Saturday, December 13, 2008

Video: Masons ID Children in Missouri

Video: Masons ID Children in Missouri


Taleban tax: allied supply convoys pay their enemies for safe passage

Tom Coghlan
Times Online
December 13, 2008
The West is indirectly funding the insurgency in Afghanistan thanks to a system of payoffs to Taleban commanders who charge protection money to allow convoys of military supplies to reach Nato bases in the south of the country.

Contracts to supply British bases and those of other Western forces with fuel, supplies and equipment are held by multinational companies.
However, the business of moving supplies from the Pakistani port of Karachi to British, US and other military contingents in the country is largely subcontracted to local trucking companies. These must run the gauntlet of the increasingly dangerous roads south of Kabul in convoys protected by hired gunmen from Afghan security companies.
The Times has learnt that it is in the outsourcing of convoys that payoffs amounting to millions of pounds, including money from British taxpayers, are given to the Taleban.
Read article

The New World Order Glock

December 13, 2008


Desert Storm Glock
This was a 1991 series of 1000 Glock 17s which had special engraving on it. A list of names of all the coalition countries is engraved down the top of the slide; “Operation Desert Storm/January 16-February 27, 1991″ is engraved on the right side. On the left side is “New World Order/Commemorative”.
The first 15 Desert Storm Glocks were special presentation models and had the special “bright black” finish. The special engraving on these was also slightly altered from the standard. These pistols were supposed to go to:
UD000US: George Bush, Commander-in-Chief
UD001US: Gen. H. Norman Schwartzkopf III (Commander-in-Chief, CentCom)
UD002US: James Baker III (Secy of State)
UD003US: Gen. Colin Powell (Chairman, Joint Chiefs of Staff)
UD004US: Dick Cheney (Secy of Defense)
UD005US: Brent Scowcroft (National Security Advisor)
UD006US: Lt. Gen. Thomas Kelly
UD007US: Lt. Gen. Chuck Horner (Commander, Air Forces, CentCom)
UD008US: Maj. Gen. Robert B Johnston (Chief-of-Staff, CentCom)
UD009US: Lt. Gen. Calvin Waller (Dpty Commander-in-Chief, CentCom)
UD010US: Lt. Gen. Walter Boomer (Commander, I MEF)
UD011US: Vice Adm. Stanley Arthur (Commander, Naval Forces, CentCom)
UD012US: Maj. Gen. William “Gus” Pagonis (Chief of Logistics, CentCom)
UD013US: Brig. Gen. Richard Neal (Operations Ofcr., CentCom)
Part of the special engraving was these men’s names and ranks engraved on the slide. In addition all of these special presentations along with the next 35 Desert Storm Glocks came with the Wooden Display case made specially for the Desert Storm Glocks. The remaining 950 Desert Storm Commemoratives came in the standard Glock Box, but with desert camoflage labels. [MakeMineA10mm]”
More at link:
Operation Desert Storm Commemorative Glock 1 of 1000

“New Rules” for Obama’s National Civilian Security Force

Kurt Nimmo
December 13, 2008
Obama’s proposal for a National Civilian Security Force
It’s all coming together. After Obama assumes control of the government as the decider-commander (a post Bush and the neocons have feathered with various extra-legal directives), he will organize his National Civilian Security Force and unleash this million man plus goon squad on thought criminals and other enemies of the global elite.
Behind the scenes at the corporate whorehouse on the Potomac, new “rules” are being fashioned to make this fascist “security” force operate like a well-oiled machine. Bob Unruh writes for WorldNetDaily:
New rules published in the Federal Register would allow certain civilians to call American soldiers into action inside the U.S. to prevent environmental damage or respond to “special events” and “other domestic activities.”
The alarming warning is contained in proposed rules published last week for the Department of Defense’s “Defense Support of Civil Authorities” plan.
Under the U.S. Constitution, soldiers inside the country essentially are tasked with the responsibility of quelling “insurrections” and repelling invasions as well as making sure each state has access to the republican form of government.
But the new rules go far beyond that, essentially establishing a plan to activate the U.S. military inside the country to deal with social issues under provisions that appear to be devoid of any connection to the Constitution, according to an expert.
Russia Today report on 20,000 troops deployed inside the U.S.
It is not explained what “special events” or “domestic activities” are but it does not take a lot of imagination to figure it out. The Pentagon, CIA, and FBI have spent billions and countless man hours monitoring, infiltrating, and sabotaging perfectly legal and constitutional activities such as demonstrating against the illegal neocon occupations of Iraq and Afghanistan, so we can only assume this sort of behavior is at the top of their list.
Environmental crime is a cover for more sinister activity on the part of government. If the government sincerely cared about the environment, it wouldn’t dump military toxins in the oceans and poison the biosphere with tons of depleted uranium.
“I think the thing that’s of concern with respect to this set of rules is it appears to have no constitutional foundation, no reference whatsoever of any constitutional structure. It’s totally missing,” Herb Titus, a onetime candidate for vice president for the Constitution Party and a longtime constitutional professor, told WND.
Jerome Corsi on PDD51, the martial law directive signed by Bush
For the elite, however, the Constitution is merely a “goddamn piece of paper,” little more than an anachronism. As we reported earlier, our rulers are attempting to dilute the Constitution with a Constitutional Convention.
“This proposed rule will allow civil authorities access to the correct procedures when they are seeking assistance from the Department by establishing updated policy guidance and assigning the correct responsibilities within the Department for the Defense for support of civil authorities in response to requests for assistance for domestic emergencies, designated law enforcement support, special events, and other domestic activities,” the plan states.
As Titus notes, the proposed rule “is based on the assumption that government was created for the purpose of preventing things from happening in our lives.” In fact, the Constitution is a blueprint limiting what government can and cannot do. It is a cornerstone for making sure the government stays out of our lives.
WND notes the “new rules” apply to “potential or actual domestic crisis” and even confirms that conditions not always will allow “prior authority” before “action is necessary for effective response.”
In other words, the government will respond to thought crimes and dispense with centuries of legal precedent and the rule of law when it sends out Obama’s proposed National Civilian Security Force along with presumably heavily armed military goons.

WND’s report on the new rules published in the Federal Register follow a recent report that the U.S. military expects to have 20,000 uniformed troops inside the United States by 2011 trained to help state and local officials respond to a nuclear terrorist attack or other domestic catastrophe, according to Pentagon officials. “The Pentagon’s plan calls for three rapid-reaction forces to be ready for emergency response by September 2011. The first 4,700-person unit, built around an active-duty combat brigade based at Fort Stewart, Ga., was available as of Oct. 1, said Gen. Victor E. Renuart Jr., commander of the U.S. Northern Command,” the National Terror Alert Response Center reported on December 1 after the Pentagon plan was mentioned in the Washington Post.
All of this complements Bush’s presidential directive NSPD 51, or PDD51, the National Security and Homeland Security Presidential Directive, created and signed on May 4, 2007. It allows Bush — and all too soon, Obama — to execute procedures for continuity of the federal government in the event of a “catastrophic emergency,” in other words it allows the president to declare martial law in the United States without consulting Congress. It should be noted that Congress and the American people are not allowed to see the Continuity Annexes of the directive. On July 2007 U.S. Representative and Homeland Security Committee member Peter DeFazio made an official request to examine the documents but was refused under “national security concerns.”
“We’re talking about the continuity of the government of the United States of America… I would think that would be relevant to any member of Congress, let alone a member of the Homeland Security Committee,” said DeFazio. It was the first time DeFazio had been denied access to documents.

Border Patrol’s expansion sparks friction

Associated Press
The note from U.S. Attorney Jeff Sullivan to the U.S. Border Patrol was short and to the point: Stop sending petty marijuana cases to his office.

“It is our long-standing policy to use limited federal resources to pursue the sophisticated criminal organizations who smuggle millions of dollars of drugs, guns and other contraband across our borders,” Sullivan wrote in November.
Sullivan’s note is one in a string of flare-ups as the Border Patrol expanded its influence and manpower here in recent months. The marijuana busts had come from inland road blocks on state highways.
Sheriff’s offices, farmers, and a U.S. Congressman have all made their opinion about the patrol’s increased presence known, and not all of it has been friendly.
The clashes cast light on the expanded power of the agency along the country’s northern border.
More than 1,100 agents have been added to the Canadian since Sept. 11, 2001, four times its presence before the terrorist attacks. Hundreds more agents are to be hired next year.
Read article

Gates: Troops staying in Iraq regardless of election

WASHINGTON (CNN) -- The United States will not likely launch another regime-changing war "anytime soon," but American troops will remain in Iraq and Afghanistan for years, Defense Secretary Robert Gates said Monday.
Robert Gates says U.S. troops in Iraq will serve in advisory or counterterrorism capacities "for years to come."
Robert Gates says U.S. troops in Iraq will serve in advisory or counterterrorism capacities "for years to come."
Failure in either nation "would be a disastrous blow to our credibility, both among our friends and allies and among potential adversaries," Gates said.
Speaking at the National Defense University in Washington, Gates addressed President Bush's recent decision to pull 8,000 troops out of Iraq and send 4,500 troops to Afghanistan. Gates predicted even more troops would be sent to Afghanistan next year.
"Given its terrain, poverty, neighborhood and tragic history, Afghanistan in many ways poses an even more complex and difficult long-term challenge than Iraq -- one that, despite a large international effort, will require a significant American military and economic commitment for some time," Gates said. Video Watch how new Pakistani militias are taking on Taliban and warn U.S. »
But rather than solely tapping its military capabilities, Gates said the United States also will utilize "indirect approaches" that "prevent festering problems from turning into crises that require costly and controversial American military intervention."
Gates said not to expect troops to leave Iraq after the upcoming U.S. election.
"No matter who is elected president in November," he said, "there will continue to be some kind of American advisory and counterterrorism effort in Iraq for years to come."
During his lecture, Gates also touched on the Russia-Georgia conflict, U.S. military capacity and the U.S. war on terror, which he said will require at least some direct military force.

"But we also understand that over the long term, we cannot kill or capture our way to success," he said. "Where possible, kinetic operations should be subordinate to measures to promote better governance, economic programs to spur development and efforts to address the grievances among the discontented from which the terrorists recruit." Video Watch a reality check from Iraq »
Though rogue nations and rising powers pose threats to the United States, the greatest threats to the homeland are terror networks that "find sanctuary within the borders of a weak nation and strength within the chaos of social breakdown," Gates said.
A terror attack on a U.S. city, he said, is "more likely to emanate from failing states than from aggressor states."
"In addition, there is the potentially toxic mix of rogue nations, terrorist groups, and nuclear, chemical or biological weapons," he said. "North Korea has built several bombs, and Iran seeks to join the nuclear club. North Korea is impoverished, literally starving, while Iran sits on a sea of oil. Both have primitive ground offensive capabilities and ballistic missile programs of increasing range. Both have a record of proliferation and ties to criminal groups or terrorist networks."
To combat these evolving threats, the U.S. military will need more than expensive high-tech weapons. It must adapt to "a blended, high-low mix of adversaries and types of conflict."
With ongoing operations in Iraq and Afghanistan, the U.S. military would have difficulties fighting "a major conventional ground war elsewhere on short notice," but it still wields enough firepower to "deter or punish aggression," Gates said, citing specifically the Korean Peninsula, Persian Gulf and Taiwan Strait.
However, the United States is "unlikely to repeat another Iraq or Afghanistan anytime soon -- that is, forced regime change followed by nation-building under fire," he said.
"What all these potential adversaries have in common -- from terrorist cells to rogue nations to rising powers -- is that they have learned over time that it is not wise to confront the United States directly on conventional military terms," he said.
Gates downplayed concerns that Russia has re-emerged as a threat to the United States, saying that Russia is not trying to "dominate the globe."
Russia's recent campaign against Georgia showed that "militaries do still matter," he said, but the crushing of "Georgia's tiny military" last month does not mean the United States should rearm for a Cold War.
"Remember that what's driving Russia is a desire to exorcise past humiliation and dominate their near abroad -- not an ideologically driven campaign to dominate the globe," Gates said.
While Russia's military has "vastly improved" since its decline in the last decade, it "remains a shadow of its Soviet predecessor" and Russia's demographics impede its rapid growth.
"Though Russia's recent air and naval forays into this hemisphere have grabbed headlines, it's also worth nothing that in the last 15 years, the Russian navy has launched only two new major warships," Gates said. "Russia does present serious challenges, but ones very different from the past."
Gates cited some shortcomings in U.S. military capacity, including aging fighter and refueling planes, and a ground force spread so thinly that it's unable to focus on specialties, such as the Army's field artillery corps or the Marines' amphibious operations.
"We must remedy this as soon as we can through growing the ground forces and increasing dwell time and opportunities for full spectrum training," he said.
But never underestimate U.S. military dominance, he said. Though it is engaged in two campaigns, the military still has plenty of man- and firepower compared with other militaries. A good example is the U.S. Navy, which has shrunk considerably since the Cold War but remains bigger than the 13 next-largest navies combined.
"No other navy has anything comparable to the reach or combat power of a single American Carrier Strike Group," he said.

Just The Way It Is

By Karl Schwarz

I have been getting emails from all over the world for that past three months asking what I've been doing, and where are my essays. Well, I have had plenty to say about the fiasco going on in America but I also have had to focus on business.

This Saturday, December 13, 2008, I watched a movie that I had never seen. I rarely get time to just relax and watch TV so this was the lunch hour break with a part of a movie.

The movie is titled 'Article 99' and is about a VA hospital. Due to a bureaucratic butt-wipe hospital director, the veterans, doctors and nurses took over the hospital. Sort of like what needs to happen in Washington, DC but that is another story, another day.

The movie has a great line in it, quoted by Noble Willingham (deceased 2004) who played the VA Inspector General in this movie. When he decided that the VA Hospital Director was the problem, had to go, this is the line:

"I have been in government service for 40 years and have seen your type from Germany to Saigon, proof positive that shit does in fact float to the top."

If ever there was a cruel lie put forth by the US government it is that the Uncle Sam will provide that top quality medical care for our veterans. That is one of the ugliest fictions ever invented in DC.

I liked Nobel Willingham as an actor, just natural like Slim Pickens, Wilfred Brimley and William Farnsworth. If you do not know who Willingham is, recall the movie "Good Morning, Vietnam". He is the General that told Forest Whitaker "damn son, the shadow of your ass weighs 30 pounds" when the two were discussing his diet and meeting the US Army weight requirements.

DC is also proof positive that shit does in fact float to the top. George H W Bush was a useless president, 4 years of the essence of nothingness and really nothing at all memorable except his big lie regarding Desert Storm. It was memorable that he crashed the US economy just like Junior, but most people prefer to not remember bad economic times.

One has to wonder about the memorable quotes of such a president that were merely damnable lies. Like father, like son, it is a family defect.

Then we got Clinton, Mr. Corruption. I have known Clinton since 1981 and can say with certainty that he is the only American I know who has contributed nothing to America in the entire time I have known him. I am not aware of anything he has done but teach our children to lie, do weird things with cigars and White House interns, and give an Oscar level performance in lying and equivocating. Most of us Arkansans know what the meaning of 'is' is and were quite offended with Mr. Slick Waffle playing all of those word games to save his sorry ass.

For all of that Hillary rhetoric about 'the politics of personal responsibility', she frankly needs to start in her own home and deal with that. It would take an entire village to keep her husband off the nearest whore.

Most Americans seem to not remember that Clinton did not win the State of Arkansas in either 1992 or 1996. Seems most Americans failed to read what the largest newspaper in Arkansas had to say when it DID NOT endorse Clinton for President of the United States.

"Finally, and sadly, there is the unavoidable subject of character in a presidential candidate.... But it is not the duplicitousness in his politics that concerns so much as the polished ease, the almost habitual, casual, articulate way he bobs and weaves. He has mastered the art of equivocation. There is something almost inhuman in his smoother responses that sends a shiver up the spine. It is not the compromises he has made that trouble so much as the unavoidable suspicion that he has no great principles to compromise.'' -- Arkansas Democrat-Gazette, October 28, 1992

It would be so nice if Americans could read, or grasp the content of what they read. Pulitzer Prize winner Paul Greenberg (Editorial Editor, Arkansas Democrat-Gazette) could not have summed up the nothingness of Bill Clinton more succinctly than the above non-endorsement for President of our nation.

Sad, another 8 years wasted, another huge fraud in the Oval Office and many Americans put into the poor house because of it.

Sadder still is another 8 years of lies, genocide, a completely fabricated Global War on Terror out chasing American Unipolar hegemony that died in 1991. That there are at least 7,000 Americans dead (9-11 and combat), another 10,000 or more GIs dead since they returned home, and about 4 million dead Afghans and Iraqis. I am a devout Ecumenical Christian and feel pretty certain that there are sins that are in the unforgiveable realm.

We have Pelosi leading the House, Reid the Senate and homosexual page boy chaser Barney Franks appearing in every bailout photo op. I rest my case, shit floats to the top and the United States of America is now the pre-eminent global example of that.

If you missed the show I did with Jeff on December 9, check in the archives at Jeff and I did the second hour on that Classic Clinton Fraud, Global Double Crossing. That crime happened on the Bush watch but it was conceived and executed during the Clinton watch, as were many other massive corporate frauds like Williams Communications, Enron, Tyco, WorldCom, etc. It is a long list and that alleged $1 trillion surplus was actually about $2 trillion in losses for American investors, like you.

Have you figured it out yet America? Saddam Hussein was no problem to the US. The powers-that-be wanted all of that oil and gas, and through the GHWB, Clinton and current fiasco Bush Administrations, our nation at the behest of its Zionist NWO controllers has inflicted genocide on about 2 million Iraqis. Those are the facts and they are undisputed.

The US desperately needs a pipeline across Afghanistan, but it is now about 8 years too late for that since most of the natural gas has been contracted with Russia, China and India. I have written on it many times, BRIDAS CORPORATION had the deal sewed up until Bush launched his bogus war on terror and the Clinton Administration made sure that Turkmenistan and Pakistan were not going to cooperate with the pipeline route the US coveted.

The oil is being carved up as you read this and the losers are US and UK. The Grand Chessboard is in checkmate and the US lost. Got that? Those are the facts and they are undisputed except in Washington, DC, aka: Delusionville, USA.

You need to 'get that' because the US has murdered 2-3 million Afghanis, too, and still does not have that pipeline. Of course, Barky Obamanation is going to 'surge' Afghanistan and prove to the world he is dumber than Bush.

Lest you missed the past 2 years, all of those DNC promises that they would stop the Iraq War in 2006 if America would vote them back into power have proven to be total, traitorous, treasonous lies. Pelosi, Reid, et al should either rot in Hell or face a firing squad.

If you have been hanging on the edge of your chair regarding the GM - Toyota battle to be the World's Largest Automaker you can take a deep breath and relax. GM is bankrupt, closing 20 plants to stop the need to stack cars on top of cars that no one wants to buy or can afford to buy. Toyota, meanwhile, is doing fine and GM has major problems. I heard that GM has to sell 15 million cars a year to break even, have been averaging about 11 million cars, so yeah, they are in big trouble.

I recently saw a US car dealer ad, buy one, get the second for $1. Folks, that is not a bargain. That is a warning sign flashing in big red lights "America is in TROUBLE".

I hear through the grapevine and Internet that Mighty George Bush is going to 'surge' Detroit next and show how worthless his MBA is. Stay tuned to the news on that one.

If you are not mad yet about the $7 trillion bailout of the gangsters, banksters and criminals on Wall Street, you need to pay close attention to how that knife in your back is going to affect your quality of life. The US is not in a recession, it is now in a depression and with all of this newly printed bailout debt money deflation of the US dollar is going to come home to roost like an elephant crapping in your chili.

No foreign nations are buying this new DC debt. The Fed is just printing money and where necessary sending some of it overseas to buy the US and Wall Street out of massive litigation as a result of the completely bogus, propped up US housing market so idiot Americans would think all was rosy and hunky-dory.

Next to crash will be the $14 trillion or so in US consumer debt, propping up an economy that was dead back about 1997. Many foreign nations are livid and hopping mad at having their banks and their pension funds plundered, looted and robbed by this criminal cabal on Wall Street and their RICO buddies in Washington, DC.

Maybe when that bailout reaches about $25 trillion you will get mad, sitting out on the curb of what used to be your home?

If you Barky backers have not figured it out yet, you got hosed big time in this last election. You morons thought it was raining and Barky was the Sun. No, that was Barky pissing on your feet and lying out his butt to get elected. Barky has been appointing and installing all of the thugs and thieves that America loves to hate. There is no 'change'. What in Hell made you think Barky was telling the truth?

The only change I see is we now have a part Black president who has not done anything in his political career but talk, and cannot seem to find his birth certificate.

I predict many Democrats will be asking by June or July, WHERE IS SARAH PALIN?

Of course, there is still that Constitutional question as to Barky's eligibility to even be president. Regardless of how much obfuscation his handlers spew, remember well that other world leaders will look at him as being

unqualified - so nothing will get done during his 4 years if office except more harm to America. If you Barky backers do not think that China, Russia and India, and much of the rest of the world are laughing their asses off at America electing Barky, you will learn soon enough.

If Americans think Hillary Clinton is trading up from Condoleezza Rice, think again. All we get with Hillary is no buck-teeth, a different skin color and still rotten to the core. Most of the rest of the world hates the Clintons with a passion and for good cause. I predict American foreign diplomacy is about to hit a low point like never before in the history of our nation. We might soon miss the Little Black Poodle scurrying around to peeing on the feet of other nations, like the Russian Bear.

If you missed the confession, Mikhiel The Tie-Eater Shakashvili did, in fact, admit that Georgia attacked and started the flap with Russia ON AUGUST 7 the day before the Olympics. So, consider that and all of the blowhard bullshit we all saw from the EU and Washington, DC.

Georgia is not happy about NATO saying NO, but the Ukrainians are breathing a sigh of relief. They know Russia cares more about them than the US or UK or EU.

If Americans are not thinking already about taking the House and Senate away from Barky in 2010, better start making plans. By the middle of 2009 most Americans will wish they had never heard of Barky Obama. I predict numbers lower than Bush in 2009 alone and that is a hard hat trick to do, but Barky will get it done. That is the CHANGE I predict. Barky will set a new low in American Presidential politics.

I am wondering how many 18-40 year old Americans are prepared to just stop their lives and go serve Barky's Mandatory Serve America program. I bet the shirkers on that deal will make Vietnam draft- dodgers look like no big deal. I would not follow Barky across the street for coffee, much less change my life plans for him.

If you are one of the many Americans who cannot afford Christmas this year, do not fret, try something different. Try celebrating the birth of Jesus Christ rather than celebrating the lies emanating from DC and Wall Street about how important it is to shop.

Factory orders are down, unemployment skyrocketing, as are foreclosures on homes, Citibank shedding 12,000, Bank of America 35,000, 20 GM plants idled, Chrysler vendors want cash to deliver, etc, so Merry Christmas to all and to all a good night.

Some ask, "what do I do?" Hmm, buckle up, make sure you know where the lifejacket is because the waters are about to become far rougher for America.


U.S. troops' new mission: America's 'special events'

Proposal would allow civilians to activate Army to prevent 'environmental damage'

Posted: December 13, 2008
12:20 am Eastern

By Bob Unruh
© 2008 WorldNetDaily

U.S. soldiers and weaponry
New rules published in the Federal Register would allow certain civilians to call American soldiers into action inside the U.S. to prevent environmental damage or respond to "special events"  and "other domestic activities."
The alarming warning is contained in proposed rules published last week for the Department of Defense's  "Defense Support of Civil Authorities" plan.
Under the U.S. Constitution, soldiers inside the country essentially are tasked with the responsibility of quelling "insurrections" and repelling invasions as well as making sure each state has access to the republican form of government.
But the new rules go far beyond that, essentially establishing a plan to activate the U.S. military inside the country to deal with social issues under provisions that appear to be devoid of any connection to the Constitution, according to an expert.

WND Exclusive

U.S. troops' new mission: America's 'special events'
Proposal would allow civilians to activate Army to prevent 'environmental damage'

Posted: December 13, 2008
12:20 am Eastern

By Bob Unruh
© 2008 WorldNetDaily

U.S. soldiers and weaponry
New rules published in the Federal Register would allow certain civilians to call American soldiers into action inside the U.S. to prevent environmental damage or respond to "special events"  and "other domestic activities."
The alarming warning is contained in proposed rules published last week for the Department of Defense's  "Defense Support of Civil Authorities" plan.
Under the U.S. Constitution, soldiers inside the country essentially are tasked with the responsibility of quelling "insurrections" and repelling invasions as well as making sure each state has access to the republican form of government.
But the new rules go far beyond that, essentially establishing a plan to activate the U.S. military inside the country to deal with social issues under provisions that appear to be devoid of any connection to the Constitution, according to an expert.
(Story continues below)

"I think the thing that's of concern with respect to this set of rules is it appears to have no constitutional foundation, no reference whatsoever of any constitutional structure. It's totally missing," said Herb Titus, a onetime candidate for vice president for the Constitution Party and a longtime constitutional professor.

Herb Titus
Titus, whose biography includes teaching at five different American Bar Association-approved law schools and service as founding dean of the College of Law and Government at Regent University, reviewed the federal proposal at WND's request.
The multi-page plan is to establish policies and assign responsibilities "regarding military support for civilian law enforcement."

"Who Killed the Constitution?" Here's a dirty little secret: The bedrock of our country is ... dead
The plan states, "This proposed rule will allow civil authorities access to the correct procedures when they are seeking assistance from the Department by establishing updated policy guidance and assigning the correct responsibilities within the Department for the Defense for support of civil authorities in response to requests for assistance for domestic emergencies, designated law enforcement support, special events, and other domestic activities.
Titus, who has testified before Congress on constitutional issues and is authorized to practice before the U.S. Supreme Court and a long list of federal court districts, said, "All of this is based on the assumption that government was created for the purpose of preventing things from happening in our lives."
A plain reading of the law, he said, would allow drastically different actions than what Americans probably expect.
"Instead of prosecuting somebody charged with murder, we should profile people who are likely to commit murder, round them up and prevent them from endangering lives," he said, citing the plan's apparent permission for the government to restrain liberties when there is concern about potential damages or injury.
A contact at the Department of Defense did not return a WND call requesting comment on the proposal.
But the plan itself says the person calling for soldiers' actions could be either a military official or civilian leader. And it renews questions about Barack Obama's stated plans for a National Civilian Security Force that is at least as powerful and well-funded as the U.S. military.
Even Obama's new chief of staff, Rahm Emanuel, says there will be a mandatory "force" for Americans.
"If you're worried about, are you going to have to do 50 jumping jacks, the answer is yes," Emanuel told a reporter who was podcasting for the New York Daily News.
WND also reported when the official website for Obama,, announced he would "require" all middle school through college students to participate in community service programs.
That proposal, however, was changed suddenly after a flurry of blogs protested children being drafted into Obama's proposal. The new wording reads, "President-Elect Obama will expand national service programs like AmeriCorps and Peace Corps and will create a new Classroom Corps to help teachers in under served schools, as well as a new Health Corps, Clean Energy Corps, and Veterans Corps.
WND previously reported on a video of a marching squad of Obama youth.
Obama, meanwhile, also has yet to clarify what he meant during his July "Call to Service" speech in Colorado Springs in which he insisted the U.S. "cannot continue to rely only on our military in order to achieve the national security objectives we've set" and needs a "civilian national security force."
A video of his comments is here:

Joseph Farah, founder and editor of WND, used his daily column first to raise the issue and then to elevate it with a call to all reporters to start asking questions about it.
"If we're going to create some kind of national police force as big, powerful and well-funded as our combined U.S. military forces, isn't this rather a big deal?" Farah wrote. "I thought Democrats generally believed the U.S. spent too much on the military. How is it possible their candidate is seeking to create some kind of massive but secret national police force that will be even bigger than the Army, Navy, Marines and Air Force put together?
"Is Obama serious about creating some kind of domestic security force bigger and more expensive than that? If not, why did he say it? What did he mean?" Farah wrote.
The Obama campaign has declined to respond to WND questions on the issue.
The newly proposed Department of Defense rules leave a virtually wide open door for what could be cited as a reason for military intervention.
It defines "Imminently Serious Conditions" as "Emergency conditions in which, in the judgment of a military commander or responsible DoD civilian official, immediate and possibly serious danger threatens the public and prompt action is needed to save lives, to safeguard public health or safety, or to prevent or mitigate great property or environmental damage."
Repeatedly the rules cite "special events."
"Special event support to non-governmental organizations is a DSCA activity," it states under policy issues.
That, Titus contemplated, could even be a Democratic National Convention in Denver.
He said it's important to keep the foundations of the nation in mind and that many of the principles of justice and government for America were derived from the pulpits of the 1700s.
"If you go back and look at Romans 13, the civil government was authorized to punish evil doing, not to prevent it from happening," Titus said.
The new proposal specifically states it applies to a "potential or actual domestic crisis" and even confirms that conditions not always will allow "prior authority" before "action is necessary for effective response."
"All this is really designed to do is legitimize by rule essentially a broader discretionary power," Titus said.
It also reverses the role of the boss, he said, because of the repeated references to a situation "manager."
"It's the image that's being created. A manager. You're supposed to do what the manager tells you. Contrast that with civil authorities who are our servants. They're supposed to do what we want them to do," he said.

Barack Obama
Many state constitutions were specific in that area, he noted. Virginia's, for example, declared that all powers derive from the people, and in Pennsylvania the constitution specifically reserved the right to regulate police to the people.
Although many would argue such military occupation of the U.S. would be reserved only for such "emergencies," the Washington Post reported just a few days ago on plans by the U.S. military to have 20,000 uniformed troops stationed inside the U.S. by 2011.
The plan has been lauded by some in the Bush administration and Congress as a reasonable response to the threat of terrorism, despite concerns over how it would undermine the Posse Comitatus Act, a federal law that restricts the military's role in domestic law enforcement.
At word of the plan, the ACLU warned of expansions in "presidential and military authority," while the Cato Institute called it a case of "creeping militarization," according to the Post.
Gene Healy, Cato vice president, told the newspaper, "There's a notion that whenever there's an important problem, that the thing to do is to call in the boys in green … and that's at odds with our long-standing tradition of being wary of the use of standing armies to keep the peace."
The DoD says it will accept comments on the proposal until Feb. 2 at the federal government's link.

Hypocrisy With One-World Impunity

Jim Kirwan

For any nation to have a future its people must have real and growth-oriented jobs; along with job protection and benefits that do not drain the money that employees can earn. This principle has been under attack since the Tri-Lateral Commission held its first global meeting in 1973.
What is at stake now in the current battle over the continuation of the big-three automotive giants is not about the viability of their products but rather this concerns the imbalance between the failed leadership of those corporations, supported by the criminal- enterprise of government in league with the One-World Order, that is designed to eliminate real wages and benefits for those that produce the vehicles, while rewarding the corporations and the boards of directors for their complicity in bringing down these last remaining manufacturing giants in a place that is now devoid of the remaining home-grown jobs that once offered real possibilities to their employees.
That is why, when the automotive workers refused to buy-in to the one-world pay scale over what their unions had won over many decades of bargaining ­ there was an immediate end to the negotiations and the bailout failed. Media pounced on the workers for refusing to yield, when in fact the workers have given in several times already. No hard questions were raised as to the job performance of either the corporate leaders of the companies or of the totally failed leadership from the government at all levels that are actually conducting this masquerade. Instead the matter will now end up in the courts where USA Incorporated will decide for the New World Order (not for the people of the US), exactly what shall happen to the workers and their jobs.
If these industrial giants are allowed to seek bankruptcy protections, so that they might reorganize the companies along the lines of the slave wages that all the various international trade- agreements call for; then this shall be the final chapter created by those same trade-agreements (GATT, NAFTA, FTAA, etc.) that override US protections of US workers from this global-power-grab by the owners of production-worldwide.
The corporate giants and the corporatocracy will be bailed out, the government that controls this process will pay themselves handsomely, and the people that actually do the work will either lose their jobs or they will be forced to work for next-to-nothing without benefits or future prospects in a field that they created by the sweat of their labor. The planning for this madness came directly from 'The Empire of the City' that has been directing governments around the world for centuries, in order to get to this place, where the most powerful nation on the planet can be conquered from within.
"City of London + City of Vatican + City of Columbia (D.C.) are the 3 independent states within states which composes the empire of the city. The first is financial control over earth economy, the second is religion control over the earth and the third one is military control over the earth." (1)
This is probable because the courts that shall hear these cases answer not to US Constitutional Law, but to International Maritime Law that gave us the Universal Commercial Codes that dictate exactly what the One World Order demands through US Courts-under a misleading flag-that stands not for justice but for a blatantly illegal set-of-lies; because the American supposition is that our courts are actually constitutional: While the truth is US courts now belong to the enemies of the United States of America.
"The gold fringe that surrounds the US flag in US courts and on US military uniforms indicates The International Law of Flags that has come to represent the universal commercial code that functions as the universal code of contracts: this came down to us via British Maritime Law. When we enter a US courtroom today, we are contracting with what is in effect "a corporation" without knowing it. This is what is indicated by the ALL CAPS in which your name appears on your driver's license or any legal papers you might receive. What this means is that 'American courts are operating under the Maritime Law of Contracts, and not under the laws of the US Constitution. By entering the court you have contracted with a corporation (without your direct knowledge) and to be subjected to it laws, over those contained in the United States Constitution."
Another measure of both the scale of this engineered collapse of the American automotive giants, and the fall-out from this event are the global repercussions that have already begun and that will drive the global markets into chaos.
"A taxpayer bail-out of the UK's beleaguered motor industry looked increasingly likely tonight as the meltdown in America put up to a million British jobs at risk.
It came after US lawmakers booted out a near £10billion bail-out for America's 'Big Three' car makers - General Motors which owns the UK's Vauxhall, Ford and Chrysler.
As a result General Motors said it would stop production at a third of its facilities in North America in 2009.
Traders work on the floor of the New York Stock Exchange moments after the opening bell this morning. There were fears of a massive sell-off
The crisis, the worst in modern history, was last night branded 'carmageddon' by industry experts.
At the centre of the storm is General Motors, which owns Vauxhall in the UK.
Whitehall sources signaled last night that a direct financial bail- out 'could not now be ruled out' following the crisis across the Atlantic which threatens to wipe out the US motor industry and further cripple the UK economy.
Although Business Secretary Lord Mandelson's has said 'no blank cheques', Whitehall insiders say direct state aid could be on table as a last resort, alongside a 'special liquidity scheme', bridging loans: 'We'll actively consider all things that are put to us. We want to take a very pragmatic but hard-headed approach.'" (2)
This failure at all levels of American leadership will ricochet around the planet and finish-off any real chance for people anywhere to resist this hostile takeover of global-commerce by the "Empire of the City." That was 'the plan." If however they have overreached then this could all begin to fuel a global version of some of what is now underway in Greece and Spain and elsewhere where resistance is growing for a variety of deeply held reasons.
"A bloody civil war rages in Mexico with over 5,000 killed so far in 2008, including many Americans and just this week, the major newspapers in America finally told the public about it. With little fanfare or press coverage, Canada has descended into a dictatorship as Prime Minister Stephen Harper has used an obscure provision to shut down the Canadian Parliament, to avoid the equivalent of impeachment, two months after he was elected. Can you picture Bush dissolving or dismissing Congress, to avoid removal from office? The equivalent just happened in Canada this week!
France, Spain, Italy, and now Greece are being rocked by riots that involve illegal aliens, now dubbed "immigrants" by the western media or "guest workers" by the governments like France that put their illegal aliens on their version of the McCain, Obama, Bush "path to citizenship" plan.
Today, we received more news that should make it clear that America is no longer a Republic or Democracy. It should be clear that most of our Homeland Security and Immigration Enforcement is nothing but a sick joke perpetrated at great expense of money and lost liberties from the American public." (3)
This longest running International-Rule of Hypocrisy combined with One-World Impunity must be answered here, as well as in so many other places where people have finally figured out what's really at stake, beyond the self-absorbed criminality that has contributed so heavily to the slaying of this former nation-state.
Without real jobs no man or woman anywhere is free to live their life, or to even have their dreams. In the last selection people wanted 'change.' And to this end Obama has told them: "I am the change," but in a world so beset with barbarians that is obviously not sufficient. For as "Michael Ellner rightly said:
Just look at us. Everything is backwards; everything is upside down. Doctors destroy health, lawyers destroy justice, universities destroy knowledge, governments destroy freedom, the major media destroy information and religions destroy spirituality."
We are deep within this Twilight Zone without a leader, without laws or constitutional oversight of whatever is being done at government tables and in corporate board rooms, where the public is forever-barred from entry. How much real 'change' do you think can ever come from that!
Athens is burning with protest: what shall be our response to the knock on losses of millions more jobs that no one can afford to lose?
1) Empire of the Cities
2) Taxpayers may have to fund bailout of car industry as meltdown in US threatens 1 million British jobs. fund-bail-car-industry-meltdown-U-S-threatens-1-million-British- jobs.html
3) The American Sky has Fallen

Attorneys: Fort Dix Terror Plot Was “Planted And Nurtured” By FBI Informants

Steve Watson
Friday, Dec 12, 2008

Lawyers in a case relating to a much vaunted 2007 terror plot have concluded that FBI informants were the key figures behind the operation and that the accused, six foreign-born Muslims, were merely bungling patsies.

Defense attorneys have denied there was any plot, arguing two FBI informants concocted and encouraged the conspiracy because they were being paid and promised legal immigration status, reports the New Jersey Star-Ledger.

“The only terrorist conspiracy was one planted and nurtured by the informant” argued attorney, Rocco Cipparone as he highlighted exchanges between the informant, Mahmoud Omar, and defendant Mohamad Shnewer in a conversation after the two men drove to the Fort Dix Army base 25 miles east of Philadelphia last year.

At the time the incident was hyped by the mainstream corporate media as a major coup for Federal authorities as they announced that they had foiled a complex radical Islamist terrorist plot to attack Fort Dix and kill “as many soldiers as possible” at the heavily fortified Army base.

Five of the men who were arrested were born in Jordan, Turkey, and the former Yugoslavia. It soon became apparent, however, that none of them had any ties to international terrorism.

One of the defendants is accused of giving the informant a map of the Fort Dix cantonment area, which he took from his father’s pizzeria, which delivered food inside Fort Dix.

The supposed plot involved getting into the military installation disguised as pizza deliverymen with three AK-47 automatic assault rifles and four semi-automatic M-16 rifles, going up against hundreds of trained soldiers and shooting as many soldiers and Humvees as they could, then retreating without losses to fight again another day.

Critics were quick to point out that the chances of this being in any way possible were somewhat slim. Indeed, even some of the suspects themselves indicated the idea constituted a waste of time and money.

The FBI says it learned of the supposed plot when the suspects went to a Circuit City store and asked a clerk to transfer a “jihad training video” of themselves onto a DVD. The accused also reportedly asked a police officer where they could obtain more maps of the army base.

Despite such bungling activity, the men were described by authorities as “well organized and nearly ready to strike.”

In addition, it later emerged that the extent of the suspects’ supposed military-style “training” turned out to be trips to a firing range in the Poconos and playing paintball in the woods.

Further reports, quietly admitted “there is little indication that they were devout–or even practicing–Muslims.”

Indeed, the defense attorneys have also pointed out that the Poconos trip was a regular vacation for some of the suspects.

“The attorney for Dritan Duka… played a videotape of the defendants riding horses in the snow outside the rental home, noted that the group swam in an indoor pool, loaded up on steaks, brought video games and rented the movies ‘Scarface’ and ‘Eddie Murphy Raw’ from a local Blockbuster.” reports The Star-Ledger.

The defense attorneys have argued that the self-serving FBI informants, described as small-time criminals, concocted and fueled the conspiracy plot, aiming to fool the suspects, and that FBI agents accepted it be cause they were eager to claim a terrorism victory.

By the end of the year, one of the of the informants, Omar, will have received nearly $240,000 for his role in the operation - $185,000 in payments plus reimbursement for $25,000 in expenses and nearly $29,000 in rent.

Sentencing is scheduled for Monday.

Related Reading:

Pizza Delivery Guy and Cohorts Planned Fort Dix Attack

Defreitas: Not Simply an Idiot, but a Useful Idiot

Hyping Another Terrorist Threat: Much Ado About the Fort Dix Pizza Plot

US government fans homeland terrorism fear

Friday, December 12, 2008

Globalist Constitutional Convention Dealt a Defeat in Ohio

Kurt Nimmo
December 13, 2008
The global elite will not rest until they have undermined the last bastion that stands in their way as they attempt to dominate and subjugate of the once great republic of the United States — the Constitution and the Bill of Rights. Over the years — but especially since September 11, 2001, and the creation of the phony GWOT against manufactured terrorists — the government has made great strides in curtailing the Bill of Rights.
On Wednesday December 10th, the Ohio House Judiciary Committee were confronted by members from Campaign for Liberty, Ohio Freedom Alliance, We Are Change Ohio, John Birch Society, Institute for Principled Policy, Constitution Party of Ohio, and the Libertarian Party of Ohio whom testified against HJR, an Ohio call for an Article V Constitutional Convention. Video produced by Ohio Change.
Government has singled out and specifically attacked the First, Second, Fourth, Fifth, and Sixth Amendments. However, for the global elite and their minions in government, this piecemeal approach is too slow and often results in organized resistance and legal challenges.
So the global elite have decided on another tactic — change forever the Constitution and the Bill of Rights through a Constitutional Convention.
Article Five of the United States Constitution provides an option to assemble a national Convention to propose amendments to the Constitution as an alternative to the process of securing two-thirds approval in both houses of Congress.
Remarkably, thirty two states have called for a Constitutional Convention — allegedly to add a Balanced Budget Amendment to the Constitution – and it takes thirty four to begin the process.
If you have not heard about this, it is not a mistake — the corporate media is not reporting on it. A Google News search produces no stories on the subjected published by the mainstream media.
“A public policy organization has issued an urgent alert stating affirmative votes are needed from only two more states before a Constitutional Convention could be assembled in which ‘today’s corrupt politicians and judges’ could formally change the U.S. Constitution’s “problematic” provisions to reflect the philosophical and social mores of our contemporary society,’” writes Bob Unruh for WorldNetDaily.
“Don’t for one second doubt that delegates to a Con Con wouldn’t revise the First Amendment into a government-controlled privilege, replace the 2nd Amendment with a ‘collective’ right to self-defense, and abolish the 4th, 5th, and 10th Amendments, and the rest of the Bill of Rights,” Unruh quotes the American Policy Institute (API).

API was successful in stalling a vote on a Constitutional Convention in Ohio, thanks to the Constitution and Libertarian parties of Ohio that testified against the bill. “Members from Campaign for Liberty, Ohio Freedom Alliance, We Are Change Ohio, John Birch Society, Institute for Principled Policy, Constitution Party of Ohio, and the Libertarian Party of Ohio showed up in support [and] most of them testified,” reports the PeaceChicken blog.
“After seeing how many of us came, Committee Chairman Blessing changed his mind and decided not to vote on it today. In fact, he acted like it was a mistake that the paper said ‘possible vote.’ [Teri Owens of the Central Ohio John Birch Society] thinks it’ll probably be voted on at the next committee meeting (which will also probably not include further testimony) so we’ll need to keep watching.”
WorldNetDaily should be commended for reporting on this important story neglected by the corporate and much of the alternative media. Unfortunately, WorldNetDaily writer Bob Unruh turns the article into an anti-Obama screed and leans heavily on the false right-left paradigm to make his points, including Obama’s disingenuous calls for wealth redistribution and so-called political and economic justice. In 2001, Obama told Chicago’s public station WBEZ-FM that “redistributive change” is needed.
One has to wonder if Obama’s economic advisors — including Robert Rubin, director and senior counselor at Citigroup, and Timothy F. Geithner, president and chief executive officer of the Federal Reserve Bank of New York — are up to speed on taking money from their rich friends and giving it to the poor who voted for Obama.
Tom DeWeese of the American Policy Institute warns that the ultimate outcome of a new con con “will likely be a new constitution, one that would possibly eliminate the Article 1 restriction to the coinage of real money or even eliminate gun or property rights.”
In fact, this is the real goal of the globalists behind the con con scheme: to eliminate gun ownership and turn other god-given rights into state granted privileges that can be easily restricted or taken away entirely. Outlawing firearm ownership in America is part of a larger agenda to dismantle and destroy the United States of America from within and the global elite cannot turn the country into a third world cesspool so long as millions of Americans are armed.
DeWeese told WND that a Constitutional Convention would be “our worst nightmare in an age when you’ve got people who believe the Constitution is an antiquated document, we need to have everything from controls on guns … all of these U.N. treaties … and controls on how we raise our children.”
For now, a few dedicated people in Ohio have managed to delay another state from joining the push for a con con under the cover of a Balanced Budget Amendment, but as the blogger PeaceChicken notes, the government of Ohio will continue to push HJR 8 calling for a Constitutional Convention. It is up to activists and concerned citizens in Ohio to make sure this bill is defeated and the global elite is not allowed to eviscerate the Constitution and the Bill of Rights.

Constitutional Convention Update!

Deflation has become inevitable

For a while now I have been on the fence on the inflation/deflation issue – whether the massive monetisation of bad debts by central banks and governments will lead to rapidly escalating inflation as currencies are debased or, alternatively, lead to deflation as bad debts and illiquidity undermine all commercial and financial activity in the economy. I’m now coming down on the side of deflation for a very simple reason: there is no longer any incentive to save or invest, and so debt and investment cannot increase much beyond current bloated levels.

In Lombard Street, Bagehot’s seminal tome on fractional reserve central banking, Bagehot advises any central bank facing a simultaneous credit crisis and currency crisis to raise interest rates. By raising rates they will ensure that foreign creditors remain incentivised to maintain the general level of credit available while the central bank resolves the local liquidity crisis through liquidation of failed banks and temporary liquidity support of stressed banks.

The very opposite policies have been pursued by central banks in the US, Europe and UK since the beginning of the sub-prime crisis in August 2007. They have cut policy rates drastically, and as the crisis escalated and spread, the yield on government debt has dropped to negative territory. Meanwhile they have shielded those responsible for the creation of record levels of bad debt from any regulatory accountability, relaxed transparency of accounts, and provided massive taxpayer-funded financial infusions to prevent failure and liquidation.

While in the short term these policies have expediency and the maintenance of market “confidence” on their side, in the longer term these policies must undermine any confidence a rational and objective saver or investor might have that savings or investment in the US, EU or UK will be fairly remunerated at an above-inflation rate, or that savings and investments will be protected by effective oversight and regulation from the sorts of executive debasement and outright misappropriation and fraud that are beginning to colour our perceptions of the past decade.

Anyone sitting on a pile of cash now is unlikely to want to either (a) place it in a bank, or (b) invest it in the stock market. As a result, the implosion of the financial and real economy must continue no matter how big the central bank’s aspirations for its balance sheet or the treasury’s aspirations for its deficit.

If US, EU and UK had substantial domestic savings to fund their banks (as in Japan in 1990), then perhaps the consequences would not be so imminently disastrous. Lacking sufficient domestic savings, however, their actions will likely make foreign creditors in Japan, China, the Gulf and elsewhere question whether it is worthwhile to keep pumping scarce savings into such flawed and reckless economies.

During the reckless boom years, savings collapsed in bubble economies as retail and commercial and financial actors alike chased speculative yields with greater and greater leverage. During the reckless bust years, savings will collapse further as retail and commercial and financial actors chase safety by hoarding their meagre remaining assets from further erosion by refusing to lend at negative returns and refusing to finance failed corporate and investment models that only enrich poltically-connected management and intermediaries.

The determination to avoid any accountability for failed banks, failed business models, failed regulatory systems and failed academic rationales for all the above invites anyone with spare cash – an increasingly select crowd – to withhold it from further depredations. It is this instinct, more than confidence in the government, which is driving so many to seek the temporary safety of short-dated government securities.

The result of discouraging domestic and foreign creditors and investors must be inevitable deflation as debt levels become increasingly hard to finance and ultimately contract. Irresponsible central banks and governments can try to bail out the failed banks, businesses and municipalities at the centre of every popped bubble, but the bubble economies are ever more certain to deflate with each bailout. Each bailout further undermines the market discipline which is bedrock to a saver or investor’s decision to part with hard-earned cash by trusting it to the intermediation of the management of a bank or business.

It’s this simple: I won’t invest in a country that bails out failure and punishes savers. I won’t invest in the US or UK until they change course and protect savers and investors, ensuring a reasonably predictable positive return. In the EU, I will be very selective, preferring those conservative states like Germany that never embraced the worst excesses, although sadly still have fall out from individual banks' stupidity in buying into foreign excess. I will know when it is safe to reinvest when policy interest rates, bank/intermediary oversight and accounting standards give me confidence I am better protected than the corporate or financial elite.

While it may take the Asian and the Gulf State investors longer to embrace my analysis, I have no doubt that they too will eventually conclude that parting with their savings under the terms now on offer will only deepen their losses. They would be better off keeping the money at home, investing locally under local laws and vigilance, and letting the US and UK implode.

The argument against this has always been that with trillions already invested in the US during the deficit years, the Chinese and Gulf States would suffer even more horrible losses from a collapse of the western economies. This is accurate, but not complete, as it ignores the relative value of cash investment at the top and bottom of a bursting bubble. Once the collapse has bottomed out, so long as a globalised economy survives, there will be even better opportunities for those with savings to invest selectively in businesses with clearer prospects and more certain profitability under regulatory frameworks which have been restored to a proper balance of investor protection and intermediary oversight.

Right now survival of businesses in the West depends largely on political pull and access to regulatory forbearance and central bank or treasury finance. The market has failed, and officialdom is collaborating in perpetuating that failure.

Should the western economies implode in deflation, however, there will be new opportunities to return to market-based policies that reward effective, efficient management and punish corrupt, debased management. Until that happens, those that invest will continue to lose money. Once deflation is exhausted, then those that invest can expect to make and retain profits again.

I think it took me so long to feel confident about predicting deflation because the floating currency system under dollar hegemony and Bretton Woods II distorts the workings of both inflation and deflation. Despite the US being the epicentre of all the failed debts, failed securitisations, failed credit derivatives, failed rating agencies, failed banking businesses, failed corporate governance, failed accounting standards, failed capital adequacy models, and failed regulatory forbearance, the US dollar has recently strengthened as deflation globalised. The US exported inflation in the boom years, and now exports deflation in the bust years.

Since spring 2008, as US investment banks sold off assets, imposed margin calls, and used access to unsegregated wholesale assets in custody in the rest of the world to upstream liquidity to their US-based parents and affiliates, the dollar has strengthened relative to other currencies. The media reports this as a “flight to quality”, but it is more like a last looting of the surrounding countryside before dangerous brigands hole up in their hilltop fortress. The brigands appear temporarily wealthy compared to the peons left stripped and penniless and facing winter. When the brigands have eaten all the stolen grain and livestock, however, they will have no means to replenish except to use force to raid the countryside again. The peons can always hunt, forage, farm and carefully husband a surplus to gradually increase their wealth. If the brigands raid too thoroughly or too regularly, the peons have no incentive to grow crops or keep herds (negative savings returns) and everyone starves (deflation).

In the meanwhile, the peons just might wise up, hide any surplus more securely and organise mutual defense against further attacks to ensure that their peon children prosper and the brigands die off. That would be the end of Bretton Woods II, and the rise of China, India, the Gulf and other productive and/or resource rich states which invest surplus in domestic productivity and regional growth.

I reread my piece on Fisher’s Theory of Debt Deflation in Great Depressions the other day. One of the more confusing aspects is his assertion that the dollar “swells” as debt deflation takes hold. What he meant, of course, is that deflation increases the quantity of assets and the likely investment return each dollar purchases as deflation wrings debt and misallocation of capital out of the economy.

It is now clear to me that policy makers in the West are determined to apply every available resource to underpinning failure, misallocation and executive excess. As this discourages the honest saver from parting with cash, policy makers are ensuring that deflation will wreak its havoc on the financial and real economies of the world. Only when that deflation has played out and rational policies that reward market-based management and returns are restored will it be worthwhile to invest again. In the meanwhile, any wealth saved securely from state seizure will "swell" to buy more assets in future - a key aspect of deflation and a key means of restoring the control of the economy into the hands of more farsighted savers and investors.

I have quoted Mr John Mill before, but it bears repeating: ““Panics do not destroy capital; they merely reveal the extent to which it has been destroyed by its betrayal into hopelessly unproductive works.” The extent to which capital has been betrayed in the past quarter century under Bretton Woods II, bank deregulation and the Basle Capital Adequacy Accords is unrivalled in the history of fiat banking. The bankers, lawmakers, regulators and academics who collaborated in the betrayal still hold power, like the well-armed brigands in the fortress, and their continued collaboration to prevent accountability must inevitably discourage honest savers from risking further loss. Even so, it is the savers/peons who hold the ultimate power as they can starve the brigands.

Some day soon savers will revolt at financing further depredations. They will refuse to buy even government securities, gagging at the quantities of issue forced upon them under terms of only negative return. When that final massive bubble bursts, deflation will follow its harsh corrective course and clean out deficit-financed “unproductive works”.

When that happens, if reason is restored in markets with effective oversight, I might consider investing again, very selectively, in whatever productive works might then be on offer and only when secure in realising - and retaining - a positive yield.


Apologies for not posting last Friday.

Writing for this blog has been a great experience, forcing me to refine my views about current events and the principles which should underpin financial market interactions and supervision. In parallel, I have been forced to re-evaluate whether I should commit to sorting out some of the practical aspects of the future of banking in the global economy. Writing takes a lot of time and passion, and these are limited commodities for any of us.

I have accepted a full time executive position which will take all of my time and passion going forward in 2009, so the blogging has to be suspended at year end. The job will enable me to put into practice the principles I’ve illuminated here, hopefully mitigating some of the impacts of financial instability. I’ll still lurk, and maybe comment on Professor Roubini’s thread from time to time.

Wish me luck!