, supposedly to serve as “America’s ears” abroad, but the agency has long served as a secret Stasi-like organization dedicated to snooping on Americans. The NSA, writes Siobhan Gorman for the Wall Street Journal, “and other intelligence agencies were found to be using their spy tools to monitor Americans for political purposes.”

The NSA’s predecessor, the Armed Forces Security Agency, launched Project SHAMROCK in 1945. It obtained copies of all telegraphic information exiting or entering the United States with the full cooperation of RCA, ITT and Western Union. A sister project known as Project MINARET involved the creation of “watch lists,” by each of the intelligence agencies and the FBI, of those accused of “subversive” domestic activities. The watch lists included such notables as Martin Luther King, Malcolm X, Jane Fonda, Joan Baez and Dr. Benjamin Spock, according to Patrick S. Poole, writing for Nexus Magazine in 1999. The FBI, the NSA, and other intelligence agencies were actively involved in creating the watch lists.

NSA has attempted to keep up on technology as the secretive agency continues to snoop on “subversives” and others the government considers miscreants. In February, trade publications reported the agency is offering “billions” to any firm able to offer reliable eavesdropping on Skype IM and voice traffic. Skype is particularity troublesome because it utilizes P2P networks, that is to say peer-top-peer (no central server owned and operated by a telecom required). The government and the corporate media may tell you they want to crack down on P2P — for instance, the vastly popular BitTorrent — because of copyright infringement, but a more practical reason is because the government has yet to figure out how to crack the file sharing protocol. Skype and BitTorrent account for a large amount of traffic on the internet.

If you think Obama will roll back the government’s massive and unconstitutional snoop program, think again. On April 3, the Obama Department of Justice filed a motion to dismiss one of the Electronic Frontier Foundation’s landmark lawsuits against illegal spying by the NSA. The DOJ demanded that the entire lawsuit be dismissed based on both the Bush administration’s claim that a “state secrets” privilege bars any lawsuits against the executive branch for illegal spying, as well as a novel “sovereign immunity” claim that the Patriot Act bars lawsuits of any kind for illegal government surveillance (see the EFF press release, Obama Administration Embraces Bush Position on Warrantless Wiretapping and Secrecy).

In March, Obama’s coordinator for cybersecurity programs, Rod Beckstrom, a former Silicon Valley entrepreneur, quit because he opposed the role of the NSA in the so-called cybersecurity initiative. Beckstrom said “the threats to our democratic processes are significant if all top level government network security and monitoring are handled by” the NSA.

“Obama’s moves drew praise from key lawmakers on Capitol Hill, who vowed to work with the president to implement new security measures as needed,” CQPolitics reported shortly after his “cybersecurity” speech. “Obama said his cybersecurity adviser — who will be a member of both the National Security Staff and the National Economic Council staff — will head a new office within the White House.”

“We applaud President Obama for highlighting the extraordinarily serious issue of cybersecurity,” Sens. Johns D. Rockefeller IV, D-W.V., and Olympia J. Snowe , R-Maine, said in a joint statement. “No other president in American history has elevated this issue to that level and we think him for his leadership.”

No other president so far has had the power to shut down the internet. The Rockefeller-Snowe bill, S 778, would grant Obama dictatorial power declare a so-called “cyber emergency” and pull the plug, or at least cripple networks deemed a threat. The U.S. government is not seriously worried about Chinese hackers or mischievous kids in Latvia (as Rockefeller cited as a danger) but rather fear free and unfettered speech and activism on the part of its own citizens.

Obama’s promise is merely an effort to string you along with a big fat lie. He has absolutely no respect for you or the Bill of Rights.

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Banks run Congress, top Democrat says

It doesn’t take a rocket scientist to deduce that the banking and financial services industry has an outsized influence in Congress.

Wells Fargo, Citigroup and JP Morgan Chase each got bailouts of $25 billion in government bailouts last year. Morgan Stanley and Goldman Sachs got $10 billion apiece. And AIG, the mammoth insurer that lost billions in bad derivatives bets, has sucked in more than $170 billion.

Meanwhile, President Barack Obama is reticent about bailing out an American state — California.

Collin Peterson, Democratic Chairman of the Agriculture Committee, says he knows who to blame.

“The banks run the place,” Peterson told the New York Times in Monday’s editions. “I will tell you what the problem is — they give three times more money than the next biggest group. It’s huge the amount of money they put into politics.”

Peterson has introduced a bill to regulate derivatives trading — the pesky financial instruments that nearly brought down the US financial system. Derivatives involve writing insurance on various complex financial transactions, such as providing insurance to investors in the event of massive defaults on home mortgages.

But he says that Republicans have watered down his bill. He wants derivatives trading to take place on public exchanges — much like the New York Stock Exchange — rather than through private clearinghouses, which are managed by banks.

Obama Treasury Secretary Timothy Geithner, meanwhile, would prefer the transactions be monitored by the New York branch of the Federal Reserve. Bankers appear to prefer this option, given that the New York Fed has been lenient on them in the past.

Geithner has been criticized for his close relationships with banking industry executives. His proposal to regular derivatives traded through private clearinghouses mirrors that of the bank’s own proposals.

How much did President Barack Obama receive in contributions from those employed in the financial sector?

$69,823,872 if you include real estate, according to the Center for Responsive Politics. (Sen. John McCain got $60,605,254, with the total between the two exceeding $130 million).

The biggest donor to the presidential campaigns? The banks. Followed by lawyers and lobbyists, at $95 million. The banking and financial services industry have their own lobbyists, so the total donations of the industry are undercounted.

All told, according to the New York Times, financial sector employees gave $152 million in political donations from 2007 to 2008. Goldman Sachs, Citigroup, JP Morgan Chase, Bank of America and Credit Suisse gave $22.7 million and spent a combined total of $25 million on lobbying activities — in a single year.

And President George W. Bush’s largest individual donor employer in 2004? MBNA, the credit card behemoth that was bought up by — Bank of America.

Remarkably, though, it’s the secretive, private trading of derivatives — where those buying insurance have no idea what others are paying, and those buying bank stocks have no idea what they’re actually buying — that nearly brought the US financial markets to their knees.

“Peterson’s bill specifically bars derivatives trading in a clearinghouse regulated by the New York Federal Reserve, which he said in an interview ‘is a tool of the big banks’ that ‘wouldn’t do much’ to regulate the contracts,” the Times wrote. “Because the banks’ lobbyists persuaded some of his Republican colleagues to resist more sweeping changes, Mr. Peterson said, he has had to modify a bill he introduced that is similar to Mr. Harkin’s in calling for wide-ranging limits on derivatives.”

The banks have had their heyday in Congress in recent years. This year, they succeeded in preventing the Senate from passing a provision that would have allowed bankruptcy judges to unilaterally reduce the principal amount on mortgages. And in 2005, the massive “Bankruptcy Abuse Prevention” bill passed by Congress made it harder for consumers to file for bankruptcy.

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Boys and Their Toys (by Becky Akers)

In its perennial quest to justify its existence and the $7 billion of our taxes it annually wastes, the Transportation Security Administration (TSA) is up to its usual tricks at American airports. When its screeners aren’t leering at naked passengers on millimeter-wave scanners, they’re manufacturing terrorists from innocuous Americans. Nor do these heartless bureaucrats care about the ruined lives that litter their wake. Neither kids nor US Marines are safe from their abuse, either.

Last Tuesday, screeners at Denver International Airport (DIA) called the cops on a 12-year-old boy flying to California with his family. They claim he tried to take "a homemade device similar to a flare" through the TSA’s checkpoint.

We used to call "devices" like this "science projects"; indeed, things that go "pop" and incorporate a bit of gunpowder (or so we’ll assume: the bomb squad raced to DIA’s rescue) were once a rite of passage for American boys. Then feminism hijacked our world. That turned these educational, masculine totems into "improvised explosive devices" and damned the boys still autonomous enough to delight in them as criminals.

Leviathan formerly prized manliness, perhaps because aggressive daredevils explored and conquered new territory for it. But strong, virile warriors tend to rebel when the beast becomes too oppressive. That taught rulers to appreciate effeminacy. Wimps who quake and tremble eagerly trade freedom for safety, spurn logic in favor of demagoguery, and revel in dependency. No wonder the modern State craves sissies for citizens.

And so the TSA savaged our anonymous boy. (Like cockroaches and other vermin, the agency hugs the shadows. This time it blames its furtiveness on the "juvenile’s" age, refusing to divulge his name or further details, rather than the usual mantra of "national security.") Screeners sicced the cops on him. Those bullies had no more shame than to arrest and interrogate a child. They admit that "no planes or passengers were jeopardized," yet the boy could still face felony charges. That’ll teach him what comes of being a guy.

Another of the TSA’s victims is 10 years older and just as innocent of any malice or motive. Justin Reed is a corporal with the Marine Corps who teaches a course on explosives at a base in California. A few months ago, he wanted to fly home to North Carolina and surprise his wife on their second anniversary. So he left class for Las Vegas’ McCarran International Airport with a suitcase full of the props he uses while lecturing: a gun in a locked box, a fully loaded gun magazine, a grenade fuse and detonator, three model-rocket engines containing explosive mixtures, some electrical components, and ammunition. Like the "homemade device" of our latter-day Tom Sawyer, none of these "pose an imminent threat to aviation," as even the TSA admits.

Cpl. Reed checked the bag and declared the gun, following the TSA’s arbitrary dictates. His luggage successfully negotiated McCarran’s new, $1.25 million baggage screening equipment, which supposedly ferrets out precisely the sort of things Cpl. Miller packed. He changed planes at Boston Logan. When screeners there subjected his bags to another warrantless search, they found the contraband. Cops arrested this US Marine and recipient of the Global War on Terrorism Medal, the National Defense Service Medal, and Good Conduct Medal for possessing an "infernal machine." He pled not guilty at his arraignment on April 21.

It doesn’t take actual grenade fuses and detonators to launch the TSA towards new heights of lunacy, however. Give it fake weapons, and the agency makes itself into an even bigger buffoon.

Another anonymous American features in our next incident, which may be no more authentic than is the TSA’s alleged mission of "protect[ing] the nation's transportation systems." No media anywhere confirm this story; the TSA alone reports it on its website. Since the agency lies all the time, about everything, this tale could well be yet another of its fabrications. If so, it should hire spinners whose yarns won’t emphasize its utter imbecility.

The TSA says a screener at Newark International Airport discovered "replica improvised explosive devices, accompanied by inert blasting caps" in a passenger’s checked bags. Barney Fife "recogniz[ed] the threat items" and "immediately notified" the usual gang of nincompoops, including "law enforcement" and a "Bomb Appraisal Officer."

Leviathan’s lickspittles will point out that it’s tough to determine at a glance whether wires and boxes wrapped in electrical tape are about to blow. Yep, and that’s why the Constitution’s Fourth Amendment prohibits morons from rifling their betters’ baggage: people transport all sorts of things beyond the ken of the average screener – and, apparently, the average "law enforcement" and "Bomb Appraisal Officer," too, since neither nitwit tried to set Barney straight: "Look, you idiot, they’re fake. Grow up and quit wastin’ my time." Instead, "with the possibility of an explosive" (huh?), these bozos "evacuated several gate areas, the security checkpoint and the baggage screening area." Their little charade "displaced about a thousand passengers and affected at least 9 flights." But, as the TSA blithely babbles, "the incident reminds TSA employees that a threat item could be detected at any time." Au contraire: an army of "threat items" wearing uniforms and blue gloves remains largely undetected after seven years of endangering aviation.

At some point, even the TSA couldn’t prolong this absurdity any further. So it "worked [sic] to repopulate the terminal and rescreen all passengers and employees" while "Newark FSD [Federal Security Director] Barbara Powell" prattled, "Our goal is to keep passengers safe and keep harmful items off planes." Pssst, Babs: replica; inert. "Every once in a while," this simpleton simpered, "it is a fellow passenger who interrupts an otherwise streamlined process." Yeah, right. The process is about as streamlined as the replicas were real.

Despite the TSA’s endless mendacity and incompetence, its employees admirably fulfill the propaganda published on the agency’s "I Am TSA" webpage: "I…[draw] on my imagination to creatively protect America from harm."

For sure they aren’t drawing on their intelligence.


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Economist: “As A Shadow Government, The Fed Has Mirrored The Shadow Banking System”

In March, I wrote that we not only have a shadow banking system, but also a shadow government - specifically, the Fed and Treasury are spending trillions of dollars of our taxpayer money but refusing to answer Congress or the American people's questions about where the money is going.

Yesterday, well-known economist Robert Kuttner agreed:

    The Federal Reserve is unique among America's governing institutions. Its combination of outsized power and lack of democratic accountability exceeds even that of the CIA, which at least reports directly to the president. The Fed's powerful regional banks are accountable to private boards made up mostly of bankers. When current Treasury Secretary Timothy Geithner was named president of the New York Fed in 2003, the search committee was chaired by private-equity mogul Peter G. Peterson and dominated by private financiers. The campaign to get Geithner the job was led by Robert Rubin of Citigroup.

    All of this clubbiness was by design. In creating the Fed, Congress appropriated a radical idea from the populists for a more stable and resilient banking and currency system -- but put it in the safely conservative hands of private bankers. This insularity is troubling enough in ordinary times. It is downright scandalous in the aftermath of an economic crisis brought on by banking excesses that in turn were enabled and indulged by the Fed.

    The economy was crashed by the activities of a shadow banking system -- mortgage companies, hedge funds, private-equity firms, buyers and sellers of credit-default swaps, and corrupted credit-rating agencies -- none of which were regulated by anyone and none of which troubled the Fed. The system's financiers were often bank holding companies whose activities were supposed to be supervised by the Fed but in practice were not.

    As a shadow government, the Fed has mirrored the shadow banking system. Now the Fed has put its own balance sheet at risk, courting inflation down the road -- and inviting a long-overdue backlash.

    ... Critics across the spectrum are asking why the Federal Reserve should not be subject to the same kind of scrutiny as other agencies in its roles as regulator and emergency lender. Instead, these functions have become entangled in a fashion that defies accountability.

    By creating massive liquidity that will eventually either find its way onto the national debt or be monetized as inflation, the Fed is now conducting fiscal as well as monetary policy. It is picking winners and losers, with no stated criteria. The Fed continues to waive regulatory scrutiny in the hopes of coaxing a wounded financial system back to life. It bails out institutions deemed "too big to fail," but in preventing the collapse of several banks, from Merrill Lynch to Bear Stearns to Wachovia to National City, its preferred strategy has been to orchestrate mergers to create even bigger banks, thus redoubling the too-big-to-fail problem.

    The Fed has all but taken over the banking system ...

    In late April, startling testimony by former Bank of America CEO Ken Lewis revealed that the Fed and Treasury had strong-armed him into purchasing Merrill Lynch even after it came to light that Merrill's losses were far larger than had been revealed. Legally, when there is a "material change" in the condition of a merger partner, the acquiring party may back out of the deal. But according to Lewis' testimony, confirmed both by Paulson and by official minutes of meetings, Paulson and Bernanke pressured Lewis into violating his own legal fiduciary duty to his shareholders, who had to approve the deal based on accurate information. Relying on no legal authority whatsoever, the Fed and Treasury threatened to remove the board and management of Bank of America if they refused to go forward and demanded that Lewis not divulge the conversation. Based on these revelations, Attorney General Andrew Cuomo of New York wrote a five-page letter to the SEC and key Congressional committee chairs, suggesting that the Fed and Treasury may have improperly interfered with Bank of America's legal duty to its shareholders...
    According to The Washington Post, the latest Geithner-Bernanke plans were conceived and drafted by such leading investment houses as Goldman Sachs and Pimco, which of course stand to gain or lose many billions depending on what the government does...

    Neither [the Congressional Oversight Panel] nor the inspector general has any authority over the Fed...

    Where will the Treasury get the money? It will issue bonds, adding to the national debt. You could say that the Fed is essentially serving as a money laundry for eventual Treasury borrowing. Alternatively, the Fed could just create more credit, a process that risks inflation -- increasing unease among many of its senior officials.

Luckily, Kuttner thinks that the Fed's power will decrease, not increase:

    However, the idea of giving the job [of systemic risk regulator] to the Fed is now all but dead because of its overreaching...

    Greenspan has already fallen from grace, and Bernanke could be next. And though the Fed continues to play an outsized role in containing the crisis, its influence as a largely unaccountable shadow government has already peaked. The only question is how much further damage we will have to endure before both the financial system and its all-too-friendly central bank are rendered more accountable to a broad public interest.


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Congress Poised to Pass Law with No Purpose Other than to Empower Government to Suppress Evidence of the Torture it Inflicted on People

As Constitutional lawyer Glenn Greenwald writes:

    The Detainee Photographic Records Protection Act of 2009 … literally has no purpose other than to allow the government to suppress any “photograph taken between September 11, 2001 and January 22, 2009 relating to the treatment of individuals engaged, captured, or detained after September 11, 2001, by the Armed Forces of the United States in operations outside of the United States.” As long as the Defense Secretary certifies — with no review possible — that disclosure would “endanger” American citizens or our troops, then the photographs can be suppressed even if FOIA requires disclosure. The certification lasts 3 years and can be renewed indefinitely. The Senate passed the bill as an amendment last week.

    Just imagine if any other country did this. Imagine if a foreign government were accused of systematically torturing and otherwise brutally abusing detainees in its custody for years, and there was ample photographic evidence proving the extent and brutality of the abuse. Further imagine that the country’s judiciary — applying decades-old transparency laws — ruled that the government was legally required to make that evidence public. But in response, that country’s President demanded that those transparency laws be retroactively changed for no reason other than to explicitly empower him to keep the photographic evidence suppressed, and a compliant Congress then immediately passed a new law empowering the President to suppress that evidence. What kind of a country passes a law that has no purpose other than to empower its leader to suppress evidence of the torture it inflicted on people? Read the language of the bill; it doesn’t even hide the fact that its only objective is to empower the President to conceal evidence of war crimes.


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