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Archive for March 6th, 2013


Vaya con Dios, Hugo Chàvez, mi Amigo

Tuesday, March 5, 2013

By Greg Palast, http://www.gregpalast.com/vaya-con-dios-hugo-chavez-mi-amigo/

For BBC Television, Palast met several times with Hugo Chàvez, who passed away today.

As a purgative for the crappola fed to Americans about Chavez, my foundation, The Palast Investigative Fund, is offering the film, The Assassination of Hugo Chavez, as a FREE download. Based on my several meetings with Chavez, his kidnappers and his would-be assassins, filmed for BBC Television. DVDs also available.

Media may contact Palast at interviews (at) gregpalast.com.

Venezuelan President Chavez once asked me why the US elite wanted to kill him. My dear Hugo: It’s the oil. And it’s the Koch Brothers – and it’s the ketchup.

Reverend Pat Robertson said,

“Hugo Chavez thinks we’re trying to assassinate him. I think that we really ought to go ahead and do it.”

It was 2005 and Robertson was channeling the frustration of George Bush’s State Department.

Despite Bush’s providing intelligence, funds and even a note of congratulations to the crew who kidnapped Chavez (we’ll get there), Hugo remained in office, reelected and wildly popular.

But why the Bush regime’s hate, hate, HATE of the President of Venezuela?

Reverend Pat wasn’t coy about the answer: It’s the oil.

“This is a dangerous enemy to our South controlling a huge pool of oil.”

A really BIG pool of oil. Indeed, according to Guy Caruso, former chief of oil intelligence for the CIA, Venezuela hold a recoverable reserve of 1.36 trillion barrels, that is, a whole lot more than Saudi Arabia.

If we didn’t kill Chavez, we’d have to do an “Iraq” on his nation. So the Reverend suggests,

“We don’t need another $200 billion war….It’s a whole lot easier to have some of the covert operatives do the job and then get it over with.”

Chavez himself told me he was stunned by Bush’s attacks: Chavez had been quite chummy with Bush Senior and with Bill Clinton.

So what made Chavez suddenly “a dangerous enemy”? Here’s the answer you won’t find in The New York Times:

Just after Bush’s inauguration in 2001, Chavez’ congress voted in a new “Law of Hydrocarbons.” Henceforth, Exxon, British Petroleum, Shell Oil and Chevron would get to keep 70% of the sales revenues from the crude they sucked out of Venezuela. Not bad, considering the price of oil was rising toward $100 a barrel.

But to the oil companies, which had bitch-slapped Venezeula’s prior government into giving them 84% of the sales price, a cut to 70% was “no bueno.” Worse, Venezuela had been charging a joke of a royalty – just one percent – on “heavy” crude from the Orinoco Basin. Chavez told Exxon and friends they’d now have to pay 16.6%.

Clearly, Chavez had to be taught a lesson about the etiquette of dealings with Big Oil.

On April 11, 2002, President Chavez was kidnapped at gunpoint and flown to an island prison in the Caribbean Sea. On April 12, Pedro Carmona, a business partner of the US oil companies and president of the nation’s Chamber of Commerce, declared himself President of Venezuela – giving a whole new meaning to the term, “corporate takeover.”

U.S. Ambassador Charles Shapiro immediately rushed down from his hilltop embassy to have his picture taken grinning with the self-proclaimed “President” and the leaders of the coup d’état.

Bush’s White House spokesman admitted that Chavez was, “democratically elected,” but, he added, “Legitimacy is something that is conferred not by just the majority of voters.” I see.

With an armed and angry citizenry marching on the Presidential Palace in Caracas ready to string up the coup plotters, Carmona, the Pretend President from Exxon returned his captive Chavez back to his desk within 48 hours. (How? Get The Assassination of Hugo Chavez, the film, expanding on my reports for BBC Television. You can download it for free for the next few days.)

Chavez had provoked the coup not just by clawing back some of the bloated royalties of the oil companies. It’s what he did with that oil money that drove Venezuela’s One Percent to violence.

In Caracas, I ran into the reporter for a TV station whose owner is generally credited with plotting the coup against the president. While doing a publicity photo shoot, leaning back against a tree, showing her wide-open legs nearly up to where they met, the reporter pointed down the hill to the “ranchos,” the slums above Caracas, where shacks, once made of cardboard and tin, where quickly transforming into homes of cinder blocks and cement.

“He [Chavez] gives them bread and bricks, so they vote for him, of course.” She was disgusted by “them,” the 80% of Venezuelans who are negro e indio (Black and Indian)—and poor. Chavez, himself negro e indio, had, for the first time in Venezuela’s history, shifted the oil wealth from the privileged class that called themselves “Spanish,” to the dark-skinned masses.

While trolling around the poor housing blocks of Caracas, I ran into a local, Arturo Quiran, a merchant seaman and no big fan of Chavez. But over a beer at his kitchen table, he told me,

“Fifteen years ago under [then-President] Carlos Andrés Pérez, there was a lot of oil money in Venezuela. The ‘oil boom’ we called it. Here in Venezuela there was a lot of money, but we didn’t see it.”

But then came Hugo Chavez, and now the poor in his neighborhood, he said, “get medical attention, free operations, x-rays, medicines; education also. People who never knew how to write now know how to sign their own papers.”

Chavez’ Robin Hood thing, shifting oil money from the rich to the poor, would have been grudgingly tolerated by the US. But Chavez, who told me, “We are no longer an oil colony,” went further…too much further, in the eyes of the American corporate elite.

Venezuela had landless citizens by the millions – and unused land by the millions of acres tied up, untilled, on which a tiny elite of plantation owners squatted. Chavez’ congress passed in a law in 2001 requiring untilled land to be sold to the landless. It was a program long promised by Venezuela’s politicians at the urging of John F. Kennedy as part of his “Alliance for Progress.”

Plantation owner Heinz Corporation didn’t like that one bit. In retaliation, Heinz closed its ketchup plant in the state of Maturin and fired all the workers. Chavez seized Heinz’ plant and put the workers back on the job. Chavez didn’t realize that he’d just squeezed the tomatoes of America’s powerful Heinz family and Mrs. Heinz’ husband, Senator John Kerry, now U.S. Secretary of State.

Or, knowing Chavez as I do, he didn’t give a damn.

Chavez could survive the ketchup coup, the Exxon “presidency,” even his taking back a piece of the windfall of oil company profits, but he dangerously tried the patience of America’s least forgiving billionaires: The Koch Brothers.

How? Well, that’s another story for another day. [Watch this space. Or read about it in the book, Billionaires & Ballot Bandits. Go to BallotBandits.org).

Elected presidents who annoy Big Oil have ended up in exile—or coffins: Mossadegh of Iran after he nationalized BP’s fields (1953), Elchibey, President of Azerbaijan, after he refused demands of BP for his Caspian fields (1993), President Alfredo Palacio of Ecuador after he terminated Occidental’s drilling concession (2005).

“It’s a chess game, Mr. Palast,” Chavez told me. He was showing me a very long, and very sharp sword once owned by Simon Bolivar, the Great Liberator. “And I am,” Chavez said, “a very good chess player.”

In the film The Seventh Seal, a medieval knight bets his life on a game of chess with the Grim Reaper. Death cheats, of course, and takes the knight. No mortal can indefinitely outplay Death who, this week, Chavez must know, will checkmate the new Bolivar of Venezuela.

But in one last move, the Bolivarian grandmaster played a brilliant endgame, naming Vice-President Nicolas Maduro, as good and decent a man as they come, as heir to the fight for those in the “ranchos.” The One Percent of Venezuela, planning on Chavez’s death to return them the power and riches they couldn’t win in an election, are livid with the choice of Maduro.

Chavez sent Maduro to meet me in my downtown New York office back in 2004. In our run-down detective digs on Second Avenue, Maduro and I traded information on assassination plots and oil policy.

Even then, Chavez was carefully preparing for the day when Venezuela’s negros e indios would lose their king—but still stay in the game.

Class war on a chessboard. Even in death, I wouldn’t bet against Hugo Chavez.

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Source: CNS News

The impending sequester did not prevent the Transportation Security Administration (TSA) from acting in late February to seal a $50-million deal to purchase new uniforms for its agents–uniforms that will be partly manufactured in Mexico.

Soon after this new investment in TSA uniforms, Homeland Security Secretary Janet Napolitano warned Americans that the lines are already lengthening at airports due to the sequester.

“We are already seeing the effect on the ports of entry, the big airports for example,” Napolitano told Politico on Monday. “Some of them had very long lines this weekend.”

Look people, I don’t mean to scare, I mean to inform,” Napolitiano said.”If you’re traveling, get to the airport earlier than you otherwise would. There’s only so much we can do with personnel and please don’t yell at the customs officers, the TSA officers. They aren’t responsible for sequester.”

On Feb. 27, the agency announced that on Feb. 22 it had awarded a one-year contract to VF Imagewear, Inc., which owns the Lee brand and Wrangler Hero, to provide the uniforms. “This contract will address the requirements of the TSA, Office of Security Operations, TSA Uniform Program,” the award states.

The TSA employs 50,000 security officers, inspectors, air marshals and managers. That means that the uniform contract will pay the equivalent of $1,000 per TSA employee over the course of the year.

This is not the first time VF Imagewear has been commissioned to make TSA uniforms. The company secured a $98 million contract in 2010 that expired on Feb. 17, 2013.

The latest contract will run until Feb. 17, 2014, with a one-year optional transitional period. By next year, the DHS hopes to have TSA and Customs and Border Protection (CBP) secure their uniforms with a single combined contract.

TSA’s new $50-million one-year uniform contract was announced just two days before the automatic, across-the-board spending cuts, known as the sequester, took effect.  The cuts, according to CBO, amount to $44 billion in reduced spending in fiscal 2013.

napolitano Department of Homeland Security Secretary Janet Napolitano. (AP Photo)

Department of Homeland Security Secretary Janet Napolitano has said the sequester will force furloughs at the TSA, and has warned of increased waiting times at airports.

The TSA provides uniforms to new employees, but requires its employees to buy their own replacements.

“You will be measured for your new uniforms at your first orientation session,” the fact sheet says. “TSA will provide your initial uniform issue consisting of 3 long sleeve shirts, 3 short sleeve shirts, 2 pairs of trousers, 2 ties, and one belt, sweater, socks, and jacket.”

The TSA says its officers are responsible for providing their own black leather shoes with non-slip soles to wear with their uniform.  The TSA may authorize an annual uniform allowance for officers to assist with uniform replacement expenses but officers will be responsible for cleaning, maintaining, and replacing worn uniforms.

In a statement to CNSNews.com, the TSA said the uniforms will be “manufactured in the U.S. and Mexico.”

Under the American Recovery and Reinvestment Act, the TSA is required to procure uniforms made in the United States. However, uniform products made in Mexico, Canada or Chile must also be considered due to the North American Free Trade Agreement and the U.S.-Chilean Free Trade Agreement.

“TSA’s contract with VF Imagewear for TSO uniforms, which has some manufacturing facilities in Mexico, complies with the law,” the TSA said.

Rep. Jackie Speier (D-Calif.) has called on the TSA to make its uniforms in America.  According to Speier, VF Imagewear in the past has sewn the TSA uniforms in Mexico, representing roughly 40% of the total cost of producing the uniforms and 80% of the labor.

“Make it in America is a common sense policy,” Speier said in 2011. “When it comes to U.S. government contracts, we have a right to demand that taxpayer dollars are used to create American jobs, not foreign ones.”

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Source: Tony Cartalucci, BLN Contributing Writer

US corporate-financier funded think-tank, the American Enterprise Institute (AEI), declared in its “post-Chávez checklist for US policymakers,” that the US must move quickly to reorganize Venezuela according to US interests. Upon its checklist were “key demands”:

  • The ouster of narco-kingpins who now hold senior posts in government
  • The respect for a constitutional succession
  • The adoption of meaningful electoral reforms to ensure a fair campaign environment and a transparent vote count in expected presidential elections; and
  • The dismantling of Iranian and Hezbollah networks in Venezuela

In reality, AEI is talking about dismantling entirely the obstacles that have prevented the US and the corporate-financier interests that direct it, from installing a client regime and extracting entirely Venezuela’s wealth while obstructing, even dismantling the progress and geopolitical influence achieved by the late President Hugo Chavez throughout South America and beyond.

The AEI “checklist” continues by stating:

Now is the time for US diplomats to begin a quiet dialogue with key regional powers to explain the high cost of Chávez’s criminal regime, including the impact of chavista complicity with narcotraffickers who sow mayhem in Colombia, Central America, and Mexico. Perhaps then we can convince regional leaders to show solidarity with Venezuelan democrats who want to restore a commitment to the rule of law and to rebuild an economy that can be an engine for growth in South America.

Of course, by “Venezuelan democrats,” AEI means Wall Street-backed  proxies like Henrique Capriles Radonski and his Primero Justicia (Justice First) political front, two entities the Western media is already gearing up to support ahead of anticipated elections.


West Has Positioned Proxies to Strip Venezuela to the Bones After Chavez’ Passing

Primero Justicia (Justice First) was co-founded by Leopoldo Lopez and Julio Borges, who like Radonski, have been backed for nearly a decade by the US State Department. Primero Justicia and the network of foreign-funded NGOs that support it have been recipients of both direct and indirect foreign support for at least just as long.

Image: US State Department document (archived) illustrating the role National Endowment for Democracy (NED)-funded NGOs play in supporting US-backed opposition figures in Venezuela. The US regularly fails to transparently list who is included in extensive funding NED provides opposition groups in Venezeula, so documents like this give a rare glimpse into the names and dynamics actually involved. As was suspected, NED money is going into networks providing support for current presidential candidate, Henrique Capriles Radonski.  In this particular document, NED-funded Sumate’s legal trouble is described in relation to its attempted defense of Radonski. At the time this document was written, Radonski was in jail pending trial for his role in facilitating the 2002 US-backed failed coup against President Hugo Chavez. The document may still be online at the US State Department’s official website here.

….

All three co-founders are US educated – Radonski having attended New York’s Columbia University (Spanish), Julio Borges attending Boston College and Oxford (Spanish), and Leopoldo Lopez who attended the Harvard Kennedy School of Government (KSG), of which he is considered an alumni of (and here).

The Harvard Kennedy School, which hosts the notorious Belfer Center, includes the following faculty and alumni of  Lopez, co-founder of the current US-backed opposition in Venezuela:

John P. Holdren, Samantha Power, Lawrence Summers, Robert Zoellick, (all as faculty), as well as Ban Ki-Moon (’84), Paul Volcker (’51), Robert Kagan (’91), Bill O’Reilly (’96), Klaus Schwab (’67), and literally hundreds of senators, ambassadors, and administrators of Wall Street and London’s current global spanning international order. Harvard’s Kennedy School of Government (KSG) is clearly one of several universities that form the foundation of both creating corporate-financier driven globalist-international policy, as well as cultivating legions of administrators to execute it.

To understand fully the implications of Lopez’ education it helps to understand the leadership and principles guiding Harvard’s mission statements, best exemplified by KSG’ Belfer Center, which to this day, lends its public support to Lopez and his Primero Justicia opposition party.

Image: John P. Holdren (bearded, left), an advocate for population reduction through forced sterilization overseen by a “planetary regime,” is just one of many “colorful” characters to be found within the halls of Harvard’s Kennedy School of Government from which Primero Justicia co-founder Leopoldo Lopez of Venezuela graduated. To this day, KSG provides forums in support of US-backed opposition bids at seizing power in Venezuela. 

….

Named after Robert Belfer of the Belco Petroleum Corporation and later, director of the failed Enron Corporation, the Belfer Center describes itself as being “the hub of the Harvard Kennedy School’s research, teaching, and training in international security affairs, environmental and resource issues, and science and technology policy.” Robert Belfer still sits in as an International Council Member.

Belfer’s director, Graham Allison provides an example of self-serving corporatism steering US policy. He was a founder of the Trilateral Commission, a director of the Council on Foreign Relations (CFR), a consultant to the RAND Corporation, Director of the Getty Oil Company, Natixis, Loomis Sayles, Hansberger, Taubman Centers, Inc., and Belco Oil and Gas, as well as a member of the advisory boards of Chase Bank, Chemical Bank, Hydro-Quebec, and the shady International Energy Corporation, all according to his official Belfer Center bio.

Other questionable personalities involved as Belfer alumnus are Goldman Sachs, CFR member, and former-World Bank president Robert Zoellick. Sitting on the board of directors is CFR member and former Goldman Sachs consultant, Ashton Carter. There is also former director of Citigroup and Raytheon, former Director of Central Intelligence and CFR member John Deutch, who required a pardon by Clinton to avoid prosecution over a breach of security while fumbling his duties at the CIA. Meanwhile, Nathaniel Rothschild of Atticus Capital and RIT Capital Partners, Paul Volcker of the Federal Reserve, and former DHS Secretary Michael Chertoff all serve as Belfer Center’s “advisers.”

Last but not least, there is John P. Holdren, also a Council on Foreign Relations member, science adviser to both President Clinton and President Obama, and co-author with Paul Ehrilich, of the now notorious “Ecoscience.” When Holdren isn’t brand-building for “Climate Disruption,” he is dreaming of a Malthusian fueled totalitarian global government that forcibly sterilizes the world’s population. He feared, erroneously, that overpopulation would be the end of humanity. He claimed in his hubris filled, fact deficient book, “The No Growth Society,” that by the year 2040, the United States would have a dangerously unsustainable population of 280 million he called “much too many.” The current US population is over 300 million, and despite reckless leadership and policies, it is still sustainable.

One could argue that Lopez’ education is in his past, independent of his current political activities, however, the interests driving the agenda of the Belfer Center are demonstrably still backing his Primero Justicia party’s bid for seizing power in Venezuela. Lopez, Radonski, and Borges are to this day still receiving substantial funding and support through NGO networks funded directly by the US State Department’s National Endowment for Democracy, and is clearly favored by the Western press. Furthermore, the CFR, Heritage Foundation, and other corporate-financier driven think-tanks have all come out in support of Radonski and Primero Justicia, in their bid to “restore democracy” American-style in Venezuela.

With Chavez’ passing, the names of these opposition figures will become mainstays of Western reporting ahead of anticipated elections the West is eager to have held – elections the West is well positioned to manipulate in favor of Lopez, Radonski, and Borges.

Whatever one may have thought about Venezuelan President Hugo Chavez and his policies, he nationalized his nation’s oil, forcing out foreign multinational corporations, diversified his exports to reduce dependency on Western markets (with US exports at a 9 year low), and had openly opposed corporate-financier neo-imperialism across the globe. He was an obstruction to Western hegemony – an obstruction that has provoked overt, depraved jubilation from his opponents upon his death.

And while many critics are quick to claim President Chavez’ policies are a “failure,” it would be helpful to remember that the US, on record, has arrayed its vast resources both overtly and covertly against the Venezuelan people over the years to ensure that any system outside the West’s sphere of influence inevitably fails.

Dark Days Ahead.

Dark days indeed lay ahead for Venezuela, with the AEI “checklist” foreshadowing an “uprising,” stating:

As Venezuelan democrats wage that struggle against chavismo, regional leaders must make clear that Syria-style repression will never be tolerated in the Americas. We should defend the right of Venezuelans to struggle democratically to reclaim control of their country and its future. Only Washington can make clear to Chinese, Russian, Iranian, and Cuban leaders that, yes, the United States does mind if they try to sustain an undemocratic and hostile regime in Venezuela. Any attempt to suppress their self-determination with Chinese cash, Russian arms, Iranian terrorists, or Cuban thuggery will be met with a coordinated regional response.

US military contractors and special forces had been caught operating in and around Venezuela. Just as there were warning signs in Syria years before the 2011 conflict began, the US’ intentions of provoking bloodshed and regime change in Venezuela stretch back as far as 2002. Just as Syria is now facing a Western-engineered proxy war, Venezuela will too, with the AEI already declaring US plans to wage a Syria-style proxy war in South America.

The AEI also reminds readers of the West’s faux-human rights, “economic development,” and “democracy promotion” racket Hugo Chavez had ejected from Venezuela and displaced across parts of South America, and the West’s desire to reestablish it:

US development agencies should work with friends in the region to form a task force of private sector representatives, economists, and engineers to work with Venezuelans to identify the economic reforms, infrastructure investments, security assistance, and humanitarian aid that will be required to stabilize and rebuild that country. Of course, the expectation will be that all the costs of these activities will be borne by an oil sector restored to productivity and profitability.

Finally, we need to work with like-minded nations to reinvigorate regional organizations committed to democracy, human rights, anti-drug cooperation, and hemispheric solidarity, which have been neutered by Chávez’s destructive agenda.

As the US openly funds, arms, and backs Al Qaeda in Syria, conducts global renditions, operates an international archipelago of torture dungeons, and is only now wrapping up a decade of subjugation and mass murder in Iraq and Afghanistan that is still claiming lives and jeopardizing the future of millions to this day, it is difficult to discern just who the AEI’s target audience is. It is most likely those who can read between the lines – the corporate-financier vultures waiting for the right moment to strip Venezuela to the bone.

The fate of Venezuela lies in its people’s hands. Covert destabilization must be faced by the Venezuelan people, while the alternative media must do its best to unravel the lies already being spun ahead of long-planned operations in “post-Chavez Venezuela.” For the rest of us, we must  identify the corporate-financier interests driving this agenda, – interests we most likely patronize on a daily basis, and both boycott and permanently replace them to erode the unwarranted influence they have used, and will continue to use against the Venezuelan people, as well as people across the globe.

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US Secretary of Defense Chuck Hagel (R) greets Israeli Minister for Military Affairs Ehud Barak at the Pentagon, March 5, 2013.

US Secretary of Defense Chuck Hagel (R) greets Israeli Minister for Military Affairs Ehud Barak at the Pentagon, March 5, 2013.
Wed Mar 6, 2013 7:11AM GMT

Israel receives more than USD 3 billion from the United States in direct foreign assistance every year. It also gets USD 70 million more in military aid for its missile systems.

The United States’ new Secretary of Defense Chuck Hagel has met with Israeli Minister for Military Affairs Ehud Barak, reassuring that Washington will continue funding the Israeli regime’s costly missile system known as the Iron Dome.

Hagel held a meeting with Barak at the Pentagon on Tuesday, during which the American defense minister voiced his “strong commitment” to back funding for the Israeli regime’s Iron Dome missile system, despite fiscal uncertainty for the US government itself.

Pentagon Press Secretary George Little said in a statement that the two ministers also discussed the need for ‘continued cooperation’ on the ongoing violence in Syria.

Little also noted that Hagel and Barak “have had an outstanding working relationship, dating back to Minister Barak’s days as prime minister.”

“Secretary Hagel expressed a desire to visit Israel soon and Minister Barak stated that Israel looks forward to hosting him in the near future,” Little added.

Barak’s visit to the US came after President Barack Obama last week signed into effect the spending cuts, known as the sequester, which will shave USD 85 billion off the US federal budget in 2013. About half of the cuts will affect the US military sector.

Israel receives more than USD 3 billion from the United States in direct foreign assistance every year. It also gets USD 70 million more in military aid for its missile systems.

Israeli officials, however, have been trying to keep the US’ aid to the regime, with Israeli ambassador to the US, Michael Oren, saying Tel Aviv was working to maintain the annual aid and military funding from the US for the development of missile systems despite America’s spending cuts.

Barak also delivered an address at the annual conference of the American Israel Public Affairs Committee (AIPAC) in Washington last Sunday.

Thousands of lobbyists also attended the conference, which wrapped up on Tuesday, in an effort to ensure that the Tel Aviv regime is exempted from the budget cuts.

AIPAC is one of the most powerful lobbies in the United States. It works to influence US foreign and domestic policy for the interests of the Israeli regime. The group also acts to secure billions of dollars in military aid for Israel.

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Washington, D.C. Government charwoman (LOC)

Washington, D.C. Government charwoman (LOC) (Photo credit: The Library of Congress)

SOURCE

Today, the Federal Government’s office in D.C. will be closed due to weather: we note this because supposedly someone would notice a difference. Not the sequester, no matter how hard the administration would like to blame it for today’s shutdown, but the weather is to blame. Stone McCarthy explains what this means for today’s economic reports. “The Office of Personal Management announced Wednesday, March 6 that federal government offices in the Washington, DC area would be closed due to weather. As a result, the usual lockup procedures for the release of economic data will be suspended. The only economic report of note set for release by the federal government on Wednesday is the data for factory orders in January. It will be published on the Census Bureau website at 10:00 ET as scheduled. The Federal Reserve’s Beige Book is scheduled for release at 14:00 ET on Wednesday, and we anticipate it will be available on that website at the announced time.”

Remember – never let a one day weather crisis go to waste, because it now means that we have a perfectly valid reason for the BLS and DOL to “estimate” better than expected claims and non-farm payrolls for March over the next 4 weeks.

Because otherwise the government may be forced to show what the real economic data underpinning the record DJIA is…. and that would be very bad.

Average:

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THE GOLD VAULT


Bernanke-Dimon-Fed-Tunnel

SHTF Promo 300 x 250

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Press TV CEO blasts war on Iranian media 05 Mar 2013 The chief executive officer of Iran’s English-language news network Press TV, Dr. Mohammad Sarafraz, has in an open letter lambasted the ongoing muzzling campaign embarked on by the Franco-Israeli chief of the European satellite provider Eutelsat against Iran’s media. The full text of the letter was made public on Tuesday.

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Grounded F-35s: Israeli company fraudulently changed test results over 15 years 04 Mar 2013 (CT) Pratt & Whitney discovered nearly two years ago that one of its foreign business units had fraudulently adjusted test results on tens of thousands of engine parts to bypass additional inspection, the company said Monday. The unit, Carmel Forge Ltd. in Israel, changed test results for more than 40,000 forged disks over 15 years, Pratt said. In jet engines, the disks serve as hubs to which compressor and turbine blades are attached. According to an internal company memo obtained by The Hartford Courant, Pratt launched an internal investigation in June 2011 after an employee tipped off the company to the problem. In late February, the military grounded its fleet of F-35s after examinations found a crack in a low-pressure turbine blade in Pratt’s F135 engine.

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Truthtelling 101 from Hannan.

One trillion pounds spent on the U.K. bank bailout.

‘The bailouts were an ethical crime where low and middle-income people were required to rescue extremely wealthy bankers and bondholders from the consequences of their own errors.  This will one day be seen as a generational offense!’

SHTF Promo 300 x 250

 

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by PATRICK COCKBURN

Iraqis are not naïve. Grim experience of their country’s rulers over the past 50 years leads many to suspect them of being self-serving, greedy, brutal, and incompetent. Ten years ago, some had hoped Iraqis might escape living in a permanent state of emergency as the US and Britain prepared to overthrow Saddam Hussein. Others were wary of Iraqis returning from abroad who promised to build a new nation.

A few months before the invasion, an Iraqi civil servant secretly interviewed in Baghdad made a gloomy forecast. “The exiled Iraqis are the exact replica of those who currently govern us… with the sole difference that the latter are already satiated since they have been robbing us for the past 30 years,” he said. “Those who accompany the US troops will be ravenous.”

Many of the Iraqis who came back to Iraq after the US-led invasion were people of high principle who had sacrificed much as opponents of Saddam Hussein. But fast forward 10 years and the prediction of the unnamed civil servant about the rapacity of Iraq’s new governors turns out to have been all too true. As one former minister puts it, “the Iraqi government is an institutionalised kleptocracy”.

It is a view shared by Iraqis in the frontline of business in Baghdad. Property prices in the capital are high and there are plenty of buyers. I asked Abduk-Karim Ali, a real-estate broker, who was paying so much for houses. He replied with a laugh that there were investors from Kurdistan and Bahrain, but most purchasers he dealt with are “the thieves of 2003 who have the money”. “Who are they?” I asked. “I mean the officials in the government,” said Mr Ali. “They buy the best properties for themselves.”

“The corruption is unbelievable,” says Ghassan al-Atiyyah, a political scientist and activist. “You can’t get a job in the army or the government unless you pay; you can’t even get out of prison unless you pay. Maybe a judge sets you free but you must pay for the paperwork, otherwise you stay there. Even if you are free you may be captured by some officer who paid $10,000 to $50,000 for his job and needs to get the money back.” In an Iraqi version of Catch-22 everything is for sale. One former prison detainee says he had to pay his guards $100 for a single shower. Racketeering is the norm: one entrepreneur built his house on top of a buried oil pipeline, drilled into it and siphoned off quantities of fuel.

Corruption complicates and poisons the daily life of Iraqis, especially those who cannot afford to pay. But the frequent demand for bribes does not in itself cripple the state or the economy. The highly autonomous Kurdistan Regional Government is deemed extremely corrupt, but its economy is booming and its economic management is praised as a model for the country. More damaging for Iraq is the wholesale theft of public funds. Despite tens of billions of dollars being spent, there is a continuing shortage of electricity and other necessities. Few Iraqis regret the fall of Saddam, but many recall that, after the devastating US air strikes on the infrastructure in 1991, power stations were patched up quickly using only  Iraqi resources.

There is more to Iraqi corruption than the stealing of oil revenues by a criminalised caste of politicians, parties and officials. Critics of Nouri al-Maliki, Prime Minister since 2006, say his method of political control is to allocate contracts to supporters, wavering friends or opponents whom he wants to win over. But that is not the end of the matter. Beneficiaries of this largesse “are threatened with investigation and exposure if they step out of line”, says one Iraqi observer. Even those who have not been awarded contracts know that they are vulnerable to being targeted by anti-corruption bodies. “Maliki uses files on his enemies like J Edgar Hoover,” the observer says. The system cannot be reformed by the government because it would be striking at the very mechanism by which it rules. State institutions for combating corruption have been systematically defanged, marginalised or intimidated. Five years ago, a senior US embassy official testified before Congress that Mr Maliki had issued “secret orders” preventing cases being referred to the courts by the Integrity Commission (an independent government commission tasked with tackling and preventing corruption) “if the cases involve former or current high-ranking Iraqi government officials, including the PM… The secret order is, literally, a license to steal.”

Nothing much has changed since then. Blatant scams continue and receive official protection. In 2011 Rahin al-Ugaili, the head of the Integrity Commission, unmasked “shell companies” abroad used by senior officials to award contracts to themselves. Full payment was made to the companies even if the contracts were never fully implemented. A report by the International Crisis Group, a not-for-profit organisation established to prevent and resolve conflict says that “when the [Integrity] Commission sought to engage the courts to prosecute it found the government blocked all avenues, pressuring Ugaili to resign in protest”. His duly did on 9 September 2011, the same day that Hadi al-Mahdi, a prominent journalistic critic of the government and leader of street protests, was assassinated in his home. A few hours before he was shot he had written on his Facebook page that he was “living in a state of terror” and had been threatened by government reprisals.

Not all Iraqi officials are corrupt. But all are vulnerable to anti-corruption charges. This has a crippling impact. A US businessman explained that he was dealing with a ministry in which he thought only 10 per cent of officials took bribes. “But the other 90 per cent know they might be targeted for investigation and therefore the safest course for them is to take their salaries and do nothing. The ministry is effectively paralysed.”

There are other reasons why director generals in ministries do nothing. Kassim, a senior engineer in the Electricity Ministry, says “director generals get their jobs through political connections. They control the big projects, but they have no experience to plan for the future so they do nothing to avoid being fired.” He is derisive about official promises to end the electricity shortage, saying this will not happen for 20 or 30 years “because they are putting too much of the emphasis on electricity production and not enough on transmission and distribution”.

The new elite benefiting from the system lead a mysterious existence, hidden behind the ramparts of the Green Zone or sweeping through the streets of Baghdad in armoured convoys. Most of the money embezzled is believed to go abroad while the rest is kept in the bank or discreetly invested in property. In Erbil in Kurdistan, businessmen say the housing market is partly sustained by money laundering by investors from Baghdad. “They turn up here with suitcases filled with millions of dinars,” one said.

There is plenty of money in Baghdad but little conspicuous consumption. Violence is down but fear of kidnapping is real and nobody wants draw attention to themselves by appearing wealthy. Mr Ali, the real-estate broker, says: “I drive a poor car so people don’t know I have money.” Rich Iraqis lived sealed off behind walls and bodyguards.

When I visited the bird market in Shorja, central Baghdad, a shopkeeper asked if I would like to buy a tiger or lion cub and showed me a picture of them gambolling at his farm outside the city. I asked who was buying them and he said “mostly tribal leaders – there is quite a fashion for them at the moment.”

Why is the corruption in Iraq so bad? The simple answer that Iraqis give is that “UN sanctions destroyed Iraqi society in the 1990s and the Americans destroyed the Iraqi state after 2003”. Patronage based on party, family or community determines who gets a job. There are many  winners as well as losers and all depends on Iraqi oil exports going up and prices staying high. “I only once saw panic in the cabinet,” says an ex-minister, “and that was when there was a sharp drop in the price of oil.”

PATRICK COCKBURN is the author of “Muqtada: Muqtada Al-Sadr, the Shia Revival, and the Struggle for Iraq.

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